Business

How to Create a Digital Marketing Strategy for Any Business Niche 

5 Powerful Tips for Analyzing Data for Large and Small Businesses

To get customers to choose you, it’s not enough just to add a product to your site and expect someone to buy it. You need to build a whole chain of interactions: tell them about the advantages of your offer, demonstrate the quality of the product, remind them about the product they put in their cart, and involve them in communication on social media. In other words, you need to develop a strategy. It’s essential for any company, regardless of the industry. A strategy can be created for any business from a popular gambling website with modern real money online slots to a small online jewelry shop that has just been launched.

Here’s what a digital strategy should address, and what items should not be overlooked when creating it.

What a Digital Strategy Is

A digital strategy is a plan by which to promote products or services online. It is a key topic of internet marketing and probably the main trouble of modern business.

Digital marketing has three main themes:

  • Finance.
  • Standard marketing.
  • The right approach to tool management.

They will all unfold in the format of those questions that a digital strategy must answer.

What the Financial Flow of the Business Includes 

To create a successful strategy, it is necessary to be aware of what indicators make up the profits and how they can be managed.

The most important are the following indexes: visitors, conversion rate, average check. Conversion rate (CR) is the ratio of the number of visitors who performed some target actions on the site to the total number of visitors.

Here is an example: 1,000 visitors have visited the website, and 100 of them made a purchase. So CR to purchase is 10% (100/1000*100%).

It’s important to distinguish between CR and CTR. CTR (click-through rate) is the clickability of the site/banner element. It is calculated as the ratio of clicks on the element to the number of its views.

The average check is the average cost of the order for a certain time.

Here is an example: 200 orders with the total income of $100,000 were sold in a day. So, the average check equals $500.

It’s important to distinguish between the average check and the average cost of a product. The average product value calculates each product individually, while the average check calculates orders that may have multiple products.  

Here is an example: 200 orders (400 products) were sold for a total revenue of $100,000. This means that the average cost of an item is $250. Accordingly, the average number of items in a receipt is 2.

In total, these three items make up the turnover of the business.

Who the Customer of the Business Is

To research metrics, understand who your customer is, not in terms of personal perceptions and expectations, but in terms of applied analytics. This is based on two models.

The first is Jobs To Be Done. The customer segmentation method consists of answering the question of why a person uses a certain product. Three steps are derived from this:

  • Product Use Scenario.
  • The choice factor (how the customer chooses and what is important to them).
  • The problems the customer encounters in choosing and using the product.

The second is Customer Journey Map (CJM), invented by McKinsey & Company. They described what stages a customer goes through before buying a product and buying it a second time.

There are six stages in total, but they can be “rounded up” to four:

  • Need Formation or Actualization.
  • Active evaluation and selection.
  • Purchase and payment.
  • Formation of a positive experience.

Certainly, the client learns about the benefits of the product at the second stage, but the real experience is formed only after usage. It is important to make sure that the customer learns how to use the product correctly and does not throw it away. Almost all negative experiences with good products arise because people don’t know how to use them.

From there comes the loyalty stage, where a person relates well to the brand as a whole and buys the product several times. The trigger stage can be added, when a person, with the help of a blog article or a link author, realizes that he needs to buy the product again, and he goes back to actualizing the need.

Broadly speaking, digital marketing is about understanding who the customer is and how they buy. There are three ways to determine this:

  • Collecting a semantic core.
  • Interviewing real customers.
  • Analyzing the customer base.

There is also a fourth way in case there is no data. You can just look at what people pay attention to in reviews, but this is a dubious source of information.

In the future, this understanding will be needed to build the logic of using different tools. Social media is the most effective of these, as it allows you to interact with the customer through all stages.

When you have an understanding of the audience and how they buy, you can use a specific tool to work with each segment at each stage. This can refer to the logic of a content plan, contests, Q&As, promotions, and analytics.

What to Sell

Here you need to understand the following: what product and how the assortment matrix should be built – a list of all product items.

The assortment matrix consists of five items:

  • Lead magnet. These are free products that are used to attract an audience.
  • Tripwire. This is a low-cost product to convert a large audience coming to the free product into customers.
  • Main product. This is the main product that is sold after tripwire.
  • Profit Maximizer. This is an expensive product whose main purpose is to increase the average check. It accounts for 60-80% of profits.
  • Return path. This is a product that people keep coming back for.

How to Position Yourself

Earlier we broke down what customer segments can be, how they buy into the stages of the customer journey map (CJM) and what an assortment matrix looks like. For the matrix to be effective at each stage, it needs to be positioned correctly:

  • Target audience. This is the group of users that the advertising campaigns are aimed at.
  • Insight. This is what the target audience cares about when buying, its factor of choice.
  • Brand portfolio strategy. This is how to most effectively promote the product, personalize brands or use one generic.
  • Brand resonance and mission. This is the philosophy of the organization that builds the consumer’s relationship to the product.
  • Differentiation. These are differences from competitors tailored to CJM. They have to fit the evaluation and comparison stage one way or another, otherwise the customer won’t see the value in this company, and the only difference will be the price.
  • Reasons to believe. These are certain facts that support the credibility of the information. For example, if a company claims that its product is the most durable, it must cite research to support this information in the argument.
  • Naming. This is what the best way to call the product.
  • Positioning. This is the key concept that the company communicates to the market along with the naming.
  • Tone of Voice. This is how the brand speaks, how its positioning is communicated on social media.
  • Brand Territory. This is what boundaries the company won’t go beyond when communicating outlets.

What Tools to Use

There are just six key steps in which to build a promotion matrix:

  • Outreach tools. They draw traffic to the business.
  • Capture tools. They are responsible for where all the traffic is attracted and how exactly it is collected on the site.
  • Heating tools. They are involved if the user’s contact information has been collected. Then with their help, the person is “warmed up,” moving toward purchasing the product.
  • Transaction and sales tools. With their help, people make a purchase.
  • Presale tools. They facilitate the sale of additional goods and services.
  • Loyalty tools. They retain an audience.

Naturally, all these tools correlate with the stages of CJM.

In a number of industries, it costs too much to attract a customer from online resources, so it is more profitable and cheaper to attract them from the offline point and capture them in the digitals. So all of the tools presented above should be used according to what kind of business is involved.

How to Use Them and How to Track Effectiveness

The next step is to understand the use case of each tool. There are two global things here:

  • How the tool should interact with the CJM steps. That is, how it should cover the objectives of each segment in each stage.
  • How each tool should affect the profit formula. That is, which financial indicators make up the company’s performance.

In practice, the second principle is more often used. This means that you should first understand how tools solve financial problems, and then consider how each of them will interact with CJM.

How to Build a Team

We move on to the need to implement the tools, i.e. we need to understand what the department structure, functional tasks, competencies and skills of each employee should be.

How to Implement the Plan

After realizing what kind of team is needed to implement the strategy, we should move on to the priority, plan and estimate. Even if there aren’t enough people on staff, you should simply prioritize the tools and implement them in stages. That is, the priority of projects is the sequence in which changes will be launched in the company.

Write the plan by name, so that it is obvious who should perform what task, in what time frame, and finally, how much each project will cost.

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