The Great Debate: Digital Vs Traditional Marketing

The Great Debate: Digital Marketing vs The Letter Box Drop

I attended a Sydney Marketing function in June this year held by the popular Real Estate platform, RateMyAgent, and led by CEO, Mark Armstrong. His presentation was aimed at addressing the evolution of communication with an audience based on how quickly the commercial environment is changing today. This is both a relevant and tough debate, indeed!

While this event was Real Estate specific, it is a topical discussion being held across every industry and every market around the world in all boardrooms and strategy meetings: digital vs traditional marketing.

Where do we spend our precious budget to get the most cut through to engage our audiences and achieve our organisational goals?

So, it’s finally time to analyse both sides and get to the bottom of this debate.

Where Are Our Customers?

Effective Marketing is all about your audience. This is never up for dispute as we all know it to be true. Knowing that, it may be time to take a step back and consider that age old question: have we thought about our customer?

Recent research shows that 87% of consumers now search online for reviews to determine the quality of a local business, and I’m sure that statistic is pretty similar for how people are researching product information too. This is a big shift in behaviour from only a couple of years ago. Organisations didn’t start this- consumers did. We did. We, as people, changed the game, and organisations today are hugely naïve if they don’t think people are already doing most of their research before even contacting your business.

As An Example

Mark Armstrong said his son needed an internet router for his house the other day, and at first, he had no clue what a router even was. In about ten minutes online, he become a pro with all of the brands, prices and specifications, then went straight into a local store, went to the shelf and purchased it without speaking to anyone in store.

This is very indicative of the modern customer.

The Digital Interview

Today, it’s all about ‘the digital interview’- in other words, searching online to find more information about a person or business without actually contacting them. Online dating, LinkedIn, Facebook, websites- it’s all about research before meeting in person. Around 70% of customers make up their mind before that stage, which is something businesses need to accept and adapt to.

While statistics are always fickle, all you need to do is think about your own customer’s behaviour, and you instantly know this to be true. Hardly ever does a customer go in unprepared or uninformed.

They’re All Online

How often do we go to a bar or a restaurant, and find everyone looking at a screen? It’s a sad reality, but a reality none the less. That is where your customer is! On their digital device.

People aren’t looking for reviews and information in your physical office or in your marketing collateral – they are looking online. So, being there for your audience is absolutely crucial for your business success.
It’s all about your audience, after all.

The Three Arguments: Digital vs Traditional Marketing

There are the three main considerations when deciding the pros and cons of new digital marketing versus more traditional methods, like the letter box drop or print.

(1) Cost
(2) Effectiveness
(3) Accountability

COST

As a general rule, more traditional methods tend to be far more costly in so many ways. It’s expensive to design, print and physically deliver materials like these. Now look at digital methods: it’s almost instant, requires little design due to templates, and the reach is not physically limited, meaning you can get ten times the exposure for around one-tenth of the cost.

They seem to be light years apart on the cost front.

For example, a client came to me recently and told me that the only advertising he was doing was on the back of local shopper dockets, which wasn’t giving him any tangible results, but was still costing him a few hundred dollars a month. For a fraction of this cost, I put his adverts onto Facebook and Google, and he immediately noticed the difference in leads generated!

EFFECTIVENESS

How long do letterbox drops, print media and even mainstream advertising last?
Think about a letterbox specifically. The printed material sits in an office, then in a mail box all day. Then, when your audience gets home, are they truly engaged when they check their letterbox, stumbling in from work? They are coming home with the shopping, or wrangling the kids. This material has literally one second to capture them in amongst the rest of the clutter, and is so easy to ignore. That’s not to say it doesn’t occasionally work, but the chance of engagement is very low.

Now, consider digital ads. It stays online for a much longer time, and due to the customisable nature of online targeting, it can pop up when the customer is more engaged and in the right headspace. It meets them on their terms, like when they are on their phone killing time, or browsing on a website, and so on. They can also interact with it by clicking on it, watching it, zooming in on it, saving it and much more.

In comparison, think about when you hear a radio ad or see a TV ad: you have to remember and recall the advert at a later time for it to have any impact. This means your audience has to spend the effort to remember to act on it at a later time when it’s more relevant, such as when they get out of the car. Making this worse today is that we are constantly bombarded by ads and messages, which means that it’s very hard to keep one specific advert in your mind. You can’t rely on your customer recalling the message – you need to make it easy and at their fingertips.

Digitally, your customer can fully interact at the very point they experience the piece of content, meaning engagement is far greater.

