Heli Aaltonen 2018

Multi-channel marketing
in sales, distribution, communication and
customer support

Principal lecturer , DSc. (Econ.) Heli Aaltonen

Artevelde University College International Days 2 – 4 May 2018
Gent, Belgium
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The main topics in the lecture

What are the basic
concepts of multi-
channel marketing?

What motivates
What digital channels companies to
companies use? implement multi-
Multi-channel channel marketing ?
marketing

How customers’
How customers
needs for content
search information for
meet companies’
their decision making
objectives?
process?
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Objectives? After two sessions…

You are familiar with features of both consumer behaviour and
corporate behaviour in multiple channels

- You understand the concept of multi-channel marketing

- You know what motivates companies to implement multi-channel
marketing
- You can identify four customers’ search strategies the basis for
multi-channel marketing
- You are familiar with four digital channels model
- You are familiar with channel coordination challenges
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How do we study today?

9.00 – 10.30
• Three brief lectures, three run-through + reflection
11.00 – 12.30
• Case study in small groups, discussion
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The main setting and viewpoints

A company's Customers’ viewpoint: What are the
viewpoint: What most convenient and economic ways
are the most to buy, gain information, gain support,
profitable ways to discuss, provide feedback…
distribute, sell and
communicate with
customers?

How to avoid conflict How to keep up with

with partners and competitors and
intermediaries? industry standards?
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What are the basic concepts?

Multichannel marketing means that a firm
• simultaneously offers their customers and prospects
• information, products, services and support (or any combination
of these)
• through two or more synchronized channels.

(Chen & Lamberti 2016)

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Multi-channel vs omni-channel?

Multi-channel is the Omni-channel is the

company’s point of view customer’s point of view

Blending various distribution Omni-channel seeks to

and communication provide customers a
channels for the purpose of seamless shopping
marketing experience

A nice video clarifying the terms multi-channel and omni-channel

https://youtu.be/44rQux8Jfps
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What are the basic concepts?

• In multichannel marketing a channel’s role in distribution and
communication is blended together
• In cross-channel behaviour consumers cross many times between
the channels

distribution distribution distribution

communication communication communication

(Chen & Lamberti 2016)

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Consumers’ cross-channel behaviour?

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Basic channel types: channel variety

and channel usage

Industry specific
Web application
Social network
Mass media

Call center

Website
Outlets

Mobile
E-mail
Channels carry out
• Distribution/ transactions
• Practical information > to facilitate and fulfil transactions
• Relational communication > to develop customer relationships

(Chen & Lamberti 2016)

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Basic concepts: sales and delivery

channel systems
1 Manufacturer
Sales office/
Sales force
e-commerce
2 Distributor Sales agent/ Sales agent/
Broker Broker

3 Distributor

1 2 3 4 5
Customers

(Eyuboglu et al. 2017)

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What motivates firms to implement

multichannel marketing?

2. Customer-driven motivations

1. Economic-
driven
motivations

3. Competition and
industry standards

(Chen & Lamberti 2016)

 Heli Aaltonen 2018

What motivates firms to implement

multichannel marketing?

• Cost savings
• Identifying the most profitable
1. Economic- customers through segmentation
driven
• Maximizing market coverage
motivations
(market expansion)
• Increasing revenues
• Efficiency through economies of
scale
• Exploiting synergies

(Chen & Lamberti 2016)

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What motivates firms to implement

multichannel marketing?

2. Customer-driven motivations • Better customer experience

– Select the preferred channel
– Multi-channel utility along the
purchase process
• Customer engagement
• Customer satisfaction
• Customer loyalty

(Chen & Lamberti 2016)

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What motivates firms to implement

multichannel marketing?

3. Competition and • Pressure of competition

industry standards
• Industry standard = new channels
have already emerged or they are
already widely diffused

(Chen & Lamberti 2016)

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To summarize
- Consumers cross between the
channels
- The main motivations are
economic-driven, customer-driven
and competition-driven
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The starting point for an effective

multi-channel strategy
• How customers search information and make their choices in purchasing
process

• Customers do not choose specific channels but

– they look for the environment that supports their requirements for
interaction the best

• Customers have become experts since sources of information have

multiplied
• Customers are less receptive to business offers and atmosphere
elements of physical spaces

• Only a small amount behave as “single-channel” customers

• There are remarkable differences between sectors if people carry out
transactions on the web or in stores.

