Online Marketing Beats Bricks and Mortar for High Priced Sales
Blog 8: Online Marketing Beats Bricks and Mortar for High Priced Sales
12/18/14
Bob Smith, PMP, GG (Graduate Gemologist)
The Problem: Bricks and Mortar vs. Online Marketing
Harriet, my wife, and I graduated together from Rice in Houston, Texas in 1956. Yes, 58 years ago. We got married five days later in Dallas and started off on our careers and family. Harriet’s parents had friends in the jewelry business in Dallas and they helped us buy engagement and wedding rings.
The engagement ring had a nice diamond, one carat, VS1 Clarity (not flawless but close), E Color which is second to best, the color D. They let us pay for it over time since I was struggling with my new job as an Ensign in the U S Navy that paid a whopping $350 per month.
A few years ago, the diamond came loose in the setting and fell out. We could never find it and have not replaced it to this day.
I have decided it is time to recommit, so to speak, and I want to buy Harriet a new diamond ring of similar quality as a token of that commitment.
Normally, I would head to downtown Cincinnati to one of the better jewelry stores and start shopping for this new ring. But now, I have an alternative, search the Internet at least to get an idea of pricing, availability, quality, credibility, and all those things you look for when you are making a major purchase.
Searching for “diamond ring”, Google comes up with some familiar brands right at the top of the first page—Tiffany’s, Kay’s, Zale’s, and Blue Nile, to name a few. Blue Nile is Internet only, so I go with that one thinking they might have a best value.
Blue Nile has lots of choices and they allow me to build my own ring—virtually. I select round, ideal cut, .9 to 1.2 carat weight, VS1 clarity and D-F Color. That’s pretty close to what Harriet originally had. Results were instantaneous. They had 3choices right on my specs at about $7,000. Now the hard question: will I spend $7K with an unknown company which only shows up on the Internet? Will I buy a diamond for this much money and I have only seen a picture of it?
With some research I find that Blue Nile only sells on the Internet. The others have both online and bricks and mortar stores.
Looking at this problem from the vendor’s side, here are some issues their marketing team must consider:
- How do I get Bob Smith to find my website?
- How do I get my site to the top of the page when Bob searches for “diamond ring?”
- How can I motivate him to stay on the site long enough to get to my “build your own ring” tool?
- How can I convince Bob Smith that he will receive the quality promised in a timely manner?
- What guarantees must I make to establish myself as a reliable vendor with no risk of loss of money to Bob?
- What details are required to establish a data base of information about inventory on hand?
- How to I make it easy to navigate my website and to build the ring requested with current information?
Two basic categories of Online Marketing answer most of these and the other questions which the Bob Smiths of the marketplace must have answers for before they are willing to risk $7,000 with Blue Nile or any other online vendor—Social Media Marketing and Content Marketing.
Social Media Marketing
The other best way to implement online marketing to get higher sales is through the use of social media marketing (SMM). Tons of new applications exist in this category—some free, some very expensive.
The more popular social media sites include Facebook, Twitter, Google Plus, etc. With SMM you are able to hit specific target audiences, finding ample opportunities to promote your brand in a wide range of prospects. With my limited marketing budget and small sales objective, all I need to do is to establish a good presence on Facebook and Linked In. Supplementing the use of Facebook and Premium Linked In with a good website and regular email campaigns to my opt-in list of prospects, I can get all the contacts I need to meet my sales objectives.
Search engine marketing (SEM)
SEM comprises two elements, search engine optimization (SEO) and Paid Search Advertising (PSA). SEO helps to get free traffic. PSA allows us to getting traffic by paying for ads.
Content Marketing
Another way to catapult sales via online marketing is content marketing–the heart of online marketing campaigns. Content helps in creating regular visitors. The theme of content marketing is quality content, which readers want to read.
Content Marketing uses text, images, and videos. The ultimate goal is to build up a base of regular visitors who become buyers as they follow the calls to action built into the website.
Summary
Sales in Online marketing is growing faster than in-store sales. People are beginning to accept online marketing for high-priced items and to believe in the credibility of companies who justify their position through good online marketing strategies.
For a small company such as mine, the use of Facebook and Linked supplemented with email campaigns and a good PR execution are enough to generate the sales I require.
Like bricks and mortar marketing, online marketing requires that the vendors have a solid marketing plan which they execute meticulously.
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