We know what you’re thinking: “I need a marketing guru, a graphic design aficionado, a brand-managing WOLVERINE!” Very few small businesses think, “I need a budgeting analyst”, and what comes to mind is probably not a person or firm that’s “trendy” or “cutting-edge”.

What those businesses are missing out on is a valuable tool that can turn a brand with a lot to offer into a brand that’s effective. Your brand may be every bit as trendy as the current enterprise du jour, your budget may be healthy, but at the end of the day if you’re earnings are lackluster you may be missing out on a fundamental strategy to keep your sales per dollar spent as high as possible.

But what do I know about budgeting? I haven’t taken an accounting class in years!

And more importantly- what can it do for my business?

If the people you are spending your budget money on aren’t receptive to the contagious excitement that you have about your idea, then it may be time to switch where that money is going. Who are the people that you are marketing towards? If 60% of your clientele are young adults living in higher income areas then why is half of your budget going to direct mail that they will never read?

When you’re searching for relevance in a market that is constantly trying to outdo itself, it’s important to keep two of your populations in mind when planning your marketing budget: The impulse buyers and the loyalists. The impulse buyer needs to be constantly sold if they are going to continue using your product or service. Marketing to this population needs to be frequent and catchy. They are the high-maintenance girlfriend that constantly needs to be showered with your attention or else their eye starts to stray. Who are your impulse buyers and what are their demographics? Identify who these people are to you and devote an appropriate amount of your budget to their market. Keep in mind not only how much of your market they are, but how much interaction they expect to keep engaged and what mediums will have the most impact to them when planning for marketing expenses.

Loyalists are going to expect different treatment. They may be harder to sell to than an impulse buyer, but once you have them they are yours, AKA “wife material”. This behavior warrants more up-front expenditures as you court the elusive loyalist. Once sold, they will appreciate more thoughtful communications, like personal emails offering a deal just to those in the “Club”. An oversaturation of email blasts could cause them to feel like they are just someone you blanket-text and not the very special woman in your life.

In recap, when planning your marketing budget keep in mind not only who your target market is and how to reach them, but how much interaction they need to keep you as their #1. Go get ‘em tiger!

-Karissa Burgess, MBA
Guest Blogger Specializing in Business Analytics