It's time to plot your course through the marketing budget maze. But fear not, for this step-by-step guide will equip you with all you need to set up a B2B SaaS marketing budget to propel your MRR push. Onward!
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Greetings, intrepid B2B SaaS scale-up leader!
As you stand on the precipice of growth, it's time to plot your course through the marketing budget maze. Unlike mere startups, you face unique challenges and must strike a balance between expansion and profitability. Like the fabled business owner, who bemoaned the abyss of marketing without a plan, you must steer clear of such perils.
But fear not, for this choose-your-own-adventure guide will equip you with the knowledge and tools to navigate these challenges and help you set up a working B2B SaaS marketing budget.
Turn the page, adventurer!
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Before we hand you the treasure map to your B2B SaaS marketing budget, it's crucial to identify whether you're a scale-up ready to optimize your journey or a startup still navigating uncharted territory.
If you're in the early stages of building your B2B SaaS, your focus should be on:
If you answer "yes" to most of these questions, congratulations! You've graduated from the startup phase and are now a scale-up:
The key distinction lies in maturity and focus. Startups focus on survival through customer acquisition and product-market fit. Their B2B SaaS marketing budget is often reactive and experiment-driven.
Scale-ups, on the other hand, focus on growth and optimization. They have established revenue streams and can afford to invest in strategic marketing to scale efficiently.
If you chose Startup, your adventure in this post ends here. Fret not, we won’t leave you in the quicksand. Find help here!
If you’re a Scaleup, turn the page, adventurer!
Still a Startup but sticking around to see what we have in our bag of tricks? Keep it up, you rebel you!
Having identified yourself as a scaleup, you're ready to tackle the unique budgeting challenges that come with conquering new territories. Your focus will have shifted to optimizing your journey for growth and profitability.
However, this new landscape presents its own set of treacherous peaks and hidden valleys.
Let's explore some of them:
Remember those scrappy startups you once faced and lumbering enterprises you once ignored? Now, you'll be competing for market share with them.
So, standing out from the crowd requires innovative SaaS marketing strategies that resonate with your target audience.
Venture capital-backed firms might want to grow at all costs.
As a scaleup, though, your challenge is to find balance between growth (soaring sales and expanding markets) and profitability (your precious financial health).
So, like a seasoned warrior conserve resources while being mindful of profitability. After all, bootstrap companies are usually fueled by their own resources.
So, you need tangible results in a shorter timeframe from your marketing efforts.
With a limited war chest and a vast battlefield of potential marketing channels – social media, content marketing, paid advertising, and more, you could spread yourself too thin.
This might leave you under-equipped for a single best-for-you channel or lead to missed opportunities.
Unlike startups with consistent revenue streams, scale-ups often deal with:
On top of that, software companies face additional challenges:
The market can be just as unpredictable as the constantly shifting sands in deserts.
You’ll be fighting on two fronts—at least:
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Need help surmounting challenges to get to a marketing plan that works? We’ve got ya!
Think you can defeat all those challenges yourself and create a bombastic marketing plan? Then, turn the page, adventurer!
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Having conquered the initial scaling challenges, you're now facing a new quest: optimizing your marketing budget for continued growth and success.
But what are the essential components of your cost-effective marketing for Scale-ups treasure chest? The ones that will form the foundation of your successful marketing campaign?
Think of your brand as your shining armor in the B2B SaaS battlefield. You need to invest in:
Content marketing investment for SaaS is your mighty weapon in this battle for awareness and engagement. Allocate resources for:
Just like a skilled adventurer needs the right tools, you need the most suitable technology to optimize your marketing efforts.
Consider investing in marketing automation and analytic platforms and CRM software because:
Remember, your customers are the wise counsel in your quest. Investing in your customer relationships is crucial for sustainable growth and smart budget planning in SaaS businesses.
So, allocate budget for:
Finally, the dedicated customer feedback platform that’s your single source of truth for customer feedback? Ensure it’s accessible to various departments like marketing, sales, and customer service.
Need help writing conversion loving copy to win hearts? Have at it!
Already know what goes into a marketing budget but don’t know how to set a budget for it? Then turn the page, adventurer!
Having assembled your marketing arsenal, you're now ready to stockpile the resources needed to fuel your journey. But how much gold should you pack for this expedition?
