CC BY
17
DIGITAL MARKETING STRATEGIES AND ACQUISITION OF NEW CUSTOMERS FOR SMES IN SANTA ELENA PROVINCE
JENIFFER GARCÍA-MENDOZA 2WILMA GUERRERO-VILLEGAS
1/2 Universidad Estatal Península de Santa Elena, Ecuador 1[ORCID: 0000-0003-2886-8998], 2[ORCID: 0000-0001-9028-9247], [email protected]
Abstract: This study analyzes digital marketing strategies in SMEs from the Santa Elena Province, evaluating their impact on attracting and retaining customers, as well as on business growth. Methodology: Using a mixed-methods approach, 239 surveys answered by business owners were examined out of a total of 279 sent forms, along with 8 interviews with owners and marketing managers. Results: The findings indicate the effectiveness of digital channels such as social media, email, and web positioning. Strengthening online presence and the reach of SMEs in the local market significantly influences customer acquisition and satisfaction. Conclusions: Based on the results obtained, it is concluded that SMEs in Santa Elena adopt diverse digital marketing tactics based on size, focused on driving sales and customer service. Despite facing knowledge, competition, and resource constraints, they strive to adapt to the digital environment. This study provides insights into the implementation of digital marketing strategies in SMEs for improving competitiveness and business performance in the Santa Elena Province
Keywords: Digital marketing, SMEs, Customer acquisition, Effective strategies, Online presence
1. INTRODUCTION
The emergence and rapid expansion of the internet, with exponential levels, along with technological advances have modified the business models of companies, their relationship management with customers and the promotion and distribution channels of their products or services (Kotler, Kartajaya, & Setiawan, 2016). In this scenario, digital marketing is considered a fundamental tool for small and medium-sized enterprises (SMEs) for their survival and growth, in a business and socioeconomic context that becomes increasingly competitive (Chaffey & Ellis-Chadwick, 2019). Digital marketing includes the use of digital channels and techniques aimed at better communicating the value of an offer to customers and attracting new customers (Ryan, 2016).
There are many studies, in the words of Tiago & Veríssimo, (2014) and Resnick et al., (2016), which have argued that digital marketing contributes to the development of SMEs, as long as a correct alignment of their commercial strategies is developed, with the specific characteristics of each product or service and the real needs of customers.
To some extent, and despite the advances in the study of digital marketing, it is a challenge for many SMEs, the design and implementation of digital marketing strategies, if one takes into account the limitation of resources, competencies and skills in the digital field by entrepreneurs (De Pelsmacker, 2018).
In this sense, this study seeks to analyze the digital marketing strategies used by SMEs in the Province of Santa Elena, an area where research on the subject is still scarce. By identifying successful practices and challenges faced by these companies, this work aims to contribute to knowledge on the subject and provide useful recommendations to improve the competitiveness and business performance of SMEs in the region.
At the Latin American level, therise of new technologies and access to them by increasingly broad segments of the population, together with the adoption of public policies on the democratization of the internet, by local and national authorities, have allowed digital marketing to have higher levels of growth (Moraes & Echeverría, 2016). Valdés, (2018) I consider that as a digital business ecosystem expands, in it the needs of highly effective marketing strategies, SMEs in the region increase.
Oliveira, Cortimiglia and Ghezzi (2017), highlighted the importance of digital marketing in SMEs in the region, this implies that companies must channel their efforts and resources into developing and maintaining a permanent and innovative online presence. It should be noted that according to Medina and Montes (2015) in Colombia, and Avello and Vásquez-Parraga (2017) in Ecuador, they have shown that an adequate digital marketing plan designed and adapted to the needs of customers, allows to attract new customers, create loyalty programs and as a final result achieve a better positioning in the market.
However, despite the growing importance of digital marketing in Latin America, there is a significant gap in the academic literature on the implementation of digital marketing strategies in Latin American SMEs, especially in regions such as the Santa Elena Province. This research seeks to fill this gap and provide specific knowledge on the practices and challenges of digital marketing in SMEs in the region State of the art
The beginning of the theme of digital marketing dates back to the 1990s, when the rise of the Internet allowed companies to start exploring new ways to promote their products and services through digital media (Rowley, 2008). Since then, digital marketing has experienced rapid growth and evolution, driven by technological advancement and mass adoption of mobile devices, social media, and ecommerce platforms (Kotler et al., 2016).
