What Small Businesses Need to Know About Digital Marketing's Effect on Consumer Behavior

The digital world is constantly evolving, and with it, so does the way consumers behave. Are you curious about how digital marketing affects consumer behavior in your small business?

What if I told you that there's a way to tap into the psychology of consumers and understand what makes them tick? That's what digital marketing is all about. If you really want to know how to get inside consumers' heads and figure out what they want, digital marketing is the way to go.

Small businesses and entrepreneurs who are looking to learn more about digital marketing -- you're in the right place! In this blog, we'll give you a beginner's guide to digital marketing, including what it is and how you can get started today!

Understanding Digital Marketing

Digital marketing is the process of using online marketing platforms to promote your business or product. This can include social media media marketing, search engine marketing, email marketing, inbound marketing, influencer marketing, social media ads, video marketing, and more.

Digital marketing is the vehicle that allows you to reach your target audience in the places where they're already spending time online. 

Now that we've answered the question "what is digital marketing?", let's take a look at some of the most important components of your digital marketing strategy. 

Components of a Digital Marketing Strategy

The first component of an effective digital marketing strategy is having a strong website that meeds the needs of your target market.

In today's digital world, having a strong website is essential for any business that wants to succeed. Your website is often the first thing that potential customers will see when they search for your business online, so it's important that it makes a good first impression.

Here are a few tips to help make sure your website is ready for visitors:

Keep Your Website Design Simple and Intuitive

The first step in creating a strong website is to keep the design simple and easy to navigate. Future customers should be able to find what they're looking for quickly and easily without getting frustrated.

Use clear and concise text, easy-to-understand menus, and helpful visuals (such as product photos or infographics) to guide website visitors through your site.

Make Your Website Easy to Use

In addition to having a well-designed layout, your website must also be easy to use. That means your site should load quickly, be responsive on all devices (including mobile), and have no broken links or other errors.

Test your website regularly to ensure that it is functioning properly and make changes as needed.

Provide Valuable Information

Your website should also provide valuable information about your products or services. This could include descriptions of what you offer, pricing information, customer testimonials, FAQs, or anything else that would be helpful for future customers.

The goal is to give website visitors everything they need to know about your business before they make a purchase or contact you for more information.

Identify and Measure Important KPIs

With all the effort you're putting into your marketing plan, you'll want to be sure to identify and keep track of the KPIs that will help inform your ongoing digital marketing strategy. Website traffic, load speed, conversions, session durations, and more are all valuable metrics to track as an important part of your digital marketing techniques.

By keeping the design simple and intuitive, making the site easy to use, providing valuable information, and tracking important KPIs, you can ensure your website is doing its part to contribute to your overall digital marketing strategy.

The second component of an effective digital marketing strategy is content marketing.

Content marketing strategy includes creating content that is valuable and resonates with your target audience.

This could be blog posts, infographics, social media graphics, digital ads, podcasts, videos, or any other piece of content that provides value and helps customers learn more about your business. 

Content marketing is the cornerstone of your digital presence because it helps you attract and engage with potential customers. By providing valuable content, you build trust with future customers and establish yourself as a credible source of information.

Furthermore, with paired with solid search engine optimization strategy, good content can help improve your search engine rankings and make it more likely that future customers will find your website. 

Getting Started with Content Marketing 

The first step toward compelling content marketing is identifying your goals. What do you want to achieve with your content?

Once you have identified what you want to achieve, you can start creating helpful, engaging, and relevant content for your target audience. Remember to focus on quality over quantity - it's better to have a few pieces of really great content than a bunch of mediocre ones.

Finally, don't forget to promote your content - share it on social media, send it out in email newsletters, create marketing campaigns, and make sure it's easy for people to find on your website. 

If you're not sure where to start or how to create effective content for social media marketing, email marketing, website, etc., consider working with a digital marketing agency like The Unicorn Hub. We can help create a custom content marketing strategy that achieves your business goals.  

Creating great content is only half the battle when it comes to driving traffic to your website - you also need to make sure your website is optimized for search engines so that potential customers can find you easily online.  This process is called Search Engine Optimization (SEO)

SEO strategy is one of the most effective (and often overlooked) methods of attracting customers to your business, and involves things like keyword research, backlinks, meta tags, etc. that optimize your website for Google search so that you appear as high up in the search results as possible. 

After all, what good is great content if nobody can find it?

Your search engine optimization efforts are critical for driving organic traffic to your website and ensuring that potential customers can find you when they're searching online.

