When SME first started their businesses, they tend to be overwhelmed with the nitty-gritty of setting up and growing the business. Many tend to focus on the conventional and traditional methods of advertising like printing leaflets, banners, road signs and brochures to have more customers.
In times of economic crisis, merely offering good products and services will not ensure recurring customers base. It is time for business owners to reach out to their potential customers during Covid-19 pandemic. Competitive business owners will not just sit and wait while complaining that their business had been badly hit by the economic crisis and Covid-19 pandemic. Digital Marketing is the solution many SME are looking for to save their business from closing down.
The 5 main reasons SME needs Digital Marketing during Covid-19 pandemic are as follows:-
Digital Marketing Can Reach Larger Group Of Customers
The internet has become an essential part of our daily life. The World Wide Web connects everyone globally without boundary. With e-marketing, it allows business owners especially SME to find new markets and potentially compete worldwide with only a small cost. Small businesses should consider the huge marketplace of prospects online to not only survive but thrive in this economic crisis.
SME might believe that they do not have sufficient time or the money to be competitive online as compared to corporate giants. In the midst of facing so many challenges all at once during this economic downturn and Covid-19 pandemic, many SME owners may prefer to take things slowly and to cut costs, especially advertising cost and to only fork out the essential costs to wait for a better economy.
Some SME owners may even think that the best strategy is simply to wait for customers to go to their shops and that having a small number of customers is immaterial as they are small businesses.
This is an outdated way and not an effective approach. There is never a guarantee that your business will attract customers just by existing long enough until the economy recovers and even if it does, SME may not attract as many customers to make the business become profitable as the bigger businesses will compete fiercely to attract more customers and higher return on investment.
Are you one of the SME owners who have been avoiding digital marketing because you think that you are not ready for change? There are many digital marketing agencies that can help you to market your business in the digital world and attract more customers instead of wasting your precious time to figure out the digital marketing ins and outs.
Digital Marketing Is More Cost Effective Than Traditional Marketing
When SME owners market their products, what are the main objectives? Many SME would hope that the marketing campaigns reach more potential customers so that they have more customers and more sales.
However, running marketing campaigns and advertisements might reach millions of audiences but the campaigns do not necessarily reach the SMEs targeted audience which would then render the money spent wasted and efforts futile. This situation often occurs for traditional marketing. With small capital and margin of errors, SME owners cannot bear to waste their precious resources.
With digital marketing, SME owners have better control over their targeted audience with limited amounts of money spent. Digital marketing enables control of the audience and the ability to dissect huge demographics and reduces them down into targeted groups to focus on specific types of potential customers, which are the persons most likely to purchase what the business is selling.
As a small business, every dollar that the business spent matters. The same value of advertising spent in traditional marketing most likely yields lower results compared to the amount of money spent in digital marketing. It used to be very difficult for small businesses with restricted budgets to compete with larger businesses for prominent and high traffic advertising space. However, with affordable digital marketing tactics, small businesses can now achieve better marketing results.
Digital Marketing Generates Better ROI
The return on investment (ROI) as a result of digital marketing can be indirect at times. A Forbes study found that the sales of companies using social media increased by 78% compared to businesses that do not use social media. According to IBM, a lead through social media is 7 times more likely to become a paying customer. This is good news for SME owners because the owners are spending less money to convert potential customers who will become their paying customers.
Email marketing is renowned to have the highest ROI of any digital marketing method which can generate as high as 3800% return. That means that the SME owners get RM38 in revenue for every RM1 spent. Approximately 20% of companies are yielding as high as an ROI of RM70 to RM1 spent which is often accomplished through a combination of social media marketing and content marketing, which on their own, these marketing methods have an impressive ROI.
Content marketing can generate 3 times the leads for about 62% less than traditional marketing by marketing to people who are very likely to buy the products and services and become loyal recurring customers as digital marketing facilitates and nurtures relationships with targeted audiences. SME owners aspire for better ROI and with digital marketing it is achievable and caters to the limited resources of SME.
Digital Marketing Provides Better Fighting Chance For SME
Big companies like Tesco moved to town and the sales of existing sundry shops in that town dwindled and were forced to close down because their customers no longer buy from them. Starbucks started operating in the new township and within the year the nearby coffee shops will be closed down or their business will be badly affected.
The online equivalents of this situation are Amazon and Taobao. SME owners know very well that it is hard to compete with the big corporation or established brands even when SME allocated a big portion of money into marketing. SME owners would dream of being on the same playing field as the corporate giants and have better shots at being discovered by potential customers.
This is where digital marketing shines hope to SME owners. Since Digital marketing is able to assist SME to have a top ranking position by subscribing to SEO services, their potential customers when searching for the similar products and services, SME can even outrank the big companies. As the cost for engaging SEO expertise is much lower than traditional advertisements, SME owners can easily afford to invest in social media marketing or SEO for their website. SME businesses may not be able to outbid big companies on the most popular keywords searches but potential customers can still search and see SME businesses optimised by SEO alongside big companies.
As SEO optimised SME websites are much easier to be searched by potential customers, SME owners can now save on printed advertisements or billboards to ensure potential customers discover their businesses. An expertly optimised SEO web page can outperform over larger companies by engaging the assistance of digital marketing.
Digital Marketing Facilitates Interaction With Customers
Digital marketing enables business owners to create interactive campaigns using music, graphics and videos. Through two-way communications SME owners can engage with their audiences and give the audiences greater involvement and control over their experiences with the campaigns. The more the prospects know about the business, the more they trust the business and tend to purchase more from the business that they know.
As digital marketing allows you to engage with prospects through social media or blog, running surveys and analysing their responses to the surveys is crucial for SME owners to get to know their audiences which will help SME owners to identify their targeted audience to smaller specific categories and what products or services the potential customers are looking for.
By interacting with prospects digitally, it is a faster and efficient way to get to know what they are looking for and their problems that they are seeking for help. There is no need for any guessing game with the assistance of digital marketing.
People nowadays are more interested to watch videos as compared to reading newspapers. People are much more likely to buy from businesses that they have some knowledge about and with just a minimal cost, digital marketers can help SME owners with tight budgets to interact and catch the prospects attention.
In short, to reap the benefits of the digital world and to catch up with the ever changing business world, SME owners should start to transition from traditional business methods to launch their businesses with the aid of digital marketing to boost sales and revenue. Find out how to make this transition with the trusted online marketing partner, iPrimaMedia.