What if I told you that within the various channels of your digital business, across every device and inside every siloed department, there exists a goldmine of profit just waiting to be unlocked?
Would you believe me?
Well, you should. You see, we’ve reached a new epoch in the evolution of marketing. We’ve escaped the dark ages and entered The Marketing Enlightenment, an age of visibility.
With the extensive amount of data available at our fingertips today, we have the ability to view, track, and understand our digital traffic across all layers of the conversion funnel, through every facet of our businesses, and on an entirely new level – a human level.
Why is this a big deal?
Because today, if you’re like most marketers, you’re not seeing clearly. You’re not only wasting money but you’re missing out on some serious (and easily tapped) revenue.
With the advancement of all things digital, you’ve lost sight of the fact that while consumers may exist in the digital world, they are not any less human. Their browsing, shopping, and purchasing habits all stem from the same physical humans walking through brick and mortar stores, and it’s time they be treated as such.
Marketers today are short-sighted when it comes to their conversion funnels. The goal of this guide is to help you understand that short-sightedness. Along the way, we’ll also do everything we can to broaden your marketing horizon.
By the end of this guide, you will not only understand how to humanize (& profitize) your digital marketing approach but you’ll have the map to discovering the digital goldmine of your marketing funnel right at your fingertips.
*Please note, this is a complimentary excerpt. To unlock the full guide, click here.*
Table of Contents
Part 1: Today’s Myopic Approach, Exposed
Part 2: The Digital Goldmine, Identified
Part 3: Your Digital Goldmine, Unlocked
Part 1: Today’s Myopic Approach, Exposed
It all begins with a little mathematical proportion known as the 92:1 Ratio: For every $92 spent on digital ads driving traffic to a website, only $1 is spent actually guiding that traffic toward conversion once they’re on the website.
Of course, this ratio differs across every vertical and industry, it varies from website to website, but just think about the law of averages — that little ratio represents a big problem in the state of marketing. Let’s walk through the issue in greater detail.
It really stems from every marketer’s ultimate goal — to drive revenue for their business — and the two ways of accomplishing it:
Until recently, only the first of these methods has been possible – increasing the quantity of traffic (hence the 92:1 Ratio). It’s actually been the bread-and-butter tactic for the majority marketers even prior to the existence of the internet and digital marketing.
Brick and mortar marketers relied on the “spray and pray” technique, spraying their money around various advertising and promotional options and praying those methods — billboards, tv, print ads, direct mail — worked in their favor.
Furthermore, with the advent of the World Wide Web, marketers have been armed with an endless number of marketing tactics to drive new traffic to their businesses from every corner of the internet, increasing revenue in the process. In fact, by 2017, digital media ad spend in the US is projected to surpass television for the first time in history.
Considering the growing market share held by digital, the existence of the 92:1 Ratio is not surprising. It’s no surprise that marketers have continued to rely on that ratio — they’ve focused their attention toward the variable of the revenue-increasing equation they know they can control, traffic quantity.
So, what’s wrong with this approach? Let’s take a look.
Imagine your business’ conversion funnel with the 92:1 Ratio in mind — what we like to call The Myopic Funnel.
So, you’re pushing tons of new traffic to your website — imagine 10 million monthly unique visitors. Great. But what happens once those visitors arrive at your website?
Nothing – for the most part.
If you’re an eCommerce company, maybe you have an email capture or cart abandonment experience trigger for specific users. If you’re a publisher, some of your traffic might hit a paywall after reading X number of articles. If you’re B2B, maybe you’re trying to push your qualified traffic toward a demo.
Still, however, the majority of those 10 million monthly unique visitors are treated exactly the same way, regardless of how deep into the funnel they reach and in spite of the unique levels of conversion intent they exhibit. SuzieQ might read 3 articles while PauLeeD reads 8 – but each of their experiences with your business will still mirror the other’s.
- Let’s recap Consequence #1 (we’ll put it plainly): Your digital business is comparable to a brick and mortar store devoid of any sales associates, any store maps, really anything at all to guide your visitors to complete a conversion.
- And Consequence #2 (a consequence of #1): Your conversions are suffering as a result. Just think about your conversion rate! (Hint: it’s low.)
But why is this so bad? After all, based on the 92:1 ratio, we know we can still confidently expect $Y in returns, as long as we continue driving X amount of traffic.
- Here’s why – Consequence #3: Your acquisition channels (the things responsible for driving X amount of traffic) are maxed out.
To explain, let’s assume that, like most marketers, you rely on Google and Facebook, and probably some others, to drive all that traffic to your website. But, as we discovered from Consequence #2, your acquired traffic is not converting at its highest potential.
In other words, as a sophisticated marketer, you’ve reached the point where you know your target spend for each ad and the expected revenue driven from that ad. Spending more doesn’t make sense, as the results won’t net out.
What can you do about it? If increasing your ad spend doesn’t make sense, maybe you just need to increase the revenue. (I know – duh.)
How do you do that?
It all goes back to Consequences #1 and #2. Improve the relationships between your business and the individuals engaging with it and BAM, up goes that conversion rate, and BAM, up goes that acquisition ROAS curve (and your revenue).
So, to summarize the consequences many marketers face today: business growth has plateaued. Despite the endless amounts of money you’re continually funneling into various marketing strategies and digital platforms, your conversion rate and resulting revenue remains stagnant.
But there’s hope. Hope that already exists within the walls of your digital business, just waiting for your attention. It’s your Digital Goldmine, dude. Unlock it already.