SEO is a complex and ever-changing field, but by following some basic best practices, you can ensure that your website is optimized for Google search and start driving more organic traffic to your site.

If you need help getting started, contact a digital marketing agency like The Unicorn Hub that specializes in SEO. We would love to assist you!

The third component of a digital marketing strategy is social media marketing.

Your social media marketing strategy is another essential piece of the puzzle when it comes to digital marketing.

With over 4.5 billion people active on social media worldwide, there's a vast pool of potential customers to reach with your marketing messages. And, since social media is one of the most cost-effective marketing channels available, it's a great way to get the most bang for your buck.

Depending on your business and target audience, you'll want to be active on one or more social media channels, such as Facebook, Twitter, Instagram, TikTok, LinkedIn, Snapchat, or Pinterest.

This will allow your social media posts, video marketing, etc. to be seen by your ideal client, allowing you to build relationships with potential and current customers and stay top-of-mind when they're ready to buy. 

How to Create an Effective Social Media Marketing Strategy

Now that you know why social media marketing is important, you need to create a strategy for your marketing efforts. Here are a few tips: 

Define Your Goals

What do you want to achieve with your social media marketing? Do you want to increase brand awareness, drive traffic to your website, generate leads, or something else? Be specific and measurable when setting your goals. 

Know Your Audience

Who are you trying to reach with your social media marketing? Creating buyer personas can be helpful here. Once you know who you're trying to reach, you can determine which marketing channels they're active on and what kind of content they're interested in. 

Create Engaging Content

Once you know who you're trying to reach and which channels they're active on, it's time for your small business to start creating engaging content that resonates with them. This could be in the form of blog posts, images, infographics, videos, or anything else that will capture their attention and inspire them to take action. 

Analyze and Adjust

Last but not least, don't forget to analyze the performance of your social media marketing campaigns so that you can make adjustments as needed. This will help ensure that you're always putting your best foot forward and your marketing efforts are achieving the results you want. 

Social media marketing is a critical component of an effective digital marketing plan. If you're not utilizing social media, you're missing out on a huge opportunity to reach your target audience where they already are.

By creating engaging content and actively participating on social media channels that are relevant to your business, you can build relationships with potential and current customers and stay top-of-mind when they're ready to buy from you.

The final component of a digital marketing strategy is email marketing.

If you're not utilizing email marketing to reach your customers, you're missing out on a huge opportunity.

Email marketing allows you to stay in touch with your previous customers and cultivate relationships with new leads by providing valuable information about your products or services.

Each of your marketing campaigns is an opportunity to communicate with your loyal customers. 

Email Marketing 101: Why You Need It

According to a 2022 study by Hubspot, 4 billion people use email every single day. Not only that, but 77% of marketers reported having seen an increase in email engagement over the past 12 months -- meaning email is very much not a dying platform!

Email Marketing: A Valuable Investment

Due to the huge return on investment, 33% of brands reported they will be increasing their email marketing budgets in 2023!

And it's not hard to see why... 

For one thing, email is an excellent way to stay in touch with your previous customers and cultivate relationships with new leads. By providing valuable information about your products or services in each email, you're able to keep your business top-of-mind for when they're ready to make a purchase.

Additionally, email allows you to segment your list so that you can send targeted messages to different groups of people. This ensures that each person receives information that is relevant to them, which increases the likelihood that they'll engage with your email. 

Another reason why email marketing is so important is that it gives your small business the chance to track your results. With most other marketing platforms, it can be difficult to know whether or not your efforts are paying off.

With email marketing, on the other hand, you can use tools like Google Analytics to track things like open rates, click-through rates, and unsubscribe rates. This data can be extremely valuable in refining your email marketing strategy and helping you fine-tune your future online marketing campaigns. 

Email Marketing 201: How to Get Started 

Now that we've gone over some of the reasons why email marketing is so important, let's talk about how you can get started with your first email marketing campaign.

Here are a few tips for new email marketers: 

  • Have a clear goal for your campaign. What do you hope to achieve?

  • Build a list of subscribers who have opted in to receive emails from you.

  • Once you have a list of subscribers, it's time to start creating content for your emails. Make sure each piece of content is valuable and relevant to your target audience.

  • Don't forget to use calls-to-action (CTAs) throughout each email so that people know what they should do next (e.g., click here to learn more about our products).

Email marketing is Essential

Email marketing is essential for any business that wants to stay top-of-mind with its customers and cultivate relationships with new leads.

