Digital marketers can no longer just be the people who load and optimise ads across programmatic ad platforms. They also need to understand the customer metrics that drive the profitability of the business.
Often, brands ask their digital agencies what the industry norm is for the following:
- Cost per click (CPC),
- Cost per lead (CPL), or even.
- Cost per acquisition (CPA).
Brands presume that the agency will know whether their marketing is efficient and effective, in addition to if their cost per engagement compares favourably to the average in their sector. However, marketers would gain a far better grasp of ROI if they were able not only have a good understanding of CPC, CPL and CPA, but also the customer lifetime value (CLV) of converted customers in addition to the cost of sales (COS – media spend as a percentage of the revenue which is generated).
The Value Of An Integrated Marketing Approach
According to digital marketing experts, the average consumer needs to be exposed to a product at minimum seven times before they commit to making the decision to purchase. This number appears almost attainable for just one marketing strategy, however, by combining two different marketing strategies this number becomes smaller and within reach.
An online-offline marketing approach is increasingly more popular among big and small companies. In fact, several studies reveal that 47% of companies today have an offline strategy in order to awaken interest and strengthen online traffic. In addition, 68% of companies make use of an online marketing strategy in order to promote brand loyalty, which is a conventional goal of offline marketing.
O2O Commerce Unpacked
In Online-to-Offline (O2O) commerce, organisations treat their online and offline marketing channels as complementary as opposed to being of competitive. Some examples of O2Oinclude:
- Click and collect – where customers purchase products online and then pick them up in-store
- Online shopping that takes place during a physical visit
- Returning items that were bought online to a physical store
A total of 76% of consumers who search for products or services in their local area end up visiting a shop within a day. Many of these visits result in purchases. Over 80% of retail sales will happen in stores to 2021, and possibly beyond. These stats make it clear that an effective marketing campaign can’t afford to overlook offline strategies.
Unfortunately, almost 90% of brands aren’t set up to cater to these consumers’ growing demands for online shopping. Consequently, many brands are falling behind, leaving customers unsatisfied with the service and experience they get in physical stores.
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