Budgeting the Customer Life Cycle

A few rules of thumb as you create your marketing and sales budgets. Not only do you have to take into account what you’re selling, you also have to consider the stage of the prospect/customer.

Customer Acquisition
Marketing generates inquiries & qualifies, passes leads to sales for conversion
– Budget: 60% direct marketing, 40% sales

Customer Growth & Acquisition
Here’s where you up-sell, cross-sell, and secure customer relationships
– Budget: 30% direct marketing, 70% sales

Customer Loyalty
Sales now moves on to new opportunities; it’s mostly in the hands of marketing and customer service. Did you know the typical customer base decays by 10% per year
– Budget: 60% direct marketing, 40% sales

Customer Reactivation
Contacts change at customer accounts, but it’s still easier to sell to existing customers than find and sell to new ones.
– Budget: 90% direct marketing, 10% sales

Leave a Reply