(van der Veen & Ossenbruggen 2015; Jeanpert & Pache 2016)
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Customers’ four search strategies

• How targeted or exploratory is information searching
• How much customers rely on themselves and others

Convenience Information Peace-of-mind Reassurance

seekers seekers seekers seekers

(van der Veen & Ossenbruggen 2015)

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Convenience seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others

Convenience
seekers • Often know what they want
• They perform targeted searches >
goal-oriented.
• They need simplicity and speed in
their choices
• They arrive relatively easily at
their purchase decision
• They often consult physical
provider and use many channels
• Internet solutions should promote
dialogue

(van der Veen & Ossenbruggen 2015)

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Information seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others

Information • They focus most on the Internet

seekers channel in their search
• Often it is the only channel
• Self-service
• They rely on themselves in
decision making

• Information should be freely

accessible and complete

(van der Veen & Ossenbruggen 2015)

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Peace-of-mind seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others

Peace-of-mind
seekers
• They often search for good
advice
• They purchase more
frequently from personal
providers
• Less intensive channel use
• Offline shops and service
are important

(van der Veen & Ossenbruggen 2015)

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Reassurance seekers
• How targeted or exploratory is information searching
• How much customers rely on themselves and others

Reassurance
seekers
• True multi-channel users
• They spend time exploring the market
• Security and risk aversion are
important
• They frequently consult their social
contacts
• They rely on others in their decision
making
• They value services verifying
information and thus diminishing risks

(van der Veen & Ossenbruggen 2015)

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To summarize…

Customers’ search habits are the

starting point for the multi-channel
strategy

Companies’ should offer information,

dialogue and support to meet various
search habits
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Digital channels and digital touchpoints

Digital channels are routes of communication
between an organisation and its customers
• technology-based platforms
• that use the Internet to connect with customers
• provide a range of different content and
purposes
• facilitate communication with a range of
different interaction levels.

A digital touchpoint is an individual channel,

while a group of touchpoints is called digital
channels

(Straker, Wrigley & Rosemann 2015)

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Challenges with digital channels

and touchpoints?
• How to engage customers?
• How to create valuable content for them?

• How to integrate isolated channels?

– digital channels are often managed like traditional one-way
communication channels
– they do not connect with each other
• Companies may overuse of digital channels
– excessive, uncoordinated online presence
“Always on” customers?
• Expect companies responding and interacting with them
immediately and 24/7
• Since companies offer various channels for interaction

(Straker, Wrigley & Rosemann 2015)

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”Always on” customers

Reply
Fast

24/7
Reaction

Quick Speedy

(Straker, Wrigley & Rosemann 2015)

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Vertical channel Cross-functional channel

management management

Call center

Website
Outlets

Typical coordination activities in channel management

• Purchasing, logistics, customer data management and brand
What is essential to cross-functional multi-channel strategy?
• Consumers perception of the multi-channel coherence and
• Sales force’s access to real time logistical information.

(Straker, Wrigley & Rosemann 2015; Jeanpert & Pache 2016)

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The digital channel model

Company’s objectives Customer content
are needs are
• To inform • To contact,
• To promote • To search for
• To gain revenue information
• To support • To build trust
• To share interests
• To buy

(Straker, Wrigley & Rosemann 2015)

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To inform, promote, gain revenue and support

Corporate channels Functional channels

Social channels

Community
channels

(Straker, Wrigley & Rosemann 2015)

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Corporate channels
Corporate channels
Typical for corporate digital channels
• They are one-way engagement by
nature
• Customer interaction is low or medium
• Typically clear functional purpose such
as
• Digital catalogues,
• Digital ads
• Digital feedback forms,
• FAQs
• Digital magazines
• Digital media releases
• E-commerce

(Straker, Wrigley & Rosemann 2015)

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Functional channels
Functional channels
Typical for functional digital
channels
• They are run by one user or
company
• Customer interaction is medium
• Typically
– Websites
– E-mails, e-news letters
– Online store
– Applications
– Tutorials
– Live chat
– LinkedIn

(Straker, Wrigley & Rosemann 2015)

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Social channels

What is typical for social digital

channels?
• They are run by an administrator
– who is able to delete content or
block users
• They are driven by company
Social channels objectives
• Customer interaction is high
• Users expect something in return
of interaction
• Typically social media sites
(Facebook, Twitter, Instagram,
Pinterest, Flickr etc)

(Straker, Wrigley & Rosemann 2015)

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Community channels

What is typical for community

digital channels?
• They are run by a group of
users
• Their interest is aligned with the
company
• Privacy settings possible
• Comments, ratings, texts,
images, videos;
• Customer interaction is medium Community
• Typically forums, blogs, channels
YouTube, Vimeo

(Straker, Wrigley & Rosemann 2015)

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To summarize: A company
- should not overuse digital channels
- should integrate channel management
- should take into account customers’
features, content needs and their various
ways to search information