#1 How much should I spend on Marketing?
It doesn't matter if it is teaching classes at UNH or speaking at events, this is the question that I get the most from Business Owners. I’m clearly biased being a believer in the power of building a brand but I also have the unique opportunity to review data from hundreds of businesses each year. Better brands have more consistent growth.
Ok, but what should my business spend on marketing?
- You sell a Product to another Business - 7.3% of Revenue
- You sell a Service to another Business - 3.2% of Revenue
- You sell a Product to Consumers - 1.5% of Revenue
- You sell a Service to Consumers - 7.6% of Revenue
While these numbers from the 2019 CMO survey are interesting, I find them less than useful!
The better place to start is how established is your Brand? If you are a startup in a competitive SaaS software space like Tableau you spent 51% last year but if you are a mature wholesaler like ExxonMobile you spent less than 1%. I would then look by industry and then decide how competitive your sector currently is:
Let's assume your business is in high growth mode (30%+ YoY), then I’d double the above Industry numbers so you are selling B2C CPG (think Honest Co) product then your max would be 48%. If you are a mature market, I’d cut those numbers in half as a starting point.
#2 How should I measure my Marketing Spend?
The reality is most businesses we see don’t measure their marketing spend as accountability is a hard habit to build. We recommend if you are just starting out get all your data in Google Analytics and/or if B2B a CRM, pick a few Marketing B2B KPI’s or B2C E-commerce KPI’s.
But I can’t measure my TV, email, or direct mail piece in Google Analytics! Yes, you can! Email us if you need help…
#3 I need results now! How can we do that?
There are no shortcuts to brand marketing. I love helping small companies grow and in the early days I would often take on that desperate client who needed Y sales in X days to raise the next funding round or win customer Z. We now pass on that business as the consistently highest ranked brands like Coca Cola, Apple, and P&G were all built for the long haul.
#4 Which digital marketing tactic (Email, SEO, paid media) has the best ROI?
Here again it will vary if your focus is B2B or B2C but in ROI/Sales order:
- SEO (Technical and Content Creation)
- Pay Per Click (Google, Bing, LinkedIn, Amazon)
- Mobile (Ads)
#5 How can I train my team to be better at digital marketing?
- Read what other brands are doing from:
a. Gartner L2
b. Search Engine Land
- Pick which tactic you think would be brand appropriate for you and test.
- Test it with your Agency partner or In House.
- Benchmark the results against what you are already doing.
a. Did it deliver a better ROI?
b. How quickly can you cycle it and get results?
c. Can it be a new repeatable playbook in your marketing plan?
#6 What marketing trade shows do you recommend that we should go to in 2019?
- Pick two from this digital conference list.
- We typically attend SMX East or SMX Advanced, and then Moz Con every other year.
- Shows that we have been to recently and don’t recommend, Web Summit (over crowded).
#7 We have limited bandwidth for new digital marketing tactics so what is the #1 one thing we should look at for 2019/2020?
- Voice Search - We have been talking longer than we have been reading as humans. Its innate.