Creating an Effective Marketing Strategy

          Integrated Marketing Communications (IMC) has been the backbone of every marketing strategy I have designed as a professional marketer in financial services.  A long set of words, but a completely intuitive concept brought home during my coursework as a MBA student at University of Chicago.

          First off, what is an effective marketing strategy?  Simply, one that makes the customers buy the product, service, or idea.  Generally, there are two obstacles to a successful strategy: convincing customers they need the product and beating out competition for their dollars. 

          This is where Integrated Marketing Communications comes in, theoretically defined as the set of all “contact points” with current and potential customers.  Practically, this aids in a strategy that captures customer’s share of mind, and consequently, her wallet, from the competition. 

          Let’s consider an example.  Customer X is considering two financial institutions while applying for a credit card.  Both cards offer similar rates and rewards.  But the customer chooses one over another.  What determines that choice?  All the associations the customer has with that institution, or more specifically, its brand.  A customer’s associations are formed at myriad points, such as humming along with the catchy marketing jingle, smoothing a finger over the glossy marketing brochure, nodding at the relevance of the targeted direct mail, navigating easily through the website or having a pleasant experience with the company phone representative while calling to apply.  A successful marketing strategy aims to leverage every possible interaction between the company and the customer to deliver a positive experience, or at least, form a favorable association.

          I recently participated in a focus group.  A well-known seller wanted to test a new advertising campaign before rolling it out nationally.  The campaign emphasized trust, convenience and technology.  Slick campaign, with the usual bright images and a happy jingle, but the people in the room didn’t buy it.  Why?  Due to their previous associations with the seller as running misleading promotions, providing poor customer service and having an inefficient distribution system.  This seller might have succeeded in drawing in customers to its stores and website, but failed to close the loop on its marketing strategy by not creating a favorable association with the brand at each customer interaction. 

          In the world of financial services marketing, high acquisition costs cause new customers to take seven years to be profitable.  That’s seven years after the customer is in the door, the point at which traditional marketing strategies stop.  In a world of increased competition, reduced customer spending and few binding contracts, it’s important to create a favorable experience from the first marketing piece and retain it through each day that the customer chooses to remain in the database.  The company’s marketing strategy shouldn’t stop when the customer is acquired, but should be expanded to keep delivering on the initial promise at every step and medium.  This develops customer loyalty that is sustained through price increases and product shortages, and even helps mitigate bad press.  When a customer stays true to a product due to her positive brand association versus the latest sales gimmick, the marketing strategy has been successful in integrating all its communications for a single purpose: to keep selling.