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13 Benefits Of Digital Marketing For Small Businesses

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GoSite Team

Digital marketing is quickly becoming the go-to choice for small businesses looking to get their message out. With its low cost and wide reach, digital marketing offers several advantages over traditional marketing methods, like print and TV advertising. 

From reaching new customers to creating more efficient customer service processes, digital marketing can help your business grow in ways you may have never imagined. Here are 13 benefits of digital marketing that may make your small business want to make the switch.

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Why Is Having a Digital Marketing Strategy Essential For Small Businesses?

No matter your print advertising, door-to-door, or networking marketing efforts, digital marketing always enhances your business growth. That’s because it’s not just about getting more customers - it’s actually about connecting to all the information that online resources have to offer.

Whether we like it or not, we live in a digital age. If you’re not very tech-savvy, this can feel intimidating, and we get it. But having at least some digital marketing for your business is critical. Here’s why: 

  1. Online Presence: Most people nowadays use the internet to find things they want to buy or services they need. If your business doesn't have a presence on the internet, it's like being invisible to the vast majority of customers. They won't be able to find you or know that your business exists. That's why it's really important for your business to be online, so that people can easily discover and learn about what you have to offer.
  2. Competitive Advantage: Even if you run a super small operation of your home, there are undoubtedly other businesses that provide similar products or services that you do. Having a good plan for promoting your business online, called digital marketing, can help you do better than your competitors.
  3. Customer Engagement: Digital marketing channels are ways for you to communicate directly with prospects and customers. Through these channels, you can answer customers' questions, listen to their opinions, and build a sense of community. When you engage like this, it makes customers happier so that they keep coming back again and again.
  4. Data and Analytics: These aren’t terms to be afraid of. Data and analytics are just fancy tech speak for having valuable information on who your best customers are – why they buy, how often they buy, and so much more. Digital marketing has so much data that’s overwhelming, but a basic digital marketing strategy will help you harness only the information most relevant to your business.
  5. Cost-Effective: If you’re like most small, local businesses, you operate with limited budgets. Digital marketing, particularly methods like SEO (Search Engine Optimization) and content marketing, let you set reasonable and affordable advertising budgets, providing a better return on investment.

Let’s go more in depth on these digital marketing benefits.

13 Digital Marketing Benefits For Your Small Business


1. Reach Specific Audiences in Specific Areas (Targeting & Retargeting)

One of the biggest digital marketing advantages is the ability to target the people who are most likely to be interested in your business. You can direct your message to the exact type of customer you want to reach through market segmentation, which divides your customers into different categories to which you can tailor your advertising.

types-of-market-segmentation-min-1-1Source: QuestionPro

You can also create retargeting campaigns to keep your brand in the minds of customers who have already shown an interest in your business. This could look like automated emails advertising sales, or ads tailored to people who need help with specific projects, such as leaky faucets, brake repair, etc.

2. Get More Options to Advertise Your Business Online

Digital marketing gives you access to a wide range of advertising options that would not be available with traditional forms of marketing. You can use social media marketing and video content campaigns of all different types to reach your desired customer base. Traditional marketing strategies like print or television ads are limited in terms of their ability to target certain demographics.

3. Helps Small Businesses Enhance Their Online Presence

The more people interact with your business online, the greater your chances of success. Digital marketing can help you create an online presence and increase visibility. By creating a website and optimizing it for search engines, using social media platforms to engage with customers, or running ads on popular platforms like Google Ads, you can reach potential customers in a more targeted and efficient way that you may not have reached otherwise.

4. Enables Customer Engagement Through Direct Interaction With Customers

Interacting directly with customers is a huge benefit of online marketing. By engaging with your audience through digital channels like social media, email marketing, or live chat on your website, you can learn more about their needs and preferences and tailor content to reach them in a more personalized way. This direct interaction also helps build trust between you and your customers, which makes them more likely to buy your product or service.


