The Digitalization of Marketing
Marketing has changed.
Historically, the main responsibilities of marketing were under the bundle called “air cover”. This meant that marketing needs to take care of the advertising, branding and PR activities.
What about sales?
Marketing people weren’t invited to sales meeting. This was particularly the case with B2B sales, where the strategy was pretty simple - Go out and close a deal.
The main reason why the sales team was so far away from the marketing team is that the marketing guys never gave exact numbers on how many sales they brought.
Tough Sales Guys: “Yesterday I closed 6 deals at a 30$ cost - GAS MONEY! What did you spend on those TV commercials? One-two million? And how many sales did that bring?”
Sad Marketing Guy: “Actually, the revenue jumped 26% yesterday..”
Tough Sales Guys: “ACTUALLY, the company also runs radio advertisements, street billboards, flyers, and recently started giving out coupons. Who are you to say that the money you WASTED has resulted in any purchases at all?”
Sad Marketing Guy:
Luckily for us, times have changed. We now have all the info we need, because in case you didn’t notice, everyone is on the internet.
And remember this:
Anything that has ever happened on the internet is recorded and exists even after you delete it. And yes, this includes your embarrassing 2009 images on Facebook.
What Digital Marketers Work With
I KNOW: That you saw one of my Instagram ads on your mobile while you were on a vacation in Indonesia. And once you got back home, you saw a different ad on your computer and this time you decided to click on it. You stayed 1 minute and 34 seconds on my website and suddenly you left without purchasing anything.
Since you have stayed this long on the website, I presume that you were intrigued by my products. If I offer you some kind of discount, you’ll most likely buy from me.
This is where I create different ads (with that special discount), that you will see 7 times per day almost everywhere on the internet. After a week, you give in to the temptation and decide to use the discount.
YES, this is pretty much the control digital marketers have these days.
Even now, as you’re reading this article, you’re feeding me data. Tomorrow I will probably login in to Google Analytics to see how you got here (Facebook, Instagram, Email, Google). What device you used for reading this, what resolution is your screen, and much more. The fact that I don’t have a way of acquiring any of your personal info makes all this legal (even though the line is pretty thin).
The Buyer’s Journey
I want to point out some interesting facts about the way people research, make decisions and buy products.
- 78% of local-mobile searches result in offline purchases.
- 49% of consumers use mobile phones for shopping.
- By the end of the year, the number of smart speakers is supposed to hit 21.4 million.
- 62 percent of online buyers shop at least once per month.
- 89 percent of buyers agree that they’re more likely to buy products from Amazon than other eCommerce sites.
- This year, over 50% of all searches will be voice and image-based.
Statistics like these help us marketers use the Internet more effectively. However, in order for us to turn the internet into a real-life operating field, we must get a better sense of our targeted customers/targeted market. To achieve just that, proper market research and marketing strategy must be conducted.
But that won’t be enough!
Maybe the market research showed that your niche audience is buying impulsively, usually within the first visit of a website. However, this doesn’t guarantee that the visitors will be comfortable buying on the first look of your website.
Maybe your content would be too complicated for them, or there isn’t enough delivery info. Your price could be a bit above the market standard. Or, your competitors are so well established on the market that there is no way for a new product (without any differentiating factors) to succeed.
This is why you shouldn’t rely too much on market research. Let it be your guide in defining your strategy, but don’t expect to see the same results of the research with regards to your business.
Because usually, market research is based on historical data that can't fully predict the future outcome.
This is why you need the right tools to track and measure users’ behavior and tie that intelligence into marketing and sales processes!
Buyers go through multiple stages. However, the journey can be different for every buyer, depending on the product/service, the industry, their budget or other factors. That’s why you must have a predefined set of goals and tactics for different audience segments at every funnel stage.
There are different interpretations of the awareness stage. Some think of it as a phase where people have their initial contact with a product. Others see it as a phase where the customers are becoming aware of a problem that they need to solve.
Your shoes look a bit worn out, and you need a new pair for the upcoming season? You might turn to Google and search for “trendy shoes in 2020”. In the image below you can see that Search Engine Optimization is pretty much the most important actor in the awareness stage. I didn’t open the link but I’m sure that they are an eCommerce shoe store or they’re affiliate show sellers.
You want to generate traffic that is vaguely interested in what you offer. Provide valuable content and engage with them regularly. Become their go-to place for the thing you offer, and you’ve secured yourself a new customer.
In this stage, you create a dialogue with your prospects. The goal is to help them get through to the next stage, preference, and this is where the true concept of nurturing and interaction really comes in.
The buyer starts to develop product preferences, which may or may not be born out through the sales process. This is about more than buying something. It’s about creating a trusted relationship that will continue during the purchase and loyalty period.
The buyer converts and becomes a new customer. Your job at this stage is to make this a successful transition, helping them get up to speed and reinforcing their choice of your offering. Some buyers will like joining a community of others using your products and services.
Here is something that should be crystal clear;
The chance of selling to a new prospect is between 5-20%. But, the chance of selling to existing customers is between 60-70%.
Most digital marketers focus on conversion rates. Meaning, they try to get more visitors to buy the core offer. Marketers that are new in the digital field put all their efforts in optimizing for conversions. As I said, the goal is to convert as many visits into buyers. And that is a very important segment that definitely deserves your attention.
Overall, the conversion rates are the end result of all marketing efforts.
But sometimes, no matter how much time they spent analyzing and optimizing, they just can’t get the sales high enough.
Why don’t you try another strategy?
Lead Value Optimization (LVO)
Lead Value Optimization is about making every current customer get back to your business and repeat their purchase. This drives value to your funnels by increasing upsell and customer retention.
Here is a 5 step process that’s similar to a standard sales funnel, but with a few important tweaks.
1. Acquire Traffic
First of all, you need to select the best digital marketing channel for your business. What I mean by this is the channel that brings highly relevant traffic to your website. Be it organic, paid or social media marketing channels.
2. Low to No Conversion
3. Retargeting Campaigns
Connect with your previous visitors after they leave your site, whether via email or remarketing campaigns. Utilize the email lists that you have or implement tracking pixels to help increase conversion rates.
4. Lead Nurture
Provide experience or content that makes people come back for more.
5. Added Upsells and Sales
Once you have a customer base that regularly interacts with your website, start implementing LVO techniques.
Lead value optimization techniques:
- Cross-promote your own related stores
- Upsell with offering complementary products with the ones they already bought.
- Upsells intangible items - for example, offer the option to pay extra for next day delivery.
- Cross-promote affiliate stores.
To Sum Up
Digital marketing is not only about learning to utilize the tools that are at your disposal. Digital marketing is about having a different kind of mindset.
It’s the ability to understand people through their internet behavior.
This is something that we, as a digital marketing agency, always try to achieve.
So, if you're looking for an outsourced marketing agency to help you achieve your digital marketing goals, or if you’re a customer in need of support, we are here to help. Please, use this link to contact us!