For Chaffey & Ellis-Chadwick, (2019). The state of the art of digital marketing is focused on a series of tools, techniques and channels for adequate corporate communication, as well as a convenite promotion and connection of SMEs with customers, in the digital world.
If trends based on academic production and also on professional practice are analyzed, it will be concluded that these trends point to segmentation and personalization with customers, all this based on communication, according to Kumar & Reinartz, (2018), in the measurement and analysis of results (Pfeiffer & Kumar, 2019), the increasing use of artificial intelligence tools and automation in marketing (Lovelock & Shankar, 2021), and the creation of omnichannel digital experiences for the customer (Melero et al., 2016).
For their part, Resnick et al., (2016),said that the state of the art identifies the levels of change and adaptation of digital marketing strategies to strengthen the high positioning of businesses. Finally, it involves the different challenges faced by SMEs when implementing digital marketing (De Pelsmacker, 2018).
Objectives and scope of the research
The study entitled "Digital marketing strategies and attracting new customers in SMEs in the Province of Santa Elena" has as its main objective to analyze how small and medium-sized enterprises (SMEs) in the Province of Santa Elena use digital marketing to attract and retain customers. In addition, it seeks to identify the most effective practices and determine how these strategies impact the growth and development of SMEs in the region.
To achieve this objective, the research shall cover the following specific objectives:
a) Identify and characterize the digital marketing strategies adopted by SMEs in the Province of Santa Elena.
b) Analyze the results in the implementation of digital marketing strategies in relation to the attraction of new customers, loyalty and profitability.
c) Identify the key success factors in the implementation of digital marketing strategies in SMEs, including staff knowledge and skills, economic and technological resources, and adaptation to trends and changes in the digital environment.
d) Examine the barriers and challenges faced by SMEs when implementing digital marketing strategies and propose solutions to overcome these difficulties.
e) Propose recommendations to improve digital marketing strategies in SMEs in the Province of Santa Elena, based on the best practices identified and the specific needs of local companies.
The scope of the investigation
The study covers SMEs that have adopted digital marketing strategies in the province of St. Helena.
It is also expected that the conclusions obtained, as derived from the study, will be applicable to SMEs located in other regions and that share similar characteristics.
2. METHODOLOGICAL STRATEGIES OR MATERIALS AND METHODS
To carry out the study on digital marketing strategies and attracting new customers of SMEs in the Province of Santa Elena, the following methodological and material strategies were used: Mixed methodological approach: The study combined quantitative and qualitative techniques, in order to understand in greater depth the use of digital marketing of SMEs in the province. Selection of the sample: For the selection of the sample of SMEs s and considered several criteria such as the sector to which it belongs, time spent in the market, business line and level of adoption of digital marketing strategies.
Surveys: An online survey was applied to the owners and managers of digital marketing of the previously selected companies, the bank of questions revolved around digital marketing strategies, with use of channels and networks, their degree of effectiveness budget for digital marketing. Interviews: 8 semi-structured interviews were conducted with owners and marketing managers, with the purpose of collecting first-line information on current digital marketing practices and understanding their problems and relevant solutions.
Data analysis: Data of quantitative nature were processed based on descriptive statistical techniques, while data of qualitative nature were analyzed according to the content by topic and its context.
Triangulation: For an adequate interpretation and validation of the data, it was necessary a triangulation of the data obtained both quantitative and qualitative, this was done in order to identify countriesand certain trends of digital marketing in SMEs Sample calculation
Based on information from the Superintendence of Companies ofEcuador in the province of Santa Elena, 678 companies are registered, as of 2020. In the study, this information is referred to as the universe of study.
In order to establish the sample size, from the aforementioned universe of 678 companies, with a margin of 5% error and a confidence level of 95%, the following formula was used: n = (ZA2 * p * (1 - p)) / EA2
Where: n = sample size Z = Z-value corresponding to the desired confidence level (1.96 for a 95% confidence level) p = estimated proportion of the population (usually assumed to be 0.5 when no prior information is available) E = margin of error (0.05 for a 5% error)
In the first instance, the sample size was calculated, regardless of the finite size of the universe (678 companies):
n = (1.96A2 * 0.5 * (1 - 0.5)) / 0.05A2 n « 384.16
It is obtained by rounding that the sample size is 385 companies.
