"Multi-channel" is going to revolutionise marketing and communications. Again

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’Multi-channel’ is going to revolutionise Marketing and coMMunications. again.

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ConvergenCe between MarketIng and CoMMunICatIons FunCtIons

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what is Multi-Channel Marketing?

The last five years have seen a radical shifting of the marketing and communications landscape, and ‘multi-channel’ as a concept.

according to wikipedia, it can be defined as:

“marketing [and communications] using many different channels to reach a customer.[1] 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. The objective of the companies doing the marketing is to make it easy for a consumer to buy from them in whatever way is most appropriate.[2] “

While ‘multi-channel’ has been around as long as marketing and communications themselves, the world has changed siginficantly in the recent past. That means that the role of the marketer/communicator has got significantly more complicated, and the expectations from customers have evolved significantly. There’s not only an opportunity to engage across multiple channels, but an expectation - and a need.

In a recent Incite Webinar (available to listen for free here) Linda Rutherford, Vice-President of Communications and Strategic Outreach at Southwest Airlines, said that

“The way the world used to be, when you tuned into television news, 90% of the population saw it. That’s simply not the world of today. There are so many different ways to reach people, to share with them, and to tell them about your brand. In recognition of that fragmented world, it requires us to think about what a multi-channel approach can look like. Our mantra is to ‘be where our customers are’”

Jerome Hiquet, Vice-President of Marketing at Club Med North America, agreed with her in the same discussion:

“Customers are multi-channel, they use lots of channels to reach us - but they want to speak to one brand. So multi-channel strategies are going to force each brand to take a ‘step change’. To engage, we must be everywhere, and we must be involved in ‘participative marketing’ - so multichannel and multi-directional.”

It seems that if you want to reach your customers as efficiently as previously, you can’t use the tried and tested methods that worked previously.

why should you care?

Alongside this increasing pressure and need to extend your multi-channel abilities, there are huge opportunities available Technological advances have led to not only meant that your customers and stakeholders are now accessible in ways not possible even five years ago.

As a marketer or communicator, you can now get in touch with people when they want, in the way that they want - and when they are most likely to engage with you.

You can identify consumers from their travel habits and remind them to pick up a coffee from your (conveniently located) coffee shop as they leave the subway.

When they talk over social media about their need for a new work shirt, you can join the conversation and point out your excellent bespoke service.



As they watch the Super Bowl, and get confused about the power outage and go to a social network to find out more, you can quickly respond with a brand message taking a sideways look at the issue. Oreo did this, and drove more awareness for their brand than any number of SuperBowl advertisements.

These single channels all offer fantastic opportunities for the savvy brand to engage.

And yet they are far more powerful together.

When ensuring all channels - social, local, email, direct mail, broadcast, online ads, mobile and more - work together, you are able to create campaigns and messages more pervasive, personalised and engaging than one could have dreamt of less than a decade ago.

Challenges in multi-channel

It appears that there is little argument - cutting edge marcomms execs must deliver a multi-channel experience in this new world of brand engagement.

Yet that presents challenges to overcome. The first, and most obvious, is complexity. A fragmented marketing and communications landscape means you need to:

• Understandwhichchannelisappropriateforwhichmessage

• Howtodrivepeoplefromonechanneltoanother

• Retainconsistencyoverseveralchannels

• Trackandunderstandwhichchannelsareworkingandwhicharenot

This is evidently no easy feat. And corporate practitioners recognise this:

Top 3 issues for you in 2013

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50%

30%

70%

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The chart above shows which issues are identified as a ‘Top 3 Priority’ for the coming year



As you can see from the chart above, multi-channel marketing is a fundamental focus for both marketers and communicators in 2013.

Overall, it comes second in the list of corporate priorities, behind being more customer-centric, and tied with building unique customer experiences for customers/stakeholders.

