multi channel marketing strategy - i

American Marketing Association

Multichannel Marketing Strategy AMA Workshop March 2013

2 American Marketing Association

What You Told Me

Source: Pre-session responses from MCM workshop participants

“Our MCM is ad hoc, inconsistent and reac2ve. We don’t have a

strategy in place.”

“

“

“

“We don’t have a strong, strategic mindset about our brand or how

it’s marketed in-‐channel.”

“We don’t have a marke2ng culture here. Our execs don’t understand it, support it, or budget for it well. So our MCM suffers.”

“Our MCM is now burgeoning. We need to be coordinated and strategic.”

“I want to become a resourceful partner for all sales channels here. Our MCM is cluGered, unfocused, and incomplete at the moment.”


Learning Modules

We’ll toggle around during our two days together

Principles Insights Strategy Cases Reflection


ARCHITECTING MCM STRATEGIES (90 mins) •  Case studies •  Workbook exercise/reflection

BUILDING A ‘MOCK’ MCM STRATEGY (90 mins) •  Background/assignment •  Sub-group breakouts •  Group discussion

Break (15 mins) APPLYING MCM PRINCIPLES (45 mins) •  Workbook exercise/reflection •  Peer review

Workshop Schedule

INTRODUCTION (15 mins) •  Curriculum Review CONTEXTUAL FOUNDATION (90 mins) •  Foundational principles •  Aligning business, brand, channel strategy •  Planning tools & frameworks

Break (15 mins) MCM STRATEGY (90 mins) •  What it means •  Planning tools & frameworks •  Success factors & imperatives

Mor

ning

8:

30am

– 1

2:00

pm

A

ftern

oon

1:00

pm –

5:0

0pm

Day 2 Day 1

EVALUATING MCM STRATEGY/2 (90 mins) •  Group review/discussion •  Workbook exercise/reflection •  Peer review Break (15 mins)

ORGANIZATIONAL READINESS (90 mins) •  Operationalizing MCM principles •  Success factors •  Workbook exercises/reflection

CLOSE (30 mins) •  Final thoughts/course survey

WELCOME BACK (30 mins) •  Recap key learnings/Day 1

MEASURING CHANNEL IMPACT (90 mins) •  Cross-channel quantification •  Attribution principles •  ROI tools

Break (15 mins)

EVALUATING MCM STRATEGY/1 (60 mins) •  Mock strategy development •  Sub-group breakouts


Funny, but true

In this section we will cover Strategic Development:

•  Fundamentals of strategy •  Aligning Business, Brand, Channel strategies •  Planning Frameworks


Strategic Development Background > Fundamentals


Insight

“Nobody really knows what strategy is.” The Economist


Insight

“Most of us are afraid of strategy…Strategy is scary because it describes results, not actions, and that means opportunity for failure.”

Seth Godin


Why do we need a strategy?

" Without a strategy, we fill our time with: •  What we want. •  What we think the boss wants. •  By reacting.

" Without a strategy, time and resources can easily be wasted on piecemeal,

extraneous activities. •  “If you don’t know where you’re going . . . any road will get you there.”

- Lewis Carroll

“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4


“Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4

Strategic Development Process

Strategic Analysis §  Industry Analysis §  Customer/marketplace trends §  Customer lifestage/lifestyle needs, wants §  Customer activity cycle §  Environment forecast §  Competitor analysis §  Assessment of internal strengths, weaknesses, resources, culture

Mission §  Fundamental purpose §  Values §  Vision

Objectives §  Specific targets, short & long term

Strategy The central integrated,

externally oriented concept of how we will

achieve our objectives

Organizational Imperatives §  Structure §  Process §  Symbols §  Rewards §  People §  Activities §  Policies

It’s not the sequence.

It’s about robustness of the

whole.


Five Elements of Strategy

Arenas

Staging

Differentiators

Vehicles Economic Logic



System of Choices

Economic Logic

Arenas

Staging

Differentiators

Vehicles

Where will we be active?

How will we get there?

How will we win in the market place?

What will be our speed and sequence of moves?

How will we obtain our returns?




Arenas: Where we are active " Which product categories ?

" Which market segments ?

" Which geographic areas ?

" Which marketing channels?

" Which core technologies ?

" Which value-creating stages ?

" With how much emphasis ?


1



Vehicles: How we get there The means for attaining the needed presence in the identified arenas. " Internal development? " Joint ventures / alliances ? " Licensing / franchising ? " Acquisitions ?


2



Differentiators: How we win The reasons that customers will choose us. " Image ? " Customization ? " Price ? " Styling ? " Product reliability ? " Anything else ?


3



Staging: What will be our speed & sequence of moves? " Driven by availability of resources, urgency, need for credibility and

need for early wins " Speed of expansion ? " Sequence of initiatives ?


