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American Marketing Association
Multichannel Marketing
Strategy
AMA Workshop
March 2013
2American Marketing Association
What You Told Me
Source: Pre-session responses from MCM workshop participants
“Our	
  MCM	
  is	
  ad	
  hoc,	
  inconsistent	
  
and	
  reac2ve.	
  We	
  don’t	
  have	
  a	
  
strategy	
  in	
  place.”	
  
“	
  
“	
  
“	
  
“We	
  don’t	
  have	
  a	
  strong,	
  strategic	
  
mindset	
  about	
  our	
  brand	
  or	
  how	
  
it’s	
  marketed	
  in-­‐channel.”	
  
“We	
  don’t	
  have	
  a	
  marke2ng	
  
culture	
  here.	
  Our	
  execs	
  don’t	
  
understand	
  it,	
  support	
  it,	
  or	
  
budget	
  for	
  it	
  well.	
  So	
  our	
  MCM	
  
suffers.”	
  
“Our	
  MCM	
  is	
  now	
  burgeoning.	
  	
  
We	
  need	
  to	
  be	
  coordinated	
  and	
  
strategic.”	
  
“I	
  want	
  to	
  become	
  a	
  resourceful	
  
partner	
  for	
  all	
  	
  sales	
  channels	
  
here.	
  Our	
  MCM	
  is	
  cluGered,	
  
unfocused,	
  and	
  incomplete	
  at	
  
the	
  moment.”	
  
