As the year settles into full swing, I decided it would be useful and informative to put together a top ten list of marketing trends to keep an eye on.
Combined, these trends should make for huge marketing advantages for our companies, and a chance to grow ourselves, as marketers.
1. Omni-channel advantage
This past year we saw huge developments in mobile analytics and mobile marketing, which combine in 2014, enabling us to take advantage of omni-channel marketing.
This year, entrepreneurs and marketers need to go beyond just responsive web design and creating supplementary mobile apps to ask ourselves: How are our companies meeting the mobile challenge?
We need to be cross-device compatible and raise the bar on mobile customer experience.
- Are you taking advantage of the feedback opportunities?
- Are you capturing the data and leveraging it for personalisation?
This year it’s all about the omni-channel marketing advantage.
2. Smart objects take over
By now, you’ve probably heard about the Internet of Things but are you participating as a consumer or a marketer? As business managers, we should keep an eye on how these smart objects change the consumer’s expectations around user experience and engagement.
As new gadgets and technologies emerge this year, there will be new ways to leverage these smart objects in our marketing campaigns and more effectively reach our audiences.
3. Content marketing continues to explode
We spent the last year getting our company onboard with inbound marketing and content creation as the way to grow our businesses. From that we saw new tools built, new communities created and new resources emerge to help us make our case.
This next year will bring the solidification of this new arena through things like better content analytics and measurement, new job titles such as chief content officer, while new forms of content will grow in popularity.
I, for one, am most excited to see content marketing bring beautiful, original, inspiring stories to the masses.
4. Paid organic social amplification
This sounds like jargon, I know. But, finally, paid and organic marketing meet, fall in love, and have the most beautiful little baby: Paid organic social amplification.
This year, marketers will turn their efforts and budgets toward paid marketing on social platforms. Twitter advertising, Facebook advertising, LinkedIn advertising are prime with readership and opportunity for us to meet our next customers.
Newer platforms such as Pinterest, Google+ and Instagram will continue to open new ways for us to amplify our content in less intrusive ways to meet customer needs.
It’s like peanut butter and jam. It just works. If you aren’t testing this yet, jump in there.
5. Influencer marketing is now part of your job
Rarely do I see a new channel sweep in, go mainstream, and become part of every marketer’s job. I would say these past few years we’ve seen the rise of social media, and then the mainstream adoption of it and now from that we are left with a huge opportunity to leverage influencer marketing.
This year will bring teams dedicated to social outreach, outlandish influencer campaigns and – dare I say it – a turn toward offline. (Gasp!)
Marketers are now returning back to ‘thank you’ gifts, hand written notes and tangibles to catch an influencer’s eye and build a relationship. We will see more of that in the coming year.
6. Visual web domination continues
Beautiful design continues to flourish. Today’s consumer expects delightful and stunning experiences. Marketers need to raise the bar on their site experiences, product packaging, branding and user experience. No longer will functional design get a passing grade, now we must be functional, innovative and memorable.
How can you message your story visually? We must jump on to photo and video marketing and embrace the power it has to persuade and impress our communities. Design thinking is no longer optional – it’s a market advantage.
7. Loyalty marketing takes centre stage
In one calendar year we’ve seen the biggest brands in the world announce their key focus is customer loyalty, we’ve seen loyalty teams pop up and marketers have scrambled to understand customer loyalty.
We’ve seen a new type of loyalty arise, called reciprocal loyalty, in which not only are customers loyal to a brand through advocacy and brand support, but the brand is also investing back into the customer through rewards, personalised experiences and service.
In 2014 we will see this trend take centre stage. Have you made a genuine investment in the customers that keep you in business?
8. Big data personalisation
In three short years big data took over. Now that we understand its importance and have tools like Tableau available to us to democratise big data, marketers will begin leveraging these insights for hyper-targeting and personalisation.
Things like cohort marketing (the ability to break your audience into like-minded segments), behavioural targeting (targeting based on customer actions) and sequencing (the ordering of campaigns to have the biggest impact) will be critical to your marketing campaign success.
