9 Key Benefits of Digital Marketing That Boost Your Business
Do you know that digital marketing has become the main focus in marketing campaigns for a large majority of businesses?
Even without viewing any marketing statistics, you can still imagine how an online presence can bring huge benefits to a business.
Image Source: Internet Live Stats
Over 4 billion searches were conducted today.
Plus, more consumers are going online, especially during the covid-19 pandemic.
How do you reach these consumers without digital marketing?
According to research by Avernor, digital marketing has become one of the most cost-effective ways to reach your prospects.
With the same amount of money that you spend on sending direct mail (physical letters) to your audience, you can reach 18 times (36,000) more people via digital marketing.
Curious about why and how digital marketing benefits your business? Keep reading!
Here’s a summary for the benefits of Digital Marketing:
Let’s deep dive into it!
You don’t have to be a math genius to figure out that digital marketing is far less expensive than traditional advertising methods.
Newspaper and magazine advertisements can cost thousands of dollars, and television and radio advertisements can quickly consume a company’s marketing budget.
As you can see from the chart, the cost for digital advertising is much cheaper. One of the reasons is because most digital advertising platforms are using the Pay-per-Click model (PPC).
But we know that low cost doesn’t mean you will get good results.
So why is it cost-effective?
One of the reasons is because digital marketing allows you to collect valuable data from your visitors. That you then, you can use it for retargeting.
Image source: Microswift
With the ability to retarget, your ads will be placed before those who would like to work with or buy from you. It can also be used on consumers who have purchased your product or paid for your service once.
The ads serve as a reminder of or an introduction to your value. You can gather the conversion data and fine-tune your future campaigns.
Another reason for its cost-effectiveness is you can utilise free resources to drive attention to your business.
For example, you can create a series of valuable posts that are related to your brand and campaign and share them on your social media using free sites such as Canva.
Remember that you can use the same materials to generate different types of content (images, videos, animation, infographics) and share on different channels, which makes it more cost-effective.
This can help you get traffic from unexpected places, but from people who are still interested.
And this leads us to the second point.
#2 Huge Return on Investment (ROI)
Every business places emphasis on its ROI.
If you have low ROI, you are experiencing a great loss in your business.
But with digital marketing, there are a lot of statistics proving how it can leverage your return on investment.
See the statistics:
- The average return on investment from email marketing is 4200%.
- Individuals that blog are 13 times more likely to get a positive ROI.
- For every $1 spent on Google Ads, businesses receive an average of $2 in revenue.
- 64% of Internet users are more likely to purchase a product online after watching a video.
- The cost of content marketing is 62% less than traditional methods, yet it results in 3 times as many leads.
However, it’s crucial to note that you can only achieve this ROI if you conduct digital marketing correctly. Here’s a great guide on how you can measure and improve your digital marketing ROI.
#3 Develop your Brand Effectively
The founder of Amazon Jeff Bezos once said, “Your brand is what other people say about you when you are not in the room.”
Branding is vital because it’s the visual identity of your company. Even if you’re investing in traditional marketing, your business still needs branding to be successful.
The stronger the brand recognition, the greater the opportunity to be the chosen brand by potential customers.
So how does digital marketing develop your brand?
1. Great visibility and Reach
Digital marketing builds your brand because it harnesses the power of connectivity in digital media, allowing you and consumers to stay connected.
Your business will be seen by more individuals when you’ve created an online presence.
Since a larger number of individuals can access your brand, awareness of your products or services will be higher compared to traditional techniques.
2. Build and nurture a relationship with your prospects
We know that customer loyalty can be difficult to establish.
But when you’re implementing online marketing, you can build relationships with your prospect from being in the awareness phase to entering the consideration phase.
As they receive more information and offers from you, your brand is slowly built in their mind.
Once they find that you’re providing better offers and services than your competitors, they become consumers.
Image credit: Edwards Media Solutions
I will share more about how you can nurture your prospect in a second.
