Or, can it do better?
Allocating marketing money by channel is often like planning a trip to an amusement park. You have to decide which ride or activity will provide the best time, so you can get the most from your day at play.
(If you don’t remember what it is like, do some homework. Go to an amusement park or select another activity with lots of choices for fun. Hard work and no play is not a way to spend your days!)
Some people choose a few rides and ride them over and over. Others try to ride as many different ones as possible. Both techniques are okay because it is all about having fun.
Many marketing teams do their resource allocation the same way. Some choose the channels they are most comfortable with and promote unmercifully. Others spread the resources across all channels. Neither approach works well because they do not include a strategy for receiving the maximum return.
It is impossible to market via a channel you don’t understand.
It is hard work to learn about new technology and media in a world moving at the speed of light. The simple solution is to stay in your comfort zone and try to get every possible penny out of your customers in those channels.
Following this path works if limited growth is acceptable. The companies that grow exponentially break out of their comfort zone. In some cases, they cut new paths creating markets along the way.
This doesn’t mean that they grab at every opportunity they see. Spreading resources thinly across multiple channels is a recipe for bankruptcy. Effective multichannel marketing provides messages and access via the channels your customers use.
In some cases, this means that resources are heavily allocated to direct mail marketing with some email and search. Other times, the emphasis is on email and search with some mobile.
The best strategy for your company is the one that your customers prefer.
The way to find it is to follow the rule that has worked for decades, regardless of channel or technology. Test, test, and test!
Every time you test, you learn more about your customers. Every thing you learn helps you make better decisions. There isn’t a downside to testing as long as you have a plan. What are you waiting on? Create a plan to expand your company and start testing!
