Plug The Leaks - Drive the ROI back into your channel
1. JOIN THE CONVERSATION ON TWITTER
QUESTIONS? COMMENTS? JOIN US LIVE ON THE 10TH FROM ST. LOUIS
Go to: http://www.twitter.com/ Enter #EngagingTimes in search box Hit Search. Will need to refresh
Use #EngagingTimes to comment
Enter #EngagingTimes in search box
#EngagingTimes
1
2. PLUG THE LEAKS:
4 STEPS TO IMPROVE CHANNEL ROI
MARCUS TEWKSBURY, ALTERIAN JOHN SOUTH, RAZOR
IMS, ST. LOUIS DECEMBER 10, 2009
4. SELLING IN CHANNELS
THE FLOWS RUN FROM NATIONAL TO LOCAL THROUGH MANY CHANGING HANDS
Heat Map
National
Awareness Chain,
Carrier,
Supplier Distributor,
Interest Master
Franchisor, Ed Bailey
State Farm, Co-ops, etc.
Dominos,
Desire Fidelity, etc.
Agents,
SBA, Mercury Stores, etc.
Insurance , etc.
Acquisition
The
‘Final Mile’ Local
4
5. COST OF FEEDING THE FUNNEL GROWING
LEAD GENERATION ACTIVITIES ARE ALL BECOMING MORE EXPENSIVE
Search Display
Awareness
Traditional Email
5
6. SPENDING IS UP ACROSS THE BOARD
… AND ITS SPREAD ACROSS ALL THE PLAYERS
National $170m Traditional $20m Local
$300m $170m
$40m Mail $50m
$50m Display $25m
$25m Email $30m
$5m Search $40m
$10m Website $5m
$470m
6
7. WHERE IT’S BEING FELT
LIFE IN THE CHANNEL IS GETTING TOUGHER
Ed Bailey Snapshot
•Title: CEO of Bailey Enterprises
• Stores: 63
• Year in Business: 25
• Annual Revenue: ~$150m
• Net Worth: ~$500m
• Former Occupation: Marine
7
8. SYSTEMATIC PROBLEMS
INDEPENDENT OPERATIONS STOKES INEFFICIENCY AND DUPLICATION
Brand 180 ° Traditional
Data Islands Inconsistent Lead Handoffs Competition
2 1 Branding
Lead Queue
Carriers / Suppliers
And finally, in this structure in agencies
Necessarily,at times loop, and other
While corporate thenot only can the words
In order to close marketersorleads must be
channel great job duplicate their efforts,
passed off between the organizations. This
can do a the prospect behavior and
connect members developing compelling
sometimes they can you one is
has many and branding itbe competing
story lines programs,even need to be able
marketingimplications, butcan be that it to
Marketing Fulfillment with one another like with to life
certainly extends prospect search. cycle.
exceedingly difficult customerdown the
connect an initial theto push itthe final sale.
3
line through the channels. very
In the existing model this is Not only is there
Local
90 °
Limited a people / communication issue as you
complicated because the interaction data is
Search 4 1 Print
Lead Queue cross organizational lines, but at
captured across three different times the
motivations of distributors and agents may
organizations and three or more systems..
Distributor not be in line with marketing at the
suppliers.
3
90 °
1
Lead Queue
Agent
8
9. PROBLEMS QUALIFYING
THE INABILITY TO CLOSE THE LOOP INHIBITS THE ABILITY TO TRULY QUALIFY LEADS
Brand 180 ° Traditional
Lead Queue
Data Islands + Multiple Handoffs = Big Problem
Carriers / Suppliers
Marketing Fulfillment
The inability to relate activity to financial
Local
90 °
Limited results, and correspondingly the ability to
Search Print Lead Queue score, results in poor leads being injected
into and then passed through the
Distributor
channels.
90 ° In turn, the cycle of poor leads results in
Lead Queue
slower responsiveness which further
Agent lengthens the already long process and
ultimately lead decay.
9
10. NET EFFECT DECLINING MARGINS
WE ARE SPENDING MORE TO MAKE LESS (OR SOMETIMES THE SAME)
Awareness
Interest
Desire
Acquisition
Profit
10
12. REDUCE HANDOFF LAG
… BY AUTOMATING OR ELIMINATING STEPS IN THE PROCESS
Shorten the cycle… …. with technology
12
13. SQUEEZING PARTNER MARGINS
SUPPLIERS BEGIN TO OFFER MORE SERVICES AND PASS ON THE COST
Channel Demand Creation
Lead Queue
Carriers / Suppliers 35% Supplier to Partner
54% Partner to Customer
Marketing Fulfillment
11% Supplier to Customer
Local Limited Source: SeriusDecisions
Search
90 ° Print
Best-in-class suppliers are also leveraging their
Lead Queue
channel to create demand, with the majority of
Distributor their channel incentives being applied towards
PARTNER-TO-CUSTOMER demand creation programs.
