If your digital-only clients are having trouble acquiring new customers, they’re not alone. We face a world where a few large online operators, whether it’s networks or marketplaces, are positioning themselves to operate a system that’s close to a monopoly.
As they fight for market share, 77% businesses say the pressure to win new customers is increasing. These are your clients and prospects. According to a survey of over 150 marketers conducted by SheerID, these businesses need your help.
Not surprisingly, digital marketers (80%) are using promotions and discounts to acquire customers. Some industries turn to universal discounting. This means every customer gets the same discount. This strategy is particularly prevalent in the retail (89%) and travel (93%) sectors. Other sectors, like financial services (63%), employ exclusive promotions. In those cases, only specific categories of customers are eligible for discounts.
The problem with universal promotions is that consumers start to expect them. The SheerID research suggests that’s an issue for 55% of marketers, currently. Another problem with the strategy is lack of differentiation. If every business is constantly running a promotion, how can your clients stand out?
While your clients might complain about having to constantly discount, at least 54% of businesses are addicted to the practice. That’s because they believe promotions drive sales.
Researchers point out that constant promotions tend to increase noise across the entire marketplace. Businesses (65%) realize that at some point, promotions are a race to the bottom in terms of brand value and profitability.
The other issue your clients struggle with (16%) is the increasing cost of search. They understand that a few networks largely control the costs of search marketing. Meanwhile, 12% businesses are experiencing decreased rates of conversion once their search tactics connect with a potential customer.
Your clients may be open to trying the strategy of ‘gated, exclusive offers.’ Using technology and big data, your clients could craft promotions that target specific segments of their existing customer base. They could also use this strategy to acquire new customers.
To learn about the purchase intent of specific professionals, like K‑12 teachers or small business owners, or other affinity groups, check out the AudienceSCAN profiles available on AdMall from SalesFuel. Share this information with clients and help them craft gated offers to reach the right audiences.