How much to budget for database marketing vs. sales lead generation programs?
Companies with mature database marketing programs budget less than half of their funding towards image, awareness, and sales lead generation programs.
Most b-to-b marketers appear to spend 90-95% of their budget on image, awareness, and sales lead generation programs and only 5-10% on database marketing. I think this budgeting approach is dead wrong.
Instead, if you are relatively new to database marketing, consider initially spending approximately 70% of your marketing budget on image, awareness, and sales lead generation programs.
Then spend about 20% of your budget funding your database marketing programs designed to nurture prospects until they qualify or buy.
Spend the remaining 10% to target existing customers to retain and sell other products or services, upgrades, and add-ons.
Companies with mature database marketing programs often eventually wind up budgeting less than half of their funding towards image, awareness, and sales lead generation programs. Especially those who have been able to track and measure the increased sales that resulted from marketing programs aimed at their databases. Why? Because they find that they don’t need to spend as much on those objectives when they are also using database marketing programs to talk directly to sub-sets of their market.
These mature database marketers use the other half or more of their budget for funding marketing communications programs aimed directly at their databases of suspects, prospects, and customers. Targeted, orchestrated, repetitive campaigns designed to identify and nurture prospects and talk to customers, maximizing the sales opportunities they represent.
Image, awareness, and sales lead generation programs play an essential role, but sales lead generation programs work best alongside strong database marketing programs. Both are important to having top-performing direct marketing solutions.