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Multi-channel marketing Heli Aaltonen
The document discusses multi-channel marketing, outlining its importance in consumer and corporate behavior, and the motivations behind its implementation, including economic, customer-driven, and competitive factors. It identifies four customer search strategies and emphasizes the need for companies to provide seamless communication and support through various digital channels. Additionally, it highlights the challenges in managing these channels and the necessity for coordinated strategies to meet customer expectations.
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Multi-channel marketing Heli Aaltonen
- 1. Heli Aaltonen 2018 Multi-channelmarketing in sales, distribution, communication and customer support Principal lecturer , DSc. (Econ.) Heli Aaltonen Artevelde University College International Days 2 – 4 May 2018 Gent, Belgium
- 2. Heli Aaltonen 2018 Multi-channel marketing Whatdigital channels companies use? How customers search information for their decision making process? What motivates companies to implement multi- channel marketing ? The main topics in the lecture What are the basic concepts of multi- channel marketing? How customers’ needs for content meet companies’ objectives?
- 3. Heli Aaltonen 2018 Objectives?After two sessions… You are familiar with features of both consumer behaviour and corporate behaviour in multiple channels - You understand the concept of multi-channel marketing - You know what motivates companies to implement multi-channel marketing - You can identify four customers’ search strategies the basis for multi-channel marketing - You are familiar with four digital channels model - You are familiar with channel coordination challenges
- 4. Heli Aaltonen 2018 Howdo we study today? 9.00 – 10.30 • Three brief lectures, three run-through + reflection 11.00 – 12.30 • Case study in small groups, discussion
- 5. Heli Aaltonen 2018 Themain setting and viewpoints How to keep up with competitors and industry standards? A company's viewpoint: What are the most profitable ways to distribute, sell and communicate with customers? Customers’ viewpoint: What are the most convenient and economic ways to buy, gain information, gain support, discuss, provide feedback… How to avoid conflict with partners and intermediaries?
- 6. Heli Aaltonen 2018 Whatare the basic concepts? Multichannel marketing means that a firm • simultaneously offers their customers and prospects • information, products, services and support (or any combination of these) • through two or more synchronized channels. (Chen & Lamberti 2016)
- 7. Heli Aaltonen 2018 Multi-channelvs omni-channel? Multi-channel is the company’s point of view Blending various distribution and communication channels for the purpose of marketing Omni-channel is the customer’s point of view Omni-channel seeks to provide customers a seamless shopping experience A nice video clarifying the terms multi-channel and omni-channel https://youtu.be/44rQux8Jfps
- 8. Heli Aaltonen 2018 Whatare the basic concepts? • In multichannel marketing a channel’s role in distribution and communication is blended together • In cross-channel behaviour consumers cross many times between the channels (Chen & Lamberti 2016) distribution communication distribution communication distribution communication
- 9. Heli Aaltonen 2018 Consumers’cross-channel behaviour?
- 10. Heli Aaltonen 2018 Basicchannel types: channel variety and channel usage (Chen & Lamberti 2016) Massmedia Outlets E-mail Callcenter Website Socialnetwork Industryspecific Mobile Webapplication Channels carry out • Distribution/ transactions • Practical information > to facilitate and fulfil transactions • Relational communication > to develop customer relationships
- 11. Heli Aaltonen 2018 Basicconcepts: sales and delivery channel systems (Eyuboglu et al. 2017) Manufacturer Customers Sales agent/ Broker Distributor Distributor Sales agent/ Broker Sales office/ e-commerce Sales force 1 2 4 53 1 2 3
- 12. Heli Aaltonen 2018 Whatmotivates firms to implement multichannel marketing? 1. Economic- driven motivations 3. Competition and industry standards 2. Customer-driven motivations (Chen & Lamberti 2016)
- 13. Heli Aaltonen 2018 Whatmotivates firms to implement multichannel marketing? 1. Economic- driven motivations • Cost savings • Identifying the most profitable customers through segmentation • Maximizing market coverage (market expansion) • Increasing revenues • Efficiency through economies of scale • Exploiting synergies (Chen & Lamberti 2016)
- 14. Heli Aaltonen 2018 Whatmotivates firms to implement multichannel marketing? 2. Customer-driven motivations • Better customer experience – Select the preferred channel – Multi-channel utility along the purchase process • Customer engagement • Customer satisfaction • Customer loyalty (Chen & Lamberti 2016)
- 15. Heli Aaltonen 2018 Whatmotivates firms to implement multichannel marketing? (Chen & Lamberti 2016) 3. Competition and industry standards • Pressure of competition • Industry standard = new channels have already emerged or they are already widely diffused
- 16. Heli Aaltonen 2018 Tosummarize - Consumers cross between the channels - The main motivations are economic-driven, customer-driven and competition-driven
- 17. Heli Aaltonen 2018 Thestarting point for an effective multi-channel strategy • How customers search information and make their choices in purchasing process • Customers do not choose specific channels but – they look for the environment that supports their requirements for interaction the best • Customers have become experts since sources of information have multiplied • Customers are less receptive to business offers and atmosphere elements of physical spaces • Only a small amount behave as “single-channel” customers • There are remarkable differences between sectors if people carry out transactions on the web or in stores. (van der Veen & Ossenbruggen 2015; Jeanpert & Pache 2016)
