maximizing multichannel marketing€¦ · marketing association. in 2007, for a marketing...

Maximizing Multichannel

Marketing 5 Tips to

Avoid Pitfal ls Build Synergies Grow Profits

By Maureen Murphy

Please share. Not copyrighted. 2 Maureen Murphy (949) 551-4353

Multichannel Note #1 “Marketers are moving dollars

into direct marketing because of

its higher ROI relative to other

forms of advertising, ” according

to Dr. Peter Johnson of the Direct

Marketing Association. In 2007,

for a marketing investment of

$1 in direct marketing

advertising the DMA

predicted businesses would

earn $11.69 in incremental

revenue. (Tuesdays with Tukaiz,

January 15, 2008)

Today, multichannel marketing

is the norm. In fact, it is rare to

find a business that does not make

use of at least a basic web site with

minimal interactivity in addition to its

original distribution channel, such as

a sales force or wholesale

distribution.

In fact, world-class marketers are

investing in multichannel approaches

across the board.

Findings indicate that there is

an extremely active

multichannel marketplace

where “traditional direct

marketing tactics are being put

to work alongside the Internet

and other ‘new ’ media in ways

that achieve enhanced results.

” (“The

Integration

of Direct

Marketing

and

Brand, ”

the Direct

Marketing Association, 2007).

Multichannel has brought with it

many opportunities, but also many

challenges and potential land-

mines within this new landscape.

The following strategies will offer

ways to offset the most common

mistakes in multichannel

marketing and to take advantage

of the many opportunities.

Consumers Expect Great Service in Every Channel!

Introduction


Impact of Multiple Media and Channels

0%

10%

20%

30%

40%

50%

60%

70%

80%

email email + direct

mail

email, direct

mail, landing

page

email, direct

mail, landing

page,

telesales

From Combined Sources including Direct Marketing Association

RO

I

Tip #1: Use Your Channels and Media in Concert

Many surveys support a concept which may not be obvious: channels

and media produce the best ROI when used in combination. Similarly,

multi-contact sales and marketing efforts are also proven best

practices.

The first step in making multiple channels work for your organization is

to make sure that your organization is not maintaining “silos ” around

the departments responsible for the individual channels. Does the sales

force talk to the internet marketing people on a regular basis? Or are

managers engaged in

protecting their turfs?

To solve these

challenges, first take a

look at your organization

chart. Marketing

encompasses the sales

force, online marketing,

traditional marketing

tools and, in fact, all

marketing channels and

media. Commit to

integration - put it in

your department

charters and job

descriptions, and

champion it yourself.

For example, in a business office products company, we increased our

bottom line by 3%, simply by analyzing the cost of sales by customer

segment and across marketing channel. The analysis made it easy to

see which customers should receive more personalized (and costly)

service, and which should be served only online or by telesales.

Multichannel Note #2 Testing and statistical surveys prove

that a multi-channel approach

produces the best ROI.


How much are you wasting on

overlapping, non-integrated

marketing programs?


Tip #2: Choose the Right Marketing Tool for the Right

Job

Now that your organization is on

one page, it will be easier to decide

how much direct mail, email or paid

search, for example, to use. Your

online marketers are not competing

with print or the sales force now!

Simply use what works best. To

decide, conduct market tests and

maintain records of all results. If

you find resistance to a testing

mentality, keep in mind that you

were actually conducting

marketing tests all along anyway;

now you will just plan your

campaigns with that orientation.

The answers to choosing your best

tools may sometimes appear

counter intuitive. For instance,

although email has been shown to

have the lowest promotional cost

as a percentage of sales it also has

the overall lowest average order

compared to sales produced

through other media (Direct

Marketing Association, 2008

Response Rate Report). The

highest average orders are

produced through print media. Be

sure to consider the whole picture

when making decisions.

As an example, early on at

Dell Computer (before online

sales), Dell demonstrated an

understanding of “right-

servicing” customers. Large

businesses received more

senior call center help and in-

person sales and service. The

consumer buyer got a lesser

level of support. The buyers in

between received appropriate

levels of service as well.

Multichannel Note #3

Surveys have shown that 75%

of consumers prefer product

announcements from

businesses they do business

with in the mail, but 40%

prefer to respond online.


Is your distribution of online, offline,

sales force and other marketing in

balance?


Tip #3: Create Customer Interactivity in All Media

Now that you are channel “agnostic, ” be sure your tools take

advantage of their respective media. Until the internet, costs per

marketing contact and interactivity of the media were in parallel: high

cost per contact meant high interactivity too. Now, with the Internet,

we can have high interactivity with low cost per contact.

However, consider all your media and channels. Interactivity is always

a great value added; why not always let customers or prospects

provide feedback? You will have the equivalent of a market research

arm operating 24/7!

