Increase profits by Online marketing of your business
February 20, 2018
In the modern digital business environment most purchase decisions are made by existing and potential customers of businesses after browsing online for related products and services. Hence, if your business websites does not have a strong online presence and visibility you will miss out on business opportunities and profit posting.
The advantage that online marketing has over traditional methods like hoardings, pamphlets and advertising in the print media is that every cent you spend on online marketing can be accounted for. Online marketing is measurable and offers tangible results. You get to know what you are spending and what you are getting back in return. If it is not to your satisfaction, you can tweak marketing campaigns accordingly. It is possible to track results and structure campaigns that target specific audiences only and know how they have responded to your efforts. This is crucial when one of your primary business concerns is profit making.
An example of how it is possible to track online marketing spends for estimating the leads and results it brings in will illustrate this point better. Take the case of PPC or pay per click campaign through Google AdWords. You have to decide on the keywords that customers use to look for your products and services and then choose how much you are willing to spend to draw in those customers. Whenever, searches are made on Google using those keywords, your ads will be displayed. For instance, if you have a certified and accredited service station and garage from where vehicle owners can get a roadworthy certificate your ad on Google should include these two words. Only then will searchers be directed to your site. You can spend high amounts to have your ads shown extensively or as per the marketing budget you have.
Now when a Google user clicks on your ad, you pay a fee to Google. After that you can follow their activities on your website and see whether they have responded and bought any of your products or services. Once they do so you can track them in the long run, get in touch with them when you launch new products and services and include them in your database of customers. In short you can monitor every dollar customers have spent and trace it back to the ad that started it all. Hence at the micro level you can accurately calculate the quantum of your returns against spend and cost on that ad. This helps you to increase returns and profits through online digital marketing campaigns.
When you calculate profits from an online digital marketing campaign, you have to look at the quantum of returns on the promotion over expenses. There are four key parameters for arriving at the ROI on market spends.
Cost per visitor – This is the average fees paid to Google or any other pay-per-click service for every click on an advertisement that takes the visitor to your website. To further analyse this parameter, the cost can be estimated on the basis of which keywords are clicked, specific advertisements or for a total marketing campaign.
Cost per sale – It is what the name suggests and is the amount that is spent for marketing against each sale and conversion that goes through and is finalised.
Cost per lead – This is a bit removed from the other two and is an indicator of the visitors’ activities on the site. It need not necessarily end in a sale you can collect information about them that can be used in future campaigns too and become sales leads. You can collect all contact information about the person who clicks on an ad including phone number and email address. These are vital for building up a database of existing or potential customers who can be approached with newsletters and offer of discounts to increase sales and profitability.
ROI on total campaign – This is where your profitability will come into focus. You can total up the amount you have spent on the full campaign and the money it generated for you in terms of sales and usefulness of visitors’ information. This is only possible in online marketing campaigns where exact and accurate figures can be had.
However, this is not the only approach to online marketing. The campaigns designed to increase sales and profitability will depend exclusively on the specific needs of your business. You have to have the campaign designed and structured accordingly so that more and more visitors arrive at your site.