Any business can take benefits of digital marketing, whether it falls under micro, small, or medium enterprises. Digital marketing is essential for every type of business. Paul Freet, a serial entrepreneur and commercialization expert, rightly says, “A business is a repeatable process that makes money. Everything else is a hobby.” Digital marketing is the best way for any passionate follower of their hobby to acknowledge that their hobby is worth millions of dollars. This blog will help you understand how digital marketing can benefit anyone pursuing even a modest business dream but is passionate about creating something beautiful for society.
We understand that a significant hurdle MSMEs face as they scale is the lack of feature-rich and accessible solutions in the market. Additionally, if they plan to invest in such solutions, they often encounter financial bottlenecks. But online advertising levels the competitive landscape, giving MSMEs the chance to compete with larger companies through creativity and strategic marketing. A strong online presence helps in branding, establishing recognition and reputation crucial for long-term success. The convenience of online advertising for customers is significant; seamless integration with e-commerce platforms directs customers to purchase points effortlessly, simplifying the buying process.
Benefits of Digital Marketing to MSMEs
Enhanced Online Presence
By utilizing tailored digital solutions, Indian MSMEs can overcome cash crunches and plan strategic moves in digital marketing. Post-pandemic, digital tools have become quite familiar, accessible, and available to MSMEs. As of March 2024, over 39 million micro-enterprises were registered on the Indian government’s Udyam registration portal, accounting for over 97 percent of the MSME sector. This highlights the immense potential of digital transformation within this sector to drive growth and innovation.
Creating a website and developing a unique online space is one such strategic move. Utilizing these tools MSMEs can reach beyond local borders and audiences. This makes it easy for them to connect their potential customers with their brand.
Search Engine Optimization is the most effective and economical way to reach the targeted audience. Adding this to their digital marketing plan can help them achieve measurable results, increased revenue, and improved customer trust.
“Build trust and earn attention. The entity that gets the most trust will get the most customers.”
Seth Godin
Cost-effective power of digital Marketing
A recent news report from the Economic Times confirms that digital media growth will take the Indian ad market size to ₹1.2 lakh crore in 2024. No wonder MSMEs will contribute a significant amount to this growth, mainly because digital marketing is a cost-effective tool.
Displaying an ad on social media is often more reasonable than investing in a traditional hoarding. Once a website is set up, writing a blog to share your expertise incurs minimal costs. By leveraging tools like social media and search engine optimization (SEO), businesses can effectively reach their targeted audience without significant financial burden. Social media advertisements provide accurate targeting capabilities, guaranteeing that your message reaches the intended audience. Additionally, SEO helps improve your website’s visibility in search engine results, driving organic traffic and enhancing your online presence. This combination of strategies not only saves costs but also maximizes the impact of your digital marketing efforts.
Targeted Advertising
A report by Gartner Research states that 57% of marketers will prioritize digital paid media in 2024. The main reason behind this trend is that paid media allows businesses to invest specifically in their targeted market, ensuring their advertising budget is used efficiently. By focusing on digital paid media, marketers can leverage precise targeting options, track performance in real-time, and adjust strategies quickly to maximize ROI. This approach not only enhances the effectiveness of marketing campaigns but also ensures that businesses reach the right audience at the right time.
Improved customer engagement
Customer engagement involves building and maintaining relationships with customers by understanding their needs and preferences. It starts from the moment a customer becomes aware of a brand and continues beyond the purchase stage. The goal is to create lasting, mutually beneficial relationships that increase the customer’s lifetime value to the brand.
Good customer engagement leads to better customer experiences, brand loyalty, and higher profits. This is how big brands connect with their customers. Companies like Airbnb, GoPro, and Lego are active listeners who never fail to engage with their customers effectively. By prioritizing customer engagement, these brands not only enhance customer satisfaction but also foster a loyal customer base that advocates for them, driving long-term success and profitability.
Increased Sales and Revenues
Stanford University, in its annual report, mentions the AI Index report. It states that India saw the fifth highest investments last year in startups offering AI-based products and services. As India’s tech era takes shape, AI could prove to be one of the most game-changing technologies. For MSMEs that have kept pace with technology, it is proven that digital marketing and digital products are cost-effective. Embracing these technologies not only helps MSMEs stay competitive but also opens up new avenues for growth and innovation. By leveraging AI and digital marketing, MSMEs can enhance their operational efficiency, reach the right audience, and ultimately drive higher revenue.
However, we cannot deny the fact as mentioned in the CIO Meet 2024 in Chennai. Sridhar Vembu, founder and CEO of Zoho Corporation, highlighted the crucial role of MSMEs in driving the nation’s growth. Speaking to Business Today, he pointed out that many MSMEs still lack access to affordable digital solutions, indicating that there is still much work to be done.
Access to Global Markets
Digital marketing not only broadens the reach of MSMEs but also provides them with the tools to compete on a global scale, driving growth and innovation. This strategic approach can lead to increased brand awareness, higher customer engagement, and ultimately, greater revenue.
Brands like TOMS Shoes, Innocent Drinks, The Sill, and Warby Parker have grown significantly by using digital marketing. By applying different digital marketing strategies, these brands have been able to reach more people, connect better with customers, and create strong online communities.
For example, TOMS Shoes has used social media to promote their “One for One” mission, which appeals to people who care about social causes. Innocent Drinks has built a fun and engaging online presence, using humor and openness to connect with their audience. The Sill has used Instagram to show off their products and teach customers about plant care, helping them build a loyal customer base. Warby Parker has effectively used online ads and content marketing to make it easy for customers to try and buy their glasses online.
These examples show that digital marketing can be a powerful tool for brands to grow their business and create meaningful connections with their customers. By using similar strategies, small and medium-sized businesses can also achieve significant growth and build a strong presence online.
