Plug the Leaks! 4 Steps to Improve Your Channel ROI

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Operating in channels has always been difficult. Changes in technology and shift of control to customers are further exacerbating things. The resulting rise in cost of lead generation coupled with accelerating lead decay is putting a lot of pressure on margins. To return profitable growth to your channel you need to break this cycle by eliminating the major leaks, namely:

* Data Silos – do you lack visibility into a leads maturation and their eventual contribution?
* Lead Hand Offs – are your leads stagnating and decaying in queues?
* Effort Duplication – are partners overlapping, or even competing for the same space?
* Consistent Branding – from first touch to the last, are your customers touched with a consistent brand message?

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  • Welcome (Audience / Webcast) #EngagingTimes Slide Numbering
  • Tewks/Alterian (Integrated Marketing Platform) South/Razor (Leading CEA) Identify where they are Offer recommendations
  • Stocks / Cheeseburger Surprising how many different types of businesses Financial Securities (Edward Jones, Merrill Lynch))/ QSR (McDonalds, Subway)
  • National / Layers (transparency) / Local
  • Vignette Before McD Chandeliers / Happy Meal / Fry Grease Unarguably the Channel has been good “ We need more help from Headquarters.  Getting and keeping customers is unbelievably hard these days.  With the economy and environment we are in, I have to work harder than ever before to reduce operating costs to say in business, let alone figuring out how to drive traffic.  I am really stuck with stealing share because it’s a zero sum game.   I’m responsible for building my business but I have don’t have the resources to figure out how to use all this new media in my markets.    I need a lot more help.”
  • Cause = channel structure Netting independent processes Data Islands / everyone lacks a complete picture Inconsistent branding Lead Handoffs / FinSrv, Insurance / Decay 100% competition / search
  • Big problem separate lead generation from revenue performance Lengthens queue times because leads are difficult to qualify
  • Spending more to make less Revenue is flattening, while expenses are increasing
  • Where’s the love? Trust is a critical ingredient to building teamwork
  • Attack obvious inefficiencies
  • Tewks/Alterian (Integrated Marketing Platform) South/Razor (Leading CEA) Identify where they are Offer recommendations
  • Plug the Leaks! 4 Steps to Improve Your Channel ROI