NB: Importantly, it is worth acknowledging that ‘building unique customer experiences’ and ‘multi-channel’ are inextricably linked. ‘Multi-channel’ is the fundamental tactic corporations are using to build these ‘unique customer experiences’.

there’s a difference

It’s interesting to consider the differences in approach that this chart highlights between the marketing and communications functions in 2013.

In research conducted by Incite over the last few months, as we discuss here, there is a notable synergy between marketing and communications functions. The two departments have remarkably similar priorities, and indeed, there is an argument to be made that the dividing line between the two functions is blurring.

This blurring has come about through the increasing need for companies to speak ‘with one voice’ to customers, as Hiquet highlights above, and equally to the drive to build more detailed pictures of consumers through better internal data sharing.

Yet evidently there are still differences. The relative importance of establishing multi-channel campaigns is one. As Chart 1 shows, Multi-channel campaigns are named as a ‘Top 3 issue’ by over half of all marketers surveyed. Yet for Communicators, this figure drops to just over 20%.

That’s a remarkable difference in approach - indeed, it’s the most significant difference in approach across all issues in the chart. There is no greater gap between marketing/communications functions than when it comes to multi-channel.

Why is this? We don’t know. We would love you to let us know what you think.



but don’t be misled - this is critical for everyone

OVERALL: Importance of Multi-Channel

41% CRITICAL14% NEUTRAL

45% IMPORTANT

When asked in isolation about the importance of multi-channel in outreach campaigns, both marketing and communications functions were more forthright.

Overall, 41% of respondents said it was ‘critical’ in 2013, with a further 45% classing it as important.

COMMUNICATORS: Importance of Multi-Channel


42% IMPORTANT

Of those respondents working in the Communications function, the numbers were slightly lower.

Nearly a fifth of respondents said that Multi-channel was not important, or they were neutral about it. Yet well over a third still said that multi-channel communications was critical, and 42% said it was important.

MARKETERS: Importance of Multi-Channel


49% IMPORTANT

Marketers, understandably considering chart 1, were more committed to multi-channel. A full 42% said it was critical to their role in 2013, and 49% said it was important. That leaves only a rather small 9% of our entire respondents who either class multi-channel as ‘unimportant’, or something they’re neutral about.



Putting their money where their mouth is

“ I expect my company’s resource spend on multi-channel will increase over 2013”

17% NEUTRAL9% DISAGREE

74% AGREE

And they put their money where their mouth is. An enormous 74% of people who attended our recent webinar on multi-channel marketing (recordings available for free, here) expect their company to increase resource spend on multi-channel over 2013.

Both Hiquet and Rutherford were surprised by this finding.

Along with many participants in the webinar, both Vice-Presidents suggested that rather than increasing resource spend overall, they were instead looking at reallocation. Finding areas of inefficiency, and reallocating resource from underperforming areas of marketing into multi-channel.

Nevertheless, Hiquet still had advice for those looking to prise open the board’s purse strings. He went to management with the message:

“If we work better in multi-channel, we can expect an increase in terms of brand attachment, but also in repurchase rate. We tried to demonstrate that by increasing repeat business, we should use that to increase our resources.”

so, are you prepared?

“ Our multi-channel strategy is not as developed as it should be”

20% NEUTRAL4% DISAGREE

76% AGREE

You feel prepared for this? If so, you’re in the minority.

A full 76% of our respondents do not feel that their multi-channel strategy is ‘as developed as it should be’. Only a tiny 4% were confident enough to say that they were where they needed to be.



According to Hiquet and Rutherford, this isn’t surprising. Indeed, both expressed the view that a brand will never be ‘done’ when it comes to multi-channel marketing, with new channels and opportunities to connect arising quickly and consistently.

Hiquet said of the findings:

“It’s a proof of humility, and with all these touchpoints to manage, to be consistent, to have the right content and targets, it’s very tough. I do think that everything changes so quickly, and in terms of new trends, new actors in the market, we need to be very humble in what we can do. I think people are saying they can improve, and they are focusing on doing that.”

