Where’d All The Money Go?
It’s April and that means the sun if finally shining, the pollen is getting worse by the day, and it is tax season! (At least one out of the three was positive!) Have you ever received your W2 from your employer and said to yourself, “Where’d my money go?!”
Understanding a tax return can be difficult, but it’s important. Tax rates compare how you measure up to others. Much like benchmarking does with businesses. Benchmarking is used to compare one's business processes and performance metrics to the industry’s bests. And many business owners find themselves asking that same question, “Where’d the money go?" when it comes to their budget, which can be very deadly.
Benchmarking the Dollars
It’s important to allocate spending accordingly throughout the year so that time doesn’t get away from you, and by the start of Q4, it’s depleted. eMarketer gives a comparable benchmark on this year’s allocation of services from marketing budgets for B2B and B2C marketers.
This study, compiled from several other studies, concludes that in Q1 2015, “budgets were expected to increase 4.4%” of B2B service marketers worldwide.
Benchmarking needs to include data from a lengthy amount of time - a year, for instance. Year-over-year results will conclude in the most accurate measurement of marketing spending.
Improve Your Profitability
This increase emphasizes the shift in the growing importance of allocating marketing investment dollars. Of that 4.4%, the benchmark outlines the spending across platforms. Besides employees, which take up 42%, the majority of the budget will go to tactical resources like marketing campaigns and programs. Companies are increasing their tactical marketing spending because the profitability is increasing.
Benchmarking is a tool that assists companies to qualify if its dollars are going in the right place. Allocating your dollars toward the right deductions throughout the year can be difficult. Much like allocating your marketing dollars to the right places to get the right return on investment.
Let’s face it, ultimately, profitability is about our own personal W2s. Sometimes we forget to benchmark ourselves and ask, “What have I done this year to increase my company’s profitability to therefore increase mine?”