As the study universe is finite (678 companies), the sample size was adjusted with the following formula:
n_ajustado = n / (1 + (n - 1) / N)
Where: n_ajustado = adjusted sample size n = previously calculated sample size (385) N = size of universe (678 companies)
n_ajustado = 385 / (1 + (385 - 1) / 678) n_ajustado = 278.29
Finally, (with rounding), the adjusted sample size of 279 companies was obtained. Therefore, with a confidence level of 95% and a margin of error of 5%, a sample of 279 companies from the universe of 678 companies is required.
Criteria for inclusion in the selection of companies in the sample
In order to make an adequate selection of the companies to be surveyed, some inclusion criteria were taken into account. These criteria allow the sample to be more representative of the target population and therefore obtain more reliable results.
For the selection of companies in the sample of this study on digital marketing strategies and attracting new customers in SMEs in the province of Santa Elena, the following inclusion criteria were considered:
Table 1. Inclusion criteria for sample selection
Inclusion Committee Description
Economic sector Companies from specific economic sectors or all sectors present in the Province of Santa Elena.
Company size Micro, small and medium-sized enterprises, or a combination of different sizes of companies.
Geographical location Companies located and operating within the Province of Santa Elena.
Digital Marketing Implementation Companies that have implemented some form of digital marketing (social media, online advertising, email marketing, etc.).
Minimum operation time Companies that have been in operation for a minimum period, such as at least one year or two years.
3. RESULTS AND DISCUSSION
Descriptive Statistics
Table N ° 1 Business Location
Valid Cumulative
Frequency Percentage percentage percentage
C. Freedom 107 44,9% 44,9% 45,0%
Business Location C. Salinas 52 21,8% 21,8% 66,8%
C. Santa Elena 79 33,2°% 33,2% 100,0%
Total 238 100°% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena.
From the results obtained, it can be established that approximately 5 out of 10 SMEs are located in the La Libertad Canton, 3 out of 10 in the Santa Elena Canton and only 2 out of 10 are located in the Salinas Canton.
Table N ° 2 Economic sector to which it belongs
Valid Cumulative
Frequency Percentage percentage percentage
Agriculture 6 2,5% 2,5% 2,5%
Commerce 112 47,1% 47,1% 49,6%
Construction 15 6,3% 6,3% 55,9%
c . Factory 2 0,8% 0,8% 56,7%
Economic ------—
sector Other 6 2,5% 2,5% 59,2%
Services 64 26,9% 26,9% 86,1%
Technology 22 9,2% 9,2% 95,4%
Tourism 11 4,6% 4,6% 100,0% Total 238 100,0% 100,0%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. In the case of the economic sector, about 5 out of 10 SMEs carry out economic activities aimed at trade. Approximately 3 out of 10 SMEs offer services. Likewise, only 1 in 10 provide technology-
related services. Of the total respondents, only 2.5% of SMEs are engaged in poultry farming; Animation of events and activities related to Health.
Table N ° 3 Size of the company
Valid Cumulative
Frequency Percentage percentage percentage
Medium-sized
companies (51-250 15 6,3°% 6,3% 6,3%
employees)
Microenterprise (1-Company 10 employees) 144 60,5°% 60,5% 66,8%
size Small Business (1150 employees) 79 33,2% 33,2% 100,0%
Total
238
100,0% 100,0%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. Regarding the size of the company, by the number of workers, 6 out of 10 are microenterprises that have between 1 and 10 employees, while 3 out of 10 are small companies with 11 to 50 employees, and less than 1% are medium-sized companies.
Table N°4 Years in the market
Valid Cumulative Frequency Percentage percentage percentage
From 1-3 years 72 30,3% 30,3% 30,3%
From 4-6 years 74 31,1% 31,1% 61,3%
,ea[s 111 me From 7-10 years 29 12,2% 12,2% 73,5%
More than 10 years 43 18,1% 18,1% 91,6%
Less than 1 year 20 8,4% 8,4% 100,0%
Total 238 100,0% 100,0%
Source: Survey applied to people responsible for marketing decisions and the implementation of
digital marketing strategies in SMEs in the province of Santa Elena.
On the other hand, 3 out of 10 SMEs have 1 to 3 years in the market. Similarly, 3 out of 10 companies
are constituted between 4 to 6 years, while only 2 out of 10 SMEs have more than 10 years of
permanence in the market.
Table N ° 5 Responsible for digital marketing
Valid Cumulative
Frequency Percentage percentage percentage
External marketing agency 10 4,2% 4,2% 4,2%
Internal Marketing Department 43 18,1% 18,1% 22,3%
Responsible The owner of the company 79 33,2% 33,2% 55,5%
Specific employee 75 31,5% 31,5% 87,0%
There is no specific person responsible 31 13,0% 13,0% 100,0%
Total 238 100,0% 100,0%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena.
