Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
117
HOW DIGITAL MARKETING DRIVES SALES FOR SMALL BUSINESSES?
Mamajonova Nilufar Shokirjon kizi
Millat Umidi university
ORCID: 0009-0001-5822-0554
Xusnuddinova Sofiya Ziyovuddin kizi
Millat Umidi university
ORCID: 0009-0004-3621-1093
Ibroximova Moxlaroy Muzaffar kizi
Millat Umidi university
ORCID: 0009-0004-5783-6172
ibrohimovamohlaroy372@gmail.com
Abstract.
In this article, we discuss how digital marketing is important to small businesses
based on our survey. We will see factors that help small businesses increase their sales without
spending a big amount of resources as businesses did. What are the privileges of digital marketing
in the the technologies era and what are the difficulties of online marketing that small businesses
face? According to statistics, we will see how methods like content marketing, social media,
Facebook ads, and PPC influenced businesses in numbers. So, from this article, you can learn
different digital marketing approaches, their importance, and how to overcome challenges.
Keywords:
digital marketing, traditional marketing, online businesses, customer loyalty,
sales, content plan, Instagram, Facebook, ads, influencers.
RAQAMLI MARKETING KICHIK BIZNESLARNI SOTUVINI OSHIRISHIGA
QANDAY TA’SIR KO’RSATADI?
Mamajonova Nilufar Shokirjon qizi
Millat Umidi universiti
Xusnuddinova Sofiya Ziyovuddin qizi
Millat Umidi university
Ibroximova Moxlaroy Muzaffar qizi
Millat Umidi universit
Annotatsiya.
Ushbu maqolada biz o’tkizgan tadqiqot asosida kichik biznes uchun raqamli
marketing qanchalik muhimligini muhokama qilamiz. Biz kichik korxonalarga kompaniyalar
kabi katta miqdordagi resurslarni sarflamasdan sotishni oshirishga yordam beradigan omillarni
ko'rib chiqamiz. Texnologiyalar asrida raqamli marketingning qanday afzalliklari bor va kichik
biznes qanday onlayn marketing muammolariga duch keladi? Statistikaga ko'ra, biz kontent
marketingi, ijtimoiy media, Facebook reklamasi va PPC kabi usullar biznesga raqamli ta'sir
ko'rsatganini ko'ramiz. Shunday qilib, ushbu maqolada siz turli xil raqamli marketing
yondashuvlari, ularning ahamiyati, investitsiyalarning daromadliligi va qiyinchiliklarni yengish
usullari haqida bilib olasiz.
Kalit so'zlar:
raqamli marketing, an'anaviy marketing, onlayn biznes, mijozlarning
sodiqligi, savdo, kontent rejasi, Instagram, Facebook, reklamalar, ta'sir qiluvchilar.
UO
‘
K: 339.138
X SON - OKTABR, 2024
117-125
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
118
КАК ЦИФРОВОЙ МАРКЕТИНГ ПОВЫШАЕТ ПРОДАЖИ ДЛЯ МАЛОГО БИЗНЕСА?
Мамаджанова Нилуфар Шокирджановна
Университет Миллат Умиди
Хуснуддинова София Зиявуддиновна
Университет Миллат Умиди
Иброхимова Мохларой Музаффаровна
Университет Миллат Умиди
Аннотация.
В этой статье мы обсуждаем, насколько важен цифровой маркетинг
для малого бизнеса, основываясь на нашем опросе. Мы увидим факторы, которые
помогают малому бизнесу увеличить свои продажи, не тратя при этом большие ресурсы,
как это когда
-
то делали все бизнесы. Каковы привилегии цифрового маркетинга в эпоху
технологий и с какими трудностями интернет
-
маркетинга сталкивается малый
бизнес? Согласно статистике, мы увидим, как такие методы, как контент
-
маркетинг,
социальные сети, реклама в
и
PPC
, повлияли на бизнес в цифрах. Итак, из этой
статьи вы узнаете о различных подходах цифрового маркетинга, их важности,
окупаемости инвестиций и способах преодоления трудностей.