ACCOUNTABILITY

Which technique truly works? What really has cut through and metrics to measure it? If you ask most organisations who spend budget yearly on letterbox drops, for example, they will say things like “$50,000 a year”, and then if you ask them “does this work?”, all they do is shrug their shoulders.

The problem is, some businesses get into a rut of “it’s how we’ve always done it.” This represents a concerning shortfall in our perspective and our priorities. Our industries are too tough and our competitors too smart for us to be thinking this way anymore.

On the digital marketing side, with retarget marketing and tracking cookies, online communication and adverts are able to serve up your communication to more defined and far better aligned demographics. Your adverts are more intelligent because they learn about the behaviour of your audience and adapt to how they consume content, then works out where and when to best display your marketing.

The Three Battlegrounds of Marketing

From the 1960ies, there has been an evolution of Marketing and communication battlegrounds based on how we built our customer database.

(1) The Physical Address

Organisations clambered to obtain the physical addresses of customers to communicate with them physically, either with a sales person, door knocking or letter box communications.

(2) The Email Address

Next, emails went through an effective stage and businesses rushed to fill their databases with everyone’s @.com address. However today, we have found this to be far less effective do the quantity of spam everyone receives daily.

(3) The Computer Address

People live on their mobiles and tablets now- this is where they are today. The battlefield has become exposure based on IP address online. Building a database of tracking cookies has become the Marketing battleground of today.

While these IP addresses are kept private due to Privacy Laws and you never get the actual details, it doesn’t matter as you can rest assured that this technology is getting your message in front of the right people. Then tracking success comes from the metrics and analytics behind these interactions.
The core essence of Marketing hasn’t changed across any of the above battlegrounds: it’s always been about reaching your audience. The only thing that has changes is how- and this is a direct result from how the marketplace and consumer behaviour is evolving.

What is it about Digital Marketing then?

Digital Marketing is effective because it is customisable. It can target specific demographics to ensure that the best audience is getting your adverts and content at the right times.

The following are three combined ways of how digital marketing finds your audience.

(1) Location

Google tags computers with a geographical location. While letterbox drops can do the same, location is where the comparison ends. Digital is able to combine location with the following two qualifiers to ensure that your message is tailored, rather than mass distributed to just anyone.

For example, in the Real Estate industry, around 70% of residences are investor controlled, which means letterbox drops are ineffective because the people receiving the materials are not the decision makers and therefore not finding themselves in the hands of the right people. Digital equivalents would use location and the following two to ensure it is being fed to the right customers.

(2) Browsing History

It is the fact above that allows digital marketing to take it one step further. The history of your browser paints a picture of the type of person your customer is and their interests, which means that adverts can be served up to match this. It’s not a perfectly accurate science, however due to the cost effectiveness of digital marketing, it has a far better cut through and success rate.

(3) Remarketing and Tracking Cookies

As you move from website to website, tracking cookies embed themselves into your web browser to allow the content be catered specifically to you, so you are not receiving irrelevant messages. This allows advertising content to be shown to a relevant audience rather than just anyone.

Where is Marketing Heading Next?

Given that digital marketing is following around your ideal customer and delivering them relevant content, it seems to be working effectively at the moment. However, if I know Marketing the way I think I do, the next stage will be empathetic retarget marketing, which means showing the advert not just anywhere on any website, but when the person is browsing material that is contextually relevant.

For example, when your customer, who has already been identified as interested in Real Estate, reaches a Real Estate or property website, the ad will be displayed, as opposed to how it is now, where it comes up on any website they may be looking at.

It’s all about being in front of the right customer when they are in the right frame of mind.

From Gas Engineer to Successful Business Owner – My Rocky Journey

Everyone thought I was mad. Even my Grandmother looked up at me from her deathbed and said “Don’t do it!” the day that I announced that I was going to leave my well paid job as a gas service engineer to start my own business.

For years I had dreamed of starting my own business and now I had taken action (and a massive loan from the bank) and opened up a convenience store and post office. I figured that people always need to eat and therefore opening a shop selling food was a guarantee for success.

Did I enjoy overnight success? NO.

The reality was that I ended up working 18 hours a day, seven days a week for 9 months, sacrificing valuable time with my young family in the process, before finally things started to improve. I went on to open another two stores and won many national competitions including an all expenses paid trip to New York sponsored by Sir Richard Branson.

I thought that I had finally cracked it. Life was good, or so I thought. Then a Superstore opened up nearby and my landlord also opened up a convenience store next door to me. Suddenly my sales dropped.

