How to reduce marketing costs? Check out our 4 strategies

Every company, especially during periods of economic instability, is primarily concerned about the financial health of the business. The control of inflows and outflows, the execution of the balance sheet, and the planning of the budget are useful measures for those who wish to identify resources. Therefore, we want to give you some tips to reduce marketing costs. How about?

It is estimated that the annual expenditure on this important area amounts to around 10.5% of the revenue of an enterprise, revealing its expressiveness in the success of any organization. It is possible to spend less with intelligent management and with well thought out and executed strategies.

How to do more with less is the expression of order at all times in the corporate environment. Read on and see how to reduce marketing costs in an effective and intelligent way.

Why reduce marketing costs?#

Your business results depend not only on internal factors, such as team productivity and the consolidation of mission, vision, and values, but also on external factors (politics, economy, regulatory bodies, and competition, among others).

As with any organizational sector, investing more in marketing does not mean a greater return if the financial investment is arbitrary, ill-thought out, or based on unfounded data. Reducing expenses within a company is necessary to rationalize resources, as a way to manage assets more efficiently.

Thus, it is possible to boost weaker areas of the company, improve the product sold or the service provided - and, consequently, add more value to it -, increase working capital, save money for the acquisition of a distribution center or for the opening of a new commercial outlet, among other projects.

How to reduce marketing costs?#

Multichannel is an almost inherent factor in today’s organizations, especially retailers. Its presence on multiple channels is necessary due to the increasing inclusion of the virtual network and technology in our lives, a trend in the globalized world.

The virtual environment revolutionized marketing, energizing the way in which companies present themselves to the market: brand positioning is increasingly strategic and visual appeal is enormous. Faced with so many opportunities, how can you apply your resources wisely? How to reduce marketing costs? Keep an eye out for the following tips!

1. Get to know the target audience well#

The more you learn about your niche market, the greater the chances of offering the consumer products or services that satisfy their desires and needs. We are talking about data, such as age range, socioeconomic status, level of education, place of residence, places where you go and groups to which you belong.

Knowing the target audience well helps reduce marketing costs, as it facilitates the analysis and choice of strategies with the highest ROI, that is, it guides decision-making with support and, thus, increases the chances of accuracy of the chosen measure. In short, it helps managers to do more with less.

2. Invest in digital marketing#

Nowadays, it’s no exaggeration to say that if your company isn’t on the internet, it doesn’t exist. There are 3.9 billion Internet users in the world, almost 127 million in Brazil alone, and domestic e-commerce earned R$ 75 billion in 2019, an increase of 22.7% compared to the previous year. Have you noticed how important it is to be on the internet and on consumers’ gadgets?

Investing in a digital presence highlights the brand and helps reduce marketing costs because the measure can be adopted free of charge when creating a blog or a social network page.

Also, Instagram, Facebook and their multiple resources are great channels for generating leads and obtaining information about those who are interested in your product or service (remember what we said in the previous topic?).

3. Cultivate (and not just attract) customers#

It is also possible to reduce marketing expenses by retaining customers, because then they don’t have to be won over again. As a result, they take less time to go through the sales funnel and decide to buy, after all, they are already aware of how the company is positioning itself in the market when the solution offered attracts them.

Direct mail, exclusive discounts for regular customers, loyalty clubs and installment payment advantages, for example, may cost less than restarting the entire path already taken to attract the lead. Get this: 54% of consumers buy more when they’re being rewarded, evidence of how cashback can be a great option.

4. Define and track KPIs#

You won’t know if you’re investing excessively in an advertising channel without following the key indicators established for that stock. Think about this before taking any action!

Is it worth investing so much time in cold calling because of the number of sales made in the modality in the last month? The advertisement for X Minutes on the radio may have cost less than the TV one, but if they were the same in running time, which one generated more revenue for the company?

When you define metrics and track them, you can see exactly which actions give the most return on investment, which have the best cost-benefit ratio, and where the excesses are. Therefore, KPIs help reduce marketing costs.

• 5 essential performance indicators for marketing management
• What are the top 9 KPIs in retail? Check it out here
• Discover 6 retail marketing indicators!

What tools can help?#

Social media managers are great for reducing marketing costs because they indicate your brand’s performance on the internet, guiding strategic decisions (such as choosing the action with the best ROI). They show how much you invested, the ad or post that performed best, likes, shares, searches, and comments.

You can also automate processes to spend less on marketing by investing in CRM software that helps with landing pages, emails, and lead management. Still in this vein, programs like Wikimee are also recommended because they control publications, offers and allow better product management.

The platform in question is capable of reporting the prices of more than 180,000 advertising spaces in the Brazilian media and helps with media planning by providing updated data on TV and radio audiences.

Have you noticed how reducing marketing costs isn’t just about cutting expenses? The action is surgical and must be well designed to be strategic, allowing the organization to take full advantage of the rearrangement.

If you want to take more effective measures in this regard, you can count on Wikimee. A platform for automating projects and tasks, approving parts and content, remote collaboration, and file management. Your operation solved in a single solution!

Schedule a demo now and learn how Wikimee can help you leverage your business.