Digital Marketing and Its Impact on Sales Revenue of an Organisation
Revenue. Profits. Growth. Impact.
Except for these 4 words, everything else is a plan of action in business.
It’s the starting point of all the business adventures that ever happen. And like any hero who takes up such an adventure, the first challenge for business leaders is to find the right path.
Door to door sales used to the right path.
Interrupting the prospects to sell them used to the right path.
Then the billboards, direct mail, the newspaper, telephone, the radio. The TV. and came the Internet. While you can still call the radio and TV as digital media, the Internet created the biggest needle mover for digital marketing.
Let’s ask ourselves a naive question. Is Digital Marketing better than Traditional Offline Marketing?
Yes, for very obvious reasons.
Digital Marketing is
Easy to measure ROI
Easy to get instant feedback
More interactions with can happen
Have control over “timing”
Easy to update the marketing messages
Better management of campaigns
There are a hundred other reasons why digital marketing is better.
(But, hey, remember that traditional offline marketing can still add up to significant results if combined with digital efforts)
But, still, Still, almost half (45%) of IT and business leaders surveyed say their companies are in the very early stages of becoming a digital business – either gathering information or just beginning to formulate a digital-first strategy.
45% of them! That’s about 100 million or more businesses around the world, who are still behind.
What happened? What’s stopping us to fully embrace the digital transformation?
lack of sufficient budget (39%)
lack of staff and/or correct skill sets (36%)
the need to replace legacy systems (34%)
cultural issues (33%)
Today, I attempt to convince the 45% of these businesses to fasten their digital transformation efforts and give the anchor for others to 2X, 5X and 10X their digital efforts to achieve their fullest potential.
Where to begin?
“Salespeople sell the product and generate revenue.”
that used to be the case. That’s what the executives cared about. They gave bonuses/hikes to the sales leaders if revenues did that year or fired them if revenues fell.
Until we cared enough to take a big picture and complete narrative changed.
Every business has 5 parts.
Value Delivery, and
Now we understood that revenue isn’t just a result of “salespeople selling”, but a result of
The product team creating a remarkable product
The marketing team creating problem awareness among the target audiences, attracting those target audiences through various inbound activities, and creating the perception that the company’s “remarkable product” as the most viable solution to the problem of the target market.
Now, the sales team leverages the demand created by the product and the marketing team, uses strategic insights about the prospect behaviors and converts them through the last stage of objections.
Value delivery team delivers the value, and
The finances team manages the transactions
If there’s one huge takeaway from this is that
“Salespeople don’t create demand; product and marketing team does.”
Given that you have the best product in the market, now it’s the marketing team’s turn to bridge the gap that salespeople alone can’t.
Now, a traditional offline marketing team can’t do a good job of bridging that gap.
There’s a huge obstacle,
B2B or B2C, buyers want to control their own journey
They want to gather more information
They want to evaluate the vendor landscape
They want to wait until much later in the sales process before they could interact with sales representatives
So, as a business, you can’t address those specific needs through traditional marketing channels, because traditional marketing has no clue how to get this done.
So, all you can do with traditional marketing is “interrupt” your target audiences and “sell”. And that’s one of the least effective strategies you can take if you’re aiming to build a brand and scale big.
Instead, you need to meet them in their research process and make sure you are the one they come for whenever they need certain information.
Influence the buyer’s research process or wait for some luck to improve your sales and so the revenue.
Influence the buyer’s research process.
Wait for a second. There’s more before you can ask that question.
Buyers are more social
Half of the world’s population is on social media and they’re spending a majority of their mobile time there. More and more time people stay on social media, they start caring about brands they keep seeing on those platforms and how they’re being perceived there. If a businessperson engages more with a brand on social media, they’re more likely to 1) become a loyal customer or 2) promote it by sharing about it with others, than someone who never engaged with them.
Social Media engagement has become a key parameter in measuring how a brand is perceived and it also influences the willingness of buyers in entering a business relationship
Have a look at some numbers here:
40% of digital consumers use social networks to research new brands or products. (Hootsuite)
78% of people said that companies' social posts influence their buying decisions. (Social Media Today)
After all, businesses are made of people and if their buying decisions are influenced by social media, it’s hard not to take that seriously.
it takes almost 11.4 pieces of content from your brand before someone considers buying from you, which again points us back to digital media marketing.
Wait, there’s more.
Buyers are more emotional
When someone says “It feels the right choice to me”, there’s hardly anything you can do to convince them to make a different choice.
No matter how much B2B decision making is data-driven and how many times a B2C buyer thinks, they expect more positive, elegant and personalized brand interactions before they make the buying decision.
B2B purchasers are almost 50% more likely to buy a product or service when they see personal value, such as opportunity for career advancement or confidence and pride in their choice.
- From Promotion to Emotion: Connecting B2B Customers to Brands, Think with Google
But how to make more of those emotional connections possible and drive them to choose your brand over others?
What’s clear so far?
The buyers’ behaviour is shifting due to drastic digital transformation and we know exactly how this is happening.
What else we know?
We know the exact challenges to overcome.
Can your product overcome these 3 challenges? No.
Can your salespeople overcome them for you? Their job is different.
You need digital marketing to show up and solve them for you.
Let’s conclude with these clear, actionable takeaways:
Takeaway #1: The exploding growth of technology has been shifting the buyer behavior towards being predominantly DIGITAL, whether we want it or not. We need to recognize that and take complementary actions.
Takeaway #2: Keeping in mind that “revenue generation” is a collective effort of all teams in a business and not just the job of the “sales team”.
Takeaway #3: We should make a shift from “talking about how important DIGITAL MEDIA MARKETING is for businesses” to going several levels up and “continuously improving our digital infrastructure to leverage the potential of digital media to its fullest”.