We want to scale our budgets and set ourselves up for success!🚀
We do so by setting up a full-funnel strategy and allocating our budgets where we need them most.
Our funnel strategy is segmented by Acquisition, Re-targeting, and Retention. Why do we segment our audiences this way? Each audience is entirely different and requires specific attention. ARR segmentation is a known online marketing strategy that has been proven to work!
The Madgicx audiences are divided as follows:
Acquisition Prospecting: People who don't know your brand at all, you are trying to reach them for the first time!
Acquisition Re-engagement : People who have had a 2nd or 3rd touch with your brand but didn't reach your site.
(For further information about the ARR strategy hit this article link)
Retargeting: People who have been to your site and engaged with your brand.
Retention: Your customers! People who have bought from you before.
This is an overview as to how to divide your budget, however, it is important to analyze the account yourself as well. Thanks to our ARR Dashboard it's really easy to get an overall picture of your account and gain key insights.
Learn more about the Dashboard here🤗
By checking your dashboard, you can see your ROAS performance across Acquisition Prospecting (engaging with cold traffic) or Acquisition Re-engagement (the second touch with your audience). Allowing you to shift your budgets accordingly.
As a general rule, we recommend dividing the majority of your budget (70-80%) to Acquisition, since this is where we find new customers and drive them to our site. Our goal is to reach as many new consumers as possible, who don't know about us and retarget those who bite and turn them into sales (retention).
In order to build a full funnel strategy, we suggest allocating about 20% of your budget to both Acquisition Re-engagement and Retargeting. And finally, the smallest audience percentage is found in Retention, which is effectively the bottom of the funnel as it's your smallest audience and represents your current customers. Therefore we allocate the least budget, approximately 3% to Retention.