Optimize Your Marketing Expenses is the interest of all analysts and directors of this department. But the solutions to meet this objective are aimed at improving the efficiency of the strategies, not necessarily betting on the cheapest ones, but rather those that will generate more income in the long term.
If you have ever run across social media with advertisements or redeemed discount coupons for your favorite brands, then you are within the target audience of someone’s marketing strategy, we agree that it sounds very easy, right?
However, in order for you to perceive this effect, it is true that a rigorous process has been implemented before.
If it fails to catch you as a potential client, it would mean high business costs, for this reason, it is essential that any strategy seeks to optimize your Marketing expenses.
This, in turn, is considered the cornerstone of all strategic planning so that the balance of income is heavier than that of expenses.
Large companies have suffered from bad planning, such as Coca-Cola with the ” new coke ” in 1985 or the ” Beef Lasagna ” by Colgate. If you haven’t read about it, check out the links above to find out about those interesting stories.
Their failures meant losses estimated at millions of dollars and even the inclusion of the well-known “Museum of failure”, but, do you know what is curious about the cases? That the implementation of both strategies was intended to:
- Save on costs (Coca-Cola);
- Expand the market (Colgate).
The mistake of the Marketing department is really impressive, however, you should not be scared!
Precisely we have prepared this article so that you know the most recurring problems of companies with their Marketing expenses, how to optimize them and generate greater business productivity.
Do you want to learn good practices to optimize the financial efficiency of the Marketing department? Then join us on this review!
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Problems of Companies With There Marketing Expenses!
Marketing Digital or traditional should be seen as an investment, not an expense.
Therefore, if you are generating more liabilities than assets, it means that there are mistakes that prevent the attraction of new businesses, you are not creating relationships, and you are not allowing brand development.
Below, you will find three of the most common difficulties of companies that do not manage to manage their Marketing expenses with balance:
Not Understanding The Needs of The Target Audience
In this industry the verb “believe” is not the same as “power”. We must understand each stage of the client’s journey with our brand in order to launch initiatives that generate new business opportunities:
- Learning and discovery stage;
- Consideration stage;
- Purchase decision stage;
- Customer retention stage.
The problem, in this case, happens due to the lack of attention to the needs of the consumers and, with this, leads are lost every second.
In addition to this, we are also witnessing a poor development of the sales funnel. These are the most frequent errors in each phase:
- Attraction: Buyer Poorly defined person;
- Conversion: visitor with negative experiences on the landing page ;
- Sale: the precarious flow of information between the Marketing and commercial department;
- Retention: poor after-sales service.
Each stage of the funnel is linked to the previous one, that is, if the attraction fails, surely we will not reach the sale, much less the retention.
We open the question, would you launch a marketing strategy with all these parameters against it? Surely you will answer a resounding: no!
Lack of Measurement of Results
If there is an error that can mean the fall of the entire Digital Marketing strategy, it is the lack of measurement of results. Without the application of metrics, we will be sentencing the entire strategy that has been running.
Next, we will explain the difficulties it generates:
- We will not have full certainty of the efficiency of our actions;
- It will be impossible to read the behavior of consumers, their current and future preferences;
- We will not be able to measure the engagement of users with our brand, much less retain them;
- The number of inquiries, downloads, questions and possible new potential customers will be a perennial unknown.
Not having updated a summary of the actions, consequences and statistics, will make us unable to meet the general objective of our strategy, we will lose the opportunity within the market and, if that were not enough, we will unnecessarily increase expenses.
The measurement of results is essential if we want to optimize Marketing expenses!
Low Level of Process Automation
The main objective of process automation is cost savings through the implementation of applications that replace manual processes, speeding up the execution time of tasks, preventing possible human errors, and avoiding the loss of downtime.
Therefore, having a low level of automation of Marketing processes affects:
- Need for more resources to carry out tasks;
- Greater probability of human and/or communication errors;
- Information flow between departments very slow;
- Absence of control of results and updating of states in real-time;
- Among other problems.
This translates into an impressive cost increase and the inclusion of a vicious circle that will be very difficult to exit.
Let’s continue to the next part of our post: the solution to optimize Marketing expenses. Continue reading!
Alternatives To Optimize Marketing Expenses
The aforementioned difficulties are very frequent within any organization, generating great economic losses and increasing Marketing expenses, after all, if there is no well-defined planning, the established goals will not be met.
However, they are very specific disadvantages that can be easily solved by executing different tactics that bring a higher ROI for the company and avoid unnecessary expenses.
Below, you will find 5 good practices to optimize the financial efficiency of the Marketing department.
1. Content Marketing Strategy
Content Marketing is a strategy that focuses on attracting potential customers organically, through relevant content distributed across channels and digital media where the audience is located.
It is a way to engage your target audience and grow your network of leads and clients from relevant and valuable content.
It is in charge of creating a positive perception of your brand by attracting, involving, and generating value for people and, consequently, opening the doors to more business.
Like all marketing techniques, a budget is managed that is comprised of:
- Agency or service providers;
- Software licenses;
- Content disclosure pieces
- Among others.
Correctly handle the -o budget – is the first step to perceive the ROI of content marketing, which is the metric that will allow you to calculate the projected return on investments in content production in order to capture customers.
After all, ROI is an acronym that stands for “Return On Investment” which translates to return on investment. 82% of the professionals who invest in Content Marketing blogs have a positive ROI.
