The Great Debate: Digital Vs Traditional Marketing

The Great Debate: Digital Marketing vs The Letter Box Drop

I attended a Sydney Marketing function in June this year held by the popular Real Estate platform, RateMyAgent, and led by CEO, Mark Armstrong. His presentation was aimed at addressing the evolution of communication with an audience based on how quickly the commercial environment is changing today. This is both a relevant and tough debate, indeed!

While this event was Real Estate specific, it is a topical discussion being held across every industry and every market around the world in all boardrooms and strategy meetings: digital vs traditional marketing.

Where do we spend our precious budget to get the most cut through to engage our audiences and achieve our organisational goals?

So, it’s finally time to analyse both sides and get to the bottom of this debate.

Where Are Our Customers?

Effective Marketing is all about your audience. This is never up for dispute as we all know it to be true. Knowing that, it may be time to take a step back and consider that age old question: have we thought about our customer?

Recent research shows that 87% of consumers now search online for reviews to determine the quality of a local business, and I’m sure that statistic is pretty similar for how people are researching product information too. This is a big shift in behaviour from only a couple of years ago. Organisations didn’t start this- consumers did. We did. We, as people, changed the game, and organisations today are hugely naïve if they don’t think people are already doing most of their research before even contacting your business.

As An Example

Mark Armstrong said his son needed an internet router for his house the other day, and at first, he had no clue what a router even was. In about ten minutes online, he become a pro with all of the brands, prices and specifications, then went straight into a local store, went to the shelf and purchased it without speaking to anyone in store.

This is very indicative of the modern customer.

The Digital Interview

Today, it’s all about ‘the digital interview’- in other words, searching online to find more information about a person or business without actually contacting them. Online dating, LinkedIn, Facebook, websites- it’s all about research before meeting in person. Around 70% of customers make up their mind before that stage, which is something businesses need to accept and adapt to.

While statistics are always fickle, all you need to do is think about your own customer’s behaviour, and you instantly know this to be true. Hardly ever does a customer go in unprepared or uninformed.

They’re All Online

How often do we go to a bar or a restaurant, and find everyone looking at a screen? It’s a sad reality, but a reality none the less. That is where your customer is! On their digital device.

People aren’t looking for reviews and information in your physical office or in your marketing collateral – they are looking online. So, being there for your audience is absolutely crucial for your business success.
It’s all about your audience, after all.

The Three Arguments: Digital vs Traditional Marketing

There are the three main considerations when deciding the pros and cons of new digital marketing versus more traditional methods, like the letter box drop or print.

(1) Cost
(2) Effectiveness
(3) Accountability

COST

As a general rule, more traditional methods tend to be far more costly in so many ways. It’s expensive to design, print and physically deliver materials like these. Now look at digital methods: it’s almost instant, requires little design due to templates, and the reach is not physically limited, meaning you can get ten times the exposure for around one-tenth of the cost.

They seem to be light years apart on the cost front.

For example, a client came to me recently and told me that the only advertising he was doing was on the back of local shopper dockets, which wasn’t giving him any tangible results, but was still costing him a few hundred dollars a month. For a fraction of this cost, I put his adverts onto Facebook and Google, and he immediately noticed the difference in leads generated!

EFFECTIVENESS

How long do letterbox drops, print media and even mainstream advertising last?
Think about a letterbox specifically. The printed material sits in an office, then in a mail box all day. Then, when your audience gets home, are they truly engaged when they check their letterbox, stumbling in from work? They are coming home with the shopping, or wrangling the kids. This material has literally one second to capture them in amongst the rest of the clutter, and is so easy to ignore. That’s not to say it doesn’t occasionally work, but the chance of engagement is very low.

Now, consider digital ads. It stays online for a much longer time, and due to the customisable nature of online targeting, it can pop up when the customer is more engaged and in the right headspace. It meets them on their terms, like when they are on their phone killing time, or browsing on a website, and so on. They can also interact with it by clicking on it, watching it, zooming in on it, saving it and much more.

In comparison, think about when you hear a radio ad or see a TV ad: you have to remember and recall the advert at a later time for it to have any impact. This means your audience has to spend the effort to remember to act on it at a later time when it’s more relevant, such as when they get out of the car. Making this worse today is that we are constantly bombarded by ads and messages, which means that it’s very hard to keep one specific advert in your mind. You can’t rely on your customer recalling the message – you need to make it easy and at their fingertips.

Digitally, your customer can fully interact at the very point they experience the piece of content, meaning engagement is far greater.

ACCOUNTABILITY

Which technique truly works? What really has cut through and metrics to measure it? If you ask most organisations who spend budget yearly on letterbox drops, for example, they will say things like “$50,000 a year”, and then if you ask them “does this work?”, all they do is shrug their shoulders.

