Master plan: how to achieve low CPA and high ROI in your marketing plan
Whatever we start, we start with general ideas and search for our first questions. For example, if we decided to launch a project or move business online, we surf the internet to find out if it worth.
Let’s imagine a person, we’ll call him Mr. Black (let’s suppose he is the owner of a toy store). Peter Drucker once said: “The aim of the marketing is to know and understand the customer so well the product or service fits him and sells itself.”
Having read several marketing strategy books, he realized that time have changed and he also need to change something — move to a more convenient platform for his buyer. He suddenly saw that many novice moms prefer online shopping than tedious hours-long trips in search of a lost toy, and decided to launch his first e-commerce website.
He set $10, 000 per month on digital marketing as starting capital. The trial period has to end in 6 months. He wants to see if it works. What does he need to measure? Right, he needs to see if the website generates sales at a profitable rate.
We will ask some questions to think about:
What is needed to make before you will advertise the brand? — You need to create an effective marketing strategy.
What is the marketing strategy? — It is a part of a business plan that is responsible for finding customers for you business. The strategy includes the information of how your business fits into the market and tactics or actions that will help you to achieve your marketing goals.
Which marketing strategies would be more effective to show positive ROI to Mr. Black? — This answer we will expand and compare three effective options that can show high ROI and low CPA.
Every marketing strategy depends on time and budget. Mr. Black made up a good plan but with one little omission: every marketing strategy should be focused on maximizing conversions and sales in a short period.
Technological advancement showed that each newbie and experienced businessman have realized the importance of digital marketing strategies use. It doesn’t matter if your business is small, middle or big, the aim of gaining success and growth is common: to reach high ROI and low CPA. Let’s consider three digital marketing tactics that are still working.
Tactic 1. Use social media platforms like Facebook and Instagram
Today Social Media platforms are the places where people prefer to hang out. It is convenient to make there friends, keep track of events, and do shopping. That is why SMM can be really effective, especially for a B2C model.
Facebook and Instagram have targeting options that are based on specific demographics. You can set up advertising based on location, age, gender, interests, profession, lookalike profiles, etc.
A social media marketing strategy is a summary of everything you want to do and hope to achieve here. The strategy guides your actions and helps to know whether you have succeeded or not. Every post, comment or reply should serve a purpose. Take a time to advertise.
The ad appears alongside the other organic content which helps to establish a sense of trust to your brand. Effective CTA button drives the traffic to the page of the service or product. Facebook also has the emojis (user reaction on the post), and you can research or monitor your competitors and see what users like the most.
Instagram is suitable for visually-engaging content. If you want to have good results, then work on high-quality photos with interesting and beautiful compositions, attract content and compelling videos. Due to the extensive targeting options, you can really adapt your content to user interests.
The more you relate to the customers, the easier conversions and user engagement are. SM goals to the brand awareness increase, high quality of sales, creation of a loyal fan base and high ROI of course. To achieve this the platforms use the same principles as ad promotion in apps. Cost-per-click (CPC) is the most famous payment system, marketer or advertiser pays only for each click on the advertisement by a customer.
Gabriel Shaoolian a founder of a global digital agency recommends spending ⅔ of the budget on SM advertising. From there you could spend the remaining budget on marketing channels that can generate return traffic.
What are the prevalences of SMM?
The first time visitor is the most expensive visitor to your site. In fact, in most industries, about 3% of the first time visitors convert into sales or leads. Returning visitors convert at over 10% rate on average.
Familiarity with your brand makes the customer feel more comfortable. On average, retargeting ads are 76% more likely to be clicked on than on regular old display ad.
Tactic 2. Don’t forget about ads retargeting
Retargeting is an effective method to re-engage those users who left your site without any actions. You can track your visitors with the help of Google extensive list of retargeting options, or with the program Ad Roll. Use retargeting tools to reconnect with people who have visited your website but haven’t converted.
The convenience of using such tactics is financially beneficial. When you use retargeting ads through Google, you pay only if the ad was clicked by the user. Thus, the number of impressions or views of your ad is free for you.
You can retarget users in a variety of different ways (depending on budget and needs). Cost allocation on advertising spend on retargeting is more effective than traditional advertising. Why is that? Well, because you target users that have already interested in something in your offer.
Do you have the experience in advertising and you know your business benefits; you know what your customers want and you can provide it to them? So, give them what they want. Use the retargeting to be closer to your client, and for god’s sake, don’t use the same ad for new customers and for retargeting.
For example, HubSpot, a developer, and marketer of software products decided to dedicate the retargeting content on a common objection. They already know that the main reason why business owners do not dare to purchase the CRM system is their belief that it will take forever to set up.
Their ad work with this fear reassuring the advertiser that set up will take only 25 seconds. It will also save their time in the long run. The retarget audience has to know the prospects of your brand.
If you want high conversions, work on retargeting ads. Users have to know your brand.
So, let’s go back to our example with a toy store owner. According to our prescription, Mr. Black has to spend more than the entire budget on SMM. It will drive new visits to the websites. Next, we offer to divide the remained budget into two parts. One piece of the pie will go on retargeting ads, and the second half will go toward another digital marketing tactic like email marketing.
Tactic 3. Find out how to upgrade your brand with email marketing
Stop staring at this tactic with them big ol eyes. We know, the last thing people want is more newsletters. A single automation series won’t be enough in 2019. As inboxes fill with more and more emails every day, you have to be different and stand out.
That is right, people don’t want unwelcome emails that don’t represent a special value, but only clutter their inbox. However, you miss one little detail. Yes, people don’t like useless letters, but they like emails that offer something unique and valuable to their personal interests.
Let’s take a look at the statistics, according to technology market research firm “Palo Alto”, during the 2018 year over 235 billion emails were sent in general, among them 124,5 business, and 111,1 customer emails.
The company predicts growth for 2019. It is expected to increase the total number of emails to 246,5, business emails to 128,8, and customer emails to 117,7. The DMAs email tracker shows that email receives the average ROI in thirty times.
Even if visitors don’t want to by or order your stuff, you can always engage them, just offer to sign up for emails. Send the email with exclusive content, inform about discounts, offer promotions (other words, send the worthwhile from the perspective of the user). Have respect for one's promise and don’t send them information that doesn’t carry much information for users.
When you add the CTA button “Sign up”, explain to your visitors why this subscription can be profitable for them. It has to be eye catching for subscribers. For example, receive special offers, exclusive deals, free trial, discounts, etc. Remember, you have the opportunity to encourage potential clients to visit your site or app again, and eventually make a purchase.
In the example below, the baseball park in York sends people a unique “Thank you” letter with the offer to visit the stadium at client appreciation night, spend the time with their family and make purchases with a 50% discount. What do you think, people liked this suggestion? Will they use the offer?
When the marketing strategy is done right, you can be sure that your business will get new customers and more stable income. All these tactics that we’ve described are really important to effectively engage your audience to get back to you and make a purchase.
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