Strategy Is The Most Misunderstood and Overused In Digital Marketing…
When we discuss strategy, it’s not simply because it’s a buzzword in business; it forms the foundation of everything we do. Unfortunately, the term “strategy” is often misused. Many equate strategy with tactics or campaigns, such as asking, “What’s your strategy for growing your Facebook followers?” However, these are actions, not complete strategies.
A true strategy is a plan intended to achieve a specific purpose. Even this definition can be misleading. Experts like Ann Latham argue that strategy isn’t merely a plan. In fact, many leaders spend very little time on strategic thinking, and this lack of focus can hinder long-term success.
“The biggest problem with the way organisations think about strategy is they confuse strategy with plans. They aren’t the same thing. Strategic planning is an oxymoron”
Ann Latham
Check out the Strategy DNA video from our Director, Dan….
How Many Strategies Should a Business Have?
The answer depends on the size of the business. A large corporation might have multiple strategies for different departments, such as finance, HR, or marketing, all aligned under a single overarching strategy. For smaller businesses, however, having one clear strategy per year, supported by a few departmental strategies, is often sufficient. Each department’s strategy must align with the business’s core objectives; too many strategies can lead to confusion and inefficiency.
It is also important not to tweak strategies too often. Strategy should be visionary, not reactionary. Constantly adjusting the plan based on short-term results may prevent you from recognising the long-term effects.
Strategy Simplified: The DNA Model
At the core of any effective strategy is a simple process: Diagnose, Navigate, and Act. These steps ensure clarity and focus:
- Diagnose: Understand your current position. What is your brand’s positioning statement? Who are your key customers, and what value are you offering? This foundational understanding is crucial before you take any action.
- Navigate: Once you’ve diagnosed your current state, it’s time to chart a path forward. Set clear objectives aligned with your business values and the market’s needs.
- Act: Execute your plan, but with patience. Allow your strategy time to unfold and measure progress over time, rather than reacting to every short-term fluctuation.
The Importance of Knowing Your “Why”
One of the most critical elements of a strategy is understanding the “why” behind your business. This is more than just making money—there’s a deeper reason for choosing your specific business. Simon Sinek’s famous “Golden Circle” concept highlights this well, with Apple serving as a prime example. Apple’s “why” is about challenging the status quo, which drives its innovation and success.
Many businesses become lost in the “what” and “how” of their operations, but understanding why they do what they do creates clarity and focus. This clarity helps differentiate a business from its competitors, increasing the likelihood of success.
Real-World Example: Positioning and Growth
A recent campaign Strategy Plus ran on behalf of a commercial interior design agency, serves as a real-world example of the importance of maintaining trust with your core audience and adhering to the fundamentals of a positioning statement.
By defining their positioning – offering high expertise at a reasonable price to independent businesses – they grew significantly in their region. However, when they considered expanding into London, they briefly lost sight of their core audience. London seemed attractive, but they risked moving away from their primary focus on independent, budget-conscious businesses in other regions.
This example illustrates how vital it is to stay true to your strategy and not lose focus on your core objectives, even when tempted by potential opportunities elsewhere.
Building a Successful Digital Marketing Strategy: Key Lessons
Crafting an effective digital marketing strategy is crucial for business success, requiring careful attention to positioning, audience understanding, and the ever-evolving digital landscape.
The Importance of Positioning
One of our clients sought to increase their reach by targeting new areas, specifically London. To achieve this, we created an ad campaign with a new landing page, including a London address (a virtual one). Initially, this seemed like a smart move- after all, London is a large, vibrant market full of opportunities! However, we did not anticipate the negative impact this would have on the client’s core audience, primarily independent businesses outside London looking for affordable solutions.
Despite some initial inquiries from London, we noticed a sudden drop in inquiries from the rest of the country. The reason was clear—our core audience perceived the business as “London-based,” leading them to assume that the company would charge more than a non-London-based one. As a result, within just two weeks, the quality and quantity of inquiries from the rest of the country diminished significantly. After analysing the situation, we found that the only major change was the focus on London.
To rectify this, we swiftly removed the London address from the site and campaign, and within a week, inquiries started flowing in again. This was a stark reminder of how critical it is to stay aligned with your positioning statement and understand your audience’s perceptions. Deviating from these fundamentals, even with seemingly positive intentions, can harm your marketing efforts.
The Power of a SWOT Analysis
Once you’ve established your positioning, it’s essential to conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to evaluate your digital marketing standing. Here’s an example of a basic digital marketing SWOT:
Strengths:
– A 3% conversion rate on the website, which is above industry standards.
– A 10% engagement rate on Facebook, showcasing a strong presence on social media.
Weaknesses:
– Low organic traffic and few new online reviews or Google rankings.
– A lack of a structured content marketing strategy.
Opportunities:
– A large, untapped database that hasn’t been fully utilised.
– No existing referral schemes and the potential to set up Google Shopping for e-commerce.
Threats:
– The misuse of AI in automation, which, while helpful, can lead to poor customer experiences if not managed correctly.
– Competitors building their domain authority through digital PR, potentially leaving the client behind.
A SWOT analysis doesn’t need to take days to complete—often, half a day is sufficient to gather valuable insights into your digital marketing landscape. By doing this, you can better understand where you are and identify areas for improvement.
Setting SMART Goals
Once you know your strengths and weaknesses, you need to establish clear goals. This is where the concept of SMART goals comes into play: Specific, Measurable, Achievable, Realistic, and Time-bound. However, goals don’t always need to be realistic. In some cases, aiming for the stars can lead to unexpected breakthroughs!
For instance, if a business sets a goal to double its growth within a year, even if it seems unrealistic based on past performance, it can push the team to think creatively about how to achieve it. This might involve rethinking the budget, adding resources, or restructuring processes. The result might not be 100% growth, but it could lead to a much higher achievement than the original conservative goal.
A famous example is Boeing’s attempt to reduce the time it took to build a jumbo jet from nine months to three. They didn’t hit the three-month mark, but they did manage to reduce it to five months—something they never thought possible before setting such a bold target.
For digital marketing, SMART goals might look like:
– Increasing Facebook inquiries by two each month.
– Achieving five referrals per month.
– Boosting organic traffic by 5% month-on-month.
– Increasing website conversions from 1% to 2%.
– Growing SQLs (Sales Qualified Leads) by 10% each month.
By having these goals in place, everyone on the team is clear about what they need to achieve, holding them accountable.
Setting the Guidelines
Once you’ve set your goals, it’s vital to provide clear guidelines on how to achieve them. These guidelines act as guardrails, ensuring that while you aim for ambitious growth, you don’t jeopardise the business’s financial health or brand reputation.
For example, while your goal might be to double sales, you may have restrictions such as not allowing discounts or not permitting resales to existing customers. The guidelines should also cover aspects such as:
– Target audience: Clearly define who your buyer personas are.
– Channels: Outline the platforms you’ll be using, such as Google Shopping, Amazon, social media, or face-to-face sales.
– Resources: Define the internal and external resources available, including team members and digital marketing agencies.
– Budget: Set a realistic budget that aligns with your goals and available resources.
The Importance of Consistent Messaging
Lastly, consistent messaging across all channels is vital for establishing and maintaining a solid brand identity. Whether you’re communicating via social media, email, or your website, your messaging should reflect your core values and resonate with your audience. Consistency builds trust and makes it easier for your customers to recognise your brand.
Developing a robust strategy is essential for long-term success. It’s not merely about creating a plan; it’s about understanding your purpose, positioning, and the value you provide. Through consistent messaging and a keen focus on your audience’s needs, you can establish a strategy that drives growth and fosters meaningful connections with your customers.
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