Early fall is the typical time when most professional service firms start working on their budgets for the next year. Your firm likely does so as well. Although it’s not likely that you’re going to increase your marketing budget for next year, have you given any thought yet to whether you’re going to level-fund or reduce it?
Whatever decision you make, it’s best to start with the big number and work backwards. Following is a basic list of areas that are typically funded:
- Professional association fees & dues
- Memberships
- Sponsorships & donations
- Directories
- Sales promotional collateral
- Promotional activities
- Client & referral source entertainment
- Memorial gifts
- Client and referral gifts
- Promotional specialties (logo giveaway items)
- Advertising
- Internet
In my experience, one of the biggest chunks of firm marketing budgets is sponsorships and donations. I’m referring to such expenses as golf tees, ads in the programs for charitable events, charitable capital find contributions, and the like. These aren’t actually advertising, because they really don’t have the potential to bring in business, but they have to be done because of a relationship with a vendor or referral source who asked.
It is likely that the sponsorships and donations column of your marketing budget has become very inflated over recent years when things were better. Now may be a good time to reduce that number. Try slashing it by 1/3, and determine what really needs to be spent and what you can really let slide without a detrimental affect on your practice. It won’t be easy saying no next year to some causes that expect your continued support, but the truth is that these people are also facing cuts in their own budgets. They won’t like it, but they will understand.
Another big chunk is likely directories. I recommend eliminating everything except any top-notch practice area-specific sites that send you business. Don’t waste your time or money on any of the transient sites that pop up regularly. These might actually be perceived as link farms and cause your site to be blacklisted by search engines.
Your entertainment budget is also likely to be a significant chunk if your practice depends upon social networking. You can scale this back however by buying a half season of baseball tickets, inviting clients to lunches instead of dinners and resisting the urge to buy the whole bar a round of drinks.
Your advertising column should already be one of the leanest in your budget, as actual physical ads in magazines and the like are one of the least effective professional services marketing tactics that you can use. If this is as lean as I expect it is, there won’t be much room to cut here.
Your internet marketing column is likely to be where you’re getting the biggest bang for your buck. This includes your website, blog, any web-based social networking associated costs and search engine keyword buys. If you’re properly utilizing these tactics, the pay-off should be so significant that you wouldn’t dream of reducing spending here. If you’re not seeing a return, we need to talk. CPilch@GrowMyCo.com
Your gifts column may be reduced by scaling back the dollar amounts on each gift. It is possible to find items with high perceived value that don’t cost an arm and a leg. Things such as memorial contributions may also be scaled back to an amount that is acceptable coming from your firm.
Your promotional items inventory can be scaled back by choosing less expensive give-away items. I’m always amazed how many professional service firms spend unnecessary money on expensive and redundant items that they received as samples in the mail rather than working with a good promotional specialties representative who knows all the best sources for the items that your clients perceived to have long-term value.
And last, but not least, regarding sales promotional materials, I must ask, “Do you really need that brochure of yours?” If you’re mostly giving it to people in the office, that’s a pretty big waste of money. They’re already clients and don’t need to be sold. It’s entirely possible that you can almost eliminate this column in your budget. Copies of your published articles are much more effective in establishing your credibility, and they only cost ink or toner and good quality stock to print them in the office.
I recommend the above cost-cutting strategies even if your firm is level-finding your 2009 marketing budget. I would then take the saved funds and reinvest them back into your internet budget in a new website or enhancements to your current one. It is likely that your website is 5 or more years old and looks dated. A fresh new look can significantly enhance a potential client’s perception, and enhancements to a user interface can make posting fresh content a breeze for someone who doesn’t want to learn complicated web design software.
I’ve hit upon the basics above, but each firm is different. Only you can make judgments about what is best for your company. Good luck.
by: Christine Pilch
Image Credit: Microsoft