In Part 1 of this series we briefly looked at the different areas that should be taken into account when starting to plan your budget. It’s very important that you take stock of what you have and what you need. In this piece we look at them in detail.
1. Cost of Inbound Marketing
In most instances if not all, property marketing is different to that of most “large brands” whereas general overall ‘channel planning’ is less critical.
Quite simply, you go where the buyers are to begin with and work your way up the funnel. Think of it as reverse funnel marketing.
To calculate cost, you will need to potentially understand the financial effect of the main entities such as listings on REA, Domain and Apartment Developments.
In addition to this, you could count on a spend in digital display, Search, Re-Marketing and discovery content. Cost types here could vary from CPM, CPC and even Cost Per Acquisition if buying on a cost per lead basis.
2. Creative Performance Data
There is also great insight to be gleaned from creative performance data. This area is somewhat of a ‘one-percenter’ and something that is constantly overlooked. Little details like this can go a long way to planning perfection.
Understanding the estimated CTR of creative will allow you to gauge what the estimated CPC will be when buying on a CPM. This can be critical in picking out the potential high performers.
3. Estimated Cost Per Lead (CPL)
Estimated Cost Per Lead is easily the most important metric you can have when budget planning for success. It’s pretty much what everything boils down too. The apartment industry especially has seen a steady growth in CPL in recent years driven mostly by stock growth in the market place and tougher market conditions.
You can understand your estimated CPL by calculating CPM > CPC > CTR and then click to conversion. Doing it this way, will go a long way to understanding projected CPL and the rest falls into place.
An example here could be:
Quantity To Sell = 100
Leads Needed Per Sale = 30
Total Leads Needed = 3,000
Leads (3,000) divided by budget ($500k) = Goal CPL of $166.00
4. Website Performance
Whilst estimated CPL is certainly the most important piece of data you want to use when budgeting for success, website performance can be a killer. You must always ensure your click to conversion ratio is at least 5-10% so you’re converting that traffic into leads! If you’re not, you are either talking to the wrong audience thus acquiring the wrong traffic and ultimately wasting your money or your on-site experience is poor.
5. Sales Team Performance
As every sales person will tell you “we need quality over quantity” And it’s no truer than in property marketing. It’s important to heavy up on suppliers you know will give you quality enquiry, whilst most likely at a higher price than what you need but with more chance of ultimate sales success.
Then you use the more affordable suppliers for “CPL balance”. But there is also one other thing you need to know. And that is estimated lead to sales conversion ratios. As stated in point 3.
6. Organic Enquiry
Often never spoken about when planning is the estimated percentage of projected organic enquiry. Whilst not guaranteed, it’s always important to add this into calculations.
Most likely it will come from on-site signage or word of mouth. If 25% of your enquiry comes from organic, that means 25% less enquiries you need to budget for.
But it’s very important you know where the organic is coming from because if something changes and it’s no longer bringing in that enquiry you could be in trouble.