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Why Invest in Digital Marketing?

There are more ways than ever to reach your target audience in this digital age, yet some business owners are still reticent to invest in digital marketing. They are understandably influenced by the abundance of misinformation and horror stories. The reality is that digital marketing is a great investment, regardless of the industry. Let's look at some reasons why.

Buying Patterns Are Shifting

More and more people are buying online. There are at least 1.92 billion current digital buyers, and the numbers keep growing. While desktop shopping has overshadowed mobile shopping for everything from groceries to clothing to even cars, mobile shopping is catching up. By 2021, mobile is expected to account for 54% of all digital sales. 

Some of the changes in behavior can be attributed to the COVID-19 pandemic. In 2020, shifting priorities combined with store closings and economic pressures prompted 75% of U.S. consumers to exhibit new shopping behavior. 73% tried a new shopping method, while 80% tried a new private brand that they intend to continue purchasing after the pandemic. 

Online Reviews Drive Business

Online reviews are important to drive business growth and customer purchasing decisions. You can look at it as modern-day word-of-mouth marketing.  If you aren't sure how vital online reviews are for your customers and, ultimately, your business, consider that 88% of online shoppers trust an online review as much as a recommendation from a friend. An often overlooked benefit of having online reviews is that it is a very effective way to connect with your customers on a personal level.

Not only can you create return customers by thanking positive reviewers, but you can use a negative review to your advantage. 96% of consumers worldwide believe that customer service is an important reason for brand loyalty. By responding promptly and with sincerity to negative reviews, businesses have an opportunity to completely change the opinion of the reviewer and other potential customers. Digitally managing reviews and responding to them quickly and consistently can entice more visitors to your store, particularly on platforms such as Google My Business. 

Get the Right Traffic

All traffic may not necessarily be good. While your website may be getting a lot of traffic, it is critical to understand where they are coming from and what they are doing on your site. Failing to understand the traffic on your site may lead to a loss of sales. After all, if the visitors found your site because it accidentally ranks on Google for terms unrelated to your business, those visitors will never convert to sales.

A staggering 63% of marketers say that driving the right traffic and generating leads is their biggest content challenge. Businesses can't afford to take an "if you build it, they will come" approach. If you have a web presence, you need promotion to get the right traffic.

Great ROI

Digital marketing provides an excellent return on investment:

  • Email marketing - With more than 90% of people over 15 in the U.S. reading email, there is a potential ROI of 4400%.
  • Social media marketing - Social media ROI is a relatively new measurement and is difficult for many businesses. However, we know that more than 50% of all marketers who used both social media and paid social media ads report that it helped them increase exposure, traffic, sales, and partnerships, as well as generate leads and acquire fans.
  • Content marketing - The top three content categories used by marketers in the past 12 months are social media posts at 95%, blog posts at 89%, and email newsletters at 81%. Those who focused on blogging were 13% more likely to drive positive ROI.
  • Paid search ads - On Google, paid search ads produce a 200% ROI.

Digital Marketing Provides Clear Advantages Over Traditional Channels

When the only certainty is change, businesses must find ways to pivot and adapt to a changing consumer landscape. Staying agile and responsive is the answer to relevant and impactful marketing. Driving the right traffic, posting engaging content, interacting with your customers, and increasing your reach are the keys to driving your business to achieve more sales with increased customer retention, resulting in greater ROI. 

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Lisa Sikkema

Written by Lisa Sikkema

Lisa Sikkema is a Regional Sales Manager at Federated Digital Solution with over 25 years’ experience in sales & marketing and 13 of those years just focused on digital. Lisa’s passion for helping local businesses is what drives her to find and help as many local clients as possible. Lisa’s focus is to truly understand a client’s business goals, challenges and expectations and then create customized strategies that will bring her clients the best ROI for their marketing dollars. Lisa loves it when strategy meets technology to create measurable & consistent results.

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