Marketing in Today's Connected Economy, Blog

Cost Savings of Marketing Automation Management Versus ROI

[fa icon="calendar"] 6/11/15 7:30 AM / by Rain Man


INTRODUCTION:

Marketing Automation Management is quickly becoming a clear avenue for many companies and corporations who are looking to reduce their personnel costs, while improving their return on investment. We're going to look at a couple of reasons this is making sense for other companies, and could make sense for your business.


Personnel Costs:

The average median income for a marketing manager is $133,700, along with an average marketing analyst median income of $67,780, meaning a marketing department of 2 (1 of each) will carry a corporate cost burden of $201,480; leaving an overall cost burden with benefits of nearly $261,924. This is a huge expense for any small corporation, and many companies having marketing teams of 3-7, increasing the cost of marketing initiative to over $500,000, before outbound marketing investment.

 

return_on_investment

 

If we take into a consideration of 6% marketing spend on total annual revenue or EBITDA (Earnings Before Interest, Taxation, and Depreciation of Assets) of a $50 million company, their marketing spend would be $3,000,000, along with carrying a marketing personnel budget of 10% of marketing spend, or $300,000.

By outsourcing their marketing automation management to a firm like Kpahi , they would look to reduce their spend by over $200,000 annually.  Additionally, a company would allow themselves a reduction in liability for their marketing efforts.



CONCLUSION:

By outsourcing your inbound marketing, your process fluidity, metrics, and analytics can be better controlled; along with reducing overhead and maximizing return on investment. If you haven't considered outsourcing your marketing efforts, now may be the best time to rethink your position.



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Topics: Inbound Marketing

Rain Man

Written by Rain Man

Brad aka "Rain Man" is one of the co-founders of Kpahi.com. An expert in the field of everything surrounding digital marketing, Rain Man's blogs are a great resource for industry trends, marketing advice, and overall process fluidity.