Choosing the right marketing channels is crucial for ROI. There are more ways to reach buyers than ever before. But trying to master every channel is a strategy that’s doomed to fail.
Marketers waste over $80 billion each year. To maximize ROI, you need to focus on the right channels for your business. The channels that generate high-quality traffic, leads, and sales.
In this post, we will cover the steps you can take to select your ideal marketing channels. We’ll also take a look at three successful companies and the channels they use.
Your Goals and Objectives Matter
The first step is to define your goals and objectives. According to a survey by CoSchedule, marketers that set goals are 376% more likely to report success than those that don’t.
Think about what successful marketing results look like for your business. What do you want to achieve?
Your marketing goals will be unique to your business and can include:
- Brand awareness
- Lead generation
- Customer retention
Clear goals are an important factor in deciding on marketing channels. Some channels are more effective for certain objectives than others. For example, PPC and social can be great for increasing brand awareness, while a customer retention objective is better suited to email marketing.
When you have clear objectives, you can start to measure your existing channels and prioritize new channels that will help you achieve your goals.
Budget and Time limitations
Marketing budgets as a percentage of revenue have increased to 11.4%, but marketers are under more pressure to deliver tangible results. Over 60% of marketers face pressure to prove ROI.
You want to spend your time and budget on the channels that will generate the best results. That means setting a realistic time frame and a responsible budget. Rather than restricting your strategy, these factors help you focus on the ideal channels.
It takes around three months of testing to get accurate performance data and determine the success of a new marketing channel. If you have a pressing time constraint, spending big on a more expensive channel can be risky. If you have more time, you can test, optimize, and make incremental improvements to higher-risk marketing strategies.
You can increase the efficiency of your marketing campaigns and get better ROI by partnering with an agency experienced in your niche. It can be a frustrating and costly endeavor to achieve sustainable growth without the help of experts.
Which Marketing Channel Works Best For Your Business
One of the best ways to work out which marketing channels are right for your business is to look at the trends in your industry. Which channels are your competitors using?
You can use SEMrush, SimilarWeb, or Alexa to gain insight into your competitors’ marketing strategies. If a competitor is achieving rapid growth, you should investigate which channels they are using. These insights can inform your strategy.
Competitive analysis can also help you to identify channels that have been overlooked. For example, if your competitors neglect paid search, that doesn’t necessarily mean that it’s not worth your time. You might be able to capitalize on the low competition and cheaper cost-per-click.
Analyzing your top competitors can help you to determine the channels that deliver the best results and ROI. Here’s a breakdown of three successful companies and the channels they use:
IT and Software – Workday
Workday is an enterprise platform that has revenue growth of 26% per annum over the last five years. Businesses in this segment use a range of strategies to reach decision-makers, focusing on digital rather than traditional marketing channels.
You can see in the traffic breakdown that search, social, and email all contribute to the marketing strategy.
Over 90% of Worday’s search traffic is organic. SEO and content marketing are important for attracting targeted organic traffic and demonstrating thought leadership. IT and software companies need to show that they understand their target audience’s challenges and position their product or service as a solution.
LinkedIn is the number one social media channel for Workday and most B2B companies. Over 63 million decision-makers use the platform.
According to Brent Adamson, the average B2B purchasing decision involves 6.8 people. IT and software companies can use LinkedIn to generate leads and target those people involved in purchasing decisions.
Consumer Goods – HelloFresh
HelloFresh is a direct-to-consumer company that sells subscription meal boxes. They’ve achieved huge growth in recent years. Worldwide revenues doubled in 2020, with the global pandemic accelerating trends in consumer behavior and the growth of subscription boxes.
Businesses that sell directly to consumers typically invest heavily in brand advertising, video ads, display ads, retargeting, social media, and paid search. You can see in the traffic breakdown that HelloFresh has a diverse range of marketing channels. Display advertising drives nearly 3% of traffic.
Over 20% of HelloFresh’s search traffic is from paid advertising. Paid search can be an effective channel for increasing online visibility and building brand awareness. Pay-per-click also enables you to be present in the search results when consumers are actively looking to make a purchase.
HelloFresh has a presence across multiple social media platforms. The product has a strong visual appeal. Bright packaging, colorful ingredients, and mouth-watering finished meals all look great in video and social media ads.
The company also has a large affiliate program that has helped it increase its reach on social media, drive referral traffic, and generate sales.
Financial Services – Square
Square offers a range of payment processing and financial services in a competitive market. The company increased its revenue by 33% in 2020. Companies that provide financial services rely on trust and reputation. You need your customers to trust you with their hard-earned dollars.
You can see in the traffic breakdown that email and referrals are strong drivers of traffic for Square. One of the most effective ways to establish trust is through educational content and email marketing. You can nurture leads and build buyer confidence through email marketing campaigns.
Customer acquisition costs are high in financial services, and email marketing is one of the most cost-effective marketing channels. According to Litmus, companies generate $42 in revenue for every $1 they spend on email marketing.
Over 90% of Square’s search traffic is organic. Financial services companies attract leads and engage their existing customers through content marketing. Customer retention is crucial for industries with high acquisition costs like financial services.
While Square doesn’t drive huge traffic from social media, it can be an effective strategy for some financial service providers.
The precise targeting capabilities of social media ad platforms can help you to get your products and services in front of the right people at the right time. For example, NatWest used Facebook Ads to generate 820 additional mortgage agreements over two months in 2019.
Here’s what Jens Reich, SVP Marketing at HelloFresh US, had to say about marketing channels:
“When we look at marketing and marketing channels, it can be very tempting to implement the fanciest attribution model and try out the fanciest advertising campaign, but sometimes it’s also about understanding the basics of the channel and just optimizing the hell out of it.”
There’s no one-size-fits-all approach when it comes to marketing channels. What works for one company might not be as effective for your business. You should take a data-driven approach. Focus on your customers and your competitors. Keep testing and learning to develop a multi-channel strategy that delivers tangible business results and high ROI.
If you need to level up your marketing strategy but are unsure which channels you should be prioritizing, schedule a consultation with marketing fanatics at Ogno today.