Digital marketing as a business approach is getting more popular every day. Business leaders arealso getting more and more farmiliar with digital marketing, at least to some extent. The leaders could however make more informed decisions by understanding digital marketing better.
For most that use it, digital marketing often means no more than few numbers. Business leaders look at digital marketing as cost and revenue, often only as a cost.
Of course digital marketing agencies, that provide digital marketing services to this kind of mindset leaders are not too bothered by it. But business do lost opportunities, founds, sales, … by sticking to this approach.
Opportunities are lost because digital marketing provides and generates data — information that is valuable and could make meaningful impact on leaders and their decisions and point-of-views — .
Founds are lost because they are not invested where they should be. Understanding a customer journey, business leaders would make more effort when customers are most interested. That is after first click (or first interaction with business) and before the purchase. Business that have a better approach and relationship with customers that are yet to make a decision, win the sales in much higher percentage.
Sales is lost, when the wrong products are bought (by a company), advertised and sold. With trends in searches, competiotion levels and conversion rates, companies can very clearly recognized which products could be sold at lower costs. This is how digital marketing can help business leaders steer their companies. It tells almost everyithing one should know. At what price different products are sold, how fast, at which level is the customer satisfaction the highest, …
By pushing same old products again and again businesses are surely losing opportunities.
Digital marketing has thus proved to be an extremely effective way to attract new customers and increase sales, with many companies, as well as with companies that say, “it does not work”.
How can one and the same way work for one company, but not the other one? It seems that the difference in how digital marketing is profitable is not so much dependent on the company’s branch or story, but on the approach of the leading. With your activities, digital marketing agencies can do better work and, as their employees, lead them in the right direction. This does not mean that digital marketing should take place in the same way as the director represents; it only means that some of the investments and steps that the Digital Marketing Agency proposes or presents as options are the leaders who approve and support the leaders, while others do not.
Leaders can completely change the effectiveness of digital marketing and have a strong impact on results, provided they understand it well enough. Understanding, however, is not a matter of knowledge of terms, but is based first of all on the understanding of the consumer and his behavior online, on the understanding of the purchasing process, that is, how a purchase is made at all. It is also important that digital digital marketing enters real expectations and the agency with the right questions …
How to understand a consumer
Why should you understand the consumer at all?
Digital marketing is based on web analytics, on the study of user steps and performance measurement. The more we understand what is happening, the better we can use it.
If they were based on consumer behavior, the first results from digital marketing would be expected in half a year.
The behavior of the consumer on the web is predictable and has its own legality. According to Google studies, the paths to purchasing are two.
From the moment the user receives inspiration and starts exploring a particular product, the average day is 6–12 months. Throughout this time the user collects information and is informed in various ways (review reviews, read articles, opinions, …). More in Why do not you sell online anymore?
The second is that instant decision when the user starts to search for something and buy it right away. Much of this is told by the Google study Micromoments (Micro moments and the way of the consumer), which shows that the use of smartphones is associated with faster decisions and also more spontaneous. When something goes wrong and an immediate reaction is needed.
Why Every Digital Marketing Needs Retargeting (Remarketing)
Remarketing is remarketing. It runs so that ads target users who have visited the company’s website in the past. At home, remarketing is serving ads to past visitors to your site. If someone has already visited a website and left it without having to order or query, it has already been said that the offer is not interested in it, right? It’s not like that. Since users need more time to buy a product, it’s important to keep a constant alert when deciding which product to choose and to which provider, but not everything. During this time the decision-making of a user is difficult for businesses. They need to build a relationship with the user and reach them to trust them more than competition. By providing quality and relevant content and delivering it at the right time to the user, the relationship builds and builds trust. It is that emotional note that can decisively affect the user’s decision at the right time.
What is the ideal approach for digital marketing?
All agencies would say that money for digital marketing should be “enough” and should be taken into account that the results are also outside measurable, making the actions more effective, as the analyst points out. Perhaps such an approach is not worth the most. A company that does not have enough resources for digital marketing will find it difficult to achieve satisfactory results. Such companies are usually too demanding or, they expect too much, depending on the amounts they invest. This necessarily leads to dissatisfaction. The other extreme are companies where honey and milk and money are sprinkled sprinkled around. Also, they usually do not have effective campaigns. It is about the fact that digital marketing does not just require resources and trust to a recognized agency for effective performance. It is imperative that the company is ready to adapt its “offline” processes to digital processes. This covers everything from prices to the way and the sharing of work, the purchase of products, conditions, … For the web, many processes need to be adapted so that the company is more competitive in the digital world. Very important factors that influence the efficiency of digital marketing are:
speed (execution of the order, delivery, performance of the service, …)
responsiveness (on demand, call, question, …)
prices (products or services)
conditions (product warranty, quality, possibility of replacement, conditions that reduce the risk of the buyer, …)
reliability and confidence (how reliable is the company’s appearance? Is it worth the trust?)