Ключевые слова:
цифровой маркетинг, традиционный маркетинг, интернет
-
бизнес, лояльность клиентов, продажи, контент
-
план,
Instagram, Facebook
, реклама,
инфлюенсеры.
Introduction.
20 or 30 years ago people considered that who has more gold, would be a rich, but now,
people around the world trying to gain more followers on social media like You Tube,
Instagram, Facebook and telegram to increase their income. If social media was meant for
communication and sharing moments of your life, now it became to a marketplace, everyone is
trying to gain auditory and who has more people they earn more. So, it gives big opportunities
for small businesses to increase their sales numbers of loyal customers in short time and the
most important part its cheaper than traditional marketing tactics.
Literature review.
In recent years, digital marketing has grown in popularity as an accessible and cost-
effective way for small businesses to reach a larger audience, enhance consumer interaction,
and drive sales. This literature study investigates many facets of digital marketing, focusing on
how tactics such as social media marketing, email marketing, search engine optimization (SEO),
and content marketing help small businesses develop. Furthermore, issues unique to small
enterprises, such as limited resources and gaining customer trust, are discussed, based on
findings from current studies and industry assessments. (Micka, 2024)
Digital marketing has revolutionized the business landscape, particularly for small
businesses with limited advertising budgets. According to research, digital platforms allow
small businesses to accurately target potential clients while also increasing brand visibility,
which is frequently difficult to do through traditional advertising channels. According to Micka
(2024), organizations that employ digital marketing strategies such as social media marketing
(SMM) and SEO can achieve much more reach at a lower cost than traditional marketing
methods.
Social media marketing (SMM): Social media platforms like Facebook and Instagram
enable businesses to communicate directly with customers, increasing brand loyalty and
awareness. Small businesses may acquire new clients and influence purchasing decisions by
partnering with influencers and using targeted advertising. According to studies, when small
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
119
businesses use social media to communicate with clients, their sales increase significantly.
(Micka, 2024)
Email Marketing: Email remains one of the most effective digital marketing tactics, with
estimations indicating an average return of $36 for every dollar spent (Micka, 2024). Small
businesses can create a steady and scalable revenue stream by segmenting clients based on
their prior behavior and personalizing emails to nurture leads and drive repeat purchases.
(Ahrefs, 2024).
SEO and PPC: SEO helps small businesses rank higher on search engines, which leads to
more organic visitors. Pay-per-click (PPC) advertising enhances SEO by delivering instant
visibility, which is critical for promotions and product launches. Together, SEO and PPC have
been demonstrated to considerably increase traffic and, as a result, conversion rates for small
firms, particularly those with a limited online presence(Ahrefs, 2024).
Content Marketing: By using blogs, videos, and infographics, small businesses may create
credibility and engage people on a deeper level. Content that appeals to target groups can
enhance organic traffic and brand affinity, which is especially crucial for developing trust and
establishing a distinct brand identity (Micka, 2024)
Research methodology.
This article will take a mixed-methods approach, combining primary and secondary
research to investigate how digital marketing affects sales in small businesses. This method
provides a full grasp of the topic through qualitative and quantitative data.
Primary research
Survey development
Objective: To obtain feedback on the success of digital marketing techniques from small
business owners, consumers, and the general public. The target population is small business
owners who actively participate in digital marketing, customers who made purchases from
small companies, ordinary people who engage with small businesses online.
Survey design
Questionnaire structure: The survey will include multiple-choice, and open-ended
questions to collect a variety of opinions. The key areas of focus will be:
Awareness of digital marketing strategies, perceived efficacy of different digital marketing
platforms (e.g., social media, email, SEO), the impact on purchase decisions, the frequency with
which people interact with small businesses via digital platforms.
Data Collection and Data analysis
Sample Size
: Aim for at least 50 respondents to achieve statistical significance.
Participants will be recruited using social media, business networks, and community
organizations.
Administration
: The survey will be distributed online via a platform such as Google
Forms, providing anonymity and promoting open responses.
