Lessons from a lifetime of marketing budgets

Likely you have submitted that 2015 marketing plan by now. Awesome! Do you think it will be approved?

Over the course of many decades spent examining hundreds of marketing budgets of financial institutions of all sizes…I have found a couple of truths.

  1. Most every marketing budget describes how the money will be spent, but not what you plan to get back in return. For example, marketers can describe how they will spend $200,000 on a variety of thoughtful and well-meaning programs. However, they do not express what revenue and profit will result from spending this money. Hmmmm… Isn’t the marketing result you get more important than what you spend?
  1. Marketing budgets must be flexible. Maybe you plan to do “Project X” and you’ve set aside the money to do so – but when a cool new program is presented that can deliver a better return than the original idea, accept it and change your plans! Life is too short to be rigid. Be open and decisive. If you require loan growth, seek out programs that will help you deliver and prove results.
  1. Marketers must allocate their budgets around programs and projects that can deliver results. Scan your plan. 40% should be invested in branding related programs; 40% to direct marketing programs (where it is easy and obvious to prove results) and the balance should go for PR and social media pursuits. How does your plan stack up? If you are in a Top 50 market, it may be difficult for your branding dollars to go very far. You have direct access to your membership; take the brand to them. It is a lot more cost effective – and the results will be easier to measure!
  1.  Allocate your time and talents in the same percentage as your budget. I hear of too many marketers spending greater than 50% of their time chasing social media gold. Good luck. Let the 80/20 rule corral that golden goose until it starts laying eggs…
  1. If training and people development is part of the marketing budget, be sure to focus on the programs that align best with your goals. A better-equipped and trained staff is worth more than most marketing budgets.

Good luck to all in achieving your dreams in 2015!

Jay Kassing

Jay Kassing

Jay Kassing is President of MARQUIS, a Texas based provider of marketing analytics solutions including MCIF/CRM software, MCIF services, profitability, compliance, consulting and direct mail creative/fulfillment. Jay has ... Web: www.gomarquis.com Details