Here are the various approaches to setting your marketing budget:
The initial flat rate budget is our recommendation for SaaS scale-ups that aren’t as established yet. For instance, companies that lack historical marketing data can’t base their budgets on past performance. The clear spending limits you set using this method make budget management easier.
Or, you could align your budget with a percentage of your projected revenue. This method ensures your marketing efforts grow alongside your financial health.
Research the typical marketing budget allocation for your industry. This benchmark will serve as a starting point for your budgeting equation.
Next, consider your company's current financial state and growth objectives your compass. Are you aiming for aggressive growth or focusing on profitability?
Apply the chosen percentage to your projected revenue to determine your marketing budget amount. For example, a company with a $1 million revenue projection and a 10% allocation would have a $100,000 marketing budget.
This approach offers several advantages:
Remember the strategic goals you defined for your marketing campaigns? The goal-oriented budgeting approach ensures every dollar spent is aimed at achieving those specific objectives.
1. Set SMART goals for accurate estimation of marketing ROI for B2B SaaS. Tie each to a channel.
2. Then, define Key Performance Indicators (KPIs) to track your progress towards each goal.
3. Lastly, estimate the financial resources needed to achieve each goal, taking into account various marketing channels and tactics.
This method prioritizes efficiency and effectiveness, ensuring your budget is strategically allocated to achieve tangible results.
So, you’ve chosen the ideal-for-you budgeting approach. But now, you’ve arrived at another crossroads.
Do you pick an agency or build an in-house team to fight your marketing battles?
Turn the page to find out, adventurer!
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Having established your budgetary framework, you're faced with a crucial decision. Do you build an in-house marketing team or partner with an external agency?
Both paths offer unique advantages and challenges. The best choice depends on your specific circumstances.
An in-house team lives and breathes your brand, becoming champions for your company and its mission.
They’ll develop a profound understanding of your product and its nuances, ensuring marketing efforts are tightly aligned.
And since they’ll grow with your company, they can gain valuable institutional knowledge and use it to help you form your long-term marketing strategy.
However, consider these challenges:
An agency provides fresh ideas and insights from working with various clients across different industries.
You’ll also gain access to experienced professionals and established processes from day one, accelerating your marketing efforts.
Their specialized expertise may come at a fraction of the cost of building an entire in-house team.
The ideal choice between in-house vs agency marketing costs depends on your budget, resources, and strategic objectives. And if you’re going down this path, it’s best to know what’s available:
Look for these qualities when evaluating potential agencies:
Still on the fence about which type of agency to choose? Maybe these examples of our work will help you decide.
Know where you’re headed? Then, turn the page, adventurer!
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As you navigate the complexities of marketing budget allocation, one question inevitably arises: how much should you spend?
Traditionally, B2B SaaS companies have hovered around a 10% marketing budget allocation as a percentage of overall revenue. This approach offered a benchmark for many companies throughout the past decade.
However, recent trends suggest a potential shift in this landscape. It's possible that tech and data-driven strategies are now enabling companies to achieve better results with smaller budgets. Alternatively, companies may have tightened their belts, given the economic conditions.
While the average B2B SaaS budget might be trending downward, it's crucial to remember that scale-ups have unique needs.
As you navigate the growth phase, your investment needs might differ due to aggressive customer acquisition needs, brand building, and market penetration.
So, for old time’s sake, turn the page for the last time, adventurer!
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Congratulations!
You've reached the final chapter of your B2B SaaS marketing budgeting odyssey. Throughout this journey, you've encountered various challenges and unearthed valuable treasures. So, it may be time for a recap.
Your marketing budget is not a static document, but a living roadmap that evolves alongside your company's journey.
Are you a B2B SaaS scaleup ready to embark on your marketing adventure? Check out how INM helps b2b SaaS businesses with their marketing shenanigans!
The end.
A B2B marketing budget varies based on factors like company size and goals. Typically, B2Bs allocate around 1% to 21% of total revenue, depending on market conditions and growth objectives.
The average marketing budget for a SaaS company is about 6-10% of annual revenue to marketing. Yet, this varies depending on factors like growth stage, needs, and competitive landscape.
In-house vs agency marketing costs—you should invest after factoring in expertise, goals, resources, and scalability. In-house teams offer control and alignment, while agencies bring expertise and flexibility. You can also opt for a hybrid model.
We’ll be in touch in a jiffy to get your company’s marketing sparkly and spiffy.