How to conclude with the final digital marketing budget
Before embarking on a digital marketing campaign, it is necessary to talk about costs. After all, no one can really escape this constraint. In addition, financial management must be particularly meticulous, which is especially true for start-ups.
The first step is to skillfully calculate the budget necessary for the success of your digital strategy. Here, we will describe different methods during the analysis, as we talk about effective methods at all levels.
Determine your goals using the SMART method
The first method that will allow you to calculate your budget, and to successfully reach your goal, is the SMART method. We are speaking of an acronym (Specific Measurable Attainable Realistic Temporary) which formulates the objectives very precisely.
The method calls for specifying the objective to be achieved. In our case, it is a question of calculating at best the cost that will generate the marketing strategy.
For this to be specific, it must be measurable. This is why a financial specialist using the SMART method will integrate a measurement element. Generally, a financial portrait will be drawn up, in order to have a comprehensive assessment of everything that is related to the cost. The goal here is to make the objective financially measurable and, above all, over time.
Of course, this goal must be attainable. Thus, all the factors will be calculated to highlight the costs, as well as any unforeseen events. This method focuses on the details and leaves nothing to chance. It will especially allow you to see if, at the financial level, your marketing strategy is actually feasible and profitable.
The SMART method also addresses if the goal to be achieved is truly realistic. Indeed, betting on a budget too tight is not at all realistic. As in all projects, you have to be prepared for everything. This is what we call realism while in the process of production. Funding, repayment and the likes all fall under this category.
Of course, this goal must be measurable over time. When it comes to the financial aspect, everything has to be treated in detail.
Note that this exercise is quite tedious. If you thoroughly analyze the SMART method, you will surely feel that you can do it on your own. Only, it is strongly advised that you are supervised by professionals. This will avoid mistakes that may jeopardize the entire project.
Calculate your Cost Per Total Acquisition
Calculating the cost of acquisition in the field of digital marketing is also an important step. This will especially allow you to highlight the profitability of the whole operation. Fortunately, with digital marketing, you have many performance indicators at your disposal. Thus, you will be able to know precisely the fallout of each financial action.
What can this do for you in reality? For starters, it will be the best way to appreciate your digital strategy. It will also be a good beacon to monitor profitability as well as customer acquisition.
Besides the fact that it is a good way of monitoring, it will also allow you to highlight the channels, the strategies and especially the most effective actions. Thus, you can direct your future efforts towards these winning ways. You will see that the results will keep on improving.
Of course, thanks to the results of the calculation of the total cost per acquisition, you will be apt to boost the most profitable digital strategy. This calculation is therefore necessary to adjust your actions as much as possible in order to achieve a better ROI.
Once again, it must be emphasized that the calculation of the acquisition cost as a whole is necessary when the budget is drawn up. Thus, the company is sure to have the necessary amount to invest in order to generate the expected leads. Conversely, this calculation will also determine how many customers you will have to earn to reach the expected turnover.
The LIFE value
The cost of acquisition also affects the value of life at the customer level. We talk about the benefits that the customer can bring to the company throughout his life. A life that is represented, here, by the duration of its commercial relationship with the company. This will further clarify the return on investment and is essential when setting the starting budget.
Your marketing strategy will inevitably be profitable if the life value fully offsets the cost of acquisition. Of course, the gains must be greater than the expected expenses.
The concept can be a little trick since, it not only impacts the budget, but also profitability as a whole. We are talking about total control. This is the strength of this calculation of the total cost per acquisition.
What are the different costs?
Of course, one of the most basic ways to calculate the budget for your digital strategy is to highlight all costs. There are quite a few, but we will categorize them into 3 types. We talk about the tools, the content and the manpower needed to implement the strategy.
In any case, before doing this thorough analysis, you will have to meticulously determine your needs. What is the scope of the strategy you want to put in place? It is only then that you will be able to specify at best these 3 values. After all, a local strategy will not have the same constraints as a big marketing strategy for the entire planet.
The tools needed
A strategy without tools is not conceivable. Here, it is important to know which tools will be used during the campaign. Above all, it is essential to know how much each one will cost.
A digital marketing strategy naturally involves writing content. Here, we speak of quantity, but more specifically of quality. After all, search engines evaluate each content and it is necessary that the quality meets expectations. This quality is primarily defined by fully satisfying the needs of all Internet users.To attract Internet users, but especially to gain a good conversion rate, we must bet on a varied content. Besides the quality of the writing of each article, it is necessary that each of them brings something to the Net surfers. The use of videos and images is also part of this content strategy.
Writing good content is a huge factor in the evaluation of a site and, most importantly, affects its ranking in regards to the results in the search engine, while many rules and constraints frame the marketing content!
The salaried professional
In order to answer your needs regarding referencing, and especially writing content, it is advised to externalize this action. This will not only allow you to cushion your costs, but above all to have high quality content. In this context, you have two choices available to you:
Web agencies: an agency is composed of a team specialized in the field of digital marketing. You are sure that it will meet your needs, but the price will be quite high. Freelancers: free workers are actually excellent alternatives to amortize your costs. These are qualified specialists who are often available on demand at great prices.
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