How Much Should You Spend on a Marketing Campaign? Budgeting Tips for Salon Owners

As a salon owner, you know that marketing is essential for attracting new clients and keeping your appointment book full. But with so many options—from traditional advertising to digital marketing—how do you choose the right one? And more importantly, how much should you spend?

In this post, we’ll dive into how to budget for marketing, define what success looks like through Return on Investment (ROI), and compare different marketing methods. By the end, you’ll know how to use your marketing budget wisely and why SMS marketing, combined with the right salon software, can be your most effective tool.

Defining Marketing Success: Return on Investment (ROI)

Understanding how to measure marketing success is key to making smart decisions. At the heart of it all is Return on Investment (ROI)—a simple but powerful way to measure how well your marketing pounds are working for you.

Understanding ROI in Marketing

Simply put, ROI shows how much profit you’re getting from your marketing investment. For example, if you spend $100 on a campaign and bring in $300 in new business, you can calculate your ROI like this:

ROI = (Revenue – Cost) / Cost x 100

So, for the example above:

ROI = ($300 – $100) / $100 x 100 = 200%

This means you earned $2 for every $1 spent—a fantastic return! Tracking ROI helps you know which strategies are delivering the best results so you can focus on what works and avoid wasting money on what doesn’t.

Setting Realistic ROI Goals for Your Salon

When setting ROI goals for your salon, it’s important to be realistic. Your expectations will depend on factors like salon size, target audience, and most importantly, your marketing experience.

1. Beginner

If you’re just getting started with marketing, expect a learning curve. Test different strategies to find out what works best for your audience. An ROI of 100%-150% is a reasonable target for beginners, as you’ll be building awareness and refining your efforts.

2. Intermediate

If you’ve run a few campaigns already, you’ll have data to guide your decisions. At this stage, you should focus on optimising your spend and fine-tuning your strategy. Aim for an ROI of 150%-250% as you improve targeting and messaging.

3. Advanced

Salons with an established marketing strategy and experience in multiple channels can expect higher returns. Advanced marketers should aim for an ROI of 250%-400%, benefiting from years of refinement and the ability to spend more strategically.

Comparing Common Marketing Methods for Salons

As a salon owner, you have a range of marketing options, each affecting your ROI differently. Let’s take a look at some common options.

Traditional Marketing: Newspaper Ads and Leaflets

Newspaper ads and leaflets are traditional marketing methods that have been used for decades. While they can be good for raising local awareness, tracking their ROI is very difficult. You can’t be sure who saw your ad or whether it led to an appointment, making it hard to measure their effectiveness.

Digital Marketing: Facebook and Google Ads

Facebook and Google ads allow you to target specific audiences based on location, interests, and behavior. These ads offer better tracking by showing who clicked on your ad and engaged with your content. However, digital ads can get expensive—especially in competitive markets, where you might pay up to $10 per click.

Beyond the cost, digital ads can also feel like finding a needle in a haystack. Pinpointing exactly who to target and how to engage them can be challenging, especially if you’ve never connected with that audience before. Without established engagement, your ads may struggle to get noticed or spark interest.

Pros and Cons of Each Approach

When choosing between traditional and digital marketing, consider your salon’s needs:

• Traditional marketing is great for building local awareness, but it’s hard to track results.
• Digital marketing allows precise targeting and easier tracking, but it can be costly and difficult to effectively engage a new audience.

Finding the right balance between these methods will help you achieve better results.

SMS Marketing: The Hero for Salon Success

Among all the options, SMS marketing stands out as the most effective and affordable method for salons. Here’s why:

With SMS marketing, you’re not throwing money at ads and hoping for the best. You’re sending targeted, timely messages that lead to action—whether that’s booking an appointment or taking advantage of a special offer.

A Hack to Level You Up to Advanced Campaign Status

If you’re a beginner or intermediate marketer, you might be wondering how to fast-track your way to advanced campaign status. The secret? SMS marketing.

While SMS does have a cost, it’s one of the most affordable high-return methods out there. On Simple Salon’s most popular plan, SMS messages cost just 10 cents each. So, if you have 5,000 clients with mobile numbers and want to run a full campaign, it would cost $500.

The results? Salons that have run their first SMS campaign have seen an average 300% ROI within two weeks. That means a $500 investment can bring in $1,500 in revenue, making SMS marketing a quick and solid investment.

By integrating SMS campaigns with your salon software, you can move from beginner to advanced, seeing returns that seasoned marketers achieve—without spending years refining your strategy.

Bonus: A Special Opportunity to Take Your Marketing to the Next Level

If you feel like your salon is ready for a serious boost in business and revenue, we’ve got something special in the works—an exclusive opportunity to take your SMS marketing to the next level. Want to be one of the first to know? Book a call with us today, and you might get early access to this exciting offer before anyone else.