Smart ecommerce entrepreneurs are always looking to get the best bang for their buck. Like you, they’re always comparing different marketing methods, ecommerce platforms, and strategies in order to grow their business.
When you compare social media to email marketing, one value stands out above the rest: ROI. A good return on investment can stretch your marketing budget further and inform your overall growth strategy. When it comes to marketing methods, some channels have high ROI while others do not. Here are a few marketing methods to consider using for your ecommerce business:
The return on investment for social media marketing is difficult to measure. In fact, 60 percent of marketers say identifying ROI is one of the top three social media marketing challenges. The fact is that social media isn’t always a place to drive sales; it’s a place to engage with customers and build trust in your brand.
The main benefit of social media is reach. According to Pew Research Center, 90 percent of young adults between the ages of 18 and 29 use social media. Facebook alone claims 1.86 billion monthly active users—that’s more than the total population of China! The right social media strategy puts your business in front of a lot of eyeballs.
You can certainly use social media to increase the size of your audience and build a relationship with your customers, but drawing a straight line between a Facebook like and a sale is quite difficult. It’s possible to look at traffic sources and conversions, but the attribution model may come into question.
Social Media Advertising
Social media advertising is different from organic social media marketing. Social media marketing is all about posting to your own channels. Social media advertising involves purchasing pay-per-click ads to be displayed to a very targeted audience on social media platforms.
Facebook has tons of data about its users, and advertisers can use this information to target their audience at a very high level. In fact, given its effective targeting methods, Facebook can be a very cost-effective advertising platform. According to WordStream, the average cost per click of Facebook ads is $1.72 across all industries while the average cost per action is $18.68.
What will make or break Facebook advertising ROI is the understanding and targeting of your audience. Don’t just create an ad for the biggest audience possible. Tailor your ads as specifically as possible.
To put it simply, email marketing is king. It’s consistently ranked the top ROI-generating marketing channel year over year. For every $1 invested, email marketing returns $38 on average. Email marketing is 40 times more effective at acquiring new customers than Facebook or Twitter.
If you’re not using email marketing for your ecommerce store, why not? Services like MailChimp, Drip, and Convert Kit make it easy to connect with your customers via email. Many services offer email automation and funnels, so your marketing channel is working even when you’re not.
Establishing an ecommerce business requires a series of informed choices. Whether you’re conducting a Shopify Plus and Magento Enterprise comparison or weighing the costs and benefits of social media advertising versus email campaigns, ROI should be at the forefront of your strategy.
Overall, the best marketing strategies for online businesses involve a mix of different channels. Some channels have high ROIs while others serve different purposes, like expanding your reach or connecting with your audience. Investing heavily in channels with high returns is a smart move, of course, but ROI isn’t the only metric worth measuring. Make sure your marketing plan includes a variety of tactics. You never know if one channel will have a high ROI for your specific business until you do your own experiment. Give these marketing methods a try, and investigate the possibilities for social media marketing and email marketing!