When it comes to getting the most out of marketing, it starts with ensuring the right level of investment. Whether that is an investment in people, of time or of budget; you only get out what you put in so getting it right is important.Invest in People & Skills
Successful marketing requires a team (or an individual) in charge of strategizing and executing tasks. Without a dedicated Marketing owner, marketing plans are at risk of being forgotten. One of the most effective ways to achieve the focus required to plan strategically and execute on-time and consistently is to dedicate an individual or team to owning and managing your marketing function.
Why hire a dedicated Marketing Manager?
Marketing is a broad field that requires a wide range of skills. Hiring an experienced marketing professional can result in more effective and more efficient marketing because they know how to get results. Even if you are unable to afford to hire someone full-time, we recommend outsourcing the role to an agency or hiring someone part-time.
Consider Outsourcing
If you would like to outsource some of your marketing, start by talking to your local Microsoft Dynamics Marketing Services Bureau (MSB)?These professional marketing agencies have been carefully selected for their experience and effectiveness. Whether you’re generating leads, customizing marketing materials, improving digital presence, or executing campaigns, these marketers can help provide the services you need.
The simplest investment you can make in skills development is time. As a part of your benefits as a Microsoft Dynamics partner, you get access to comprehensive on-demand and instructor-led courses via the Microsoft Dynamics Partner Academy.
Unfortunately, most companies under spend on marketing budgets, thinking that by allocating less money—they are saving. Marketing should be viewed as in investment that has a direct impact on your revenue. The focus should be on spending your budget wisely on a tailored marketing plan to help you meet your business goals.
When setting a budget, we recommend you align it with your revenue goals rather than the activities you want to execute. Best practice indicates that your annual marketing budget should be 3% to 10% of sales (or projected sales). This budget does not include the budget that will be required to hire a Marketing Manager.
The exact percentage you invest will depend on a number of factors, specific to your organization. For example, if you're looking to launch a new ISV product or grow aggressively you'll be in the higher end of the range, possibly 10%. However, if you are well established and face little competition, your investment may be in the lower end. If you are a small business you could consider investing closer to 10%, given a smaller revenue base.
Here are some suggested marketing budgets based on industry best practice:
| REVENUE | MARKETING BUDGET |
| Less than $5 million | 7-8% |
| $5-10 million | 6-7% |
| $10-100 million | 5-6% |
| $100-300 million | 3-5% |
Did you know:A B2B marketing survey conducted by Sagefrog Marketing Group revealed 68% of B2B companies in the U.S. allocate just 5% or less of their company revenue on marketing. For small businesses, this means their marketing budgets are too low.
TIP: When choosing where to invest your marketing budget, ensure that there is a clear link between your investments and your overall goals. Also, resist the temptation to invest in things that aren't in your marketing plan. For example: taking last minute discounts for print advertisements may seem like a great deal, however, unless it is part of a broader, existing media strategy your money may be better spent on activities already in your marketing plan. One-time print advertisements are expensive and may not don't offer response rates as high as direct mail or email.
Building great relationships with customer and prospects will help you grow your business. Did you know that according to customer relationship management experts, companies can increase revenue by 50% if they retain only 5% more of their customers?
People buy from, and recommend companies they trust. Focusing on cultivating trust with your customers and prospects through regular contact and valuable, helpful information is the first step. Each marketing campaign should have multiple touch points and multiple opportunities for customers and prospects to engage with you-focus on offering them information and help with their business challenges and priorities.
Do you agree? I'd love to hear about your approach to investing in marketing and what you find is helping you to be successful.