Category Archives: Channel Strategy

The Omnichannel Trap

Related image[as originally appeared in Marketing Insider)

No word falls more trippingly off the tongue in marketing circles than “omnichannel.” It’s the stated ambition of many a marketer, and taken as a given among the conferences, summits, and pundits beckoning to marketers. The need for brands to take an omnichannel approach is unquestioned, although there’s much to question about it.

That’s because an omnichannel strategy is overly ambitious and lazy at the same time. It’s overly ambitious because it injects complexity and strain into marketing systems that already require far more layers of infrastructure and effort than they did 10 years ago. On a purely practical basis, an omnichannel mindset is a game that can never be won. The new marketing ecosystem generates a constant introduction of new channels and sub-channels. If marketers try to keep a hand in them all, resources will be stretched to the point of ineffectiveness. It’s lazy because it neglects the strategic effort required to understand what combination of channels are most essential to the audience, objectives and advantages of the brand. It takes work to understand the ways people come to a brand, and to prioritize where to excel, where to participate, and where not to play at all. So savvy marketers should think about their communications channels the same way they think about their new products. Nobody would seriously propose an “omniproduct” strategy.

In that light, it’s clear that omnichannel starts at the wrong end of a strategic marketing process. It’s like collecting as many tools as possible and then figuring out what to build from them. Strategy is deciding what you want to build, and then assembling the tools most critical to its construction. It’s true that consumers insist on more immediacy and more control of their brand interactions. But the answer to that demand cannot be to attempt to be everywhere the consumer could possibly be. Rather, the challenge is to be where you can most impact a positive customer experience. Being in more places won’t help if it comes at the cost of strong execution and integration.

Several have tried coining the term “optichannel” to replace “omnichannel.” To the extent buzzwords are useful, optichannel at least implies the need for making strategic choices. It requires finding the balance between what a customer wants, what the brand delivers, and what your budget can afford.

Consider these useful questions to develop more strategic channel choices:

  1. How well defined is my audience? Is it mass or niche? Is it easy to identify by demographic, behavior or location?
    • To gauge how much additional value you can derive from an addressable audience vs. a mass audience.
  1. What are the key elements of your customer Journey? Is it a high consideration purchase? How often is the customer in market?
    • To weigh the relative importance of creating deep highly integrated experiences vs a breadth of highly visible touchpoints.
  1. Are there common triggers to purchase? (e.g., a life event, a problem, a seasonal need, a cultural cue)
    • To identify the times and places most conducive to a brand interaction.
  1. What are the key incentives and barriers to brand consideration? (e.g., understanding how it works, knowing what others think of it, seeing what it looks like, being easy to purchase)
    • To understand the channels that are best equipped to drive your strategic marketing challenges
  1. What’s the value of a new customer? How frequently is your product/service purchased and what’s the retention/loyalty rate?
    • To prioritize the channel spend based on expected return on investment
  1. What emotional reward are people expecting from the brand? (e.g., empowerment, connection, status, escape, etc.)
    • To align with the channel environments most appropriate to the brand.

It’s reasonable to suspect that the fervor for the omnichannel gospel comes less from marketers and more from those striving for the marketer’s budget. Omnichannel thinking drives a FOMO mentality that drives spending. More channels, after all, means more to buy: more media, more technology, and more services to execute across them all. The omnichannel trap is rooted in the notion that doing more things does better. The optichannel approach posits that doing things better does more.

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Filed under 21st Century Marketing, Channel Strategy, Innovation

Alexa, What’s My Marketing Strategy For Voice?

Image result for voice activated[As appeared in Media Post’s Marketing Insider]

The architect Louis Sullivan coined the maxim that “form follows function.” In the case of marketing channels, you could reverse that to say function follows form. How you use an axe differs from how you use a shovel because of what the form allows you to do. Similarly, the best use of a billboard is different from the best use of a banner ad because of what the form allows you to do. In order for brands to find success with voice, they have to consider the strengths and constraints of the form.

