• Written by Tom Lauck, Creative-Ops

New methods of marketing are emerging that seek to more effectively use prospect and customer data to filter target lists, construct personalization rules and produce and execute marketing campaigns across and among the full range of media channels available. The most successful campaigns reach consumers in a sequenced and consistent manner. This creates an indirect benefit of enforcing and enhancing corporate branding. Therefore, organizations that can harness the power of other marketing channels and produce more personalized communications could put themselves in a good position to capture market share from those that don’t.

There are two critical components to effective multi-channel marketing:

1. Creating relevant offers via personalization
2. Coordination and management of multiple marketing channels

In a multi-channel marketing context, personalization means using what is known about the recipient to create the offer, customize the messaging and deliver it to them in the format requested. For channels other than telemarketing, this can include personalized greetings, relevant messages based on demographics, and compelling graphics. Recent surveys reveal that response rates increase dramatically with an increase in the number of personalization elements. As the number of personalization elements increases from one to seven, the click- through rate more than triples, increasing from 4.7% to 14.8%.

The other critical element lies in the design and execution of campaigns that coordinate among the full breadth of channels available to reach prospective buyers. Much like personalization, this requires strategic and tactical planning. When marketers can sequence communications and “hit” prospective customers with consistent communications through various media channels, the effectiveness of campaigns increases greatly.

Will One Channel Steal from Another?

Many executives fear that one channel will take business away from another. The website will steal from the catalog, for example. The truth is that customers who interact with your company over multiple channels are more loyal and profitable than single-channel customers. To become a successful multi-channel marketer, you first need to understand your customers and their preferences, then communicate effectively through the desired channels.

It’s helpful to think about channels as if they were products, applying the same marketing techniques you’d use to sell product s, including acquisition, retention and share of wallet. These techniques applied to channels assume the higher purpose of making users more loyal by encouraging customer interaction over multiple channels.

Then encourage customers to add channels, rather than migrate to a different channel. Don’t replace a user's preferred channel, but instead, convert a single-channel user into a multi-channel user. Understand what channels and channel combinations a user currently uses. For example, you don’t want to introduce a user to a channel that's less cost effective.

Firms in a wide range of industries — targeting both consumers and businesses — are increasingly taking advantage of this innovative and effective method of running multi-channel campaigns, particularly financial services, insurance, healthcare, manufacturing, automotive and technology companies. Service providers, including advertising agencies and print providers, are also beginning to offer multi-channel capabilities, along with strategy development, to help organizations create campaigns and support content that best leverages them.

The days of tactical, disjointed marketing campaigns and programs are numbered. Given the commercial and custom solutions and services available today, selling organizations are increasingly able to generate sales through multiple channels.

Five Key Strategies for Effective Multi-Channel Marketing in Today’s Business Environment

1. The Customer (Data) is King – Just as an oil company would not blindly drill small holes in the earth in search of oil, your organization shouldn’t contact millions of consumers blindly, banking on a very small portion accepting your offer. Rather, seek out or build a repository that identifies which consumers are more likely to find your offer compelling.
2. Get Customers to “Opt-in” – Companies that can build their own opt-in lists, or use qualified industry opt-in resources, are in a better position to communicate and market to both consumers and businesses. Explore methods, such as periodic e-mail newsletters, that provide valuable information and purchase opportunities simultaneously.
3. Invest in Personalizing Communications – The overwhelming response to the “do not call” registry underscores consumer frustration with intrusive, irrelevant communications. Research shows that by a ratio of over 3:1, recipients prefer personalized communications. Research also shows that the more personalized an offer is, the higher likelihood of response. It will require an increased investment in creating content and designing campaigns, but you can expect double-digit response rates.
4. Leverage More Effective Customer Channels – Design and execute new marketing campaigns that leverage the full spectrum of marketing channels. Personalized direct mail, permission-based e-mail and Internet technologies can be employed to dramatically increase the returns on the marketing dollar. Coordinate marketing campaigns using multiple channels and take advantage of the “multiplier effect.”
5. Simplify the Transition by Using Service Providers – Personalizing communications and running multichannel campaigns can be a challenge for those selling organizations that do not currently have the technology or process infrastructure to develop multi-channel strategies, manage customer data, manage marketing content and execute integrated campaigns. Sellers will find that there are several service providers that can help them transition from their current practices to leverage more effective marketing practices.