This article is part of our Analytics, Conversion and Performance resource section
Marketing is at the core of generating revenue. It is also incredibly expensive. After all, most marketing campaigns require extensive research, planning, execution, and a team of highly skilled professionals behind the scenes. So, is it really worth the investment?
The short answer is yes. In a consumer society where competition abounds, investing in an effective marketing strategy is crucial to a company’s brand awareness, customer conversion, and, ultimately, its growth.
Luckily, there are several cost-effective marketing strategies to increase conversions without breaking the bank. Businesses can also use digital analytics to understand where customers are coming from, which campaigns generate engagement, and where potential customers leave the conversion process.
Table of Contents
Affiliate programs
Simply put, affiliate programs or associate programs are marketing strategies in which a company compensates third-party publishers (affiliates) to generate traffic or leads to the company’s services or products.
Amazon is credited with popularizing this marketing scheme. The tech company and e-commerce retailer allowed bloggers and websites to put links to an Amazon product to receive an advertising fee whenever a purchase was made. Nowadays, members of Amazon’s “Associate Program” can earn anywhere from 1% to 20% on commission depending on the type of product.
With the popularization of the internet and the rise of e-commerce, affiliate marketing has become more and more common. About 80% of brands run affiliate programs and allocate 10% of their marketing budget to this type of marketing. According to data by Statista, in 2022, affiliate marketing spend reached $8.2 billion in the U.S. alone.
Referral programs
Referral programs rely on “word of mouth” and a company’s relationship with its customers. Existing customers share a unique link or code with their friends and family. If someone uses that code to purchase the company’s services or products, the referring client then receives a discount, free item, bonus, or any other reward.
Marriott’s refer-a-friend program, for example, allows existing customers to refer up to five new members per year. They will be rewarded with 2.000 points per their referrals’ stay, which can be later used to redeem flights, cruises, and dining experiences among others.
There are several advantages to this marketing strategy. Not only does referral marketing build brand awareness and reach new customers, but it also increases retention. And, needless to say, it reduces customer acquisition costs significantly.
Sign-up offers
Lastly, sign-up offers consist of giving a discount to new customers who sign up for a company’s services. Companies like Uber became well-known for offering discounts on rides to new users and, in some cases, a free first ride.
Yet, if there’s an industry that has perfectioned the sign-up offer strategy, that is iGaming. Sites such as Australia Internet Pokies compile information on the best mobile pokie apps. Here, users can find lists of reliable pokie apps and their offers. Typically, users who sign up for an iGaming platform receive a welcome bonus and a number of free spins. These offers give players a head start and allow them to play new games. However, welcome bonuses may be broken down into several deposits and have their own specifics.
Additional ways to improve conversions
Cost-effective marketing does not end with choosing the right promotional strategy. Businesses should also examine what happens after a potential customer clicks an advertisement, referral link, or promotional offer. A well-designed website can make it easier for visitors to understand a product, compare options, and take the desired action. Small improvements to page layout, messaging, forms, and calls-to-action can therefore make a meaningful difference without requiring a major increase in advertising spend.
One practical approach is to focus on increasing landing page conversions. Landing pages should have a clear purpose and should make the next step obvious. Removing unnecessary distractions, improving the visibility of important information, and matching the page content with the original marketing message can help create a smoother customer journey.
Website performance is another important consideration. Even an effective marketing campaign can lose potential customers if the website takes too long to load. Businesses should therefore understand how website load speeds impact ecommerce conversion rates and identify technical issues that may create friction for visitors.
Companies can also improve conversions by testing different versions of their offers rather than changing everything at once. For example, businesses can experiment with headlines, promotional messages, button placement, discounts, and calls-to-action. Measuring the results of these changes helps determine which approaches generate more completed purchases or sign-ups. This approach allows businesses to make gradual improvements while keeping their marketing budget under control.
To wrap up
While marketing is typically expensive, strategies such as affiliate and referral marketing, as well as sign-up bonuses, can be cost-effective ways to increase customer conversions.
