Are You Leaving Money on the Table?

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Earlier this week we wrote about scale. Specifically, we wrote about scaling those marketing programs that you know are working.

Too often, marketers leave money on the table. And they don’t even know that they’re doing this.

Why? Because they aren’t scaling. They aren’t even trying. And there are a few reasons for that.

1. Next Big Thing Syndrome

Whether this says something about the type of people who wind up in the marketing field or the way technology has hurt our collective attention span, there is a tendency in many marketing departments to spend far too much time chasing the latest and greatest solution.

You might think that this is a good thing, that we should be moving forward and staying on the cutting edge. Unfortunately, most companies don’t have the budget or the bandwidth to operate this way. And what happens too often is that we sacrifice those programs and channels that are proven and reliable, ignoring opportunities to grow.

Before moving onto the next big thing, make sure you’re getting as much as you can out of your existing campaigns.

2. Budget Mismanagement

A common issue in companies of all sizes occurs during the budgeting process. When we put together the marketing budget for the upcoming month, quarter, or year, we do it backwards. We start with at the top, picking a number of dollars to spend, and then work our way down to individual campaigns and programs to determine what percentage of our money we should spend where.

The proper way to build a marketing budget is to start at the bottom and build up. Create line items for each channel or program that ensure you are maximizing those opportunities before moving on to the next one and adding them all up. If you are limited by budget, the things that get cut should be the ones that don’t have the ROI or the scale to support your business.

To avoid leaving money on the table, get smarter about how you budget.

3. Lack of C-suite Buy In

It’s not the CEO’s or CFO’s responsibility to make sure your marketing is optimized. It’s the marketing department’s job to convince them that what you’re doing is working. If you are able to do that effectively, there will be no hesitation to spending the money.

What often happens when there is opportunity to double-down on efficient marketing programs is that marketing stands there with their hands out, but those in control of the finances say no. It’s not because they don’t want to grow. It’s because we didn’t do our job to sell them on the potential of our plans.

To get C-suite buy in for those marketing programs that are working best, it is important to learn how to develop detailed plans and presentations. You want to show them exactly what value you can provide the business if they invest in your ideas.

4. Poor Execution

The last, and, unfortunately, most common reason marketers leave money on the table is simple lack of execution. In this case, the marketing team gets the buy-in they need, correctly measure ROI and chooses to invest in the right areas. But they go about growing their budgets in the wrong way.

To effectively scale, it is important to recognize what has succeeded to this point. Simply spending more money isn’t enough. You have to spend it in the right way. This means identifying the specific reasons for success – whether it’s the proper targeting, the right creative, or offers.

If all you end up doing is spending more to get the same results, you will have failed in your efforts to grow the business. So learn how to execute at scale if you want to succeed.