4



Economic Logic: How we obtain our returns How profits will be generated. " What generates cash ? " What decides your margins ? " What generates market share growth ? " How fast do sales turn into cash ? " What numbers / ratios tell us we’re successful ? " What are our underlying core capabilities ? " Lowest costs through scale advantages ? " Lowest costs through scope and replication advantages ? " Premium prices due to unmatchable service ? " Premium prices due to proprietary features ?


5


Strategic Evaluation

§  Does your strategy exploit your key resources & capabilities? With your particular mix of resources, does this strategy give you a good head start on competitors? Can you pursue this strategy more economically than competitors?

§  Will your envisioned differentiation be sustainable? Will competitors have difficulty matching you? If not, does your strategy explicitly include a relentless regimen of innovation & opportunity creation?

§  Are the elements of your strategy internally consistent? Have you made choices of arenas, vehicles, differentiators, staging, and economic logic? Do they all fit and mutually reinforce each other?

§  Is your strategy implementable? Will your key constituencies allow you to pursue this strategy? Can your organization make it through the transition? Are you & your management team able & willing to lead the changes?

§  Do you have enough resources to pursue this strategy? Do you have the money, managerial time & talent, & other capabilities to do all you envision? Are you sure you’re not spreading your resources too thinly?


Aligning Strategy: Building Blocks

CONTEXT CUSTOMERS

COLLABORATORS

COMPANY COMPETITORS


CUSTOMERS . . . that customers want . . .

COLLABORATORS . . . and who wants to help us do it?

COMPETITORS . . . better than others . . .

COMPANY . . . that we can do . . .

CONTEXT What things are possible . . .

What business

are we in?



CUSTOMERS . . . that customers want . . .

COLLABORATORS . . . and who wants to help

us do it?

COMPETITORS . . . better than others . . .

COMPANY . . . that we can do . . .

What business are we in?

How do we capture share?

Identify TARGET MARKET

CONTEXT What things are possible . . .

POSITION to DIFFERENTIATE

from others


Design CHANNEL

MARKETING Strategy


Strategic Alignment: Waterfall

" What? •  Market Opportunity

" Who? •  Segmentation/Targeting

" Why? •  Brand Positioning

" Where? •  Customer Journey

" Which? •  Channel Architecture

" How? •  Content/Experience

Source: CMO.com, 2012 survey


Planning Frameworks Business > Brand > Channel


Strategic Development

" Framework #1: Market Opportunity


Our Market Opportunity

Us Customer

Competitors


Our Vulnerabilities

Tablestakes

Our Points of Parity

•  •  •  • 

Customer Wants & Needs

•  •  •  •  •  •  • 

Our Competitive Disadvantages

•  •  •  •  •  •  • 

Customer Needs

Our Company Strengths

Competitor Strengths

Our Competitive Advantages

•  •  •  •  •  •  • 

Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles

Identifying Our Market Opportunity


Our Vulnerabilities

Tablestakes


•  Range of cardiovascular equipment

•  Convenient Hours


•  Affordable •  Make friends/

socialize •  Family

activities •  Member of

community


•  Newer facilities •  Cleaner •  More locations •  Singles friendly •  Special features •  Unique features

(spa, etc.)

Customer Needs




•  Family focused •  On-site child care •  Affordable •  Activities for all

ages •  Range of fitness

programs •  Family swim

pool •  Unique offerings

(swim lessons, etc.)

•  Camp Eberhart

Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles

Identifying Market Opportunity: YMCA


Our Vulnerabilities

Tablestakes


•  Selection satisfies requirements

•  Time/cost efficient •  Geographic

proximity


•  Minimize effort •  Easy in/out •  Find what I

needed •  Good quality •  Convenient

location •  Not

overwhelmed


•  Inventory breadth/depth

•  Lower prices •  Easy returns

Customer Needs




•  Knowledgeable assistance

•  Friendly/approachable

•  Feel valued, empowered (not overwhelmed)

Identifying Market Opportunity: ACE


Planning Frameworks Business > Brand > Channel


Understanding Brands

Brand as Primary Source of Business Value


Brand v. Product/Service

" Products/Services •  Have functional value •  Can be copied by competitors •  Can become outdated

Brands •  Have functional and emotional value •  Are unique and proprietary •  Are timeless •  Exist in customers’ minds

$1 $4


A Jingle

A Spokesperson

A Symbol An Ad A Logo

A Slogan A Name

Brand is not:


" A promise.

" A company’s most strategic asset.

" The reflection of a customer’s entire experience with a company.

" Built and protected by entire organization, not just the marketing department.

Brand is:


Source: Interbrand, Brand Values 2011

Powerful brands create Economic Value

•  1% increase in customer satisfaction leads to a 3% increase in market cap.

