Multichannel Marketing Flashcards
What is Multichannel Marketing
The practice of interacting with customers using a combination of indirect and direct communication channels and enabling customers to take action in response, preferably to buy the company’s product or service
Purposes of multichannel marketing
Building Customer Relationship
- Maximize effectiveness of every customer touchpoint.
Direct Marketing
- Generating more sales with more opportunities for connection with
targeted customers at various phases of the customer journey.
Distribution Channels Selection
- Relevant information and actions are provided at the respective
digital media channels.
Challenges of Multichannel Marketing
Targeted Messaging
- Customers must receive the message and be attentive, receptive and willing to act
Highly choreographed campaigns
- Marketers must constantly develop and coordinate highly orchestrated touch points and micro-campaigns that span multiple channels fluidly
Marketing response attribution
- Marketers must know what triggered each responses for the channels, campaigns or touch points to assess whether their marketing efforts are getting the best results
Multichannel Marketing Strategies
Create and maintain a single view of the customer across all
channels.
- Help to establish a centralised marketing data mart that consolidates all customer data in one place
Establish a multichannel marketing platform.
- Include all processes and technology on a single platform
Create consistent customer experiences across all channels.
- Powerful differentiator from competitors
- Enhance customer’s experience
Benefits of Multichannel Marketing
Drives increase in sales
More cost-efficient long term
Enables companies to support targeted customer’s choice
Provide quick response to consumers’ demands
More frequent and interactive engagement with audiences
Better data collection and analysis
Allows for re-targeting and re-marketing
Faster and better Return on Investment (ROI)
How do companies use Multichannel Marketing to help them
Companies use it understand a customer’s typical journey in performing a function, for instance finding a suitable product.
This allow them to customise the look & feel of the respective digital media channels according to the customers’ needs.
The multichannel strategy needs to be aligned to the
overall business’ marketing objectives.
How do companies know if the multichannel strategy is effective
Companies will conduct customer data analytics and act on the insights gathered.
What is the Marketing Mix Model
A specific type of statistical analysis used in marketing to understand how various marketing activities, across different channels impact sales and ROI
How does Marketing Mix Modelling work
Phase 1: Data collection using time-series, aggregated data AND/OR self-stated questionnaires to understand consumer behaviour in regards to exposure to advertising
Phase 2: Actual analysis using a regression model in time-series analysis. Involves understanding the optimal mix of marketing variables (the four Ps) as well as forecasting the business impact of integrated marketing campaigns.
Phase 3: Act on the insights
What does the Marketing Mix Model help companies to do
- Analyze marketing and external factor impacts to identify drivers and detractors.
- Plan online and offline investments with recommendations on regions, brands, lines of business, and more.
- Optimize flighting, targeting, and messaging across media to hit revenue and profit targets.
- Forecast business performance based on anticipated marketplace conditions.
What is Attribution Modelling
The method used to measure the monetary impact a piece of communication has on real business goals. For example: sales, customer retention, revenue and profit
What metrics does Attribution Modelling use?
Turnover
Profit
Customer retention
Volume of sales
How does attribution modelling work?
- Implement the right technology to start gathering the information about where the different digital touch points appear in the customer
journeys. (E.g. Tracking tags across online activity to see how users behave) - Analyze the data - The attribution model itself is the set of rules that determine the value of an interaction or touch point in a number of different scenarios.
What is the Last Click Model
Last click assigns all the revenue generated to the last touchpoint before a purchase.
Simple to use but not accurate except for cases where only one piece of marketing is used to drive sales (e.g. flash sale)
Useful for tracking offline sales but does not take into account brand advertising and other activity that contributed to drive awareness before the sale
What is the First Click Model
First click assigns all the revenue generated to the last touchpoint before a purchase, ignoring all other touchpoints experienced by customer.
Works on the premise that since a user first heard of the company from a touchpoint, it is the ultimate cause of their spend
This model is useful when the company is using a single channel strategy.
Last Non-Direct Click Model
The latest click that isn’t a direct visit is attributed all the revenue.
This model allows for customisation according to the business goals but attributes a single channel responsible for the conversion
Linear Model
Revenue is split among all touchpoints on the customer journey.
Works on the premise that every step of the customer journey is equally responsible, recognising the different values of the stages and also the shape of the customer journey
But if one channel appears twice, it is attributed twice and it does not recognise what the touchpoint is trying to achieve.
This model is effective when there is no “hero” or push campaigns in progress.
Positional Model
First and Last Click are worth X% each and the remaining touchpoints shares the remaining % equally.
Takes into account aspects of linear, first and last click models. Does not account for time factor
Time Decay Model
The closer a touchpoint is towards the conversion, the more % it gets.
As it focuses on timeline rather than shape of the customer journey, some touchpoints may be over-favoured
What attribution model is best?
Customised - The common attribution models seek to provide a first step for companies to identify the best attribution model that will work for their business.
Factors to consider when determining which attribution model is best
Time
Channel
Position of channels
Weighting for each channels
Difference between AM and MMM
MMM involves aggregate data and historical, previous data
AM involves one-to-one, user level data and involves real-time analysis of performance data