If you're not already using email marketing as part of your digital marketing efforts, now is the time to start! Use the tips outlined above to get started on building your own successful campaign today.

How does digital marketing affect consumer behavior?

Digital marketing is affecting the behaviors of consumers in a number of ways.

First, commonly used digital marketing tactics are making consumers more savvy and aware of the myriad of choices available to them. Thanks to the internet, and the rise of smart mobile devices, consumers can instantly compare prices, features, and reviews of products and services before they buy - from wherever in the world they are!

This abundance of choices can be paralyzing for some consumers, but for others, its empowering. 

Another way digital marketing is affecting the behavior of consumers is by increasing their expectations. Customers now expect a level of personalization and customization that was unheard of in the pre-digital era.

They also expect even your small business to be accessible 24/7/365 via multiple channels such as email, social media, chatbots, and more, which most small businesses simply cannot sustain. 

Finally, digital marketing is changing how customers make purchase decisions. Thanks to social media influencer marketing and other marketing channels, customers are increasingly relying on recommendations from people they trust when making purchase decisions.

This influencer marketing trend is only likely to continue as we move further into the digital age. 

What Does The Impact of Digital Marketing on Consumers Mean for Small Business Owners & Entrepreneurs?

As a small business owner or entrepreneur, it's important to be aware not only of digital trends, but also of the technologies available, to ensure you are offering products and services in a way that meet the needs of today's discerning consumers.

Keep the following tips in mind to stay ahead of the digital marketing curve: 

Use data-driven marketing tactics.

Utilize data such as customer surveys, website analytics, and social media analytics to better understand your target market and what they want from your business. Then use this data to inform your marketing strategy going forward. 

Offer personalized experiences.

Personalization can be as simple as using a customer's name in an email or sending them targeted offers based on their previous purchase history. Whatever you do, make sure your customers feel like you know them as individuals rather than just another number on your sales sheet. 

Stay accessible.

In today's world, customers expect companies to be accessible 24/7/365 via multiple marketing channels such as email, social media, chatbots, and more.

If you're not meeting this expectation, you're likely losing out on potential business. 

Pro Tip: Look for tools that can help you automate!

Seek out recommendations.

Recommendations are increasingly becoming one of the most important factors in purchase decisions. As such, it's important to encourage your satisfied customers to leave positive reviews online and recommend your business to their network. 

The Rise of the Digital Consumer 

As we mentioned before, thanks to the internet, mobile phones, and social media, consumers are more connected than ever before.

Constant access to a wealth of information has led to a new breed of consumer - one who is more informed and more demanding than ever before.

There are a few key factors that have contributed to the rise of the digital consumer: 

  • The proliferation of mobile devices: According to Oberlo, there are now over 6.6 billion people worldwide who own smartphones and other mobile devices. This number will certainly hold steady or grow as mobile devices become more affordable and accessible around the world.

  • The growth of social media: People are using social media platforms to stay connected with friends and family, but they're also using social media as a source of information. In fact, nearly 8 out of 10 of Americans say they get their news from social media.

  • The rise in e-commerce: With businesses making it easier than ever to buy products and services online, consumers are becoming more comfortable making purchase decisions without ever setting foot in a store. In fact, global e-commerce sales are expected to reach $5.7 trillion by the end of 2022!

What Does the Rise of the Digital Consumer Mean for Your Small Business?

As a business owner or entrepreneur, it's important that you understand the rise of the digital consumer and how its impacting small businesses like yours.

Digital marketing is not optional, and it's here to stay. Here are a few things you need to keep in mind: 

  • You need to be where your customers are: If you want your small business to be successful, you need to make sure you're visible where your customers are spending their time. That means having an active presence on multiple marketing channels and social media platforms, maintaining a strong SEO strategy, and ensuring your website is user-friendly and up-to-date.

  • You need to provide an exceptional customer experience: As we mentioned before, customers now expect your small business to provide the same level of service across all channels - online, in-store, or over the phone. If you want your business to thrive in today's competitive landscape, you need make sure you're providing an exceptional customer experience at every touchpoint.

  • You need to be prepared for change: The digital landscape is constantly changing - new platforms are launched every day and new technologies are developed that can revolutionize how businesses operate. If you want your small business to stay ahead of the curve, you need be prepared for change and willing embrace new technologies as they emerge.

Consumer Confidence: The Secret Sauce

Finally, with the rise of digital marketing, consumers are becoming more impulsive, with a desire for instant gratification. They can buy products and services with just a few clicks, without ever leaving their homes.

