8 Methods to reduce marketing costs while ensuring efficiency

Reducing marketing costs is not recommended. However, the cost is large, the efficiency is not optimal, then the reduction is something you should think about. Reduce costs but must increase or maintain efficiency to be optimal. Reducing costs is not about shrinking, but about focusing and “refreshing” all existing marketing campaigns. As a unit with many years of experience in the field of Digital Marketing. XDIGI will share with businesses and business individuals. 8 ways to reduce marketing costs and still ensure sales, and even help grow your business.

Perspectives on reducing marketing costs

• Reducing marketing costs makes businesses shrink:
  • Marketing as a way for businesses to “reach out” to the best customers. However, reducing marketing costs does not mean narrowing the scope and frequency of marketing activities of the business. So it is not correct to say that reducing marketing costs causes businesses to shrink.
• Large marketing costs make business profits lower:
  • This is obviously a correct view. However, if planning is cost over price. This is not a problem if the business controls well within the allowable cost.
• Reducing marketing costs makes the brand fade away in front of customers:
  • Brand is not just built by marketing. And of course it is not what determines whether Brand exists or not. Moreover, reducing marketing costs does not mean that branding campaigns will be cut.
• Decreasing marketing costs can overwhelm competitors:
  • You need to survive before there are small battles with opponents. If you are looking at marketing expenses as a burden, it’s time to reduce your marketing costs. Drop before your opponent hits you with their massive potential.

1.Remove low performing marketing channels

There’s no need to maintain a channel whose existence doesn’t drive sales at all. It is a waste to pour marketing costs into this and makes no sense. Marketing reports will show you the performance of your channels. From there you can make decisions to eliminate or cut costs. Your business may return to this channel next time. But that’s when your marketing expenses have a budget for expansion. Usually XDIGI recommends paying attention to the large channels, with the channel’s approach mechanism being different. For example Facebook and Google are two big channels. These 2 channels both have smaller channels. For example, Facebook has Instagram, Google has Youtube. Facebook’s mechanism is to proactively reach out, while Google is potential customers to come by themselves. Therefore, the expansion of channels is not necessary. You might just need Facebook and Google Search. However, in some cases your product or service is unique. If you can’t search on Google Search, you can switch to focus and Youtube. But absolutely do not ignore Google Search.

2.Optimize the marketing staff

Re-optimizing the marketing staff does not mean reducing staff. The optimization should focus on the performance of the employees to increase productivity. Of course, optimizing employee performance is not easy. But if you don’t want the marketing costs to swell, you must build the right KPIs for each employee, each department.

3.Increase marketing campaign 0VND

It sounds unrealistic. However, marketing 0đ is a way to call for campaigns that use little or no marketing costs (except for staff salaries). These campaigns can be mentioned as SEO, Viral, using satellite systems,… Increasing these campaigns will reduce your marketing costs a lot. However, your staff will work much harder, especially for SEO and Viral. As for satellite systems, you must have resources and have built them early.

4.Do not arbitrarily use KOL – Influencer

KOLs and Influencers can be a popular trend among marketers. However, arbitrary use will increase marketing costs a lot. You can only use these influencers in Brand campaigns. Determining which KOL – Influencer to choose is very important. Not every famous person is effective. The KOL image you use will probably be the image of your business.

5.A closer analysis of campaign plans

Reducing marketing costs means you have to increase the performance of the marketing team and the business owner. Analyze more closely the marketing campaign plans such as budget, cost, work and even expected results indicators. Misjudging the availability of a plan can overwhelm the budget. Or the resulting index could be a lot lower than what was expected.

6.Multi-channel budget allocation

Once you’ve eliminated the low-performing marketing channels, it’s time to re-allocate the budget. You should not focus all on one channel, but should evenly distribute the channels based on their performance. For example, an electrical appliance distributor might spend 30% of its budget on Facebook with a remarketing campaign. And 70% for Google (Youtube & Search) to find potential customers. Reallocating multi-channel budgets may not reduce marketing costs. But it certainly allows you to fine-tune the effectiveness of your campaign. And increasing the number of orders is already a way to reduce indirect marketing costs.

7.Increase remarketing

Remarketing can use Facebook, Google, Email or customer phone number. Anything that can connect you with old customers, increase its activity. There are businesses that let their customers’ emails be molded on their web data. The Facebook Pixels plugged into the web are never used. You should remember that the lead-to-buyer journey is a process with time and stages. Therefore, it is very unlikely that you can only approach them once and make a sale.

8.Optimize the consulting scenario to increase the conversion rate

Customers come to you for the first time, what do you do, do you have anything new the second time, the third time they ask if they have any incentives?,… Actually, customers will not have those thoughts. But you have to do it so you can expect customers to buy. What XDIGI is talking about here is the customer funnel. Optimizing the consulting scenario is the way to apply the sales funnel to the consulting process. Divide consulting phases for customer lifecycles. For example, the first time customers come, let’s talk about incentives and gifts, but focus on the use and benefits of the product. When they like it and come a second time, give them a little more fun about your product. If they feel like it too much, they can close immediately. If not, they will come for the 3rd time. Now consider giving them a discount that can close up to 95%. If all marketing activities are effective and cost less. But if the conversion rate is low, all the marketing costs will go to waste.