Campaign Budget & Metrics Budgeting can be time consuming, but also very powerful. While most companies track their campaign expenses, adding customer projections and ROI analysis can deliver significantly more intelligence. With it you can Evaluate which campaigns project to be the most profitable Evaluate what type of media to purchase Determine if a campaign should even be run Make changes during the campaign if you’re not meeting projections Analyze your results and identify areas for improvement next time.
Summary EXERCISE SUMMARY
When to Address
Who Should Participate Where to Use the Results
When you’re planning a specific campaign If you’re evaluating media purchases or writing your annual marketing plan Marketing and sales leaders Finance team Reference your ROI projections and budget during and after your campaign. Use them to measure results and determine future changes.
It’s common business practice to operate on a budget. While ROI projections aren’t perfect, they’re a great tool to understand what to expect from different marketing Why it’s Important investments. You can add specific campaign budgets to your annual marketing plan if you wish. What Builds Upon it Timeframe to
1 to 4 hours, depending on your campaign.
Marketing Campaigns Campaign Budget & Metrics
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Completion Potential Business Impact Deliverable
Next Steps
Medium to high. Creating a detailed campaign budget and ROI projection can help you make better business decisions. You’ll determine your projected revenue and profit for a campaign, add your campaign costs, and project your return on investment. To complete your ROI projections, you’ll probably need to reference media detail and cost projections that you’ll create in the specific campaign section (Direct Mail, Email Marketing, Telemarketing, etc). After you’ve created your budget and ROI projections, create your fulfillment plan [535]
Target Completion Date
PARTICIPANTS TASKS
PERSON RESPONSIBLE
DUE DATE
Notes Marketing Campaigns Campaign Budget & Metrics
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Marketing Campaigns Campaign Budget & Metrics
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Campaign Budget & Metrics
What to Complete
1. DETERMINE # OF IMPRESSIONS, LEADS AND CUSTOMERS 2. CREATE REVENUE AND PROFIT PROJECTIONS 3. CREATE BUDGET AND ROI ANALYSIS 4. OUTLINE MEDIA PLAN METRICS
Where it Fits in Marketing Campaigns Estimate Response Rate Project Sales Process Set Customer Goals Calculate Goal Metrics Determine Business Goals Select Campaign Media Identify Target Step in Buying Process Select Messages and Activities [Jump to Campaign Subject to Plan Details] Determine # of Impressions, Leads and Customers Create Revenue and Profit Projections Create Budget and ROI Analysis Outline Media Plan Metrics Determine How Prospects Will Respond to Your Offer Create Fulfillment Plan Steps Measure Campaign Results Create an Improvement Plan
1. DETERMINE # OF IMPRESSIONS, LEADS AND CUSTOMERS You may have already completed these in Exercise 530 – Quantify Your Goals. If so, note that some of the data you entered in the workbook for 537-‐A will flow through to other sheets in the workbook to make things easier. Marketing Campaigns Campaign Budget & Metrics
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If you haven’t completed this yet, jump to step 1 in 530 and enter your results in 537-‐A. You may enter the results below if you wish. What is your result? Media type
Estimated response rate
Number of new leads we need to generate
Number of new customers to generate
2. CREATE REVENUE AND PROFIT PROJECTIONS Your next step is to determine your revenue and profit projections. Open 537-‐B and enter your data there. You may want to speak with someone on your finance team to obtain some of the information. Here’s the data you’ll need: • Average price per unit of products/services sales resulting from campaign • Average cost of goods per unit of products/services • Per unit overhead costs (optional – some companies just use a standard % to project for overhead) • Per unit incremental expenses (optional – same concept as above) • Estimate of unit sales per product (if you’re selling multiple products from a campaign) Average price per unit of products/services sales resulting from campaign Average cost of goods per unit of products/services
Per unit overhead costs (optional – some companies just use a standard % to project for overhead) Marketing Campaigns Campaign Budget & Metrics
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Per unit incremental costs (optional – same as above) Estimate of unit sales per product (if you’re selling multiple products from a campaign) After you enter these into 537-‐B, print the results for your deliverable.
3. CREATE BUDGET AND ROI ANALYSIS
To create your budget, use 537-‐C to evaluate your quantitative objects and preliminary ROI for your entire campaign if you wish. 537-‐D will summarize these costs. You can estimate them initially then use the detail budget sheets for the individual campaigns to create your exact numbers. If you use this master template 537-‐C, your entries from 537-‐B will estimate how many additional leads you will obtain from the activities you outlined in Exercise 530 – Quantify Your Goals and 537-‐A. It’s an ongoing process; when you create a plan, you’ll need to continually evaluate multiple criteria. For example, here is a typical process for creating and launching a campaign: 1. Project how many leads you need 2. Determine what type of campaign(s) you will launch 3. Determine the general message to deliver based on the stage of the sales process of the prospect 4. Determine a rough budget for each campaign 5. Adjust strategies and campaign decisions if necessary 6. Refine the budgets and compile total budgets for the campaigns 7. Launch campaigns and measure results 8. Revise campaign strategy based on the success of the individual campaigns You can then estimate your total costs for each media outlet used here: MEDIA TO BE USED TOTAL PROJECTED COST
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You may decide to use the template(s) provided in the individual subjects for the media you’re using. For example, if you’re sending a direct mail piece and following up with a phone call from your telemarketers, you can create an individual budget in 501-‐C (Direct Mail) and 421-‐F (Telemarketing) or create those budgets in the main Marketing Campaign templates in Exercise 537-‐C.
4. OUTLINE MEDIA PLAN METRICS
If you’d like to create an extremely detailed media cost plan, 537-‐E can help you break down your costs per impression for each media outlet, based on initial projections.
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