For many marketing organizations, implementing multichannel marketing to optimize revenue at the right time in the customer life cycle is an imperative. But it's also an elusive goal. Many marketers believe that multichannel marketing strategy is about allocating budget, assigning channel roles to the team, and selecting and scheduling execution against those channels. However, many marketers often neglect to build the necessary foundation for creating a specific, timely, and sustainable multichannel marketing strategy that produces competition differentiation.
This foundation includes:
- Reviewing and evolving the state of the marketing organization
- Using customer intelligence to apply information to drive engagement, and ultimately a purchase decision, through the right channel
- Implementing a closed-loop system to provide constant feedback on multichannel marketing performance
Putting this foundation in place creates a multichannel marketing strategy framework that will transform your marketing organization into a force that will drive competitive advantage. Without it, the marketing organization has no basis for future growth as the market changes, or a mechanism to make appropriate, quantifiable changes if particular strategies and campaigns don't yield their anticipated results.
Assessing your organization's marketing maturity, along three phases, is critical to transforming your strategy to achieve right-time revenue optimization.
In stage one, companies are product-centric, focused on selling product with a mass market approach. In stage two, marketing organizations shift toward using buyer behavior to gain more customer insight. This insight involves analyzing commonalities among clusters of buyers, e.g. if customer A and B are purchasing a particular product and prospect D looks similar, what did we learn from A and B to offer D. In the final stage of marketing maturity, marketing organizations are able to drive their strategies and tactics to create value optimization, using customer intelligence, at each stage of the customer lifecycle. Stage three of marketing maturity enables marketing organizations to create a one-to-one relationship with buyers.
At any stage of marketing maturity, all marketing organizations have access to data, but few are able to leverage customer intelligence that produces actionable insight to drive marketing strategy. Customer intelligence as a precursor to formulating multichannel marketing strategy, and ultimately tactical execution, is an imperative.
True customer intelligence is multidimensional across a variety of segmentation attributes, buyer characteristics, and customer interactions, and it intersects with business metrics like penetration rates, revenue, and profitability. As a result, it demystifies the execution of multichannel marketing strategies and campaigns. Customer intelligence is a clear indicator in formulating multichannel marketing strategies and then choosing the right set of channels with the right offer, at the right time, to spur buying behavior.
The closed-loop system
Implementing a closed-loop system is the final foundational element to create a strategy that will optimize revenue through multichannel marketing.
For those not familiar with closed-loop systems, this typically means a marketing automation environment that is integrated with a sales force automation or service environment. A system is said to be closed loop if inbound data can be captured and used to target future campaigns, the results of which flow back to the original system (or a related system). In the ideal case, a marketer can track a lead to a sale and a sale to the profitability of an ongoing customer relationship.
Where do closed-loop systems intersect with multichannel marketing, and why should they be part of your marketing strategy transformation? Simply, a closed-loop system is the most adept way to bring together data, customer intelligence, campaigns, and responses, across multiple channels, to measure your organization's performance at optimizing revenue at different stages of the customer lifecycle.
To transform your multichannel marketing strategy into right-time revenue optimization, you need to evolve to a closed-loop system that integrates multiple, heterogeneous data sources to drive high-volume, multichannel campaigns. As a result, a true closed-loop system is pivotal to your marketing strategy transformation. It becomes a foundational element that provides visibility into the actual execution of the multichannel marketing strategy.
To fully optimize revenue and gain a competitive advantage, marketing organizations must embrace the foundational elements of transforming their multichannel marketing strategy. These elements include evolving their marketing maturity, transforming data into customer intelligence, and creating a closed-loop system.
Taking an incremental approach to marketing strategy transformation is important, since marketing organizations are better able to improve their performance over time, while hitting their existing business goals. Short-term improvements produce learnings that meet achievable objectives that, in time, produce big results. Undergoing this kind of marketing strategy transformation creates a sustainable and scalable multichannel marketing strategy over time that optimizes revenue at the right time, through the right targets, and with the right offer.