    1. 1. JOIN THE CONVERSATION ON TWITTER QUESTIONS? COMMENTS? JOIN US LIVE ON THE 10 TH FROM ST. LOUIS #EngagingTimes Go to: http://www.twitter.com/ Enter #EngagingTimes in search box Hit Search. Will need to refresh Use #EngagingTimes to comment Enter #EngagingTimes in search box
    2. 2. PLUG THE LEAKS: 4 STEPS TO IMPROVE CHANNEL ROI <ul><li>MARCUS TEWKSBURY, ALTERIAN JOHN SOUTH, RAZOR </li></ul><ul><li>IMS, ST. LOUIS DECEMBER 10, 2009 </li></ul>
    3. 3. CHEESEBURGERS & STOCKS WHAT DO THESE THINGS HAVE IN COMMON?!?
    4. 4. SELLING IN CHANNELS THE FLOWS RUN FROM NATIONAL TO LOCAL THROUGH MANY CHANGING HANDS Awareness Interest Desire Acquisition Heat Map Chain, Carrier, Supplier Agents, Stores, etc. State Farm, Dominos, Fidelity, etc. SBA, Mercury Insurance , etc. Ed Bailey National Local Distributor, Master Franchisor, Co-ops, etc. The ‘Final Mile’
    5. 5. COST OF FEEDING THE FUNNEL GROWING LEAD GENERATION ACTIVITIES ARE ALL BECOMING MORE EXPENSIVE Search Traditional Display Email Awareness
    6. 6. SPENDING IS UP ACROSS THE BOARD … AND ITS SPREAD ACROSS ALL THE PLAYERS National Local $470m $20m $170m $50m $40m $50m $25m $5m $25m $30m $40m $10m $5m $170m $300m
    7. 7. WHERE IT’S BEING FELT LIFE IN THE CHANNEL IS GETTING TOUGHER <ul><li>Ed Bailey Snapshot </li></ul><ul><li>Title: CEO of Bailey Enterprises </li></ul><ul><li>Stores: 63 </li></ul><ul><li>Year in Business: 25 </li></ul><ul><li>Annual Revenue: ~$150m </li></ul><ul><li>Net Worth: ~$500m </li></ul><ul><li>Former Occupation: Marine </li></ul>
    8. 8. SYSTEMATIC PROBLEMS INDEPENDENT OPERATIONS STOKES INEFFICIENCY AND DUPLICATION Marketing Fulfillment Local Search Limited Print Brand Traditional 180 ° Carriers / Suppliers 90 ° Distributor 90 ° Agent In order to close the loop, or in other words connect the prospect behavior and marketing programs, you need to be able to connect an initial prospect to the final sale. In the existing model this is very complicated because the interaction data is captured across three different organizations and three or more systems.. 1 1 1 Data Islands 2 Inconsistent Branding While corporate marketers and agencies can do a great job developing compelling story lines and branding it can be exceedingly difficult to push it down the line through the channels. Not only is there a people / communication issue as you cross organizational lines, but at times the motivations of distributors and agents may not be in line with marketing at the suppliers. Lead Handoffs Necessarily, in this structure leads must be passed off between the organizations. This has many implications, but one is that it certainly extends the customer life cycle. 3 3 4 Competition And finally, at times not only can the channel members duplicate their efforts, sometimes they can even be competing with one another like with search.
    9. 9. PROBLEMS QUALIFYING THE INABILITY TO CLOSE THE LOOP INHIBITS THE ABILITY TO TRULY QUALIFY LEADS Marketing Fulfillment Local Search Limited Print Brand Traditional 180 ° Carriers / Suppliers 90 ° Distributor 90 ° Agent Data Islands + Multiple Handoffs = Big Problem The inability to relate activity to financial results, and correspondingly the ability to score, results in poor leads being injected into and then passed through the channels. In turn, the cycle of poor leads results in slower responsiveness which further lengthens the already long process and ultimately lead decay.
    10. 10. NET EFFECT DECLINING MARGINS WE ARE SPENDING MORE TO MAKE LESS (OR SOMETIMES THE SAME) Awareness Interest Desire Acquisition Revenue Expenses Profit
    11. 11. TRUST FACTOR BUILDING TRUST AND LOYALTY IN THE CHANNEL IS A CHALLENGE
    12. 12. REDUCE HANDOFF LAG … BY AUTOMATING OR ELIMINATING STEPS IN THE PROCESS Shorten the cycle… … . with technology
    13. 13. SQUEEZING PARTNER MARGINS SUPPLIERS BEGIN TO OFFER MORE SERVICES AND PASS ON THE COST Local Search Limited Print Carriers / Suppliers 90 ° Distributor Marketing Fulfillment One approach some suppliers are taking is to beef up their co-op marketing offerings in part to eliminate the need of like services at the distributor level. Of course, in so doing they will also push the cost to the distributor in the form of lower margins. Channel Demand Creation Source: SeriusDecisions Best-in-class suppliers are also leveraging their channel to create demand, with the majority of their channel incentives being applied towards PARTNER-TO-CUSTOMER demand creation programs. 35% Supplier to Partner 54% Partner to Customer 11% Supplier to Customer
    14. 14. ONE BRAND’S JOURNEY
    15. 15. THE VISION: ALIGN THE CHANNEL FOR HI-IMPACT PROSPECTING & ROI Local is the new National Consumers expect messaging, offers and customer service that is relevent to their life They don’t care about the dynamics of the distributed organization To them it’s all the same brand
    16. 16. KEY COMPONENTS TO PAYING OFF LOCAL PROSPECTING VISION
    17. 17. REAL-WORLD ACTIVATION <ul><li>OUR EXPERIENCE BRINGING THE SOLUTION TO LIFE </li></ul>