No more spray and pray marketing – big data has brought us the insights we needed to reach the right person at the right time with the right message. Marketing euphoria, unlocked.
9. Snippet storytelling
This year marketers will be challenged to take image and video marketing and tell beautiful stories in snippet form. Concise messaging, consistent branding and emotional content will be laced in everything we do. We will be expected to share a story faster and make that story digestible in emotion-provoking ways.
The copywriters, brand leads, and video ninja on your team will become your best friends. What will come of it? A flood of brilliant stories told in new mediums.
10. Rise of growth teams focused on innovation
This is the trend I’m looking forward to most. The biggest brands have growth teams and the rest of us are following suit. These teams are dedicated to innovation, rethinking protocol and growing new areas of the business.
They are cross-departmental and given the resources to make a huge impact in a short amount of time. Marketers will be the nucleus of these teams, if not the leaders, given our performance-driven and creative experiences. Companies will continue to break the traditional marketing team structure and empower growth marketers to think big and, ultimately, win big.
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An ‘Outside-the-Box’ Approach to the e-Commerce Unboxing Experience
Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.
With a predicted 24,79 million e-commerce users in South Africa by 2021, online shopping is here to stay, making it impossible to escape the predicament of perfecting the art of product packaging. It’s time to think outside the box when it comes to creating a meaningful unboxing experience. Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.
Certain types of product packaging are having a tremendous negative impact on our environment, with 5.35 trillion pieces of plastic debris littering the world’s oceans, and with 269,000 tonnes of this amount floating on the surface – and plastic isn’t the only culprit. Did you know that it’s impossible for Styrofoam to ever be broken down completely? And that 1 million single-use coffee cups wind up in landfill every single minute of every day? These statistics make it obvious as to why it’s becoming so important for business owners to be more conscious about the type of packaging that they use.
Many business owners wonder if their customers really care whether their business is doing its part to protect the environment. According to Forbes and a 2017 Cone Communications CSR Study, the answer is a resounding ‘YES, they most certainly do!’.
87% of the consumers surveyed stated that they always have a more positive image of a company that supports social or environmental issues, and 88% claimed that they usually feel more loyal toward a company that they know supports social or environmental issues.
Thoughtful Thank-You Notes
The unboxing experience should be a unique and personal one, and it should be just as memorable as the experience of utilising the product itself! So, make it all the more special and build customer loyalty by including a personalised thank you note. Address the customer by their first name, thank them sincerely for their patronage and end off by giving them some helpful advice regarding the product, or share an interesting benefit of using it. Go the extra, extra mile by hand-writing the letter too.
Everyone loves getting free stuff. Why not bolster the unboxing experience by sending over a little bit more than expected? Not only will a free sample put a big smile on the face of the receiver, if they actually enjoy using it, there’s also a good chance that they’ll be coming back to order more. According to Shopify, free samples have the potential to boost sales by as much as 2,000%.
When it comes to packaging, make the right choice. Sustainable, thoughtful, memorable. Your customers, and the environment, will thank you for it.
The Facebook Ads Strategy That Can’t Lose
It’s a numbers game.
Running a profitable Facebook Ads campaign is simple. Not always easy, but simple.
There is a formula that can guarantee a profitable Facebook Ad campaign. Once you know the formula and the values to plug in, you’ll never sink money into a losing digital ad campaign again. I know it sounds too good to be true, but stick with me…
The Guaranteed Growth Formula
Here’s the entire formula: CPA < AP
Were you expecting coefficients, remainders and dividing by polynomials? Nope, there are only two values that matter when assessing your digital marketing funnel.
1. CPA – Cost Per Acquisition
2. AP – Average Profit Per Client
If your Cost Per Acquisition, the amount you pay to generate a paying customer using Facebook Ads, is less than the Average Profit you make from each new customer you’re guaranteed a profitable campaign.
Calculating Average Profit
To get average profit per client, sum your total revenue from new clients and subtract what you spent to serve them. Divide the result by the total new clients. For example, if you made $75,000 from 10 new clients over the past year and it cost you $40,000 to serve them, your average profit is:
($75,000 – $40,000) / 10 = $3500 Average Profit Per Client
If your average acquisition cost for similar future clients is less than $3500, your campaign will technically be profitable.