On the other hand, 3 out of 10 SMEs are responsible for digital marketing focused on the owner of the company and a specific employee who carries out this function. However, approximately 2 out of 10 microbusinesses have their own internal marketing department to develop productivity strategies.
Table N ° 6 Annual budget for digital marketing
Valid Cumulative
Frequency Percentage percentage percentage
5-10% of total budget 76 31,9% 31,9% 42,4%
11 -20% of total budget 25 10,5% 10,5% 10,5%
Budget More than 20% of the total budget 9 3,8% 3,8% 46,2%
Less than 5% of total budget 70 29,4% 29,4% 75,6%
I don't have a
specific budget for digital marketing 58 24,4% 24,4% 100,0%
Total 238 100,0% 100,0%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena.
As for the annual budget used for digital marketing, only 3 out of 10 SMEs have 5 to 10% of their total budget allocated for this activity. Approximately 3 out of 10 SMEs have less than 5% of their total budget predestined to the creation of content for E-commerce. At least 2 out of 10 microenterprises do not have defined a specific budget, necessary to develop the promotion, dissemination and advertising of their products or services. OBJ 1.
Table N°7 Digital marketing strategies implemented by SMEs in the Province of Santa
Elena.
Size of companies
Medium-sized companies Microenterprise (1-10 Small Business (11-50
(51-250 employees) employees) employees)
Business Location
C C C C C C C C7~
Freedo Salina Santa Freedo Salin Santa Freedo C. Santa
m s Elena m as Elena m Salinas Elena
Recount
Email marketing 0 0 0 0 1 0 0 1 0
%total 0% 0% 0% 0% 0,4% 0% 0% 0,4% 0%
Digital marketing strategies you use
Email marketing;
SEO (search 0 0 0 0 0 0 1 0 1
engine
Email marketing; Online
000000 1 00
advertising; Content Marketing
%total 0% 0% 0% 0% 0% 0% 0,4% 0% 0%
optimization);
Other
%total 0% 0% 0% 0% 0% 0% 0,4% 0% 0,4%
Affiliate Marketing 0 0 1 0 0 0 0 0 0
%total 0% 0% 0,5% 0% 0% 0% 0% 0% 0%
Content Marketing 0 0 0 0 0 1 0 0 0
%total 0% 0% 0% 0% 0% 0,4% 0% 0% 0%
Other 0 0 0 3 1 2 0 0 2
%total 0% 0% 0% 1,3% 0,4% 0,8% 0% 0% 0,8%
Online Advertising 0 0 0 0 1 1 2 1 0
%total 0% 0% 0% 0% 0,4% 0,4% 0,8% 0,4% 0%
Social Media 2 1 2 34 15 26 11 5 3
%total 0,8% 0,4% 1% 14,9% 6,4% 10,9% 4,7% 2,1% 1,3%
Social media;
Email marketing; Online 0 1 1 9 1 3 7 0 2
advertising; Other
%total 0% 0,4% 0,5% 3,5% 0,4% 1,3% 2,9% 0% 0,8%
Social media; Content Marketing 0 0 0 1 2 2 2 0 3
%total 0% 0% 0% 0,4% 0,8% 0,8% 0,8% 0% 1,3%
Social media; Other 2 0 0 5 5 2 2 1 6
%total 0,8% 0% 0% 2,1% 2,1% 0,8% 0,8% 0,4% 2,5%
Social media; Online Advertising 2 1 0 9 6 13 12 6 7
%total 0,8% 0,4% 0% 3,8% 2,5% 5,5% 5,1% 2,5% 2,9%
Social media; Online
advertising; SEO (search engine optimization); Other %total SEO (search
engine 0 0 0 0 0 0 0 0 1
optimization)
%total 0% 0% 0% 0% 0% 0% 0% 0% 0,4%
Total count 6 5 4 61 33 50 40 14 25
% total 2% 2% 2% 26% 14% 21% 17% 6% 10%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. Analyzing the results obtained on the use of the different marketing strategies implemented by SMEs in the province of Santa Elena, we observe that 14.9% of microenterprises concentrated in the Canton of La Libertad, use only social networks to disseminate their products and services, while 3.5% use social networks; Email marketing and online advertising. Similarly, 2.1% use social networks and other strategies such as content marketing and affiliate marketing to manage customers, suppliers and advertising.
