More efficiency in brand- and market management

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Content published in Marketing & Kommunikation 6/7-08
More efficiency in brand- and
market management
TOUCHPOINT MANAGEMENT The growing number of communication channels and
increased fragmentation of target groups are forcing companies of all sizes to become more selective than ever. In an ever more complex communication landscape,
the importance of comprehensive, cross-functional interface management between
brands and customers continues to rise.
By CHRISTOPH SPENGLER and MARTINA-STEPHANIE BRENNER*
n
Brands are experienced at different contact- and interaction points
along the entire corporate
value chain – from classical
advertising, to websites, to
call centres and sales personnel. A positive or negative image can be created on
the basis of a single contact
with the brand. A negative
interaction – for example,
being kept endlessly on
hold during a telephone
call to a service centre –
can damage a relationship.
The opposite can happen
when brands pleasantly
surprise their clients. A call
from a salesperson a few
days after a delivery can
make a huge difference.
The moment of truth:
every contact with the
brand
These examples show the
importance of the various
brand contact points with
clients, non-clients and
other stakeholders – before, during and after sale.
Whether in the Businessto-Consumer or Businessto-Business area, every
touchpoint with the brand is
important. This is because
clients always see a brand
as a total experience, and
expect the maximum experience from every contact.
In the majority of cases,
they make no distinction
between sales and administration, nor between
managers and employees.
Each brand contact affects
the customer experience
and thus has a direct influence on corporate goals
such as customer satisfaction, customer loyalty and
brand awareness.
Companies usually manage their brand touchpoints
through different functions
or departments, such as
In today’s highly sensitive
contact universe, every detail of the brand counts as a
“moment of truth”. It is thus
equally true of brands that
“a chain is only as strong as
its weakest link”.
«Touchpoint analysis uses surveys to measure
what the target groups experience, what they
use, and how they behave (receiver focus).»
marketing, communications,
public relations, distribution and service. These are
often poorly coordinated
and use different concepts
when it comes to product- and service quality.
The goals of comprehensive touchpoint management
The design of brand touchpoints to ensure that the
brand is experienced in
a consistent manner at
every interface calls for
a comprehensive, crossdepartmental perspective.
Touchpoint management
should be understood as a
multi-disciplinary strategic
approach, which pursues
performance optimization
in all market-oriented management areas. The aims
and benefits of effective
touchpoint
management
are:
n Comprehensive evaluation of the impact of all
media and marketing activities in order to optimise
investments in brand and
market communication
n Increased contact quality for potential new clients,
Illustration of an interactive BrandConnex Cockpit: Example of a specific client touchpoint universe with crossmedia and cross-functional measurements from a market perspective. The impact of the brand touchpoints is
measured, compared with each other, and rated.
and the securing of longterm client relationships
n Design of a unique and
consistent brand experience
n Optimisation and management of processes for
brand- and market communication
n Achievement of greater
profits thanks to time- and
cost savings
Initially, all possible customer contact points within
a sales process or during
the entire customer lifecycle are systematically
collected. We frequently
identify over one hundred
brand touchpoints at this
stage when working on client projects. The most important question is: Which
are relevant to success?
different touchpoints in the
areas of mass media, Point
of Sale or distribution, Oneto-One and indirect communication
5. Repeat measurements
(tracking) to evaluate the
performance of the strategy and activities
dislike?
n How should the key contact point in particular be
optimised from the client
point of view?
n Should the number of
contact points be increased? Or reduced?
n What is the optimal multichannel mix for each of the
various target groups?
Individual 360 degree
touchpoint analysis
Measuring and managing
the overall impact and efficiency of integrated communication activities calls
for a 360 degree perspective. Adjusted to the specific needs of each company, 360 degree touchpoint
analysis enables corporate
strategy to be interlinked
with the brand- and market strategy. Professional
touchpoint analysis delivers a comprehensive and
internally consistent key
data system that brings
transparency to many areas of activity: market, competition and clients.
