The future is bright, the future is digital

Marketing as a key ingredient in successful commerce is well established, as is the fact that it costs money. That fact is never more keenly felt than in small and medium sized enterprises (SMEs) where resources, particularly those dedicated to marketing, are often tight. The question of whether to include digital marketing platforms is frequently consigned to the ‘not now’ pile or the ‘don’t know how’ pile or even the ‘poorer cousin of marketing’ pile.

Progression to knowledge-based marketing has evolved together with the mediums and mechanisms used by consumers and business to communicate.

SME owners often shy away from engaging in digital marketing because they are not sure it will work for them and they do not relate to it on the same comfort level that they do to mediums such as magazine, print advertising or television.

The tough news is that SMEs engage, and engage quickly, or lose market share and relevance because the way consumers live and communicate has changed and there really is no going back.

The good news is that the SMEs are able to exploit digital marketing as effectively as those companies with seemingly limitless marketing budgets. It is all about finding the relevance and arming yourself with the right digital technique that is going to drive the greatest return on investment (ROI) – be it awareness, customer care, services, purchase consideration or even purchase.

Below is a quick guide to the ‘what’ and the ‘how’:

How can SMEs use social media to create brand and product awareness effectively?

As with any marketing platform, consider what your business objectives are, as well as the consumer journey (play where they are playing).

Increasingly, consumers no longer trust advertising, but do trust their network of real-world and digital friends. As an SME, you may be better able to integrate into that sense of ‘community’ via social media than a corporation is able to do. It is all about being authentic and real. A bakery in London notifies its customers via SMS and Twitter when its bread is fresh out of the oven.

But just because social media is instant and potentially easy to use does not make it a no-brainer. Do your homework and plan a digital marketing strategy as you would any traditional marketing strategy. Know your touchpoints and target group, set desired outcomes, and gather market intelligence or research by engaging with your customers to find out which digital mediums they most frequent or prefer i.e. Facebook, Twitter or SMS.

The simple steps are as follows:

• Listen to what is being said in the digital space, by whom and where (e.g. competitors, consumers);
• Monitor these conversations, dialogues, likes and comments;
• Devise an engagement plan (including a rolling content plan) and do not underestimate the resources and expertise required;
• Set up a governance policy behind the engagement plan (rules of engagement);
• Engage with honesty and transparency; and
• Monitor and evaluate on an ongoing basis.

What are the cost implications?

Can I afford it?

The truly exceptional characteristic of online marketing is that it is measurable. Consider it a sales cost. What do you pay per sale in the traditional marketing world?

Remember that while access to social media is essentially free, you must cost or budget for the resource time it takes for you or a member of your staff to update, monitor and engage your customer network online.

Cost implications are elastic and scalable. You may choose to engage in an SMS campaign that targets only your top 50 clients, or one that targets the top 500. Know your budget and, within your planned strategy, define the tactics most appropriate to achieve your desired outcome.

A simple but cost-effective digital technique for attracting more customers is the Google advertising network, AdWords. You can connect with potential customers at the magic moments when they are searching for your product or service. You can display your adverts and only pay when people click on them. Essentially, this means you are paying only for qualified leads.

How to plan an online strategy for SMEs

Consider what your business objectives are, as well as your other marketing initiatives; ensure they integrate with a consistent brand message or call to action.

Investigate the digital landscape as it pertains to your target market. Are they news junkies, focused on fashion, sports-mad, or all of the above? Where do they go online to have their voice heard and talk to their peer group or community? Know that, and you will have a clearer idea of where to begin your digital brand conversations.

Once you have the platform, plan the content and ensure it answers a specific need in a way that is credible, believable and appropriate. Know what you want to achieve and map out the most relevant digital technique.

What are some of the questions to consider before launching a Web or online campaign?

Ask yourself the same questions you do whenever considering budget spend: Does this offer value to my customers and to my business? Is this where my customers play?

If your target market is in a lower living standards measure, do not assume an immersive and engaging website will do the trick. Consider the difference in Internet penetration of personal computer vs mobile in South Africa for this target group (twice as many people access the Internet via their mobile devices than the PC). If their budget is tight and they are cost-conscious of Internet charges, a great functioning mobi site, “Please Call Me”, SMS or mobile advertising campaigns are likely to be the best options.

What is true and what is not about the state of connectivity in South Africa?

Driven predominantly by the proliferation of mobile devices able to connect to the Internet and lowered data costs, connectivity levels are surging ahead at an astonishing rate. Approximately six million South Africans access the Web from their desktop and 13 million via their mobile phone – with a three-million crossover. It is estimated that this will climb steadily for accessing via PC to at least eight million people; and at least by 15 to 18 million via mobile phones by 2015.

The biggest factor driving penetration will be the cost of mobile devices coming down, combined with data charges. So, it is a safe bet that your business can find a viable market and customer base within that number.

Which is better in South Africa today: digital, or traditional advertising?

The question really ought to be: what is the best way of engaging my customers so that they will buy my products or services?

Brand advertising will continue to be effective using traditional media, as it enables you to transmit a static message to a large number of people (arguably greater reach). It is a different story when it comes to running sales campaigns, as these now need to be cognisant of the conversation space offered by social media and digital platforms.

The ROI afforded by permission and conversation marketing far outstrips the measurability traditional platforms can offer. In simple terms, the technology exists to engage customers and potential customers at the right time and in the right place, albeit virtually, so it would be foolish not to use it. In sales speak, it is the difference between the staff member who can source leads (the opener) and the staffer who can ensure the deal happens (the closer).

In summary, digital marketing offers businesses the perfect end-to-end solution from awareness building, aiding consideration through to purchase – all online, seamlessly.

Change is a constant in any business, and change in consumer behaviour – driven by technology, economics or circumstance – is change ignored at your peril. Ensure digital communication with your customer and potential customer base lies at the heart of your brand strategy, and take advantage of the opportunities.

www.irvinebartlett.co.za