3. Gain high credibility and trust
As you continuously provide high-quality products and services, you will obtain more testimonials and customer reviews.
Since digital marketing allows you to share reviews on your digital media platforms, chances are more people will notice you.
When more people read the positive customer reviews on your website or hear about your brand from their friends, you will gain more trust from more people.
This trust will cause an increase in your website traffic, higher engagement with blogs and social media or even better conversion rates.
Image source: Pait Academy
4. Build a community
Customers trust each other more than marketing collateral.
The more excellent reviews you have from your consumers, the more trust you gain from them.
By marketing online, it is easy for you to build a community that consists of brand ambassadors and brand champions.
This community will help you to promote your products or services to more people, which also increases your ROI.
5. Enhance Brand Equity
Brand equity refers to the commercial value that is gained from how consumers think and feel about a brand, and how well a brand commands market shares and profit within its industry.
When you have higher brand equity, consumers will favour your brand over your competitors.
With that, you have the opportunity to improve your pricing structure. You’re also spending less on paid advertising and public relations to promote your new products and services.
#4 Greater engagement
We know the importance of staying engaged with our customers.
But it is difficult to retain customers since there are so many competitors in every industry.
So how do you continuously engage with your customers?
Here are 4 ways you can stay connected with your customers with digital marketing:
1. Send personalized offers
With digital marketing, you can send personalized offers such as:
- Seasonal discounts
- Exclusive access to new product releases
- Real-time Offers
- Membership gifts
Take a look at how Coursera engage their subscribers through email marketing:
2. Create valuable and relevant content that inspires and delights them
If you have a website, you can create various blog posts that are related to your customers’ needs. If your content provides solutions to their problems, it will build trust in your business.
According to Hubspot, companies that blog generate 67% more leads and it takes five to seven impressions for people to remember a brand.
If you’re on social media, you can always share fresh and fun content such as memes, stories, short videos, motivational quotes or promotional videos that keep followers engaged with your business.
See how myKyoChon used this engaging video to promote their brand:
3. Retargeting ads
As we have mentioned earlier, retargeting ads are a very effective marketing strategy that nurtures a prospect into your customer.
According to Wordstream, retargeting ads are 76% more likely to be clicked on than a regular old display ad.
If you’re running ads, whether it’s on search engines or social media, why not go the extra mile?
It helps your business to reach lost prospects who have left your site and recover lost sales.
For example, check this retargeting ad from AdEspresso:
4. Provide instant feedback to your customers
One of the best ways to build a connection with your customers is to reply to their messages in the shortest amount of time.
If you don’t have an online presence, it is difficult for your customers to keep in contact with you.
There is also a risk of losing customers if you don’t receive their calls on time.
A website can help you to provide comprehensive information about your business, which reduces the risk of missed calls from your customer. You can also try automation in social media messages to respond to your customers.
Here’s an example of how ClickUp uses its website to provide solutions to its customers.
#5 Accurately Measure All Results
Before the presence of digital marketing, it was hard to identify customer behaviour.
Not only that, business people were facing difficulties in optimizing their marketing campaigns as they could not track the results.
With digital marketing, marketers can track every step that a customer makes using analytic tools. The insights can then be made into a buyer’s journey, allowing you to identify which strategy works best for your marketing funnel.
Image credit: Databranding
Let’s say you want to create a social media campaign. The goal is to raise awareness about the launch of a new product. You decided to publish a series of promotional stories on your social media accounts.
You are no longer left guessing what’s working and what isn’t.
Marketing analytics also enables you to measure everything from the first contact to the final return on investment.
By understanding important metrics such as ROI, Cost per click (CPC), Customer Acquisition Cost (CAC), Customer Lifetime Value (CLTV), you know which works well and which doesn’t.
Since you’re able to obtain accurate data, you are more likely to target the right audience.