•  2% increase in customer loyalty leads to a 10% cost reduction.

•  5% increase in customer retention increases customer lifetime value by 25%.

•  5% increase in customer loyalty can result in up to a 95% increase in profitability.

•  50% of customers will pay 20–25% more for brands they are loyal to. Sources: Brandkey, Bain and Mainspring, Marketing News


Brand as Business Core

R&D Executive Team

& Business Units

Information Technology

Business

Strategy Marketing &

Sales

Operations & Finance

Brand Strategy


Brand Strategy

Brand Strategy Brand Strategy

Business Strategy

Products/Services

Rational Dimensions Physical Attributes

Emotional Dimensions Subjective Associations


Brand Strength

Strong Brands •  Make clear, meaningful promises. •  Built with compelling (rational and

emotional) equities. •  High relevance in customer lives. •  Consistently delivers. •  Instills confidence. •  Clearly differentiated on key

dimensions. •  High loyalty.

Weak Brands •  Make vague promises. •  Built with general (and low emotional

commitment) equities. •  Low relevance in customer lives. •  Inconsistent. •  Creates doubt. •  Undifferentiated. •  Low loyalty (rely on pricing/

promotional incentives).


Strong Brands

•  P&L

•  Functional attributes

•  Building volume

•  Commodity price war

•  Selling

•  Expense mindset

Focus: Inside > Out

•  Customer

•  Daily life context/moments

•  Building loyalty

•  Price realization

•  Consuming

•  Investment mindset

Outside > In

FROM TO

Brand as Strategic North Star •  Drives long term competitive advantage •  Needs to be owned by top management •  Requires systemic thinking/branding tools

Brand as Tactical Tool •  Drives short term results only •  Owned by MarCom



" Framework #2: Brand Strategy System


Enduring Customer Advantage

Extended Identity

Core Identity

Brand Essence

Brand Positioning

Brand Customer Relationship

Integrated Channel Toupoints (Context and Content)

Brand Strategy System: Multi-Dimensional

Brand Power

Brand Equity: the set of brand associations in the minds/hearts of customers.

Brand Power: how levels of brand equity link to distinctive functional attributes and emotional benefits.

Brand Customer Relationship: role the brand plays in the customer’s life.

Brand Equity

Brand Positioning: aspect of brand equity that is actively communicated to target audience.

Integrated Channel Touchpoints: activities that engage customers where they are with relevant content.


Perform at Your Peak

Gatorade Brand Equity

Brand as Person

Athletic

Brand as Symbol

Brand as Organization Leadership through innovation

Credible Brand-customer relationship: The Expert

Peak performance •  Innovative hydration for athletes •  Provides Endurance •  “Born in the Lab, Proven on the Field”

Fight to win: •  “Is it in you” •  Don’t quit, perseverance •  “Go Fierce, or Go Home”

Emotion: •  The thrill of triumphing •  The satisfaction of not quitting

Extended Identity

Core Identity

Brand Essence

Brand as Product

Determined

Tough



" Framework #3: Brand Power


Brand Power: Transfers Up

Functional Attributes

Functional Benefits

Brand-Consumer

Relationship

Emotional Benefits

Self-Expressive

Benefit

Features

Rational Advantages

Human Needs

Emotional Advantages

Self Actualized

give me…

Which meet…

and allows me…

so I am…

Frame of Reference


Brand Power: Gatorade

Functional Attributes

Functional Benefits

Brand-Consumer

Relationship

Emotional Benefits

Self-Expressive

Benefit

Electrolytes

Hydration

Acts as my coach

Perform at my peak

A winner

give me…

which…

and allows me to…

so I am…

Performance


Brand Relationship

§  Advisor

§  Buddy

§  Enabler

§  Friend

§  Fun companion

§  Mentor

§  Mother

Companies Brand-Customer Relationship



" Framework #4: Brand Positioning


Positioning for Advantage

Positioning refers to the essence that is overtly communicated to stakeholders. It represents the

total of what a person or group of people think and know about the company and its brands.

A unique position establishes a sustainable

customer advantage AND a corporate focus. .


Positioning Opportunities

" Define a target that is based on rich, emotional insights rather than pure demographics.

" Move beyond industry and category terminology to select a frame of reference that captures the full range of consumer choice.

" Communicate brand benefit(s) in a way that is relevant and engaging to stakeholders.

" Move away from reasons to believe that are technical or less relevant to customers and find support points that are believable and compelling.

" Think about how channel strategy can reinforce/dimensionalize brand positioning.


A positioning is: A positioning is NOT:

•  A vision or mission statement.

•  A business strategy.

•  An advertising slogan or tag line.

•  A description of a product or service offering.

•  A defined and differentiated perceptual space relevant to key stakeholders.

