Pew Research Center has found that internet use by adults has increased at least 5% over the past three years according to research. Businesses are now more aware of the potential that the digital world has to offer and are embracing them. Online marketing is a key factor in the shopping decisions made by consumers.
No matter what type of digital marketing an organization uses, the ultimate goal of marketing is to reach the right audience at the right time and place. The internet is the best place to do this.
Let’s start with the basics before we get into the 9 benefits digital marketing can bring to your business.
What’s Digital Marketing?
Digital marketing is, in a nutshell: marketing via an electronic device or the Internet. Another term for internet marketing is digital marketing.
Digital marketing is a popular method of reaching large numbers of people. It has been adopted by hundreds of thousands of companies.
Businesses must optimize digital channels to reach potential customers as people spend more time online.
There are many digital marketing strategies, including:
- Search engine optimization (SEO).
- Paid search
- Display advertising
- Marketing via social media
- Content marketing
- Email marketing
- Marketing to Influencers
- Affiliate marketing
Businesses reached their target audience through traditional channels such as television, radio, magazines and direct mail. Businesses are now trying to reach potential customers through digital channels, since people spend more time online. Marketers must go where people are.
You should understand the advantages of digital marketing to diversify your marketing strategy and make the switch.
Let’s now dive into the top nine benefits of digital marketing.
1. Frequent communications can increase customer loyalty
It costs more to convert and attract new customers than to keep existing customers. It can be hard to build customer loyalty, but it is worth the effort.
While it is great to close a sale with customers, it is even more important to keep those customers. Customers who are retained will make more sales and recommend your brand to others. Recurrent customers make up 40% of all online sales revenue in the United States. They also account for 8% of website visitors. You must keep in touch with customers to retain them. Digital marketing makes this easier than ever. These are some of the most effective strategies:
- Personalized email offers: By learning more about your customers, personalized emails can be sent to them with offers such as seasonal discounts codes for similar products or access to new product launches. This will not only make the customer feel valued but also increase repeat sales.
- Encourage customers and friends to follow you on social media. You’ll be able to reach them on a daily basis as they scroll through their social networks. You can keep them interested with relevant, useful content, or content that inspires and delights. They will be more likely to purchase from you again if they ever need your product or service again.
Sephora’s Beauty Insider & VIB Programs are a great example of a company who is committed to connecting with customers through a points-based loyalty programme that uses both digital and offline channels.
Enhance your marketing strategy by using digital and offline channels to build customer loyalty.
Customers can use their Beauty Insider cards at any purchase, in-store or online. The card also tracks how much money they spend. Customers can redeem Beauty Insider points for every dollar they spend. Online access is available to members who wish to track their points and make purchases with their reward points. Members receive personalized emails that alert them to new products, sales and gifts, as well as reminders about their membership.
2. Engage Customers at All Stages of the Buying Process
The customer journey was not something that many people talked about before digital marketing. This was due to its complexity and inability to be understood. A customer would often visit a physical shop after reading an advertisement in the newspaper or TV, and make a decision to purchase the product or service. Digital marketing allows us to track every customer’s journey, often starting from the moment they are triggered to purchase a product or solution.
It’s not uncommon for consumers to view an advertisement online, compare prices on various websites, then visit a store to test the product or shop online. Apps on mobile devices offer shoppers special coupons, customer service, and comparison tools that enhance our understanding of the buying process. A marketer can track the entire customer’s buying process with digital marketing.
This 5-step process will help you map your buyer journey to ensure success in your marketing efforts.
Understanding the customer journey will help you market effectively to potential clients.
You can now engage with your customers no matter what channel they use to find you business, such as Google search, Facebook ads, Instagram, or display advertisements. This allows you to answer all of their questions and concerns and influence their purchasing decision.
3. The Right Audience
Segmenting audiences is easier than ever thanks to many digital marketing platforms that allow you to target specific audiences. Online tools allow us to track the online activities of individuals and their demographic information. This data can be used by digital marketers to suggest products and services that may interest them. A brand may target a visitor by targeting them with related ads after they click on its display ad on social media, or via a search engine. It creates positive reinforcement, and allows visitors to shop easier and more enjoyable if the content they receive is based on their online behavior and interests.
Targeting your audience with content or offers can be done based on their stage in the buying process. Email marketing, for example, can be used to nurture leads until they are ready to buy. Maybe they signed up for your blog and opened your email updates. They visit your service and about me pages after a few months. You know that you should send them an email with a special offer. They click on the offer to submit a request for quotation.
This is possible thanks to sophisticated digital marketing tools. Let me explain: When a user fills in a form online they give their personal information. Cookies are used to track user behavior on web pages. This data is used by digital marketers to analyze different audiences and create the best strategies.
4. Generate a Consistent Lead Pipeline
Marketing is all about creating your “sales funnel”. A sales funnel is a method of generating leads and sales through traffic. This is how you turn traffic into brand advocates. The job of a sales funnel is to distinguish between the window shoppers and the actual buyers. Based on Taboola’s study, it can also improve customer journey.
The sales funnel can be used to generate leads online using digital marketing strategies. It also allows you to provide relevant and useful information and close deals.
A sales funnel designed for online marketing is created to generate leads consistently. An example of this is a betting company that relied on their billboards and physical location to generate walk-in leads before it created an online sales funnel. The company now uses a digital offer to create a consistent stream of leads. A coupon is given to anyone who makes their first deposit or stake. To take advantage of this offer, users must register on the company website. This approach allows the betting company to generate leads in a more predictable and systematic way. The business can also stay in touch with customers through email marketing, as they had to submit their email address to get the offer.