As an entrepreneur or small business owner, it's crucial to find ways of instilling confidence in your target customers. Here are a few tips:

1. Use social proof.

Social proof is when we see that other people are doing something, we tend to do it as well. This is because we trust the actions of others more than our own judgement.

For example, if you see on social media that everyone is using a new product and they're all happy with it, you're more likely to try it yourself.

As a small business, you can use social proof by featuring testimonials and reviews from happy customers on your website or social media pages, or by tapping into influencer marketing opportunities.

2. Be transparent.

In this day and age, consumers are more savvy than ever before and they can spot a fake from a mile away. Don't try to fool them with false advertising or empty promises—be transparent about what your product or service can offer, and be upfront about any potential limitations.

If you're honest with your customers from the start, they'll be more likely to trust you and continue doing business with you in the future. 

Use your social media to showcase a day in the life, or create a video marketing piece with a behinds the scenes look at your brand. These inside looks will give your customers the transparency they're looking for.

3. Offer reasonable guarantees.

Guarantees are another great way for small businesses to build trust with your target customers. When you offer a money-back guarantee or some other type of assurance, it shows that you're confident in your product or service and that you're willing to stand behind it. This can go a long way in making customers feel comfortable doing business with you. 

By using social proof, being transparent, and offering reasonable guarantees, your small business can give your customers the confidence they need to do business with you again and again.

There is no denying that digital marketing is changing the way consumers behave in a number of ways. Are you looking to increase brand awareness, increase sales, and serve your existing customers and future customers well?

Stay ahead of the curve by ensuring your digital marketing efforts meet the needs of today's savvier, more demanding, and more impulsive consumers.

The future of digital marketing: How will it shape behaviors of the consumer in the years to come?

Digital marketing is in a constant state of flux. What will the future hold for this industry? Only time will tell. But one thing is certain: digital marketing will continue to evolve and change.

With the advent of new technologies, the rise of social media, and the ever growing number of small businesses, we are fortunate to have more tools at our disposal than ever before.

As behaviors of consumers continue to evolve, so too must the digital marketing strategies used to reach them.

Three ways that digital marketing will shape consumer behavior in the years to come

Digital marketing is set to become even more important in shaping the way people interact with your brand, products, and services in the years to come.

Here are three ways that digital marketing will continue to shape the behavior of consumers:

1. Increased Personalization

Thanks to advances in data collection and analysis, businesses will be able to personalize their marketing messages like never before. This personalized approach will allow businesses to build deeper relationships with their target consumers by addressing their specific needs and pain points.

As a result, consumers will become more loyal to the brands they engage with on a personal level.

How can you personal your customer journey? How can you bring personal elements to your social media marketing efforts? Now is the time to get creative!

2. Greater Interactivity

Digital marketing will become more interactive as businesses adopt new technologies such as virtual reality and Augmented Reality (AR).

These technologies will allow businesses to create immersive experiences that capture the attention of consumers in uniquely profound ways.

By allowing consumers to interact with their products and services in a new way, small businesses will be able to forge deeper connections across multiple channels with consumers and increase sales.

3. More Visual Content

In an age where we are bombarded with an endless stream of content, it's becoming increasingly difficult for businesses to capture the attention of consumers. As a result, businesses will need to focus on creating more visual content such as video marketing and infographics.

Visual content is far more engaging for consumers than text alone. In addition, it is much easier for consumers to digest visual information.

As a result, businesses should consider using more visual content in their marketing and advertising efforts.

How can businesses use digital marketing to better understand and influence consumers?

If you have a website, post on social media, or use Google Ads, you are using digital marketing! But how can you use digital marketing to better understand and influence consumers?

According to a recent study by Salesforce, "73% of consumers say that the way brands interact with them online has a significant impact on their loyalty." This means that businesses need to focus on creating positive interactions and experiences with their customers if they want to keep them coming back.

But how can businesses do this when there are so many different channels and touch points?

The answer is digital marketing.

Digital marketing gives businesses the ability to track consumers across all channels and platforms. This data can then be used to create more targeted and personalized digital marketing campaigns that will resonate with consumers and encourage them to take the desired action.

By understanding the behavior of the consumer, businesses can adjust their strategies in real-time to ensure that they are always meeting the needs of their target audience.

Digital marketing is a powerful tool that businesses can use to better understand and influence consumer behavior. By tracking consumer behavior and using the data to create targeted and personalized campaigns, businesses can continue to build strong relationships with their customers and keep them coming back for more.