It’s easy to get wrapped up in the rhetoric around digital marketing. Exclamations about results from “PPC,” “SEO,” “SEM,” “SERPs,” and a million other acronyms might have you scratching your head.
It’s true that there’s a lot of fluff in the conversation about digital marketing, but there’s something really important at the core. The fact is that customers exist primarily online, and digital marketing is the most effective way to reach them.
Those fancy acronyms are all pieces of the puzzle, but a good marketing campaign still requires that you address sales funnels, meet the customer where they’re at, and create an environment for them to follow through.
If you don’t do that online, you’re going to miss out on a lot. We’re going to look at the cost of neglecting digital marketing today, giving you a better idea of what it’s really worth.
How Valuable Is Digital Marketing?
To get started, let’s think about an example.
Imagine that the lifetime value of a customer (LTVC) is around $1,000. You provide them with a great experience the first time, and they stick around for a few years. Over time, they make ten $100 purchases from your company before they move on.
Your business is getting bigger, so you take on about ten new customers every day. You’ve got some light digital marketing efforts in place, but you don’t pay too much attention to them because you have a decent stream of traffic.
Fine-tuning and daily management of your digital marketing campaign could double the amount of traffic you receive. Additionally, that fine-tuning would refine the types of individuals that are exposed to your site.
In other words, the audience you reach will be more likely to have an interest in your brand because they’ve expressed that interest through their searches. Keyword and market research can help to find individuals who express interest in brands like yours.
So you’ve got double the traffic and your audience is more likely to be interested in your product. In theory, that shift to your digital marketing will bring in twice as many paying customers, if not more.
Spread out across the lifetime of the customer, that could be more than $10,000 dollars per day. When you fail to take on a digital marketing approach, then you might be missing out on tens of thousands of dollars every day.
A solid marketing campaign can realign your sales funnels and help customers follow through with a little conversion rate optimisation. Conversion rate optimisation is just a matter of looking at your site data, tweaking a few things, and trying to get customers to follow through to a sale.
Other Areas of Impact
A good digital marketing effort tends to compound upon itself. In other words, some success leads to more success, and so on.
This is because the search engines of Google and Amazon examine your site’s traffic as a measure of how relevant you might be. The more engaged and paying users you have on your site, the more those algorithms support your rankings.
As you rank higher, you get more customers, and the cycle continues. It can be tough to get there though, and limited rankings might have you feeling like there’s nothing you can do to make things work.
Professional marketers attack things from a couple of points of impact. First, they look at how your web content is optimised for SEO.
Search Engine Optimisation
SEO is one of the most essential pieces of digital and virtual marketing. It’s the effort to create your website and its content in a way that agrees with the search engine algorithm.
That means doing keyword research to find a target keyword in your niche and crafting everything else around that keyword. It’s a tricky process, but it leads to content that ranks well for audiences that are interested in your product.
If you neglect that process and post information that doesn’t fit keyword research or the algorithm, your blog content won’t do very much for your brand at all. That’s a lot of wasted time and effort, as well as the missed potential that you had for gathering new customers.
Social media isn’t strictly a ranking factor in search engine searches, but it plays a big part in digital marketing. Your following and the type of advertisements you use on social media create an influx of traffic back to your website.
If you’re slacking on this opportunity or using poor digital marketing, you’ll miss out on a lot of potential customers. There isn’t a better way to target specific individuals than through social media.
These sites gather all of the data they can on all of their users to allow advertisers to reach their target audience. It’s a little creepy from the user’s point of view, and there’s a lot of debate as to whether it’s ethical, but it allows businesses to reach a lot of people.
Have you noticed that your social media advertisements are very close to your interests? Well, that’s the result of gathered information and businesses who use that information to reach you.
Dystopian as it may be, it works.
These advertisements are typically PPC or “pay-per-click” advertisements. That means that you only pay when someone clicks on them. You craft the ad and display it to your target audience, but you don’t pay a dime until the content is engaged with.
This is a great way of making sure that you get exactly what you pay for. There’s some variation in the value of each click, but the sales you get from one positive engagement are enough to outweigh those little shifts in price.
The Absence of Digital Marketing
Without marketing, your site will just be another page floating in a sea of information. It won’t have an anchor in its niche, and you’ll have a hard time reaching anyone beyond your immediate circle of friends.
If you want to use the internet to expand your business, you have to work with a skilled digital marketer. That’s when you start to see a real ROI and see your sales funnels work to their full potential.
If you’re struggling to get a handle on your digital marketing, there’s no reason that you can’t rethink a few things with help from a professional team.
About the author
Moe is the founder founder of Wicked Funnels. He has a Master's degree in Organisational Behaviour from Sydney Uni. And a Master's degree in Programming from UTS. Founded Wicked Funnels in 2017 and since then he has been helping businesses achieve their goals through Digital Marketing.