Similar to a navigation system, it supports the management of processes
involved in brand- and
market management.
The answer is provided by
the 360 degree touchpoint
analysis, which delivers the
facts on which to evaluate
and manage brand- and
market communication.
How does touchpoint management actually work? A
systematic approach helps
to achieve rapid results:
From outside to inside:
market- and client orientation
The idea that touchpoint
management is equivalent
to interface management
with existing clients – Customer Relationship Management (CRM) – misses
the mark. This is because
sustainable corporate success requires more than an
exclusive focus on existing
clients. Our Brand-Connex
surveys show that clients
and non-clients differ greatly in their communication
behaviour. There are also
major differences between
the various client categories. For example, important questions include:
n How does the (potential)
client judge their experience with the brand? What
do they like? What do they
Optimisation is only
possible through comparison
Traditional measurements
often only describe what
is sent to the target groups
(sender focus), but not what
actually arrives. Touchpoint analysis uses surveys
to measure what the target
groups experience, what
they use, and how they behave (receiver focus). In order to offer appropriate recommendations for action,
the individual contribution
of each brand touchpoint
must be measured in comparison to the overall impact. Measurement of the
importance and impact
of touchpoints is central
to the evaluation method.
Comparison is made possible through using a standardized “currency” – the
1. Identification of the
brand touchpoints within
the company and throughout its market.
2. Measurement of results
using 360 degree touchpoint analysis.
3. Evaluation of the strengths and weaknesses of individual touchpoints and the
touchpoint mix on the levels of market, competition
and client groups
4. Setting and achievement
of optimisation goals for
touchpoint value. The
touchpoint value takes account of the three primary
levels of communication. It
is both a qualitative and a
quantitative measure, and
is derived from the statistical calculation of the following values:
n Information value:
Shows how well a touchpoint can deliver relevant
information about a product or service.
n Attractiveness value:
Measures the emotional
components and shows
how attractive the way the
information is communicated via the chosen contact
point is perceived to be.
n Transaction value:
Evaluates how a touchpoint affects purchasing
behaviour.
In addition to the touchpoint value, the touchpoint
association is also extracted. This value contributes
to benchmarking by judging which touchpoint is
occupied by what brand,
and to what extent the various brands differentiate by
touchpoints. Practitioners
are thus equipped to distinguish between the important and the unimpor-
tant, and can focus on the
relevant contact points.
Focus on target groups,
touchpoints and processes
It is only when a brand
touchpoint is accepted by
(potential) clients that it
can have an effect: it can
increase sales or change
the attitude to the brand
and thus contribute to the
brand’s strength.
On the basis of the touchpoint analysis, all employees – from the board to
the CRM manager – use a
common language for the
definition and description
of the target groups, touchpoints and processes. This
improves understanding,
facilitates internal communication, and increases
effectiveness (doing the
right thing) as well as efficiency (doing things right)
in brand- and market management.
Knowledge about the relevant brand touchpoints
and target groups allows
the activities mix to be optimally targeted. It thus becomes possible for companies to evaluate processes
and activities, to optimally
allocate resources and
budgets, and to contribute
towards long-term corporat success.
The key to success for company-specific strategy and
implementation is thus the
linkage of target groups,
touchpoints/channels and
marketing processes.
The importance and
impact of brand touchpoints
A series of BrandConnex
surveys in different industries and countries have
revealed the following:
n Touchpoints in sales
or distribution generate
around half of all brand
experiences
n In retail, alongside store
merchandising, personal
advice in the shop is the
most important factor
nRecommendations from
friends, test reports or editorials, influence about a
third of brand experiences
n Editorials in print media
enjoy a high level of credibility in the eyes of many
consumers
n Around 10% consumers
make decisions based on
information from the internet (corporate websites,
blogs, forum contributions,
etc.) n
* Christoph Spengler,
Founder and Managing Director
of Accelerom AG
* Martina-Stephanie Brenner,
Partner at Accelerom AG
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