plug the leaks - drive the roi back into your channel
TRANSCRIPT
JOIN THE CONVERSATION ON TWITTERQUESTIONS? COMMENTS? JOIN US LIVE ON THE 10TH FROM ST. LOUIS
#EngagingTimes
Go to: http://www.twitter.com/ Enter #EngagingTimes in search box Hit Search. Will need to refresh
Use #EngagingTimes to comment
Enter #EngagingTimes in search box
1
PLUG THE LEAKS:
4 STEPS TO IMPROVE CHANNEL ROIMARCUS TEWKSBURY, ALTERIAN JOHN SOUTH, RAZOR
IMS, ST. LOUIS DECEMBER 10, 2009
CHEESEBURGERS & STOCKSWHAT DO THESE THINGS HAVE IN COMMON?!?
3
SELLING IN CHANNELSTHE FLOWS RUN FROM NATIONAL TO LOCAL THROUGH MANY CHANGING HANDS
Awareness
Interest
Desire
Acquisition
Heat Map
Chain, Carrier, Supplier Distributor,
Master Franchisor,Co-ops, etc.
Agents, Stores, etc.
State Farm, Dominos, Fidelity, etc.
SBA, Mercury Insurance , etc.
Ed Bailey
National
Local
The‘Final Mile’
4
Search
Traditional
Display
COST OF FEEDING THE FUNNEL GROWINGLEAD GENERATION ACTIVITIES ARE ALL BECOMING MORE EXPENSIVE
Awareness
5
SPENDING IS UP ACROSS THE BOARD… AND ITS SPREAD ACROSS ALL THE PLAYERS
6
Traditional
Display
Search
Website
National Local
$470m
$20m$170m
$50m$40m
$50m $25m
$5m
$25m $30m
$40m
$10m $5m
$170m$300m
WHERE IT’S BEING FELTLIFE IN THE CHANNEL IS GETTING TOUGHER
Ed Bailey Snapshot
•Title: CEO of Bailey Enterprises
• Stores: 63
• Year in Business: 25
• Annual Revenue: ~$150m
• Net Worth: ~$500m
• Former Occupation: Marine
7
SYSTEMATIC PROBLEMSINDEPENDENT OPERATIONS STOKES INEFFICIENCY AND DUPLICATION
Marketing Fulfillment
Local Search
Limited Print
Brand Traditional180 °
Carriers / Suppliers
90 °
Distributor
90 °
Lead
Qu
eu
eLe
ad Q
ue
ue
Lead
Qu
eu
e
Agent
In order to close the loop, or in other words connect the prospect behavior and marketing programs, you need to be able to connect an initial prospect to the final sale. In the existing model this is very complicated because the interaction data is captured across three different organizations and three or more systems..
1
1
1
Data Islands2 Inconsistent Branding
While corporate marketers and agencies can do a great job developing compelling story lines and branding it can be exceedingly difficult to push it down the line through the channels. Not only is there a people / communication issue as you cross organizational lines, but at times the motivations of distributors and agents may not be in line with marketing at the suppliers.
Lead Handoffs
Necessarily, in this structure leads must be passed off between the organizations. This has many implications, but one is that it certainly extends the customer life cycle.3
3
4
Competition
And finally, at times not only can the channel members duplicate their efforts, sometimes they can even be competing with one another like with search.
8
PROBLEMS QUALIFYING THE INABILITY TO CLOSE THE LOOP INHIBITS THE ABILITY TO TRULY QUALIFY LEADS
Marketing Fulfillment
Local Search
Limited Print
Brand Traditional180 °
Carriers / Suppliers
90 °
Distributor
90 °
Lead
Qu
eu
eLe
ad Q
ue
ue
Lead
Qu
eu
e
Agent
Data Islands + Multiple Handoffs = Big Problem
The inability to relate activity to financial results, and correspondingly the ability to score, results in poor leads being injected into and then passed through the channels.
In turn, the cycle of poor leads results in slower responsiveness which further lengthens the already long process and ultimately lead decay.
9
NET EFFECT DECLINING MARGINSWE ARE SPENDING MORE TO MAKE LESS (OR SOMETIMES THE SAME)
Awareness
Interest
Desire
Acquisition
Profit
10
TRUST FACTORBUILDING TRUST AND LOYALTY IN THE CHANNEL IS A CHALLENGE
11
REDUCE HANDOFF LAG… BY AUTOMATING OR ELIMINATING STEPS IN THE PROCESS
Shorten the cycle… …. with technology
12
SQUEEZING PARTNER MARGINSSUPPLIERS BEGIN TO OFFER MORE SERVICES AND PASS ON THE COST
Local Search
Limited Print
Carriers / Suppliers
90 °
Distributor
Lead
Qu
eu
eLe
ad Q
ue
ue
Marketing Fulfillment
One approach some suppliers are taking is to beef up their co-op marketing offerings in part to eliminate the need of like services at the distributor level. Of course, in so doing they will also push the cost to the distributor in the form of lower margins.
