Whilst we’re seeing more and more autonomy being passed to savvy marketing departments, there are still important conversations to be had with the board, at least annually, about budgets.
And these budgets are likely to come into even sharper focus as we look ahead to the next two years. When 2015 drew to a close, statistics showed marketing spend had increased from 10 to 11% of revenue, on average, and budget growth was projected to rise further over the ensuing 12 months.
But as research and insight specialists Gartner revealed: “…with this increase comes increased expectations; marketing is expected to drive profitable growth through the acquisition, retention and expansion of the most valuable customer relationships”.
Then we learned of the decision to leave the EU. The Brexit announcement rocked the marketing industry, however, business confidence is said to have recovered since the initial panic and consumer spending remains buoyant.
Don’t settle for generic demos. You need to know this is the right technology for you
In fact, marketers are being urged to provide a calming voice after such turbulence and use the opportunity to build upon levels of customer trust.
Don’t ask for less
Now is therefore not the time to ask for less budget. There will no doubt be greater scrutiny surrounding investments made, but, request money in the right way and there’s no reason why you won’t secure the spend you need.
It’s all about how you sell marketing tech to your MD. For example, here’s the suggested approach to obtain budget sign off for a new marketing cloud (or marketing automation system):
- Set the goals (or KPIs) for your marketing cloud: Demonstrate that you know what the investment needs to achieve
- Show that you’ve done your research: Have comprehensively scoured the marketplace for the automation platforms best suited to your brand’s objectives. Key things to look for in a vendor include evidence of technological evolution to date, a comprehensive product roadmap, speed and ease of use, multi-channel integration, a UK base and the provision of customer support if required
- Shortlist your preferred marketing cloud: Ask the vendors questions specific to your needs. Don’t settle for generic demos. You need to know this is the right technology for you
- Business case: It’s important to build a clear, succinct and evidenced business case. MD’s don’t want to read reams of information – they’re looking for the facts. What benefits will the chosen technology bring, in terms of bottom line impact? Whether your priority is customer acquisition, spend uplift or client retention, do your sums before you start the conversation. A savvy MD won’t care so much about expenditure – they will prioritise the return
- Build a hyopthesis: It may sound strange, but, before you automate anything, build a hypothesis and prove it, manually. Act, respond and engage like a computer would. If you can show your MD that the results are feasible, with time and effort put in, imagine the potential if you were able to react quicker, personalise more, and continue the dialogue on a larger scale, with automation!
- Show you’ve thought about tricky bits: If you already have a marketing cloud in place, for instance, your MD may be concerned about system downtime and therefore the loss of earnings whilst the switch takes place. Think ahead and select a supplier that provides a swift migration service with no loss of data or learnings. The best vendors will offer this for free, with little or no disruption
- Invite the marketing automation supplier to support you in your ‘pitch’: You know your MD better than them but they know the tech better than you. They should be able to supply you with helpful nuggets of information, insight into key successes with other clients and even initial suggestions to power more profitable conversations with your customers moving forward
- Invite the MD to sit in on a demo of the marketing cloud. As the age-old saying goes – seeing is believing! Of course many MDs may be too busy to spare this time, but your willingness and transparency will speak volumes
- Outline your plan for the future. By showing what’s next for the marketing cloud, you’ll reinforce the long-term value of the investment and your continued commitment to generate a return
Of course every scenario is different but ultimately, with preparation, approaching the board for sign off of a new or unexpected budget uplift needn’t be as daunting as it first seems.
