Choosing Marketing Channels and Setting a Budget
A practical way to decide where money goes, based on how your customers buy and what a customer is worth.
On This Page
Start with What a Customer Is Worth
Before choosing channels, work out what a new customer is worth to you over a year. A gym member paying $150 a month who stays nine months is worth about $1,350. A dental implant patient may be worth several thousand dollars. That number sets how much you can afford to spend to win one customer, and it rules out channels that can't deliver at that cost.
Change the numbers to match your business. The calculator works out what a lead and a customer can cost you and the monthly budget that buys the customers you want.
Estimates only. Use your own margin and close rate, and treat the first two months as a test that sharpens these numbers.
Match Channels to Buying Behavior
Ask how your customers find businesses like yours today. If they search when they have a need, Google search ads and local SEO come first. If they discover products by browsing, Meta and TikTok ads fit. If they ask friends and read reviews, your Google Business Profile and review flow matter most. If you sell to other businesses, LinkedIn, search and direct outreach usually beat consumer platforms.
Budget by Stage
If you run a local business, a reasonable starting split is two thirds on the channel closest to a sale and one third on building visibility, such as local SEO and content. Online stores often reverse this early on, spending most of the budget on paid social creative while search and email build. Review the split every quarter against cost per customer.
Test Before You Commit
Run a channel for at least four to six weeks with enough spend to produce results you can read before you judge it. A $200 test rarely tells you anything. Keep notes on what you changed and when, so you can tell the difference between a channel that doesn't work and a campaign that was set up poorly.
Putting This to Work
Budgets aren't permanent. The point of the first three months is to learn what a customer costs in each channel, then move money toward the channels that win.
In Practice
A medspa with a $4,000 monthly budget and a $900 average first visit puts $2,500 into Google and Meta ads for consultations, $1,000 into local SEO and reviews and $500 into email reminders for existing clients. After one quarter, consultations cost $140 each and the email program brings back clients at almost no cost.
Sources
- Think with Google, marketing strategies www.thinkwithgoogle.com
- Harvard Business Review, marketing hbr.org
- Quarterly retail e-commerce sales, U.S. Census Bureau www.census.gov
Have Our Team Handle This
Our team runs this every day. Request a free proposal and we will plan it for your business, or see the Our service.