Budget-Friendly Marketing Strategies for Big Results

In the bustling corridors of modern marketing, every dollar spent is scrutinized for its impact. As marketers, we're constantly challenged to prove the value of our campaigns. But how can we truly maximize our impact while minimizing costs?

Well, this isn’t a dream—it’s a reality that industry leaders like Alexandre Coussy, CRM & Lifecycle Marketing, Coucou, Jo Hall, Investor, Advisor NED, former Chief Commercial Officer, Toys 'R' Us, and Olya Rudenko, Chief Executive Officer & Executive Director, Cars24 Australia, are achieving through strategic budget optimization, ensuring every tool works in perfect harmony. By focusing on key performance indicators (KPIs) and tracking the right metrics, they're able to measure the effectiveness of their campaigns and make data-driven decisions that fuel long-term growth.

Let's dive into their insights and transform your marketing strategy.

How to Optimize Your Marketing Budget for Maximum Impact

1. Boost Efficiency by Consolidating Your Martech Stack

A Gartner study reveals that companies typically utilize only 42% of their martech tools' capabilities, highlighting a significant opportunity for optimization. By reassessing your needs and choosing software that provides vital functions across multiple departments, you can enhance utilization without incurring additional costs. Alex points out, " Use a web push feature from your existing ESP rather than paying for a separate platform, or downgrade tools that offer unused functionalities like AI segmentation."

2. Harness Customer Data Analytics for Targeted Marketing

Alex advises, "Leverage your customer data analytics to understand what your ideal customers are buying." By mapping product journeys, you can target customers whose engagement mirrors that of your VIPs, boosting repeat purchases. For instance, if customers who purchase certain categories have higher LTV, tailor your marketing efforts toward those categories through automated welcome and post-purchase campaigns.

Jo adds, " To get the best bang for our buck, we dive into data with our clients using marketing dashboards to help analyze which channels are bringing in real results and double down on those." Identify exactly who your core customers are and only invest in platforms where that segment is active. “Don’t spray and pray," she advises. "Smaller, more focused campaigns are always more effective, especially for smaller brands or SMEs, than large-budget campaigns that are designed to win awards rather than drive results."

3. Focus on Organic Growth

Focusing on organic growth, such as SEO, founder marketing, PR, and Google Business Page optimization, can significantly boost revenue. Olya emphasizes the power of word-of-mouth and reviews noting that over 90% of customers read reviews before making a purchase. However, she believes these organic strategies are often underutilized, making them prime areas for growth.

4. Maximize ROI by Optimizing Attributable Spend

Attribution modelling plays a critical role in understanding the ROI of your digital campaigns. Olya shares an example from her brand, where fixing attribution models helped double their iOS ROI, driving material sales growth with the same budget. Tracking the performance of Facebook, SEM, and app marketing across different channels ensures that you’re investing in the most effective tactics.

5. Invest in Long-term SEO Strategies

Olya is a big advocate of SEO, noting its potential to be a profitable, cost-efficient and effective way in driving new leads and sales for brands and their long-term growth. She believes it is important to focus on technical SEO and content creation. A way to do this is utilizing tools like ChatGPT for content generation and leveraging platforms like TikTok for low-cost video content possibilities.

Generating results and organic traffic might not be as straightforward as they may seem. Jo continues, "If something isn’t delivering?” She states that pivoting fast and looking for smarter ways to connect with customers is critical. Thus, future strategies must be built on these insights, not gut feelings. Leveraging on future customer trends to see what your consumers are starting or potentially engaging with will allow marketers like us to trial these platforms as they grow.

6. Repurpose Content for Maximum Value

Jo suggests, "Break up long-form content into smaller, bite-sized clips tailored to different audiences and marketing channels." This strategy allows a single production to be used multiple times, maximizing its value across various platforms.

7. Invest in Small Scale Influencers

Investing in nano influencers (1K - 10K followers) and micro influencers (10K - 100K followers) can provide a higher degree of experimentation and reach diverse audience groups. Jo emphasizes the importance of monitoring key metrics to measure the success of these partnerships. "Upper funnel metrics include reach, impressions, and engagement, while lower funnel metrics include traffic and conversions," Jo explains. Additionally, share of voice (SOV) metrics, such as the tonality of comments, and return on ad spend (ROAS) are closely monitored for all influencers.

8. Utilize Generative AI

Generative AI can save immense time and effort in creating visual mock-ups, allowing for greater experimentation and ultimately better executions. Jo notes, "Improved timelines result from shorter brainstorming exercises and easier selection of visuals." By experimenting with concepts and visuals before investing in expensive physical mock-ups, businesses can save on print costs and visual merchandising fees.

How to Measure Marketing Effectiveness and ROI

Defining ROI and Key Metrics

In today’s market, clear KPIs are essential to understanding the effectiveness of your campaigns. Alex points out two key metrics that should always be at the forefront: Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV). Olya highlights the importance of understanding incremental profit when measuring ROI. "For businesses, ROI isn't just about the total revenue. It's about understanding the profit generated from a campaign after subtracting the variable costs associated with producing and selling the product," she explains.

Choosing the Right Attribution Model

A strong attribution model is necessary for driving revenue growth. Begin by reviewing the customer journey, sales cycle complexity, and available data. Many businesses still rely on last-click attribution, but this can be misleading, especially if a campaign drives in-store conversions that aren't captured online. It’s crucial to consider all touchpoints in the customer journey to understand what truly drives conversions.

Alex suggests focusing on lower-funnel campaigns first, as these customers are closer to converting. “Once you’ve captured the low-hanging fruit, focus on upper-funnel efforts to build brand recognition and long-term growth,” he advises.

Using CAC and LTV to Guide Strategy

Constantly track CAC, LTV, and revenue attribution to make informed decisions. For example, you might notice that certain campaigns generate customers with higher LTV despite a higher initial CAC. In that case, it may be worthwhile to invest more in those campaigns, knowing they’ll provide better long-term returns.

Optimize Your Budget Based on Funnel Stages

During a campaign launch, it’s crucial to adjust your budget allocation. Jo emphasizes the importance of aligning KPIs with campaign objectives. "For brand campaigns, focus on reach and impressions to raise awareness. As customers move closer to purchasing, shift the budget to lower-funnel tactics to drive conversions."

Tracking metrics at different funnel stages is crucial. "For customer acquisition, measure loyalty program signups. For promotions, focus on footfall and conversion rates," Jo advises.

Customer Experience Drives ROI

Jo also emphasizes, “Delivering an exceptional customer experience is key to ensuring repeat business and positive word-of-mouth. That’s how you build long-term ROI.”

Contributors:

Jo Hall, Investor, Advisor NED, former Chief Commercial Officer, Toys 'R' Us

Alexandre Coussy, CRM & Lifecycle Marketing, Coucou

Olya Rudenko, Chief Executive Officer & Executive Director, Cars24 Australia