Welcome to the Direct Marketing theatre and thanks for joining me. When thinking about what information would be most useful to our friends at DMX, my thoughts turned immediately to how companies that have an established record with direct response marketing are so well poised to capitalize on all of the wonderful ways that now exist to engage their customers. Any company who considers direct response marketing to their focus already understands the difference between acquisition efforts and back end mailings. Many have used an extensive array of promotional tools to reach their consumers: Print ads, Free Standing Inserts, Direct Mail Solicitations, Catalogues, Direct Response Television It’s not a far leap for them to understand how different digital channels can come into play. One thing that seems to stymie a good number of our direct response clients, however, is how to integrate the back end systems for optimal collection, analysis and interpretation of data.
Multichannel marketing means using two or more marketing channels to reach a customer. In this sense, a channel might be a retail store, a web site, a mail order catalogue, or direct personal communications by letter, email or text message. Cross Channel marketing recognizes that customers don’t necessarily choose a single mode of engagement – rather it leverages a customer’s engagement with multiple channels to develop a well-rounded picture of their preferences and needs – hopefully resulting in more sales! The ideal is for the merchant is to increase sales by make it easy for a consumer to use their preferred modes of research and response –to find the most effective way to engage the customer in a way that is meaningful to them.
While Multi Channel marketing allows you to reach your prospective or current customers in a channel of their liking, Cross Channel marketing recognizes you’re your customers don’t exist in one dimension, and that any single customer may sometimes like to shop on the high street, sometimes to browse a catalog, and sometimes shop by mail. Build Your Foundation and Make Sure Everyone Stands On It On the marketing side, it’s all about a unified message. Without a strong foundation, you can be as creative as you want and even spend as much money as you want, but your campaign may come across as choppy and disjointed. What you want to do is create a single, concise set of guidelines and make sure they are clearly communicated across all parties and mediums involved. Whether it’s a style guide, a branding document or a handful of rules, these are the building blocks of your integrated campaign. But what about the sale? Merchants are often surprised by the movement of customers across channels. A customer who buys from the website isn’t a different person when she buys by phone, or from a sales lady at the shop. She is the same person no matter how she responds – and you should build a system that recognizes her as such. Successful cross channel marketers recognize that the reward of increased revenues really depends on leveraging the strengths of all channels. Here are a few tips for 2012:
Use a variety of promotions both online and offline and then track response to each. 0f course you can and should segment your customers to create optimal value, but don’t allow them to get stuck in any kind of conceptual silo. Even if your internet and direct mail marketing efforts are managed by different teams, you are marketing to a common customer and you should work together to create a common profile.
Match Backs can identify which customers are responding to a postal mailing or other offers and/or sources. Differentiating between internet buyers and internet buyers that are a result of a direct mailing is essential for marketing campaign development. As different marketing approaches may be taken for direct mail buyers versus buyers from other sources, knowing the true source of yours sales is critical. Consider: - catalogue has been mailed 4 seasons, but you haven’t received a single mail order from Jenny Arborly. - Jenny Arborly loves browsing your catalog, and every time it arrives, she is inspired to check out your offers online! Don’t stop mailing – she’ll stop visiting your website! Jenny Arborly is an internet purchaser who is prompted by your catalogue to buy online.
Continue mailing to all your customers and be diligent about matching back to source codes. You must also continue offering a range of response devices. Print a mail order form that can be used by your customer, or her sister or mother. Publish a telephone number where she can call with orders, questions, concerns or special requests. Give her choices of how to get in touch – but make sure that there is communication across all vehicles.
Reduce operational costs associated with multiple payment channels Find a way to share payment information across your entire organization. Obtaining a helicopter view of payment activity will help you understand better all the different ways your client might want to hear from you.
Preferences vary with regard to how people pay from region to region and country to country. These preferences are influenced by many things: attitude toward debt, access to technology, purchasing habits and tradition are just a few. Honouring the internet comfort level and payments culture of target markets will result in higher sales and will often lower costs. • Increase confidence of potential buyers • Increase number of available buyers, eg. people who don’t have or don’t use credit cards • Demonstrate sensitivity to local habits • Some local payment methods are more secure or less expensive than credit cards While cost analysis is beneficial, avoid being penny wise / pound foolish. If accepting local currency payments of a particular type will lift sales by 4% to 24%, then don’t worry if the payments will cost a little more to clear.
