Finding the Best Marketing Channel for Your Business
In our last article, we explained 11 marketing channels you can use to promote your business. But here is the real deal: Finding the most efficient channel. Everybody wants to find the perfect marketing channel for their business because every business has scarce resources at the beginning and it is not efficient to use 11 channels at once. This article, with the help of Traction, will help you to find the right channel for your business.
Outer Ring Test:
The first step of this uncomplicated strategy is to writing down 11 channels we explained in the last article and finding one strategy for every channel. For example, for Search Engine Marketing you can write Adwords or banner ads. After finding 11 strategies for 11 channels, you have to brainstorm with your team to choose 2 channels to focus on. At this stage, you can look at your competitor's ads and marketing channels to come up with ideas. But remember that you have to be creative. If your competitor already uses a channel, it is not the best idea to place an ad there at the beginning of your marketing. Most of the time, channels that seem to be ridiculous are the ones that are truly niche and got the best click-through rates. Always remember to get specific for your industry and your company.
Middle Ring Tests:
Your ultimate goal is to find the most efficient channel and middle ring tests are the first step. What Middle Ring Tests suggest is to choose two channels from 11 channels and answer some questions with continuous testing. Some questions that might be useful to test:
- How much does it cost to acquire each customer through this channel?
- How many customers are available through this channel?
- Are the customers/visitors you are getting from this channel your target audience?
- How much does a click from this channel cost?
Testing every single channel is ineffective and also time-consuming. It will be your full-time job if you try to test every channel. Instead of that run two different ads on two channels you chose. After a month compare those two ads on the first channel with each other. Choose the most efficient one and compare it with the most efficient ad of the other channel. And you have the most efficient channel and the most efficient ad!
How to differentiate ads?
In the last paragraph, you will see that we suggested two ads on one single channel. Now, how can we run two ads on one channel and compare them? For example, if you chose Google as your marketing channel, you can use banner ads and Adwords. Then compare them with each other to find the most efficient one to use.
Inner Ring Tests:
Inner Ring Tests are designed to make testing a habit. What these tests offer you are to optimize your chosen channel and to uncover better channel strategies within this channel. With continuous testing in your chosen channel, you will the most efficient ad strategy in that channel. In terms of optimization, every channel has a set of things you can change and test. For example, for targeting blogs, you can change the placement of your ad, call to action, or the type of blog you target. If you target an article a week you can target an interview next week, or if you placed your ad at the end you can change it to a pop-up. Andrew Chen, a startup adviser on growth, explained the Law of Shitty Click-Throughs: Over time, all marketing strategies result in shitty click-through rates'. What he means by that is you must find other channels to use after a while because the channel you chose will eventually stop converting more customers. For example, when banner ads were first debuted, they were receiving click-through rates of over 75 percent. However, today we see a banner ad on every website and they no longer convert as they were in the past. So you will have to find another channel to use after you target a channel for a while. If you test other channels every 2 months, for example, you will always be one step ahead of your competitors.
You found the most efficient channel to grow your business and you continuously test other strategies to use on your chosen channel. At this stage, what you must remember and what most founders ignore is you have to split your time between traction and product development. Remember: Without an audience to sell, only you will use your amazing product. Spend half of your time on your Inner Ring Tests and a/b tests, and the other half on your product.
If you want to read the book that inspired this article you can visit Traction.
There are a lot of marketing channels you can use to grow your business and a lot of complicated strategies to find the best one. In this article, however, we explained an uncomplicated way to find the best channel and also ways to optimize your click-through rate for a period of time.