That’s right! There really is no secret to digital marketing. Yes, there are literally tens of thousands of ways to implement digital marketing and its tactics, and it’s very easy to get distracted by the latest ‘hot tip’, but at the very core of digital marketing is a single formula, and it is shown below:
CUSTOMERS = TRAFFIC x CONVERSION
To put this in some context, this means that if 1,000 people visit your website and your website converts at 2% (2% of visitors convert to customers by buying), then 20 people on average will have bought something.
In essence this is all there is to digital marketing. You need to drive people to your website and then convert them into customers.
So if the basics of digital marketing are so simple, how come so many businesses get it wrong. To start with, most businesses don’t measure anything, and if they do, they measure the wrong things. Additional, many businesses believe that their situation is unique and it’s not possible to apply this formula in their situation.
Every business should know their website conversion rate along with their return on investment (ROI) each month. If you don’t know these and you are already doing digital marketing then you are probably throwing money away. By the way, your return on investment should always be at least £2 for every £1 spent.
You need to learn to think of your digital marketing as a funnel.
At the top of the funnel you have TRAFFIC – people who visit your site via Google or paid ads. At the bottom of the funnel you have newly acquired CUSTOMERS, people who have bought your product or service online or over the phone.
Now, this is a very basic example of a funnel, and in the real world for most businesses the funnel will have more levels and intricacies, dependent on the size and complexity of the product or service being sold.
The point of this blog post is simply to plant in your mind that the essence of digital marketing is very simple. Despite the tens of thousands of tactics you might come across online, always be thinking how can this help me:
- Get more traffic
- Convert more of that traffic into customers
That really is all there is to it!