Making the Most of Multi-Channel Strategies


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Making the Most of Multi-Channel Strategies

  1. 1. How to Get the Best Sales & Marketing to Work for You! Making the Most of Multi- Channel Strategies Frost & Sullivan Sales & Marketing Executive Summit East 2006 Boston Marriott Quincy
  2. 2. Agenda • Marketing to a New Type of Consumer • Trends & Challenges in Multi-Channel Marketing • NetBank Case Study • Recommendations for Integrating Online & Offline Channels • Questions & Answers
  3. 3. Marketing to a New Type of Consumer • Since 1997, traditional marketing mediums like TV, newspapers & magazine reading has declined 13%. – Internet usage increased 214% since 1997 • Internet veterans spent 10 more hours online compared to new Internet users – 84 percent of these extra online hours were spent on professional and personal work. • 20 million wireless consumers evaluate carriers or manage their wireless accounts online • 75 percent of auto buyers research their choices online • 60 million consumers researched a financial product or managed an account online last year.
  4. 4. Marketing to a New Type of Consumer • The Internet has liberated a new type of consumer – Technologically savvy – Know their value to marketers – Looking to own a piece of the action – They love to control and not to be controlled • Online shopping is forcing companies to re-think their marketing, sales, service and business practices • Two-way permission based marketing is the only strategy to reach the new consumer
  5. 5. Trends & Challenges in Multi- Channel Marketing • Online sales are expected to rise to 329 billion by 2010 • More retailers are offering consistent price on the Web and in stores – Integrating on and offline channels is still elusive for many • Marketers and retailers are failing to understand consumers cross- channel behaviors – “Channel Vision” – “Stove piped” and Fragmented • Price is a big motivator for the online shopper – But price & product alone does not create a sustainable competitive advantage
  6. 6. Trends & Challenges in Multi- Channel Marketing • Marketing in the Clutter – Irrelevant and non-persuasive messaging • Catering to regional consumer wants – Regionalized pricing, inventory management and competitive pressure is the main reason why there is a disconnect between the Web & offline experience • Catalogs have lost some ground as the principal marketing tool – Consumers use catalogs for shopping not necessarily for buying • Lack of understanding consumer purchasing behavior • Lack of a true 360 degree view of the consumer
  7. 7. About NetBank Retail Banking Small Business Banking Business Finance Dealer Financial Services NetBank Payment Systems NetServ QuickPost PowerPost NetBank Funding Services Meritage Mortgage Market Street Mortgage Beacon Credit Services Banking Financial Intermediary Transaction Processing
  8. 8. The Retail Banking Landscape • Sluggish deposit growth impacted by an inverted yield curve • Organic customer growth • Growing acceptance and higher expectations of online banking capabilities • Data security and ID theft issues creating customer cynicism • Irrational money market deposit rates
  9. 9. NetBank’s Response to a Challenging Landscape • Focused value proposition • Brand differentiation • Expanded website and online capabilities – Alerts and notifications • Inbound Marketing Initiative • Improved customer service – Comparative Differentiator
  10. 10. NetBank’s Response to a Challenging Landscape Customers CAGR% X-Sell CAGR % Base-Line 270,428 – 1.75 – Grow Customers w/o X-Sell Growth 1,142,857 27% 1.75 0% Grow X-Sell w/o Customer Growth 270,427 0% 7.42 27% Do Both 500,000 11% 4.00 15% Solving for NIBT in Evolutionary Financial Framework
  11. 11. Develop tactics to close the expected-vs.-actual gap (incorporate VOC and benchmarking) 1a. Review SLAs with hosting vendor 1b. Minimize size of graphics to speed page loads Determine actual customer experience Determine critical customer touch points (aka, “Moments of Truth”) from customer’s viewpoint “Interest Me” “Meet My Initial Need” “Keep Meeting My Needs” Develop reward & recognition for achieving or exceeding expected customer experience Develop appropriate set of rewards and recognition (for example: HERO)5 4 3 2 1 1a. Website available = x% 1b. Website satisfaction = y 2. Recognition factor = z 1a. Website available > 99.99% 1b. Website satisfaction > 4.5 2. Recognition factor > x 1. Marketing web site 2. Advertisements Crafting the Customer Experience: Customer Experience or Value Stream Mapping Example Document Expected Customer experience (incorporate VOC and benchmarking) Sales Fulfillment Service Process 1. Apply by phone 2. Apply by website 3. Get notification of decision 4. Close financial transaction 1. Account issue raise by phone or email 2. Complain by web mail 3. Receive solution to complaint 4. Hear about other products 5. Take part in surveys 1a. Average hold time < 2 min 1b. Application time < 10 min 2a. Website available > 99.99% 2b. Application time < 15 min 1a. Average hold time < 2 min 1b. 1st time resolution > 95%