•  A compelling description of the strategic intent, personality and competencies of the organization/product/service.

•  A unifying, overarching idea that drives all execution (e.g., messaging, channel tactics, customer service).

What is a Positioning Statement?


Positioning Best Practices

Brand Positions should be: • Meaningful and compelling to target audience. • Emotionally grounded. • Relevant in the context of customers’ daily lives. • Able to deliver against promise. • Differentiated. • Consistent and clear. • Actionable in market/channel.


Positioning Statement

To <target audience>, [BRAND] is the <frame of reference> that

<core promise> because <reasons to believe>.

The primary group with which the brand wants to communicate.

The relevant set of substitutable products.

The primary relevant and compelling benefit delivered

by the brand to its target audience.

The proof or reasons to believe the brand delivers the benefit to the target.


How powerful is this Positioning Statement?

For children ages 6-12, Lego is the toy that offers them the greatest degree of flexibility because Lego is the most trusted

toy brand.

Comments Comments

Comments Comments


Lego Positioning Statement: Reimagined

For children with imagination, Lego is the recreational activity that offers them the power to create endless play experiences limited only by their own imagination because Lego provides a full range of building components that can be used to assemble

infinite combinations.

is held together by a common insight – that they have imagination.

is broad enough to capture products (or even services) beyond just toys that could be used to stimulate the imagination.

is insight based benefit, not feature based. It’s not

that the products offer flexibility, it’s that they create experiences.

is aligned with the core promise and is relevant to consumers.



" Framework #5: Segmentation & Targeting


Segmentation and Profiling

" Understanding the customer(s)

•  What are the discrete segments?

•  How do they move through category decision process?

•  Who do they listen to?

•  Where do they get their information?

•  What are their channel interaction patterns?

•  What do you want them to think, feel, believe?

•  What evidence are you going to give them for their rational beliefs?

•  What do they need to know about for their emotional beliefs?


Current Customers

Competitor Customers (Prospects)

Category Non-Users Lapsed Customers

Segment Priority

Size & Volume Potential

Decision Criteria or Motivators

Usage Behavior

Decision Process

Barriers/Concerns

Information Sources & Influences

Brand Importance

Channel preferences

Satisfaction requirements

Customer Targeting Matrix

Note: Adjust cells to suit category and brand


Planning Strategy Business > Brand > Channel


Clever but True


Old Model

" Channel strategies used to be relatively simple. •  Messaging occurred through traditional, 1-way communication channels (e.g., TV/print/

radio/OOH advertising, in-store collateral, events). •  Products distributed through brick & mortar/catalog channels.

" Prospects engaged and moved through funnel in predictable, linear stages. •  People generally started at the same point (i.e., similar level of knowledge) and

methodically guided through process. •  Company controlled brand, message, conversation, buying process


Today’s On-Demand Culture

" Consumers are increasingly empowered and demanding •  People no longer passively accept/trust information provided by marketers. •  People no longer let brand owners, retailers, communication channels dictate agenda.

" Marketing now more complex due to (customer) ‘accommodation’ mandate. •  Technology changing customer access, purchase process, success factors


Internal Stakeholders

Earned Content

Owned Content

Paid Content

Channel Transactions

Direct Sales

CRM

Customer Service

Multichannel Marketing Strategy

Ecosystem of Accommodation

Communications

Selling

Customer Support


Era of Customer Accommodation: Success Factors

" Calibrate comprehensive channel mechanisms based on customer interaction preferences/patterns. •  Communications (content, lead generation/qualification).

•  Sales (transactional access, fulfillment) •  Support (pre-/ post-purchase service).

" Understand customers and their journey to design idealized purchase process and usage experience. •  Defines how/when/where to “touch” customers for optimal access, relevance, impact.

•  Determines channel choice, prioritization, and investment.

" Enroll and equip the organization to succeed in a multichannel universe. •  Marketing Department leads multichannel development process.

•  Enterprise-wide delivery across touchpoints (i.e., areas beyond control of Marketing Department).


Communications: New Landscape

" Customers control conversation about companies, brands, products. •  Blogs, posts from peers exert significant influence (across all life stages, most industries).

" Marketers now need to prioritize 3 distinct types of information channels to accommodate customers


Communications: New Landscape

" Digital Technology has granted customers unprecedented access to information, products, transactional utility.


Mobile as Emerging Powerhouse

" Mobile channel in particular is soaring: some marketers now think mobile ‘first’ (i.e., lead channel)

Source: Nielsen Mobile Insights 2012


Poster Child: Online, Offline, On-the-Go

" Walgreens embraces multichannel philosophy. •  Paid and earned media presence. •  Owned mobile content (text alerts, coupons, smart phone apps). •  Web support (live pharmacist chats, e-commerce). •  In-store service (drive-thru, wellness clinics). •  Integrated data & mining drives personalized messaging/offers, contact frequency, ROI.