Secondary research
Literature review
Sources include academic journals, industry reports, and case studies on the impact of
digital marketing on small business sales. Focus areas include historical trends in digital
marketing adoption, statistical data on sales growth, and a comparison of digital and traditional
marketing effectiveness.
Online Resources
Use reliable websites, blogs, and digital marketing platforms to gain current insights and
best practices. Examine government and industry sources that contain information on small
business performance and marketing expenses.
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
120
Analysis.
How digital marketing drives sales for small businesses
Digital marketing methods become more effective day by day than traditional ones. As it
gives the opportunity to analyze consumer behavior, what type of content they liked more even
how many times they see their videos, then according to this analysis they target certain
audiences by selecting their customers by their segmentation. Also, they can build stronger
relationships with customers by messaging via their official social media accounts. As you know
technology and the internet improve day by day by giving us opportunities to make tactics like
chat bots, and Facebook ads, so they can increase conversion of their sales(Ahrefs, 2024).
Understanding digital marketing
Digital marketing refers to a multitude of online marketing tactics that use the internet
and electronic gadgets to promote products and services.
Key components are:
Social media marketing (Facebook, Instagram, Telegram)
Social media marketing (SMM) has altered how businesses communicate with their
customers. SMM, which uses networks such as Facebook, Instagram, Twitter, and LinkedIn,
enables firms to reach a worldwide audience, create relationships, and increase conversions.
SMM helps small businesses communicate with their customers constantly which
improves customer loyalty & brand awareness. SMM also helps to targeting via Facebook where
they can put demographics of their potential customer then it appeals that potential clients that
they targeted. With buying advertisements from popular bloggers, they can gain trust and new
clients by effecting their purchasing decisions as they discover their product on the internet
and especially if its owned by their favorite influencer. If in traditional marketing helps them
appeal 100 to 1000 customers in a day, in SMM they can show their products from 10000 to
100000 customers in a day as usually small businesses accounts would have auditory from
100k till 1mln followers. It means their sales increases 10times more with right strategies of
internet marketing (Micka, 2024).
Email marketing is an effective tool for helping businesses and entrepreneurs
communicate with their customers, create connections, and increase revenue. It works by
providing personalized messages to a list of subscribers who have agreed to receive
communications from your brand. In this blog post, we'll discuss how email marketing works
and how it may benefit your business.
Email marketing is the most cost-effective one with a ROI if they invest 1$ they can get
36$. Sending targeted emails to potential and existing customers to nurture leads and
encourage repeat business. Segmenting email marketing to target certain audience segments
increases conversion of sales. It’s a spread option to communicate directly with clients to
announce new collections, big discounts so they can feel special as they would be informed.
Email gives the opportunity to share our messages to their friends and family which helps to
increase sales (Ahrefs, 2024).
SEO
Search Engine Optimization (SEO) is a marketing technique that aims to increase the
volume and quality of organic (unpaid) visitors to a website via search engines such as Google,
Bing, and Yahoo. The purpose of SEO marketing is to make your website appear as high as
possible on search engine results pages (SERPs) when people search for keywords or phrases
relevant to your website's content, products, or services.
It is the practice of optimizing a website to rank higher in search engine results pages
(SERPs), attracting more organic traffic for small businesses. SEO is the cheapest marketing tool
which helps to find out people who needs their product. When people need certain product or
service, they will search it, if their SEO works well it will rank higher and people trust to higher
ranking websites. So, in the result they will find their products and they also can see reviews of
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
121
customer who bought that product or service then they can buy it as their trust for their
business become stronger. Also, based on Micka, 2024 research it improves content marketing
and efficiency of Pay-Per-Click
(Running paid ads on search engines and social media platforms
to drive traffic to a business’s website
)
operations by coordinating advertising with organic
results (Google, 2023).
Content marketing
Content marketing is a strategic marketing technique that focuses on developing and
delivering valuable, relevant, and consistent information to attract and maintain a specific
audience
–
and, eventually, to drive profitable customer action.
