Any business, especially a small business, is interested in two things: profits and increased profits. Determining your profit margin is, in theory, reasonably straightforward. You subtract your total expenses from your total revenue.
To increase your profit margin, you can work on increasing sales, decreasing your operating costs, and increasing prices. In addition, you can upsell your current customers. Nevertheless, as anyone in business will tell you, it’s not always that easy. Raising prices alone can have a strong negative effect and can decrease your profit margin dramatically.
Digital marketing is one of the most widely available ways to help increase your profit margin.
Leveraging Collected Data For Decision-Making
What works and what doesn’t? Can anything be improved? It’s time for a little analysis to find out.
- Assemble a timeline of your marketing activities from the previous year. Now gather your performance metrics from Google Analytics and compare the dates. What kinds of trends become evident from the data? Where and when were your conversions most active?
- Once you’ve determined which were successful and which were not, work on two things:
- Replicating the successful campaigns
- Avoid repeating the unsuccessful campaigns
- Do the right people see your campaign? Determine if your audience is the correct demographic for your message, and change your target strategy and, possibly, your ads. You want to attract the right traffic and increase your conversions.
- What channels are working? Compare your site’s performance by channel. Which one is bringing in the most qualified leads, which ones need additional optimization, and how you need to adjust your strategies and spending for each one.
Google Ad ROAS (Return On Advertising Spend)
Increasing your ROAS is one of the most effective ways to improve profit margin. Better returns mean better conversion, and ultimately, more sales and profit. This doesn’t mean you should automatically increase your advertising spend, however. You won’t see a return if you do not construct the campaign correctly.
- Who’s seeing your ads? If you’re not targeting correctly, the wrong people see your ads. That leads to a low conversion rate. Review and re-evaluate your keywords to ensure that they match your audience. Want to keep your ads out of the wrong place? Add some negative keywords.
- What’s going on with your conversion funnel? Use Google Analytics to analyze your funnel (use a filter so that you’re only looking at paid traffic). You’ll be able to see where users leave your funnel. Also, you will see where you need to change what is causing them to leave. A simple but effective way to increase conversions is to create a separate landing page just for your PPC campaigns. Tailor landing pages to be more relevant for the ad and the channel. Use the keyword specific to the stage of the funnel, such as the research stage.
- Remarketing puts your ads in front of users who have visited your site but haven’t converted. To be effective, you’ll need to segment your remarketing audience to personalize the message. Using customer data from Google Analytics, create specific audiences such as age, demographics, website visitors, etc. You can do this by clicking on Admin>Property Settings>Audience Definitions>Audiences. Now click on Create>New, and add in some parameters for each audience you want to create.
Optimizing campaigns with information from Google Analytics helps avoid the “billboard” approach to digital marketing. A development study by Monetate found that 79% of marketers who utilized personalization.
Unleash Video Into Your Funnel
More and more buyers are not only interested in seeing a video but are influenced by a video. But not all video is the same. The video that explains everything, including pricing, probably shouldn’t be the first thing someone sees, or they’ll make their decision based on the price without understanding everything. Because buying is a process, there are different types of videos that you should strategically add to the three parts of your sales funnel to be effective.
- Top Of Funnel (TOFU)— at this stage, someone is merely researching the possibility of buying your product. The videos you put here are educational and discuss topics that people are researching. Add these to your blog, social media, and landing pages for PPC.
- Middle Of Funnel (MOFU)— here, you’ll educate users more about your product and brand, with videos on your website, where they’ve probably migrated.
- Bottom Of Funnel (BOFU)— these users are either ready to buy, or at least visiting your product pages to contact you. These videos should include customer stories that will further promote your brand, as well as add social proof, authenticity, and credibility.
More Video Content For Social Media
Marketers know that if you want to put your message in front of your audience, the place to go is social media.
Video allows you to explain more about a product, a service, tell your company’s story, or one of your customer’s stories.
Think about it: in 2018, there were more than 3 billion social media users worldwide. Video tweets on Twitter are six times more likely to be re-tweeted than one with a photo. In 2016 and 2017, branded video viewing increased 258% on Facebook and 99% on YouTube.
Because Instagram is a visual medium, the less text, the better. Approximately 25% of the ads posted on Instagram are video. Therefore, make sure they have one single idea.
Putting video and social media together gives you a winning combination. If you can catch the viewer’s attention in the first 30 seconds, there’s a good chance they’ll stay to watch the whole thing.
Wyzowl, a company that creates explainer videos, offers these site-specific suggestions for adding video to Facebook, Instagram, YouTube, Snapchat, and Twitter.
Digital Marketing Outsourced
Do you have time to learneverything about digital marketing? Can you afford to bring in someone who does, or train someone in your company to do it?
Consider contracting with a digital marketing agency. Outsourcing to an agency takes marketing your business off your plate. It’s a great way to increase your profit margin and make your business life easier. An agency has the experts you need , and they’re ready to work on your campaign right away.
Outsourcing your digital marketing gives you time to concentrate on running your company while the agency works on optimizing your marketing to make it more successful.
Increase Your Referrals to Increase Profit Margins
People who have a positive experience with your company are likely to tell other people about your company.
When your new customer becomes your brand’s advocate, they feel a “connection” to brand. That connecction moves them to tell others. Most people would recommend a brand or a product, but not all of them do it. However, referrals can decrease the costs to acquire new customers.
Digital Marketing With More Prospects Now
If you haven’t tried digital marketing for your business, there’s never been a better time. Increased traffic, increased conversions, and sales mean a more significant profit margin. But you can’t get there unless your customers know who you are and how to find you.
Contact More Prospects Now today to learn more about how we can improve your digital marketing plan and get your message to customers looking for you.