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Why is the Advertising Boom Eluding Businesses?

Why is the Advertising Boom Eluding Businesses?

Digital Marketing


Last night, a client I’m managing for contextual advertising asked me a thought-provoking question that got us thinking. While addressing the query, we uncovered critical business “gaps” through which sales seem to “leak.” We decided to share our findings in this post to help you avoid these pitfalls in your own projects.

To shed light on the issue, let’s talk about the two facets of marketing: “external” and “internal.”

“External” marketing aims to attract new customers, while “internal” marketing focuses on retaining existing ones, particularly those interested in our regular products.

Here’s how “external” marketing typically works: we create compelling advertisements to draw potential customers from various platforms, such as banners, radio, internet advertising, and social networks, where our target audience resides.

Once intrigued by the advertisement, potential customers are directed to our well-crafted landing pages (websites, blogs, or online stores), where they are encouraged to take specific actions.

The prospective customer then enters our sales department as a lead, and it’s here that the skill of our sales team comes into play. They must convert these leads into satisfied customers.

However, the journey doesn’t end there. We believe in the power of “internal marketing” – the post-purchase experience, product satisfaction, and customer interactions all have a profound impact on our business’s future revenue. The loyalty of our customers plays a crucial role as they might recommend our products to friends and acquaintances.

Remarkably, in many businesses, sales to loyal customers contribute up to 70% of the total revenue!

In our sales planning, we always take into account both potential sales to existing customers and new customers. It’s common to have a 70/30 split, with only 30% coming from new customers.

Yet, we’ve noticed a common trend among many businesses; they tend to prioritize attracting new customers. While this pursuit is essential, we must not overlook the cost factor. Acquiring new customers can be expensive, as we strive to divert them from their usual purchasing habits.

On the other hand, selling to existing satisfied customers is much easier and cost-effective. When a customer is content with our service and product, they are more likely to make repeat purchases and even recommend us to others.

Now, let’s address the “gaps” that can lead to the leakage of potential sales:

  1. Low-converting landing pages that fail to engage the audience effectively.
  2. The absence of a dedicated sales department or the presence of sales managers with inadequate qualifications.
  3. Neglecting “internal marketing,” which involves nurturing relationships with loyal customers.

To put it simply, imagine pouring water from one leaky bucket into another multiple times—the water will inevitably spill out! Similarly, expecting an advertising boom without addressing these gaps is unlikely to yield the desired results.

We’ve observed that even at the stage of attracting new customers, poorly optimized advertising campaigns can contribute to the problem. Through our experience and expertise, we’ve worked tirelessly to ensure our advertising campaigns achieve impressive results: a click price of $0.30 and an impressive CTR of 17%.

We take pride in considering our “bucket” watertight, but we must also be mindful of the subsequent steps. If the water is poured further into “leaky buckets,” the business may not experience the anticipated surge in sales.

At Ontario.Marketing, we are dedicated to providing top-notch services, focusing on both external and internal marketing aspects. Our goal is to help businesses thrive and achieve lasting success in the competitive world of advertising. Let’s work together to ensure your marketing efforts yield outstanding results, and you witness the advertising boom you’ve been aspiring for.

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