35% Supplier to Partner
54% Partner to Customer
11% Supplier to Customer
Channel Demand Creation
Source: SeriusDecisions
Best-in-class suppliers are also leveraging their channel to create demand, with the majority of their channel incentives being applied towards
PARTNER-TO-CUSTOMER demand creation programs.
13
ONE BRAND’S JOURNEY
THE VISION: ALIGN THE CHANNEL
FOR HI-IMPACT PROSPECTING & ROI
15
Local is the new National
Consumers expect messaging, offers and customer service that is relevent to their life
They don’t care about the dynamics of the distributed organization
To them it’s all the same brand
KEY COMPONENTS TO PAYING OFF
LOCAL PROSPECTING VISION
16
Relevant Messaging, Offers And Service To
Local Consumers
Insight, Strategy & Planning
Organizational Alignment & Governance
REAL-WORLD ACTIVATION
OUR EXPERIENCE BRINGING THE SOLUTION TO LIFE
BRINGING THE SOLUTION TO LIFE: THE CLIENT PROBLEM
• The client problem:
18
Weaknesses
• National campaigns were not
activated locally and there was an
overall lack of field participation in
local marketing efforts
• Local Web sites were all over the
board and didn’t support brand –
local sites couldn’t track leads or
conversion
• ROI reporting wasn’t available
• Customer marketing data was
decentralized and in a variety of
formats
• Limited “variable data” marketing
/ no use of segmentation data for
targeting
NATIONALDriven by the
corporate office
LOCALDriven by local
affiliates
Customers and Prospects
Strengths
• National branding
campaigns were solid
• Current digital efforts
covered the basics well
(Web, E-mail, search,
display, etc.)
• Centralized campaigns
for traditional media
were also effective
(broadcast, direct mail,
print, etc.)
• The network of sales
managers, players in the
distribution channel and
even top producers were
engaged
BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
19
National DB
Field Rep 1 DB
Field Rep 2 DB
Field Rep 3 DBcampaign
campaign
Field…n DB
Field Rep 3 DB
Field Rep 2 DB
Field Rep 1 DB
National DB
coordinatedcampaignswith targeted messaging
Fiel
d A
ssig
nm
ent
FROM … TO…
• Separate campaigns
• Multiple DBs / multiple formats
• Random (uninformed) messaging
• Coordinated campaigns
• Unified data structure
• Targeted (informed) messaging
BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
20
FROM … TO…
• Confusing Web experience
• Poor trackability
• Competing online marketing
• Coordinated Web experience
• Sophisticated tracking
• Optimized marketing spend
BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
21
FROM … TO…
• Customization/localization (local toolkit)
• Strengthen co-op community and dialogue
• Pull through, measure usage, on demand shipping
• Bottom-up local co-op marketing plans
• Shared learning/best practices
• One size fits all
• Weak coop community and little dialogue
• Push all materials to all field reps
• No local marketing plans
• No visibility into best practices (distrust)
BRINGING THE SOLUTION TO LIFE: AN INTEGRATED APPROACH
• Our integrated and localized solution:
22
Data driven marketing
• Localized content
• Consumer attributes
• Past behavior
• Products purchased
• Predictive modeling
Tracking & optimization
• Ad performance
• Call logging
• Prospect tracking
• Conversions
• Iterative adjustments
BRINGING THE SOLUTION TO LIFE: THE RESULTS
• Program results:
– Improved field rep flexibility, campaign tracking, and
participation in local marketing
• Customized marketing packages
• Template-driven Web sites with local content
• One-on-one market planning
– Improved consumer experience due to marketing consistency
and higher messaging relevency
– Increased efficiency of a coordinated marketing spend
(national, coop, local)
• Reduced search overlap
• Targeted display media
– Identification of opportunity areas for improvement
• Answer the call and follow-up promptly
• Be available to close the deal
– And most importaly, higher conversion rates
23
12% initial lift
SUCCESS FACTORS TO PAYING OF THE VISION
1. Listening to needs from both sides
(corporate and the field)
2. Solidifying the consistency of the
consumer experience
3. Taking the time to develop an integrated
multi-channel marketing
plan and communication architecture
4. Investing in the data, systems, and
technology required
5. Placing a priority on the need to track
conversion results (for both phone and
online) and to then optimize the media
accordingly
6. Delivering on the promise of customized
messaging where possible
7. Working with the field one-on-one in the
planning, implementation, monitoring,
and evolution of localized campaigns
24
Relevant Messaging, Offers And Service To
Local Consumers
Insight, Strategy & Planning
Organizational Alignment & Governance
THANK YOU!
• Marcus R. Tewksbury
• Director of Customer Intelligence
• Alterian
• Email: [email protected]
• IM: [email protected]
• Twitter: @tewksbum
• John South
• Chief Digital Officer
• Razor
• Email: [email protected]