I know I'm wasting half my marketing budget

I know I'm wasting half my marketing budget

Published 14 Jun 2018 by Tom Fletcher, CANDDi
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Most marketing techniques are ‘scattershot’. You could try to communicate with only the people you know are interested in your product, but then you’d probably communicating with a very small audience. And, barring referrals, you’d be unlikely to reach people who might be interested in your product but just don’t know about it yet.

I know I'm wasting half my marketing budget

Most marketing techniques are ‘scattershot’. You could try to communicate with only the people you know are interested in your product, but then you’d probably communicating with a very small audience. And, barring referrals, you’d be unlikely to reach people who might be interested in your product but just don’t know about it yet.

So, it makes sense that marketers employ some mass communication techniques the top of the funnel. They target based on demographics and other data to minimise waste, but some of that budget will always be lost.

As the old saying goes, “I know I’m wasting half my marketing budget, I just don’t know which half.”

The problem is, many companies miss the steps after this.

First of all we need to measure the effectiveness of the mass communication so that we can optimise it. Here is where technology adds value: doing this well in the digital world is still non-trivial, but it is easier than with print, TV or outdoor media because it is easier and cheaper to collect good response data.

Then we need to look at what we do with the leads that the mass communication brings. Here’s where it all starts to fall apart. We know from eConsultancy that (our favourite stat) websites only convert 2% of traffic into actions - purchases/enquiries etc.

This tells us that it’s not half our marketing budget that is wasted, it’s most of it! 98% of the leads we have worked so hard to create, and spent so much money to acquire, go nowhere. As my colleague James says: “If the web were your marketing manager you’d give him a pay rise. If he were a salesman, you’d fire him.”

With CANDDi we can help companies to measure the effectiveness of their mass communication. But more importantly, we can help them to improve on that 2% conversion rate by optimising what they do. We give them another bite of the cherry with those promising prospects who don’t quite convert.

With Prospect Analytics, we can turn the web into a better marketing platform, and an absolute star sales platform.

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