Multichannel marketing: you can say that again: with the increased affordability of data-analytical tools and digital printing along with the widespread use by customers of personalized communications channels such as email, multichannel marketing has grown in popularity. Here is a review of the best practices.

• Author: Rizzo, Tony

HAVE YOU SEEN THAT GECKO THAT SELLS INSURANCE ON TELEVISION? Have you heard him on the radio or seen him in magazines? Those "impressions" (or appearances) are what is known as multichannel marketing--the practice of deploying a unified sales and marketing plan via numerous channels to communicate a singular message to customers.

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Multichannel marketing is gaining in popularity for a variety of reasons. In the early 1990s, increased competition required an augmented focus on customer communication, especially with high-net-worth customers. Second, consumer protection legislation, including the Do Not Call Registry and the CANSPAM Act for email, gave customers greater control over how they chose to receive communication from businesses. Third, with the continued emergence of less expensive data analytical tools, digital printing and general accessibility of personalized communication channels, there was a decreased cost to multichannel marketing. And bank marketers, like others, are continually challenged with the mantra, "Do more with less."

Best practices

There are several essential components to implementing a successful multichannel marketing campaign. They include:

* Proper analysis and segmentation data. The consensus is that a one-size-fits-all sales message is ineffective. Instead, messages are more impactful and successful when customer data is analyzed and then tailored based on specific customer segments. Often, the multichannel marketing investment is less expensive than other campaigns since it is more targeted. In fact, while a general marketing campaign may result in a 1 percent response rate, a targeted multichannel approach frequently achieves five to ten times that amount.

* Staff communication. A common mistake in deploying multichannel marketing is the lack of communication--about the campaign itself and about specific offers--to personnel outside of the marketing department. In the multichannel environment, it is common to have multiple offers to multiple customers. Some financial institutions will create up to 50 different offers per campaign and communicate these via direct mail, email and outbound phone calls. Therefore it is imperative for the marketing department to convey what those offers are and details on them to the frontline staff. In this way, other bank personnel are effectively prepared to answer customer questions and cross-sell the appropriate products. This...