How to pick the right Channel Type for your business?
Choosing the right user growth channels is not a one-size-fits-all decision. It's crucial to align these channels with your business model's unique attributes. Let's look at the key attributes that determine the growth channel type.
1. High vs. Low Average Revenue Per User (ARPU):
Businesses with high ARPU can often afford to invest in costly Push Channels like paid advertising, as the return justifies the expense. In contrast, businesses with low ARPU, such as ad-based content websites or apps, might find more value in cost-effective Pull Channels.
2. Audience Width:
Businesses targeting a wide audience might find success with Paid Advertising Channels due to their broad reach. However, for those with a limited customer persona or niche use case, Partnerships or specialized content marketing may be more effective.
3. Brand and Product Advantages:
Some businesses have inherent advantages that make certain channels more effective. For instance, brands with industry authority, like Glossier in beauty or Primal Kitchen in health food, may excel with Virality-Driven or Editorial Pull Channels.
Similarly, platforms with rich user-generated or proprietary data (e.g., Reddit, Glassdoor) can leverage Programmatic Pull Channels more efficiently.
Businesses need to assess these factors in relation to their business models to identify the most promising growth channels. Conversely, channels that do not align with these attributes should be deprioritized to focus resources where they are likely to yield the best returns.
Understanding and aligning with these business attributes ensures a strategic approach to channel selection, maximizing the potential for successful user growth.