HOW IMPORTANT IS DIGITAL MARKETING FOR YOUR BUSINESS?

Since the late 2000’s, with the rapid increase in technology & social media as a form of communication, Digital Marketing has become a new “Buzzword” for young population and is widely used in crucial marketing planning across industries. All the businesses ranging from brick and mortar to online e-commerce marketplaces are changing their business models to include the digital marketing strategies. But, digital marketing is useful only when your target audience or your daily traffic actually gets converted into real sales.

Many people are still skeptical about the profitability of digital marketing for their business, but with a rapid growth of social media users & high popularity of digital communications, corporates can no longer ignore its importance anymore. Applying the statistical data, digital marketing in India has increased to 175% in the year 2015. The launch of Globally recognized project “Digital India” has seen a rising trend of digital marketing outsourcing in technologically advanced countries like India. Due to the benefits of digital marketing in today’s sophisticated business scenario, it has gained immense recognition & support from the Silicon Valley (USA).

The various benefits of digital marketing are:

1. It Increases Sales:

Whether you are a small or big business, it helps you to increase your total sales. Digital branding is not company specific, but concept specific. If people love your concept, then that may increase your total sales ratio. The customers may even go for the paid trial before purchasing a full unit of your product. Thus, it can be rightly said that chances of increasing your turnover are higher with digital branding.

2. High Conversion Ratio:

As per the survey conducted by Google Analytics, accurate digital branding strategy can boost your conversion ratio by more than 23%. Digital marketing helps you to reach your target audience & create an impression in their minds. On the other hand, not having an engaging digital marketing strategy can result in loss of time, money & resources. Hence, the digital marketing strategy should be designed in such a way that it generates profit.

3. Powerful Online Value Proposition:

Whenever you design an online marketing strategy, you should always create a proposal which is easy & convenient for the general public to comprehend. From the past few years, particularly the people from Eurozone have increased the internet search by more than 23%. Hence, the business house should always implement very strong online value proposition in Social Media Marketing.

4. Creates Online Presence:

Today most part of the target audience of all companies is into some or the other social media platform. Hence, for digital marketers, it is a very important task to create a strategy which gives their brand a social boost by increasing the goodwill & social media presence of the firm.

5. Helps You to Save Money:

In today’s time, both big and small business units need to save their crucial financial resources. Majority of small firms have very limited resources. Hence, they need to develop a strategy which is in their limited budget & gives more reach to their audience. Digital marketing is one such strategy.

6. Keeps You Ahead of the Competition:

With an increase in the young population, many individuals are becoming young entrepreneurs. Hence, many startup brands are investing huge financial resources in various online marketing tools such as, Google PPC, Social Media Campaigns, Search Engine Optimization, etc. The constant interaction with the users helps the new age firms to get more brand recognition in the industry and thus, it helps them to stay ahead in the competition.

Table 1.1: Comparative Analysis of Digital Marketing Strategy

Source: Krazy Mantra Research Team (The given above chart is based on a comparative statement of a company who uses digital marketing strategy & how it affects them on three factors i.e Sales, Goodwill & Efficiency in Operation, the above factors are based on Algorithms, calculated out of 20 graded points, Converted into % form)

7. Delivers Higher ROI (Return On Investment):

Currently, the whole world is online. In order to maximize the total return on investment, people opt for digital marketing tools. It is the best way to get your brand registered in the minds of your target audience. It is noticed that digital marketing is much cheaper than traditional forms of marketing and caters to a much broader audience. Pay Per Click (PPC) in digital marketing is 13x times cheaper than the traditional forms of marketing and advertising.

8. Helps You Connect With Your Target Audience:

Whenever a company expands or contracts its operation or whenever a company makes a strategic decision, it is necessary for them to intimate their existing clients or potential audience about the change. Even while launching a new product or a service, social media serves as the best medium to stay in touch with the customers. Obviously, every time for minor announcements, they will not call a press conference as it will be very much costly for them. Hence, they will opt for social media marketing as a form of Company’s announcement to reach a greater part of audience. Social Media also serves as a great medium to hear customers’ grievances and promptly replying to them.

9. Improves Your Knowledge & Revenue Source:

The Digital Marketing & Social Media Marketing (SMM) is very much important because it helps us to keep updated with the recent news & social environment changes. Sometimes it acts as a medium to upgrade our knowledge & generate awareness about the certain trends in the market. This in return helps the companies to gain larger market share, which might eventually help them to increase the revenue.

10. Creates Marketing Funnel:

If you really want to be successful, then it will be very important for you to have an effective marketing strategist who creates an effective sales funnel. You need to upgrade your marketing strategies & install the tools such as Call-to-Action (CTA), Feedback form, Discount offers, etc. that helps you create a higher customer engagement ratio.