How to plan your marketing budget and results?

When creating advertising campaigns, we always face the question of how much we need to invest and what result we can expect. To reach your main objective, you need to break it down into small, controllable steps. Let’s say your task is to make 3 sales of services per week. You sell your services during meetings. You know that you only close a sale in every second meeting – the conversion rate from meetings to sales is 50%. Before the meeting, potential clients fill in an enquiry form on your website. 3 out of 5 people who complete the enquiry form agree to meet you – a 60% conversion rate. Based on your data, you also know that the conversion rate from website clicks to enquiries is about 1%, and a click to the website costs on average €0.10. What can you do with this data? You can work backwards (reverse engineering). Here is what it looks like: 3 sales → 6 meetings (50% conversion) → 10 enquiries (60% conversion) → 1,000 website clicks (1% conversion) → Advertising budget €100 (avg. click cost €0.10). This means that in a week you need to get 1,000 clicks to your website, which will give you 10 enquiries, of which 6 will result in meetings and 3 will buy your services. By doing this, you break your goal down into actions you can control. In this case, that action is clicks. If you see that you will not have such a budget for advertising, you need to think about how to get free clicks – and how many you will need. This type of planning also reveals that sometimes goals are unrealistic and difficult to achieve. In that case, you set yourself different goals or change the strategy altogether. You can also ask yourself whether it really makes sense for you to spend €100 to get 3 sales. Will you actually be left with any profit in that scenario?

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