How to Determine Your Budget for Marketing Automation

Determining a budget for a new segment of your business can be tough, if not almost impossible. There are many unknowns when stepping into areas or processes in which you have no direct experience, and this can lead to a feeling of bewilderment. The first step in creating any budget is to outline your goals and objectives. Why do you want to automate your marketing? Are you even in a place where marketing automation makes sense for your business? How soon will you be ready to begin? When would you like the process completely in place (be realistic)? Do you have sufficient staff currently to handle the process, or will you have to hire and train additional staff? These and other questions must be answered prior to creating an automation budget.

The important thing, when setting up a budget, is to avoid the tendency to overspend. On the other hand, you should not cut corners and spend too little  you have to get a feel for what is the appropriate initial investment, as well as ongoing, monthly and annual, expenses.

Your initial investment into marketing automation may or may not include the services of a consultant. If you decide to consult with a professional, they may draw up a budget for you based on your objectives. However, if you decide not to enlist a consultant, you’ll have to determine your budget on your own. Major components of a marketing automation budget may be software licenses, training for existing staff, and additional staff and training, among other things.

If you find that you don’t have quite the budget necessary to implement marketing automation, there are ways to still get closer to full automation without actually spending the big money that most full marketing automation solutions require.

Marketing automation falls roughly into three categories: Sales Force Automation, Drip Marketing Automation, and Content Marketing Automation. For each of these categories, there are several free and inexpensive solutions, aimed at the smaller business owner.

Even if you opt to go the free/inexpensive route, you will surely need to hire one or more individuals to implement and maintain this new department. Even though you already have a Marketing Department, marketing automation is a separate function (arguably within Marketing, yes) that should not be lumped together with Marketing. Each area has subtle, but distinct, differences in their objectives and operations.

The need for a comprehensive and detailed budget is crucial, especially if you decide to take the free or inexpensive route. When your overall business financial picture is relatively small, errors in projection or budgeting can be devastating.