Rutherford agrees with him:

“I’m not surprised - I don’t know that we’ll ever be done in this new world we live in. When you say ‘multi-channel’, there are new ways to engage your audience with your brand that are popping up every day. In the last 6 months, we’ve spent time playing around with Vine and Viddy and other opportunities to engage.The speed, and the creativity, with which things are moving these days means we are constantly going to be learning about these new opportunities to connect, I don’t think we’re ever going to be ‘done’”.

Conclusion

Getting better at multi-channel marcomms is evidently a significant challenge for your peers. It’s also undeniably a key focus for 2013 - whether one works in marketing and communications.

There are huge advantages to a more multi-channel approach to your outreach program, not least the increased pervasiveness, personalisation and engagement levels when one can orchestrate a truly multi-channel campaign.

And yet the challenges - notably the huge upscale in complexity inherent in marketing and communicating across such a fragmented landscape - leave many feeling they simply are not prepared for this shift.

That is why we’re running a large-scale business Summit discussing this very issue. We have Chief Marketing and Communications Officers from Sony, L’Oreal, Aflac, Arby’s restaurants and more sharing their insights on this topic. If you want to find out more, you can download a ‘sneak peek’ for marketers here, and for communicators here.

Secure your place with our ultra-early bird passes and save $895 on your ticket at www.incitemc.com

The Incite 2013 Summit

incitemc.com #IMCSuMMItSeptember 18-19, New York

Your sneak Peek into how the Incite 2013 Summit is shaping up!

Map the Future of Multi-channel, Customer-centric Marketing and Communications

at a glance: Insight on some of the big issues…AGENDA

The Customer- Centric Future

Change your corporate culture to focus better on the customer

Moving Customer-Centric Without Causing Chaos

Get a customer-centric internal organisation that’s simple, not complex

How To Listen, So You Can Talk Back Better

Get more useful insight about your customers, and use it to do better Communications

Build Unique Customer Experiences

Manage a complex Communications landscape and integrate many channels to build one effective stake-holder experience

Less Silos = More Success

Break down internal barriers and get everyone singing from the same hymn sheet

we have already confirmed to contributeSPEAKERS

sony electronicsMike FasuloChief Marketing Officer

aflacMichael ZunaChief Marketing Officer

searsJennifer DominiquiniChief Marketing Officer (Seasonal and Outdoor Living)

restaurant.comChristopher KrohnChief Marketing Officer

arby’sRussell KleinChief Marketing Officer

basFRobin RotenbergChief Communications Officer

MetLifeClaire BurnsChief Customer Officer

ChobaniNicki BriggsChief Communications Officer

ericsson/CoinstarNora DenzelNon-Executive Director

CitigroupBen EylerVice-President, Marketing and Communications

barnes & nobleSasha NorkinVice-President, Digital and Channel Marketing

Home depotFred NeilVice-President, Marketing, CRM and Customer Insights

diageoMichelle KleinVice-President, Global Marketing (Smirnoff)

Hewlett PackardRob WaitVice-President, Marketing

whole FoodsBill TolanyHead of Integrated Marketing

Yum brandsAmy SherwoodVice-President, Public Relations and Consumer Affairs

sprintDoug DuvallVice-President, Corporate Communications

Cardinal HealthcareJill LaNouetteVice-President, Public Affairs

Mcdonald’sHeather OldaniHead of US Communications

nestleDoug HawkinsVice-President, Public Affairs & Policy (Nutrition)

Who are we?• Acommunityofcorporatemarketingandcommunicationsprofessionals

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• Atoolforyoutodrivethefutureofmarketingandcommunications

What do we do?• Webringtogetherseniormarketingandcommunicationsexecutives-

online and in person

• Weworkwithyoutoaskthemthequestionsyouneedanswering

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we incite challenging debate. we find the best corporate minds. You ask the questions.

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"Multi-channel" is going to revolutionise marketing and communications. Again