020010200
0% 0,8% 0% 0% 0,4% 0% 0,8% 0% 0%
On the other hand , of the microenterprises located in the Canton of Santa Elena, 10.9% develop digital marketing based only on social networks; 5.5% use both social networks and online advertising and only 1.3% use more than one digital marketing strategy such as social networks; email marketing, online advertising, content marketing and affiliate marketing. Of the companies located in the Salinas Canton, 2.5% handle social networks, 0.8% use social networks and content marketing and only 0.4% resort to online advertising and SEO (search engine optimization).
In the case of small businesses, 5.1% that are located in the Canton of La Libertad report the implementation of social networks and online advertising, as digital marketing strategies, and 4.7% handle only social networks to manage their economic activities. 2.9% of small businesses in the Santa Elena Canton and 2.5% in the Salinas Canton apply social networks and online advertising as the most used digital tools to find effective buying and selling interactions. There are only 0.4% of small businesses that operate with SEO (search engine positioning). It is evident that 0.08% of themedium-sized companies studied belonging to the Canton of La Libertad, use social networks; online advertising and other tools such as content marketing and affiliates.
0.8% of medium-sized companies concentrated in the Salinas Canton use digital marketing tools such as social networks; online advertising and SEO (search engine positioning), finally 1% of medium-sized companies located in Santa Elena apply only social networks to manage their products. OBJ 2.
Table N°8 What is the main objective of your digital marketing strategies?
Cumulativ Valid e
Percenta percenta percentag Frequency ge ge e
Increase brand visibility
5 2,1% 2,1% 2,1%
Increase brand visibility; Attract
new customers 10 4,2% 4,2% 6,3%
Increase brand visibility; Attract
new customers; Build loyalty to
existing customers; Increase
sales; Improve customer service
74 31,1% 31,1% 37,4%
Increase brand visibility; Build
loyalty to existing customers
1 0,4% 0,4% 37,8%
Efficiency Increase brand visibility;
of Increase sales 5 2,1% 2,1% 39,9%
strategies Increase brand visibility;
Digital Improve customer service
Marketing 3 1,3% 1,3% 41,2%
Attract new customers 22 9,2% 9,2% 50,4%
Attract new customers; Build
loyalty to existing customers;
Increase sales 25 10,5% 10,5% 60,9%
Attract new customers; Increase
sales; Improve customer service
57 23,9% 23,9% 84,9%
Build loyalty to existing
customers; Increase sales 4 1,7% 1,7% 86,6%
Build loyalty to existing customers; Increase sales;
Improve customer service 2,1% 2,1% 88,7%
Increase sales 14 5,9% 5,9% 94,5%
Improve customer service 2 0,8% 0,8% 95,4%
Other 11 4,6% 4,6% 100%
Total 238 100% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. Table N°9 What is the main objective of yourdigital marketing strategies?
Size of the company according to number of employees
of digital marketing
Medium- Microent
sized erprise Small
companies (1-10 Business Total
(51-250 employe (11-50
employees) es) employees)
Increase brand visibility 0 3 2 5
% total 0,0% 1,3% 0,8% 2,1%
Increase brand visibility; 0 6 4 10
Attract new customers %
total 0,0°% 2,5% 1,7% 4,2%
Increase brand visibility;
Attract new customers; Build loyalty to existing 7 41 26 74
customers; Increase sales;
Improve customer service % total 2,9% 17,2% 10,9% 31,1%
Increase brand visibility; 0 1 0 1
Build loyalty to existing customers % total 0,0% 0,4% 0,0% 0,4%
Increase brand visibility; 0 3 2 5
Increase sales %
total 0,0% 1,3% 0,8% 2,1%
Increase brand visibility; 0 2 1 3
Improve customer service % %
total 0,0% 0,8% 0,4% 1,3%
Attract new customers 0 12 10 22
% total 0,0% 5,0% 4,2% 9,2%
Attract new customers; 1 19 5 25
Build loyalty to existing
customers; Increase sales % total 0,4% 8,0% 2,1% 10,5%
Attract new customers; 6 36 15 57
Increase sales; Improve
customer service % total 2,5% 15,1% 6,3% 23,9%
5
Build loyalty to existing 0 1 3 4
customers; Increase sales %
total 0,0% 0,4% 1,3% 1,7%
Build loyalty to existing 0 4 1 5
customers; Increase sales;
Improve customer service % total 0,0% 1,7% 0,4% 2,1%
Increase sales 0 7 7 14
% total 0,0% 2,9% 2,9% 5,9%
Improve customer service 0 2 0 2
% total 0,0% 0,8% 0,0% 0,8%
Other 1 7 3 11
% total 0,4% 2,9% 1,3% 4,6%
15 144 79 238
Total % total 6,3% 60,5% 33,2% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. It can be said that respondents pose more than one main objective to achieve, based on the construction of digital marketing strategies. As far as increasing sales and improving customer service are concerned, they are common objectives shared by each of the SMEs under study. In this context,31.1% report that the main objectives are aimed at increasing the visibility of the brand; attracting new customers, retaining existing customers, increasing sales and improving customer service. To do this, 23.9% focus on three aspects such as attracting new consumers; increasing their sales and improving customer service. 10.5% is based on retaining existing customers, obtaining new customers and increasing their sales. However, 9.2% opt for marketing strategies only to reach new customers with their products and services.
