How Strategic Marketing Spend Supports Sales Growth

Strategic America sets itself apart from other businesses’ strategic marketing through open, honest communication, leveraging data, and fostering collaboration with our clients. Associate Marketing Strategist AJ Berglin says that SA sees our clients more as business partners than simple clients, “We ensure that their [the clients’] business is successful. We could say that we will need to spend $80,000, knowing we’re going to get a percentage of whatever the spend is going to be, but we don’t want a purely transactional relationship. We aren’t wired that way…” said Berglin.

When a client approached SA’s data team to explore additional marketing efforts to hire a new sales representative, it required an increased marketing spend beyond the current plan. The target was clear: generate 210 additional opportunities (opps) by the end of their fiscal year.

 

Collaborative Planning to Maximize Marketing Impact

The data team immediately consulted their tactic leads for expert recommendations on allocating additional funds across various marketing channels. This collaborative approach ensured that every dollar spent would be maximized for efficiency and impact.

Their analysis revealed that with a targeted increase in spending, they could potentially generate 112 additional opps while maintaining a cost per opp (CPO) in line with our current cost, and an impressive, estimated return on marketing investment (ROMI) of 4.6.

 

Transparency on Diminishing Returns

When they presented these findings to the client, the data team emphasized the diminishing returns of spending beyond SA’s recommendations. Additional spending would likely increase the CPO and decrease the ROMI. The client appreciated SA’s transparency and data-driven approach, deciding instead to focus their marketing funds on supporting the current sales team.

“Strategic America’s willingness and ability to provide a truly consultative collaborative approach is why we choose them to be our marketing vendor year over year.   Our conversations center around performance of past investments with an eye towards what is working and adjustments needed.    This allows a targeted plan moving forward and gets us our best return on our investment.” – Client

 

Strategic Spending Over Increased Budgets

This experience underscores the vital relationship between marketing and sales… A plan to reach the 210 opp goal would have been financially unfeasible. SA’s approach showed the maximum opps they could drive while maintaining a financially sensible return for their partner.

Effective marketing isn’t just about spending more; it’s about spending smart. Through careful planning and strategic investment, they can drive substantial growth and maximize returns, ensuring every dollar contributes to the success of both marketing and sales efforts. This also relates to client goals and managing expectations, why being strategic and leaning on data-driven decisions can help clients more toward long-term growth. At times, that requires adjusting current client plans.

“We rely on our team of experts to let us know what’s feasible. But managing client expectations is just through that open and honest communication. We try to be the best business partner we can be. We want to do everything to help them reach their goals. But we also want to say when something isn’t feasible, and maybe additional spend would be better served elsewhere,” said Berglin.

The Importance of Data-Driven Decisions

This case highlights the critical role of data-driven decision-making in aligning marketing and sales efforts. It demonstrates the importance of understanding and explaining diminishing returns to clients, ensuring they get the best value for their investment. Successful marketing strategies are built on collaboration, thorough analysis, and clear communication with clients. The greatest challenge can be navigating an ever-changing marketing landscape, but by fostering collaboration and setting realistic goals, your business can achieve growth.

Strategic America will continue to work closely with this client to build their business and sales team, fostering long-term growth and success. By leveraging data and fostering strong collaboration, businesses can achieve a balanced strategy that supports both immediate sales goals and long-term marketing efficiency. After all, marketing and sales is a symbiotic relationship and effective marketing isn’t just about spending more; it’s about spending smart. Through careful planning and strategic investment, substantial growth can be driven, maximizing returns, and ensuring every dollar contributes to the success of both marketing and sales efforts.

Leveraging the Expertise at SA

Berglin’s advice for clients is to talk to the SA team, “If you want to grow your sales, you want to add reps, you want to expand territory, you want to get into new areas of marketing, or you want to explore new options. Come talk to us because we’ve got an extremely talented team here at SA. We’re here to be your experts.”

AJ Berglin is an Associate Marketing Strategist at Strategic America. Learn more about our services.