Welcome to the world of B2B SaaS enterprise solutions, where marketing budgets and revenue targets rule the game. But fear not, fellow marketer and fellow finance leaders, we’re here to guide you through the maze of numbers with a touch of humor and a dash of professionalism. So, grab your coffee/chai/RedBull and let’s dive in!
Crunching the Numbers: Revenue Goals, Average Selling Price, and Win Rate
First things first, let’s talk numbers. To create a marketing budget that hits the bullseye, you need to start with your revenue goals, average selling price, and win rate. Crunch those numbers and determine how many sales qualified opportunities you need to meet your revenue target. Add in the average sales cycle to know when you need to create those opportunities in order to have adequate qualified pipeline for your monthly/quarterly/annual targets. It’s like solving a puzzle, but with math – the ultimate brain teaser for marketers!
Decoding CAC: What Can You Afford to Spend?
Once you’ve wrapped your head around your revenue goals, it’s time to tackle the Customer Acquisition Cost (CAC). Think of it as the magic number that reveals how much you can afford to spend on all your sales and marketing efforts to acquire a customer. It’s like finding the perfect balance between splurging and saving – a budgeting masterstroke!
Allocating the Marketing Moolah: The 33% Rule and Sales Productivity Target
Now that you know your CAC, it’s time to allocate the marketing moolah. Many experts suggest allocating around 33% of your budget to marketing, including people and program costs. But remember, every business is unique, so feel free to tweak the percentages to fit your needs. Oh, and don’t forget to consider your sales productivity target – that elusive number that impacts your sales budget. On average, sales teams achieve about 70% of their quota, so factor that in as you work your budget magic. Don’t be duped by false hope and fantasy forecasts!
The Attribution Dilemma: Multiple Touch Points and Channel Champions
As you gear up to conquer the marketing budget challenge, there’s one obstacle you need to be aware of – the attribution dilemma. For products sold for over $5000 per year, attribution to a single marketing effort is as elusive as a unicorn. With multiple people and touch points involved, it’s like playing a game of ‘who touched the opportunity?’ But fret not, you can still attribute channels or programs to different stages of the sales process – from pre-qualification to winning, expanding, and renewing. Avoid setting MQL targets and bonuses. Managing your marketing budget is like being a detective, uncovering the channel champions that drive results!
Monitoring and Optimizing: A Budgeting Adventure
Congratulations, you’ve crafted a marketing budget that’s ready to rock! But don’t rest on your laurels just yet – the adventure continues. Keep a watchful eye on your expenses, measure the performance of your marketing efforts (I’ve used Bizable, now Adobe Marketing Measure, which takes effort to set up but is a strong way to answer attribution contribution questions), and make data-driven decisions to optimize your budget allocation. It’s like a thrilling quest, where you tweak, test, and triumph!
In conclusion, creating a marketing budget for your B2B SaaS enterprise solution requires a mix of numbers, strategy, and a lot of creativity. With a clear understanding of your revenue goals, average selling price, win rate, CAC, and sales productivity target, you can create a budget that sets you up for success. And remember, while attribution may be a challenge, monitoring and optimizing your budget is an ongoing adventure. So, embrace the budgeting game like a boss, and watch your marketing efforts drive results and take your business to new heights! Happy budgeting!