WHY A DEDICATED MARKETING BUDGET IS SO IMPORTANT

On Wednesday, I delivered a presentation for my good friend Emma D’Arcy’s Marketing Success Summit in which I tried to join the dots between marketing, sales and the financials. My argument went like this. If you want to create the business of your vision, you’ll need a marketing budget. And to create a marketing budget, you need a firm grip on the financials. Why A Marketing Budget Is Important For Achieving Your Business Goals

Ask any business owner what they want, and they’ll say something along the lines of “I’d like more clients who spend more money with me, and to accomplish it in a profitable way.

So far so good.

But when I go on to ask the question “what’s your marketing budget,” there’s a deathly silence.

Before starting my second career as a business consultant and coach, I spent 25 years in corporate roles, including 8 as a CEO, where much of my time was taken up with managing budgets. After all those years of practice, when I decided to set up my own business, putting together plans, budgets and cash flow forecast came naturally to me. I thought this was what every business owner does.

But it turns out that’s not the case.

I know a lot of entrepreneurs. But I estimate that less than 5% have a budget. Which means that less than 5% have a thought through marketing budget. I think this goes a long way towards explaining why 95% of businesses here in the UK are micro-businesses. It’s impossible to grow your business if you’ve not got sufficient resources to do so. Business growth and building a brand need pump priming a dedicated marketing budget.

I’m going to try to join the dots now between marketing, sales and the financials.

[callout]I run a regular series of free online Masterclasses called ‘The Cash Flow Roller Coaster: How To Take Financial Control Of Your Business.’ Here’s the link to join me at the next one. (There’s a replay if you can’t make it live).[/callout]

Last week I wrote an article explaining how to sky rocket your business success with the marketing rule of 7. In it I highlighted the stats which show that 80% of sales come after a potential customer has had 5 or more contacts with you.

What is a ‘contact?’ A ‘contact’ is not a tweet or post on social media. This builds brand awareness – which is really important. A ‘contact’ is somebody who is interested in the product or service you offer and, subject to the right conditions, might decide to buy from you.

So somebody searching for your product on Google and going on your website or clicking through on your Google advert is a ‘contact’ because the person is demonstrating ‘buying behaviour.’ Somebody clicking on a lead magnet they’ve seen on a Facebook advert is interested in looking at your lead magnet. BUT they have not given buying signals. This distinction is important. They’re now aware of your business and brand. But this in no way means they’re ready or willing to buy from you. In fact they probably hesitated to sign up to your lead magnet because they were worried that they’d receive an unwanted slew of sales-y emails from you!

Say we’ve successfully got somebody to go on our website because they saw an interesting tweet we’d written, or a Facebook advert, they’d searched for our product on Google or it came up in the search results. The stats tell us that less than 2% of people will buy on their first visit to a website. (This number will be higher if we’re a well-known brand with a solid reputation). You’ll be able to tell from your Google Analytics the percentage of people who return to your website again.

[callout]I run a regular series of free online Masterclasses called ‘The Cash Flow Roller Coaster: How To Take Financial Control Of Your Business.’ Here’s the link to join me at the next one. (There’s a replay if you can’t make it live).[/callout]

Let’s take Anthropologie, a brand that I love!

I might go on the Anthropologie website to check out what’s new in stock or to see whether they sell a particular product I’m looking for. I almost certainly won’t buy it online because I’ll want to try it physically first.

Almost immediately, I’ll start to see Anthropologie adverts online because they’re remarketing me. This reminds me that I was looking at the Anthropologie website, and of the item I’m considering buying. Likewise Anthropologie posts will show up in my Instagram feed because I follow the brand, but I probably won’t interact with the post. Over the next few days, I’ll continue to see Anthropologie’s remarketing adverts and its social media posts. At some point, I’ll go down to the store on Regents Street and make my purchase.

From this small example, you can see the different ways in which Anthropologie ensures it stays front of mind. Anthropologie has a dedicated budget for remarketing and social media management, including for Facebook advertising.

My point is that if you want to hit your business goals, you will need a marketing budget to do so. And to create a marketing budget means having a grip on the financials.

A lot of people think that the financial side of running a business is difficult. Actually it’s one of the easiest! Formulating the right marketing strategy for your business is a far more complicated task.

[callout]I run a regular series of free online Masterclasses called ‘The Cash Flow Roller Coaster: How To Take Financial Control Of Your Business.’ Here’s the link to join me at the next one. (There’s a replay if you can’t make it live).[/callout]

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Question: Do you have a dedicated marketing budget? If not, what has stopped you creating one?

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About Denyse Whillier

I'm a business growth specialist with special interests in social entrepreneurship and helping businesses prepare for Brexit. A former CEO, I took a leap of faith when I left my 25 year corporate career to set up my London based business coaching and consultancy practice. Because of my practical experience in the trenches, hard work, warm, no fluff, down to earth approach, I’ve built a global reputation, and am delighted to have a client list in the UK, US, Canada and Australia.

To find out more about the different ways of working with me, click HERE. If you’re familiar with my work and would like to discuss how I can help you grow your business, book a 45 minute informal Skype coffee chat using this link. There’s no hard sell. Just solid advice and a straightforward, honest assessment of whether 1:1 business coaching or business consultancy would be a good fit for your business, the results you can expect and how to get started.

I offer a small number of FREE 15 minute power sessions each week where you can get my help. Click here to book. I also host a FREE private Facebook group, Business Champions.