Plug the Leaks! 4 Steps to Improve Your Channel ROI

JOIN THE CONVERSATION ON TWITTERQUESTIONS? COMMENTS? JOIN US LIVE ON THE 10TH FROM ST. LOUIS

#EngagingTimes

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

1

PLUG THE LEAKS:4 STEPS TO IMPROVE CHANNEL ROIMARCUS TEWKSBURY, ALTERIAN JOHN SOUTH, RAZORIMS, ST. LOUIS DECEMBER 10, 2009

CHEESEBURGERS & STOCKSWHAT DO THESE THINGS HAVE IN COMMON?!?

3

SELLING IN CHANNELSTHE FLOWS RUN FROM NATIONAL TO LOCAL THROUGH MANY CHANGING HANDS

Awareness

Interest

Desire

Acquisition

Heat Map

Chain, Carrier, Supplier Distributor,

Master Franchisor,Co-ops, etc.

Agents, Stores, etc.

State Farm, Dominos, Fidelity, etc.

SBA, Mercury Insurance , etc.

Ed Bailey

National

Local

The ‘Final Mile’

4

Search

Traditional

Display

Email

COST OF FEEDING THE FUNNEL GROWINGLEAD GENERATION ACTIVITIES ARE ALL BECOMING MORE EXPENSIVE

Awareness

5

SPENDING IS UP ACROSS THE BOARD… AND ITS SPREAD ACROSS ALL THE PLAYERS

6

National Local

$470m

$20m$170m

$50m$40m

$50m $25m

$5m

$25m $30m

$40m

$10m $5m

$170m$300m

WHERE IT’S BEING FELTLIFE 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

SYSTEMATIC PROBLEMSINDEPENDENT OPERATIONS STOKES INEFFICIENCY AND DUPLICATION

Marketing FulfillmentMarketing Fulfillment

Local SearchLocal

SearchLimited

PrintLimited

Print

BrandBrand TraditionalTraditional180 °180 °

Carriers / SuppliersCarriers / Suppliers

90 °90 °

DistributorDistributor

90 °90 °

AgentAgent

In order to close the loop, or in other words connect the prospect behavior and marketing programs, you need to be able to connect an initial prospect to the final sale. In the existing model this is very complicated because the interaction data is captured across three different organizations and three or more systems..

In order to close the loop, or in other words connect the prospect behavior and marketing programs, you need to be able to connect an initial prospect to the final sale. In the existing model this is very complicated because the interaction data is captured across three different organizations and three or more systems..

1

1

1

Data IslandsData Islands2 Inconsistent Branding

Inconsistent Branding

While corporate marketers and agencies can do a great job developing compelling story lines and branding it can be exceedingly difficult to push it down the line through the channels. Not only is there a people / communication issue as you cross organizational lines, but at times the motivations of distributors and agents may not be in line with marketing at the suppliers.

While corporate marketers and agencies can do a great job developing compelling story lines and branding it can be exceedingly difficult to push it down the line through the channels. Not only is there a people / communication issue as you cross organizational lines, but at times the motivations of distributors and agents may not be in line with marketing at the suppliers.

Lead HandoffsLead Handoffs

Necessarily, in this structure leads must be passed off between the organizations. This has many implications, but one is that it certainly extends the customer life cycle.

Necessarily, in this structure leads must be passed off between the organizations. This has many implications, but one is that it certainly extends the customer life cycle.3

3

4

CompetitionCompetition

And finally, at times not only can the channel members duplicate their efforts, sometimes they can even be competing with one another like with search.

And finally, at times not only can the channel members duplicate their efforts, sometimes they can even be competing with one another like with search.

8

PROBLEMS QUALIFYING THE INABILITY TO CLOSE THE LOOP INHIBITS THE ABILITY TO TRULY QUALIFY LEADS


Local SearchLocal

SearchLimited

PrintLimited

Print

BrandBrand TraditionalTraditional180 °180 °


90 °90 °


90 °90 °

AgentAgent

Data Islands + Multiple Handoffs = Big Problem

The inability to relate activity to financial results, and correspondingly the ability to score, results in poor leads being injected into and then passed through the channels.

In turn, the cycle of poor leads results in slower responsiveness which further lengthens the already long process and ultimately lead decay.

