How D2C Brands should Spend Across The Sales funnel?

The amount of money spent on marketing at different stages of the buyer's journey can change depending on how the D2C company grows and how its objective shift.

Balanced Between Retention & Acquisition

Marketing spending can be balanced between retention and acquisition of customers, as retaining customers is usually much cheaper than trying to acquire new ones.

In Line With The ROI Target For Growth

The budget share will vary depending on the channel, but it's important to keep in mind the bigger picture: The ROI target for sustainable growth.

Based On The Target Audience Persona

The Spend should depend on the target audience. It's important to take the time to understand the right target and where they are, what they subscribe to, and what they want to hear. That helps dictate spending.

As A Percentage Of Annual Revenue

Marketing spending is challenging to define, as it is difficult to standardize across different industries and business models.Having said that, on the service side, a good rule of thumb is 10% to 15% of your company’s annual revenue.

Dependent On The Purpose Of Each Campaign

Unfortunately, there’s no one answer that will apply to everyone here. For campaigns looking to reach a larger audience, it makes sense to spend more on awareness than conversion. For campaigns that are more focused or that come from more established brands, it makes sense to spend more on conversion than awareness.

Shared Between Large-Scale Advertising & 'Hot' Prospects

For a Small firm, about 20% of the spend on large-scale advertising at the top of the funnel and about 80% of the spend on 'hot' prospects at the bottom can be a good strategy.