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It's said that the marketing budget varies between 15% and 25% of the target turnover. That must sound vague to you, put like that? Yes, it tongliao mobile number database for me too. But in this article, I'll explain the important steps that will help you understand how to budget your marketing expenses . Let's get started!
Determine your marketing objectives
determine your marketing objectives
One thing is certain: when you're trying to define your marketing budget, you need to know where you want to go. Without goals, you'll likely set a budget that won't be large enough to achieve the desired results.
By setting SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals, you'll have a strategic foundation. They'll allow you to outline your ambitions and your plan to achieve them, and therefore, your budget.
1. First, what is your revenue target?
Without an idea of the revenue you'd like to achieve by the end of 2020, it'll be difficult to see clearly how to get there. You need to have a clear idea, but it must be achievable and time-bound.
First, define your annual revenue target . Let's say it should reach €24,000,000.00.
2. How many customers would you need to generate to achieve this revenue?
Once you have determined your revenue, you need to determine how many sales you will need each month to reach your revenue target. So, divide the revenue of €24,000,000.00 by 12 months = €2,000,000.00 in sales per month.
Let's say that a customer brings you an average turnover of €40,000.00 , you will need to have 50 customers to obtain this €2,000,000.00 per month (because 50 customers X €40,000.00 that a customer brings in on average = €2,000,000.00)
3. How many leads do you need to generate to sign these clients?
To close these customers, you need to generate leads . For this, let's say the average number of Sales Qualified Leads (SQLs) to close a sale is 10 .
So we get a result of 500 qualified Sales leads needed per month to get 50 customers . (50x10).
PS: If today, you convert 1 Sales lead out of 10 ... it's time to review your sales processes
or review your customer acquisition strategy.4. Finally, how many visitors do you need to get to your site to get this number of leads?
If you have a conversion rate of 1% Visitors > Leads (100 visitors = 1 lead) you will need 50,000 new visitors per month (500x100) to obtain 500 qualified Sales leads, which will turn into 50 customers (conversion rate 10%).