Of course most businesses won’t want to spend all of their profit on acquisition. An average business can expect to invest at least 7 percent but no more than 15 percent of revenue in sales and marketing. If Cost of Goods accounts for 60 percent or more of total revenue, your low profit margin may make it difficult to afford successful advertising. Decrease operating costs by increasing efficiency or adjust your margin by raising prices.
Don’t make the mistake of calculating Average Profit based on revenue only from the first sale. Use at least six months of revenue or your lifetime client value as the basis for your calculation, or you risk underfunding your marketing and sales budget.
Calculating Cost Per Acquisition
Let’s assume you’ve considered all of your marketing and sales costs and determined you can spend $350 per new client on Facebook Ads. Let’s reverse engineer your ad campaign to see if a $350 cost of acquisition is reasonable.
The simplest Facebook ads funnel includes four metrics that build upon each other to determine your acquisition cost. I’ve included standard benchmarks for use as a starting point, but your results may differ:
1. Click-Through Rate (CTR) – Percentage of people clicking on your ad. Your CTR should be near or above 1 percent.
2. Cost Per Click (CPC) – The cost of one website visit. CPC should generally be below $3.
3. Lead Conversion Rate – The percentage of site traffic that becomes qualified leads. This value should be 20 percent or above.
4. Sales Conversion Rate – The percentage of leads that convert to a sale. Aim for sales conversion at or above 5 percent. (E-commerce companies often skip the Lead Conversion stage and have a Sales Conversion Rate of 1 percent or greater.)
If 10,000 people view your ad at a 1 percent CTR, you’ll get about 100 website visits. At a $3 CPC, you’ve spent $300. Since 20 percent of your traffic will become leads and 5 percent of those leads become closed sales, we can calculate that you’ll generate approximately 60 leads and three new customers.
Your estimated acquisition cost using Facebook Ads is $100 per client, which is well within your budget of $350. This cost may rise as you scale and target less optimal prospects, but as long as your acquisition cost is less than $350 you’ll make an acceptable profit.
Complex funnels can include several ads and conversion points, but the Guaranteed Growth Formula of CPA < AP still applies. There’s no immediate reason for concern if your metrics differ from the benchmarks. You can and should split test ideas for improvement if your numbers are far from what you expect, but don’t mess up a good thing until you’ve got a better one.
Optimising Your Guaranteed Growth Funnel
If unhealthy metrics cause your acquisition to cost more than what you’ve budgeted, start with these adjustments:
Click-Through Rate Too Low or Cost Per Click Too High
If your CTR falls far under 1 percent Facebook may stop showing your ads or show them to second-rate audiences causing your traffic to tank and CPC to increase. To improve your click metrics, adjust your ad copy (headline and body text), ad creative (image or video) and highlight the benefits in your offer.
Refine your audience. Tailor your copy, images and call-to-action to the audience you’ve selected and ensure that your audience has the desire and means to act.
Lead Conversion Too Low
If leads aren’t converting at 20 percent or more, either the promise made by your ad isn’t congruent with your landing page, or the process of moving forward is too difficult. Try using the same image and headline in your ad and reduce the form fields in sign-up forms to the bare minimum. Also try retargeting visitors who don’t sign up with ads stating the benefits of acting now, or with a different offer.
Sales Conversion Too Low
If you’re an Ecommerce brand with sales conversion below 1 percent your shopping cart or sales process may have too much friction. Simplify the sales process to decrease clutter, or increase trust by adding testimonials and trust signals near important calls to action.
Your sales process may need improvement, but that is beyond this article. In the meantime, you can still increase revenue by cross-selling and upselling those who convert. You may also improve client retention with recurring contracts. Yes, that’s why many software companies are switching to cloud-based subscription models.
When used properly, The Guaranteed Growth Formula of CPA < AP makes Facebook Ad marketing an investment, not an expense. Using the formula, the most you should ever risk is a small initial budget to test whether your estimated calculations hold true in practice.
