Marketing Budget: Three Tactics to Help You Better Allocate Marketing Costs

1. “If you mail to both your customer file and rented lists, separate the costs by list, so list rental is not charged to customer costs,” writes Hennerberg.

2. Evaluate the performance of small test quantities based on projected rollout costs. Writes Hennerberg, “If you’re testing a quantity of 50,000 and expect to mail it to 500,000 if it’s successful, base your evaluation of the program on the cost to produce 500,000, not 50,000. If you don’t use the rollout cost, you’ll bias your findings and your analysis will lead you to the wrong conclusion.”