Low-Cost Pricing: Does It Work For Every Industry?

In the financial year 2024, Zara India reported a revenue of Rs. 2769 crore, with an average order value (AOV) exceeding Rs. 4,500. On the other hand, it’s one of the competitors, Westside, which caters to the mid-range market, generated a revenue of Rs. 4950 crore with AOV ranging between Rs. 1,500 to Rs. 2000.

Meanwhile, Zudio, the value fashion brand from the Tata Group, generated Rs. 7000 crore in revenue with an AOV between Rs. 500 to Rs. 1 K. So, due to affordability, Zudio stayed ahead in the competition and made a high profit.

In the above pattern, it appears a lower pricing per customer leads to an increase in overall revenue. But is this true for every industry? Let’s see another example.

Now, another industry that gained success in a similar way is the telecom business in India. For example, when Jio entered the telecommunications sector, it offered lower data and call rates than its competitors like Airtel and Vodafone. By tapping into the low-income segment, Jio slowly expanded its user base, thereby becoming one of the largest telecom operators in the country with massive revenue.

Digital Marketing Approach: Does It Work The Same Way?

In recent years, the digital marketing industry has seen a significant boom. Almost all of the businesses are going online, irrespective of their type and size. This has led to the emergence of a countless number of agencies offering services like SEO, PPC, content creation and social media marketing.

Now, when it comes to the cost of these agencies, the pricing varies to a great extent. Some digital marketing agencies have packages for Rs. 500, while others might charge Rs. 5000 or Rs. lakhs and beyond. So, this raises an important question – “What should be the actual price range that you should be expected to pay to get deliverables?”

A digital marketing agency in Kolkata provides the answer.

How Much Should You Pay To Get Effective Digital Marketing Services?

Some people believe that digital marketing does not always need to come with a heavy price tag. For example, if your business needs basic services like posting pre-made content and graphics on social media or running small-budget ads, many agencies might charge a few thousand rupees per month.

On the other hand, others think that true digital marketing requires strategy and expertise. If you are aiming for strategic and long-term growth for your business with website development, SEO, high-ROI Google Ads or original content creation that will target your audience, you can even expect to pay more than Rs.50,000 or 1 lakh.

Hence, there is no exact answer to this question. The ideal pricing range for quality digital marketing deliverables depends on the business goals, objectives and the expertise required. It is always worth investing in a digital marketing agency in Kolkata that has creativity, data and results to bring to the table.

Does Low Per Head Also Ensure Greater Revenue In The Digital Marketing Sector?

According to the opinion of an expert at BUSFAM, a reputed digital marketing agency, low per-head pricing does not necessarily boost high revenue. It might work for e-commerce or consumer goods; however, the statement does not hold true for all industries in the digital marketing space.

Let’s understand why.

The success related to low per-head pricing firstly depends on the industry type. For example, fashion or FMCG products can benefit from low unit costs because they are targeted at a larger audience. In these cases, low-cost ads can yield successful conversions.

However, industries like real estate or the B2B niche depend on precision targeting, where investments at the initial stage are necessary.

Another factor is the scope of marketing. Take, for example, a bakery business where a small investment in Facebook or Instagram ads might increase visibility because customers often buy goods that are tasty or trendy.

What Are The Factors To Look For In A Digital Marketing Agency, In Addition To Price?

When choosing a digital marketing agency, price is just one factor to look for. It is to be noted that a higher price does not always guarantee results. There are other considerations you should take note of.

• Track record of success: Look into the portfolio of past works, especially those related to your industry. Also, check the client reviews and testimonials to get an idea of their reliability.
• Creative capabilities: Understand whether the agency is able to create high-quality content, copy and visuals that resonate with the audience. Take a look at their landing pages, websites and social media posts.
• Transparency: Most of the digital marketing agencies in Kolkata maintain clear communication. They will provide regular feedback and reports on the performance.
• Use of tools and technology: Check if the team has knowledge about the latest tools and technology for campaign management, as this will ensure efficiency and effectiveness.

Conclusion

It is true that low pricing might generate high revenue in certain industries, but it is not in the digital marketing world. Here, value lies in expertise and measurable outcomes, not just in the price you pay.

Hence, before choosing an agency, do proper research and work with the one that aligns with your goals. If you are looking for a reputed digital marketing agency in Kolkata offering affordable services, get in touch with BUSFAM. They have a team of experts to develop data-driven strategies for the success of your brand.