With marketing, if you invest more, can you get more? Sometimes, but not always. How much do you need to invest for it to be worth it? Good question! In our experience working with middle-market companies, there are some key considerations that help us and our clients determine the right-sized marketing spend and mix:
- Company revenue: Marketing budgets are often determined off of a % of total revenue and that typically ranges from 8% – 15% depending on the industry and the place you’re in within the business lifecycle. While these ranges are just a guiding light for where you should be, it’s a good place to start when setting budget parameters.
- Growth Plans: Plan for the long-game, but don’t necessarily budget as if the future is happening now. Again, this approach goes back to building a sustainable and scalable program. During heavy growth periods, you’ll want to increase your investment – but do so responsibly and take a data-driven approach. You should be able to pull your most successful marketing programs and determine which ones you can really push to get more during times of growth. Digital is an area where this can be done successfully as it provides the most efficient targeting and data that can be leveraged to help you make smart investment decisions.
- Team Dynamics: What should you be doing with your internal team and what should you be leaning on outside partners to do? Just because you CAN do it in-house, doesn’t mean that you should. Conversely, you don’t need to pay outside for something that is easy for your internal teams to knock out. The right mix of in-house versus outside investment comes down to knowing everyone’s strengths and where everyone can provide the most value and traction. When you do this, you can get more out of your collective teams, which creates a winning dynamic.
Considering these three factors has proven to be successful in building a sustainable and scalable marketing program. This is the approach we take at Enilon and has driven how we structure our packages to allow for the right fit and easy experience. It’s not about how much more – it’s about what is right and smart based on all considerations. If you’d like more information, visit our right-sized, happiness guarantee overview.