One Size Does Not Fit All
Successful businesses understand the need to partner with suppliers and vendors who listen to problems before pitching solutions.
Is there a bigger red flag than people on LinkedIn who describe their job title as ‘helping businesses grow’ yet fail to hold a proper conversation on how to grow your profitability or incremental revenue?
Let’s discuss.
Will Digital Marketing Help You Scale Profits?
Digital marketing is not a magic wand. However if you offer a desirable or in-demand service or product then it’s entirely possible to use digital tactics to be more profitable.
The idea you have to spend money to make money while true, comes with the kind of caveats navigated best with experience. Or a mentor who’s been in your shoes.
Everyone else is mostly likely connected to a sales pipeline, and getting you to spend more money regardless of what you need.
Investing in the right things to increase profitability and create incremental value is a conversation every business needs to have with their digital agency.
If it isn’t the last beer that gets you drunk, allocating marketing spend has to be throughout the entire funnel. Profit doesn’t come from the last step alone.
Improving Your LTC:CAC ratio
For marketers, understanding the relationship and ratio between customer lifetime value (LTV) to customer acquisition cost (CAC) is a top priority.
In one of the last steps in marketing, promotion, the most common services in performance marketing is Google PPC Advertising and Facebook Ads.
Both Google and Facebook, and most agencies brokering their ad services, have targets to hit. These targets need companies to spend more money, not less.
The task of reducing cost and increasing profitability in paid media was easier before everything was switched over to training machine learning models which requires scale and, you’ve guessed it, more money than you might have needed previously.
How convenient.
As discussed in issue 11, every business can learn from frame control and pricing. Marketing is about more than promotion.
Profitability is about connecting with the right potential audiences, potential clients and potential customers. More clicks or visits to your digital footprint across the internet doesn’t make you more profitable. Less brand aware visitors are unlikely to convert at the same conversion rate as people who recognise your company name.
The relationship between your company or firm’s current level of fame, and the quality of products and services it provides, is correlated to how scalable your promotion tactics will be.
Before you invest in any digital marketing tactic, how and why you need to improve your LTV: CAC ratio is a must.
Successful businesses learn how each digital tactic scales and invests accordingly.
News 📰
Ayrshire: Latest updates from the ayrshire chamber supporting business. - LINK
Glasgow: cyber firm fires security warning. - LINK
Edinburgh: Tech firm’s growth supports hospitality bounce-back. - LINK
Aberdeen: How it can pivot to becoming a world-leadindundeeg net zero cluster. - LINK
Dundee: Plans for a 10,000-capacity arena at Dundee Waterfront. - LINK
SEO #1: How does the geographic location of a web server affect SEO? [Video] - LINK
SEO #2: What Is Google Passage Ranking: 16 Key Points You Should Know - LINK
PPC: Google Shopping Experience Scorecard Will Promote Merchants In Search That Provide Excellent Customer Service. - LINK
Paid Social #1: Dear Meta: An Open Letter From Direct Response Advertisers. - LINK
Paid Social #2: Verify Facebook Ads Results with Unique Landing Page and Form. - LINK
And Finally… 📌
The definition of local no longer means small or isolated. You could be a nationwide grocery chain like Tesco, a solicitor network across Scotland, or even a Greggs bakery.
Your passion and deep understanding of your industry needs a way to be shared with your local community and beyond. Find your angle, and as we discussed back in issue 9, boost business growth with fame focus.
Local PR done well can even turn into national exposure if the headline can tap into trending topics such as word games (Wordle), sport (GB Winter Olympic Gold for curling) or eco-benefits (company initiative to ban single use plastic). Endless opportunities!
For inspiration, search the news tab in Google using “your-town your-industry news” so that could be “ayrshire legal news”, “glasgow opticians news” and so on. See for yourself what stories are getting covered in your own industry right now.
Whatever type of content you create, successful firms and companies know it has to grab attention. Even if that means your own branded sneaker.
☎ If growing your profitability is important, give us a call on 01292 844899. If you’re in a hurry, email claire@bigponddigital.co.uk and let’s set up a call to chat.
Until next time - good luck!
Andrew @ Big Pond
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