Hi Everyone, Today we’re going to talk about Digital Marketing: What business leaders must know in 2019. So, as you may already know that Digital marketing is used by more and more companies, and to some extent, it is known and understood by all business leaders. Even so, executives can make more informed decisions by looking more closely at digital marketing.
For most people, digital marketing often means only two numbers, so it is viewed only in terms of cost and traffic, and often only in terms of cost. While this does not bother digital marketing agencies too much, businesses are losing out. First of all, they are losing opportunities, as digital marketing at various stages contains a wealth of data to help leaders make short and long-term moves. They then lose out on investing less or less in digital marketing. They also lose out on the fact that they do not lead companies in the direction of digitization due to misunderstanding and instead enter into it with restraint.
For many businesses, digital marketing has proven to be an extremely effective way of attracting new customers and boosting sales, but there are also companies where digital marketing is said to be “failing”. How can one and the same way work for one company and not for another? It seems that the difference in how profitable digital marketing is depends not so much on the industry or the story of the company, but on the approach of the executives. With their activities, they can help digital marketing agencies do a better job and guide them, like their employees, in the right direction. This is not to say that digital marketing is the way the director imagines it, it is just that some of the investments and steps that the digital marketing agency proposes or presents as options are endorsed and endorsed by the leader, while others are 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 knowing the concepts but is based first on understanding the consumer and his behavior on the web, on understanding the purchasing process, that is, how the purchase is made. It is also important for a company to enter digital marketing with real expectations and an agency with the right questions…
A business leader must know how to understand the consumer
Why would you even understand the consumer?
Digital marketing is based on web analytics, examining user steps and measuring performance. The more we understand what’s going on, the better we can use it.
Based on consumer behavior, the first results would be expected in half a year from digital marketing.
Consumer behavior online is predictable and has its own laws. According to Google studies, there are two ways to buy.
From the moment the user gets inspired and starts exploring a particular product until the day of the actual purchase, it takes on average 6-12 months. During this time, the user collects information and informs himself in various ways (reviews, reads articles, reviews,…). More in Why don’t you sell more online?
The second is the instant decision when the user starts to search for something and buy immediately. This is what Google’s study Micro-moments ( Micro-Moments and Consumer Path ) says about the use of smartphones to make faster decisions and more spontaneous ones. When something breaks down and an immediate reaction is needed.
Why every digital marketer needs retargeting (remarketing)
Remarketing is remarketing. It works by targeting users who have previously visited your business website. By default, remarketing is to serve ads to past visitors to your site. If someone has already visited the site and left it without placing an order or placing a request, he already said that he was not interested in the offer, wouldn’t he? Not quite. Because users need more time to buy a product, it is important to always be alert, but not all, when deciding which product to choose and which provider to use. At this time of decision making by the user, companies have a difficult task. They need to build a relationship with the user and make them more trustworthy than their competitors. By providing quality and relevant content to the user at the right time, it creates relationships and builds trust.
What is the ideal company approach to digital marketing
All agencies would say that the amount of digital marketing money should be “sufficient” and that the results are beyond measurable, making the campaigns more effective than analytics shows. This approach may not pay off the most. A company that does not have enough digital marketing resources will find it difficult to achieve satisfactory results. Such companies are usually too demanding or difficult. they expect too much, given the amount they invest. This necessarily leads to dissatisfaction. The other extreme is companies that squeeze honey and milk and money around. They also usually do not have effective campaigns. The point is that digital marketing does not simply require the resources and trust of a recognized agency to function effectively. It is imperative that the company is ready to adapt its offline processes to digital processes. This covers everything from pricing to how you work and how you work, sourcing products, conditions,… Many processes need to be adapted for the web to make the business more competitive in the digital world. Very important factors that affect the effectiveness of digital marketing are:
- speed (order execution, delivery, service delivery,…)
- responsiveness (to a request, call, question,…)
- prices (products or services)
- terms (product warranty, quality; exchange option, conditions that reduce customer risk,…)
- reliability and trust (how reliable does a business look? Is it trustworthy?)
