The New Rules of Multichannel Marketing Apr 23, 2008 10:40 AM
, By Debra Ellis
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Does it seem like when you understand how everything works,
they change the rules? If so, you had better get used to it. Right now, this
second, someone is thinking about new ways to entice your customers. New
technology opens doors to new channels and opportunities. Business as usual
will never be the same. The rules have changed and will continue to evolve. Are
you ready to play to win?
New channels and technology are creating a virtual marketplace when, where, and
how the consumer wants it. Instead of replacing traditional shopping outlets,
these additions increase our opportunity to connect with our customers. Growth
and profitability goes to the companies who integrate their channels into a seamless
shopping experience.
Business as usual doesn’t work anymore.
Promotional marketing created by a designated department isn’t enough to engage
empowered consumers. They require a 360° approach that includes every
department and touch point.
Consumers love the ability to shop, buy, and return at their convenience. At
the same time, they long to connect with others. Unfortunately, the technology
that provides do-it-yourself service has removed the personal touch. It is time
for all companies to start using their tools to build relationships instead of
simply processing promotions and orders.
Rule 1: Leave Everything Better Than You Find It
The days are gone where people operate in their own little world, oblivious to
things happening elsewhere. The smallest change in one area can have a huge
effect on another. The old rule, “Every man (or company or department) for
himself!” is outdated.
Adopting the “leave it better” rule reduces interdepartmental surprises. When
the philosophy is accepted throughout the company, people think about the needs
of the whole instead of the individual. It benefits every area from
housekeeping to profitability.
Rule 2: Disrupt Business as Usual
The old rule, “if it isn’t broken, don’t fix it,” has been successfully
challenged by a few disruptive thinkers. Amazon, Netflix, and Apple changed the
way we buy books, view movies, and get music. They built their unique business
models by combining working strategies with new technology.
Disruption has to have a purpose to be effective. Change for the sake of change
is not productive. There are different levels of disruption. Most companies
won’t hit product homeruns like iPod or redefine an industry like Netflix. They
will quietly make changes that improve customer interaction. And, they will
enjoy substantial success in the process.
Rule 3: Your Best Customers & Products Are Losing Value
And, their value will continue to decline as channels and shopping
opportunities expand. B.G. (Before Google), most consumers were confined to local
or catalog shopping. Space and cost restrictions limited product selection.
Pareto’s rule worked in that environment. Consistent buying patterns emerged.
Marketing teams used them to predict sales. Inventory management teams used
them to predict demand.
Everything changed when those boundaries disappeared. Consumers are free to
choose where, when, and how they shop. (Not to mention what they pay.) New
buying patterns that affect every business are starting to emerge. This means
that principles we have used for decades to refine our priorities and manage
our resources don’t work in the global market.
Rule 4: Use the Shopping Experience to Keep Customers Coming Back
Deep down, everyone knows that a quality experience is powerful. Have you ever
seen a corporate mission statement that didn’t include service? If we know that
it is important, why does the American Consumer Service Index (ACSI) continue
to decline?
If you are not increasing your corporate value, you are not building a
multi-generational company. Return on investment is important, but it is a
short term gain. A campaign that adds value, builds wealth. Even if it breaks
even or loses money, the long-term gain offsets the loss.
If you don’t understand your customers, you won’t add value to your company.
When everything revolves around sales and response rates instead of building
relationships, your business is transaction based. Long-term success requires
loyalty. It begins by clearly defining your customers’ needs. Then you will
know how to meet their expectations consistently.
Rule 5: Design Business Processes to Improve Customer & Employee
Satisfaction
The new global economy demands efficiency throughout the organization. Low
incremental costs allow extended product lines and competitive pricing. The
automation of business processes improves productivity and reduces costs.
Your employees are the key to customer satisfaction. They need to have the
tools and empowerment to resolve issues, answer questions, and interact with
your customers. Without them, your business is a commodity instead of a brand.
The purpose of every business is to fulfill customers’ needs at a profit. The
business ceases to exist without customers. This reality is often forgotten in
the hunt for more sales at a lower cost.
Adapting Rule 5 is a three-part process: Analysis, Elimination, and
Enhancement. Your goals throughout this exercise are to enhance the customer
experience, improve employee morale, and reduce costs.
Create Your Own Masterpiece
Our world is evolving. The rules that we use to manage our businesses have to
change to match the global market. Our success is dependant on our ability to
adapt. Years ago, Charles Darwin warned us. He said, “It is not the strongest
of species that survive, or the most intelligent, but the one most responsive
to change.”
The barons of the industrial age are extinct. The programmers of the
information age are dated. The future belongs to the few who can merge the best
of both ages into economic advantage. The access to information provided by the
Internet empowers consumers. Ignoring this is corporate suicide.
If you create your own masterpiece, then you are the master. It is impossible
for anyone to duplicate your strategy and corporate culture. It doesn’t matter
where you are today. You can start building the foundation for tomorrow’s
success. It isn’t a project. It is a process that requires attention every day
to move forward.
The rules will continue to evolve. If you create a flexible corporate culture
that adapts to changing customer demands, you will have a sustainable strategy.
Begin with the basics and build a flexible organization.
Debra Ellis is president and founder of
Wilson & Ellis Consulting, a management, marketing and operational
solutions consulting firm based in Barnardsville, N.C. Her new guide, “The New
Rules of Multichannel Marketing” redefines the rules of the multichannel
marketing game. For more information, or to get a copy of the guide, visit www.wilsonellisconsulting.com.
The New Rules of Multichannel Marketing
