“You have to spend money to make money.” Business owners often hear this advice when looking to develop a marketing campaign. Building and growing a strong customer base for your product or service requires an investment in marketing strategies. However, the more money you spend doesn’t necessarily equal a higher ROI, especially if you’re spending in the wrong places.
For most businesses to succeed or grow, a healthy marketing budget is crucial. But unless you are allocating those dollars toward an effective marketing campaign, you’re essentially throwing money down the drain. So how do you determine if you are paying for marketing strategies that aren’t giving you the best ROI?
3 Ways You are Wasting Your Marketing Budget (and How to Fix Them)
1. Your audience is too broad
If your goal is to reach as many people as possible, you will end up targeting a lot of people who aren’t interested in your product or service. A larger audience doesn’t mean more business leads if it’s the wrong audience. If your marketing strategy relies mostly on acquiring a broad network of followers and you’re purchasing social media users or ads that target a large demographic, you are wasting your time and money.
Reallocate your marketing dollars into resources that will help to identify, profile and target your business’s true buyers. The key is to determine who is actually buying your product or service and what motivates them to take action. Once you understand your audience, you can tailor your marketing strategies to reach them directly. Your new target audience may be smaller, but it will be more relevant.
Here is a great resource from HubSpot we use at OUTLET Creative Group to work out our target buyers; or as we like to call them - Buyer Personas.
2. You haven’t updated your marketing campaign to keep up with changing trends
If you are still holding on to outdated B2B marketing tactics such as print media, direct mail campaigns, billboard advertisement, or even TV commercials, it’s time to ditch them for more modern strategies. Even digital techniques such as pop-up banner ads, pay-per-clicks or poorly managed websites are becoming obsolete.
We live in a constantly changing and growing information age and marketing strategies are evolving with it. Successfully gaining customers and growing your business requires diligent effort to stay informed of the latest marketing trends. Giving your website a new layout that leads your visitors to the information they are looking for and captures their contact information through forms can up your sales leads by 30-40%. Even companies who think they are a word-of-mouth business will be surprised by the number of leads they have been missing out on when their website is properly optimized for lead capture.
It’s important to note, however, that keeping up with modern trends shouldn’t require you to launch a mega, all-encompassing digital campaign that blows your entire marketing budget. Instead, test out new strategies that work best for your business needs and don’t be afraid to change and adapt. You can do this by deciding which social media channel is correct for your business - LinkedIn for corporate, Instagram for millenials, etc. Then create content specific to your buyer persona you want to target and promote it on those chosen channels, email, blog, calls-to-action, and capture lead on landing pages.
3. You aren’t tracking the success of your marketing campaigns
You might be using the most up-to-date marketing methods, but if you aren’t using metrics to record data and track results, you are missing a crucial component of creating a successful marketing campaign.
With the broad availability of so many metric and analytic tools, how do you determine which ones to use in order to track your marketing success? The key is to obtain accurate, relevant information that you can implement in deciding how to improve your overall marketing campaign. Once you determine which metrics to track, start using those results to invest in tactics that are yielding the best results.
Here are, "The Top 10 Free Content Analytics Tools" to get you started.
When you are ready to take your tracking to the next level and show your boss ROI, you can look into a fully managed and automated inbound marketing solution.
Is it time to give your marketing campaign an over-haul?
If you are spending significant resources on marketing strategies but not seeing the results you want, it’s time to make some changes and stop wasting your money.