Have you heard of the 70/20/10 rule in regard to marketing budgets? This approach is not just another theory; it is a tried-and-true formula that many successful companies swear by. So, what is the 70/20/10 formula?
70% for Proven Strategies
This portion is all about the classics, a.k.a. the proven tactics. These are the methods that have stood the test of time, while consistently delivering positive outcomes. By investing the majority of your budget here, you are essentially betting on what has already been proven successful for your company. It ensures steady growth and forms a robust foundation for all your marketing endeavors.
20% for Newer Tactics
This chunk is dedicated to exploring uncharted waters, while trying out fresh and cutting-edge approaches – the innovative strategies. Think of it as your playground for creativity. By embracing new ideas and tactics, you are not only staying ahead of the competition but also potentially uncovering methods that yield significant rewards. It is like adding a sprinkle of excitement to your marketing mix.
10% for Experimenting
Taking calculated risks in marketing can result in significant gains. Allocating 10% of the budget to untried strategies allows businesses to embark on bold campaigns. Although riskier, these endeavors offer the potential for substantial profits. Venturing into unexplored avenues enables companies to discover hidden opportunities and achieve breakthroughs in their marketing strategies.
Remember, while the 70/20/10 rule provides a fantastic framework, it is not set in stone. Businesses are encouraged to adjust these percentages based on their unique circumstances, goals, market dynamics, and risk tolerance. The key lies in continual evaluation and adaptation, ensuring your marketing strategies stay fresh, effective, and aligned with your business objectives.
Cate Bender, the author, is Project Coordinator of Marketing Keys