These are just a few of the factors that influence how digital marketing works and all of which goes beyond the website and content of ads. Therefore, it is always necessary for companies to adapt as much as possible and to the extent that it makes sense, as they otherwise represent potential poor customers.
Digital marketing is effective in the long run
Digital marketing is effective in the long run, but it can also deliver good results in the short term. The success of digital marketing depends heavily on the level of competition and how active this is. If competitors are investing heavily in digital marketing, then only maintaining the situation in the digital market and thus transporting, it takes a lot of work and resources.
The easiest way to understand it is to look from the CPM (cost per mille) model to the entire digital market. This is the price paid by advertisers for 1000 impressions to users and, according to some experts, is the basis on which the CPC is calculated (cost-per-click). Year-on-year CPM is growing and, for example, on Facebook only in the last 6 months of 2017 grew by 136% (US data: source). The price for the user’s attention is thus always higher. What matters here, however, is that if the competition invests, for example, 100 € per month, then for this money, for example, 20,000 impressions at a price of 5 € / 1000 impressions (CPM = 5 €). A company that invests, for example, 50 € per month gets only 10 000 impressions, which means that it addresses up to half the users, which leads to half the number of users recognizing it. Thus, the company’s market is considerably lower, resulting in fewer results.
One of the reasons why digital marketing is more effective in the long run is the initial investment. This means analyzing, creating and adapting web pages, setting up campaigns … All this costs a bit and this investment is easier to get back over time. Other reasons lie in the effectiveness of digital marketing campaigns that, over time, become more and more effective in analyzing and optimizing. The third most important thing is non-payable traffic. Every good digital marketing also envisages the optimization of websites on Google, referrals from other sites, the increase of user bases (e-mail, Facebook, …). If there are more and more non-payable clicks from Google, more and more unpaid Facebook and Twitter clicks, more and more clicks from email campaigns, then conversions are on the rise and the cost grows in proportion to it.
Digital marketing is only worth the price in the most competitive areas, if non-payable channels are combined with pay-as-you-choose.
How much is it worthwhile to invest in digital marketing?
Digital marketing is very flexible as far as cost is concerned. Facebook advertising, Google advertising, Linkedin advertising, email marketing, search engine optimization and everything else can all be done with a different level of activity and with any budgets that do not fluctuate, but remain within the frames that are pre-defined. On the one hand, it makes sense to invest in the capabilities of the company, as much as it can afford, if we assume that digital marketing campaigns are effective. On the other hand, the issue of ambition is also important. If you want to overtake a competitor, you will not achieve this with a half-lower budget. If you want to earn € 10,000 with digital marketing, invest them in 100,000.
How to measure performance in digital marketing
Digital marketing is measurable. When planning and setting up campaigns, it is first determined what goals we want to achieve and how we will measure the results and evaluate them. When shopping online, actual purchases, actual values, and product quantities, etc. are measured. A traffic source (from where the user came from) is also known for each purchase.
The results vary in terms of traffic sources and can vary greatly from company to company, in the sense that one advertising company can deliver the highest conversion rate for one company, while Facebook is the best for Facebook or organic traffic.
What you need to ask yourself before you start digital marketing
If we ask the wrong questions, then we do not get the right answers. By means of good questions, however, we can recognize ourselves better and act accordingly.
Why should I do business with you?
Each party, before deciding, asks this question. The answer of companies is usually to say that they have better prices, quality, or better customer service, etc. These are all very important things, but nobody answers the question. All this is the basis for you to be at all in business.
All companies have some unique advantages that separate them from others. To find them, we can ask ourselves:
What are we doing, what do we do and is really unique?
Which channels do we use that our competition does not use?
Where are our customers paying more? Where are the margins highest?
Where is the satisfaction of our customers the highest?
To find this value, or create it, if you can not find it or do not have it, the following questions lead to this:
What are the main questions of our customers before they decide to buy?
What would help them to decide without worry?
How can we help them to choose the right thing, the way they will best serve them?
What should we say to discourage customers from making the wrong decisions?
How can we educate customers (about previous issues)?
How can we do this, what assets we have as a company to produce interesting / readable / appealing content that customers will actually accept.
Digital marketing therefore requires a lot more than money from the company. In these times, the digital world is the one that shows the way to companies, shows how to proceed in which direction.