Digital Marketing: What It Is and How It Works to Increase Sales



How Digital Marketing Works

Digital Marketing Goals

Main Objectives of Digital Marketing

Digital Marketing Strategy

Categories of Digital Marketing

Why Your Business Needs Digital Marketing


Digital marketing is everything you do online on the web to connect with customers and potential customers. You present your products or services to increase awareness, build interest, and encourage people to buy from your business.

Each campaign you execute results in a more informed and increased consumer base that supports your marketing objectives.

How Digital Marketing Works

Essentially, digital marketing is any marketing method conducted through electronic devices that use a computer. Online marketing activities are included in this category. To conduct digital marketing, a business may use websites, search engines, blogs, social media, videos, email, and similar channels to reach customers.

Traditional marketing is static and often referred to as “one-way” communications, while digital marketing is a dynamic process that continually changes. A billboard or print advertisement can’t interact with a customer, whereas digital marketing provides a way for a company to communicate effectively with its current or potential customers.

Today, screen time is at an all-time high for many people. As a result, digital marketing captures this reality, promoting business products and services across the internet. This way, businesses ensure the best chance of reaching their customers by targeting where they are spending the most time.

Digital marketing can bring significant commercial benefits to businesses, from startups to enterprises. A successful digital marketing strategy often involves an assortment of methods, including online advertising, search engine optimization and marketing, social media marketing, management, and content creation.

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Digital Marketing Goals

In order to build your brand and achieve success in your business, you have to be clear on your digital marketing strategies, which include setting the right objectives for your digital marketing plan.

With every campaign you execute, you build an increased and more aware consumer base suiting your marketing objectives.

Let’s look at the seven main objectives of digital marketing.

Main Objectives of Digital Marketing

Your business can take advantage of the various ways to connect with customers in the online world.

Here is a list of objectives of digital marketing in today’s world

1. Continuous Stream of New Leads

Direct sales are possible with your own website, but if you have an offline business, digital marketing will help you generate potential customers online and then bring them offline.
And digital marketing can bring potential customers to your website. Regardless of whether you choose to do business on a website or at a brick-and-mortar storefront, you need to have a steady stream of potential customers.

For a small fee, digital marketing can help you generate high-quality leads, depending on the medium you use. You can expect more visitors to visit your store.

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2. Increase Sales

A marketing strategy should ultimately enhance sales, and internet marketing is no exception. The internet offers many opportunities to improve your business’s bottom line.

For example, by combining search engine optimization (SEO) with pay-per-click ads (PPC), your business can increase the chances that potential customers will find you online.

With strategies such as content marketing and social media marketing, you can position yourself as an expert in your field while caring for your customers as well. Any strategy should aim to increase sales.

3. Brand Building

One effort of internet marketing goals involves brand building. You establish not only your logo and company name but also your company’s philosophy. Customers are more likely to trust a familiar brand, especially if the business has positive associations with the potential customer.

A great way to build that trust is through the internet since its reach is huge and you can easily connect with people. It is especially helpful for branding, as it allows companies to create and publish with a more personal feel.

Businesses can also grow brand awareness by using ads and placements. As trust and loyalty develop over many months and sometimes years, this requires patience from the leaders of the organization. Organize your efforts around results.

4. Lower Customer Acquisition Cost

It is common for companies to have high acquisition costs for each new customer. They spend so much money in order to attract new customers because they believe they will become loyal followers. Even with first-class products, thousands of product choices available challenge keeping repeat customers.

Therefore, it is important to understand the cost of attracting new customers in order to proceed in moderation and not spend too much.
Using digital marketing is a great way to reduce the cost of acquiring new customers. This allows you to reach a large target group more quickly and at a lower cost than traditional marketing.

You can place ads on social media or search engines aimed at users in a specific location or with targeted interests. The second option is the best because it allows you to perform promotions with just a click of a button. Additionally, it will save you a lot of time on customer acquisition—collection/newspaper advertising, logistics, etc.—which will lower your acquisition costs.

5. Improved Qualified Traffic

Visitors to the website and landing pages should increase for all business owners. However, if there are wrong traffic types not targeted to your business, these numbers are meaningless. All visitors to your website are not likely to make a purchase. This is the way of the internet, and you must accept it.

If none of your website visitors makes a purchase (or contacts you), it is likely that you are attracting unqualified traffic or visitors who are not interested in becoming clients. Increase your marketing efforts, as well as your bottom line, by targeting specific people and attracting targeted, qualified individuals.

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6. Build Online Reputation

Anyone can comment on companies, products or services on the internet. It is important for your business to maintain a solid online reputation. In short, you should monitor your company name, maintain social profiles, and respond to bad reviews accordingly.

The internet is a reliable tool to build your business reputation through a wide variety of techniques to reach potential customers.

7. Better Local SEO

Online you can optimize various elements on your website and other platforms to attract local customers looking for the services you offer.

Local searches usually generate more qualified traffic. If a user is already looking for businesses located near them, chances are they’re ready to explore your local business.

Digital Marketing Strategy

Because the internet offers a variety of tools and platforms to reach potential customers and communicate with current customers, you need to develop a strategy of which tools to use and why.

Digital marketing involves identifying specific goals that are achievable through online channels. An organized digital marketing strategy is vital to organizations’ success in an era when consumers transact business on their mobile devices.

In this context, it is crucial to audit the state of an organization’s media assets. From a macro-level perspective, marketers need to evaluate their organization’s owned, paid, and earned media:

Owned Media – Owned media represents any communication channels that your business owns and operates under your complete control. Organizations can leverage owned media to fit a variety of marketing campaigns and tactics, including websites, podcasts, videos, and blogs.

