Marketing is a must for most organizations. It’s the only way to improve brand visibility, attract new customers, and ultimately expand your business. Admittedly, marketing is costly.
Sure, you could cut your marketing budget. You can change your marketing agency plan. Boost your ad spending. You could even fire some internal employees to hire freelancers. But these methods have drawbacks. You’ll often get substandard work or results.
So how can you cut marketing costs without sacrificing results?
Make ROI your goal
Everything in marketing is based on ROI. Let’s assume you spend $1,500 on ads that bring in $3,000 in new revenue, giving you a 200 percent ROI. Alternatively, you spend $3,000 on ads that generate $9,000 in new revenue. This gives you a 300% ROI.
In the first case, you save money on marketing, but in the second, you make more money, both in terms of overall profit and profit as a % of investment.
There are various ways to boost your marketing ROI, but the most crucial is to focus your efforts on the most likely to be successful long-term. SEO, for example, requires a big upfront cost, but it may also be one of your highest-ROI techniques.
Audit your marketing
Before you start eliminating anything, do a complete analysis of your current marketing budget. Keep track of all marketing and advertising expenditures, and assess the return on each.
That includes direct costs (like advertising or employing an agency) as well as indirect costs (like software subscriptions) and labor. It will be much easier to make cuts if you have all your expenses listed from A to Z.
Double down on what is working
Conversely, you should focus on your most successful methods and expand on them. If your email marketing strategy generates 50 new leads per month but your PPC advertising create only 25, consider reducing your PPC ad budget and increasing your email marketing budget.
Cut out what isn’t working
Don’t be scared to drop ineffective techniques. Diversifying marketing techniques, leveraging many channels, and determining the best path ahead are all wonderful ideas for young firms, but investing in areas that aren’t paying off is detrimental. Stop paying for channels or tools that don’t bring value.
Better customer targeting
Many marketing methods are inefficient due to poor target audience selection. Companies either don’t know who their target demographic is or aren’t weeding out those who don’t fit. Review your company’s target market and refine your approach. You’ll get better marketing results after you stop spending money on people who aren’t interested in your products.
Cut subscriptions in favor of free tools
How much do you spend on marketing? You may be spending hundreds or even thousands of dollars every month on tools that don’t bring any value to your organization. Many functionality of premium products are available for free via open source platforms – you simply need to know where to look.
Cutting your marketing budget and increasing efficiency doesn’t mean sacrificing quality or quantity. Instead, it means cutting costs wisely and focusing on the most productive job.
Automation is a great approach to reduce marketing costs. You’ll keep your marketing strategy operating while reducing manual effort and increasing consistency.