How Much Should We Budget for Database Marketing VS Sales Lead Generation?

A mature database marketing program spends under half of their funding toward image awareness and sales lead programs.

It seems the majority of business to business marketers put over 90% of the budget into image enhancement, market awareness and sales lead generation programs, while under 10% goes into database marketing. This approach is incorrect.

As an alternative, if you’re new to the database marketing game, consider putting about 3/4 or your marketing budget to image enhancement, market awareness and sales lead generation. Then spend the remainder funding other database programs with the intent to develop and nurture hot prospects until they become qualified leads or make a purchase. You may also want to save a bit of this remaining budget to target your existing customers to upsell, retain, upgrade or add-on to the current offerings.

Those businesses which have more developed database programs, particularly those who have demonstrated an ability to measure and increase sales from database marketing programs, usually end up spending less than 50% of their budget on these sales lead, image and awareness-enhancing programs. Why is this so? It’s simple: because they know they aren’t required to spend so much on these objectives when also effectively using a quality database marketing program. These savvy database marketers are able to use the remaining 50% on communications programs directed specifically at their prospects, customers, and leads. These select, coordinated and consistent marketing campaigns are designed to locate and develop sales opportunities.

Although sales lead generation, image, and awareness all play an important role, these programs are most effective along with a well-executed database marketing program. A good balance between both marketing aspects will help you reach top levels of performance in your direct marketing efforts.

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