Building and maintaining a list of potential customers is one of the most effective things a business can do to generate sales and improve profit margins especially when launching new products and services in a competitive marketplace.
Let us put it into perspective, if you are a new online retailer that is selling, for example a range of scarves then you could simply start a relevant Google Ad-words and Facebook advertising campaign to your target market to start generating sales. In all likelihood you will probably start to see some regular sales come through if the campaign has been set up correctly and you and your business will probably be thinking “why didn’t we do this earlier as this is easy” but lets not kid ourselves as selling through Google and Facebook can be expensive and kill your margins especially in a competitive marketplace. Just one solitary click on an Ad-words PPC campaign can cost well in excess of $1 and with an average of 2% of visitors to an online store actually making a purchase this could mean in this example a $50 up front cost before a sale is even made.
I wouldn’t however start rushing back to place ads in Print media and TV advertising but you will need to tweak Digital marketing to work in your favour. The key is to always look at what your profit margin is before you start any marketing campaign. If you are selling a highly priced item or service with good margins then you can afford to take a bit more of a risk with Digital marketing and allow the adds to speak for themselves plus you can bid higher to get more clicks and hopefully more sales. If like most businesses you are working on tight margins and selling low cost services and consumer items then the best thing you can do to build your business is build a list.
Rather than specifically directing your ads to entice a one off purchase, why not try advertising via Google Ad-Words and Facebook Marketing a discount code or free trial offer of your products or service. A simple “10% off discount code available now but expires tomorrow!!” could dramatically improve your click through rate
You will be surprised how many new subscribers you get registering for the discount code and you will be surprised how effective it is turning these prospects into customers by sending them reminder emails and new offers. It all comes down to “Fear of missing out” and once they have made an initial purchase you can remarket them with new offers, new products and new styles, the list really is endless. This method has been proven to dramatically reduce your overall initial marketing costs, bring value to your business and increase your overall profit margin.
Here at Insider Media our team’s expertise is in helping our customers maximise sales and get the most from our customers. Contact us now to learn more.