The problem is, some businesses get into a rut of “it’s how we’ve always done it.” This represents a concerning shortfall in our perspective and our priorities. Our industries are too tough and our competitors too smart for us to be thinking this way anymore.

On the digital marketing side, with retarget marketing and tracking cookies, online communication and adverts are able to serve up your communication to more defined and far better aligned demographics. Your adverts are more intelligent because they learn about the behaviour of your audience and adapt to how they consume content, then works out where and when to best display your marketing.

The Three Battlegrounds of Marketing

From the 1960ies, there has been an evolution of Marketing and communication battlegrounds based on how we built our customer database.

(1) The Physical Address

Organisations clambered to obtain the physical addresses of customers to communicate with them physically, either with a sales person, door knocking or letter box communications.

(2) The Email Address

Next, emails went through an effective stage and businesses rushed to fill their databases with everyone’s @.com address. However today, we have found this to be far less effective do the quantity of spam everyone receives daily.

(3) The Computer Address

People live on their mobiles and tablets now- this is where they are today. The battlefield has become exposure based on IP address online. Building a database of tracking cookies has become the Marketing battleground of today.

While these IP addresses are kept private due to Privacy Laws and you never get the actual details, it doesn’t matter as you can rest assured that this technology is getting your message in front of the right people. Then tracking success comes from the metrics and analytics behind these interactions.
The core essence of Marketing hasn’t changed across any of the above battlegrounds: it’s always been about reaching your audience. The only thing that has changes is how- and this is a direct result from how the marketplace and consumer behaviour is evolving.

What is it about Digital Marketing then?

Digital Marketing is effective because it is customisable. It can target specific demographics to ensure that the best audience is getting your adverts and content at the right times.

The following are three combined ways of how digital marketing finds your audience.

(1) Location

Google tags computers with a geographical location. While letterbox drops can do the same, location is where the comparison ends. Digital is able to combine location with the following two qualifiers to ensure that your message is tailored, rather than mass distributed to just anyone.

For example, in the Real Estate industry, around 70% of residences are investor controlled, which means letterbox drops are ineffective because the people receiving the materials are not the decision makers and therefore not finding themselves in the hands of the right people. Digital equivalents would use location and the following two to ensure it is being fed to the right customers.

(2) Browsing History

It is the fact above that allows digital marketing to take it one step further. The history of your browser paints a picture of the type of person your customer is and their interests, which means that adverts can be served up to match this. It’s not a perfectly accurate science, however due to the cost effectiveness of digital marketing, it has a far better cut through and success rate.

(3) Remarketing and Tracking Cookies

As you move from website to website, tracking cookies embed themselves into your web browser to allow the content be catered specifically to you, so you are not receiving irrelevant messages. This allows advertising content to be shown to a relevant audience rather than just anyone.

Where is Marketing Heading Next?

Given that digital marketing is following around your ideal customer and delivering them relevant content, it seems to be working effectively at the moment. However, if I know Marketing the way I think I do, the next stage will be empathetic retarget marketing, which means showing the advert not just anywhere on any website, but when the person is browsing material that is contextually relevant.

For example, when your customer, who has already been identified as interested in Real Estate, reaches a Real Estate or property website, the ad will be displayed, as opposed to how it is now, where it comes up on any website they may be looking at.

It’s all about being in front of the right customer when they are in the right frame of mind.

5 Keys to a Successful Business

Business owners are some of the most optimistic, and often the craziest people in the world. No-one starts a business believing that it will fail. We are all absolutely convinced that our idea is a great one, that we will be successful (where others have failed) and that this business will change our lives for the better. If we did not feel that way, we would never take the risk to invest our own money, or borrow from others to start our business. The reality is however, that, according to the SBA, most businesses eventually fail and more that 50% do not survive beyond the first 3 years. Even if you manage to get that far, things can still go horribly wrong, as many seasoned business owners found out during the recession which hit us during 2009 to 2012.

So, does this mean that you should not start a business at all? Absolutely not. I believe that your business can be an outstanding success, if you approach it in the right way, avoid repeating previous mistakes and impose discipline on yourself as the owner. Here are some of my suggestions on how you can make sure that your business succeeds:

Discipline:

Lets start with you. Successful business owners are disciplined people and more often than not, businesses fail because their owners fail. Your business must compete to succeed. There is always someone out there, trying to win over as many of the customers that you are targeting. Business is competitive and if you do not intend to work hard and discipline yourself, then don’t get into the arena. Anywhere there is competition, there must be discipline. You could have the most unique skill, or the best product idea, but your business will never achieve its full potential, if you do not have discipline.

