Everyone has their reasons for choosing whether or not to diversify their marketing - whether that’s your channels, creative types, audience targeting, etc.

But, by choosing to rely on a single strategy, you’re exposing yourself to something known as concentration risk.

You’re at the mercy of a platform's algorithm changes, policy updates, cost surges, changes in trends…

(Not to mention extreme limitations for proper growth)

And if you do have any issues? It only amplifies the negative effects.

This can be a huge headache. Trust me, we’ve been there.

Of course the simple solution to this problem is to start diversifying your channels, creatives, strategies, etc.

But this process takes a lot of time and effort, especially if you’re used to approaching it in one way.

Yep - that’s huge headache # 2.

Don’t get me wrong, it’s very doable on your own. But to be honest…it sucks.

Especially when there are a thousand other things you have to do and you can’t ignore the one channel you currently have.

We figured this out early on and decided to go hunting for a solid tool that could help. What we found exceeded all expectations…‍

Proxima - and their data intelligence tools have been crushing it for us.

They have one of the strongest data sets in eCommerce - over 65 million high AOV shoppers and AI models that help us enrich and better understand our first-party data, as well as build custom seed audiences for paid media.

Using their AI-powered audiences and predictive analytics, we’ve been able to:

1. Scale Meta ads more efficiently and reduce our dependency on in-platform targeting (we’re running LALs on their enhanced seeds).
2. Improve retention and customer LTV with predictive signals and insights into our customers’ shopping behaviors at other stores, which has helped inform our content, creative, and ads.
3. Compare our paid media performance to our competitors with network-powered industry benchmarks and make data-driven decisions on how we can improve.

We’ve basically been able to ‘form a shield’ against concentration risk by using their insights to expand into new audiences, strategies, and channels.

Now instead of dealing with huge headache # 2, we’re tapping into powerful insights from their massive data network to help us de-risk our growth strategy and scale profitably.

Goodbye stressful concentration risk, hello efficient scaling.

‍

Until next time,

Ash