It involves creating valuable content to engage and inform potential customers, such as
blogs, videos, podcasts, and infographics. It helps to improve efficiency of SEO, by increasing
customer trust, loyalty and brand awareness. With storytelling of their product, they make
customers want to buy their product. In the era of Instagram and You Tube most businessmen
uses content marketin
g to build personal brand. It’s a long
-term strategy which can require
more money but when right time comes it helps to boost sales. As people believes to this person,
they know his values, they believe that he can’t produce low quality product as they are fan of
him so this person can easily sell his product (Ahrefs, 2024).
The benefits of digital marketing for small businesses
1.
Cost-effectiveness
The low cost of digital marketing is one of its most significant advantages. Traditional
marketing strategies, such as print advertising and television ads, can be too expensive for
small firms. In comparison, digital marketing provides a variety of cost-effective solutions. For
example, social media marketing and content marketing can be started with a small cost,
allowing firms to reach their target audience without breaking the bank (Mailchimp, 2021).
2.
Target reach
Digital marketing enables small firms to accurately target their customers based on
demographics, interests, and habits. Businesses may target their marketing efforts to specific
groups using platforms such as Google Ads and Facebook Ads, ensuring that their messages
reach people who are most likely to convert. This focused strategy not only raises the likelihood
of a sale, but it also improves the effectiveness of marketing budgets. (Froehlick, 2022)
3.
Increase brand awareness
Digital marketing enables firms to develop and share brand material across several
platforms, increasing brand exposure and recognition. Brand awareness has become an
important aspect in increasing consumer loyalty and maintaining a competitive advantage.
Digital marketing, for example, has transformed the marketing landscape. Businesses that use
digital platforms can successfully target and reach a diverse audience, generating a better
knowledge and appreciation for their brand. (Sy, 2024)
4.
Enhanced customer engagement
Digital marketing enables direct engagement between firms and their customers. Social
networking platforms, email newsletters, and live chat tools on websites allow small businesses
to interact with their audience, answer enquiries, and respond to feedback. This level of
engagement promotes client loyalty and can result in repeat sales, as satisfied consumers are
more likely to return and refer the company to others. (Froehlick, 2022)
Survey results
According to the results of our survey, we can give some recommendations for small
businesses
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
122
As you can see social media considered to be one of the most effective channels for small
businesses by almost 90% of people.
According to this survey they can identify customer purchasing behavior, brand
reputation and quality of content is the most important in digital marketing because clients will
make decisions after checking both factors.
80% of people makes buy product or service after checking social media and etc… so if
small businesses wouldn’t improve and invest to their digital marketing they loose 80%
potential customers.
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
123
Practical applications of digital marketing for small businesses
•
Developing an effective website
A company's website functions as its digital storefront. Small businesses should invest in
establishing a user-friendly, mobile-responsive website that is SEO-optimized. This includes
using relevant keywords, fast loading times, and clear calls to action (CTAs) that direct visitors
to make a purchase or contact the company (Agency Jet, 2024).
•
Implementing SEO strategies
SEO is the crux of digital exposure, representing a comprehensive process of optimizing
their website to go up the ranks on search engine results pages. The careful use of relevant
keywords, meticulous content creation, and an SEO-friendly website layout ensure that their
company appears prominently when potential clients conduct searches relating to their
offerings. In essence, SEO transforms their website into a beacon, increasing the likelihood that
their business will be noticed amidst the wide digital world. (Froehlick, 2022)
•
Utilizing Social Media
Platforms like Facebook, Instagram, and Twitter have developed from social hubs to
formidable battlefields for corporations to launch targeted advertising campaigns. Businesses
can accurately target specific demographics by exploiting the extensive advertising options
included in these platforms. Paid social media initiatives, when effectively implemented, can
increase brand awareness, drive website traffic, and produce quality leads. (Agency Jet, 2024)
•
Exploring PPC advertising
PPC advertising is an option for small firms looking for rapid results. This method enables
companies to bid for ad placement on search engines and social media sites. While it involves
an investment, it can result in increased visibility and traffic, particularly for promotions or new
product launches. (Agency Jet, 2024)
Challenges in digital marketing for small businesses
1.