Paid Media – Paid media refers to content designed by you that third parties display in exchange for compensation. Paid media is widespread in many digital marketing strategies from sponsored content to influencers.

Earned Media – Earned media refers to third-party content that is completely separate from your business. In the digital world, this kind of exposure occurs in the form of awards, testimonials, reviews, or user-submitted content.

A digital marketing strategy must ultimately maximize the impact of owned, paid, and earned media in the digital world.

Furthermore, these marketing strategies will include multiple channels and approaches, including website content and blogs, as well as online advertising, testimonials, and reviews.

Your digital marketing strategy will change based on the type of business and your stage of business growth.

Categories of Digital Marketing

Website Marketing – Your website is a powerful tool. It is your owned, online home for your business. Much of the traffic you generate from other marketing channels goes directly to your website. Here you can introduce your products or service and also add detailed information and instructions. A well-designed and optimized website connects with the people who are your customer base.

Search Engine Optimization (SEO) – SEO refers to the practice of optimizing content to improve discovery by major search engines. If you follow established SEO practices with all digital content, your business will be able to reach prospective customers via major search engines.

Social Media Marketing (SMM) – SMM is the practice of using social media platforms to reach customers and communicate your business message. Businesses that use Social Media Marketing effectively can reach customers directly through their preferred social channels. Part of your strategy is identifying where your target market goes on social media.

Digital Advertising – Digital advertising refers to the placement of business ads on various online platforms, including search engines and social media networks. The placement of paid search results and pop-up ads are examples of digital advertising.

Pay-Per-Click (PPC) Advertising – PPC advertising is a subset of digital advertising where your business places ads with a third-party website to drive online traffic. The cost is determined when someone clicks on your link. Ideally, that link drives them to a landing page (on your website), calling the user who clicked to take action.

Content Marketing – Content marketing is the practice of using your owned media channels to target prospective customers. As a result of creating and posting high-quality content regularly, your business can improve discoverability and drive traffic to your site.

Email Marketing – Email sent to prospective and current customers to communicate information, announce sales, and encourage recipients to respond.  Marketing through email can be a powerful tool that has proven to be successful.

Downloadable Content – Downloadable content provides an efficient way to gather leads. Your business provides downloadable information for free to prospective customers in exchange for their information, usually an email address. You produce high-quality content that prospects can download for free, while they provide you with valuable contact information in the process.

Overall, your business can employ many different marketing tactics. Successful marketers are able to identify goals and then choose tactics to achieve those goals while maintaining a focus on general strategy, business needs, and budget constraints.

Why Your Business Needs Digital Marketing

When you review the goals of digital marketing above, you’ll understand how digital marketing increases consumer awareness of your business. But, let’s look at how strategic digital marketing can impact your customer base and increase revenue.

1. Expose Your Business to a Large Audience – Your business can contact your target audience through various devices (computers, tablets, telephones, etc.) with current technologies. You reach your consumers where they are using mobile device applications and even playing games.

Digital marketing services make it simpler than ever to identify and reach your target market.
For instance, online advertising platforms like Facebook and Google offer you a range of demographic and psychographic data that can provide you with an idea about how to advertise your business effectively.

2. Understand What Your Customer Wants – Digital marketing helps you understand consumers’ online behaviors. That way you can tailor your content to your ideal client.
In the field of analytics, such as Google Analytics, Google Search Console, SEMRush, and SurveyMonkey, you may be able to identify the needs of your optimal consumers and convert them into paying clients.

Don’t forget to use social media and your current audience specifics to discover what they enjoy, what posts they respond to the most, and what types of questions they have had in the past.

3. Build Customer Relationships – One additional motivation for adopting digital marketing is that it enables businesses to develop stronger customer connections for most contemporary brands.
While most conventional marketing offers one-way customer contact, digital marketing allows two-way communication in real-time.

Your business can tackle customer concerns more quickly, benefit from excellent consumer involvement, and build brand connections.

An excellent way to grow client connections is through social networking. Using platform networks like Facebook and Twitter, your business can engage with consumers in a real and useful way.
For information or solutions, consumers often turn to a business’s social media page in case of questions or issues.

4. Personalize Marketing – Targeting is one of the major benefits of digital marketing. Email message segmenting allows you to personalize your message even more. Target those who participated in your most recent sale, or extend a discount to those who joined your list in the last week.

Email service providers offer ways to tag and segment each subscriber on your list. For example, you can segment repeat customers from those who made a single purchase.

man wearing headphones looking at the laptop

Digital Marketing Demands Attention

Digital marketing requires monitoring. Unlike traditional advertising, it is not set-and-forget. The benefits of connecting with consumers one-on-one require monitoring and action.

You need to update your website with new information and also the latest software and protection. On social media, you need to respond to each and every comment on any post, personalizing your message. And reply to any email messages as a result of a marketing campaign.

Digital marketing requires tools like software to help you implement your marketing tactics.
In order to design new advertising, you need to monitor, test, and evaluate each iteration of an ad to understand what works best with your target market.

Eternal vigilance is the price of access to consumers.

Many businesses do not have the time or staff to take advantage of the multiple benefits of digital marketing adequately. At Erfolk, our team specializes in digital marketing.

If you’d like to find out how an agency can help you with digital marketing, we’d love to hear from you.

We look forward to hearing about your next marketing project. Schedule your call with us now.