3American Marketing Association
Learning Modules
We’ll toggle around during our two days together
Principles Insights Strategy Cases Reflection
4American Marketing Association
ARCHITECTING MCM STRATEGIES (90 mins)
•  Case studies
•  Workbook exercise/reflection
BUILDING A ‘MOCK’ MCM STRATEGY (90 mins)
•  Background/assignment
•  Sub-group breakouts
•  Group discussion
Break (15 mins)
APPLYING MCM PRINCIPLES (45 mins)
•  Workbook exercise/reflection
•  Peer review
Workshop Schedule
INTRODUCTION (15 mins)
•  Curriculum Review
CONTEXTUAL FOUNDATION (90 mins)
•  Foundational principles
•  Aligning business, brand, channel strategy
•  Planning tools & frameworks
Break (15 mins)
MCM STRATEGY (90 mins)
•  What it means
•  Planning tools & frameworks
•  Success factors & imperatives
Morning
8:30am–12:00pm
Afternoon
1:00pm–5:00pm
Day 2Day 1
EVALUATING MCM STRATEGY/2 (90 mins)
•  Group review/discussion
•  Workbook exercise/reflection
•  Peer review
Break (15 mins)
ORGANIZATIONAL READINESS (90 mins)
•  Operationalizing MCM principles
•  Success factors
•  Workbook exercises/reflection
CLOSE (30 mins)
•  Final thoughts/course survey
WELCOME BACK (30 mins)
•  Recap key learnings/Day 1
MEASURING CHANNEL IMPACT (90 mins)
•  Cross-channel quantification
•  Attribution principles
•  ROI tools
Break (15 mins)
EVALUATING MCM STRATEGY/1 (60 mins)
•  Mock strategy development
•  Sub-group breakouts
5American Marketing Association
Funny, but true
In this section we will cover Strategic Development:
•  Fundamentals of strategy
•  Aligning Business, Brand, Channel strategies
•  Planning Frameworks
American Marketing Association
Strategic Development
Background > Fundamentals
7American Marketing Association
Insight
“Nobody really knows
what strategy is.”
The Economist
8American Marketing Association
Insight
“Most of us are afraid of
strategy…Strategy is scary
because it describes results, not
actions, and that means
opportunity for failure.”
Seth Godin
9American Marketing Association
Why do we need a strategy?
" Without a strategy, we fill our time with:
•  What we want.
•  What we think the boss wants.
•  By reacting.
" Without a strategy, time and resources can easily be wasted on piecemeal,
extraneous activities.
•  “If you don’t know where you’re going . . . any road will get you there.”
- Lewis Carroll
“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
10American Marketing Association
“Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4
Strategic Development Process
Strategic Analysis
§ Industry Analysis
§ Customer/marketplace trends
§ Customer lifestage/lifestyle needs, wants
§ Customer activity cycle
§ Environment forecast
§ Competitor analysis
§ Assessment of internal strengths,
weaknesses, resources, culture
Mission
§ Fundamental
purpose
§ Values
§ Vision
Objectives
§ Specific targets,
short & long term
Strategy
The central integrated,
externally oriented concept
of how we will
achieve our objectives
Organizational
Imperatives
§ Structure
§ Process
§ Symbols
§ Rewards
§ People
§ Activities
§ Policies
It’s not the
sequence.
It’s about
robustness of the
whole.
11American Marketing Association
Five Elements of Strategy
Arenas
Staging
Differentiators
VehiclesEconomic Logic
“Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4
12American Marketing Association
System of Choices
Economic Logic
Arenas
Staging
Differentiators
Vehicles
Where will we be active?
How will we get there?
How will we win in the market place?
What will be our speed
and sequence of moves?
How will we obtain our returns?
“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
13American Marketing Association
Five Elements of Strategy
Arenas: Where we are active
" Which product categories ?
" Which market segments ?
" Which geographic areas ?
" Which marketing channels?
" Which core technologies ?
" Which value-creating stages ?
" With how much emphasis ?
“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
1
14American Marketing Association
Five Elements of Strategy
Vehicles: How we get there
The means for attaining the needed presence
in the identified arenas.
" Internal development?
" Joint ventures / alliances ?
" Licensing / franchising ?
" Acquisitions ?
“Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4
2
15American Marketing Association
Five Elements of Strategy
Differentiators: How we win
The reasons that customers will choose us.
" Image ?
" Customization ?
" Price ?
" Styling ?
" Product reliability ?
" Anything else ?
“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
3
16American Marketing Association
Five Elements of Strategy
Staging: What will be our speed & sequence of moves?
" Driven by availability of resources, urgency, need for credibility and
need for early wins
" Speed of expansion ?
" Sequence of initiatives ?
“Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
4
17American Marketing Association
Five Elements of Strategy
Economic Logic: How we obtain our returns
How profits will be generated.
" What generates cash ?
" What decides your margins ?
" What generates market share growth ?
" How fast do sales turn into cash ?
" What numbers / ratios tell us we’re successful ?
" What are our underlying core capabilities ?
" Lowest costs through scale advantages ?
" Lowest costs through scope and replication advantages ?
" Premium prices due to unmatchable service ?
" Premium prices due to proprietary features ?
“Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4
5
18American Marketing Association
Strategic Evaluation
§  Does your strategy exploit your key resources & capabilities?
With your particular mix of resources, does this strategy give you a good head start on
competitors? Can you pursue this strategy more economically than competitors?
§  Will your envisioned differentiation be sustainable?
Will competitors have difficulty matching you? If not, does your strategy explicitly include a
relentless regimen of innovation & opportunity creation?
§  Are the elements of your strategy internally consistent?
Have you made choices of arenas, vehicles, differentiators, staging, and economic logic? Do they
all fit and mutually reinforce each other?
§  Is your strategy implementable?
Will your key constituencies allow you to pursue this strategy? Can your organization make it
through the transition? Are you & your management team able & willing to lead the changes?
§  Do you have enough resources to pursue this strategy?
Do you have the money, managerial time & talent, & other capabilities to do all you envision? Are
you sure you’re not spreading your resources too thinly?
19American Marketing Association
Aligning Strategy: Building Blocks
CONTEXT
CUSTOMERS
COLLABORATORS
COMPANY
COMPETITORS
20American Marketing Association
CUSTOMERS
. . . that customers
want . . .
COLLABORATORS
. . . and who wants to
help us do it?
COMPETITORS
. . . better than
others . . .
COMPANY
. . . that we
can do . . .
CONTEXT
What things are
possible . . .
What
business
are we in?
Aligning Strategy: Building Blocks
21American Marketing Association
CUSTOMERS
. . . that customers want . . .
COLLABORATORS
. . . and who wants to help
us do it?
COMPETITORS
. . . better than
others . . .
COMPANY
. . . that we
can do . . .
What business
are we in?
How do we
capture share?
Identify
TARGET
MARKET
CONTEXT
What things are possible . . .
POSITION to
DIFFERENTIATE
from others
Aligning Strategy: Building Blocks
Design
CHANNEL
MARKETING
Strategy
22American Marketing Association
Strategic Alignment: Waterfall
" What?
•  Market Opportunity
" Who?
•  Segmentation/Targeting
" Why?
•  Brand Positioning
" Where?
•  Customer Journey
" Which?
•  Channel Architecture
" How?
•  Content/Experience
Source: CMO.com, 2012 survey
American Marketing Association
Planning Frameworks
Business > Brand > Channel
24American Marketing Association
Strategic Development
" Framework #1: Market Opportunity
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Our Market Opportunity
Us Customer
Competitors
26American Marketing Association
Our
Vulnerabilities
Tablestakes
Our Points of
Parity
• 
• 
• 
• 
Customer Wants
& Needs
• 
• 
• 
• 
• 
• 
• 
Our Competitive
Disadvantages
• 
• 
• 
• 
• 
• 
• 
Customer
Needs
Our Company
Strengths
Competitor
Strengths
Our Competitive
Advantages
• 
• 
• 
• 
• 
• 
• 
Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles
Identifying Our Market Opportunity
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Our
Vulnerabilities
Tablestakes
Our Points of
Parity
•  Range of
cardiovascular
equipment
•  Convenient Hours
Customer
Wants &
Needs
•  Affordable
•  Make friends/
socialize
•  Family
activities
•  Member of
community
Our Competitive
Disadvantages
•  Newer facilities
•  Cleaner
•  More locations
•  Singles friendly
•  Special features
•  Unique features
(spa, etc.)
Customer
Needs
Our Company
Strengths
Competitor
Strengths
Our Competitive
Advantages
•  Family focused
•  On-site child care
•  Affordable
•  Activities for all
ages
•  Range of fitness
programs
•  Family swim
pool
•  Unique offerings
(swim lessons,
etc.)
•  Camp Eberhart
Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles
Identifying Market Opportunity: YMCA
28American Marketing Association
Our
Vulnerabilities
Tablestakes
Our Points of
Parity
•  Selection satisfies
requirements
•  Time/cost efficient
•  Geographic
proximity
Customer Wants
& Needs
•  Minimize effort
•  Easy in/out
•  Find what I
needed
•  Good quality
•  Convenient
location
•  Not
overwhelmed
Our Competitive
Disadvantages
•  Inventory
breadth/depth
•  Lower prices
•  Easy returns
Customer
Needs
Our Company
Strengths
Competitor
Strengths
Our Competitive
Advantages
•  Knowledgeable
assistance
•  Friendly/
approachable
•  Feel valued,
empowered (not
overwhelmed)
Identifying Market Opportunity: ACE
American Marketing Association
Planning Frameworks
Business > Brand > Channel
30American Marketing Association
Understanding Brands
Brand as Primary Source of Business Value
31American Marketing Association
Brand v. Product/Service
" Products/Services
•  Have functional value
•  Can be copied by competitors
•  Can become outdated
Brands
•  Have functional and emotional value
•  Are unique and proprietary
•  Are timeless
•  Exist in customers’ minds
$1 $4
32American Marketing Association
A Jingle
A Spokesperson
A SymbolAn Ad A Logo
A Slogan A Name
Brand is not:
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" A promise.
" A company’s most strategic asset.
" The reflection of a customer’s entire experience with a company.
" Built and protected by entire organization, not just the marketing department.
Brand is:
34American Marketing Association
Source: Interbrand, Brand Values 2011
Powerful brands create Economic Value
•  1% increase in customer
satisfaction leads to a 3%
increase in market cap.
•  2% increase in customer
loyalty leads to a 10%
cost reduction.
•  5% increase in customer
retention increases
customer lifetime value
by 25%.
•  5% increase in customer
loyalty can result in up to
a 95% increase in
profitability.
•  50% of customers will
pay 20–25% more for
brands they are loyal to.
Sources: Brandkey, Bain and Mainspring,
Marketing News
35American Marketing Association
Brand as Business Core
R&D
Executive Team
& Business
Units
Information
Technology
Business
Strategy
Marketing &
Sales
Operations &
Finance
Brand
Strategy
36American Marketing Association
Brand Strategy
Brand Strategy
Brand Strategy
Business
Strategy
Products/
Services
Rational Dimensions
Physical Attributes
Emotional Dimensions
Subjective Associations
37American Marketing Association
Brand Strategy
Brand Strategy
Brand Strategy
Business
Strategy
Products/
Services
Rational Dimensions
Physical Attributes
Emotional Dimensions
Subjective Associations
38American Marketing Association
Brand Strength
Strong Brands
•  Make clear, meaningful promises.
•  Built with compelling (rational and
emotional) equities.
•  High relevance in customer lives.
•  Consistently delivers.
•  Instills confidence.
•  Clearly differentiated on key
dimensions.
•  High loyalty.
Weak Brands
•  Make vague promises.
•  Built with general (and low emotional
commitment) equities.
•  Low relevance in customer lives.
•  Inconsistent.
•  Creates doubt.
•  Undifferentiated.
•  Low loyalty (rely on pricing/
promotional incentives).
39American Marketing Association
Strong Brands
•  P&L
•  Functional attributes
•  Building volume
•  Commodity price war
•  Selling
•  Expense mindset
Focus: Inside > Out
•  Customer
•  Daily life context/moments
•  Building loyalty
•  Price realization
•  Consuming
•  Investment mindset
Outside > In
FROM TO
Brand as Strategic North Star
•  Drives long term competitive advantage
•  Needs to be owned by top management
•  Requires systemic thinking/branding tools
Brand as Tactical Tool
•  Drives short term results only
•  Owned by MarCom
40American Marketing Association
Strategic Development
" Framework #2: Brand Strategy System
41American Marketing Association
Enduring Customer Advantage
Extended
Identity
Core
Identity
Brand
Essence
Brand Positioning
Brand Customer Relationship
Integrated Channel Toupoints
(Context and Content)
Brand Strategy System: Multi-Dimensional
Brand Power
Brand Equity: the set of brand associations in the
minds/hearts of customers.
Brand Power: how levels of brand equity link to
distinctive functional attributes and emotional benefits.
Brand Customer Relationship: role the brand plays in
the customer’s life.
Brand Equity
Brand Positioning: aspect of brand equity that is
actively communicated to target audience.
Integrated Channel Touchpoints: activities that
engage customers where they are with relevant content.
42American Marketing Association
Perform at
Your Peak
Gatorade Brand Equity
Brand as Person
Athletic
Brand as
Symbol
Brand as Organization
Leadership
through innovation
CredibleBrand-customer relationship: The Expert
Peak performance
•  Innovative hydration for athletes
•  Provides Endurance
•  “Born in the Lab, Proven on the Field”
Fight to win:
•  “Is it in you”
•  Don’t quit, perseverance
•  “Go Fierce, or Go Home”
Emotion:
•  The thrill of triumphing
•  The satisfaction of not quitting
Extended
Identity
Core
Identity
Brand
Essence
Brand as
Product
Determined
Tough
43American Marketing Association
Strategic Development
" Framework #3: Brand Power
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Brand Power: Transfers Up
Functional
Attributes
Functional
Benefits
Brand-
Consumer
Relationship
Emotional
Benefits
Self-
Expressive
Benefit
Features
Rational Advantages
Human Needs
Emotional
Advantages
Self
Actualized
give me…
Which meet…
and allows me…
so I am…
Frame of Reference
45American Marketing Association
Brand Power: Gatorade
Functional
Attributes
Functional
Benefits
Brand-
Consumer
Relationship
Emotional
Benefits
Self-
Expressive
Benefit
Electrolytes
Hydration
Acts as my
coach
Perform at my
peak
A winner
give me…
which…
and allows me to…
so I am…
Performance
46American Marketing Association
Brand Relationship
§  Advisor
§  Buddy
§  Enabler
