How much should you invest in Digital Marketing Ecuador?
Posted: Tue Dec 17, 2024 4:49 am
If you are a marketing director of a B2B and B2B-B2C company, whose business consists of selling medium or high-value products/services, you have probably experienced one of these situations:
They have received so many proposals around a single requirement, but with such different costs that it is difficult to define how much each thing should cost.
You feel that if you tell your digital marketing service provider what your budget is, the agency is going to plan based on using up that entire budget, not based on the actual value of the proposition.
You came across an expert guru who proposes an investment much higher phone number list than what you had planned, but without any offer of return.
If you have found yourself in any of these situations, how can you define a price range for your digital requirements? If, on the other hand, the team is planning marketing budgets for the next year , what percentage of investment should you allocate to Internet assets?
A technical way to invest in marketing
We recommend taking these factors into account when determining how much to invest not only in digital but in any marketing strategy:
Average Customer Lifetime Value
Customer acquisition cost
Effectiveness of current marketing channels
Average Customer Lifetime Value
What is the purpose of knowing the average lifetime value of a customer? To project how much income the company will receive during the lifetime of a business relationship and determine how much of that value can be invested in attracting new customers. Normally, 10% of the value of this indicator is allocated to marketing activities, but this varies according to the financial capacity of each company.
What is the average lifetime value of a customer? This indicator basically refers to the calculation of the value that a customer will generate over the entire duration of our business relationship with them . Example: your company has 10 recurring customers and the average duration of their business relationship is 12 months. During that lifetime, the average monthly income per customer is $20,000 and the gross profit margin is 70%. The average income of your current customers would then be $140,000.
Knowing this information, you can identify the clients that provide a better or worse income than the average and determine what marketing actions to take to retain them. The values taken into account in this calculation depend on the nature of your business and the level of detail you want to reach, but a simple formula to calculate this indicator is here .
They have received so many proposals around a single requirement, but with such different costs that it is difficult to define how much each thing should cost.
You feel that if you tell your digital marketing service provider what your budget is, the agency is going to plan based on using up that entire budget, not based on the actual value of the proposition.
You came across an expert guru who proposes an investment much higher phone number list than what you had planned, but without any offer of return.
If you have found yourself in any of these situations, how can you define a price range for your digital requirements? If, on the other hand, the team is planning marketing budgets for the next year , what percentage of investment should you allocate to Internet assets?
A technical way to invest in marketing
We recommend taking these factors into account when determining how much to invest not only in digital but in any marketing strategy:
Average Customer Lifetime Value
Customer acquisition cost
Effectiveness of current marketing channels
Average Customer Lifetime Value
What is the purpose of knowing the average lifetime value of a customer? To project how much income the company will receive during the lifetime of a business relationship and determine how much of that value can be invested in attracting new customers. Normally, 10% of the value of this indicator is allocated to marketing activities, but this varies according to the financial capacity of each company.
What is the average lifetime value of a customer? This indicator basically refers to the calculation of the value that a customer will generate over the entire duration of our business relationship with them . Example: your company has 10 recurring customers and the average duration of their business relationship is 12 months. During that lifetime, the average monthly income per customer is $20,000 and the gross profit margin is 70%. The average income of your current customers would then be $140,000.
Knowing this information, you can identify the clients that provide a better or worse income than the average and determine what marketing actions to take to retain them. The values taken into account in this calculation depend on the nature of your business and the level of detail you want to reach, but a simple formula to calculate this indicator is here .