    18. 18. BRINGING THE SOLUTION TO LIFE: THE CLIENT PROBLEM <ul><li>The client problem: </li></ul><ul><li>Weaknesses </li></ul><ul><li>National campaigns were not activated locally and there was an overall lack of field participation in local marketing efforts </li></ul><ul><li>Local Web sites were all over the board and didn’t support brand – local sites couldn’t track leads or conversion </li></ul><ul><li>ROI reporting wasn’t available </li></ul><ul><li>Customer marketing data was decentralized and in a variety of formats </li></ul><ul><li>Limited “variable data” marketing / no use of segmentation data for targeting </li></ul>NATIONAL Driven by the corporate office LOCAL Driven by local affiliates Customers and Prospects <ul><li>Strengths </li></ul><ul><li>National branding campaigns were solid </li></ul><ul><li>Current digital efforts covered the basics well (Web, E-mail, search, display, etc.) </li></ul><ul><li>Centralized campaigns for traditional media were also effective (broadcast, direct mail, print, etc.) </li></ul><ul><li>The network of sales managers, players in the distribution channel and even top producers were engaged </li></ul>
    19. 19. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES <ul><li>Our objective involved a series of from-to scenarios: </li></ul>National DB Field Rep 1 DB Field Rep 2 DB Field Rep 3 DB campaign campaign coordinated campaigns with targeted messaging Field Assignment FROM … TO… <ul><li>Separate campaigns </li></ul><ul><li>Multiple DBs / multiple formats </li></ul><ul><li>Random (uninformed) messaging </li></ul><ul><li>Coordinated campaigns </li></ul><ul><li>Unified data structure </li></ul><ul><li>Targeted (informed) messaging </li></ul>Field …n DB Field Rep 3 DB Field Rep 2 DB Field Rep 1 DB National DB
    20. 20. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES <ul><li>Our objective involved a series of from-to scenarios: </li></ul>FROM … TO… <ul><li>Confusing Web experience </li></ul><ul><li>Poor trackability </li></ul><ul><li>Competing online marketing </li></ul><ul><li>Coordinated Web experience </li></ul><ul><li>Sophisticated tracking </li></ul><ul><li>Optimized marketing spend </li></ul>
    21. 21. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES <ul><li>Our objective involved a series of from-to scenarios: </li></ul>FROM … TO… <ul><li>Customization/localization (local toolkit) </li></ul><ul><li>Strengthen co-op community and dialogue </li></ul><ul><li>Pull through, measure usage, on demand shipping </li></ul><ul><li>Bottom-up local co-op marketing plans </li></ul><ul><li>Shared learning/best practices </li></ul><ul><li>One size fits all </li></ul><ul><li>Weak coop community and little dialogue </li></ul><ul><li>Push all materials to all field reps </li></ul><ul><li>No local marketing plans </li></ul><ul><li>No visibility into best practices (distrust) </li></ul>
    22. 22. BRINGING THE SOLUTION TO LIFE: AN INTEGRATED APPROACH <ul><li>Our integrated and localized solution: </li></ul><ul><li>Data driven marketing </li></ul><ul><li>Localized content </li></ul><ul><li>Consumer attributes </li></ul><ul><li>Past behavior </li></ul><ul><li>Products purchased </li></ul><ul><li>Predictive modeling </li></ul><ul><li>Tracking & optimization </li></ul><ul><li>Ad performance </li></ul><ul><li>Call logging </li></ul><ul><li>Prospect tracking </li></ul><ul><li>Conversions </li></ul><ul><li>Iterative adjustments </li></ul>
    23. 23. BRINGING THE SOLUTION TO LIFE: THE RESULTS <ul><li>Program results: </li></ul><ul><ul><li>Improved field rep flexibility, campaign tracking, and participation in local marketing </li></ul></ul><ul><ul><ul><li>Customized marketing packages </li></ul></ul></ul><ul><ul><ul><li>Template-driven Web sites with local content </li></ul></ul></ul><ul><ul><ul><li>One-on-one market planning </li></ul></ul></ul><ul><ul><li>Improved consumer experience due to marketing consistency and higher messaging relevency </li></ul></ul><ul><ul><li>Increased efficiency of a coordinated marketing spend (national, coop, local) </li></ul></ul><ul><ul><ul><li>Reduced search overlap </li></ul></ul></ul><ul><ul><ul><li>Targeted display media </li></ul></ul></ul><ul><ul><li>Identification of opportunity areas for improvement </li></ul></ul><ul><ul><ul><li>Answer the call and follow-up promptly </li></ul></ul></ul><ul><ul><ul><li>Be available to close the deal </li></ul></ul></ul><ul><ul><li>And most importaly, higher conversion rates </li></ul></ul>12% initial lift
    24. 24. SUCCESS FACTORS TO PAYING OF THE VISION <ul><ul><li>Listening to needs from both sides (corporate and the field) </li></ul></ul><ul><ul><li>Solidifying the consistency of the consumer experience </li></ul></ul><ul><ul><li>Taking the time to develop an integrated multi-channel marketing plan and communication architecture </li></ul></ul><ul><ul><li>Investing in the data, systems, and technology required </li></ul></ul><ul><ul><li>Placing a priority on the need to track conversion results (for both phone and online) and to then optimize the media accordingly </li></ul></ul><ul><ul><li>Delivering on the promise of customized messaging where possible </li></ul></ul><ul><ul><li>Working with the field one-on-one in the planning, implementation, monitoring, and evolution of localized campaigns </li></ul></ul>
    25. 25. THANK YOU! <ul><li>Marcus R. Tewksbury </li></ul><ul><li>Director of Customer Intelligence </li></ul><ul><li>Alterian </li></ul><ul><li>Email: tewksbum @alterian.com </li></ul><ul><li>IM: [email_address] </li></ul><ul><li>Twitter: @tewksbum </li></ul><ul><li>John South </li></ul><ul><li>Chief Digital Officer </li></ul><ul><li>Razor </li></ul><ul><li>Email: John.South @razordriven.com </li></ul>

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