Source: Smart Insights

While only one portion of the graph above mentions sales, all of these social marketing goals have the potential to lead to an increase in purchases. A small business can only reach so many people in person, especially with a small staff and one storefront, and that gives you only a certain number of sales. By marketing online, you can reach people outside of your business location, giving you a larger customer base and, in turn, more sales.

5. Provides Valuable Insights Through Analytics Tools

When running print ads, you can only guess how effective they are through client feedback or an increase in sales. Digital marketing makes it much easier to see how profitable your ads are through analytics tools. 

Analytics tools are software that helps you track, analyze and interpret data related to your business, like how many people are engaging with your digital marketing through likes and shares. Analytics provide you with important information to help you plan more jobs, increase your average sales volumes, and improve customer retention and service. 

In summary, by following the trends analytics shows you and improving parts of your business around it, you have a much better chance of success in the short and long-term, plus you’ll waste less money on ineffective marketing.

6. Increases Conversion Rates and Achieve KPIs Effectively

You can create ad campaigns that are tailored to different types of customers or track the performance of existing ad campaigns to figure out which ones are getting the most attention and making you just as much money as you’re putting in. 

Tracking how your ads are performing with analytics tools will also help you understand which strategies are working best for achieving your goals.

7. Allows Competing With Larger Companies

With digital advertising, you don’t need the same resources or marketing budget as your competitors to reach potential customers - instead, you can target specific customers in a smarter and more cost-effective way that allows them to see the personal touch of a small business.

8. Facilitates Real Time Adjustments and Optimizations

A great way to quickly test and adjust campaigns is with digital advertising. You can track user behavior and analyze how your ads are performing in real-time. If an ad isn’t working as well as you had hoped, you can make adjustments on the fly to optimize it for better performance.

This also allows small businesses to save money by not investing in long-term campaigns that may not work out as planned, which is critical when you’re just starting and don’t have as much money as your big business competitors.

9. Provides More Platforms To Receive Feedback From Your Customers

Giving your customers different spaces to express their opinions allows you to better understand their needs and preferences. You can use surveys, social media comments, emails, or even live chat on your website to get direct responses from customers about what they like and don’t like about your business. This type of feedback is invaluable in helping you make adjustments that will improve customer satisfaction.

10. Builds Brand Loyalty For Current and Potential Customers

You’ll reach potential customers and engage them in a meaningful way that builds loyalty with digital advertising techniques. It allows you to create campaigns specifically designed to appeal to your target audience and encourage them to become loyal customers. 

You could do this by running loyalty programs or creating ad campaigns that reward customers for repeat purchases. By nurturing customer relationships digitally, you’ll be able to keep current customers coming back repeatedly while also making new ones more likely to stick around long-term.

11. Generates Qualified Leads Increasing the Chances of Conversion

Qualified leads are contacts who are most likely to convert into paying customers. By using customer data and analytics tools, you can learn about the interests of your target audience and create campaigns that appeal to them. You can also track website visitors’ behaviors and patterns, so you know when they’re most likely to make a purchase.

12. Enables Delivering Personalized and Relevant Messages

Personalized messages have proven to be much more effective than generic ones. Digital marketing allows you to deliver personalized messages based on customers’ demographics, interests, and locations. 

For example, if you notice a lot of people in your area are impacted by a similar issue, like poor drainage or a certain pest infesting their homes, you can make ads that relate to them and show that your business is here to help. You can also use customer data to create targeted campaigns that are tailored for each customer.

13. Establishes Positive Brand Reputation

Having a good reputation is essential to building trust with customers and gaining their loyalty. Digital marketing can help you establish a positive brand image by creating content that resonates with your target audience and through customer engagement. 

You can also use reviews, ratings, and social media posts to showcase the quality of your products or services and provide social proof that you are great at what you do. This helps build an emotional connection between potential customers and your business, which increases the likelihood they’ll buy from you.

Leverage the Power of Digital Marketing Channels For Your Small Business

Digital marketing provides small businesses with an opportunity to reach new customers and interact with them in ways that weren’t possible before. From targeting the right audiences to creating personalized customer experiences, digital marketing can help your business grow in ways you may have never imagined.

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