5. Optimize your conversion rates to get better results
Online advertising platforms are cheaper than traditional marketing which can include expensive radio, TV and print ads. Online advertising platforms can help you improve your ad conversion rates more easily than traditional advertising. It can be difficult to track conversions with print ads because everything happens offline. How can you tell if someone read your advertisement in a magazine, then went into the store? How can you optimize your advertisement’s performance if you don’t have the ability to track it?
Digital advertising makes it simple because every interaction can be tracked. Instantly you can see how many people have seen your ad, and what actions they took.
Many online advertising platforms offer some degree of reporting. This allows you to fine tune your ad targeting, copy and design.
6. Accurately Measure All Results
It’s hard to measure the effectiveness of offline marketing campaigns. If you have an ad placed in a newspaper and on billboards simultaneously, it is difficult to know how many people saw the newspaper ad and how many saw the billboard ad. It can be frustrating to know which ad is most effective and which one to invest in.
Digital marketing isn’t plagued by these issues. Digital marketing can actually measure anything worth measuring. Everything, from when an ad is clicked through to when the visitor leaves the site. Everything! It is possible to see how many people saw your ads, how many sales were generated by the ads, and finally, your return-on-investment (ROI). This monitoring and measurement is possible with data analytics software such as Google Analytics and metrics from social networks and ad platforms like Facebook Ads or Google Ads.
It is vital that you choose the most important data, as there are many metrics that can be tracked. These important data are called key performance indicators (KPIs). KPIs are metrics that relate to goals and objectives set out in strategy planning. They are a measure of a business’s effectiveness. Here are some examples of KPIs:
- Cost-per-click (CPC)
- Return on investment (ROI).
- Customer acquisition cost (CAC).
- Customer lifetime value (CLTV)
7. Increase brand credibility
The internet is the best way for any brand to quickly gain trust and maintain it. According to content marketing research, brands that are digitally active have the highest credibility. A company’s content can answer customers’ questions, clarify key concepts, and demonstrate that it understands the market.
A company can gain trust from its customers and industry experts by creating useful and interesting content. It can even be used in the form of a reference that is included in other content by competitors.
How do you determine if your brand is credible? One thing you should look at is the rank of your brand in organic search engine result pages (SERPs). If you rank high on Google, then you are a reference to your market. This will attract more people to your company and increase confidence in the products you create. It’s only natural to trust industry leaders.
Blogs are one way to establish your expertise. Consumers are looking for high-quality content that answers their questions and addresses their problems. Your target market should hear from your subject matter experts. Their insights are highly valued and should be shared. HubSpot reports that companies with blogs generate 67% more leads. It takes people five to seven impressions to recall a brand.
Content marketing is a way for brands to gain credibility, trust and generate leads.
8. More bang for your buck
Many business owners may believe they need to spend a lot to reap the benefits of digital marketing. This is not true. Digital marketing is affordable and can often produce high ROIs. For example, a small business can reach customers quickly and scale up quickly. It is also easier to determine ROI at each stage of the funnel.
Digital marketing is very cost-effective and can often produce high ROIs. However, it can be difficult to know where to measure ROI.
Digital marketing is about creating an online presence. A business can still use digital marketing, even if they don’t have the budget to pay for SEO or PPC advertising. Social media is an affordable digital marketing strategy that doesn’t require much other than your time. Email marketing is also very affordable.
Although you might be reluctant to invest in PPC advertising it is a cost-effective digital marketing strategy. The campaigns can be easily managed so you don’t need to worry about running out of money.
These are the most popular billing models for online advertising:
- Cost per Click (CPC).
- Cost per 1,000 (CPM).
- Cost per lead (CPL)
- Cost per action (CPA)
These billing models only pay the marketer when a customer clicks on, views or completes a sale. Digital marketing is a great way to reap the benefits of it. However, strategic planning is key to maximizing these benefits. You don’t need to spend too much to reach the right audience if you are targeting the right people. Before you spend your hard-earned cash, consider your digital marketing strategy. Who are you trying to reach?
Chief marketing officers (CMOs), are becoming more creative with their marketing budget. Instead of spending money on TV ads, CMOs are choosing to use social media, search and online video channels to run ads at a lower rate.
Start investing in media channels that offer the highest return on your investment.
Consistent publications on a company blog or social media network can help you capture leads and convert them into customers. Depending on the effectiveness of your strategy, you can launch a digital marketing campaign for as low as $10 on Google Ads or Facebook Ads.
It is important to focus your strategy on the right audience, and execute the techniques efficiently in order to generate leads and convert on a limited budget.
9. Level the playing field
Large companies may have large marketing budgets. However, digital marketing offers a level playing ground for all businesses, regardless of their size. While SEO and content marketing require significant investments, they don’t necessarily have to cost a lot of money. Long-tail keywords can be ranked if you create quality content that answers peoples’ questions. Although it may take some time, it is possible.
Big companies can spend a lot of money on digital advertising campaigns. But money is not the only thing that will determine an ad’s rank in the SERP. Before determining an ads rank, both Google Ads (and Bing Ads) evaluate the ads’ relevancy and quality. You can reach the top of the SERP if you have a relevant ad that answers the searchers’ questions.