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One
Size Does Not Fit All!
Channel
Management That Fits
Which channel is most effective in a
multi-channel direct marketing company?
A. Internet
B. Direct Mail
C. None of the above
The correct answer is C. None of the above.
Multi-channel buyers typically order 20-40% more than their single channel
counterparts. Identifying customers by channel preferences allows the
creation of synergistic marketing.
Start by reviewing the current marketing
plan to determine if customers are discouraged from channel jumping or
encouraged to buy from every channel. Common reasons for confining
customers to specific channels include:
Incomplete analysis-Internet
marketing and order processing costs are significantly lower than direct
mail. Internet customers are often confined to web marketing and
communications because of the cost differential.
Departmental Competition -
Marketing
via the Internet is very different from traditional direct mail so many
companies have independent departments. This means separate budgets,
goals, resources, tools, and competition for customers. It is very
challenging to capture source codes on the internet so the ongoing debate
is how much of the unknowns were driven by direct mail vs. the internet.
There is even the temptation to drop all direct mail promotions and drive
the business to the internet.
Lack of Communication -
The
customer must be told that other channels are available. Every customer
contact should include information about every channel. This includes
invoices, FTC notices, promotional mail (both snail and electronic), and
the web site.
Next, implement an aggressive multi-channel
marketing plan. Create a marketing department that encompasses all
channels. Segment the existing customer base by channel purchases –
Internet, Traditional, or Multi. If possible, further segment the
multi-channel customers by original source and identify traditional
customers by known and unknown internet access. (If a traditional customer
has an email address or requested a catalog via the web site, then they
have known internet access.) Define the value of each segment. Test
marketing across channels to find the most effective promotions.
It is very reasonable to offer online
savings that are unavailable via traditional channels since the processing
costs differ. Just be careful to not alienate traditional channel
customers.
Finally, roll out the plan based on the
tests. Always ask for the sale, encourage the utilization of other
channels, and make it easy for the customer to find the channels that fit.
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