How did I survive?

I looked for new ways to make money in my stores. I added new lines and introduced more promotions and slowly my customers returned to my store and life was good again.

I then decided to embark on a new adventure-namely building my dream home. I bought a field that had planning permission and split it into five plots.I sold four of the plots almost immediately and kept a plot for myself. The revenue that I made from selling the other plots paid for the infrastructure and towards the cost of building my dream home.

As I was fortunate enough to have good staff to run my stores for me whilst I project managed the building of my house, I was able to process my paperwork from my home office. I began to enjoy not having to travel daily back and forth to my businesses and this got me thinking about working from home permanently.

Not being one to drag my feet I sold my retail stores and started my own construction and development company that I ran from home. My business specialised in buying and selling land and project managing building dream homes for others. This became a successful business very quickly and again life was good. However just at that time the recession came and the demand for wanting to buy land and build houses decreased dramatically. This was a big shock and a massive worry for me as I still had outstanding business loans to pay, staff to provide work for as well as a family to feed. I needed to act fast. I desperately needed to find a way to make more money.

I quickly diversified my business to concentrate more on smaller building works like extensions, loft conversions and conservatories. This took a little time as I needed to rebrand the company to focus more on building works. However once I had tried and tested and found the best marketing methods my company went from strength to strength.

That was until three customers in succession took advantage of my good nature and did not pay for the work that I had carried out for them, due to them running out of money. This was a very stressful time as it resulted in lengthy, costly legal proceedings to recover monies due to me which caused massive cash flow problems within my business.

This is a major downfall for many bricks and mortar businesses especially as you have to outlay lots of capital for materials and labour before you receive payment from the customer. Many businesses have then sadly gone into administration when customers have then failed to pay for the goods and services provided.

Fortunately I was able to survive but it made be re evaluate what I wanted from life.

I knew for sure that I definitely wanted to still run a business. It was what I had done successfully for over twenty years, but I began to look into other opportunities. I still wanted to run a business from home, which in effect was what I was already doing with my construction company, but without the responsibility that the bricks and mortar business provided, namely having staff to find work for and customers delaying in paying for their goods.

That’s when I began to look into opportunities for online businesses. As an established successful businessman I quickly realised that this type of business could provide me with the perfect balance that I needed in my life.

I would still be my own boss, I could still work from home but with this type of business there was a huge global audience to market to and better still they would pay for their goods in advance and the only staff I needed to recruit was my wife.

Julie, my wife had never been that active in running my bricks and mortar businesses but she was very excited about embarking on an online business together especially as this meant that she could work from home around the needs of our young children…Something that she could not have done with our bricks and mortar businesses as the working hours were dictated by customer and supplier needs.

So have I finally found the best successful business? I will not lie, even online businesses have their trying times, especially with Google constantly changing the rules and with trying to keep up with the latest technology and marketing, but I have to say that, hand on heart,my online business has provided my wife and I with the best work/ life balance possible. It allows us to attend every school concert and sports day and every other special family event that we would otherwise have had to miss, if we were working for someone else. It has even enabled us to be able to have a gorgeous cockapoo puppy.

However, as with any business opportunity it is very important to research and find the best online businesses available. You will need to find a product that will be easy to market and sell and if you choose to become an affiliate you will need to ensure that you choose a company that will offer the highest rewards for your effort.

You do not need to have any exceptional qualities to create a successful business. I certainly had no business experience when I started out in business, but what I had was dream and a determination to provide the best that I could for myself and my family.

Even though I earned a good salary when I worked as a gas engineer, I l knew that the lifestyle that I could create for my family was governed by the capped salary that I could earn. I knew that if I wanted to fulfil my dreams and ambitions that I needed to take action and to take risks to earn more money.

I am so glad that I took action and that I did not quit when I encountered difficulties and hardships.

Any mistakes that I made along the way were merely treated as temporary hurdles on the road to success.

After all most successful people have encountered difficulties along the way including successful entrepreneurs like Sir Richard Branson and Simon Cowell. So I regard myself as being in good company with mistakes that I have made.

The setbacks that I did encounter have actually helped me enormously within my online business and have enabled me to share with others the best ways to start a business. People now actually appreciate my good nature with advice that I offer them to change their lives for the better, rather than taking advantage of it, as happened with my bricks and mortar business.

To close, even though my journey from gas engineer to successful business owner has been rocky I would not change a thing, as it has ultimately led to me creating the life of my dreams.

