Most industrial marketers are busy prioritizing their marketing investments for 2022. If you’re behind in getting started, it’s not that difficult to catch up when you follow this four-step process:
- Measure your marketing results in 2021 to date
- Use ROI evidence to plan for 2022
- Account for special conditions
- Prepare to justify your budget requests
1. Measure Your Marketing Results in 2021 to Date
Every company has its own way of measuring ROI. There’s no one correct way to do it. Some companies use a formula that track sales in relation to marketing expenditures or leads that become customers. Other companies account for a prospect’s every marketing touch throughout their buying journey. Some calculate ROI for each individual program.
However you track ROI, you should try to avoid a common measuring mishap: Attributing a sale solely to the first or last marketing touch.
The first marketing touch brings the prospect into your universe and the last marketing touch precedes the sale. However, a prospect likely interacts with your company, content, and campaigns in multiple ways before making a purchase decision.
If you can’t measure how every marketing touch contributes to a sale, at least measure the popularity of your programs. Clicks, page views, ad impressions, downloads, comments, shares, email opens—these are all ways to measure engagement with your marketing and the popularity and value of your content. This will give you some sense of how well these programs perform and contribute to ROI.
2. Use ROI Evidence to Plan for 2022
If a program is performing well for you in 2021, chances are it will continue to deliver benefits as long as your audience hasn’t changed, and market conditions aren’t dramatically different.
For example, if you had good results from advertising in a newsletter, make this program a priority again. You will likely want to refresh your creative and possibly look for similar newsletters that can reach your target audience.
Programs that have been disappointing in 2021 may need to be scrapped, or you may want to do more research first. Did you give the program enough time to gain traction? Are you confident you measured its results accurately? Did you reach the right target audience, but your message didn’t resonate?
It’s in this step that you lay out your 2022 priorities based on this past year’s results. Once that’s done you massage those priorities.
3. Account for Special Conditions
Here’s where your priorities might get rearranged a bit. If your company is recalibrating its business goals, then marketing priorities will change as well.
Perhaps you have a significant product launch coming in 2022. Your company might be planning to enter a new market or leave an underperforming one. If a merger or acquisition is in the cards, it would certainly affect marketing priorities.
By accounting for business goals and special conditions, you can not only come up with a better marketing plan, but you can also demonstrate to executives who must approve your budget that you have your finger on the pulse of your company’s goals and the market situation.
4. Prepare to Justify the Marketing Budget
To justify your marketing budget, you must be able to project the results of your marketing programs. The best indicator of future ROI is past performance. Any changes you’ve made should be defended based on revised business goals, better audience targeting, or better marketing channels fit for your objectives.
It’s also helpful to propose three different budgets, demonstrating you understand that uncertainty always exists, and markets are always fluid.
- Best-case scenario—if business is robust, what is your best-case budget and how will you allocate it to achieve your marketing goals?
- Worst-case scenario—if the economy drags or markets suffer, what are the bare-bones marketing priorities that you must continue to fund? Such as your company website or your email campaigns.
- Realistic scenario—Chances are neither the best nor worse cases will come to be. Prioritize your marketing investments for 2022 around the most likely situation, and you’ll still be ready to make changes as needed because you’ve already modeled different scenarios.
When planning for 2022, you want to make sure you cover all of your bases. Download our 2022 Industrial Marketing Planning Kit for the perfect guide to crafting a marketing plan that best targets your audience and grows your business