§  Friend
§  Fun companion
§  Mentor
§  Mother
Companies Brand-Customer Relationship
47American Marketing Association
Strategic Development
" Framework #4: Brand Positioning
48American Marketing Association
Positioning for Advantage
Positioning refers to the essence that is overtly
communicated to stakeholders. It represents the
total of what a person or group of people think and
know about the company and its brands.
A unique position establishes a sustainable
customer advantage AND a corporate focus.
.
49American Marketing Association
Positioning Opportunities
" Define a target that is based on rich, emotional insights rather than pure
demographics.
" Move beyond industry and category terminology to select a frame of reference that
captures the full range of consumer choice.
" Communicate brand benefit(s) in a way that is relevant and engaging to
stakeholders.
" Move away from reasons to believe that are technical or less relevant to
customers and find support points that are believable and compelling.
" Think about how channel strategy can reinforce/dimensionalize brand positioning.
50American Marketing Association
A positioning is: A positioning is NOT:
•  A vision or mission statement.
•  A business strategy.
•  An advertising slogan or tag line.
•  A description of a product or
service offering.
•  A defined and differentiated
perceptual space relevant to key
stakeholders.
•  A compelling description of the
strategic intent, personality and
competencies of the organization/
product/service.
•  A unifying, overarching idea that
drives all execution (e.g.,
messaging, channel tactics,
customer service).
What is a Positioning Statement?
51American Marketing Association
Positioning Best Practices
Brand Positions should be:
• Meaningful and compelling to target audience.
• Emotionally grounded.
• Relevant in the context of customers’ daily lives.
• Able to deliver against promise.
• Differentiated.
• Consistent and clear.
• Actionable in market/channel.
52American Marketing Association
Positioning Statement
To <target audience>, [BRAND] is the <frame of reference> that
<core promise> because <reasons to believe>.
The primary group with which
the brand wants to
communicate.
The relevant set of
substitutable products.
The primary relevant and
compelling benefit delivered
by the brand to its target
audience.
The proof or reasons to
believe the brand delivers the
benefit to the target.
53American Marketing Association
How powerful is this Positioning Statement?
For children ages 6-12, Lego is the toy that offers them the
greatest degree of flexibility because Lego is the most trusted
toy brand.
Comments Comments
Comments Comments
54American Marketing Association
Lego Positioning Statement: Reimagined
For children with imagination, Lego is the recreational activity
that offers them the power to create endless play experiences
limited only by their own imagination because Lego provides a
full range of building components that can be used to assemble
infinite combinations.
is held together by a
common insight – that they have
imagination.
is broad
enough to capture products (or
even services) beyond just toys
that could be used to stimulate the
imagination.
is insight based
benefit, not feature based. It’s not
that the products offer flexibility,
it’s that they create experiences.
is aligned with
the core promise and is relevant to
consumers.
55American Marketing Association
Strategic Development
" Framework #5: Segmentation & Targeting
56American Marketing Association
Segmentation and Profiling
" Understanding the customer(s)
•  What are the discrete segments?
•  How do they move through category decision process?
•  Who do they listen to?
•  Where do they get their information?
•  What are their channel interaction patterns?
•  What do you want them to think, feel, believe?
•  What evidence are you going to give them for their rational beliefs?
•  What do they need to know about for their emotional beliefs?
57American Marketing Association
Current
Customers
Competitor
Customers
(Prospects)
Category
Non-Users
Lapsed Customers
Segment Priority
Size & Volume Potential
Decision Criteria or
Motivators
Usage Behavior
Decision Process
Barriers/Concerns
Information Sources &
Influences
Brand Importance
Channel preferences
Satisfaction requirements
Customer Targeting Matrix
Note: Adjust cells to suit category and brand
American Marketing Association
Planning Strategy
Business > Brand > Channel
59American Marketing Association
Clever but True
60American Marketing Association
Old Model
" Channel strategies used to be relatively simple.
•  Messaging occurred through traditional, 1-way communication channels (e.g., TV/print/
radio/OOH advertising, in-store collateral, events).
•  Products distributed through brick & mortar/catalog channels.
" Prospects engaged and moved through funnel in predictable, linear stages.
•  People generally started at the same point (i.e., similar level of knowledge) and
methodically guided through process.
•  Company controlled brand, message, conversation, buying process
61American Marketing Association
Today’s On-Demand Culture
" Consumers are increasingly empowered and demanding
•  People no longer passively accept/trust information provided by marketers.
•  People no longer let brand owners, retailers, communication channels dictate agenda.
" Marketing now more complex due to (customer) ‘accommodation’ mandate.
•  Technology changing customer access, purchase process, success factors
62American Marketing Association
Internal
Stakeholders
Earned
Content
Owned
Content
Paid
Content
Channel
Transactions
Direct
Sales
CRM
Customer
Service
Multichannel
Marketing
Strategy
Ecosystem of Accommodation
Communications
Selling
Customer Support
63American Marketing Association
Era of Customer Accommodation: Success Factors
" Calibrate comprehensive channel mechanisms based on customer
interaction preferences/patterns.
•  Communications (content, lead generation/qualification).
•  Sales (transactional access, fulfillment)
•  Support (pre-/ post-purchase service).
" Understand customers and their journey to design idealized purchase process and
usage experience.
•  Defines how/when/where to “touch” customers for optimal access, relevance, impact.
•  Determines channel choice, prioritization, and investment.
" Enroll and equip the organization to succeed in a multichannel universe.
•  Marketing Department leads multichannel development process.
•  Enterprise-wide delivery across touchpoints (i.e., areas beyond control of Marketing Department).
64American Marketing Association
Communications: New Landscape
" Customers control conversation about companies, brands, products.
•  Blogs, posts from peers exert significant influence (across all life stages, most industries).
" Marketers now need to prioritize 3 distinct types of information channels to
accommodate customers
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Communications: New Landscape
" Digital Technology has granted customers
unprecedented access to information,
products, transactional utility.
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Mobile as Emerging Powerhouse
" Mobile channel in particular is soaring: some marketers now think mobile
‘first’ (i.e., lead channel)
Source: Nielsen Mobile Insights 2012
67American Marketing Association
Poster Child: Online, Offline, On-the-Go
" Walgreens embraces multichannel philosophy.
•  Paid and earned media presence.
•  Owned mobile content (text alerts, coupons, smart phone apps).
•  Web support (live pharmacist chats, e-commerce).
•  In-store service (drive-thru, wellness clinics).
•  Integrated data & mining drives personalized messaging/offers, contact frequency, ROI.
Walgreens Powers Multi-Touch Strategy
“… it’s imperative that customers can conveniently access Walgreens
in any form, when and where they want to.”
-- David Lonczak
Walgreens VP
American Marketing Association
Multichannel Marketing
Strategic Imperatives
69American Marketing Association
Funny, but true
Now we will cover:
•  Multichannel Marketing Challenges
•  Strategic Success Factors & Frameworks
•  Multichannel Case Examples
70American Marketing Association
Multichannel Marketing Challenges
" Obsolete mindset & practices: stop viewing channels as silo’d vehicles.
•  Think about it as customers do: a set of related engagements that deliver cumulative
value. Orchestrate end-to-end delivery of desired customer experience.
•  Success increasingly dependent on channels outside of Marketing control (inside and
outside their organizations). Enroll all partners in delivery of strategy.
71American Marketing Association
Where Marketers Struggle
Source: CMO Survey/Experian (2012)
72American Marketing Association
Channel Marketing Strategy Today
7
73American Marketing Association
Multichannel Success Factors
" Framework #5: Must-Do Steps
74American Marketing Association
Enroll the Organization
" Set specific goals.
•  With any marketing effort, before embarking write down what it is exactly you are trying to
accomplish (generate awareness, leads, revenue?), along with target numbers not just for
the overall plan, but for each channel that you plan on using.
" Bridge operational silos.
•  You might not be the owner of all the channels that will be going into your cross-channel
marketing plan. So coordinate with each team leader so everyone knows which part they
have to play. Also, determine how credit will be given to each team if the campaign proves
successful.
" Get executive buy-in.
•  Building an integrated marketing plan requires a decent amount of work and patience
before seeing results, so make sure anyone that has a say in the matter is aware of your
plan, the opportunities and risks involved, and gives you the thumbs-up to move forward.
75American Marketing Association
" What info/support do stakeholders need within each channel? Across channels?
" How do they seek it out? When? What format?
" Which conditions/parameters? What frequency?
Info Hierarchy by Channel
Engage Customers through Relevant Channel Content
76American Marketing Association
Use 360 Views to inform Accommodation Marketing
" Develop information infrastructure.
•  Technology now enables us to collect, process, and mine more customer data faster than
ever before from online and offline channels for multidimensional view of customers.
–  Capture transactions, complimentary 3rd party data, digital activity, customer feedback loops.
–  Standardize file structures/formats.
–  Embrace multichannel analytics.
•  Mine at increasingly granular levels to inform channel strategy that delivers the desired
customer experience.
–  Micro-targeting, personalized contact/relevant content/targeted offers (i.e., go beyond pushing out
mass communications).
•  Distribute customer information/insights across the organization to deliver seamless
customer experience and boost performance.
–  Share customer requirements within and across multiple channels.
77American Marketing Association
" Track what’s critical to customers engagement/satisfaction that enables
multidimensional views/response.
" Track what’s critical to business success, integrated from discrete sources.
" Select cohesive, multichannel analytics/ tech solutions to aggregate diverse
formats/file structures to inform cross-channel/full funnel attribution models.
" Harvest insights to inform next practices (micro-segmentation, channel weighting).
Use Multichannel Measurement & Analytics
78American Marketing Association
Multichannel best practices
Source: Forrester Research, Inc.
Selling •  Build Web applications that bridge the channels.
•  Enable reserving or buying online with pickup in
store.
•  Offer consistent pricing and promotions.
Service •  Offer service choice.
•  Provide an extended inventory network.
Marketing
Metrics and measurement •  Provide incentives for channel cooperation.
•  Treat the Web as more than just another store.
•  Assign clear executive leadership.
Organization and culture •  Create metrics on cross-channel growth and
satisfaction.
•  Use loyalty programs to track customers across
channels.
•  Use surveys to gather additional insight.
79American Marketing Association
Multichannel Success Factors
" Framework #6: Guiding Principles
80American Marketing Association
Big 4
Convenient
Consistent
Contextual
(a)Cross time
81American Marketing Association
convenient
82American Marketing Association
Walgreen on iPad
Use Channel Touchpoints Strategically
Align what they do best
with customer needs
83American Marketing Association
cohesivet
84American Marketing Association
Ensure unity across customer segments
PRE-ACTIVATION
Regulatory
communi-
cations
CARES
letter
Connections
newsletter
Hard-
copy
bill
state-
ment
Bill
message
Product/Svc
campaign
Active Idle
screen daily
perks
My Account
registration
mailer
Bill inserts
Radio TV PR/
Inv Rel
OOH Print
Calling all
communities
GRO
Exterior
Store
Banner
Interior
Store
Banner
Store
discovery
bar
Phone
detailing
Community
Board
Battery swap
van
POS tech
support
30 day
exchange
Visit store
RWC
POS bill
pay
Video smart-
phone wall
Inbound CS
general/
activation calls
Store
device
workshop
Ongoing
Legacy Only
Legend=
Ongoing Legacy
& Rewards
Ongoing
Rewards Only
Singular Touch
Point (both)
Welcome
call
Self-serve
CS IVR
Self-serve
CS/CRR IVR
IVR xfer to CS, FS,
Prepaid, Lifeline, CR,
CRR, Tech Support7th day
bill credit
or
rewards
SMS
1st Bill
call
60th day
SMS
Mail-in
rebate
(MIR)
YouTube
Twitter
Facebook
New Smart
phone SMS
Online
customer
purchase
Online
Videos
My
Account
emails
Website
Surprise
& delight
Sponsor-
ship
events
Moments to
believe in
Website demo on
modem display
VOC
Action
response
team
B2B - SMB
Owner
comm.
Store
collateral
B2B
Large
Owner
comm.
Referral
Program
CLCP
Cust Eng
surveys
Migration
campaign
calls
B2B
SMB
annl
plan
B2B
Large
bi-annl
plan
Migration
campaign mail
In-contract
campaign
Store POS device/
access. purchase
materials
Out-of contract
campaign
Eqpt eligible
trigger campaign
B2B Welcome
Packet
B2B
associates
CLCP
Out-of contract
campaign
IVR xfer to CS, FS,
Prepaid, Lifeline, CR,
CRR, Tech Support
POS tech
support
Customer
Crew
<30 day
welcome
kit DM
Store
buck
slips
VIP
bonus
NDC
touches
CCS
emails
Rewards
feedback
emailbox
My Account
emails (acct
statements,
bday etc.)
Webchat
support
Telesales
Call store
RWC
SMS pt
statement
(unregistered)
Direct fulfillment
box/content
Pdt vendor
commun-
ications (ie.
Zed)
Page 3
When%Looking%Holis.cally%Across%All%Customer%Touch%Points,%%
We%Deliver% A%Lot%of%Stuff %to%Our%Customers!
85American Marketing Association
Ensure unity across screens
86American Marketing Association
Ensure cross-channel consistency
87American Marketing Association
contextual
88American Marketing Association
Customer Hot Buttons
89American Marketing Association
Contextual Relevance: DIY Weekends
90American Marketing Association
(a)cross time
91American Marketing Association
Trying on tent
research	
  online,	
  try	
  
