The summer solstice brings the longest day of the year and the official start of summer. For many CMOs, this time of year also means it’s time to begin planning and budgeting for 2017.
Gartner’s CMO Spend Survey 2015-2016 revealed marketing budgets are on the rise. But as Azadeh Williams of CMO Australia writes, this increase in revenue brings high expectations for marketers to spend wisely in their quest to drive profitable growth.
As you begin creating your strategic plan, here are several ideas I’ve been reading to build a better budget in 2017.
Start Planning Early
“Experts agree planning early can be critical to better achieving these critical targets while helping align your marketing strategy more closely with long-term business goals. ‘Avoiding falling into budget traps down the track all goes down to planning, planning and planning,’ says OKI Data Australia’s AN/Z marketing manager, Antonio Leone. ‘Use a tool to lay out all your planned spending and activities, by month or by quarter’.” – Read more at CMO Australia.
Make the Budget About Business Goals, Not Money
“Marketers need to put their sales hat on before walking into a marketing budget meeting. As a marketer, what do you intend to deliver to the business in exchange for a budget? … For me, I am selling results to the purse string owner. I know what you’re thinking. Marketing can’t guarantee results – after all, this is marketing we’re talking about. Wrong. Marketers need to be held accountable and deliver just like everyone else in the company. My marketing budgets are derived from a marketing plan which is derived from business goals.” – Read more at Business 2 Community
Standardize Your KPIs
“The best kind of KPI is one that is consistent across all of your business departments. Create templates that your employees can use to reference each of the KPIs, and their relevant source of data, the approach used to display results, and the frequency of KPI changes.” – Read more at The Huffington Post.
Double-Down on Past Successes
“Now’s the perfect time to sift through your past marketing campaigns and analyze which had the greatest impact. Take a deep dive into the channel metrics, such as open rate or click-throughs, as well as how your campaigns impacted customer-level metrics, like customer lifetime value (CLV) or early repeat rate (ERR). Ask yourself, ‘What would have made this successful campaign even better?’ or try brainstorming, ‘Is there something I could have done for the outcome to have been five times bigger?’” – Read more at Marketing Land.
Spend to Drive Continual Growth
Indeed CMO Paul D’Arcy shares that his company “has adopted a profit and loss marketing strategy in a bid to drive efficiencies in its marketing … ‘Areas which drive incremental growth for your business do not need a cap to the budget. The big challenge for marketers is to find how to measure those areas. The only reason to invest in marketing is to drive business results. The goal should always be to spend as much as you can for growth,’ he adds.” – Read more at AdNews