Activity-based costing for the use of the Local Marketing Platform

Process cost accounting for the use of marketing software using the example of the Local Marketing Platform

Statements about the acquisition costs of the local marketing platform can be made quickly, but the costs of previous marketing processes are more complex and difficult to estimate. Processes with many manual activities in particular make these calculations even more difficult. However, many companies that are about to purchase marketing software ask themselves to what extent this investment will also be financially worthwhile in the future. A process cost calculation can be used to determine how much time and therefore also costs are used for a course of action, allowing you to better compare different marketing management systems.

This white paper is for you if...

• you would like to see a clear presentation of the process costs and how to optimize them.
• you are unsure whether the local marketing platform will be financially worthwhile for your company in the future.
• You want to know approximately how much time and cost you need to plan for the use of marketing software in your company.

Why should you carry out activity-based costing before implementing marketing software?

Performing an activity-based costing before purchasing marketing software, such as the Local Marketing Platform, is crucial in order to make an informed and cost-conscious decision for your company. Activity-based costing enables a detailed analysis of existing marketing processes and their financial impact. This allows you to ensure that the implementation of new software not only meets the needs of the marketing department, but is also economically viable.

An important advantage of activity-based costing is that you can gain a clear overview of the existing marketing processes. By identifying and documenting all steps, resources and costs in the current processes, the marketing department gains a comprehensive overview of its operational tasks. This transparency is crucial for uncovering potential bottlenecks and inefficiencies. In addition, activity-based costing enables the costs associated with existing marketing processes to be accurately recorded.

Another added value is that activity-based costing helps to improve the efficiency of the marketing department. By identifying time-consuming or costly processes, optimization potential can be identified and measures introduced. A more efficient organization of work processes not only leads to cost savings, but also to an increase in productivity and faster implementation of marketing measures. By accurately recording costs in relation to the results achieved, marketing managers can make informed decisions about which activities should be further optimized and whether software can provide support.

Overall, activity-based costing helps to ensure that the acquisition of marketing software is not only well thought out on a technological level, but also on a financial level. This leads to an effective use of resources, improved efficiency of the marketing department and ultimately to sustainable success of the marketing strategies.