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5 Ways To Determine if Your Lead Gen Budget Stacks Up

Presort.com   June 10, 2014    

Is your lead gen budget big enough? Probably not. But then again, I’ve never met a CMO who felt that they had enough dollars to do all of the things that they wanted. But is your lead generation budget competitive? That is a completely different question— and the answer may surprise you. Companies are all over the map when trying to answer this question. But why? It’s our job as CMOs to know how much money we need to run a successful marketing program, right? Not so fast. Sometimes it isn’t as cut and dry as we (or our bosses) would like. And it simply isn’t always easy to determine what makes sense when establishing the ideal marketing budget. A popular way to do so is to calculate marketing costs as a percent of sales. According to the Marketing Leadership Council, most B2B companies have a marketing budget that averages between 6 and 10 percent of gross sales. Manufacturing companies may be much less (between 2 and 6 percent).  And aggressive, growth oriented companies may spend much more (between 10 and 25 percent). While they are only benchmarks, these are great ways to assess your competitiveness from a top-down approach. But there are other ways as well. While assessing your budget as a percentage of sales is a fairly standard procedure these days, you could break from the pack and employ a bottom-up approach using a customer lifetime …

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5 Ways To Determine if Your Lead Gen Budget Stacks Up