How to choose the best digital marketing agency for your small business

Hiring a digital marketing agency for your small business can be a big decision for your business. Often, you'll take the leap believing that the partner you choose to work with will meet your expectations and investments. What should I do to make the right decisions?

To answer this question, it's important to note that the marketing needs of one company are often very different from those of others. For example, one company might need a large team to do large amounts of work quickly, while another company wants a more personalized boutique experience.

Whatever your needs, the assessment process can take a few steps to help you find the right partner for your business. Below, we'll show you how to make your partnership with your business's marketing agency as beneficial as possible.

Marketing budget calculation

The first step in choosing a digital marketing agency is figuring out your budget. Just as every small business has different needs, almost every business has a different budget.
Looking at benchmarks, companies spend an average of 13% of their revenue on marketing. B2B product companies spend around 10% of their revenue on marketing, while B2B service companies tend to spend 15% on marketing. Additionally, the US Small Business Administration recommends allocating 7% to 8% as a baseline for small businesses.

When considering marketing agency options, ask how they work well with your budget. For example, can you stay within that range and still provide the quality solutions you need? There are many benefits to marketing agencies, but if you're on a tight budget, you might want to consider freelancers instead.

Once you understand your budget, there are a few more questions to consider to find what works best for your business.

Questions to consider when evaluating an agency

Every digital marketing agency is slightly different and has different strengths, weaknesses, and values. Beyond obvious questions about skills, experience, and budget, there are a few things to keep in mind when evaluating suitability.

1. Do they have experience working for small businesses like mine?

Most digital marketing agencies have experience dealing with specific types of businesses. Agencies that can achieve significant success with one type of business may not be as successful in another. If you don't have experience working for a company like yours, that experience might not support your growth goals.

2. Will the agency adapt to my business or will they force me to adapt to their model?

Most agencies have models they believe in. The challenge is that many agencies are too caught up in models to back down in an attempt to customize their approach to business. If you feel like an agency is treating your business like a square peg and treating that model like a round hole, you might be tempted to look for other methods.

A good marketing agency first takes the time to learn and understand your business, then tailor its strategy to your needs.

3. Do I interact with the same people almost every day, or do I go back and forth between different people all the time?

It can be frustrating when you're stuck in a “whack-a-mole” game with an agency team. When you need help, you interact between 5 different people, and no one is deeply invested in or understanding your business.
Instead, you might want to look for an agency that can secure a dedicated point of contact to act like a fractional marketing director. This strategist and leader will be immersed in your business rather than simply acting as an account manager or disorganized team of individuals.

4. Are they useful throughout the research process?

If the sole purpose is sales and not support, it may be an indication that the experience of working with them is too transactional. People interested in building a long-term partnership will be willing to provide helpful tips and actionable advice throughout the process of calming each other down.

5. How will they approach my business and work?

It's important to understand their approach and process, especially in the early stages. There are plenty of businesses that can do SEO, social media, and email marketing, but successful companies take a strong approach to understanding their business and customers right from the start.

The reason why so many agency partnerships fail is that agencies quickly got into action without taking the time to properly learn and plan. Therefore, it is important not only to understand the responsibilities of those responsible for execution, but also to understand how they work collaboratively to create plans when making plans to ensure successful execution.

As you develop a shortlist for a digital marketing agency, these questions will help you confidently assess your suitability. These questions do not replace important questions about budget, skills, and experience, but are meant to supplement them.

Consider a fractional marketing department.

If you're uneasy about the disadvantages of digital marketing agencies, there might be another approach that works for your business. A unique approach to this agency model is the fractional marketing department.

You'll partner with experienced strategists to learn the ins and outs of the business, and build and oversee marketing strategies based on your needs. Marketing specialists then wield their skills and execute strategies at a high level behind the scenes. While getting all of the team's expertise, we have a unique level of dedication and commitment not found in typical agencies.

The best digital marketing solution for your business

1 in 4 small to medium businesses answered that they have partnered with a marketing agency. In other words, there's a good chance one of your competitors is already seeking outside marketing help. However, with so many businesses seeking this kind of help, the options available are almost overwhelming.

Finding the right team for your business can take hours of research, shortlisting candidates, and interviews. But with the right approach and questions, you can save valuable time and increase your chances of finding the right people.

The first step in finding the best option for your small business is deciding on a budget. This helps you narrow down what you're looking for from a marketing perspective and how you want to grow your business. You can then use the 5 questions above to narrow down your search to the agencies you're most interested in.

If you're struggling to find the right small business marketing agency for you, don't forget that there are other options. In a fractional marketing department, with the dedication and commitment of internal departments, you can enjoy the benefits of an agency, such as a team and expertise in multiple fields.

Want to learn more about how the fractional marketing department can help your business? Contact our team today to find out how we can help you grow.