Now, why invest in Content Marketing? There is a vague belief that it only tries to create a blog and upload content from time to time, however, it goes further, much more!
Get to know 3 of the most successful practices and the numbers that support them:
- According to Lifebelt (2020), 81.6% of the companies participating in a survey in Latin America and Spain stated that they use Content Marketing as one of the Digital Marketing resources.
- 59.5% affirm that they will produce more content in 2020.
- Although 43.1% of the companies surveyed have a defined content strategy, only 10.1% have a team dedicated to the subject.
- WordPress is the most used CMS, being visited by more than 401 million people who enter different blogs. In total, more than 20 billion pages are visited.
- According to data collected from the Social Media Examiner 2019, 66% of Marketing professionals share their content on social networks.
- We are social 2020 establishes that, in January 2020, social networks have a 9% increase in users around the world compared to 2019.
- On Facebook, 73.1% of users are between 18 and 44 years old.
- Around 2 billion people use Facebook.
- Instagram has approximately one billion registered users on its platform;
- According to Social Media Today, brands post an average of 2.5 stories per week on Instagram.
This resource allows for a lasting and close relationship with potential clients, since a newsletter provides relevant data and materials on a certain topic.
Thus, each week you can select the main subject for your email, segmenting it according to the type of contact you want to attack and collecting data on their interactions with the content you send them.
As we are talking about expenses, Email Marketing is the most efficient channel for acquiring contacts in financial terms, because it only requires investment in an automation tool and in a professional who can structure emails.
2. Videos for All Stages of The Funnel
This is one of the most effective strategies within Digital Marketing. The 54% of users prefer watching videos, being the Latin American audience most interested in this type of technique, with a preference of 62%. Incredible, right?
This means that applying them within our Marketing strategy will facilitate the demonstration of our product in each of the stages of the funnel because:
- It is a way to simplify the message;
- The 87% of consumers use more than one electronic device at the same time, being interactive videos an excellent tool to increase the engagement of your audience;
- It is a way to optimize the customer experience and its journey within the sales funnel;
- Improves brand popularity;
- It makes it easy to collect data, such as the length of time in the video and the number of times it was shared.
This tool is effective in reaching people, adding a lot to the way of distributing a message.
3. Interactive Content
The implementation of interactive content for data collection is essential in every Marketing department. It stimulates the commitment of the buyer person, facilitates the mapping of their day, and is a differentiating element in the experience that your brand offers.
The customer experience of the user on the Internet is intrinsically related to his interaction with the various digital elements, be it a comment on a post or the number of clicks on a web page.
Some of the most effective practices are:
- Interactive landing pages: they are excellent to stimulate visitors to provide information such as email, name, profession, company (if it is B2B), among others.
- Interactive infographic: when exposing an important topic for the business, at a specific moment we can place questions to test the knowledge that the user has on the subject
- and many others, such as calculators, quizzes, resource libraries, maps, and digital books.
In this way, we will be obtaining information from potential leads with an appropriate method and practices.
4. Virtual Stores: Remarketing
It is a Digital Marketing strategy that enables our Google Ads to appear repeatedly for users who have shown interest in the site.
Surely you have made a search for a product and it has appeared to you again and again, right? Well, that’s what this tool is about, seeking to generate a positive impact as a result of your curiosity.
These are some of the feasible statistics that show why it is convenient to practice Remarketing in a virtual store :
- to 58% of users like to receive emails informing them that the products of interest are discounted;
- 51% like to be treated preferentially;
- 41% of adults between 25 and 34 years old are happy to receive emails announcing them about abandoning the shopping cart.
It is essential to have an Email Marketing automation tool to help execute this process and centralize the information obtained.
5. Automate Marketing Processes
Refers to the use of software and other computer technologies that carry out processes at scale to achieve compliance with the goals set within the planning of Digital Marketing.
With the use of marketing automation, we will be able to execute actions, visualize, keep track and determine in a personalized way how to approach the target audience, improve relationships, increase sales and optimize Marketing expenses.
Some of its advantages are:
- Promotes constant communication with the public;
- Optimizes processes;
- Reduces the sales cycle;
- Allows estimating future demand;
- Collect data from the competition;
- Lower costs.
Get to know some of the most useful tools:
- Customer Relationship Management (CRM) or customer relationship management: it is software that ensures customer satisfaction based on the automation of business processes.
- E-mail automation: allows you to unintentionally – but effectively – personalize and manage the relationship with your subscribers, with a particular message. We will automatically receive accurate information, and we will also be able to measure whether you are performing as planned.
- Analysis of the competition: do you want to know who you are competing against? These programs will give you a quite correct answer, in this way, you will be able to evaluate what factors to include to differentiate yourself from the rest and obtain a greater competitive advantage.
Within industries 4.0, automating processes is essential to obtain a greater market share and optimize Marketing expenses.
Also Read: Latest Products Reviews
Optimizing Marketing expenses is a task that must be executed with precision and a lot of analysis, since, if we look for strategies to try to save on costs, it is probable that the greater the money that we will stop receiving due to what we are going to save.
The important thing is to know all the advantages that Digital Marketing offers us, to know when and how to apply the multiple tools that are available to us.
In addition, the implementation of Digital Marketing metrics is essential to measure the entire development of the strategy. If it is very large, the same size should be the metrics, even more!