Why is this a problem?
Online platforms have changed and it's now very hard for a small businesses to get ROI on marketing through Google or Facebook due to high competition
While online tracking of conversions and therefore the effectiveness of any marketing campaign is easy, this is much harder with offline businesses as there is no way to effectively track the origin or value of any particular customer
Businesses spend thousands or even tens of thousands on marketing campaigns with no real way of knowing how effective they are
Because of the lack of conversion tracking, it's impossible to adequately maximise the value of the marketing budget.
Also, it's currently impossible to reward partners effectively, based on the value that they bring to the business. This hinders many cross promotions between complementary businesses.
Influencers deliver 11x higher ROI than other forms of digital marketing, however influencers are now more established and demand higher fees than before
Vamos restaurant runs a paid promotional campaign on Facebook.
In order to measure the effectiveness of the campaign, they create a unique code that will give the people who redeem it $25 in VAMOS Tokens.
As part of the campaign copy, they tell people that if they download the wallet and input the code, they will receive $25 on their first visit to Vamos.
Once the campaign is running, they can now not only track clicks and engagement within Facebook itself, but they can track the number of times the code is redeemed in the app, and the number of new customers that are generated by the campaign
Not only that, but they can start to track the amount spent by each of those customers, and the lifetime value.
They can then also run a campaign such as the one above, and track the number of referrals provided by those new customers, giving them a much better overview of the value to the business of that campaign than would otherwise be possible.