Justifying Your Marketing Budget

Posted by Jackie Gonzalez on 1/24/17 3:04 PM

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How much you can accomplish in any given year or quarter is dependent, at least in part, on how much money you have to spend. Unfortunately for marketers, the people with the power to decide how big your budget will be from year to year don’t always see things with the same eyes that marketers do.

To convince your finance team and the C-suite that you’re worth your piece of the budgeting pie, you have to make an effort to explain your value in terms that matter to them.

Start Speaking the CFO’s Language

One of the most important skills marketers often talk about needing is empathy. You’re well versed in trying to understand your target audience, now turn some of that empathy toward your CFO. What do they care most about? What are the values and priorities they have that you can appeal to?

In order to meet your CFO where they are, you have to approach your marketing with an eye toward showing revenue. Marketing performance management software can help you do that. It helps your marketing team keep measurement top of mind as you work toward improved outcomes. When you can show marked improvements at the end of each quarter, your CFO will be that much more comfortable handing you money when it’s time to allocate the budget next year.

Demonstrate Marketing ROI

The first step in demonstrating accurate marketing ROI is the development of a solid plan. By determining how you’ll spend your annual budget, you’ll create a baseline with which to gauge success.

Tools like Hive9 are able to look at your historical data and waterfall conversion rates to provide accurate revenue results based on your play. In addition, deploying revenue attribution can show the finance “powers that be” which specific programs and tactics paid off the most (relative to what they cost) for the organization. With support for proven attribution models, you’ll be able to zero in on marketing successes with specificity.

Embrace Data to Get More of Your Budget Back

Beyond the reporting gains, marketing performance management also allows you to do more with less. This is because you’ll not only be able to drill into marketing successes, but you’ll be able to determine the programs and tactics that are underperforming in real-time.

This commitment to data-driven marketing allows you to cut out unproductive spending and immediately get some of your budget back. Reallocating that spend to programs that are exceeding expectations will result in improved outcomes and impress the CFO.

In fact, companies that use Hive9 for data-driven marketing have gotten as much as 27% of their budget back because of it.

You can too. If you’re ready, we’re happy to show you how.

Icon made by Freepik from www.flaticon.com is licensed under CC BY 3.0

Topics: Financial Planning, Marketing Budgeting, Hive9

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