Consider how you can make all these areas of customer contact

interactive:

Cost Per Contact Interactivity

In person sales or service Highest Highest

Phone contact (inbound or outbound) Very High Very High

Direct Mail/Catalog High Medium

Online – web site Low High

Email Low High

Print ads – targeted Low Limited

Print ads – broad media Low Limited

Broadcast media – local, targeted Low Limited

Broadcast media – national, network Lowest Lowest

With the internet, technology has produced a medium that is low in

cost and high in interactivity!

Have you created customer feedback

loops for invaluable data for


marketing, the sales force and

management?


Tip #4: Build Customer-Centric Campaigns

In this era of rapidly changing

marketing technology it can be

challenging not to over focus on

the technology itself.

Keep your eye on the ball, by

deciding to put your customer at

the center of marketing activities.

Generate customer feedback proactively

rather than just waiting for complaints!

You can get a good start on a

customer-centric orientation by

conducting a customer contact

audit. Have every area that

touches the customer or prospect

produce all their communications

for review. Do not forget to include

scripts from telesales and

administrative communications, too.

For example, at a division of a

supplement company, we

improved customer satisfaction

by 14% by targeting multiple

customer groups with differing

needs making use of a simple

in-house CRM system. We

added the customer-friendly

capabilities without

incremental costs of any kind!

Once you have established this

approach, individual marketing

campaigns will be logical

outcomes. This is where

excellent copy and graphics

come into play. Be sure these

creative elements are driven

from your marketing

strategies, not treated as after

thoughts. Copywriters and

graphic artists thrive when

provided with thorough input.

Multichannel Note #4 GM announced in Ad Age in

March that they would move

half of their $3 million

advertising budget into digital

and one-to-one media over

the next 3 years.


Have you put your customer at the

center of all your marketing and

customer service efforts? Tip #5: Make All Marketing Accountable and

Measurable

There are so many points of data available with online marketing, CRM

applications, data base marketing and even traditional media that it can

seem overwhelming to make sense of it all.

Once metrics are established,

integrate top level metrics into your

planning process as goals; then

compare actual results to these in

your post-analysis efforts.

As an example, my efforts with a

consumer marketer increased sales

$3.1 million dollars in one year

based on analyzing past marketing

efforts, determining measurable goals and metrics and building a

forecasting system from scratch. Once this work was done, updating

regularly was relatively simple.

Recommended Continuous

Loop Planning Process:

1. Analysis of Past Results 2. Strategic Marketing Plan

3. Implementation Plan

4. Individual Channel Plans 5. Regular Plan Revisions 6. Campaign Briefs

7. Creative Briefs 8. Analysis of Results –

Impact Plan Revisions

(feedback to #1 and #5)

Multichannel Note #5 For meaningful metrics, create

key measurements which can be

compared across channels,

campaigns and media, such as

customer lifetime value and cost

per lead or sale.


What key metrics will keep all your

marketing channels on target?


Conclusion Multiple media and multiple channels are more powerful when used in

concert. Do not delay in making a commitment to marketing that puts the

customer first and to utilizing all marketing channels and tools to meet

customer needs.

Begin now to:

1. Breakdown internal

channel barriers

2. Choose the right tools for every job and channel

3. Create two-way

communication with

customers

4. Build customer-centric

marketing campaigns

5. Measure all marketing

The sooner you start, the sooner you will quickly see the impact in avoiding

multichannel pitfalls, building synergies and growing profits.

Ideal Model for Producing Multichannel Synergies

Sales & Marketing Direct Channels, Indirect Channels, Marketing, Sales

Force

General

Advertis ing

Sales

Promotion

Direct

Marketing

Public

Re lations

Personal

Sel l ing

Whether online or offline, marketing is synergistic and customer centric

Sales Force

Feedback Customer Feedback


The Author

Maureen Murphy

Maureen Murphy has over 20 years experience in

expanding business channels using direct marketing

and other marketing strategies. She specializes in

creating marketing momentum for businesses and has

worked for Fortune 100 companies and smaller firms as

well. Her industry experience encompasses consumer

products, nutritional supplements, weight loss, financial

service, technology, automotive and more, with

expertise in both B2B and B2C.

Clients and employers have included:

• Allstate Headquarters

• Transamerica

• First Interstate Bank

• CNA Insurance

• Santa Anita Park

• 20th Century Plastics

• United Ad Label

• Southern California Gas Company

• Real Health Laboratories

• Harbor Health

• Nissan Motor Corporation

• Dell Computer

Maureen has consulted, managed, teamed and led projects, divisions and

campaigns for product launches, new customer acquisition, product

development and much more.

Education: MBA, UCLA John Anderson Graduate School of

Management

BA, California State University at Fullerton.

Contact Information:

(949) 551-4353

[email protected]


www.MurphyMomentumMarketing.com

maximizing multichannel marketing€¦ · marketing association. in 2007, for a marketing...

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