Determining what you should spend is a business decision - like any other you make in your business. You set the objectives, define measurable targets, understand what it is worth by way of expected returns and then work out what you are willing to spend in order to achieve those targets.The marketing aspects are no different - know the market segments, align your products and services to those segments, define your value proposition and then define the initiatives that need to be put in place to deliver to the objectives.
Starting out is as easy as answering the following questions for yourself.
1. What would the average value of sale be worth to you for a well qualified lead?
2. What percentage of qualified leads can you assume will convert to actual sales or new business?
3. Given a target for new business sales, how many visitors to your website would you need to generate in order to convert to actual sales?
Now depending on the business you are in, the types of products and services you offer and who your market is and how they make purchasing decisions, the answers you provide will vary considerably. Do not overlook how critical the design of your website also is. Does it induce visitors to take some form of action, does it arouse their interest to find out more and does it support the business operations?
Now check out the current traffic to your website - the source and number of visitors, returning visitors and the pages within your site they actually visit. How many of those visitors convert to new business revenue? This information is at your fingertips and is current of course? If this data is not available I would suggest that you found out how to get it right now as this data is critical to your business.
Given all this data is now at hand you can ask yourself the next big question. What would it take to attract X additional visitors that can be converted to $Y new business revenue? You now know what you need to do, you can determine what it will cost and then make your business decision. With the right Internet marketing plan in place you will realise hidden revenue opportunities that could simply astound you. You are now in a position to determine what the ROI is for your Internet marketing campaign and decide whether it is worthwhile to proceed.
Starting out is as easy as answering the following questions for yourself.
1. What would the average value of sale be worth to you for a well qualified lead?
2. What percentage of qualified leads can you assume will convert to actual sales or new business?
3. Given a target for new business sales, how many visitors to your website would you need to generate in order to convert to actual sales?
Now depending on the business you are in, the types of products and services you offer and who your market is and how they make purchasing decisions, the answers you provide will vary considerably. Do not overlook how critical the design of your website also is. Does it induce visitors to take some form of action, does it arouse their interest to find out more and does it support the business operations?
Now check out the current traffic to your website - the source and number of visitors, returning visitors and the pages within your site they actually visit. How many of those visitors convert to new business revenue? This information is at your fingertips and is current of course? If this data is not available I would suggest that you found out how to get it right now as this data is critical to your business.
Given all this data is now at hand you can ask yourself the next big question. What would it take to attract X additional visitors that can be converted to $Y new business revenue? You now know what you need to do, you can determine what it will cost and then make your business decision. With the right Internet marketing plan in place you will realise hidden revenue opportunities that could simply astound you. You are now in a position to determine what the ROI is for your Internet marketing campaign and decide whether it is worthwhile to proceed.
About the Author:
Greg Tomkins is the Web Architect at Top Left Designs a Gold Coast | Brisbane Internet Marketing & SEO services company servicing website owners for SME business. For further info about Google Analytics visit Measuring Website Performance
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