- 18. Heli Aaltonen 2018 Customers’four search strategies Convenience seekers Information seekers Peace-of-mind seekers Reassurance seekers • How targeted or exploratory is information searching • How much customers rely on themselves and others (van der Veen & Ossenbruggen 2015)
- 19. Heli Aaltonen 2018 Convenienceseekers Convenience seekers • How targeted or exploratory is information searching • How much customers rely on themselves and others • Often know what they want • They perform targeted searches > goal-oriented. • They need simplicity and speed in their choices • They arrive relatively easily at their purchase decision • They often consult physical provider and use many channels • Internet solutions should promote dialogue (van der Veen & Ossenbruggen 2015)
- 20. Heli Aaltonen 2018 Informationseekers Information seekers • How targeted or exploratory is information searching • How much customers rely on themselves and others • They focus most on the Internet channel in their search • Often it is the only channel • Self-service • They rely on themselves in decision making • Information should be freely accessible and complete (van der Veen & Ossenbruggen 2015)
- 21. Heli Aaltonen 2018 Peace-of-mindseekers Peace-of-mind seekers • How targeted or exploratory is information searching • How much customers rely on themselves and others • They often search for good advice • They purchase more frequently from personal providers • Less intensive channel use • Offline shops and service are important (van der Veen & Ossenbruggen 2015)
- 22. Heli Aaltonen 2018 Reassuranceseekers Reassurance seekers • How targeted or exploratory is information searching • How much customers rely on themselves and others • True multi-channel users • They spend time exploring the market • Security and risk aversion are important • They frequently consult their social contacts • They rely on others in their decision making • They value services verifying information and thus diminishing risks (van der Veen & Ossenbruggen 2015)
- 23. Heli Aaltonen 2018 Tosummarize… Customers’ search habits are the starting point for the multi-channel strategy Companies’ should offer information, dialogue and support to meet various search habits
- 24. Heli Aaltonen 2018 Digitalchannels and digital touchpoints Digital channels are routes of communication between an organisation and its customers • technology-based platforms • that use the Internet to connect with customers • provide a range of different content and purposes • facilitate communication with a range of different interaction levels. A digital touchpoint is an individual channel, while a group of touchpoints is called digital channels (Straker, Wrigley & Rosemann 2015)
- 25. Heli Aaltonen 2018 Challengeswith digital channels and touchpoints? • How to engage customers? • How to create valuable content for them? • How to integrate isolated channels? – digital channels are often managed like traditional one-way communication channels – they do not connect with each other • Companies may overuse of digital channels – excessive, uncoordinated online presence “Always on” customers? • Expect companies responding and interacting with them immediately and 24/7 • Since companies offer various channels for interaction (Straker, Wrigley & Rosemann 2015)
- 26. Heli Aaltonen 2018 ”Alwayson” customers Reply Speedy Reaction 24/7 Fast Quick (Straker, Wrigley & Rosemann 2015)
- 27. Heli Aaltonen 2018 Outlets Callcenter Website Verticalchannel management Cross-functional channel management (Straker, Wrigley & Rosemann 2015; Jeanpert & Pache 2016) Typical coordination activities in channel management • Purchasing, logistics, customer data management and brand What is essential to cross-functional multi-channel strategy? • Consumers perception of the multi-channel coherence and • Sales force’s access to real time logistical information.
- 28. Heli Aaltonen 2018 Thedigital channel model (Straker, Wrigley & Rosemann 2015) Customer content needs are • To contact, • To search for information • To build trust • To share interests • To buy Company’s objectives are • To inform • To promote • To gain revenue • To support
- 29. Heli Aaltonen 2018 FunctionalchannelsCorporate channels Community channels Social channels To inform, promote, gain revenue and support (Straker, Wrigley & Rosemann 2015)
- 30. Heli Aaltonen 2018 Corporatechannels Corporate channels (Straker, Wrigley & Rosemann 2015) Typical for corporate digital channels • They are one-way engagement by nature • Customer interaction is low or medium • Typically clear functional purpose such as • Digital catalogues, • Digital ads • Digital feedback forms, • FAQs • Digital magazines • Digital media releases • E-commerce
- 31. Heli Aaltonen 2018 Functionalchannels Functional channels (Straker, Wrigley & Rosemann 2015) Typical for functional digital channels • They are run by one user or company • Customer interaction is medium • Typically – Websites – E-mails, e-news letters – Online store – Applications – Tutorials – Live chat – LinkedIn
- 32. Heli Aaltonen 2018 Socialchannels Social channels (Straker, Wrigley & Rosemann 2015) What is typical for social digital channels? • They are run by an administrator – who is able to delete content or block users • They are driven by company objectives • Customer interaction is high • Users expect something in return of interaction • Typically social media sites (Facebook, Twitter, Instagram, Pinterest, Flickr etc)
- 33. Heli Aaltonen 2018 Community channels Communitychannels (Straker, Wrigley & Rosemann 2015) What is typical for community digital channels? • They are run by a group of users • Their interest is aligned with the company • Privacy settings possible • Comments, ratings, texts, images, videos; • Customer interaction is medium • Typically forums, blogs, YouTube, Vimeo
- 34. Heli Aaltonen 2018 Tosummarize: A company - should not overuse digital channels - should integrate channel management - should take into account customers’ features, content needs and their various ways to search information