Our Multichannel Forensics projects suggest that each piece of information about a customer offers a different amount of business value.
For instance, take a look at the following table:
|Incremental Value Of Various Addresses|
|% of||12mo.||Address |
|Mobile Phone w/SMS||50%||$15.00||$7.50|
Having a mailing address is important. The mailing address allows us to market to customers wishing to receive our marketing activities. And we can easily prove that our efforts generate a considerable amount of revenue. Given that most folks have a mailing address, we can multiply the audience percentage by the demand value, arriving at "potential", in this case, $98.00.
Having an internet connection is important, too. Customers generate organic demand. Customers also respond to paid search efforts, interact with shopping comparison sites, you name it. Therefore, internet access is important.
E-mail addresses are important, but less so. They are dependent upon having an internet access, and for many catalogers, they are dependent upon catalog marketing as well (the e-mail address doesn't happen unless a catalog generates an order, causing the customer to volunteer an e-mail address). Still, the e-mail address provides a good amount of potential, given that most people have an e-mail address.
Now take a look at Twitter. This is an area that has relatively unproven marketing potential, coupled with the fact that fewer than 2% of US Citizens have a Twitter account. Multiply both facts together, and you quickly learn that Twitter has minimal potential (as of today). Twitter certainly has less potential than, say, mobile marketing, a generally untapped channel with significant potential due to the prevalence of cell phone users. Of course, this doesn't mean you don't experiment with the shiny new tools, you absolutely should. But we should also be cognisant of the sales potential of any activity today, while still planning for the future.
Today's multichannel marketer does a good job of assigning value to each marketing channel, based on two dimensions.
- The future value of the marketing channel, in dollars (sales, or better yet, profit0.
- The penetration of the marketing channel (mailing address = 98%, Twitter = 2%).