Discipline is a determination to work hard to get it right. It is not settling for mediocre results but rather working until you achieve the qualities and results that you need to compete. No-one will buy your product if it is substandard, or hire your services if you cannot deliver what you promise. Business discipline requires an eye for detail. I learned a valuable lesson very early on in my career. I was once required to do a financial presentation to a senior executive and felt that since I knew this stuff, I could get by with a minimum amount of research and preparation. I went to the meeting and had my presentation ripped to shreds. I was unable to answer questions that were obvious and fell way short on the detail needed to be credible and convincing. I left that meeting upset and angry, not with the executive, but with myself and vowed that this will never happen to me again. As a business owner you will not get things right every time. You will make mistakes and mess-up on occasion. But if your product or service fails, let it not be for lack of effort and discipline on your part, or that you were too lazy to do it right.

Due Diligence:

“A fool and his money are soon parted” – Dr. John Bridges
“All that glitters is not gold” – William Shakespeare
“There is a sucker born every minute” P.T. Barnum.

These old sayings are trying to warn us that not everything we think is an opportunity or a good business idea, is likely to succeed. There are many con-artists out there, whose sole purpose in life is to deceive you into making financial commitments and who have no problem in robbing you blind. It is therefore foolish on your part not to do proper due diligence on any business idea, franchise or entity you intend to buy or invest in. This is where many business failures occur. At the very beginning.

Due diligence is a serious matter for start-ups as well as on-going businesses. Large successful businesses are constantly doing “due diligence” on their internal processes (systems review, business process improvement, financial and strategic planning) as well as on any expansion thrust or acquisition they may contemplate. Start-ups need to do this as well, before they invest significant funds. Be wary of taking advice from people with vested interests in your decision. For example, you may be considering investing in a franchise. Don’t rely solely on the advice of the franchise vendor with its polished website and a persuasive story, to tell you what a great opportunity this is and how much money you will make. Get independent advice and do your homework before you invest.

Many people start businesses based on a personal passion. While this a great plus factor for success, because your passion drives you to overcome obstacles, it does carry the risk of making business decisions with your heart rather than your head. Sometimes we are too close to the project to be objective and we become emotionally committed too early. This is where an independent expert like an experienced business coach or adviser comes in handy. Some would-be business owners need to hear the brutal truth (in a compassionate way), before they go on to make the mistake of their lives. “Faithful are the wounds of a friend” (Proverbs 27:6). Finally, don’t be taken in by those who pressure you into investing in “a once in a lifetime, limited space available” opportunity. Anytime someone says that to me, I take a step back, and take a good hard look, to see what I’m missing about the offer. It is better to miss out on a “limited offer” opportunity than to rush in and lose your money.

Marketing:

A well thought out and researched marketing plan is one of the most important ingredients that you need to succeed as a business owner. Unless you happen to own the only source of water in the desert, don’t expect people to automatically think of you and come flocking to your doors to buy your product. I worked in a corporate career as a CFO for many years before going off on my own. One of the biggest challenges that I faced when I decided to start my own consultancy business, was how to market my services. That is because, for many years, my job was about cleaning and cooking the fish that someone else caught. All of the businesses I worked for, had large, well staffed marketing departments, whose jobs it was to go out there and win customers. My job was to manage the money and make business decisions. That works fine if you are a part of a large well structured business. If however, you are the owner of a small business, marketing is not a secondary pursuit to be left to others, it is your primary point of focus. You may have a brilliant product or service to offer, but if you do not have a winning marketing plan, no-one will know about your business or care about what you sell. So, whether you are a small or large business owner, you must get involved and often drive the marketing function. You need to know the following:

What specific need does my product or service meet?
Who are my customers, what do they want and how much are they willing to pay for it?
How sustainable is the demand for my product or service?
What is it about my product/service that makes it unique? How can I take advantage of this?
Who are my competitors and what are they able to do better than me?
How do I reach out to potential customers to persuade them to buy my product /service?
How much money do I have available to promote my business?
What specific marketing/promotion activities will work best for me?

Answering these and other marketing questions would help you understand your product/service customer appeal and market potential and how it ranks against your competitors’ offerings. This forms the basis of your marketing strategy and business plan and is critical to your long term success.

Capital:

Raising sufficient capital to start and develop the business is very often the biggest challenge that entrepreneurs face. I have seen many, potentially successful businesses, grind to a halt because the owners did not have capital to take it from start-up, to sustainability. A business needs capital to acquire productive assets and fund its operations until the business itself can generate enough positive cash flow to continue as a going concern. Say as an example, you decide to start a restaurant. You would need capital to buy cooking equipment, furniture, renovate the premises to suit your needs, buy inventory, secure licenses and so on. This is what many people understand capital to be used for, the initial investment to start or acquire the business.

However it may take a while for your restaurant to become popular and attract enough clients to provide the revenue to fully fund operating costs. In the mean time you have overheads to pay such as monthly rent, wages to employees, advertizing costs, replenish inventory (drinks you sell and food ingredients you serve) and so on. This is where many businesses fail. The owners hope that the sales they generate in the future will cover their operating costs from day one and do not properly estimate the time it would take for the business to become established, during which the owner needs to have additional capital to carry the business.

