Marketing Budget Planner
Calculate your marketing budget and develop a more sophisticated marketing strategy.
Two methods for establishing marketing budget strategies.
Setting up a marketing budget is never a simple task.
We recommend simulating the budget using two methods and referencing the appropriate outcome or deciding between the two results.
The first method is a heuristic model that considers industry experience, business model, market entry risks, online presence, and more. It references the industry average and can be applied to almost all cases.
The second method is a marketing budget strategy based on CLV (Customer Lifetime Value). Rather than satisfying all customers perfectly, focus on nurturing customers as brand advocates. This method involves differentiating between target customers and those who should not be targeted for marketing when allocating the budget. In particular, subscription-based models must use this approach.
A heuristic model
It is a model that takes into consideration factors such as experience, business model, market entry risks, online presence, etc. It references the industry average and can be applied to almost all cases.
CLV based model
Making a distinction between target customers and those who should not be targeted for marketing is a method of setting budgets. Particularly, the subscription-based business model recommends this approach.
Are you ready?
- Use the 'Marketing Budget Calculator' survey below to reference your digital marketing budget level,
- Then try out the Customer Lifetime Value-based Marketing Budget Calculator chatbot at the bottom to calculate your budget.
1. Refer to the budet
After submitting the form below, receive personalized recommendations for a suitable marketing budget for your business through a brief survey.
2. Get recommendation
Customer Lifetime Value (CLV) is the anticipated revenue a customer will generate throughout their lifetime. Consult the guidelines below for budgeting based on customer lifetime value.
By calculating customer lifetime value, you can develop the optimal customer acquisition strategy and estimate marketing costs effectively.
Customer Acquisition Cost
Understanding the lifetime value of a customer helps to better determine the level of budget needed per customer and reduces risks significantly.
Recovery Period
When utilizing customer acquisition costs, it is essential to know how long the recovery period will be. A longer recovery period increases business risks, so implementing marketing strategies to shorten the recovery period is crucial.
- Average revenue per customer (per purchase amount)
- Number of customer purchases
- Customer lifecycle (duration as a customer)
- Customer retention rate
- Customer profit margin rate
CLV is a crucial KPI that must be managed in relation to your customers. When you're ready, calculate it right away using the chatbot at the bottom right. 👉👉👉