Digital marketing can be a powerful tool for businesses looking to reach new customers and grow their brand. However, for businesses in New Zealand, there are a few unique challenges that must be taken into account when creating a digital marketing strategy.
The New Zeland Audience
First and foremost, New Zealand is a small market with a population of less than 5 million people. This means that there is less potential for reaching a large number of customers compared to larger markets like the United States, which most of the digital marketing advice out there is tailored for. Additionally, the majority of the population is concentrated in a few major cities, making it even more important for businesses to target their marketing efforts effectively.
Competition for NZ businesses
The small population means there is a high level of competition for NZ businesses with domestic audiences. With a relatively small market, many businesses are competing for the attention of a limited number of customers. This means that businesses must work extra hard to stand out from the crowd and make their products and services visible to potential customers. It also means the cost of advertising in some industries can be very high.
NZ Export Businesses
Many New Zealand businesses rely heavily on exports, especially to the islands and Asia. For export businesses or businesses that sell products internationally, the audience size is less of a problem. However, achieving a good digital presence in these regions requires an understanding of the cultural nuances and languages in those countries, which can be a complex task. And the remoteness of our country can cause large lead times, which frustrates International customers who are often used to outstanding shipping services from companies like Amazon.
Opportunities for New Zealand businesses to succeed
In spite of these challenges, there are a number of opportunities for New Zealand businesses to succeed with digital marketing. For example, the country has high penetration rates for social media and mobile internet usage, which provides a wealth of opportunities for businesses to connect with customers through digital channels. Furthermore, by focusing on niche markets, businesses can more effectively target specific groups of customers, allowing them to reach more people with fewer resources.
Customer acquisition costs
Acquiring new customers can be costly in NZ, and may initially impact profitability. However, businesses can offset this by implementing a retention strategy that focuses on increasing the lifetime value of each customer. By investing in customer experience, building lasting relationships, fostering retention, and encouraging referrals, businesses in New Zealand can achieve a profitable return on their digital marketing investments over time. This approach is common in many industries, where the initial sale is used as a loss leader, but the long-term value of a customer is profitable when retention is prioritised through effective marketing strategies. A prime example of this is are meal delivery companies like Hello Fresh, who offer large discounts to acquire new customers but retain them for an extended period of time (months or years), resulting in a profit over many orders.
By staying aware of these unique challenges and having the experience to navigate them, we can leverage digital marketing techniques, such as search engine marketing and social media advertising, to create highly effective marketing campaigns that will help Kiwi businesses reach new customers, build brand awareness and increase sales.
While the unique digital marketing challenges of a New Zealand business can make it harder to succeed in the digital landscape, it also presents opportunities for those who understand the market and adopt an effective digital strategy.