Walgreens Powers Multi-Touch Strategy

Walgreen’s drive in http://

www.flickr.com/photos/ambernectar/4042608385

“… it’s imperative that customers can conveniently access Walgreens

in any form, when and where they want to.” -- David Lonczak Walgreens VP


Multichannel Marketing Strategic Imperatives


Funny, but true

Now we will cover:

•  Multichannel Marketing Challenges •  Strategic Success Factors & Frameworks •  Multichannel Case Examples


Multichannel Marketing Challenges " Obsolete mindset & practices: stop viewing channels as silo’d vehicles.

•  Think about it as customers do: a set of related engagements that deliver cumulative value. Orchestrate end-to-end delivery of desired customer experience.

•  Success increasingly dependent on channels outside of Marketing control (inside and outside their organizations). Enroll all partners in delivery of strategy.


Where Marketers Struggle

Source: CMO Survey/Experian (2012)


Channel Marketing Strategy Today

72


Multichannel Success Factors

" Framework #5: Must-Do Steps


Enroll the Organization

" Set specific goals. •  With any marketing effort, before embarking write down what it is exactly you are trying to

accomplish (generate awareness, leads, revenue?), along with target numbers not just for the overall plan, but for each channel that you plan on using.

" Bridge operational silos. •  You might not be the owner of all the channels that will be going into your cross-channel

marketing plan. So coordinate with each team leader so everyone knows which part they have to play. Also, determine how credit will be given to each team if the campaign proves successful.

" Get executive buy-in. •  Building an integrated marketing plan requires a decent amount of work and patience

before seeing results, so make sure anyone that has a say in the matter is aware of your plan, the opportunities and risks involved, and gives you the thumbs-up to move forward.


" What info/support do stakeholders need within each channel? Across channels? " How do they seek it out? When? What format? " Which conditions/parameters? What frequency?

Info Hierarchy by Channel

Engage Customers through Relevant Channel Content


Use 360 Views to inform Accommodation Marketing

" Develop information infrastructure. •  Technology now enables us to collect, process, and mine more customer data faster than

ever before from online and offline channels for multidimensional view of customers. –  Capture transactions, complimentary 3rd party data, digital activity, customer feedback loops. –  Standardize file structures/formats. –  Embrace multichannel analytics.

•  Mine at increasingly granular levels to inform channel strategy that delivers the desired customer experience. –  Micro-targeting, personalized contact/relevant content/targeted offers (i.e., go beyond pushing out

mass communications). •  Distribute customer information/insights across the organization to deliver seamless

customer experience and boost performance. –  Share customer requirements within and across multiple channels.


" Track what’s critical to customers engagement/satisfaction that enables multidimensional views/response.

" Track what’s critical to business success, integrated from discrete sources. " Select cohesive, multichannel analytics/ tech solutions to aggregate diverse

formats/file structures to inform cross-channel/full funnel attribution models. " Harvest insights to inform next practices (micro-segmentation, channel weighting).

Use Multichannel Measurement & Analytics


Multichannel best practices

Source: Forrester Research, Inc.

Selling •  Build Web applications that bridge the channels. •  Enable reserving or buying online with pickup in

store. •  Offer consistent pricing and promotions.

Service •  Offer service choice. •  Provide an extended inventory network.

Marketing

Metrics and measurement •  Provide incentives for channel cooperation. •  Treat the Web as more than just another store. •  Assign clear executive leadership.

Organization and culture •  Create metrics on cross-channel growth and satisfaction.

•  Use loyalty programs to track customers across channels.

•  Use surveys to gather additional insight.



" Framework #6: Guiding Principles


Big 4 Convenient Consistent Contextual (a)Cross time


convenient


Walgreen on iPad

Use Channel Touchpoints Strategically

Align what they do best with customer needs


cohesivet


Ensure unity across customer segments PR

E-AC

TIVA

TIO

N Regulatory

communi-cations

CARES letter

Connections newsletter

Hard-copy bill

state-ment

Bill message

Product/Svc campaign

Active Idle screen daily

perks

My Account registration

mailer

Bill inserts

Radio TV PR/ Inv Rel

OOH Print

Calling all communities

GRO

Exterior Store

Banner

Interior Store

Banner

Store discovery

bar

Phone detailing

Community Board

Battery swap van

POS tech support

30 day exchange

Visit store RWC

POS bill pay

Video smart-phone wall

Inbound CS general/

activation calls

Store device

workshop

Ongoing Legacy Only Legend= Ongoing Legacy

& Rewards Ongoing

Rewards Only Singular Touch

Point (both)

Welcome call

Self-serve CS IVR

Self-serve CS/CRR IVR

IVR xfer to CS, FS, Prepaid, Lifeline, CR, CRR, Tech Support 7th day

bill credit or

rewards SMS

1st Bill call

60th day SMS

Mail-in rebate (MIR)

YouTube

Twitter

Facebook

New Smart phone SMS

Online customer purchase

Online Videos

My Account emails

Website

Surprise & delight

Sponsor-ship

events Moments to believe in

Website demo on modem display

VOC

Action response

team

B2B - SMB

Owner comm.