  12. 12. Inbound Marketing Strategy Relevant : 5X Better Number of Customer Interactions Time Event-Triggered Outbound Campaigns Guided Inbound Intrusive: 1-2% Highly Targeted: 10X Better
  13. 13. Inbound Marketing Strategy • Evaluated data • Determined best method for interacting with the customer • Evaluated our sales/marketing approach • Developed a plan • Implemented a phased plan • Monitor activity and tweaked
  14. 14. Inbound Marketing Strategy • Customer segmentation – Segments based on age (7), balance (56), tenure (2), product combinations (24), transactional data (6) – Created customer value index – Further refining data with demographic appends • Multi-product relationships are more profitable and have lower attrition (4x less) • Transaction-based relationships offer better cross-sell potential • Direct sales offer highest rate of closure
  15. 15. Inbound Marketing Strategy Call Center Channel • Inbound calls – Turn service calls into sales opportunities – Guided closings based on: • Offers already made • New offers available • Outbound Calls – Event-based calls – Integrated with other campaigns
  16. 16. Inbound Marketing Strategy Call Center Channel Results • New customer boarding (Q2 results) • 43.6% conversion rate for new products sold • Increased products/household from 2.11 to 2.55 • 10% conversion rate -- unfunded accounts to funded
  17. 17. Inbound Marketing Strategy Outbound Email Channel • Focused on branding, clear and concise messages • Promotions, surveys, newsletters and notifications • Targeted campaigns based on analysis of customer data – more campaigns to smaller groups • Integrated with call center activities
  18. 18. Inbound Marketing Strategy Outbound Email Channel Results • Average 107% increase in volume since 1/1/05 • NetConnect Intro campaigns – Avg. 55% read rate – Avg. 48% fulfillment rate • Other campaigns – Avg. 45%-50% read rate – Avg. 5% fulfillment rate
  19. 19. Inbound Marketing Strategy Secure Bank Mail Channel • Variety of banner ads on secure bank site • Current configuration displays based on customer profile (product profile) • In process of moving to arbitration model
  20. 20. Inbound Marketing Strategy
  21. 21. Inbound Marketing Strategy Next Steps • Phase II implementation – IVR, ATM and Direct Sales • Additional data appends • More analysis and refinement of offers • Tighter integration of offers across all channels • Continue to expand creative library and personalized campaigns
  22. 22. Recommendations for Integrating Online & Offline Channels • Recognize that your customers are your scarcest resources – Engage your customer and be honest about your offerings • Develop a strategy around your data – Integrate Customer Data Integration (CDI) & Master Data Management (MDM) as part of your holistic CRM & SFA strategy – Must have a single version of the truth concerning the consumer • Develop a true 360 degree view of your consumers and integrate disparate transactional systems • Invest in change management and knowledge sharing
  23. 23. Recommendations for Integrating Online & Offline Channels • Integrate business processes across your enterprise • Align Marketing & Call Center Operations – Strategy Articulation & Value Stream Mapping – Consistent communications – Inbound marketing programs • Add incremental value to your customer that goes beyond price & product – What is your “comparative” differentiator? • Break down the silos within your organization
  24. 24. Recommendations for Integrating Online & Offline Channels • Track & understand online customer behavior using Web analytic tools – Track visitor segmentation to understand how prospects/visitors behave differently from the overall target audience – Interact with personas, their needs, and motivations, and uncover new selling opportunities. • Allow customers to collaborate on your brand – Example: Ban & ABSOLUT – Blogs and Search Engine Marketing (SEM)
  25. 25. Recommendations for Integrating Online & Offline Channels • Focus on the “emotive” side of the consumer experience – Focus on an in-depth understanding of what the consumer values most not just “operationalizing” the consumer experience • Implement personalized and relevant messaging across all channels
  26. 26. Questions & Answers Art Hall VP, Sales & Customer Care Operations, NetBank President, CRM Association (CRMA), Atlanta Chapter 1015 Windward Ridge Parkway Alpharetta, Georgia 30005 Phone: (678) 942-7537