article | April 23, 2014
5 Strategies to Reverse a Marketing Budget Cut
The CEO just notified you that he’s cutting budget. He’s taking 100% of the cut out of marketing. This results in a cut of 20%. The CEO didn’t even look at other departments to share the cut. Questioning why your budget was cut, you realize you haven’t proven your worth. He sees marketing as a pure cost. This undercuts your credibility as the Marketing leader.
You know the budget cut will hurt company performance. What do you do to reverse the budget cut?
There’s no quick fix to reverse it. The decision was made. You have to act fast. First, work to get more out of your team. Restructure the marketing department is a starting point. The marketing team structure should be organized to drive results. This blog post, offers great advice to get you started. It calls for a team assessment, project prioritization and optimization of your teams design. Once you have this done, it’s time to plan to get your budget back.
Here are 5 strategies to help you make a case to preserve the Marketing budget
1. Build an Integrated ProForma (ROMI across all marketing efforts)
You are probably guilty of mining customer lists for gold to show an ROI. This is where marketing is seen sweeping new customer lists for matches to campaigns. Trying to match up closed deals to marketing campaigns doesn’t inspire the CEO’s confidence.
Instead, leverage the Integrated ProForma. It provides your team with a framework for capturing the complete picture of campaign performance. It builds credibility with sales leadership. It does this by providing a reliable view of campaign success. Get help with building an Integrated ProForma by downloading the Marketing Budget Cut Response Kit.
Many marketing leaders treat sales QBRs as an afterthought. This leads to the perception of marketing as a cost. Marketing leaders need to dive into sales QBRs with enthusiasm and active engagement. This is the perfect time to perform quarterly benchmarking to showcase marketing’s effectiveness. It’s also the time to engage in discussions with insightful contribution. Drive discussions with how Marketing can help Sales hit their targets.
Organizations that have achieved real sales and marketing alignment are rare. Just like you check your cars alignment, you should regularly check Marketing’s alignment with Sales. Take the 10 Point Checklist for LeadGen Alignment included in the kit. In 10 minutes you can uncover root problems. The checklist guidance includes deep definitions of world-class attributes of sales and marketing alignment.
4.Build Internal Personas – Market Your Marketing Services
You and all CMO’s have created Personas for the customers. When executing sales enablement efforts, the internal sales audience is overlooked. Develop a persona for your sales team. Market your marketing services when communicating with the sales team. Show the sales team what key value points are important to them. Understand their goals and obstacles impacting sales. This gives direct credibility to marketing’s efforts on enabling the sales team.
Agile execution is created by adopting a responsive culture across your team. The team executing the marketing plan should be making quick decisions. Focus on data and quickly optimize. Improvements are made within days. The team takes advantage of the opportunity to adjust a campaign or stop it all together. The result is typically increased ROI and making the number.
To help you keep track of marketing contribution, download this kit. It includes a worksheet to calculate marketing’s revenue contribution.
As a marketing leader, having your budget cut is not easy to swallow. Once you have restructured your team, you are ready to prove your worth. Follow these strategies to reverse perceptions and protect your budget. Download the Marketing Budget Response Kit.
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