What every business owner ought to know about digital marketing.
A few days ago I was talking with a business owner who’d been running his company for over 14 years. A good businessman.
He said he’s never invested in online marketing since he’s not a “computer person.” And doesn’t understand how it works.
He explained that he used to advertise in the yellow pages with great success but hasn’t tried online. He’s afraid he'll lose money.
This was something of a shock to me. Yes, advertising has changed a lot since we have computers in our pockets. But there’s nothing overcomplicated or mysterious about how it works.
The principles are the same as they were in the yellow pages.
But since I grew up using my phone and computer to find home service businesses. I’ve assumed that everybody understands how it all works.
That has been my mistake. A big mistake.
Because if business owners don’t understand how online marketing works or what the customer buying process looks like, they aren’t going to invest their money in digital marketing.
“So what” you ask? Well, here’s what.
If local business owners don’t invest in digital marketing, it opens the door for competitors to grab customers in your hometown.
Or think about it from a customer perspective. If reliable businesses are hard to find, customers will work with a low quality company.
Or look at it from a social point of view. Business owners who don’t understand how online marketing works are easy prey for a wide variety of “get rich quick” marketing schemes.
Or take a personal point of view. Some owners might want to reinvest their profits into their business. Where they could earn a fair return. But if they’re unfamiliar with the digital landscape, they’re unlikely to do that.
For these reasons, it’s important that owners understand how online marketing works.
But where do you start?
Well it seems a good place to start is the lingo marketers use and frequently asked questions my friend, the veteran business owner, had about online marketing before we started working together.
So I’ll start there.
Some of this might seem basic so I trust that if you already know something you’ll skip over it.
Because what may seem elementary to you, the next guy might not be too clear about.
What is digital marketing?
Digital marketing is any form of online marketing. Facebook Ads, websites, commercials, YouTube Ads. Advertising on anything that's charged is digital marketing.
What is a Keyword?
A keyword is what your customer types in on the search bar of Google when looking for your product/service. Keywords can be WHAT service a customer is looking for or WHO provides that service.
For example if someone is in need of a new water heater and they live in Manchester, NH. They might type in ‘Water Heater Replacement Manchester NH’ (What) or ‘Plumbers Manchester NH’ (Who).
What is SEO?
SEO stands for Search Engine Optimization. Google is a search engine. SEO is optimizing your website so it shows up on Google's search engine.
It's a fancy way of saying how people find your business online without typing in your name or number. It’s optimizing your site so you show up for certain keywords.
You can test your site's SEO yourself. Have your wife/husband/friend try to find your business without typing in your name or number. Pay attention to how many competitors they sort through before finding your business.
What are PPC Ads?
PPC stands for pay-per-click. You pay a small fee each time someone clicks on your ad. If you ever see a post on Facebook, Instagram, or Google that says ‘sponsored’ on it, that’s a pay per click ad.
If you want to be an ass, click on your competitors ads and they'll pay a small fee.
The cost per click (CPC) varies but it’s relative to the service. Clicks are more expensive for roofing customers than lawn mowing. A new roof is thousands of dollars. A fresh cut lawn is less than $100.
What are your Business Listings?
You probably get calls about Listings all the time (don’t worry I ignore them too). Business Listings is how your company's info is listed across the internet. Your name, address, and phone number should all be consistent.
Google scans reliable sites like the ones listed below to make sure your company is legit.
If your address or phone number is different from your website and Facebook. That's fishy. Google is less likely to recommend your business to its users.
Who should invest in online marketing?
Businesses with multiple crews who are looking to grow year over year. If you are a one man show, you probably won’t need to spend any money on marketing. But if you are responsible for putting food on employee's tables, you should advertise.
It helps you get jobs that your employees enjoy. Creating a better work environment and less turnover.
How much does digital marketing cost?
I’d love to give you a hard number but it varies by industry. A good rule of thumb I use is to invest at least one job a month into marketing or 6 - 10% of your bottom line.
What are the expectations of marketing online?
Marketing will never get you more customers than word of mouth. Most businesses operate at about 90% word of mouth, referrals, past customers. It’s unrealistic to expect marketing to outperform the book of business you’ve built since the start of your company.
That’s not how it works.
Marketing helps attract new customers which will turn into more referrals over the lifetime value of that customer. A realistic expectation is growing from 10% new customers to 20% so your company expands healthily year over year.
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