If your net profit is 3X your acquisition cost, your funnel returns $3 for every $1 you invest. Instead of asking “How much should I spend on marketing?” The question becomes, “How much do I want to make?” I’ve built a Facebook Ad Growth Calculator that incorporates the Guaranteed Growth Formula to help execute your growth strategy. Input your revenue goal and it will estimate the Facebook Ad impressions and traffic required to reach it.
This article was originally posted here on Entrepreneur.com.
How Is Influencer Marketing Going To Change In The Future?
How is influencer marketing going to be in the upcoming time? Read on.
Influencer marketing is definitely not a new story. It’s been more than a decade now that it is immensely dominating the world of digital marketing. While being extremely cost-effective, influencer marketing strategies have very soon ended up with a great exposure. The businesses are building an immense level of reputation and earning various links with the help of this innovative marketing concept. In fact, the influencer marketing agencies are coming up with new approaches of implementation with each passing day.
Moreover, like any other type of marketing, the trends of influencer marketing are ever changing. Like how the story was five years back is not the same now and it is going to further evolve in the future.
The anticipated influencer marketing challenges
With the continuous growth of social media, influencer marketing is definitely going to face a myriad of obstacles. A few of the most expected ones are as follows:
The demand for influencer marketing is continuously on the rise and eventually, the cost is going up. If you want to enter into the market of influencer marketing and establish yourself as an influencer then you need to give a lot of efforts while building a personal brand and earning the reputation for yourself.
You want to become one among such influencers who’ve already amassed a great following means that you’ll need to make it worth it- sometimes paid promotion could be the right tactic. In the future, this scenario is going to be even more prominent as people will have to spend huge bucks to be a worthy influencer.
In recent times, consumers have gradually started distrusting the huge brands when they realised that the corporations are working for only profit without having the user’s interests in the mind. So, for them, influencers are now no more than some mere conduits for big commercial names. So, it is going to be really tough for the influencers to get the trust of consumers back.
High level of competition
Social media is no doubt such a place now which is teeming with massive competition and threats. Many influencers who are already thriving and the people who have an urge to become influencers turn it into a complicated scenario for you to enter in this space as an influencer in your own right.
How can influencer marketing unfold in the future?
Of course, there are multiple ways in which the entire story of influencer marketing can change in the coming years. Let’s check out some of the most expected developments:
Exchanges will be ahead of favours
The chapter of influencer marketing is probably going to be a pretty much an impartial marketplace in the coming time. The brands are more likely to enter into a mutual collaboration with the influencer marketing agencies in terms of interchanging shares, posts, audience visibility while being more organic rather than asking for the favour of mentioning the brand’s name to the influencers
Networking will be preferred over individuals
Gone are the days when influencer marketing used to be the story of respective individuals. Now, markets are assumed to start focussing on the entire networks or industries. The future influencer marketers can get rid of the problem of being based on individual interactions by getting the insights of blog comments, forums etc.
Change in the concept of disclosure
Why has not native advertising sustained over the long term?
It’s because the publishers always negate to disclose which posts are the paid promotions. In such a scenario, influencer marketing strategies can move a bit ahead of this transparent problem in the future. All that they are expected to do is formally announce the sort of partnership or arrangement that is existing behind each and every content. The experts believe that this process might end up being quite a tedious one. Howbeit, the consumer trust will not be hampered at all.
Limited and sensible partnerships
Influencers might lean more towards self-preservation in the coming days. Rather than establishing a relationship with hundreds of marketers or products, influencers are expected to focus more on developing authentic professional relationships which really make some sense. For examples, the influencers are intended to concentrate more on such relationships which can be profitable for themselves as individuals and also seem to be appealing to their followers. Say, a move towards quality over quantity!
No doubt, the evolution of influencer marketing is not only dependent on the aforementioned factors. There’s much more that can happen. The time can only reveal that. Influencer marketing is certainly going to change on its own in either of the two ways, a more sophisticated one or become a mere peripheral strategy which won’t be completely accessible.
Let’s just wait and watch how it comes up to us in the future!
Aren’t you taking an advantage of the current extraordinary status of influencer marketing in the meantime?
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