Once you have determined your CLV, multiply it by the result from step 3. You will then get your actual revenue potential. We come to the end of the calculation. A rule of thumb in marketing is that you cannot allocate more than 15-25% of your sales. In fact, it all depends on Bolivia Email List a gas plant. To determine how much Inbound Marketing budget you can allocate based on your context, multiply your revenue potential by 15% and 25%. You will get a realistic fork. Do you want to calculate your Inbound Marketing budget with a clear head? I will simplify the task for you by offering you this worksheet to save: Download the full-size worksheet right here! Here is an example of a realistic calculation.
Consider a website that attracts 1000 visitors every month and wants to grow to 2000. It will attract 24,000 visitors every year. With an average conversion rate of 2%, this represents 480 inbound contacts. By then applying a low signature rate of these contacts of 2%, we obtain a volume of 10 customers. Then comes the last part of the calculation of the Inbound budget: 10 customers x 20,000 euros of average basket = 200,000 euros. Multiplied by a CLV of 1.2, we obtain a potential turnover of 240,000 euros. By taking a range between 15 and 25% of turnover, we calculate a possible Inbound Marketing budget of between 36,000 and 60,000 euros. If you want us to help you calculate your budget, book your time slot: 5 reasons to spend a budget on inbound marketing.
Calculate your own budget
To generate qualified prospects. With the Internet and social networks, buyers’ behavior has changed dramatically. To cope with these changes in B2B, it is essential to review your prospecting methods to better meet the buyer’s expectations. Today, the B2B buyer leads his buying thinking on the Internet on his own and no longer appreciates being imposed on information through unwanted communications. The buyer is therefore much less receptive to cold calls from sales representatives or to field prospecting. In this situation, it is essential to offer content on the Internet to fuel the buying thinking of its target and convert visitors to its website into qualified prospects. Allocating a budget to Inbound Marketing, therefore, turns out to be the perfect solution.
To publicize your offers You must take up a crucial issue: convince the buyer of the relevance of your solution when the buyer does not always suspect its existence or does not understand its uses and all the added value. This is an important issue because if the buyer does not know your offer, he will not seek you directly on the Internet and search engines. So how do you get his attention? To meet this challenge, it is important to put in place a content strategy that allows you to position your solution in the face of the problems encountered by the buyer. To increase productivity To meet the expectations of the B2B buyer, it is important to offer them personalized communications. But now, personalizing all your communications will take a lot of time.
Example of calculating an Inbound Marketing
Unless you invest in Inbound Marketing and a Marketing Automation tool. Marketing Automation is a tool that allows you to industrialize your Inbound Marketing approach by automating the majority of actions. It is a significant budget but, well used, the return on investment will be appreciable. To communicate in the right tempo. As a B2B company, there is a huge educational work to be done with your prospects to convince them of the relevance of your offer. In addition, it is important to send the right communications to the right person at the right time. In a traditional Marketing approach, segmenting your targets by characteristics is possible but you do not take into account the buyer’s progress in his purchasing process.
In other words, you do not have the possibility to distinguish a prospect who is at the beginning of his thought to buy from a prospect who has looked around the existing solutions and who hesitates between the best ones. However, you understand that sending the same communication to these two prospects is not relevant. With an Inbound Marketing budget, you will be able to offer your prospects suitable content to feed them throughout their buying thinking. For more ROI One of the strengths of Inbound Marketing is its ROIste approach. In Inbound Marketing, all the actions you take are designed to generate a return on investment. The great advantage of inbound marketing is that you can monitor the performance of your actions in real-time and adjust them in the process to optimize your return on investment.