It may disappoint some marketers to learn that “receive promotions and special offers” is not a popular use case for people interacting with voice-enabled tech. In fact, according to Nielsen’s “Total Audience Report: Q1 2019,” top responses for how smart speaker owners use their devices include searching for real-time information, getting the latest news, making calls and sending messages. If you observe how most people interact with voice channels, it’s initiated as a request or command. This form leads away from using voice for marketing-as-promotion and toward marketing-as-a-service. It’s a medium better built for informing, supporting and responding rather than advertising. With that strategic perspective, brand leaders should look past their advertising teams for inspiration and instead tap into the insights gleaned from service-centric programs like customer service and customer loyalty groups. 

Tapping into the service aspects of marketing will suggest the most likely opportunities to shape positive experiences via voice. There’s a lot of information there that can point to effective brand applications for voice. For example:

  • Does my product/service require set-up?  Can voice instructions walk customers through it?
  • What are my most frequent complaints/issues?  Can voice provide an easier way to resolve them?
  • How, where and when are people using the product/service?  Does that context suggest ways voice could enhance/extend those use situations?

Once you find where voice can add value, it’s imperative that customers know what’s available to them. Brands can enable access to voice-enabled devices through existing communication methods. Product packaging, owner’s manuals, brand apps, and welcome emails are all channels through which companies can promote that they are “voice-friendly.” If done effectively, it should be apparent to consumers where to go and what to say to take advantage of a brand’s voice features.

The new reality is that brand-driven monologues are quickly being replaced by customer-initiated dialogues. Voice can best drive brand value by expanding ways to serve and enhance the customer experience. Those who try to shoehorn this technology into an existing promotional strategy might find silence on the other end.

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Filed under Artificial Intelligence, Channel Strategy, Digital Marketing, Market Strategy, media

The Rise and Fall of Media: The False Choice of the Channel Wars

Image result for battleIt seems anachronistic to ponder the role of traditional communications in the current marketing environment. What benefit can there be in direct mail, in-store marketing, and outdoor advertising in a world of mobile apps,  digital voice assistants, and addressable television? It’s hard for marketers to even mention traditional channels for fear of appearing hopelessly behind. There’s only way to reasonably consider these old standbys. You have to believe in harnessing every tool at your disposal to shape a better experience for customers. For at least the next decade, until the feared robot uprising, those customers are exclusively fellow human beings. And we human beings live in a world that blends the digital and physical environments. So the best marketers will create the best experiences by blending what each brings to that experience. Digital formats provide critical elements like timeliness, motion and interactivity. Physical formats bring texture, dimension and focus. It’s hard to beat the efficiency of email, but it’s hard to beat the response rates of direct mail. The direct mail household response rate is 5.1%, compared to 0.6% for email, and 0.2% for online display. We can deliver a more timely message via mobile, but people are more likely to recall information from a printed page. Some studies say brand recall is as much as 70% higher from a printed message than from a digital message.

But setting physical and digital channels in opposition like that is a trap for marketers.  Imagine asking a professional singer,  who’s trying to build a fan base, to choose between live concerts and studio releases. Anyone from Tony Bennett to Cardi B would say they need both. The job of good marketing is not to take sides between one channels, but to get on the side of the customer.  What combination of channels is going to create the best brand experience for the intended audience? The answer is inevitably a thoughtful connection of traditional and digital communications. Good examples include a website for a resort property that triggers an immersive direct mail piece when visitors show a high level of engagement. Another is a follow-up email to a printed charitable solicitation that reminds recipients of the importance of their mission.  These types of cases have shown time and again that the best result comes from bridging channels rather than relying exclusively on one or the other. One of the most respected prognosticators of the future of marketing, Rishad Tobaccowala, once noted that “while we are surrounded by algorithms that are data driven, digital and operated on silicon chips, we should never forget that people are analog, carbon based and feeling driven.” That means we need to be guided by the full spectrum of the human experience if we’re to create an effective consumer experience. It’s deep in our bones to want something right away. That’s why the power of digital will be ever more vital to any marketing program. It’s also deep in us to want something we can run our hands and eyes over. That’s why the persuasive power of traditional media will never go away. You could say it’s imprinted in us.

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Filed under Channel Strategy, media