There’s an article out on MarketingSherpa today entitled, “How marketing budgets are changing for successful companies.” In it, they reviewed data from their recently released MarketingSherpa Ecommerce Benchmark Study. Specifically they were looking at a chart reflecting the answer to the question “Are successful companies changing marketing budgets?” From the chart the answer appears to be a resounding yes. There is a strong correlation between companies’ success and those with rising marketing budgets.
But what I find more interesting is when you dig a little deeper into the data. Its not just that the most successful companies are spending more, they’re producing more results across a score of metrics. Companies with the highest success scores outpaced the lower group in generating rising site traffic by almost 900%. And this holds true for revenue growth as well, where the leaders lead the laggards by more than 500%.
And perhaps one of the most interesting data points I saw was the correlation between success and using third party systems for web development. While for companies producing less than $10 million in ecommerce revenue, going it alone appears to be most successful, but for larger companies that strategy quickly becomes the least successful.
The morale of the story; spend more and get help from outside professionals. Sure that’s pretty self-serving coming from a customer experience agency that specializes in building web experiences. But then who can argue with independent data:)