#6 Target the Right Consumers
Although your business needs to reach a wide range of people, it’s more significant to target the consumers that are interested in your products or services.
With online marketing, you can utilise various online tools to keep track of an individual’s online activities, demographics, purchase history, etc.
One of the great free tools is Google Analytics. It helps you to collect every piece of single information you need to optimize your marketing campaign.
With all the relevant data, you can target the consumer with content and offers based on what stage they are at within the buying journey.
For example, you’re selling online courses on how to make money using blogging.
You can use email marketing to send relevant information such as a case study on how you managed to earn a great amount of money through blogging like how Alex and Lauren did:
Very engaging, right? ?
If your subscribers continue to read your emails and visit your website, you know that they’re more interested in the products or services you provide. You can then send them an exclusive offer.
Check this out if you’re interested to learn how to make your e-commerce content go viral.
Digital marketers often enable cookies that track the users’ behaviour on their page, which help them to employ the right strategies for different types of audiences.
#7 Build a Consistent Lead Pipeline
Every marketer knows how significant it is to create their own sales funnel.
By having a sales funnel, you will be able to generate consistent leads and sales from the traffic.
But what’s the difference between building a lead pipeline using offline marketing and online marketing?
Let’s say you’re running a daycare business. Currently, you’re relying on offline marketing such as brochures, print advertisements and location to generate leads.
You can still generate leads and conversions, but:
- How do you know how many customers are interested in the product and how many are not?
- How do you keep improving your brand awareness if you have a tight advertising budget?
- How do you remarket your leads?
- How do you effectively retain your customer?
With the help of digital marketing, you can create a more systematic and predictable lead pipeline that generates consistent leads.
You can raise your brand awareness by actively sharing the activities conducted in your daycare and promote your specialties by writing blogs. Then, you can utilise various digital marketing tools to obtain insights, remarketing and retain your leads effectively.
Take a look at an example of a lead pipeline you can create for your business:
Image source: Tribe47
#8 Optimize Your Conversion Rates
I bet you already know that online advertising is much more affordable compared to expensive TV, radio or print ads, right?
I don’t mean that you should neglect offline marketing, but you can leverage your marketing results by considering digital marketing.
One of the benefits is you can easily optimize your ads performance and improve conversion rate.
It’s difficult for marketers to track the conversion rates if they’re using printed ads as everything is happening offline.
If you can’t track your ads performance, how can you optimize it?
When you’re conducting digital advertising such as Facebook Ads and Google Ads, the analytics tools can help you to understand crucial information such as how many people are viewing your ads and what actions they take.
Take a look at the Facebook Insight Overview:
You can dive deeper into these insights to study your ads or posts performances and refine them.
If you’re conducting Google Ads, you can check Wordstream Google Ads Performance Grader (it’s free!) to enhance your ads’ conversion rates.
#9 Level the playing field
Want to know how you can compete with the giant in your industry?
It’s through digital marketing.
One of the strategies is using a combination of content marketing and Search Engine Optimization (SEO). SEO is the practice of improving a website ranking in search engine’s organic rankings.
If Google finds that your website is authoritative, well-optimized and continuously provides valuable content to visitors, there is a high chance your website will be shown on the first page.
Let’s say, you’re running a bicycle shop in Kuala Lumpur, Malaysia.
If you have a website and you’re conducting various digital marketing strategies, your prospects have a higher possibility of finding your business through Google Map:
Or from the organic search results:
Although both require investments in terms of time, you can still create high-quality content that answers people’s questions, catering to relevant needs and ranking for long-tailed keywords without the high cost.
In digital marketing, money isn’t the only factor that affects your web page ranking or ads ranking. If you are creating highly relevant solutions to searchers’ questions, you can still achieve the top spot and be noticed by your target consumers.
Digital marketing offers tons of advantages you should not miss out on. No matter what size your business is, you can benefit from investing in digital marketing.
If you need any help in digital marketing, feel free to get in touch with us!
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