Underestimating the point sustainability or “breakeven point” is a common and fatal mistake made by both seasoned and novice business owners. Before you start your new venture, you have got to realistically project your future cash flows and determine if you have sufficient capital to succeed. Here is what typically happens if you don’t do this. You start your new business by investing your life savings. Things go well for a while, but you soon realize that it is taking longer for the business to become established than you anticipated. Customers are coming in, but not in the numbers you first expected. A lower number of customers means less revenue to pay expenses and you quickly find yourself running out of money to pay suppliers and bills as they fall due. Next comes the juggling act of trying to figure out which suppliers to pay first and which ones you will stretch out far into the future. The calls begin to come in from creditors and you now find yourself working for free for a business that you love, but which is slowly dying, because it ran out of capital before it became sustainable. This is the most common reason for business failure and it supports the SBA statistic that it takes 3 years for a business to fail. That is the time the owner takes to realize the painful truth, that he/she never had sufficient capital to start the business in the first place.

Faith:

These four items, Owner Discipline, Due Diligence, Marketing Strategy and Adequate Funding are the main, universally applicable business ingredients needed to operate a successful business. There is however one more ingredient, which is personal to each business owner, and that is “faith”. I said earlier that business owners are either the most optimistic or the craziest people on earth. That is because we take risks with our capital as an act of faith, hoping for a successful outcome. It takes faith to start a business. But what is faith? It is an expectation that things will work out, or materialize, as we hope or believe. It is what gives substance to our hopes and dreams. The Bible tells us that “Faith is the substance of things hoped for, the evidence of things not seen”. (Hebrews 11:1).

As believers in Christ, we have already established a platform of faith in our lives. We believe that an unseen God, who controls the universe, has a plan and a purpose for our individual lives. This plan is made real in us as we place our faith in our Lord Jesus as our personal savior and leader. Now, to everyone else, this is absolutely nuts. But to those of us who have taken this step of faith, it is as real as the air we breathe. Once we get to this point, every additional thing we do that requires faith, is built on this platform. As a result, our decision to start a business, is not based on an abstract optimism that things will somehow work out, but on the trust we establish in our Lord Jesus to lead and guide us.

I believe that when we become reconciled to God through faith in Jesus, an eternal destiny opens up to us. We who were all once distant from God, now draw close to Him and get plugged into His purpose for our lives. Our purpose for our businesses also transitions from simply being a source of personal wealth, to a tool that God uses to bless us and to bless others. As we actively cooperate with God as an act of unselfish faith, He leads us into decisions and opens doors for us, that we ourselves could not open, all according to His will and purpose. Being Christian business owners does not guarantee that we will all be rich and “successful”. It does however give our businesses and our lives an added dimension and very often, if we are committed to God’s processes, things work out to our benefit. Our role is to trust God for the unknown, follow His leading, even when this conflicts with our personal agenda and build our businesses on Biblical principles. When we take this approach, we have the assurance “that all things work together for good for those that love the Lord and are called according to His purpose” (Romans 8:28). This hope applies to our all aspects of our lives, including our businesses.

I hope this information was useful to you and I encourage you to contact me if you have any questions about your business.

Robert.
Website: http://www.christiancfo.com Email:[email protected]

Affiliate Marketing Software: How To Get The Best Results With Minimal Effort

For many people, working with affiliate marketing can be kind of scary. They think they have to learn a bunch of new things without a lot of help. They may think that they have to remember these new things or that they will have to continually go back and forth to the web sites so that they can remember how to do this task or that.

But, for the average site, there is affiliate marketing software which helps in a number of ways. You don’t have to over think what you are doing- you simply download the marketing software and then follow the cues, templates and more. It will allow you to track your progress and can be set up to update automatically.

In many of the affiliate marketing programs, the related affiliate marketing software comes in the initial program, in others, you have to purchase the software that you think you might need separately. In other cases, you may need to make additional purchases as you progress.

For instance, you may climb through different levels in the program that you are taking part of which may mean that you have to get new affiliate software. This is not always the case, however and for some sites, the software that you buy in the beginning will be the only software purchase you will need to make. If you are concerned about that, it is wise to investigate before your make that purchase or join the club.

For some programs, you don’t have to buy the software at all, it just makes things work better and easier. For others, you have to use the software to get the full benefits of the program. It should not matter whether the affiliate marketing software is actually needed or not, or whether it is included with the program- you should have as many helpful tools as are offered.

You might not use the software on day one or even in the first week but as you start working harder and you are making more money, you may actually find yourself needing to have that affiliate marketing software to track your money earned, to keep track of your next program level and to keep track of other factors and information. There is no need for you to be confused at all; the software helps sort things out.

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