in	
  store	
  
92American Marketing Association
Cross-channel shopping
Sample Elements
0%
10%
20%
30%
40%
50%
60%
70%
80%
Gen Yers Gen Xers Younger
Boomers
Older Boomers Seniors
Have you ever researched a product online and then
purchased it (actually paid for it in an offline store?”
Male Female
Source: Forrester’
93American Marketing Association
Cross-Channel Case Example
" USAA (Fortune 100) provides financial services to military families throughout their
lives.
•  From weddings and first homes to college funds and retirement.
" USAA Customers interact with multiple channels throughout their planning, purchase, and
usage process.
•  Customers seek out info from offline and online sources.
•  Customers start application online and finish it over the phone.
•  Customers check account balance online while waiting in the call center.
" Studying user flows identified sequence of events that led to positive or negative
sentiment across channels.
•  “Our customers were already multichannel, but we viewed them as isolated interactions.
The key was understanding the differences between good and bad cross-channel
experiences.” - Allen Crane / Executive Director / Research & Analytics
94American Marketing Association
Cross-Channel Analytics
" Cross-tabulating data to inform cross-channel marketing strategy.
•  Customer satisfaction, demographic attributes, purchase history, and web and phone logs.
•  Identified opportunities for highly targeted engagement (based on customer’s life stage,
behavior patterns, and channel preferences).
95American Marketing Association
Multichannel Success Factors
" Framework #7: Voice of Customer
96American Marketing Association
Channel strategy dictated by customers (not corporation)
" Insight comes from asking right questions in right ways
•  What offline and online activities do they participate in when engaged in our category?
•  What channels does our audience prefer for information? Sales? Post-sales support?
•  Do they seek advice? Do they look for customer reviews? Do they want to talk to
someone?
" Voice of Customer (VOC) research uncovers needs, triggers, barriers, and
accelerants.
•  Emotions.
•  Thoughts.
•  Behaviors.
•  Time.
•  Place.
97American Marketing Association
Customer
Definition
Channel
Mapping
Moments
of Truth
Experience
Design
Experience
Monitor
Strategic
Questions
Analytic
Approach
Deliverables
“Who are our best
customers/prospects?”
“What is their current
channel experience?”
“How can I make their
channel experiences
exceptional?”
“Are we delivering the
desired experience?”
“What channels most
impact success?”
Customer Interviews
Intercept Studies
Ethnography
Analytical Research
Social Mining
Touchpoint Dashboard
Experience Dashboard
Channel ROI
Customer Segmentation
Customer Targeting
Customer Personas
Channel Priority Ranker
Channel Investment
Purchase Process
Day In The Life
Journey Map
Experiential Plan
Cost Benefit Analysis
Touchpoint Guidelines
Operational Requirements
Segmentation Analysis
Prospect Analysis
Customer Lifetime Value
Situation Review
Experience Mapping
Concept definition
Operation/business
process review
Customer Interviews
Importance Ranking
Financial Impact Projection
Channel Weighting
Channel Tracking
Customer Feedback
Using Voice of Customer to inform Channel Strategy
Understanding which channel combinations work best with key segments at distinct stages
98American Marketing Association
Main Sections of Questionnaire
Markentreiber für die
Markenwerthebel4
Respondent demographics
1
Currently use our products?
Decision making criteria and
purchase process behaviors?
Etc.
Role of Channels 3
Which channels are used by
the target audience? How do
these touchpoints satisfy
needs and deliver on our
brand promise?
2
Where are they in the
funnel? What are their
perceptions of our brand and
competitors?
Prioritization of Channels4
Which channel experiences
drive purchase decisions and
conversion along the funnel?
Which ones influence/support?
5
Effectiveness of Channel
Strategy (as Eco-system) 6
How effective is our channel
system in delivering brand
strategy?
Voice of Customer: Quantitative Research
Current behavior and
knowledge
How do consumers evaluate
performance of each
touchpoint relative to
expectations? Competitors?
Evaluation of individual
Touchpoints
ILLUSTRATIVE EXAMPLE
99American Marketing Association
Voice of Customer: Qualitative Research
" Documenting: Day in the Life.
•  Personal Journals.
•  Ethnographic Interviews.
•  Shop-Alongs.
100American Marketing Association
Customer Personas
" Personas enable you to relate to your audience as a human being.
•  1-2 page representative profile (for each segment) based on research.
•  Fictional narrative about the person’s life (things that make them unique, memorable).
•  Brief outline of daily routine, including specific details, likes, dislikes.
•  Name, age, photo, and personal information (emotional wants, needs).
•  Summary of work, including time in job, info-seeking habits, favorite resources,
professional goals.
•  Living & work environments (including key relationships, frustrations).
101American Marketing Association
Jesse Butts
PART-TIME STUDENT
AGE: 29 SEX: MALE LOCATION: LISLE, IL OCCUPATION: ANALYST
Jesse is a 29 year old marketing analyst working at a major corporation in the suburbs.
For the past 3 years he has been taking on a more active roll in the organization:
managing projects, working with agency partners and doing some basic campaign
analysis. He’s looking to stay with his current organization and quickly advance. HR
recommends that Jesse can demonstrate his commitment to the organization by
pursuing a Masters Degree. The organization will even pay for some of the degree if
he keeps his grades up and commits to staying with the organization for 2 years after
his degree is complete.
GOALS
Advance his career
Make more money
Gain new marketable skills
Get ahead of his boss
ONLINE ACTIVITIES
Jesse is an active member on Facebook. He updates his status almost daily . A fair
amount of his updates now come from his mobile phone. Jesse also reads a mix of
marketing trade publications online to keep up and show his managers he’s interested
in Marketing. He also is follows the local sports teams.
OFFLINE ACTIVITIES
Jesse is involved in the Chicago Sport and Social Club. He comes to the city on
Thursday to play volleyball with some friends. He often stays late for a drink after work
and takes the train home.
KEY PAIN POINTS /FRUSTRATIONS
Time commitment, Jesse is young, unmarried and likes to enjoy his weekends.
Acceptance, fear of rejection
Primary Motivators by Priority:
1.  Career advancement or change
2.  Specific skill improvement tied to career advancement
3.  Perception that “Master’s is new Bachelor’s”
4.  Time is Now
5.  Validation from external world
102American Marketing Association
Lizzy Ullman
FULL-TIME STUDENT
AGE:39 SEX: FEMALE LOCATION: CHICAGO, IL OCCUPATION: UNEMPLOYED
Lizzy was recently let go from her job at a Chicago based company that specialized
in supply chain and logistic management services and process improvement. Her
most recent role in the organization was Senior Project Manager. She has been with
the organization for 16 years. She is married with 2 kids and currently lives in
Ravenswood. She has a degree in communications from Northern Illinois University.
GOALS
Gain new marketable skills
Get back in the game
Earn a comparable salary to her previous job
Wants to get a degree and quick
ONLINE ACTIVITIES
Lizzy does not spend much time online. If she is online, she’s checking personal email
and catching up with her girlfriends …or doing some impulse shopping. On
Amazon.com. She admits that she needs to pay more attention to the space, but does
not know where to start.
OFFLINE ACTIVITIES
Lizzy currently enjoys spending time with her family. She generally has at least 1
weekend activity planned with them.
KEY PAIN POINTS /FRUSTRATIONS
Concerned about time with kids
Concerned about expenses
Primary Motivators by Priority:
1.  Specific skill improvement tied to career advancement
2.  Perception that “Master’s is new Bachelor’s”
3.  Career advancement or change
4.  Time is Now
103American Marketing Association
104American Marketing Association
Multichannel Success Factors
" Framework #8: Customer Journey
105American Marketing Association
Customer Journey Maps as Inspiration for Channel Strategy
" What’s a customer experience map?
•  Graphical representation of the customer engagement from beginning, middle and end.
–  Includes tangible interactions, triggers and touchpoints, as well as intangible motivations,
frustrations and meanings.
–  6 Dimensions: Time/duration, Interactivity, Intensity, Breadth/consistency, Sensoral/cognitive
triggers, Siginificance/meaning
–  3 Components: What customers Think, Do, Use
" Typical elements:
•  Customer actions, usually broken into chronological phases of some kind
•  Goals and needs at each step in the process
•  Moments of truth, or areas of particular importance in the overall customer experience
•  Pain points, gaps and disconnects in service
•  Brand impact, satisfaction, and emotional responses
•  Business touchpoints and process, including roles, systems and departments
•  Existing services and opportunities for improvement
•  Other descriptive and contextual elements may also appear, such as quotes and photos.
106American Marketing Association
Customer Journey Maps: How to Begin
" The first step: identifying the most important touch points and how they are
perceived by your most important customers or prospects. Plot every point at
which key customers interact with you.
•  These can begin with your customer’s exposure to an advertisement or other marketing
material.
•  They continue through every conversation with an employee in a store, online or via
phone, and their experience with your product or service.
•  They even extend into the return/refund process and the customer’s recommending, or
criticizing, your product or service to others.
" Use research outputs and shared team knowledge to plot journey.
•  The point of the initial mapping exercise is generating team conversation.
" Evaluate interactions systemically
•  Identifies alignment gaps, synergy opportunities
107American Marketing Association
Wheels inspired by Cross-Channel & Enterprise –Wide Views
108American Marketing Association
Customer Journey Map
109American Marketing Association
Customer Journey Map
110American Marketing Association
111American Marketing Association
112American Marketing Association
Customer Journey Map
113American Marketing Association
Customer Journey Map
114American Marketing Association
Customer Journey Map
115American Marketing Association
Multichannel Success Factors
" Framework #9: Channel Wheels
116American Marketing Association
Customer Journey Analysis: Assessing Pain
•  Price
•  Phone Design
•  Lack of features
•  Availability of models
•  Delayed delivery
•  Product brochures
•  Durability of device
•  Complicated MMI
•  Hotline Pricing
•  Keypad usability
•  Stand by / Talk time
•  Data exchange rate
•  Compatibility of
accessories
•  Repair time
•  Quality
•  Availability of service
•  Price
•  Responsiveness
•  Goodwill service
•  Consistency of
service information &
coordination
•  Loyalty purchases not
rewarded
•  Compatibility to older
accessories
•  Price of new
accessories
•  Not meeting technical
expectations
•  Data transmission to
new device
Purchase Usage Service Replacement
DeviceIndustry
Issues
Everyday
Lives
•  Limited transparency
of operator contracts
•  Insufficient advice
from sales personnel
•  Radiation
•  Network quality
•  Poor call-center
quality
•  Switching costs of
loosing phone number
•  Finding things to do with spare time
•  Comparing prices during shopping
•  Finding time to spend with your child / friends
•  Getting stuck in the traffic/ having to wait in line/ being late for job
•  Grocery shopping for essentials
•  Network quality
•  Hearing in the theater
•  Fees for content
download
•  Compatibility of
network technology
117American Marketing Association
Channel Wheels
" Channel breakdowns.
•  Identifies touch point issues.
" Channel breakthroughs.
•  Inspires touch point solutions.
118American Marketing Association
Build a Cross-functional, Customer-experience Channel team
" Include representatives from all the key channels: Internet, print, advertising and
retail.The team should also represent marketing, merchandising, customer service
and fulfillment operations.
" Each person needs to understand at least one level of the customer experience, and
be willing to explore other opportunities without boundaries.
" Assign the team the task of creating a unique experience for customers. Beyond
merely selling a product or service, what else can you do to entice customers not only
to purchase, but to come back for the next purchase, and the next, and the next?
" Reconvene periodically (two to three times a year) and revisit the efforts. What's
working? What isn't? What other ideas can you incorporate?
" Each group owns their portion of the advocacy wheel.
119American Marketing Association
BEFORE
AFTER
DURING
Need
Recognition
Search
Shopping
Evaluation
Moment of
Purchase
Usage
Customer
Service
Identifying Channel Breakdowns
119
Turning Touchpoint Issues into Opportunities
120American Marketing Association
BEFORE
AFTER
DURING
First exposure,
subsequent
interactions.
Submission of quote/
price info
Final
presentation,
signs contract
Delivery,
installation,
testing, training,
usage
Cyclic payments,
proactive
maintenance,
malfunction &
response
Need
Recognition
Search
Engagement
Evaluation
Moment of
Purchase
Usage
Customer
Service
Identifying Channel Breakdowns: B2B Example
Turning Touchpoints to Brand Breakthroughs
“I will look into….”
Searches web,
Calls contact center
or channel partner,
seeks input from others
Studies proposal,
seeks input form
others
121American Marketing Association
Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
122American Marketing Association
Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
123American Marketing Association
Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
124American Marketing Association
Multichannel Success Factors
" Framework #10: Channel Architecture
125American Marketing Association
Channel Architecture
" Multi-channel strategy involves each channel playing a specific role in a
coordinated, unified system.
•  Customer value is defined and delivered within and across channels.
•  While customers operate within a world containing multiple interaction points, they expect
a cohesive and seamless cross-channel experience.
•  Align channel objectives with segment needs to set engagement strategy.
•  Develop strategies that use the right channels to engage the right audience in the right
way at the right time.
–  What channels are our segments using to research? Purchase? Resolve issues?
•  Channels don’t operate independently: they often assist each other.
–  Customers ‘mix and match’ channels on their path to purchase, usage, support.
–  Interplay patterns vary by customer segment, industry, brand.
126American Marketing Association
Channel Hierarchy: Prioritizing Channel Mix
1
127American Marketing Association
Prioritizing Brand Experience
Brand Strategy
Positioning, Identity
Customer Experience Strategy
Satisfaction, Perceptual Take-aways
Channel 1 Channel 2 Channel 3 Etc.
Objectives and
Requirements
Objectives and
Requirements
Objectives and
Requirements
Objectives and
Requirements
Needs and
Drivers
Needs and
Drivers
Needs and
Drivers
Segment 1
Segment 2
Etc.
Offerings
Product(s)
Service(s)
Content
Support