Given the case of the size of the companies, it is identified that the microcompanies, with 1 to 10 employees, are the ones that have the greatest results in the application of marketing strategies, which are reflected with 17.2% in the increase of brand visibility; attracting new customers; loyalty to existing ones, increase sales and improve customer service; while small businesses with 10.95% and medium-sized companies with 2.9% identify with the same objectives. OBJ 3.
Table №10 What performance indicators (KPIs) do you use to measure the success of your
digital marketing strategies?
Valid Cumulative Frequency Percentage percentage percentage
Cost per acquisition (CPA); Return on
investment (ROI); Number of leads 3 1,3% 1,3% 1,3%
generated; Number of sales generated
Number of leads generated 2 0,8% 0,8% 2,1%
Number of followers on social networks 33 13,9% 13,9% 15,97%
Number of followers on social
networks; Number of returning 49 20,6% 20,2% 36,1%
visitors; Number of sales generated
Number of followers on social networks; Other 20 8,4% 8,4% 44,5%
indicators (KPIs)
Number of sales generated 25 10,5% 10,5% 55,0%
Other 48 20,2% 20,6% 75,6%
Return on investment (ROI) 1 0,4% 0,4% 76,1%
Return on investment (ROI); Number of
returning visitors; Number of leads 1 0,4% 0,4% 76,5%
generated; Number of sales generated
Email open rate; Number of returning visitors 1 0,4% 0,4% 76,9%
Click-through rate (CTR) 10 4,2% 4,2% 81,1%
Conversion rate; Number of followers
on social networks; Average time on 4 1,7% 1,7% 82,8%
page
Conversion rate; Number of sales generated 1 0,4% 0,4% 83,2%
Conversion rate; Email open rate 1 0,4% 0,4% 83,6%
Average time on page 3 1,3% 1,3% 84,9%
Average time on page; Number of returning visitors 2 0,8% 0,8% 85,7%
Average time on page; Other 2 0,8% 0,8% 86,6%
Web traffic 4 1,7% 1,7% 88,2%
Web traffic; Number of followers on
social networks; Number of returning 5 2,1% 2,1% 90,3%
visitors; Number of sales generated
Web traffic; Click-through rate (CTR);
Number of followers on social 23 9,7% 9,7% 100,0%
networks; Number of returning
visitors; Number of sales generated
Total 238 100% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. The marketing strategies applied by each of the companies surveyed, are evaluated by the efficiency indicators, where it allows to demonstrate their direct impact (success) in the actions taken and in turn optimization in the performance and effectiveness of marketing strategies. On the other hand, of the total of 238 SMEs respondents, 20.6% measure their performance by the number of followers they have on social networks; the number of recurring visits and by the number of sales generated. In this way, it is possible to infer that the majority of respondents identify with metrics by level of interaction with the digital medium, the most frequent and recurrent when generating a purchase -sale of products and services. 20.2 per cent indicate that they use "other" unspecified performance indicators; while 13.9% show that the most common indicators to evaluate their marketing strategies are defined by the cost of acquisition; return on investment (ROI); by the number of leads generated and number of sales generated. Finally, 9.7% state that web traffic; click-through rate (CTR); the number of followers on social networks; Number of recurring visitors and the number of sales generated are the most used indicators when measuring the efficiency of each of your business strategies.
Table №11 How many new customers have you managed to attract through your digital marketing strategies in the last year?
