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www.sterlingmarketing.co.uk www.ivantage.co.uk Implementing Your Multichannel Strategy
www.sterlingmarketing.co.ukwww.ivantage.co.uk
Implementing Your Multichannel Strategy
www.sterlingmarketing.co.ukwww.ivantage.co.uk
The basics
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Put simply
New Customers (n)
LapsedCustomers (l)
Active Customers
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Put simply
New Customers (n)
LapsedCustomers (l)
n>l= growth
Active Customers
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New customers drive growth
Number of New Customers
Cost
per
New
C
usto
mer
Value of New Customer
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You can increase their value
Number of New Customers
Cost
per
New
C
usto
mer Value of New Customer
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Increased customer value
Lower Costs
Resp
on
siv
en
es
s
Value of Customer
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You can reduce acquisition costs
Number of New Customers
Cost
per
New
C
usto
mer
Value of New Customer
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You can do both!
Number of New Customers
Cost
per
New
C
usto
mer Value of New Customer
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Creating the virtuous circle
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Implementing your strategy
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Implementing your strategyData infrastructure
• Within any campaign - the ability to– Load detailed plan including costs– Import actual results– Report actuals against plan– Highlight differences– Load plan modifications maintaining the initial baseline
• Post campaign - the ability to– Analyse customer performance– Merchandise performance– Channel performance– Promotion / Media performance
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Implementing your strategyData infrastructure
• If you don’t have the capability in-house to:– Manage the data– Carry out the analysis and interpretation
• Outsource it
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Implementing your strategyPlanning
• Build a bottom up plan based on your strategy & budget– Customer acquisition
• By activity• By channel• Forecast response (thus new customers)• Forecast revenue• Forecast costs• Time based
– Customer development and retention• By activity• By channel• By segment• Forecast revenue• Forecast costs• Time based
– Testing activities• What are you planning to test• What volumes do you require• Where are these coming from• Is anyone left!
• Does the plan demonstrate the expected level of growth & profitability?
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Implementing your strategyPlanning
• If not, rework the plan• Important that build is as ‘granular’ as possible so that
reworking is ‘easy’
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Implementing your strategyPlanning
• Once plan is ‘agreed’. – Finalise timelines for all activities– Confirm costs / forecasts– Ensure operational infrastructure will support plan
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Implementing your strategyBrand, message and creative
• Consistency of brand, message and creative is incredibly important in multi-channel marketing
• It’s detailed and requires careful management• Over complicating messages and creative treatment can lead
to increased costs / performance failures• Consider the elements to be controlled
– Display banners– Affiliate ads– PPC ads– Landing pages– Inserts– Space ads– Offers and promotions– …………………….
• Not everyone has a sophisticated CMS system
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Implementing your strategyBrand, message and creative
• As part of ongoing planning process:– Develop a channel specific creative plan with list of all
relevant creative elements– Develop an overall promotional plan showing planned
activities by relevant period– Ensure brand values are clearly communicated both
internally and to all external agencies
• And then:– Ensure that the creative timetable and approvals process
allows time for all final creative to be purposed for all channels
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Implementing your strategyCreate ‘tracking’ infrastructure
• A key element of managing your strategy and measuring performance against your plan is the ability to track the source and cost of as high a percentage of transactions as possible.
• Planning and implementing this is another detailed task. e.g:– Create media codes for all mailed media– Create promotional codes for all offers– Ensure GA (or whatever web analytics tool) reporting can report
‘source and keyword’ against web transaction ID– Carry web transaction ID through to in house OP system and
match to business order ID– Ensure all e-mail campaigns coded to allow tracking of orders– Ensure PPC and Affiliate reporting correctly implemented– Ensure costs for all activities have been / can be captured
• Ensure that all codes are correctly applied to media• Ensure that this data is captured
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Implementing your strategyGet underway!
• You’ve got to start sometime!• So get going.
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Implementing your strategyMeasurement and analysis
• Different activities have differing timescales for measurement and adjustment.– Web activities or retail can be reviewed and changed very
quickly– Paper based marketing, and particularly catalogues have a
much longer lifetime
• Play to the strengths of the different channels– Use e-mail, web offers, merchandising on web for quick,
tactical activities– Use them to generate excitement and time limited offers
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Implementing your strategyMeasurement and analysis
• Develop ‘dashboard’ reports to show general direction and flag performance against KPIs
• Ensure there are clear responsibilities for monitoring detailed performance within campaigns and channels
• Be ruthless in reviewing out non performing activities and either retesting or cutting
• But … ensure that tests are run correctly and to completion so that lessons can be drawn
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Implementing your strategyMeasurement and analysis
• And then start to work out what’s going on!• Which is where the move from data and analysis to
interpretation occurs
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Implementing your strategyMeasurement and analysis – interpretation
Total Orders
0
1,000
2,000
3,000
4,000
5,000
6,000
Week
Ord
ers
Total
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Implementing your strategyMeasurement and analysis – interpretation
Total Orders
0
1000
2000
3000
4000
5000
6000
Week
Ord
ers
Total
Mailing
E-m ail
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Implementing your strategyMeasurement and analysis – matchback issues
Breakdown of Orders
0
1000
2000
3000
4000
5000
6000
Week
Ord
ers
Mailing Web
Mailing Phone
E-m ail
Underlying Web
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Implementing your strategyMeasurement and analysis – interpretation
Mailed vs Total Orders
0
1000
2000
3000
4000
5000
6000
Mailing Web
Mailing Phone
Total
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Implementing your strategyMeasurement and analysis – interpretation
• And don’t forget that all this ‘direct’ activity will drive store traffic as well
• Measure this by – Vouchers– Address collection– surveys
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Implementing your strategyMeasurement and analysis – interpretation
• Don’t be taken in by the ‘apparent’ accuracy of the data• Rather than one view there are a series of views to be
interpreted• Understanding these requires a variety of techniques
and analyses• For example, in Week 2
– 2,900 orders could be matched back to people who were e-mailed
– and 2,900 orders could be matched back to people who were mailed
– But there were only 2,900 orders!
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Implementing your strategyAnd once you’ve done it
• Analyse• Review• Start all over again – only better!
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Implementing Your Multichannel Strategy
