Why Marketing Channel Diversification is Critical to D2C Sales Success

Why Marketing Channel Diversification is Critical to D2C Sales Success

Why is it important for D2C brands to diversify their marketing channels?

Well, eBags’ Erin Gregory says, “a cardinal rule of marketing is that things stop working.”

No CMO wants to be responsible for explaining that sales or conversions have dropped by double digits because of something seemingly outside of the company’s control: a partner’s algorithm change, a drop in users on an outside platform, or even the complete shuttering of an app. But those changes happen every day. That’s why marketing channel diversification is critical to the success of every D2C company.

LiveIntent gathered a handful of our fastest-growing direct-to-consumer customers to ask them to share their best marketing diversification practices. Here’s what they said.

 

Don’t assume tomorrow will look like today.

“Facebook has been a huge channel for us, but we like to operate as if it’s going to disappear tomorrow,” says vuori Customer Acquisition Manager, Bret Fredrickson. “That means taking advantage of it while it’s here, but also looking at new channels and investing where we think attention will go to.”

Fredrickson’s team employs a split that could benefit many companies. “We fall back to the 80/20 Rule,” he says, allocating 80% of marketing acquisition spend to the best channels, and 20% to the test channels. This helps ensure that, even if one of the best channels disappears with little notice, you’ve got some tested back-up plans to help fill the gap.

 

Don’t be afraid to embrace new channels.

eBags has been around for more than two decades, so it’s seen a lot of change in the way customers find the site. Part of why the retailer has continued to thrive among increased competition is because its leaders have been open to trying new methods to attract customers. So if you’re an established B2C brand, challenge yourself to diversify your marketing by adding one new channel to your mix this quarter.

 

Don’t move too soon just to move.

As we’ve established, diversification is critically important. But Public Rec founder and CEO, Zach Goldstein, warns that brands – especially young brands – shouldn’t diversify simply for diversification’s sake.

“Dial in a channel and make sure you’re comfortable with it and get it firing before moving onto next one,” he says. If you’re confident a small number of channels are going to provide the majority of your leads and conversions, Goldstein says you shouldn’t be afraid to double down. He advises newer companies and D2C brands to “optimize those first” before worrying too much about growing into and testing new marketing channel partnerships.

Looking for more valuable insights for tackling the challenges of scaling a D2C business, including three decisions our panel members say they would change if given the opportunity? Watch the complete webinar. It’s free and available on-demand here.