Limited resources
Usually small businesses start their business with borrowing money so they can’t risk
more. So, digital marketing is more effective and affordable way to increase their traditional
ones. Small businesses need to measure ROI of every channel they’re using,
then by analyzing
it they will decide which one is more cost-effective. But not investing to any strategies of
marketing is the biggest mistake that can cause to bankruptcy, as business opened recently,
they need to make people know and trust their brand (Logica, 2023).
Additionally, businesses need more time to gain their loyal customers, their trust to their
brand, to build brand awareness. Even to gain followers businesses need more than 3 months
to see the return of their investments. So, owner of the business and its investors should be
ready to wait the big results (Logica, 2023).
2.
Customer trust
As I said recently, businesses need time to gain trust of customers. For instance, when I
watch some online stores, I follow them around 1 or 2months before buying something from
them, I’ll see their client’s reviews and the number followers as I believe g
ood online stores will
have more followers at least 10k to 100k (Logica, 2023).
3.
Lack of experience
Small businesses need to hire highly-experienced marketer to decrease risks of wrong
strategies because usually small businesses have problems with identifying their target
audience and positioning which causes to making wrong marketing strategies. Additionally,
Google's algorithm has an influence on site rankings, therefore digital marketing methods are
always changing. It may be difficult to stay on top of these developments and make good use of
different digital marketing channels, particularly when operating a business, managing a staff,
and ensuring client happiness. Without an experience and knowledge, learning to use new
platforms, technology, and marketing channels may be a difficult undertaking (Mailchimp,
2021).
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
124
Discussions and Results
Warby Parker: A Case Study in Digital Marketing Background
: Warby Parker,
founded in 2010, revolutionized the eyewear industry by selling trendy, inexpensive spectacles
online. They wanted to offer high-quality eyewear at a fraction of standard retail rates while
emphasizing social responsibility.
Digital Marketing Strategies
1.
Strong Online Presence:
Warby Parker created a user-friendly website where clients
could browse their assortment and order glasses online. The website featured virtual try-on
technology, which improved the customer experience.
2.
Search Engine Optimization (SEO)
: By focusing on SEO, Warby Parker ensured that
their website ranked well for relevant search words like "affordable glasses" and "designer
eyewear." This improved the organic traffic to their website (Google, 2023).
3.
Content Marketing
: The company invested in content marketing by writing
compelling blog entries and eye care instructions. This not only informed consumers, but also
helped Warby Parker establish itself as an expert in the eyeglass industry (Google, 2023).
4.
Warby Parker successfully leveraged
sites
such as Instagram and Facebook to
showcase their products and communicate with customers. They encouraged user-generated
content by asking customers to post images of themselves wearing their spectacles.
5.
Email Marketing
: They created a large email list and sent tailored newsletters with
specials, new product launches, and useful suggestions to keep customers engaged and
informed.
(Froehlick, 2022)
Rapid Growth
: By 2015, Warby Parker's revenues had surpassed $100 million,
demonstrating their strong digital marketing methods.
Customer Reach
: As of 2021, the brand had over 8 million customers, indicating strong
market penetration. Warby Parker was valued at almost $3 billion in a 2021 financing round,
suggesting high investor confidence in the company's internet strategy.
Sales Growth
: Despite the pandemic, Warby Parker announced a year-over-year revenue
growth of roughly 20% in 2020, demonstrating the strength of their online business model.
Market Share
: Warby Parker is expected to account for over 20% of the internet eyeglass
market, firmly establishing itself as an industry leader.
Warby Parker's internet marketing tactics resulted in quick development. They swiftly
established themselves as market leaders in the eyewear industry, reaching millions of clients.
The brand's focus on consumer involvement, along with smart use of digital platforms, led to
significant sales growth and broad awareness.
(Froehlick, 2022)
Return on investment
–
ROI of digital marketing
ROI shows how much profit or lose they made by investing in certain internet marketing
channel. Because of the nature of some marketing strategies may take some time before their
entire marketing spend yields a noticeable return (business.com, 2020).