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Multi channel marketing strategy - i

  • 1. American Marketing Association Multichannel Marketing Strategy AMA Workshop March 2013
  • 2. 2American Marketing Association What You Told Me Source: Pre-session responses from MCM workshop participants “Our  MCM  is  ad  hoc,  inconsistent   and  reac2ve.  We  don’t  have  a   strategy  in  place.”   “   “   “   “We  don’t  have  a  strong,  strategic   mindset  about  our  brand  or  how   it’s  marketed  in-­‐channel.”   “We  don’t  have  a  marke2ng   culture  here.  Our  execs  don’t   understand  it,  support  it,  or   budget  for  it  well.  So  our  MCM   suffers.”   “Our  MCM  is  now  burgeoning.     We  need  to  be  coordinated  and   strategic.”   “I  want  to  become  a  resourceful   partner  for  all    sales  channels   here.  Our  MCM  is  cluGered,   unfocused,  and  incomplete  at   the  moment.”  
  • 3. 3American Marketing Association Learning Modules We’ll toggle around during our two days together Principles Insights Strategy Cases Reflection
  • 4. 4American Marketing Association ARCHITECTING MCM STRATEGIES (90 mins) •  Case studies •  Workbook exercise/reflection BUILDING A ‘MOCK’ MCM STRATEGY (90 mins) •  Background/assignment •  Sub-group breakouts •  Group discussion Break (15 mins) APPLYING MCM PRINCIPLES (45 mins) •  Workbook exercise/reflection •  Peer review Workshop Schedule INTRODUCTION (15 mins) •  Curriculum Review CONTEXTUAL FOUNDATION (90 mins) •  Foundational principles •  Aligning business, brand, channel strategy •  Planning tools & frameworks Break (15 mins) MCM STRATEGY (90 mins) •  What it means •  Planning tools & frameworks •  Success factors & imperatives Morning 8:30am–12:00pm Afternoon 1:00pm–5:00pm Day 2Day 1 EVALUATING MCM STRATEGY/2 (90 mins) •  Group review/discussion •  Workbook exercise/reflection •  Peer review Break (15 mins) ORGANIZATIONAL READINESS (90 mins) •  Operationalizing MCM principles •  Success factors •  Workbook exercises/reflection CLOSE (30 mins) •  Final thoughts/course survey WELCOME BACK (30 mins) •  Recap key learnings/Day 1 MEASURING CHANNEL IMPACT (90 mins) •  Cross-channel quantification •  Attribution principles •  ROI tools Break (15 mins) EVALUATING MCM STRATEGY/1 (60 mins) •  Mock strategy development •  Sub-group breakouts
  • 5. 5American Marketing Association Funny, but true In this section we will cover Strategic Development: •  Fundamentals of strategy •  Aligning Business, Brand, Channel strategies •  Planning Frameworks
  • 6. American Marketing Association Strategic Development Background > Fundamentals
  • 7. 7American Marketing Association Insight “Nobody really knows what strategy is.” The Economist
  • 8. 8American Marketing Association Insight “Most of us are afraid of strategy…Strategy is scary because it describes results, not actions, and that means opportunity for failure.” Seth Godin
  • 9. 9American Marketing Association Why do we need a strategy? " Without a strategy, we fill our time with: •  What we want. •  What we think the boss wants. •  By reacting. " Without a strategy, time and resources can easily be wasted on piecemeal, extraneous activities. •  “If you don’t know where you’re going . . . any road will get you there.” - Lewis Carroll “Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
  • 10. 10American Marketing Association “Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4 Strategic Development Process Strategic Analysis § Industry Analysis § Customer/marketplace trends § Customer lifestage/lifestyle needs, wants § Customer activity cycle § Environment forecast § Competitor analysis § Assessment of internal strengths, weaknesses, resources, culture Mission § Fundamental purpose § Values § Vision Objectives § Specific targets, short & long term Strategy The central integrated, externally oriented concept of how we will achieve our objectives Organizational Imperatives § Structure § Process § Symbols § Rewards § People § Activities § Policies It’s not the sequence. It’s about robustness of the whole.
  • 11. 11American Marketing Association Five Elements of Strategy Arenas Staging Differentiators VehiclesEconomic Logic “Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4
  • 12. 12American Marketing Association System of Choices Economic Logic Arenas Staging Differentiators Vehicles Where will we be active? How will we get there? How will we win in the market place? What will be our speed and sequence of moves? How will we obtain our returns? “Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4
  • 13. 13American Marketing Association Five Elements of Strategy Arenas: Where we are active " Which product categories ? " Which market segments ? " Which geographic areas ? " Which marketing channels? " Which core technologies ? " Which value-creating stages ? " With how much emphasis ? “Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4 1
  • 14. 14American Marketing Association Five Elements of Strategy Vehicles: How we get there The means for attaining the needed presence in the identified arenas. " Internal development? " Joint ventures / alliances ? " Licensing / franchising ? " Acquisitions ? “Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4 2
  • 15. 15American Marketing Association Five Elements of Strategy Differentiators: How we win The reasons that customers will choose us. " Image ? " Customization ? " Price ? " Styling ? " Product reliability ? " Anything else ? “Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4 3
  • 16. 16American Marketing Association Five Elements of Strategy Staging: What will be our speed & sequence of moves? " Driven by availability of resources, urgency, need for credibility and need for early wins " Speed of expansion ? " Sequence of initiatives ? “Are you sure you have a strategy?” Hambrick and Frederickson Academy of Management Executive 2001 Vol. 15 No. 4 4
  • 17. 17American Marketing Association Five Elements of Strategy Economic Logic: How we obtain our returns How profits will be generated. " What generates cash ? " What decides your margins ? " What generates market share growth ? " How fast do sales turn into cash ? " What numbers / ratios tell us we’re successful ? " What are our underlying core capabilities ? " Lowest costs through scale advantages ? " Lowest costs through scope and replication advantages ? " Premium prices due to unmatchable service ? " Premium prices due to proprietary features ? “Are you sure you have a strategy?” Hambrick and Frederickson, Academy of Management Executive 2001 Vol. 15 No. 4 5
  • 18. 18American Marketing Association Strategic Evaluation §  Does your strategy exploit your key resources & capabilities? With your particular mix of resources, does this strategy give you a good head start on competitors? Can you pursue this strategy more economically than competitors? §  Will your envisioned differentiation be sustainable? Will competitors have difficulty matching you? If not, does your strategy explicitly include a relentless regimen of innovation & opportunity creation? §  Are the elements of your strategy internally consistent? Have you made choices of arenas, vehicles, differentiators, staging, and economic logic? Do they all fit and mutually reinforce each other? §  Is your strategy implementable? Will your key constituencies allow you to pursue this strategy? Can your organization make it through the transition? Are you & your management team able & willing to lead the changes? §  Do you have enough resources to pursue this strategy? Do you have the money, managerial time & talent, & other capabilities to do all you envision? Are you sure you’re not spreading your resources too thinly?
  • 19. 19American Marketing Association Aligning Strategy: Building Blocks CONTEXT CUSTOMERS COLLABORATORS COMPANY COMPETITORS
  • 20. 20American Marketing Association CUSTOMERS . . . that customers want . . . COLLABORATORS . . . and who wants to help us do it? COMPETITORS . . . better than others . . . COMPANY . . . that we can do . . . CONTEXT What things are possible . . . What business are we in? Aligning Strategy: Building Blocks
  • 21. 21American Marketing Association CUSTOMERS . . . that customers want . . . COLLABORATORS . . . and who wants to help us do it? COMPETITORS . . . better than others . . . COMPANY . . . that we can do . . . What business are we in? How do we capture share? Identify TARGET MARKET CONTEXT What things are possible . . . POSITION to DIFFERENTIATE from others Aligning Strategy: Building Blocks Design CHANNEL MARKETING Strategy
  • 22. 22American Marketing Association Strategic Alignment: Waterfall " What? •  Market Opportunity " Who? •  Segmentation/Targeting " Why? •  Brand Positioning " Where? •  Customer Journey " Which? •  Channel Architecture " How? •  Content/Experience Source: CMO.com, 2012 survey
  • 23. American Marketing Association Planning Frameworks Business > Brand > Channel
  • 24. 24American Marketing Association Strategic Development " Framework #1: Market Opportunity
  • 25. 25American Marketing Association Our Market Opportunity Us Customer Competitors
  • 26. 26American Marketing Association Our Vulnerabilities Tablestakes Our Points of Parity •  •  •  •  Customer Wants & Needs •  •  •  •  •  •  •  Our Competitive Disadvantages •  •  •  •  •  •  •  Customer Needs Our Company Strengths Competitor Strengths Our Competitive Advantages •  •  •  •  •  •  •  Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles Identifying Our Market Opportunity
  • 27. 27American Marketing Association Our Vulnerabilities Tablestakes Our Points of Parity •  Range of cardiovascular equipment •  Convenient Hours Customer Wants & Needs •  Affordable •  Make friends/ socialize •  Family activities •  Member of community Our Competitive Disadvantages •  Newer facilities •  Cleaner •  More locations •  Singles friendly •  Special features •  Unique features (spa, etc.) Customer Needs Our Company Strengths Competitor Strengths Our Competitive Advantages •  Family focused •  On-site child care •  Affordable •  Activities for all ages •  Range of fitness programs •  Family swim pool •  Unique offerings (swim lessons, etc.) •  Camp Eberhart Adapted from : Urbany, Joel E. and James H. Davis (2010), Grow by Focusing on What Matters: Strategy in 3-Circles Identifying Market Opportunity: YMCA
  • 28. 28American Marketing Association Our Vulnerabilities Tablestakes Our Points of Parity •  Selection satisfies requirements •  Time/cost efficient •  Geographic proximity Customer Wants & Needs •  Minimize effort •  Easy in/out •  Find what I needed •  Good quality •  Convenient location •  Not overwhelmed Our Competitive Disadvantages •  Inventory breadth/depth •  Lower prices •  Easy returns Customer Needs Our Company Strengths Competitor Strengths Our Competitive Advantages •  Knowledgeable assistance •  Friendly/ approachable •  Feel valued, empowered (not overwhelmed) Identifying Market Opportunity: ACE
  • 29. American Marketing Association Planning Frameworks Business > Brand > Channel
  • 30. 30American Marketing Association Understanding Brands Brand as Primary Source of Business Value
  • 31. 31American Marketing Association Brand v. Product/Service " Products/Services •  Have functional value •  Can be copied by competitors •  Can become outdated Brands •  Have functional and emotional value •  Are unique and proprietary •  Are timeless •  Exist in customers’ minds $1 $4
  • 32. 32American Marketing Association A Jingle A Spokesperson A SymbolAn Ad A Logo A Slogan A Name Brand is not:
