Building a marketing budget that delivers results remains a top challenge for eCommerce businesses. DMSMatrix, a leader in digital strategy research, has released actionable insights to help companies allocate funds wisely, prioritize high-return tactics, and sustain long-term growth. The guidance emphasizes simplicity, adaptability, and focusing on strategies with measurable outcomes.
Start with Proven Performers: Email Marketing
According to DMSMatrix, email marketing continues to outperform other channels, generating an average return of 36% for every 1% spent. This makes it a critical component of any budget. Businesses are advised to allocate a significant portion of funds here, using segmented campaigns and personalized content to drive repeat purchases. “Email’s direct reach and low cost make it a reliable foundation,” the report notes.
To further boost results, the report recommends integrating AI tools, such as automated product recommendations. These systems analyze customer behavior to suggest relevant items, increasing average order values. While newer technologies require initial investment, DMSMatrix highlights that businesses using AI see up to 35% higher conversion rates compared to static strategies.
Reinvest to Sustain Growth
Companies that consistently allocate a portion of their budget to testing and refining strategies often achieve stronger returns over time. For example, directing 10-15% of funds toward improving website speed, mobile optimization, or checkout processes can reduce cart abandonment and lift sales. Higher revenue then fuels further investments in marketing upgrades, creating a cycle of growth. “The goal is to avoid stagnation,” the report states. “Small, ongoing improvements compound into significant gains.”
Stay Flexible and Cut Waste
DMSMatrix stresses that rigid budgets lead to missed opportunities. Instead, businesses should monitor campaign performance monthly and shift funds toward top-performing channels. For instance, if social media ads underperform while search ads exceed targets, reallocating budgets mid-quarter can maximize returns. Automation tools play a key role here, streamlining repetitive tasks like bid adjustments or email scheduling. This reduces labor costs while improving ad targeting and customer outreach.
Key Takeaways for Businesses
The report concludes with three core principles:
- Focus on high-ROI basics first, like email, before experimenting with newer tools.
- Reinvest a fixed percentage of profits into incremental upgrades to maintain momentum.
- Review and adjust budgets frequently to eliminate underperforming tactics.