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