  • 33. 33American Marketing Association " A promise. " A company’s most strategic asset. " The reflection of a customer’s entire experience with a company. " Built and protected by entire organization, not just the marketing department. Brand is:
  • 34. 34American Marketing Association Source: Interbrand, Brand Values 2011 Powerful brands create Economic Value •  1% increase in customer satisfaction leads to a 3% increase in market cap. •  2% increase in customer loyalty leads to a 10% cost reduction. •  5% increase in customer retention increases customer lifetime value by 25%. •  5% increase in customer loyalty can result in up to a 95% increase in profitability. •  50% of customers will pay 20–25% more for brands they are loyal to. Sources: Brandkey, Bain and Mainspring, Marketing News
  • 35. 35American Marketing Association Brand as Business Core R&D Executive Team & Business Units Information Technology Business Strategy Marketing & Sales Operations & Finance Brand Strategy
  • 36. 36American Marketing Association Brand Strategy Brand Strategy Brand Strategy Business Strategy Products/ Services Rational Dimensions Physical Attributes Emotional Dimensions Subjective Associations
  • 37. 37American Marketing Association Brand Strategy Brand Strategy Brand Strategy Business Strategy Products/ Services Rational Dimensions Physical Attributes Emotional Dimensions Subjective Associations
  • 38. 38American Marketing Association Brand Strength Strong Brands •  Make clear, meaningful promises. •  Built with compelling (rational and emotional) equities. •  High relevance in customer lives. •  Consistently delivers. •  Instills confidence. •  Clearly differentiated on key dimensions. •  High loyalty. Weak Brands •  Make vague promises. •  Built with general (and low emotional commitment) equities. •  Low relevance in customer lives. •  Inconsistent. •  Creates doubt. •  Undifferentiated. •  Low loyalty (rely on pricing/ promotional incentives).
  • 39. 39American Marketing Association Strong Brands •  P&L •  Functional attributes •  Building volume •  Commodity price war •  Selling •  Expense mindset Focus: Inside > Out •  Customer •  Daily life context/moments •  Building loyalty •  Price realization •  Consuming •  Investment mindset Outside > In FROM TO Brand as Strategic North Star •  Drives long term competitive advantage •  Needs to be owned by top management •  Requires systemic thinking/branding tools Brand as Tactical Tool •  Drives short term results only •  Owned by MarCom
  • 40. 40American Marketing Association Strategic Development " Framework #2: Brand Strategy System
  • 41. 41American Marketing Association Enduring Customer Advantage Extended Identity Core Identity Brand Essence Brand Positioning Brand Customer Relationship Integrated Channel Toupoints (Context and Content) Brand Strategy System: Multi-Dimensional Brand Power Brand Equity: the set of brand associations in the minds/hearts of customers. Brand Power: how levels of brand equity link to distinctive functional attributes and emotional benefits. Brand Customer Relationship: role the brand plays in the customer’s life. Brand Equity Brand Positioning: aspect of brand equity that is actively communicated to target audience. Integrated Channel Touchpoints: activities that engage customers where they are with relevant content.
  • 42. 42American Marketing Association Perform at Your Peak Gatorade Brand Equity Brand as Person Athletic Brand as Symbol Brand as Organization Leadership through innovation CredibleBrand-customer relationship: The Expert Peak performance •  Innovative hydration for athletes •  Provides Endurance •  “Born in the Lab, Proven on the Field” Fight to win: •  “Is it in you” •  Don’t quit, perseverance •  “Go Fierce, or Go Home” Emotion: •  The thrill of triumphing •  The satisfaction of not quitting Extended Identity Core Identity Brand Essence Brand as Product Determined Tough
  • 43. 43American Marketing Association Strategic Development " Framework #3: Brand Power
  • 44. 44American Marketing Association Brand Power: Transfers Up Functional Attributes Functional Benefits Brand- Consumer Relationship Emotional Benefits Self- Expressive Benefit Features Rational Advantages Human Needs Emotional Advantages Self Actualized give me… Which meet… and allows me… so I am… Frame of Reference
  • 45. 45American Marketing Association Brand Power: Gatorade Functional Attributes Functional Benefits Brand- Consumer Relationship Emotional Benefits Self- Expressive Benefit Electrolytes Hydration Acts as my coach Perform at my peak A winner give me… which… and allows me to… so I am… Performance
  • 46. 46American Marketing Association Brand Relationship §  Advisor §  Buddy §  Enabler §  Friend §  Fun companion §  Mentor §  Mother Companies Brand-Customer Relationship
  • 47. 47American Marketing Association Strategic Development " Framework #4: Brand Positioning
  • 48. 48American Marketing Association Positioning for Advantage Positioning refers to the essence that is overtly communicated to stakeholders. It represents the total of what a person or group of people think and know about the company and its brands. A unique position establishes a sustainable customer advantage AND a corporate focus. .
  • 49. 49American Marketing Association Positioning Opportunities " Define a target that is based on rich, emotional insights rather than pure demographics. " Move beyond industry and category terminology to select a frame of reference that captures the full range of consumer choice. " Communicate brand benefit(s) in a way that is relevant and engaging to stakeholders. " Move away from reasons to believe that are technical or less relevant to customers and find support points that are believable and compelling. " Think about how channel strategy can reinforce/dimensionalize brand positioning.
  • 50. 50American Marketing Association A positioning is: A positioning is NOT: •  A vision or mission statement. •  A business strategy. •  An advertising slogan or tag line. •  A description of a product or service offering. •  A defined and differentiated perceptual space relevant to key stakeholders. •  A compelling description of the strategic intent, personality and competencies of the organization/ product/service. •  A unifying, overarching idea that drives all execution (e.g., messaging, channel tactics, customer service). What is a Positioning Statement?
  • 51. 51American Marketing Association Positioning Best Practices Brand Positions should be: • Meaningful and compelling to target audience. • Emotionally grounded. • Relevant in the context of customers’ daily lives. • Able to deliver against promise. • Differentiated. • Consistent and clear. • Actionable in market/channel.
  • 52. 52American Marketing Association Positioning Statement To <target audience>, [BRAND] is the <frame of reference> that <core promise> because <reasons to believe>. The primary group with which the brand wants to communicate. The relevant set of substitutable products. The primary relevant and compelling benefit delivered by the brand to its target audience. The proof or reasons to believe the brand delivers the benefit to the target.
  • 53. 53American Marketing Association How powerful is this Positioning Statement? For children ages 6-12, Lego is the toy that offers them the greatest degree of flexibility because Lego is the most trusted toy brand. Comments Comments Comments Comments
  • 54. 54American Marketing Association Lego Positioning Statement: Reimagined For children with imagination, Lego is the recreational activity that offers them the power to create endless play experiences limited only by their own imagination because Lego provides a full range of building components that can be used to assemble infinite combinations. is held together by a common insight – that they have imagination. is broad enough to capture products (or even services) beyond just toys that could be used to stimulate the imagination. is insight based benefit, not feature based. It’s not that the products offer flexibility, it’s that they create experiences. is aligned with the core promise and is relevant to consumers.
  • 55. 55American Marketing Association Strategic Development " Framework #5: Segmentation & Targeting
  • 56. 56American Marketing Association Segmentation and Profiling " Understanding the customer(s) •  What are the discrete segments? •  How do they move through category decision process? •  Who do they listen to? •  Where do they get their information? •  What are their channel interaction patterns? •  What do you want them to think, feel, believe? •  What evidence are you going to give them for their rational beliefs? •  What do they need to know about for their emotional beliefs?
  • 57. 57American Marketing Association Current Customers Competitor Customers (Prospects) Category Non-Users Lapsed Customers Segment Priority Size & Volume Potential Decision Criteria or Motivators Usage Behavior Decision Process Barriers/Concerns Information Sources & Influences Brand Importance Channel preferences Satisfaction requirements Customer Targeting Matrix Note: Adjust cells to suit category and brand
  • 58. American Marketing Association Planning Strategy Business > Brand > Channel
  • 60. 60American Marketing Association Old Model " Channel strategies used to be relatively simple. •  Messaging occurred through traditional, 1-way communication channels (e.g., TV/print/ radio/OOH advertising, in-store collateral, events). •  Products distributed through brick & mortar/catalog channels. " Prospects engaged and moved through funnel in predictable, linear stages. •  People generally started at the same point (i.e., similar level of knowledge) and methodically guided through process. •  Company controlled brand, message, conversation, buying process
  • 61. 61American Marketing Association Today’s On-Demand Culture " Consumers are increasingly empowered and demanding •  People no longer passively accept/trust information provided by marketers. •  People no longer let brand owners, retailers, communication channels dictate agenda. " Marketing now more complex due to (customer) ‘accommodation’ mandate. •  Technology changing customer access, purchase process, success factors
  • 63. 63American Marketing Association Era of Customer Accommodation: Success Factors " Calibrate comprehensive channel mechanisms based on customer interaction preferences/patterns. •  Communications (content, lead generation/qualification). •  Sales (transactional access, fulfillment) •  Support (pre-/ post-purchase service). " Understand customers and their journey to design idealized purchase process and usage experience. •  Defines how/when/where to “touch” customers for optimal access, relevance, impact. •  Determines channel choice, prioritization, and investment. " Enroll and equip the organization to succeed in a multichannel universe. •  Marketing Department leads multichannel development process. •  Enterprise-wide delivery across touchpoints (i.e., areas beyond control of Marketing Department).
  • 64. 64American Marketing Association Communications: New Landscape " Customers control conversation about companies, brands, products. •  Blogs, posts from peers exert significant influence (across all life stages, most industries). " Marketers now need to prioritize 3 distinct types of information channels to accommodate customers
  • 65. 65American Marketing Association Communications: New Landscape " Digital Technology has granted customers unprecedented access to information, products, transactional utility.
