How To Choose, Test, and Scale Emerging Acquisition Channels — Reforge

How To Choose, Test, and Scale Emerging Acquisition Channels — Reforge

In the ever-evolving landscape of digital marketing, it's crucial for businesses to stay ahead of the curve and explore emerging acquisition channels. These channels can offer unique opportunities for growth, but they also come with their own set of challenges. In this article, we will discuss how to choose, test, and scale emerging acquisition channels effectively.

When considering whether to invest time and resources into an emerging marketing channel, there are a few factors to consider. First, is the platform experiencing fast growth? Platforms like Clubhouse, TikTok, and Poparazzi have gained significant traction in recent years, making them attractive options for businesses looking to reach new audiences.

Another consideration is whether the emerging channel is an alpha or beta feature within an existing platform. This was the case when Facebook introduced mobile advertising in 2012 and Instagram launched Stories in 2017. Being an early adopter of these features allowed companies like HotelTonight to gain a competitive advantage and access exclusive ad inventory before their competitors.

It's also worth exploring mature platforms that are under-utilized by the industry. For example, WordPress, despite being built in 2003, was not being leveraged as an acquisition channel by the CRM industry. By doubling down on WordPress, companies like HubSpot were able to connect their organic traffic to WordPress plugins or themes, resulting in higher conversions and paying customers.

When evaluating an emerging acquisition channel, it's important to assess the overlap between the customer problem, channel strengths, and company goals. Look for alignment in all three areas to ensure that the channel is a good fit for your business. For example, if you're a music streaming platform like Spotify, it makes sense to explore Clubhouse as an emerging channel due to the overlap in both being audio-based entertainment platforms.

Consider the DNA of the channel to gain a deeper understanding of its potential. Is it an entirely new channel or an expansion within an existing platform? This distinction is crucial as it affects the resources and testing required. If you already have authority in an existing platform, testing an expansion within that platform will likely be easier. However, if it's an entirely new channel, it may require more resources and a different testing approach.

Channel adjacency is another important factor to consider. If you've already dabbled in a similar category, you can leverage insights and learnings from that experience. For example, if you've invested in paid social brand ads, exploring adjacent channels like TV brand ads could be a strategic move.

Understanding the growth stage of the channel is also crucial. Look for signs of traction, such as a diverse and engaged community, multiple use cases, and follow-on funding. This indicates that the channel has a solid foundation and potential for marketing purposes.

Consider how you can help the channel monetize and align with their monetization model. By enabling the platform to generate revenue, you increase your chances of forming a deeper partnership and gaining access to more resources in the future. For example, if you're considering Clubhouse as a channel, think about how you can enable creators on the platform or bring your own creators to the platform.

When it comes to your company's approach to emerging channels, determine whether you're a first mover, fast follower, or calculated settler. Each approach has its own benefits and drawbacks. First movers have the advantage of being ahead of the curve but face the challenge of limited data and automation. Fast followers can learn from first movers' successes and failures but have less control. Calculated settlers have a clear roadmap but may miss out on the early advantages of being a first mover.

Evaluate your company's resource allocation culture for exploration. Consider who will be involved in exploring the new channel and their level of commitment. Depending on your team's size, resources, and competitive environment, you may choose to prioritize or deprioritize investment in a new channel.

Assess whether your growth team and existing channel mix can support exploration in a productive way. Consider the number of channels currently driving growth and whether you have a solid foundation for optimization and scaling. If you're still optimizing a single channel, it may be wise to focus on existing scalable channels before venturing into new ones.

In conclusion, choosing, testing, and scaling emerging acquisition channels requires careful consideration and alignment between customer needs, channel strengths, and company goals. By evaluating factors such as channel DNA, growth stage, channel monetization, and your company's approach to exploration, you can make informed decisions and position your business for success in the ever-changing digital landscape.

Actionable advice:

1. Evaluate the overlap between your customer problem, channel strengths, and company goals to ensure alignment before investing in an emerging acquisition channel.
2. Consider the DNA of the channel, whether it's an entirely new channel or an expansion within an existing platform, to determine the level of resources and testing required.
3. Assess your company's resource allocation culture and growth foundation to determine the feasibility and readiness for exploring a new channel.

By following these actionable advice, you can navigate the complexities of emerging acquisition channels and make informed decisions that drive growth for your business.