Enhancing Marketing Effectiveness Through Diversification
Whereas inflation is the thorn to financial investors, not having consistent sales is the thorn to businesses. Diversification was originally founded in economic theory. In this article, we use it to explain how to help keep away thorn of scarcity.
Investors know not to put all of their eggs into one basket. It has been proven many times over that a diversified portfolio is a better performing (and safer) portfolio. This principle has been taken to its logical extreme in index funds that adhere to the principle by purchasing the widest possible portfolio of stocks or bonds. Diversified index funds consistently beat out the best performing money managers- largely because of confirmation bias and other distorting psychological tendencies.
This means, that over time, mutual funds perform better than individual stock purchases, whereas index funds perform better than mutual funds.
We simply don’t know enough to outsmart diversification.
By applying diversification to marketing you are covering all of your bases- rather than depending on a few. You are ensuring that everything is well-tended; you’ll be in many digital spaces, communicating your value proposition clearly to potential customers in ways in which they can relate.
There is no better way to apply the principles of diversification to your marketing investment than to have a marketing consultant serve as the steward of your marketing dollars and the strategizer of your campaign.
It is important to take the decision making out of your own hands. You want to place the order, but not be responsible for understanding the role of each ingredient.
Examples of Marketing Diversification
- Google uses over 200 ranking factors to determine search engine placement- you can’t just do one thing to gain a top position- you need to do a huge range of efforts from website performance optimization, technical SEO, on-site SEO, and off-site SEO, just to name the general categories.
- Optimized local business listings, including Google My Business, Houzz, Yelp, and TripAdvisor, provide valuable links and exposure.
- Reviews on local business listings are aggregated across multiple platforms. For example, your Google My Business listing might show your reviews from Houzz, Facebook, or Yelp.
- Digital PR gets your business mentioned in articles and blogs- providing you with fresh streams of traffic and backlinks to your site.
- Social media promotion and social networking not only drives traffic to your site, it is a great way to keep your business at the front of the minds of your existing clientele and your professional network.
Sites need multiple streams of traffic to reduce risks, as no individual channel is reliable. A well-diversified marketing campaign will ensure that you communicate brand messages via a wide range of content types and platforms.
Finding Your Marketing Provider
Make sure that you have seasoned marketing professionals that know your industry inside and out to implement industry-specific best practices from day one.
This means if you are a dentist, for example, we can’t serve you as well as a marketing agency that exclusively focuses on the needs of dentists. We just don’t know their directories, type of copy and images that work for their industry, terminology, sales objections, and keywords.
Whereas, if you are in the home design industry- such as an interior designer, architect, landscape architect, general contractor, home decor showroom, supplier, manufacturer, or design industry SaaS (software company)- we are already tooled to provide you with incredible diversification. We work on marketing for your industry all day- which amounts to about 25k hours per year of design marketing work by our team.
Ready to talk? Schedule a call here.
Invest In A Package
Fully diversified marketing campaigns are typically out of the reach of most small businesses as they are too labor intensive and costly to implement. From concept to completion, a well-diversified marketing campaign can cost $20k or more per month.
Therefore, smart marketing providers are focused on one industry and have designed and developed marketing systems, or packages, for those industries that leverage economies of scale. More of your marketing budget can go to implementation as opposed to strategizing and management. It’s like buying a car versus commissioning someone to create one for you.
The end result is a better, safer, more diversified marketing investment that keeps you from the risk of putting all of your eggs into one basket. You get marketing promotion in one pre-configured and always evolving package- personalized to fit your brand’s unique situation and needs. Then you can customize (and further diversify) your package by opting for add-on services such as search ads and content creation.
A hidden advantage of investing in a marketing package is consistency. From years of experience, we can tell you that a la carte clients achieve much less marketing progress in a year than clients with packages. You don’t want to be in the position of only investing in your marketing when your thoughts turn to it. And, you don’t want to be deciding on each individual task to implement. Make the choice once and let it be automated and diversified.
Explore how our packages can support your home improvement company on our local marketing packages page for interior designers, architects, builders, and one location showrooms.
Explore our national marketing packages for SaaS, manufacturers, building material companies, and brands with multiple showrooms.
Ready to take the next step? Schedule a call with Ken Lewis– our Managing Partner and Chief Strategist.