5 Secrets of the Top 1% Most Successful Business Leaders in the World

Are you successful but feel burned out working 50-70 hours per weeks? Do you feel your business or company hitting the proverbial wall and plateauing in production overall? The most successful business leaders know working harder and longer hours are not the answer to overall business success and personal happiness. The following content is designed specifically to apply to multiple business industries, varied professional leadership positions and one’s own personal life. If these core concepts are learned and applied regularly in one’s own business and life, powerful positive results will result, and personal freedom and professional business success will be attainable again.

5 Secrets of the Top 1% Most Successful Business Leaders #1: Efficiency Does Not Equal Effectiveness.

Usually the most ‘busy” people in life are the least productive. Learn to live and work smartly. Time management is important – as a daily schedule. However, a daily schedule should only be a part of the long-term vision and planning formed in annual, monthly and weekly planners. Simply going to work and reacting to events that take place removes the control from your life and your business goals. It also adds extreme stress that can become unhealthy as it develops a vision that work and life circumstances are outside of our control. In fact, our circle of influence on areas of our life gives us as much control as we want. By using mental imagery and envisioning tough situations in your day or week before the happen – and how you will want to act, can help you anticipate conflict and keep the stress-level down and more in control of your actions and emotions.

5 Secrets of the Top 1% Most Successful Business Leaders #2: People Are Your #1 Asset.

Spend 20% of your time listening to your people and teams. Notice I said listening, not talking. This is on purpose. Try to make sure you are spending informal time “touching” and relating to as many team members as possible. Cultivate a relationship so they know you care about them as people first, employees second. In turn, they will start to see you the same way. Set aside scheduled time weekly to informally stop by or “make the rounds” visibly with your teams. Do not talk about work until they bring up the topic. Keep it light and personal.

5 Secrets of the Top 1% Most Successful Business Leaders #3: Your 2nd Most Important Asset is Your SELF.

– As the most important investment in your business – take care of yourself first. Balance is the key to everything. Make sure you touch on the 4 major areas of life every week: Physical, Mental, Social, and Spiritual (PMSS).

Try this exercise first: brainstorm for 5 minutes all of the roles in your life. Clearly define them and place them under the 4 above life areas (PMSS) – and see if you can place at least one role under each of these umbrellas. If you can’t – you may have discovered a root problem to your stress and imbalance already.

Rank your roles in one life list- #1 being the most important. Once you have prioritized your roles – spend 80% of your time in the top 20%. Make sure you are spending time weekly in each of the four categories – Physical, Mental, Social, and Spiritual as closely as you can. Keep balance for personal and professional health.

5 Secrets of the Top 1% Most Successful Business Leaders #4: Lead Leaders Not Followers.

This concept may take some explaining, but there is a critical difference in the above sentence that may have the single most impact on your overall business success. You will grow as an organization in numbers only if you add followers, but you will multiply and exponentially increase your ROI through duplication if you grow leaders. The old adage, “Give a man a fish, feed him for a day; but teach him how to fish and he will eat for a lifetime,” applies in principle here. If we tend to micro-manage our teams and people – we will create a bottle-neck in work process and flow. Our employees will become frustrated in our lack of trust as leaders in their capabilities to perform the tasks and solve problems without us.

We need to nurture and grow – teach and trust our people we rely on the most for personal and business success. Developing the aforementioned relationships with your people and getting to know them better will allow you to grow and help them in their weaker areas and take advantage of their strengths. As a leader your goal should be to guide and develop all your people on your teams to reach their maximum leadership capabilities individually. As their talents grow – they will take on more responsibilities – in line with the company vision and mission – and most importantly free up your time to work on income-producing activities.

5 Secrets of the Top 1% Most Successful Business Leaders #5: System, Process, People = Automation

A well-known vision and mission for your company and a system of “how we get work accomplished here” are foundations of the most successful business leaders worldwide. Your employees should take an active role in the process of forming the company mission, vision, and system. As the leader you can guide them through the process of where you want to take them and still build the trust and empowerment. All people will believe in you as the leader if you believe in them first. The key is employee trust and buy-in that is developed over time by empowering them in their roles, trusting them with appropriate decisions without you, and allowing them to participate or “have a voice” when company decisions are made. This trust and empowerment will dramatically improve your company’s work culture, employee motivation will become internal instead of external, and your retention numbers will soar as a result. People will WANT TO work for you as a leader.

***If you found these concepts helpful – feel free to find similar resources and helpful tips by checking insights and stories from other top 1% business leaders, entrepreneurs, and worldwide success stories: www.entrepreneurs-life.com

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