9

NET EFFECT DECLINING MARGINSWE ARE SPENDING MORE TO MAKE LESS (OR SOMETIMES THE SAME)

Awareness

Interest

Desire

Acquisition

Revenue

ExpensesProfit

10

TRUST FACTORBUILDING TRUST AND LOYALTY IN THE CHANNEL IS A CHALLENGE

11

REDUCE HANDOFF LAG… BY AUTOMATING OR ELIMINATING STEPS IN THE PROCESS

Shorten the cycle… …. with technology

12

SQUEEZING PARTNER MARGINSSUPPLIERS BEGIN TO OFFER MORE SERVICES AND PASS ON THE COST

Local SearchLocal

SearchLimited

PrintLimited

Print


90 °90 °



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.

35% Supplier to Partner

54% Partner to Customer

11% Supplier to Customer

Channel Demand Creation

Source: SeriusDecisions

Best-in-class suppliers are also leveraging their channel to create demand, with the majority of

their channel incentives being applied towards PARTNER-TO-CUSTOMER demand creation programs.

13

ONE BRAND’S JOURNEY

THE VISION: ALIGN THE CHANNELFOR HI-IMPACT PROSPECTING & ROI

15

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

KEY COMPONENTS TO PAYING OFF LOCAL PROSPECTING VISION

16

REAL-WORLD ACTIVATIONOUR EXPERIENCE BRINGING THE SOLUTION TO LIFE

BRINGING THE SOLUTION TO LIFE: THE CLIENT PROBLEM

• The client problem:

18

Weaknesses

• National campaigns were not activated locally and there was an overall lack of field participation in local marketing efforts

• Local Web sites were all over the board and didn’t support brand – local sites couldn’t track leads or conversion

• ROI reporting wasn’t available

• Customer marketing data was decentralized and in a variety of formats

• Limited “variable data” marketing / no use of segmentation data for targeting

NATIONALDriven by the

corporate office

LOCALDriven by local

affiliates

Customers and Prospects

Customers and Prospects

Strengths

• National branding campaigns were solid

• Current digital efforts covered the basics well (Web, E-mail, search, display, etc.)

• Centralized campaigns for traditional media were also effective (broadcast, direct mail, print, etc.)

• The network of sales managers, players in the distribution channel and even top producers were engaged

BRINGING THE SOLUTION TO LIFE: FROM-TO OBJECTIVES

• Our objective involved a series of from-to scenarios:

19

National DBNational DB

Field Rep 1 DBField Rep 1 DB


Field Rep 3 DBField Rep 3 DB campaign

campaign

Field…n DBField…n DB




National DBNational DB

coordinatedcampaignswith targeted messaging

Fiel

d As

sign

men

t

FROM … TO…

• Separate campaigns

• Multiple DBs / multiple formats

• Random (uninformed) messaging

• Coordinated campaigns

• Unified data structure

• Targeted (informed) messaging



20

FROM … TO…

• Confusing Web experience

• Poor trackability

• Competing online marketing

• Coordinated Web experience

• Sophisticated tracking

• Optimized marketing spend



21

FROM … TO…

• Customization/localization (local toolkit)

• Strengthen co-op community and dialogue

• Pull through, measure usage, on demand shipping

• Bottom-up local co-op marketing plans

• Shared learning/best practices

• One size fits all

• Weak coop community and little dialogue

• Push all materials to all field reps

• No local marketing plans

• No visibility into best practices (distrust)

BRINGING THE SOLUTION TO LIFE: AN INTEGRATED APPROACH

• Our integrated and localized solution:

22

Data driven marketing

• Localized content

• Consumer attributes

• Past behavior

• Products purchased

• Predictive modeling

Tracking & optimization

• Ad performance

• Call logging

• Prospect tracking

• Conversions

• Iterative adjustments

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

– 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

12% initial lift

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

3. Taking the time to develop an integrated multi-channel marketing

plan and communication architecture

4. Investing in the data, systems, and technology required

5. Placing a priority on the need to track conversion results (for both phone and online) and to then optimize the media accordingly

6. Delivering on the promise of customized messaging where possible

7. Working with the field one-on-one in the planning, implementation, monitoring, and evolution of localized campaigns

24

THANK YOU!

• Marcus R. Tewksbury• Director of Customer

Intelligence• Alterian• Email:

[email protected]• IM: [email protected]• Twitter: @tewksbum

• John South• Chief Digital Officer• Razor• Email:

[email protected]