One approach some suppliers are taking is to beef up their co-op marketing offerings
in part to eliminate the need of like services at the distributor level. Of course, in so
doing they will also push the cost to the distributor in the form of lower margins.
13
15. THE VISION: ALIGN THE CHANNEL
FOR HI-IMPACT PROSPECTING & ROI
Local is the new National
Consumers expect messaging, offers and
customer service that is relevent to their life
They don’t care about the dynamics of the
distributed organization
To them it’s all the same brand
15
16. KEY COMPONENTS TO PAYING OFF
LOCAL PROSPECTING VISION
Organizational
Alignment &
Governance
Insight,
Strategy &
Planning
Relevant Messaging,
Offers And Service To
Local Consumers
16
18. BRINGING THE SOLUTION TO LIFE: THE CLIENT PROBLEM
• The client problem:
Strengths
NATIONAL Weaknesses
Driven by the
• National branding corporate office • National campaigns were not
campaigns were solid activated locally and there was an
overall lack of field participation in
• Current digital efforts local marketing efforts
covered the basics well
(Web, E-mail, search, • Local Web sites were all over the
display, etc.) board and didn’t support brand –
Customers local sites couldn’t track leads or
• Centralized campaigns conversion
and Prospects
for traditional media
were also effective • ROI reporting wasn’t available
(broadcast, direct mail,
print, etc.) • Customer marketing data was
decentralized and in a variety of
• The network of sales formats
managers, players in the
• Limited “variable data” marketing
distribution channel and
even top producers were
LOCAL / no use of segmentation data for
Driven by local targeting
engaged
affiliates
18
19. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
FROM … TO…
campaign
National DB
National DB
Field Assignment
Field Rep 1 DB
Field Rep 1 DB
coordinated
campaigns
Field Rep 2 DB with targeted
messaging
Field Rep 2 DB Field Rep 3 DB
Field…n DB
campaign
Field Rep 3 DB
• Separate campaigns • Coordinated campaigns
• Multiple DBs / multiple formats • Unified data structure
• Random (uninformed) messaging • Targeted (informed) messaging
19
20. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
FROM … TO…
• Confusing Web experience • Coordinated Web experience
• Poor trackability • Sophisticated tracking
• Competing online marketing • Optimized marketing spend
20
21. BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES
• Our objective involved a series of from-to scenarios:
FROM … TO…
• One size fits all • Customization/localization (local toolkit)
• Weak coop community and little dialogue • Strengthen co-op community and dialogue
• Push all materials to all field reps • Pull through, measure usage, on demand shipping
• No local marketing plans • Bottom-up local co-op marketing plans
• No visibility into best practices (distrust) • Shared learning/best practices
21
22. BRINGING THE SOLUTION TO LIFE: AN INTEGRATED APPROACH
• Our integrated and localized solution:
Data driven marketing Tracking & optimization
• Localized content • Ad performance
• Consumer attributes • Call logging
• Past behavior • Prospect tracking
• Products purchased • Conversions
• Predictive modeling • Iterative adjustments
22
23. BRINGING THE SOLUTION TO LIFE: THE RESULTS
• Program results:
– Improved field rep flexibility, campaign tracking, and
participation in local marketing
• Customized marketing packages
• Template-driven Web sites with local content
• One-on-one market planning
– Improved consumer experience due to marketing consistency
and higher messaging relevency
– Increased efficiency of a coordinated marketing spend
(national, coop, local)
• Reduced search overlap
• Targeted display media
12% initial lift
– Identification of opportunity areas for improvement
• Answer the call and follow-up promptly
• Be available to close the deal
– And most importaly, higher conversion rates
23
24. SUCCESS FACTORS TO PAYING OF THE VISION
1. Listening to needs from both sides
(corporate and the field)
2. Solidifying the consistency of the
consumer experience
Organizational
3. Taking the time to develop an integrated Alignment &
multi-channel marketing Governance
plan and communication architecture
4. Investing in the data, systems, and
technology required Insight,
Strategy &
5. Placing a priority on the need to track Planning
conversion results (for both phone and
online) and to then optimize the media
accordingly Relevant Messaging,
Offers And Service To
6. Delivering on the promise of customized Local Consumers
messaging where possible
7. Working with the field one-on-one in the
planning, implementation, monitoring,
and evolution of localized campaigns
24
25. THANK YOU!
• Marcus R. Tewksbury
• Director of Customer Intelligence
• Alterian
• Email: tewksbum@alterian.com
• IM: tewksbum@hotmail.com
• Twitter: @tewksbum
• John South
• Chief Digital Officer
• Razor
• Email: John.South@razordriven.com
