B2B manufacturers, boost your DX with digital marketing transformation

Contract manufacturers (CMs) have embraced digital transformation (or DX) to scale production, enhance manufacturing process efficiency, reduce costs, and improve product quality. Digital technologies such as AI, robotics, machine learning, analytics, and big data have revolutionised production lines, supply chains, contract management, quality control, customer interactions, and workforce management. Despite these digital advancements, many manufacturing companies hesitate to apply digital transformation to their marketing strategies. 

Barriers to digital transformation in manufacturing marketing

Marketing is a crucial component of digital transformation in manufacturing, and CMs can leverage it to give their digital transformation initiatives a competitive advantage. But adoption is often slower due to several barriers, including:

Lack of understanding: Companies may not see the potential impact digital marketing can have on their manufacturing business.

Unclear governance: The absence of a clear governance and ownership structure can hinder digital marketing initiatives.

Cultural resistance: A non-digital or non-agile culture can impede the adoption of new digital tools.

Limited marketing experience: Many CMs traditionally rely on direct sales and have limited experience in digital marketing. Historically, manufacturing depended heavily on a direct sales force to generate business.

The impact of digital marketing on manufacturing 

In the digital age, digital marketing can significantly impact manufacturing by increasing brand visibility, generating leads, and improving customer engagement. According to a 2022 survey by Industrial Sage:

• 84% of industrial CMs have increased their digital marketing budget.

• 98% have generated sales-qualified leads through digital marketing.

• 89% of B2B marketers found webinars to be the best strategy for generating high-quality leads.

• 70% utilised virtual events, webinars, and online courses for marketing.

• 71% of CM content marketers prioritised lead generation as a critical goal.

The data indicates that CMs increasingly use digital technology to scale their marketing efforts—not unlike using digital technology to scale their manufacturing capabilities. Just as CMs leverage digital transformation for smart manufacturing, they can also use it for smart marketing.

How to gain a competitive edge through digital marketing in manufacturing

CMs can gain a competitive edge in the manufacturing industry by concentrating on critical elements of digital marketing. Companies can refine their digital marketing strategies and achieve their goals by focusing on the five crucial aspects of digital marketing:

• Brand awareness 
• Lead generation 
• Data-driven insights 
• Conversion rates  
• Customer loyalty

1. Brand awareness

Digital marketing helps CMs increase brand awareness and reach a wider audience that is ready to convert. By creating and sharing valuable content, CMs gain the trust of potential customers and remain top-of-mind. With over 5.44 billion active internet users globally, content marketing can help CMs connect with potential manufacturers who are serious about outsourcing and have the budgets to spend on the products CMs can provide.

2. Lead generation

Healthy brands generate healthy leads. Digital marketing enables CMs to create targeted marketing campaigns across digital channels that address customer needs and preferences, enhancing lead generation. Tools like online video demonstrations and live Q&A sessions can showcase capabilities and expand customer bases. By understanding your target audience's needs and pain points, you can create content that’s valuable to them and drives engagement.

JJS Manufacturing, an industrial electronic manufacturing specialist in the UK, embraced digital transformation by implementing an inbound marketing strategy to deliver a mix of brand, content, and creativity to meet its business goals. A new website built on HubSpot delivered a 10x increase in website traffic, an 18x increase in leads from year one, and a 2x revenue increase over three years. 

3. Data-driven insights

All the customer data in the world is useless unless you know what to do with it. Analytics, big data and digital technologies can help you make informed decisions about your marketing strategies. You can optimise your marketing efforts and improve ROI by tracking website traffic, engagement rates, and other metrics. 

4. Conversion rates

Digital transformation helps manufacturers improve their conversion rates and ROI by refining their customer's online experience, making it even easier for them to choose your company. Personalising content relevant to your audience can increase customer engagement and drive conversions.

5. Customer loyalty

You can build customer loyalty by fostering good relationships with customers. Brands that make customers feel connected and provide exceptional customer experiences have stronger brand loyalty than those that don't.

Social media, like LinkedIn, is ideal for cultivating long-term relationships with manufacturing clients. By engaging in meaningful conversations with them, CMs can create a sense of brand connection and showcase their brand's distinct character.

The future is now: predictions and trends for digital marketing transformation in CMs

While current digital marketing trends can greatly transform manufacturing marketing efforts, a few trends are gaining traction that we predict will be worth tapping into sooner rather than later.

1. AI and automation

Just like in smart factory environments with optimised manufacturing processes and supply chains, artificial intelligence and marketing automation can significantly impact digital marketing, too. We expect to see even more innovative and sophisticated uses as these digital transformation technologies become more intelligent, advanced, and widely adopted. For example, as they evolve, they'll measure customer behaviour, such as consumers' attention to ads, and improve campaign performance and efficiency based on attention metrics. 

2. Contextual advertising and direct data collection

With increasing concerns about data privacy and the impending demise of third-party cookies, marketers will likely shift from targeted to contextual advertising.

Contextual advertising uses the context of the web page or app where the ad is displayed to determine its relevance to the viewer. Instead of relying on cookies to serve ads based on a user's browsing history and demographics, contextual advertising can reach the right manufacturing audience without needing personal data. By displaying ads relevant to the web page or app context, CMs can increase the chances of their ads being seen by manufacturers interested in their services.

3. The use of influencers and content to build connections

It’s not only B2C brands that rely on influencers to build connections and brand awareness. Moving forward, we can expect to see more CM brands looking to establish long-term partnerships with influencers and create content that aligns with their business objectives, values, and audience.

While influencer marketing may seem unorthodox in contract manufacturing, it can move the needle surprisingly faster than in other sectors.

4. The shift toward integrated marketing strategies

Instead of approaching digital transformation as a series of separate tactics and channels, marketing teams should look at all their efforts holistically. Integrated digital marketing strategies consider all the touch points customers have with a brand leading up to and beyond a sale.

By adopting integrated digital strategies, CMs can differentiate their brands from the competition and build authentic, more loyal customer relationships. This approach also reduces costs while demonstrating to customers that they are connected and engaged with the larger community. Overall, the shift toward integrated marketing strategies presents a significant opportunity for CMs to engage and convert customers in new and innovative ways.

Conclusion

Digital transformation has revolutionised manufacturing, offering greater customisation, sustainability, regionalised supply chains, and risk transfer, adding significant value to employees, clients, and customers. However, the sector often resists similar transformation efforts when it comes to marketing. 

Despite this resistance, digital marketing has tremendous growth potential for CMs. By focusing on key aspects like brand awareness, lead generation, data-driven insights, conversion rates, and customer loyalty, CMs can optimise their digital marketing strategies, achieve their growth goals, and stand out from the competition.

Embracing digital technologies beyond the factory floor, such as AI, data collection, contextual advertising, influencer marketing, and integrated marketing strategies, will help CMs reap the full rewards of digital transformation as they embark on the next leg of their digital transformation journey. 

Ask Equinet how you can digitally transform your contract manufacturing company's marketing today.