  • 66. 66American Marketing Association Mobile as Emerging Powerhouse " Mobile channel in particular is soaring: some marketers now think mobile ‘first’ (i.e., lead channel) Source: Nielsen Mobile Insights 2012
  • 67. 67American Marketing Association Poster Child: Online, Offline, On-the-Go " Walgreens embraces multichannel philosophy. •  Paid and earned media presence. •  Owned mobile content (text alerts, coupons, smart phone apps). •  Web support (live pharmacist chats, e-commerce). •  In-store service (drive-thru, wellness clinics). •  Integrated data & mining drives personalized messaging/offers, contact frequency, ROI. Walgreens Powers Multi-Touch Strategy “… it’s imperative that customers can conveniently access Walgreens in any form, when and where they want to.” -- David Lonczak Walgreens VP
  • 68. American Marketing Association Multichannel Marketing Strategic Imperatives
  • 69. 69American Marketing Association Funny, but true Now we will cover: •  Multichannel Marketing Challenges •  Strategic Success Factors & Frameworks •  Multichannel Case Examples
  • 70. 70American Marketing Association Multichannel Marketing Challenges " Obsolete mindset & practices: stop viewing channels as silo’d vehicles. •  Think about it as customers do: a set of related engagements that deliver cumulative value. Orchestrate end-to-end delivery of desired customer experience. •  Success increasingly dependent on channels outside of Marketing control (inside and outside their organizations). Enroll all partners in delivery of strategy.
  • 71. 71American Marketing Association Where Marketers Struggle Source: CMO Survey/Experian (2012)
  • 72. 72American Marketing Association Channel Marketing Strategy Today 7
  • 73. 73American Marketing Association Multichannel Success Factors " Framework #5: Must-Do Steps
  • 74. 74American Marketing Association Enroll the Organization " Set specific goals. •  With any marketing effort, before embarking write down what it is exactly you are trying to accomplish (generate awareness, leads, revenue?), along with target numbers not just for the overall plan, but for each channel that you plan on using. " Bridge operational silos. •  You might not be the owner of all the channels that will be going into your cross-channel marketing plan. So coordinate with each team leader so everyone knows which part they have to play. Also, determine how credit will be given to each team if the campaign proves successful. " Get executive buy-in. •  Building an integrated marketing plan requires a decent amount of work and patience before seeing results, so make sure anyone that has a say in the matter is aware of your plan, the opportunities and risks involved, and gives you the thumbs-up to move forward.
  • 75. 75American Marketing Association " What info/support do stakeholders need within each channel? Across channels? " How do they seek it out? When? What format? " Which conditions/parameters? What frequency? Info Hierarchy by Channel Engage Customers through Relevant Channel Content
  • 76. 76American Marketing Association Use 360 Views to inform Accommodation Marketing " Develop information infrastructure. •  Technology now enables us to collect, process, and mine more customer data faster than ever before from online and offline channels for multidimensional view of customers. –  Capture transactions, complimentary 3rd party data, digital activity, customer feedback loops. –  Standardize file structures/formats. –  Embrace multichannel analytics. •  Mine at increasingly granular levels to inform channel strategy that delivers the desired customer experience. –  Micro-targeting, personalized contact/relevant content/targeted offers (i.e., go beyond pushing out mass communications). •  Distribute customer information/insights across the organization to deliver seamless customer experience and boost performance. –  Share customer requirements within and across multiple channels.
  • 77. 77American Marketing Association " Track what’s critical to customers engagement/satisfaction that enables multidimensional views/response. " Track what’s critical to business success, integrated from discrete sources. " Select cohesive, multichannel analytics/ tech solutions to aggregate diverse formats/file structures to inform cross-channel/full funnel attribution models. " Harvest insights to inform next practices (micro-segmentation, channel weighting). Use Multichannel Measurement & Analytics
  • 78. 78American Marketing Association Multichannel best practices Source: Forrester Research, Inc. Selling •  Build Web applications that bridge the channels. •  Enable reserving or buying online with pickup in store. •  Offer consistent pricing and promotions. Service •  Offer service choice. •  Provide an extended inventory network. Marketing Metrics and measurement •  Provide incentives for channel cooperation. •  Treat the Web as more than just another store. •  Assign clear executive leadership. Organization and culture •  Create metrics on cross-channel growth and satisfaction. •  Use loyalty programs to track customers across channels. •  Use surveys to gather additional insight.
  • 79. 79American Marketing Association Multichannel Success Factors " Framework #6: Guiding Principles
  • 80. 80American Marketing Association Big 4 Convenient Consistent Contextual (a)Cross time
  • 82. 82American Marketing Association Walgreen on iPad Use Channel Touchpoints Strategically Align what they do best with customer needs
  • 84. 84American Marketing Association Ensure unity across customer segments PRE-ACTIVATION Regulatory communi- cations CARES letter Connections newsletter Hard- copy bill state- ment Bill message Product/Svc campaign Active Idle screen daily perks My Account registration mailer Bill inserts Radio TV PR/ Inv Rel OOH Print Calling all communities GRO Exterior Store Banner Interior Store Banner Store discovery bar Phone detailing Community Board Battery swap van POS tech support 30 day exchange Visit store RWC POS bill pay Video smart- phone wall Inbound CS general/ activation calls Store device workshop Ongoing Legacy Only Legend= Ongoing Legacy & Rewards Ongoing Rewards Only Singular Touch Point (both) Welcome call Self-serve CS IVR Self-serve CS/CRR IVR IVR xfer to CS, FS, Prepaid, Lifeline, CR, CRR, Tech Support7th day bill credit or rewards SMS 1st Bill call 60th day SMS Mail-in rebate (MIR) YouTube Twitter Facebook New Smart phone SMS Online customer purchase Online Videos My Account emails Website Surprise & delight Sponsor- ship events Moments to believe in Website demo on modem display VOC Action response team B2B - SMB Owner comm. Store collateral B2B Large Owner comm. Referral Program CLCP Cust Eng surveys Migration campaign calls B2B SMB annl plan B2B Large bi-annl plan Migration campaign mail In-contract campaign Store POS device/ access. purchase materials Out-of contract campaign Eqpt eligible trigger campaign B2B Welcome Packet B2B associates CLCP Out-of contract campaign IVR xfer to CS, FS, Prepaid, Lifeline, CR, CRR, Tech Support POS tech support Customer Crew <30 day welcome kit DM Store buck slips VIP bonus NDC touches CCS emails Rewards feedback emailbox My Account emails (acct statements, bday etc.) Webchat support Telesales Call store RWC SMS pt statement (unregistered) Direct fulfillment box/content Pdt vendor commun- ications (ie. Zed) Page 3 When%Looking%Holis.cally%Across%All%Customer%Touch%Points,%% We%Deliver% A%Lot%of%Stuff %to%Our%Customers!
  • 86. 86American Marketing Association Ensure cross-channel consistency
  • 91. 91American Marketing Association Trying on tent research  online,  try   in  store  
  • 92. 92American Marketing Association Cross-channel shopping Sample Elements 0% 10% 20% 30% 40% 50% 60% 70% 80% Gen Yers Gen Xers Younger Boomers Older Boomers Seniors Have you ever researched a product online and then purchased it (actually paid for it in an offline store?” Male Female Source: Forrester’
  • 93. 93American Marketing Association Cross-Channel Case Example " USAA (Fortune 100) provides financial services to military families throughout their lives. •  From weddings and first homes to college funds and retirement. " USAA Customers interact with multiple channels throughout their planning, purchase, and usage process. •  Customers seek out info from offline and online sources. •  Customers start application online and finish it over the phone. •  Customers check account balance online while waiting in the call center. " Studying user flows identified sequence of events that led to positive or negative sentiment across channels. •  “Our customers were already multichannel, but we viewed them as isolated interactions. The key was understanding the differences between good and bad cross-channel experiences.” - Allen Crane / Executive Director / Research & Analytics
  • 94. 94American Marketing Association Cross-Channel Analytics " Cross-tabulating data to inform cross-channel marketing strategy. •  Customer satisfaction, demographic attributes, purchase history, and web and phone logs. •  Identified opportunities for highly targeted engagement (based on customer’s life stage, behavior patterns, and channel preferences).
  • 95. 95American Marketing Association Multichannel Success Factors " Framework #7: Voice of Customer
  • 96. 96American Marketing Association Channel strategy dictated by customers (not corporation) " Insight comes from asking right questions in right ways •  What offline and online activities do they participate in when engaged in our category? •  What channels does our audience prefer for information? Sales? Post-sales support? •  Do they seek advice? Do they look for customer reviews? Do they want to talk to someone? " Voice of Customer (VOC) research uncovers needs, triggers, barriers, and accelerants. •  Emotions. •  Thoughts. •  Behaviors. •  Time. •  Place.
  • 97. 97American Marketing Association Customer Definition Channel Mapping Moments of Truth Experience Design Experience Monitor Strategic Questions Analytic Approach Deliverables “Who are our best customers/prospects?” “What is their current channel experience?” “How can I make their channel experiences exceptional?” “Are we delivering the desired experience?” “What channels most impact success?” Customer Interviews Intercept Studies Ethnography Analytical Research Social Mining Touchpoint Dashboard Experience Dashboard Channel ROI Customer Segmentation Customer Targeting Customer Personas Channel Priority Ranker Channel Investment Purchase Process Day In The Life Journey Map Experiential Plan Cost Benefit Analysis Touchpoint Guidelines Operational Requirements Segmentation Analysis Prospect Analysis Customer Lifetime Value Situation Review Experience Mapping Concept definition Operation/business process review Customer Interviews Importance Ranking Financial Impact Projection Channel Weighting Channel Tracking Customer Feedback Using Voice of Customer to inform Channel Strategy Understanding which channel combinations work best with key segments at distinct stages
  • 98. 98American Marketing Association Main Sections of Questionnaire Markentreiber für die Markenwerthebel4 Respondent demographics 1 Currently use our products? Decision making criteria and purchase process behaviors? Etc. Role of Channels 3 Which channels are used by the target audience? How do these touchpoints satisfy needs and deliver on our brand promise? 2 Where are they in the funnel? What are their perceptions of our brand and competitors? Prioritization of Channels4 Which channel experiences drive purchase decisions and conversion along the funnel? Which ones influence/support? 5 Effectiveness of Channel Strategy (as Eco-system) 6 How effective is our channel system in delivering brand strategy? Voice of Customer: Quantitative Research Current behavior and knowledge How do consumers evaluate performance of each touchpoint relative to expectations? Competitors? Evaluation of individual Touchpoints ILLUSTRATIVE EXAMPLE
