When it comes to marketing, going digital has had massive consequences. The advent of the internet radically transformed this process. Suddenly, marketers had terabytes of customer data, generated from consumer devices, social media, websites and various business data points at their fingertips.
Such data allows today’s marketers to create campaigns that hit the exact spots in the hearts of their customers – something their predecessors could only hope to do.
More accurate metrics, increased usage of technology, combined with improved interactivity of new media, have created whole new marketing opportunities.
Digital Marketing Transformation
Businesses like Alibaba and Grab have shown what digital transformation can do on an industry level. These businesses have taken traditional business concepts and applied new economy digital innovation. In doing so, they have surged ahead and become market titans.
In the specific area of digital marketing transformation, visionaries can bring about some exciting and profitable changes.
Digital Marketing and Sales Funnel
One of the key places digital transformation has a big impact on is the marketing and sales funnel.
The funnel is a traditional concept that marketers use to map out potential actions customers make, at various stages of the customer journey, before making a purchase.
In a pre-digital world, businesses would have had to rely on their best guesses before creating marketing materials. Much was dependent on having a salesperson to close the sale.
Due to digital transformation, you now have multi-stage funnel interactivity and analytics.
Hence, you can now fine-tune your marketing efforts based on actual data – rather than guesswork.
For example, let’s say you are running a Facebook ad campaign. You put up a status update that talks about a great deal your business is offering and asks people to “like” and share it with their network. Your ad has a conversion pixel (a tiny piece of code that is invisible to your customers) that gets installed on their computers when they click “like.” That pixel then sends a signal to your website – telling you that someone shared your post.
Based on that data, you can then create a more targeted or less targeted ad. Maybe the next time you run the same campaign, you only ask people who have not liked your page before to like the post. This way, you can be sure the post will only reach people who have an interest in your business.
Marketing Funnel Transformation Digital marketing funnels are now multi-stage, multi-channel, multi-media funnels. They are also much more interactive.
Customers surfing the internet place a high priority on personalised content. Relevancy plays an important role in their decision making and so does convenience.
Every customer will interact with elements of your funnel as they move through it. With digitalisation, it is possible to track actions at an individual level. It is possible to take the resulting data to provide a personalized marketing response.
In ecommerce websites, you’d be able to track customer purchases and suggest similar products. You can even send them reminders when you expect them to run out of consumable items.
Marketers no longer need to guess where consumer interest may lie. Social media platforms like Facebook provide such metrics. You can tailor your bespoke marketing campaigns to cater to each market segment easily.
Digital data & Data Analytics
In the past, the biggest challenge was quantifying information resulting from marketing channels. You’d have to guess how many people saw your roadside banner, TV commercial or magazine advertorial.
It was even more difficult to tally the effectiveness of the marketing content. How many people reacted positively to your advertisement and bought your product because of it?
Analytics is a major game changer. Companies who utilise analytics in their online marketing transformation have a major leg up on the competition.
With analytics, you can understand the data collected from tracking user actions. For example you have a video ad campaign on a few news websites as well as a few social media platforms.
Tracking and analytics can tell you exactly which marketing channel has the best response from users. You will be able to tell how many people who viewed your ad actually clicked on it.
You’d be able to see how much of the video they watched and how many people clicked on the “buy now” button.
You’d even be able to see which time of day has the most user engagement. You would concentrate on serving your ads during time.
Analytics provides marketers with exact data and metrics to adjust and optimise marketing and sales funnels.
Such specific information allows for nimble adjustments to ad campaigns. Seeing what does and doesn’t work in real time will greatly reduce the cost of your promotions.
Remote working is not just a fad, it is the new normal. The homebound economy is here to stay.
51% of the population prefers to work remotely, as opposed to the 25% who prefer to work from the office, and the percentage of employees working remotely is expected to rise from 63% to 87% after the crisis, according to Bain & Company.
The search for properties in rural areas has increased by 46% these days, according to Fotocasa.
Now that our home has become a place where we spend a lot of time and from where we can work, people start looking for housing alternatives outside the city. Companies need to adjust to this reality and embrace remote working as an integral part of their business strategy.
The good news is there are some companies who have already started to adjust to this new reality.
Some are even thriving because of it. Amazon is one of the biggest success stories of all time. They are so big and powerful they can afford to experiment with different things. Many other online retailers are also experiencing a boom.
The fact is people are spending more time at home and they have more money to spend on the web. But there are a few losers too. Many smaller brick-and-mortar retailers are suffering because of this trend. What does this mean for you?
In previous times, marketing could only speak to its audience. There was no chance for people watching a television commercial to stop it and replay specific parts of relevancy.
There was also very little choice of the type of information they wanted to consume and how to consume it.
Digital marketing transformation has an unprecedented impact on interactivity.
Users can now choose what they want to consume, on which platform they want to consume it on, make comments, give likes and share the content.
This exchange can happen on social media posts, directly on ads, live streams, videos etc.
Unlike in the past, digitised media allows for comments and responses in real time on live streams and webinars.
This changes the scope and nature of how businesses interact with their audience. Real time conversations address customer concerns immediately, gain brand familiarity, improves user experience and boosts sales.
Direct-to-consumer (DTC): when consumers prefer to buy directly from the brand
This includes buying via retail stores, websites, mobile apps, etc. Today, DTC accounts for 40% of all online sales. With sustained increases, it is a trend that has consolidated and is likely to grow.
As a result, there is an unprecedented opportunity for brands to interact with their customers at scale. DTC can be a very effective way to reach new customers and retain existing ones.
However, it does have some aspects of this trend:
A. It can create channel conflict, because DTC implies that the brand is selling directly to the consumer without the involvement of a retailer or distributor. This means that there will be no mark-up on price, which creates a risk of undercutting your own existing distribution channels.
B. It can be difficult as many companies were not originally set up for DTC. It will involve restructuring and expanding departments, systems and processes. As such, it could take a substantial financial investment in data and technology.
C. The most important aspect of DTC is that it implies a shift in the ownership of the customer relationship from the retailer or wholesaler to the brand. This is a cultural change within organisations. Most often, this implies a need for businesses to rethink their entire operating model. This is why, when we talk about “owning the customer relationship”, we are talking about something much more than just owning the customer list.
Automation Helps Conversion Optimisation
Timing can be a critical component to influencing a purchasing decision. The modern day customer is impatient. He wants immediate attention. Otherwise, he will likely abandon his shopping cart.
It is expensive to have a 24 hour customer service team working daily. Automated chatbots can help greatly in such situations.
Chatbots can be programmed to ask relevant questions depending on where along the funnel the customer is. It can provide answers to commonly asked questions.
Automation improves efficiency as email promotions, suggestions and reminders etc can be sent automatically without the intervention of humans.
Combined with tracking, the responses sent to customers are highly relevant and personalised. This greatly improves the user experience for your customer.
With better experiences, you get happier customers who buy more and stay loyal to you longer.
In the new economy, marketers will have to go beyond their comfort zones and job roles. It would be wise to seek out professional digital marketing partners to support you on this front.
Taking the effort to undergo digital marketing transformation would result in data driven policies, campaigns and promotions.
This reduces guesswork and increases accuracy when catering to customer needs.
It will allow you to do your job more efficiently and better corroborate results with fellow employees.
At Blazing Conversions, we understand that the scope of switching to data driven digital marketing strategies can be overwhelming.
Contact us and let our team of professionals help plan and execute your campaigns.