It has a formula
–
Net Profit / Total digital marketing costs *100%
Example: retailer made 5000$ by spending 500$ to content, 300$ advertisement by
blogger and 300$ to target
5000$/1100$*100%= 454% its good ROI
5:1 is a good ROI
10:1 best ROI
Digital marketing tools with the best return on investment:
36:1 email 22:1 for SEO
PPC 2:1
(Froehlick, 2022)
Iqtisodiy taraqqiyot va tahlil, 2024-yil, oktabr
www.e-itt.uz
125
Small firms should emphasize digital marketing solutions that are appropriate for their
target demographic and budget. Companies that continuously measure ROI and modify
techniques can maximize their marketing impact and establish a loyal consumer base over time.
Conclusion.
In today's digital landscape, small businesses profit greatly from digital marketing's cost-
effectiveness, reach, and consumer involvement. The article looks into specific methods such
as SEO, content marketing, social media marketing, and email marketing, emphasizing their
advantages and offering practical implementation advice. It highlights the necessity of creating
useful content, properly utilizing social media channels, and optimizing websites for search
engines. While admitting the obstacles that small firms confront, such as resource restrictions,
creating trust, and acquiring knowledge, the essay makes effective advice. It highlights the
significance of using several channels, prioritizing content marketing, and investing in data
analytics to make more educated decisions. Warby Parker's success story is a powerful case
study. Their rapid development, consumer reach, and market leadership position are due to
their strategic use of digital marketing, demonstrating that small firms can achieve comparable
success. Finally, the paper concludes that digital marketing is a game changer for small firms,
allowing them to compete with larger competitors, reach new audiences, and create long-term
relationships with customers. It prepares individuals to succeed in the digital age and achieve
long-term success.
Reference:
Agency Jet (2024). Agency Jet, LLC. [online] Agencyjet.com. Available at:
https://www.agencyjet.com/blog/unveiling-digital-marketing-success
Ahrefs (2024). 7 стратегий цифрового маркетинга, которые действительно
работают. [online] Alibaba.com Reads.
Available at: https://reads.alibaba.com/ru/7-digital-
marketing-strategies-that-actually-work/?gclid=Cj0KCQjw7Py4BhCbARIsAMMx-
_JKsBXcIBhd3vWqqF3cI0YGNyhyQhl3BJRV-
UzFxTwEZlrF752RTTYaAiRYEALw_wcB&src=sem_ggl [Accessed 28 Oct. 2024].
Froehlick, D. (2022). 5 Practical Ways to Use Digital Marketing | EMC Marketing. [online]
Emcmarketing.com. Available at: https://emcmarketing.com/5-practical-ways-to-use-digital-
marketing/ [Accessed 28 Oct. 2024].
Google (2023). SEO Starter Guide: the Basics. [online] Google Developers. Available at:
https://developers.google.com/search/docs/fundamentals/seo-starter-guide.
Logica (2023). 5 Digital Marketing Challenges Faced by SMEs and How to Overcome Them |
Logica Digital. [online] www.logica-digital.co.uk. Available at: https://www.logica-
digital.co.uk/post/5-digital-marketing-challenges-faced-by-smes-and-how-to-overcome-them.
Mailchimp (2021). What is Digital Marketing? A Beginner’s Guide
- Mailchimp. [online]
Mailchimp. Available at: https://mailchimp.com/marketing-glossary/digital-marketing/.
Micka, M. (2024). It’s becoming more popular to use voice search and customize content
experiences. If you want to stay ahead of the curve, you need to adapt to these changes. [online]
Linkedin.com. Available at: https://www.linkedin.com/pulse/7-major-digital-marketing-
channels-how-effective-mario-micka-xlyee [Accessed 25 Oct. 2024].
Sy, M. (2024). Top Industries That Will Need Digital Marketing the Most by 2024. [online]
Good Vibe Squad
TM
. Available at: https://www.goodvibesquad.com/blog/top-industries-that-
will-need-digital-marketing-the-most-by/ [Accessed 28 Oct. 2024].
