As a financial services provider, you know how important it is to stick to a budget, especially as you’re working to build your company and attract new clients.
At the same time, you might also need clarification about how much you should allocate to your B2B marketing budget.
If this is the case for you, you’re in the right place. Find practical tips on defining, creating, and tracking your company’s budget below.
Decide How Much You’ll Spend
Defining your budget is one of the trickiest parts of this process. How much of your total budget do you allocate to B2B marketing tactics (ads, content, social media, etc.)?
There are a few different ways you can define your marketing budget, including the following:
- Percentage of your total budget: B2B companies spend about 11 per cent of their total budget on marketing.
- Percentage of your total revenue: B2B services companies spend around 9 per cent of their total revenue on marketing.
- Defining budget by industry: Businesses in the finance industry typically spend the most on marketing — approximately 8 per cent of their total budget.
There’s no one right way to define your budget. However, you can use these suggestions as jumping-off points to decide which option is best for you.
Consider Your Company’s History
When deciding how much to allocate to marketing (and then how much of that money to dedicate to different marketing tactics), it’s helpful to look back at your company’s history.
Consider how much you’ve spent previously and the kinds of results you saw from that spending.
For example, did you spend a lot on Instagram ads last year without seeing significant outcomes? If so, consider reducing the amount of your budget dedicated to social media ads this year and allocate the extra funds to a more practical option.
Set Specific Goals
You can also decide how to divide your marketing budget by setting specific marketing goals. Consider what you want to accomplish in the next quarter, year, etc., and then identify the marketing strategies that are most likely to help you achieve your goals.
For example, say you want to improve lead generation and increase the number of online inquiries you receive. If that’s the case, you may dedicate more of your budget to content marketing and search engine optimisation.
Identify Essential Metrics
To track your marketing budget effectively, keep an eye on your spending, and measure return on investment (ROI), you need to identify the most critical metrics for your company.
Some costs to focus on include paid activities (such as social media ads), salaries and subscriptions, and the cost per acquisition (how much it costs to gain one paying customer).
Align Spending with Your Marketing Funnel
A helpful strategy for some marketers is to align their spending with their funnel.
The marketing funnel starts broad with brand awareness and then narrows to the latter levels of trust-building, engagement, and client retention/loyalty. Your budget can follow a similar format.
For example, because brand awareness is the largest part of the funnel, it will likely require most of your budget for things like Google Ads, SEO, and blog writing. Trust-building will take up the next greatest amount for things like eBooks, webinars, and case studies.
For the third level, engagement, you’ll dedicate a smaller portion of the budget to things like email marketing and consults or product demos. Finally, the last level, retention and loyalty, can be dedicated to things like promotions for new products and exclusive offers for repeat customers.
A sample budget breakdown might look like this:
- Brand Awareness: 40 per cent of the marketing budget
- Trust Building: 30 per cent of the marketing budget
- Engagement: 15 per cent of the marketing budget
- Retention/Loyalty: 15 per cent of the marketing budget
Of course, these are just estimates to get you started. You can personalise your company’s budget based on past spending, performance, etc.
Monitor Performance and Adjust Accordingly
Careful monitoring and reporting are crucial to evaluating your company’s marketing budget and deciding if it’s sufficient.
Take note of your goals and the key metrics you’re using to measure success. Then, pay attention to how your business performs month after month.
Remember to adjust your budget for the next quarter or year based on the information gathered from the previous one.
Did you meet or exceed your goals? Did you overspend in one area but have a lot of money left over in another?
Use those details to improve your next budget and your company’s overall financial health while making meaningful progress toward your marketing goals.
Don’t Make Rash Decisions
One of the most frustrating things about B2B marketing — and marketing in general — is that you rarely experience immediate results.
It can often take months to determine if a particular tactic, including paid marketing tactics like Google Ads or influencer marketing, is effective and worth your money.
Because effective marketing requires patience, it’s vital that you and your team don’t make rash decisions. Be patient and focus on the data you’ve collected rather than letting emotions drive your spending choices.
When in Doubt, Reach Out
Your area of expertise is financial services. You know what you’re doing when it comes to accounting, bookkeeping, tax preparation, and online banking.
It’s okay if you don’t also have all the answers when it comes to B2B marketing.
If you’re not sure how to improve your marketing strategy to achieve your goals and stay on budget, reach out to a professional.
A financial services marketing team can evaluate your approach, identify ways you can improve, and ensure you’re making the most of your budget.
Time to Set and Stick to Your B2B Marketing Budget
Whether your financial services business is brand new or has been around for decades, establishing a marketing budget can be challenging. The guidelines mentioned above can help you streamline the process and make informed decisions for your company’s future.
Do you need help maximising your B2B marketing budget and ensuring you see significant returns? If so, FinTech Content Marketing can help.
Contact us today to learn more about our content marketing services or to schedule a consultation.