Store collateral

B2B Large Owner comm.

Referral Program

CLCP Cust Eng surveys

Migration campaign

calls

B2B SMB annl plan

B2B Large bi-annl plan

Migration campaign mail

In-contract campaign

Store POS device/access. purchase

materials

Out-of contract campaign

Eqpt eligible trigger campaign

B2B Welcome Packet

B2B associates

CLCP

Out-of contract campaign

IVR xfer to CS, FS, Prepaid, Lifeline, CR, CRR, Tech Support

POS tech support

Customer Crew

<30 day welcome

kit DM

Store buck slips

VIP bonus

NDC touches

CCS emails

Rewards feedback emailbox

My Account emails (acct statements, bday etc.)

Webchat support

Telesales

Call store RWC

SMS pt statement

(unregistered)

Direct fulfillment box/content

Pdt vendor commun-

ications (ie. Zed)

Page 3

When%Looking%Holis.cally%Across%All%Customer%Touch%Points,%%We%Deliver%�A%Lot%of%Stuff�%to%Our%Customers!


Ensure unity across screens


Ensure cross-channel consistency


contextual


Customer Hot Buttons


Contextual Relevance: DIY Weekends


(a)cross time


Trying on tent

research online, try in store


Cross-channel shopping

Sample Elements

0%

10%

20%

30%

40%

50%

60%

70%

80%

Gen Yers Gen Xers Younger Boomers

Older Boomers Seniors

Have you ever researched a product online and then purchased it (actually paid for it in an offline store?”

Male Female

Source: Forrester’


Cross-Channel Case Example

" USAA (Fortune 100) provides financial services to military families throughout their lives. •  From weddings and first homes to college funds and retirement.

" USAA Customers interact with multiple channels throughout their planning, purchase, and

usage process. •  Customers seek out info from offline and online sources. •  Customers start application online and finish it over the phone. •  Customers check account balance online while waiting in the call center.

" Studying user flows identified sequence of events that led to positive or negative sentiment across channels. •  “Our customers were already multichannel, but we viewed them as isolated interactions.

The key was understanding the differences between good and bad cross-channel experiences.” - Allen Crane / Executive Director / Research & Analytics


Cross-Channel Analytics

" Cross-tabulating data to inform cross-channel marketing strategy. •  Customer satisfaction, demographic attributes, purchase history, and web and phone logs. •  Identified opportunities for highly targeted engagement (based on customer’s life stage,

behavior patterns, and channel preferences).



" Framework #7: Voice of Customer


Channel strategy dictated by customers (not corporation)

" Insight comes from asking right questions in right ways •  What offline and online activities do they participate in when engaged in our category? •  What channels does our audience prefer for information? Sales? Post-sales support? •  Do they seek advice? Do they look for customer reviews? Do they want to talk to

someone? " Voice of Customer (VOC) research uncovers needs, triggers, barriers, and

accelerants. •  Emotions. •  Thoughts. •  Behaviors. •  Time. •  Place.


Customer Definition

Channel Mapping

Moments of Truth

Experience Design

Experience Monitor

Strategic Questions

Analytic Approach

Deliverables

“Who are our best customers/prospects?”

“What is their current channel experience?”

“How can I make their channel experiences exceptional?”

“Are we delivering the desired experience?”

“What channels most impact success?”

Customer Interviews Intercept Studies Ethnography Analytical Research Social Mining

Touchpoint Dashboard Experience Dashboard Channel ROI

Customer Segmentation Customer Targeting Customer Personas

Channel Priority Ranker Channel Investment

Purchase Process Day In The Life Journey Map

Experiential Plan Cost Benefit Analysis Touchpoint Guidelines Operational Requirements

Segmentation Analysis Prospect Analysis Customer Lifetime Value Situation Review

Experience Mapping Concept definition Operation/business process review

Customer Interviews Importance Ranking Financial Impact Projection

Channel Weighting Channel Tracking Customer Feedback

Using Voice of Customer to inform Channel Strategy

Understanding which channel combinations work best with key segments at distinct stages


Main Sections of Questionnaire

Markentreiber für die Markenwerthebel 4

Respondent demographics 1

Currently use our products? Decision making criteria and purchase process behaviors? Etc.

