Part 6: Campaigns Versus Access

This is the fourth part of a series on Sustainable Marketing. In this installment we continue the comparison of Traditional Marketing (Price) versus Sustainable Marketing (Value). Click here to link to the beginning (Part 1) of the series.

The Internet and mobile communications have increased their share of marketing’s attention, and the reason is clear. As discussed in an earlier section, the customer now routinely determines where, when, and how he or she will interact with a company.

Broadcast media have declined in importance, as they have become fragmented into hundreds of specialized channels. Addressable media like direct mail and telemarketing have become more expensive and more highly regulated. The challenge to marketing is to manage customer access points, not just execute campaigns. “Customer experience,” has become a concept that spans all channels.

Marketers are no longer only brand managers executing campaigns. Increasingly, they are customer managers guiding customers to the most appropriate interaction channel and insuring that every channel knows what to do with each customer.

Failing to synchronize marketing, sales, and support channels is a violation of any company’s brand strategy. Any inconsistency in messages, prices, and policies diminishes the company’s hard-won position in the market. Every dropped communication, reentry of data, or perceived confusion chips away at long-standing customer relationships.

Synchronizing customer access points is a major challenge. Many companies have a sophisticated distribution strategy that incorporates everything from retail stores to indirect channels, as the figure below illustrates.

Each of these channels has a different dynamic and cost structure. The cost of interacting with customers is typically a function of both the sophistication of the product and the complexity of the sales process. Packaged products such as books, DVDs, and clothing can easily be sold through cost-effective retail, catalog, and electronic commerce channels. The cost of customer interaction for these products and these channels is typically low (a few dollars per interaction).

More sophisticated products that require configuration or customization or that are created to the customer’s specification typically mandate a more expensive distribution model through a direct sales force or specialized channel. A direct sales call can cost hundreds or thousands of dollars. When products are sold through channels, much of the transaction cost can be offloaded to the partner. However, since the discount structure for indirect sales is much higher than direct sales (and the revenue per transaction is shared), the ultimate cost per customer interaction is still quite high.

Obviously every company wishes to sell its products through the most cost-effective mix of channels. As e-commerce has matured, more sophisticated products are being sold online. Regardless of their access point, the customer experience must be consistent. Lack of synchronization creates additional costs when a sales or support person must call on the customer to correct errors or misconceptions.