How to Choose, Test, and Scale Emerging Acquisition Channels to Bootstrap Your Network with High Value Niche Use Cases

How to Choose, Test, and Scale Emerging Acquisition Channels to Bootstrap Your Network with High Value Niche Use Cases

Introduction:
In today's rapidly evolving digital landscape, companies are constantly looking for new and effective ways to reach their target audience. This has led to the rise of emerging acquisition channels, such as new platforms like Clubhouse and TikTok, as well as alpha or beta features within existing platforms like Facebook and Instagram. However, choosing, testing, and scaling these emerging channels can be a daunting task. In this article, we will explore the key factors to consider when evaluating emerging acquisition channels and how to bootstrap your network with a high value niche use case.

1. Evaluating Customer, Channel, and Company Overlap:
   When considering an emerging acquisition channel, it is important to evaluate the overlap between your target customer, the strengths of the channel, and your company's goals. By identifying common points between these three factors, you can determine if the channel is a suitable fit for your business. For example, if you are Spotify and considering investing in Clubhouse, you would evaluate the overlap between the audio-based entertainment platforms and assess the potential role Clubhouse may play in access, discovery, and community-driven audio.

2. Understanding the DNA of the Channel:
   To effectively choose, test, and scale an emerging acquisition channel, it is crucial to understand its key attributes. These include whether the channel is new or an expansion within an existing platform, the level of adjacency to your existing category, the growth stage of the channel, and how it aligns with the channel's monetization model. By gaining insight into these attributes, you can make informed decisions on resource allocation and determine the potential for success.

3. Assessing Your Company's Profile and Resource Allocation Culture:
   Your company's profile and resource allocation culture play a significant role in the success of exploring and scaling emerging acquisition channels. Are you typically a first mover, fast follower, or calculated settler? Understanding your company's approach to innovation will help you determine the level of risk and resources you are willing to invest in an emerging channel. Additionally, evaluating your company's resource allocation culture will shed light on who will be involved in exploring the new channel and if it aligns with your existing team structure.

Actionable Advice:
Before concluding, here are three actionable pieces of advice to consider when choosing, testing, and scaling emerging acquisition channels:

1. Seek High Value Niche Use Cases: Rather than targeting mainstream users initially, focus on identifying high value niche use cases that can bootstrap your network. By catering to a smaller, but highly engaged user base, you can build a strong foundation and gradually expand to a wider audience. For example, Waze started as a platform for users to report speed traps, which attracted a dedicated user base and eventually led to mainstream adoption.

2. Understand the Unique Strengths of the Channel: Each emerging acquisition channel has its own unique strengths and attributes. Take the time to understand these strengths and how they align with your company's goals and target audience. This will enable you to tailor your approach and maximize the potential of the channel. For instance, Snapchat initially gained traction through its "sexting" niche use case, which appealed to a specific demographic.

3. Leverage Existing Insights and Channels: When exploring emerging acquisition channels, leverage insights and strategies from your existing marketing efforts. However, it is important to avoid simply copying and pasting your existing tactics. Instead, adapt and tailor them to the new channel while considering the risk/reward ratio and the potential impact on your existing marketing mix. By taking this approach, you can minimize risks and optimize your growth strategy.

Conclusion:
Choosing, testing, and scaling emerging acquisition channels can be a complex process, but by considering customer-channel-company overlap, understanding the DNA of the channel, and assessing your company's profile and resource allocation culture, you can make informed decisions and effectively leverage these channels to bootstrap your network. Remember to seek high value niche use cases, understand the unique strengths of the channel, and leverage existing insights and channels. By following these actionable advice, you can stay ahead of the curve and drive growth in the ever-changing digital landscape.