Role of Channels 3

Which channels are used by the target audience? How do these touchpoints satisfy needs and deliver on our brand promise?

2

Where are they in the funnel? What are their perceptions of our brand and competitors?

Prioritization of Channels 4

Which channel experiences drive purchase decisions and conversion along the funnel? Which ones influence/support?

5

Effectiveness of Channel Strategy (as Eco-system) 6

How effective is our channel system in delivering brand strategy?

Voice of Customer: Quantitative Research

Current behavior and knowledge

How do consumers evaluate performance of each touchpoint relative to expectations? Competitors?

Evaluation of individual Touchpoints

ILLUSTRATIVE EXAMPLE


Voice of Customer: Qualitative Research

" Documenting: Day in the Life. •  Personal Journals. •  Ethnographic Interviews. •  Shop-Alongs.


Customer Personas

" Personas enable you to relate to your audience as a human being. •  1-2 page representative profile (for each segment) based on research. •  Fictional narrative about the person’s life (things that make them unique, memorable). •  Brief outline of daily routine, including specific details, likes, dislikes. •  Name, age, photo, and personal information (emotional wants, needs). •  Summary of work, including time in job, info-seeking habits, favorite resources,

professional goals. •  Living & work environments (including key relationships, frustrations).


Jesse Butts PART-TIME STUDENT AGE: 29 SEX: MALE LOCATION: LISLE, IL OCCUPATION: ANALYST Jesse is a 29 year old marketing analyst working at a major corporation in the suburbs. For the past 3 years he has been taking on a more active roll in the organization: managing projects, working with agency partners and doing some basic campaign analysis. He’s looking to stay with his current organization and quickly advance. HR recommends that Jesse can demonstrate his commitment to the organization by pursuing a Masters Degree. The organization will even pay for some of the degree if he keeps his grades up and commits to staying with the organization for 2 years after his degree is complete. GOALS Advance his career Make more money Gain new marketable skills Get ahead of his boss ONLINE ACTIVITIES Jesse is an active member on Facebook. He updates his status almost daily . A fair amount of his updates now come from his mobile phone. Jesse also reads a mix of marketing trade publications online to keep up and show his managers he’s interested in Marketing. He also is follows the local sports teams. OFFLINE ACTIVITIES Jesse is involved in the Chicago Sport and Social Club. He comes to the city on Thursday to play volleyball with some friends. He often stays late for a drink after work and takes the train home. KEY PAIN POINTS /FRUSTRATIONS Time commitment, Jesse is young, unmarried and likes to enjoy his weekends. Acceptance, fear of rejection Primary Motivators by Priority: 1.  Career advancement or change 2.  Specific skill improvement tied to career advancement 3.  Perception that “Master’s is new Bachelor’s” 4.  Time is Now 5.  Validation from external world


Lizzy Ullman FULL-TIME STUDENT AGE:39 SEX: FEMALE LOCATION: CHICAGO, IL OCCUPATION: UNEMPLOYED Lizzy was recently let go from her job at a Chicago based company that specialized in supply chain and logistic management services and process improvement. Her most recent role in the organization was Senior Project Manager. She has been with the organization for 16 years. She is married with 2 kids and currently lives in Ravenswood. She has a degree in communications from Northern Illinois University. GOALS Gain new marketable skills Get back in the game Earn a comparable salary to her previous job Wants to get a degree and quick ONLINE ACTIVITIES Lizzy does not spend much time online. If she is online, she’s checking personal email and catching up with her girlfriends …or doing some impulse shopping. On Amazon.com. She admits that she needs to pay more attention to the space, but does not know where to start. OFFLINE ACTIVITIES Lizzy currently enjoys spending time with her family. She generally has at least 1 weekend activity planned with them. KEY PAIN POINTS /FRUSTRATIONS Concerned about time with kids Concerned about expenses Primary Motivators by Priority: 1.  Specific skill improvement tied to career advancement 2.  Perception that “Master’s is new Bachelor’s” 3.  Career advancement or change 4.  Time is Now



" Framework #8: Customer Journey


Customer Journey Maps as Inspiration for Channel Strategy

" What’s a customer experience map? •  Graphical representation of the customer engagement from beginning, middle and end.

–  Includes tangible interactions, triggers and touchpoints, as well as intangible motivations, frustrations and meanings.

–  6 Dimensions: Time/duration, Interactivity, Intensity, Breadth/consistency, Sensoral/cognitive triggers, Siginificance/meaning

–  3 Components: What customers Think, Do, Use

" Typical elements: •  Customer actions, usually broken into chronological phases of some kind •  Goals and needs at each step in the process •  Moments of truth, or areas of particular importance in the overall customer experience •  Pain points, gaps and disconnects in service •  Brand impact, satisfaction, and emotional responses •  Business touchpoints and process, including roles, systems and departments •  Existing services and opportunities for improvement •  Other descriptive and contextual elements may also appear, such as quotes and photos.