Once you have a picture of how response channel will work, and the payment options that might be used – you need to decide how you will build a payment profile for each customer in a way that can be securely shared throughout your organization. Most payment processors will have an API that can be integrated with your ideal order management system. If not, move on. You will never build a holistic view of your customer if you aren’t able to import the information you need from your payment processor like – are the customer’s checks clearing okay, or are they returned unpaid. Does the customer have a habit of charging back transactions ? Make sure that your payment processor can work with payments from all your channels, in all your markets. Having a wonderfully clever online payments specialist will not help you if you are accepting orders in person, over the phone, and through the mail. Cover all contingencies. You want to be able to send payment information in batches, process in realtime over the internet, authorize cards for telephone orders. You want to be able to accept credit cards, debit cards, cheques and postal orders.
What is the best way to share payment information across various response channels? Data tokenization can help you to create convenient customer profiles that inform your call centre, your internet order system and your direct mail order processing team. Instead of storing sensitive payment information so that you can complete repeat sales, ask you payment processor if they can supply a token or template that refers to the original payment details without exposing yourself to risk data theft. With data tokenization, you don’t need to store payment details For example, a customer shops online and pays by credit card, you could save the customer information across multiple channels. Instead of viewing this customer through the lens of the online channel you can now create a more comprehensive picture across all channels. Do they sometimes pay by card and sometimes by cheque? This can be noted, too.
Direct Marketing Theatre; How to build a payment system that supports and enhances your response channels
How to Build a Payment S ystem that S upports and Enhances YourResponse Channels Brian Weekes V International Development P PacNet Services Ltd.
Multi-Channel / Cross Channel Channels = Choices There are ever more new and innovative ways to reach more customers in more places. •Make it easy for each consumer to use their preferred ways of research and response •Be wary of falling into ‘silo behaviour’ for any aspect of your business – including payment.
Are you with me?• Deliver a clear message across channels with consistent pricing and levels of service.• Share information from multiple channels to develop a true portrait of your customer.
• Silos create an atmosphere in which your valuable customer information exists in aThe Pitfalls vacuum of Silos • Silos create a one dimensional view • Your investment doesn’t truly pay off if you cannot create a full portrait of your customer
How do you reach your customer? How does your customer reach you? • Consider: - catalogue has been mailed 4 seasons, but you haven’t received a single order by mail from Jenny Arborly. - Jenny Arborly loves browsing your catalog, and is inspired to check out your offers online! Don’t stop mailing – she’ll stop visiting your website!
Integration• Goal is to bring all channels together for a fluid, seamless offering.• Spend time coordinating your marketing channels for better results.• Continue mailing to all your customers and be diligent about matching back to source codes.
Response Channels• Each channel merits its own response device – but leave an an element of choice.• Reduce operational costs by sharing payment channels across different response channels.
Understand Payment Preferences for each Response Channel • Internet sales, Telephone Sales - credit card processing, direct debit • Mail Response – cheque, credit card and postal order • Modern Catalogue sales – expect response by phone and mail and internet
Build Y Payment System our • How will you handle each type of order? • Access the resources you require to incorporate each payment method. • Give yourself lots of time prelaunch to implement and test your payment system.
Put Your Payment System to Work• Data tokenization can help you to createcustomer profiles•With data tokenization, you don’t need to storepayment details•Assists with PCI compliance; you are not cominginto contact with sensitive card data• Another benefit is that you can save customerinformation with the token number as a reference• For example, a customer shops online and paysby credit card, you could save the customerinformation across multiple silos. Instead ofviewing this customer through the lens of theonline channel you can now create a morecomprehensive picture across all channels.
A Holistic V of Y Customer iew ourBy viewing your customers through an integrated lens, you can market to each individual much more effectively.
True integration spells big rewards• Monitor activity across all channels• Interpret customer’s buying habits and streamline your campaigns in response• Work smarter, not harder – these strategies directly affect the bottom line
Thank You!Brian Weekes,PacNet Services Ltd.Brian@PacNetServices.comTFM&A Stand F42 Photo credits: “Silos” by Thing Three