  • 99. 99American Marketing Association Voice of Customer: Qualitative Research " Documenting: Day in the Life. •  Personal Journals. •  Ethnographic Interviews. •  Shop-Alongs.
  • 100. 100American Marketing Association Customer Personas " Personas enable you to relate to your audience as a human being. •  1-2 page representative profile (for each segment) based on research. •  Fictional narrative about the person’s life (things that make them unique, memorable). •  Brief outline of daily routine, including specific details, likes, dislikes. •  Name, age, photo, and personal information (emotional wants, needs). •  Summary of work, including time in job, info-seeking habits, favorite resources, professional goals. •  Living & work environments (including key relationships, frustrations).
  • 101. 101American Marketing Association Jesse Butts PART-TIME STUDENT AGE: 29 SEX: MALE LOCATION: LISLE, IL OCCUPATION: ANALYST Jesse is a 29 year old marketing analyst working at a major corporation in the suburbs. For the past 3 years he has been taking on a more active roll in the organization: managing projects, working with agency partners and doing some basic campaign analysis. He’s looking to stay with his current organization and quickly advance. HR recommends that Jesse can demonstrate his commitment to the organization by pursuing a Masters Degree. The organization will even pay for some of the degree if he keeps his grades up and commits to staying with the organization for 2 years after his degree is complete. GOALS Advance his career Make more money Gain new marketable skills Get ahead of his boss ONLINE ACTIVITIES Jesse is an active member on Facebook. He updates his status almost daily . A fair amount of his updates now come from his mobile phone. Jesse also reads a mix of marketing trade publications online to keep up and show his managers he’s interested in Marketing. He also is follows the local sports teams. OFFLINE ACTIVITIES Jesse is involved in the Chicago Sport and Social Club. He comes to the city on Thursday to play volleyball with some friends. He often stays late for a drink after work and takes the train home. KEY PAIN POINTS /FRUSTRATIONS Time commitment, Jesse is young, unmarried and likes to enjoy his weekends. Acceptance, fear of rejection Primary Motivators by Priority: 1.  Career advancement or change 2.  Specific skill improvement tied to career advancement 3.  Perception that “Master’s is new Bachelor’s” 4.  Time is Now 5.  Validation from external world
  • 102. 102American Marketing Association Lizzy Ullman FULL-TIME STUDENT AGE:39 SEX: FEMALE LOCATION: CHICAGO, IL OCCUPATION: UNEMPLOYED Lizzy was recently let go from her job at a Chicago based company that specialized in supply chain and logistic management services and process improvement. Her most recent role in the organization was Senior Project Manager. She has been with the organization for 16 years. She is married with 2 kids and currently lives in Ravenswood. She has a degree in communications from Northern Illinois University. GOALS Gain new marketable skills Get back in the game Earn a comparable salary to her previous job Wants to get a degree and quick ONLINE ACTIVITIES Lizzy does not spend much time online. If she is online, she’s checking personal email and catching up with her girlfriends …or doing some impulse shopping. On Amazon.com. She admits that she needs to pay more attention to the space, but does not know where to start. OFFLINE ACTIVITIES Lizzy currently enjoys spending time with her family. She generally has at least 1 weekend activity planned with them. KEY PAIN POINTS /FRUSTRATIONS Concerned about time with kids Concerned about expenses Primary Motivators by Priority: 1.  Specific skill improvement tied to career advancement 2.  Perception that “Master’s is new Bachelor’s” 3.  Career advancement or change 4.  Time is Now
  • 104. 104American Marketing Association Multichannel Success Factors " Framework #8: Customer Journey
  • 105. 105American Marketing Association Customer Journey Maps as Inspiration for Channel Strategy " What’s a customer experience map? •  Graphical representation of the customer engagement from beginning, middle and end. –  Includes tangible interactions, triggers and touchpoints, as well as intangible motivations, frustrations and meanings. –  6 Dimensions: Time/duration, Interactivity, Intensity, Breadth/consistency, Sensoral/cognitive triggers, Siginificance/meaning –  3 Components: What customers Think, Do, Use " Typical elements: •  Customer actions, usually broken into chronological phases of some kind •  Goals and needs at each step in the process •  Moments of truth, or areas of particular importance in the overall customer experience •  Pain points, gaps and disconnects in service •  Brand impact, satisfaction, and emotional responses •  Business touchpoints and process, including roles, systems and departments •  Existing services and opportunities for improvement •  Other descriptive and contextual elements may also appear, such as quotes and photos.
  • 106. 106American Marketing Association Customer Journey Maps: How to Begin " The first step: identifying the most important touch points and how they are perceived by your most important customers or prospects. Plot every point at which key customers interact with you. •  These can begin with your customer’s exposure to an advertisement or other marketing material. •  They continue through every conversation with an employee in a store, online or via phone, and their experience with your product or service. •  They even extend into the return/refund process and the customer’s recommending, or criticizing, your product or service to others. " Use research outputs and shared team knowledge to plot journey. •  The point of the initial mapping exercise is generating team conversation. " Evaluate interactions systemically •  Identifies alignment gaps, synergy opportunities
  • 107. 107American Marketing Association Wheels inspired by Cross-Channel & Enterprise –Wide Views
  • 115. 115American Marketing Association Multichannel Success Factors " Framework #9: Channel Wheels
  • 116. 116American Marketing Association Customer Journey Analysis: Assessing Pain •  Price •  Phone Design •  Lack of features •  Availability of models •  Delayed delivery •  Product brochures •  Durability of device •  Complicated MMI •  Hotline Pricing •  Keypad usability •  Stand by / Talk time •  Data exchange rate •  Compatibility of accessories •  Repair time •  Quality •  Availability of service •  Price •  Responsiveness •  Goodwill service •  Consistency of service information & coordination •  Loyalty purchases not rewarded •  Compatibility to older accessories •  Price of new accessories •  Not meeting technical expectations •  Data transmission to new device Purchase Usage Service Replacement DeviceIndustry Issues Everyday Lives •  Limited transparency of operator contracts •  Insufficient advice from sales personnel •  Radiation •  Network quality •  Poor call-center quality •  Switching costs of loosing phone number •  Finding things to do with spare time •  Comparing prices during shopping •  Finding time to spend with your child / friends •  Getting stuck in the traffic/ having to wait in line/ being late for job •  Grocery shopping for essentials •  Network quality •  Hearing in the theater •  Fees for content download •  Compatibility of network technology
  • 117. 117American Marketing Association Channel Wheels " Channel breakdowns. •  Identifies touch point issues. " Channel breakthroughs. •  Inspires touch point solutions.
  • 118. 118American Marketing Association Build a Cross-functional, Customer-experience Channel team " Include representatives from all the key channels: Internet, print, advertising and retail.The team should also represent marketing, merchandising, customer service and fulfillment operations. " Each person needs to understand at least one level of the customer experience, and be willing to explore other opportunities without boundaries. " Assign the team the task of creating a unique experience for customers. Beyond merely selling a product or service, what else can you do to entice customers not only to purchase, but to come back for the next purchase, and the next, and the next? " Reconvene periodically (two to three times a year) and revisit the efforts. What's working? What isn't? What other ideas can you incorporate? " Each group owns their portion of the advocacy wheel.
  • 119. 119American Marketing Association BEFORE AFTER DURING Need Recognition Search Shopping Evaluation Moment of Purchase Usage Customer Service Identifying Channel Breakdowns 119 Turning Touchpoint Issues into Opportunities
  • 120. 120American Marketing Association BEFORE AFTER DURING First exposure, subsequent interactions. Submission of quote/ price info Final presentation, signs contract Delivery, installation, testing, training, usage Cyclic payments, proactive maintenance, malfunction & response Need Recognition Search Engagement Evaluation Moment of Purchase Usage Customer Service Identifying Channel Breakdowns: B2B Example Turning Touchpoints to Brand Breakthroughs “I will look into….” Searches web, Calls contact center or channel partner, seeks input from others Studies proposal, seeks input form others
  • 121. 121American Marketing Association Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
  • 122. 122American Marketing Association Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
  • 123. 123American Marketing Association Assessing Channel Touchpoints: Brand Breakthroughs v. Breakdowns
  • 124. 124American Marketing Association Multichannel Success Factors " Framework #10: Channel Architecture
  • 125. 125American Marketing Association Channel Architecture " Multi-channel strategy involves each channel playing a specific role in a coordinated, unified system. •  Customer value is defined and delivered within and across channels. •  While customers operate within a world containing multiple interaction points, they expect a cohesive and seamless cross-channel experience. •  Align channel objectives with segment needs to set engagement strategy. •  Develop strategies that use the right channels to engage the right audience in the right way at the right time. –  What channels are our segments using to research? Purchase? Resolve issues? •  Channels don’t operate independently: they often assist each other. –  Customers ‘mix and match’ channels on their path to purchase, usage, support. –  Interplay patterns vary by customer segment, industry, brand.
  • 126. 126American Marketing Association Channel Hierarchy: Prioritizing Channel Mix 1
  • 127. 127American Marketing Association Prioritizing Brand Experience Brand Strategy Positioning, Identity Customer Experience Strategy Satisfaction, Perceptual Take-aways Channel 1 Channel 2 Channel 3 Etc. Objectives and Requirements Objectives and Requirements Objectives and Requirements Objectives and Requirements Needs and Drivers Needs and Drivers Needs and Drivers Segment 1 Segment 2 Etc. Offerings Product(s) Service(s) Content Support