Maximizing Returns and Minimizing Risk: The Power of Diversification in Digital Marketing

In the world of investments, asset allocation is a fundamental decision that all investors and business owners must make. It involves determining how to allocate their resources to different investment avenues, taking into account factors such as expected returns, potential volatility, and risk appetite. Similarly, when it comes to marketing strategies, the power of diversification should not be underestimated. Relying solely on a single channel like Instagram or relying solely on referrals can be risky, as unforeseen events or changes can derail your marketing plan. As a pending recession looms, business owners of all sizes are realizing the importance of evaluating their marketing portfolios and reallocating resources to maximize returns.

At MD Internet Marketing we are using standard financial principles to maximize the results of the plastic surgeons we work with.  Let’s explore the parallel between asset allocation in finance and diversification in digital marketing. By applying the principles of diversification to marketing tactics, businesses can enhance their return on investment and mitigate risks.  Periodically rebalancing a portfolio’s allocation is a critical step because it keeps portfolios from having too much or too little risk. 

In finance – Rebalancing means selling assets that have performed well and buying assets that have not performed as well to return the portfolio to the desired allocation. 

In Marketing – Rebalancing means decreasing assets that have underperformed and buying assets that have performed in order to maximize your digital marketing budget. 

Drawing from our extensive experience in digital marketing and expertise as an accredited investor, we’ve developed a perspective that likens marketing strategies to a financial portfolio. Allow me to introduce the Omni Channel marketing strategy—an inclusive, adaptable, and versatile framework designed to enhance digital marketing effectiveness.

The Components of an Omni Channel marketing strategy

An Omni Channel marketing strategy comprises several key components that work together to create a cohesive and integrated approach across multiple channels. Similar to financial investments— and we firmly believe that marketing is an investment, not an expense— an Omni Channel marketing strategy comprises essential levers, each analogous to a specific type of financial investment. These components are carefully selected based on their risk-to-reward profiles and their roles within the marketing portfolio.

Your Marketing Portfolio’s Bond – Reliable and low-risk investments can be likened to assets in a financial portfolio that provide steady outcomes. These investments are characterized by their consistent performance and long-term effectiveness. In marketing, this includes SEO efforts, Live Chat, public relations, awards and word-of-mouth, which yield consistent results over time. Regular evaluation and adjustment of these marketing tactics are essential to optimize the performance and ensure they align with changing market dynamics and practice preferences.

Equities or stocks in your portfolio Your Marketing Portfolio – Like stocks, paid media (PPC, display ads, sponsored posts) requires investment and carries a higher risk, but also presents potential for high rewards. Also, Social Media, given its potentially high returns yet susceptibility to rapid market changes (like changing platform algorithms and trends), can be inside of this portion of your  marketing portfolio.

Cash in your Marketing Portfolio –  Marketing needs resources, sometimes that is cash, often its human capital and the investment needed to have the right marketing team in place. Cash should be available when needed and is a foundational component that can be used across all marketing channels, providing a steady base to your marketing efforts. And it’s always important to have some dry powder on hand should an opportunity arise. 

Alternatives in your Marketing Portfolio – These types of marketing opportunities include local events, sponsoring a child sports team, attending a local gala and actively being a part of the community. With many of these alternative strategies, time is often the most needed asset for these opportunities.

Driving Impressions, Leads, and Revenue

The ultimate goals of the marketing portfolio is to increase the relevant impressions, generate quality leads and increase revenue. Here’s how it works:

Increase the Relevant Impressions –  Is your practices’ brand positioning you as the expert? Why should prospective patients care about your brand and what you have to say? Your brand has the power to build a connection, create emotional engagement, and establish a bond with your prospective patients by telling your story, showing your results, and sharing your reviews. Without relevance, any reach is meaningless, as there is no need to show your brand to  prospective patients that are never going to have surgery with your practice. 

Generate Quality Leads – is about getting you in front of your RIGHT audience. Once you have established relevance, reach is the act of scaling. It is achieved through repetition. That’s where your prospects and clients say to you “I see you everywhere.” The reason they don’t see this as spam is because (ideally) you’ve already established relevance.

Increase Revenue – The ultimate goal of marketing efforts, is accomplished by transforming relevance and reach into revenue. A diversified mix of all components is necessary for this. Paid media can drive immediate sales, while social media builds trust and credibility over time, leading to shorter sales cycles and higher conversions. Local events can foster a community around your brand, encouraging loyalty and repeat purchases, while content guides the customer journey from awareness to consideration, and ultimately, to conversion. 

Ultimately, you need to have a diversified marketing strategy in order to adapt and keep the practice growing for years to come.

Continual Monitoring and Optimization

Like a financial portfolio, your digital media portfolio should be continuously monitored, balanced, and optimized based on performance, trends, and business goals. You should adjust your investment in each media type based on what’s delivering results and what isn’t. Measure your outcomes in relevance, reach, and revenue to ensure you’re getting the best return on your marketing investments. As market conditions evolve, so too should your portfolio, consistently adapting and optimizing for sustained success. The Omni Channel marketing approach using a mar-tech stack is not just a strategy, but a philosophy of flexibility, adaptability, and continual growth. 

If you are interested in learning how to build a solid marketing portfolio to maximize your practice’s results, please contact MD Internet Marketing for more information.

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