If the answer to the question above is yes, then you might need start looking at getting a few more baskets!
An over reliance on one marketing channel, although very common amongst brands, is something that can really hold you back when wanting to scale online.
In this Ask Aaron video, I’ll be talking through the following points, to show how important it is to spread your marketing mix as evenly as possible:
👉 Do you know how reliant your brand is on each marketing channel?
👉 What proportion of your sales are coming from paid advertising?
👉 What proportion are coming from your SEO? From referrer?
👉 How many are coming direct?
👉 Do you know your new vs returning customer percentages?
👉 Using GA to find this information
👉 Reflect on the past 2-3 years
👉 Understanding reliance
Understanding your brand’s reliance on marketing channels
It’s essential to assess how reliant your brand is on each of your marketing channels. Break down your sales and visibility proportions across various channels, such as paid advertising, SEO, referrals, and direct traffic. By having a clear picture of your current marketing mix, you can identify areas of over-reliance and plan for a more diverse approach.
Over-reliance on a single marketing channel is akin to placing all your eggs in one basket. Just as you wouldn’t want a single customer to contribute to more than a fraction of your revenue, your marketing strategy should never hinge on a single channel. Aim to create a robust and resilient marketing mix by spreading your efforts across multiple baskets.
Analysing data for marketing channel insights
Utilise tools like Google Analytics 4 to gain insights into your marketing performance. Break down your data by channel, compare year-on-year trends, and track changes in revenue and traffic sources. This analysis will help you identify shifts in reliance and better understand the effectiveness of your marketing efforts.
How to strategically invest in your marketing channels
Evaluate your return on investment (ROI) for different marketing channels, and calculate ROI, cost-per-acquisition (CPA), and other relevant metrics in order to accurately assess the performance of each channel. This data-driven approach will help guide your decision-making process, and help you allocate resources more effectively.
How important is a long term strategy?
Recognise the value of long-term strategies like search engine optimisation (SEO). These efforts may take time to yield significant results, but can have a compounding effect over the years. Aim to balance short-term gains with larger investments into more sustainable marketing channels, as this will better contribute to long-term growth.
In essence, a diversified marketing strategy is essential for sustainable growth, especially with the business landscape evolving as rapidly as it is today. By continuously fine-tuning your strategy based on data-driven insights and emerging trends, you can create a well-balanced marketing mix.
- Different channels cater to various audience segments, and a diverse approach enables you to connect with a wider range of potential customers.
- By diversifying your marketing efforts, you avoid tunnel vision, and broaden your brand’s reach.
- A diversified marketing mix allows brands to adapt to changes in the marketing landscape more effectively, reacting to changes in the market so you can mitigate potential losses.
Embrace diversity, adapt to changes, and keep your marketing eggs in multiple baskets to thrive in today’s competitive marketplace.
👋 I’m Aaron, connect with me on LinkedIn.
I’m the Founder & MD of Evergreen, a digital marketing agency that specialises in growing ecommerce & retail brands.
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