Valid Cumulative Frequency Percentage percentage percentage 1-10 clients 69 29,0% 29,0% 29,0%
New
customers
101-200 customers 18 7,6% 7,6% 36,6%
11 -50 clients 75 31,5% 31,5% 68,1%
201-500 customers 13 5,5% 5,5% 73,5%
51-100 customers 54 22,7% 22,7% 96,2%
None 9 3,8% 3,8% 100%
Total 238 100% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. The benefits offered by digital marketing to SMEs is the fact of increasing the number of new customers, that is, 31.5% of the people surveyed generate from 11 to 50 new customers, which represents that the implementation of commercial strategies in the digital environment, is an opportunity for recruitment and favorable significance when expanding the commercial market of microenterprises. 29.0% gain between 1 and 10 and 22.7% generate between 51 to 100 new customers during the last year, it is evident that the assertive use of digital marketing attracts new consumers and loyalty to existing ones.
Table №12 What percentage of your total sales do you attribute to your digital marketing
strategies?
Valid Cumulative
Frequency Percentage percentage percentage
Between 10% and 25°% 101 42,4% 42,4% 42,4%
Sales percentages Between 25% and 50% 41 17,2% 17,2% 59,7%
Between 50% and 75% 5 2,1% 2,1% 61,8%
More than 75% 2 0,8% 0,8% 62,6%
Less than 10% 89 37,4% 37,4% 100%
Total 238 100% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. To recognize the success of the implementation of digital marketing strategies in SMEs, the percentage of total sales is identified. Thus, 42.4% indicate that 10% to 25% of their sales generated are thanks to an adequate commercial performance of the business. 37.4% responded that they generate less than 10% of their sales by digital marketing, with regard to this result, it can be recognized that it is a relatively high percentage of SMEs that do not develop significant sales based on commercial strategies. However, it alludes to low planning, improvisation and even lack of knowledge in the handling of digital tools. OBJ 4.
Table №13 What has been the biggest challenge your company has faced when implementing
digital marketing strategies?
Valid Cumulative
Frequency Percentage percentage percentage
Constant changes in algorithms and platforms 28 11,7% 11,7% 11,7%
Market competition 37 15,5% 15,5% 27,3%
Difficulties in generating attractive and relevant content 28 11,7% 11,7% 39,0%
Challenges when Difficulties in measuring return on investment (ROI) 6 2,5% 2,5% 41,6%
implementing digital Lack of knowledge and skills in digital marketing 98 41,1% 41,1% 82,7%
marketing Lack of budget 28 11,7% 11,7% 94,5%
strategies Other 9 3,7°% 3,7% 98,3%
Challenges in customer segmentation and targeting 4 1,6°% 1,6% 100%
Total 238 100% 100%
Source: Survey applied to people responsible for marketing decisions and the implementation of digital marketing strategies in SMEs in the province of Santa Elena. In relation to the most relevant challenges that an SME has faced when implementing digital marketing in its productive activities, it is identified that 41.1% of respondents have presented a lack of knowledge and skills in digital marketing. Of the total respondents, 15.7% answer that competition in the market is a difficult situation that can slow down the use of technologies in the commercial process and 11.7% is due to lack of budget and difficulties to generate attractive and relevant content.
Below is a table that summarizes the results of the focus group with 8 executives responsible for digital marketing in the province of Santa Elena:
Question Result
1. Main objective of digital marketing strategies Increase brand visibility, attract leads, and improve conversion rate to drive sales and business growth
2. Main digital platforms and channels Social networks (Facebook, Instagram, Twitter, LinkedIn), Google Ads, display advertising, content marketing, SEO, email marketing
3. Evolution of digital marketing strategies Adoption of emerging technologies, channel diversification, focus on user experience
4. Percentage of total budget allocated to digital marketing 10-18% (varies by company and industry)
5. Main challenges in implementing effective digital marketing strategies Rapidly evolving digital environment, growing competition, rising advertising costs, difficulty measuring ROI
6. Tools and technologies to measure and analyze performance Google Analytics, Facebook Insights, CRM software, data analysis tools (Tableau, Microsoft Power BI)
7. Influence on growth and profitability Positive impact on growth and profitability, especially in terms of reach and acquisition of new customers
8. Greater successes and failures in the field of digital marketing Successes: Viral campaigns on social networks, improvements in conversion rate, increase in customer acquisition; Failures: Lack of adaptation to new trends and technologies, errors in audience segmentation
9. Stay updated and integrate trends and developments Attendance at conferences, reading blogs and specialized magazines, continuous training of staff
10. Expectations and future plans Continuous investment in digital marketing, exploration of new platforms and emerging technologies, focus on personalization and customer experience
4.CONCLUDED ONES
Based on the results of the study, it is concluded that:
(a) In the province of St. Helena, SMEs employ a variety of marketing strategies. Among microenterprises, the use of social networks is predominant, with variations according to the canton. Small businesses combine social media and online advertising, while medium-sized ones incorporate
content marketing, affiliates, and SEO. There is evidence of greater diversification in marketing strategies in larger companies, although social networks remain the main tool in all cases.