Customer Journey Maps: How to Begin

" The first step: identifying the most important touch points and how they are perceived by your most important customers or prospects. Plot every point at which key customers interact with you. •  These can begin with your customer’s exposure to an advertisement or other marketing

material. •  They continue through every conversation with an employee in a store, online or via

phone, and their experience with your product or service. •  They even extend into the return/refund process and the customer’s recommending, or

criticizing, your product or service to others.

" Use research outputs and shared team knowledge to plot journey. •  The point of the initial mapping exercise is generating team conversation.

" Evaluate interactions systemically •  Identifies alignment gaps, synergy opportunities


Wheels inspired by Cross-Channel & Enterprise –Wide Views


Customer Journey Map



" Framework #9: Channel Wheels


Customer Journey Analysis: Assessing Pain

•  Price •  Phone Design •  Lack of features •  Availability of models •  Delayed delivery

•  Product brochures •  Durability of device •  Complicated MMI •  Hotline Pricing •  Keypad usability •  Stand by / Talk time •  Data exchange rate •  Compatibility of

accessories

•  Repair time •  Quality •  Availability of service •  Price •  Responsiveness •  Goodwill service •  Consistency of

service information & coordination

•  Loyalty purchases not rewarded

•  Compatibility to older accessories

•  Price of new accessories

•  Not meeting technical expectations

•  Data transmission to new device

Purchase Usage Service Replacement

Dev

ice

In

dust

ry

Issu

es

Eve

ryda

y Li

ves

•  Limited transparency of operator contracts

•  Insufficient advice from sales personnel

•  Radiation

•  Network quality •  Poor call-center

quality

•  Switching costs of loosing phone number

•  Finding things to do with spare time •  Comparing prices during shopping

•  Finding time to spend with your child / friends •  Getting stuck in the traffic/ having to wait in line/ being late for job

•  Grocery shopping for essentials

•  Network quality •  Hearing in the theater •  Fees for content

download •  Compatibility of

network technology


Channel Wheels

" Channel breakdowns. •  Identifies touch point issues.

" Channel breakthroughs. •  Inspires touch point solutions.


Build a Cross-functional, Customer-experience Channel team

" Include representatives from all the key channels: Internet, print, advertising and retail.The team should also represent marketing, merchandising, customer service and fulfillment operations.

" Each person needs to understand at least one level of the customer experience, and be willing to explore other opportunities without boundaries.

" Assign the team the task of creating a unique experience for customers. Beyond merely selling a product or service, what else can you do to entice customers not only to purchase, but to come back for the next purchase, and the next, and the next?

" Reconvene periodically (two to three times a year) and revisit the efforts. What's working? What isn't? What other ideas can you incorporate?

" Each group owns their portion of the advocacy wheel.


BEFORE

AFTER

DURING

Need Recognition

Search

Shopping

Evaluation Moment of Purchase

Usage

Customer Service

Identifying Channel Breakdowns

119

Turning Touchpoint Issues into Opportunities


BEFORE

AFTER

DURING

First exposure, subsequent interactions. Submission of quote/price info

Final presentation, signs contract

Delivery, installation, testing, training, usage

Cyclic payments, proactive maintenance, malfunction & response

Need Recognition

Search

Engagement

Evaluation Moment of Purchase

Usage

Customer Service

Identifying Channel Breakdowns: B2B Example

Turning Touchpoints to Brand Breakthroughs

“I will look into….”

Searches web, Calls contact center or channel partner, seeks input from others

Studies proposal, seeks input form others


Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns



" Framework #10: Channel Architecture


Channel Architecture

" Multi-channel strategy involves each channel playing a specific role in a coordinated, unified system. •  Customer value is defined and delivered within and across channels. •  While customers operate within a world containing multiple interaction points, they expect

a cohesive and seamless cross-channel experience. •  Align channel objectives with segment needs to set engagement strategy. •  Develop strategies that use the right channels to engage the right audience in the right

way at the right time. –  What channels are our segments using to research? Purchase? Resolve issues?

•  Channels don’t operate independently: they often assist each other. –  Customers ‘mix and match’ channels on their path to purchase, usage, support. –  Interplay patterns vary by customer segment, industry, brand.


Channel Hierarchy: Prioritizing Channel Mix

126


Prioritizing Brand Experience

Brand Strategy Positioning, Identity

Customer Experience Strategy Satisfaction, Perceptual Take-aways

Channel 1 Channel 2 Channel 3 Etc.

Objectives and Requirements




Needs and Drivers

Needs and Drivers

Needs and Drivers

Segment 1

Segment 2

Etc.

Offerings Product(s) Service(s) Content Support