3 Smart Strategies for Managing Your Marketing Budget
Start by pausing underperforming initiatives, then optimize all remaining projects and leverage marketing automation.
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Many new business owners are eager to promote their products, and they react by allocating more of their operating budget towards marketing. As they begin to see their advertising expenses climb, it's important that they also analyze whether or not their dollars are being spent wisely.
At my company Amerisleep, we actively seek out ways to reduce marketing expenses across all of our existing campaigns without sacrificing their overall effectiveness. Generally, we're able to do that by pausing underperforming initiatives, optimizing all remaining projects, and leveraging marketing automation. That way, we progressively increase the return we get from our marketing investment.
Below are three strategies you can employ to continue reaching new leads and converting them into customers while minimizing your total marketing costs.
1. Continue funding channels that work.
When you want to quickly curb costs, it's tempting to stop all activities wholesale until you can regroup and figure out what structure your new budget should take. But when it comes to marketing, slashing spend at the top of your funnel can have significant consequences on your total sales.
That's why it's crucial you identify your most tried-and-proven marketing channels and ensure there's always adequate budget to keep them going. To better manage your expenses, pause major investments in new and experimental channels. This will free up more of your time and money so that you can continue running already profitable campaigns.
Once you've regained focus and improved your overall return on investment, then you can reconsider experimenting with new marketing outlets again.
2. Refresh and optimize your campaigns regularly.
Cutting marketing costs usually means taking a scaled-down approach, but that doesn't mean that each buyer impression will have any less of an impact. When you sponsor fewer campaigns, you have to ensure that each one is delivered to the right audience, at the right time during their purchasing journey. This increases your chances of converting them into paying customers and minimizes advertising waste.
Regularly audit all existing campaigns to ensure they mention the right product information, messaging and contact information. Verify that each ad links to the right destination too and that their post-click experience is engaging and meets all of their expectations.
3. Employ marketing automation strategically.
Time is money, and time is also a limited resource. When your staff gets inundated with labor-intensive tasks, there's both a real financial cost due to the extra hours worked on a project and a meaningful opportunity cost due to underutilization of their skills.
To help them maximize their work performance and accelerate the pace at which they complete their projects, you'll want to employ marketing automation to save them time - and to save you money. These days, it's easier and more affordable than ever to schedule repetitive actions, manage your data seamlessly, and maintain contact with your customers using technology to assist your workforce.
For instance, if you currently invest a lot of time into lead nurturing, consider automating your engagement emails with customers using action- or time-based triggers. When your employees aren't manually completing these tasks, they're able to allocate more time towards other high-impact initiatives.