5 Tips for Using Campaign Data to Build Your Next Marketing Budget
In a business environment that's increasingly obsessed with "big data," marketers now understand the value of campaign analytics. They use campaign data to measure incoming leads and cost per lead to justify future spend. However, many marketers focus exclusively on lead metrics and don't apply key campaign performance data that measures impact on sales pipeline and revenue to create realistic expectations and budgets for the coming quarter or year. That's a missed opportunity.
Campaign data is an incredibly valuable tool for creating marketing budgets and projecting close rates. It also helps marketers zero in on campaign influence factors they can use to accurately assess and demonstrate the value of their programs. Here are five ways to use campaign data in the budgeting and campaign development process:
1. Use last year's data to develop targets for this year. When developing strategies to meet lead or revenue targets, it's helpful to use last year's marketing data to set your goals for the current year. For example, if you're tasked with sourcing $10 million in revenue, you can use last year's data to assess how many leads you generated, count how many closed opportunities were created from those leads, determine the average deal size, and see how much budget was spent versus how much revenue was generated from marketing-sourced opportunities. Using these kinds of funnel metrics and budget information will give you a rough idea of how many leads you need to generate and how much you need to spend to achieve your target objective.
2. Use industry data to project campaign close rates. Obviously, your own data is extremely relevant when projecting close rates, but industry benchmarks can help you determine the overall health of your organization. For example, if you're in the software industry, knowing that it typically has a 1 percent inquiry-to-close rate gives you a good idea of the overall effectiveness of your marketing and sales efforts by enabling you to compare your close rates to the industry average. Furthermore, it helps you create a realistic marketing budget by indicating the number of leads and the conversion rates through the funnel you'll need to generate to meet your targets.