These are just a few of the factors that influence how effective digital marketing can be, and all of the above goes beyond the website and content of ads. Therefore, it is always imperative for businesses to adapt as much as possible and make sense, as otherwise, they present their disadvantages to potential buyers.
Digital marketing is effective in the long run
Business leaders must know that 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 it is. If other business leaders or competitors are investing heavily in digital marketing, then simply maintaining a position in the digital market and therefore traffic requires a lot of work and resources.
The easiest way to understand this is to look at the CPM (cost per mille) model of the entire digital market. This is the price that advertisers pay per 1,000 impressions for users, and some experts believe that is the basis for CPC (cost-per-click) billing. CPM is growing year by year and is e.g. on Facebook in the last 6 months of 2017 alone has grown by 136% (US data: source). The price of user attention is always higher. What is important about this, however, is that if competition invests e.g. 100 € a month, then he gets, for example, for that money. 20,000 impressions at a cost of 5 € / 1000 impressions (CPM = 5 €). An investing company e.g. € 50 a month gets only 10,000 impressions, which means it addresses half as many users and leads to half as many users recognizing it. Thus, the company market is significantly lower, which results in fewer results.
Business leaders should also know that one of the reasons why digital marketing is more effective in the long run is the initial investment. This means analyzing, creating and customizing websites, setting up campaigns,… All of this costs a little and this investment is easier to pay back over time. Other reasons lie in the effectiveness of digital marketing campaigns, which over time become more effective with analysis and optimization. The third very important thing is the non-paid traffic. Any good digital marketing also involves optimizing web pages on Google, referrals from other sites, increasing the user base (email, Facebook,…). If there are more and more unpaid clicks from Google, more and more unpaid clicks from Facebook and Twitter, more clicks from email campaigns, then there are more conversions and the cost of one is increasing in proportion.
Digital marketing pays off in the most competitive areas only when carefully selected non-paid channels are combined with paid ones.
How much sense it makes to invest in digital marketing
Digital marketing is very flexible in terms of cost. Facebook advertising, Google advertising, Linkedin advertising, email marketing, website optimization, and more, all can be done with varying degrees of activity and with any budgets that do not fluctuate but remain within predefined frameworks. On the one hand, it makes the most sense to invest in the capabilities of the company as much as it can afford, assuming that digital marketing campaigns are effective. On the other hand, the issue of ambition is also important. To overtake a competitor, you will not achieve it with a lower budget. To earn € 10,000 in digital marketing, invest $ 100,000 in it.
How we measure performance in digital marketing
Digital marketing is measurable. When planning and setting up campaigns, we determine first what goals we want to achieve and how we will measure the results and evaluate them. Online shopping measures actual purchases and actual values and quantities of products, etc. For each purchase, a traffic source (where the user came from) is also known.
The results are different in terms of traffic sources and can vary greatly from one business to the other, in the sense that for one business Google can deliver the highest conversion rate, while for the other, Facebook or organic traffic works best.
What you need to ask yourself before starting a digital marketing
If we ask the wrong questions, then we also do not get the right answers. With the help of good questions, however, we can recognize ourselves better and act accordingly.
Why would he make a deal with you?
Each party is asked this question before deciding. The answer to companies is usually to say that they have better prices, quality, or better customer service, etc. These are all very important things, but none answer the question. All of this is the basis, so you can be in business at all.
All companies have some unique advantages that set them apart from the rest. To find them, one may ask:
- What do we do, what do we do and is it really unique?
- What channels do we use that our competition does not use?
- When do our customers pay us more?
- Where are the margins highest?
- Where is our customer satisfaction highest?
But to find this value, or to create it, if you don’t find it or don’t have one, the questions below are:
- What are our customers’ main questions before they decide to buy?
- What would help them to decide without worry?
- How can we help them to choose the right thing, the best way to serve them?
- What should we say to discourage customers from the wrong decisions?
- How can we educate customers (about previous issues)?
- How can we create what assets we have as a business to produce engaging /readable/engaging content that customers will actually embrace?
Digital marketing, therefore, requires much more than money from a business. In these times, it is the digital world that shows companies the way, shows how to go in which direction. And business leaders must know this about digital marketing.