Omni-Channel Marketing – The Future of Marketing Campaigns
Download the Whitepaper We live in an era of gadgets. Research shows that 94% of people have their cell phone within arm’s reach at all times, consumers are shopping on tablets while watching television, and more email is opened on a mobile device than on a desktop. Customers continue to move into an omnichannel world, and responsive marketers need to go there, too. Channel integration isn’t something marketers can afford to ignore. In Target Marketing’s “Media Usage Survey” (2015), more than 60% of marketers reported increasing email spending every year since 2010. Most (61%) plan to increase social media engagement investments in 2015, and 46% are increasing their budget on social advertising. Social media advertising is now the fifth-most-used media, according to the survey. Omni-channel marketing has become mission-critical. It is so critical, in fact, that it is fundamentally changing marketers’ roles within their companies. Adobe’s “Digital Roadblock” survey found, for example, that 64% of marketers expect their roles to change in the next 12 months. Of these, 73% said this is due to the expanding number of channels and platforms necessary to reach audiences. A similar percentage (71%) said it is due to the need to develop new ways of thinking about audience engagement. Omnichannel Approach Increases Results The omnichannel approach simply produces better results. Although there aren’t a lot of studies tracking the interaction of marketing channels, one useful set of data comes from InfoTrends a few years ago. In a survey of more than 1,000 businesses, InfoTrends documented that the more channels used in a given campaign, the more effective the message. Comparison Of Conversion and Response Rates With Multiple, unified Channels Campaign Response Rate Conversion Rate Print Only 6.0% 16.2% Print and Email 7.6% 18.3% Print and PURLs 7.6% 15.3% Print, Email and PURLs 8.2% 16.5% Print, Email, PURLs & Mobile 8.7% 19.0% Source: InfoTrends, 2012 This is only one study, and it focuses on a very narrow combination of channels, but it is consistent with the results we see elsewhere. The more channels integrated into a campaign, the better the results. Role of Different Media in the Sales Funnel Part of the reason omnichannel marketing is so powerful is that it provides repeated exposure and reinforcement of the message. Another is that different media play different roles in moving customers along the sales funnel. For example, a 2014 study by Experian placed channels in one of three categories: “greeter” (creating brand awareness), “influencer” (generating interest), and “closer” (getting the sale). When each channel plays its role, the marketer gets better results. According to the “2014 Digital Market Trends Report,” the top channels for creating brand awareness (“Greeter”) are as follows: Search marketing: 43% Online display ads: 42% Social display ads: 40% Social media (not paid): 38% Print advertising: 37% Top channels for generating interest (“influencer”) are as follows: Email marketing: 49% Social media (not paid): 44% Online display ads: 35% Print advertising: 33% Social display ads: 33% Top channels for getting the sale (“closer”) are as follows: Website (ecommerce): 42% Email marketing: 30% Direct mail: 20% Mobile apps: 20% Search marketing: 17% The study also found that half of global cross-channel marketers surveyed planned to integrate four or more channels in their campaigns in 2014. The breadth of the number of channels being used for each of these stages in the sales process reinforces the critical nature of finding the right mix of channels and integrating them based on your customers’ preferences and needs. Print Remains a Critical Component… And Why For maximum effectiveness, the omnichannel mix should include print. One commonly cited Brand Sciences study found that digital marketers received a 62% lift when print was included. That data is more than five years old, but we have no reason to think consumer psychology has radically changed. Print has gravitas and credibility that other media don’t. It also has visual and tangible benefits that are powerful and unique to that channel. Studies consistently show that, for more sensitive and critical information ( financial, medical, insurance), consumers continue to trust and prefer marketing information in print. Here are some direct mail stats from the Direct Marketing News’ “Essential Marketing Guide: 2015” that every marketer should know. Marketers spent 2.7% more on direct mail in 2014 than 2013. Projected direct mail spending was $45.7 billion in 2014, up from $44.5 billion in 2013. 22% of consumers base buying decisions on information received from direct mail pieces. 58% of online shoppers browse print catalogs for ideas. Average direct mail response rates are up to 4.26% for a customer list (Direct Marketing Association). Why does print remain so valuable? We live in a world of digital oversaturation. Even among Millennials, direct mail seems more personal. A 2013 study by ExactTarget found that even 51% of those in the 15-24 age bracket have purchased a product based on a direct mail promotion. According to Neilsen’s 2012 Global Trust in Advertising report, 92% of young shoppers say they prefer/trust printed materials over digital when making purchasing decisions. In addition to the psychological benefits of print, there are physiological benefits, as well. In an article for Storyboard Magazine, Kate Dunn, director of the InfoTrends Business Development Group, cited several studies that link the benefits of print to how our brains work: Constant distractions online interfere with a reader’s ability to focus and comprehend the material. Tangible materials like direct mail generate more activity in the area of the brain associated with visual and spatial information. Physical materials are better connected with memory. Print seems “more real” to our minds. All of this supports why marketers continue to invest in direct mail as part of an effective omnichannel mix. They are also creating higher value, more complex campaigns than in the past. We are seeing greater use of targeting and personalization, high-end finishing, personalized mapping, and tighter, more effective integration with other channels. Maximizing Your Advantage: Omnichannel Marketing Solutions How can you take maximum advantage of the omnichannel mix? Let’s look