b) Respondents set multiple objectives in their digital marketing strategies, being the increase in sales and improvement of customer service common in the SMEs studied. 31.1% seek to increase brand visibility, attract and retain customers, while 23.9% focus on attracting new consumers and improving customer service. Microenterprises have higher results in the application of marketing strategies (17.2%), followed by small (10.95%) and medium-sized enterprises (2.9%).
c) The SMEs surveyed evaluate the effectiveness of their marketing strategies through key indicators, with 20.6% focused on followers on social networks, recurring visits and sales generated. Digital marketing has allowed these companies to increase their new customer base. With regard to total sales, 42.4% attribute between 10% and 25% to digital business strategies, while 37.4% generate less than 10% of their sales from digital marketing, suggesting opportunities for improvement in planning and knowledge in digital tools.
4. The main challenges faced by SMEs when implementing digital marketing include lack of knowledge and skills in this area (41.1%), competition in the market (15.7%) and lack of budget and difficulties in generating attractive and relevant content (11.7%). These barriers can make it difficult to use technologies and adopt business strategies in the digital realm.
St. Helena's small and medium-sized businesses apply a variety of digital marketing strategies depending on their size, with the aim of increasing sales and enhancing customer service. Even facing obstacles such as lack of knowledge, competition and limited resources, these companies seek to adapt to the digital environment.
REFERENCES
[1] Avello, M., & Vásquez-Parraga, A. (2017). Digital marketing: An exploratory study in Ecuadorian SMEs. Managerial Vision, 16(2), 141-155.
[2] Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.
[3] De Pelsmacker, P. (2018). Marketing communications: A European perspective. Pearson.
[4] Kotler, P., Kartajaya, H., & Setiawan, I. (2016). Marketing 4.0: Moving from traditional to digital. John Wiley & Sons.
[5] Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy, and tools. Springer.
[6] Lovelock, C., & Shankar, V. (2021). Services marketing: People, technology, strategy. World Scientific Publishing Company.
[7] Medina, M. A., & Montes, L. M. (2015). Digital marketing and social networks as growth factors in Colombian SMEs. Strategic Sciences Magazine, 23(33), 31-41.
[8] Melero, I., Sese, F. J., & Verhoef, P. C. (2016). Recasting the customer experience in todays omnichannel environment. Universia Business Review, (50), 18-37.
[9] Moraes, G. H. S. M., & Echeverría, R. (2016). Digital marketing as a management tool in SMEs: A study in Latin America. Journal of Social Sciences (RCS), 22(3), 13-24.
[ 10] Oliveira, B., Cortimiglia, M. N., & Ghezzi, A. (2017). Innovation strategies in Latin American SMEs: Mapping and exploration of heterogeneity in Chile, Argentina, Uruguay, and Brazil. International Journal of Innovation Management, 21(06), 1750045.
[11] Pfeiffer, H. M., & Kumar, V. (2019). Marketing performance measurement: Evolution and future directions. Journal of Business Research, 104, 489-508.
[12] Resnick, S., Cheng, R., Simpson, M., & Lourenco, F. (2016). Marketing in SMEs: A systematic literature review and agenda for future research. International Journal of Management Reviews, 18(4), 379-440.
[13] Rowley, J. (2008). Understanding digital content marketing. Journal of Marketing Management, 24(5-6), 517-540.
[ 14] Ryan, D. (2016). Understanding digital marketing: Marketing strategies for engaging the digital generation. Kogan Page Publishers.
[15] Tiago, M. T. P. M. B., & Veríssimo, J. M. C. (2014). Digital marketing and social media: Why bother?. Business Horizons, 57(6), 703-708.
[16]Valdés, L. (2018). Digital marketing strategies in Latin American SMEs: Challenges and opportunities. Journal of Business Research, 68(3), 123-130
