Should I OK That Marketing Budget?
Marketing budgets are growing.
I should cite a source here to corroborate that statement, but VPs of Sales who get hit up from their Marketing Directors know this because they’re living it.
And besides reading about it in every other Marketo and “Target Market” email I get, my clients are telling me.
“My Marketing Director wants to spend $10k on Google AdWords! What kind of ROI should I expect on that?”
The correct answer is, of course, “I don’t know. Any generalization I might make from data from other businesses – even in your industry – would probably not be applicable because every business is unique.”
But while that’s true, a more helpful answer would be, “A better ROI than last year since you used A/B testing last year to test what worked for your target market regarding Google AdWords.”
But that only applies if you actually DID A/B testing on your Google AdWords last year.
You Lost Me at “A/B Testing”
If you’re still with me, you’re probably thinking, “Isn’t A/B testing just for companies with their own dedicated marketing analytics staffs?”
That may have been true at one time, but today A/B testing, and Conversion Rate Optimization (intentional and planned efforts to increase conversion rate of your marketing materials) in general, are essential exercises for any business that wants to be able to baseline their marketing efforts so that they can improve the MROI year-over-year.
SMB owners and those who oversee marketing department budgets want to compare their marketing ROI with that of other similar SMBs to see if they’re in the same ball-park. But even the businesses in your same location, that are going after some of the same targets, have different product mixes, different revenue models (project-based vs. monthly recurring, etc.), and different capabilities among their marketing staffs.
So Do I Say “Yes” to My Marketer’s $100k Budget?
As a Sales VP, there are a handful of metrics you keep track of for your Sales team, but at the end of the day, it’s about how much product or service your team sold over a given period. Is the arrow going up or down?
But it’s not that clear-cut with marketing. And even industry standard “good rates” for things like email click-throughs or form submissions can leave a VP of Sales saying “Wait, what?”
So, should you say yes to your Marketing Manager’s $100k budget?
What’s certain is that, if you want to know what should be considered “good” outcomes for your marketing efforts, and if you want to improve your outcomes and your MROI, you’re going to have to implement some type of data-driven marketing approach that baselines, tests, and measures, and incrementally modifies to improve conversion rates.
If you’re ready for a systematic approach to Digital Marketing and lead conversion, contact us and let’s talk about how Winc Analytics can help you get started with data-driven marketing.