Debunking Channel Preference Myths

Michele Fitzpatrick, Harte-Hanks Direct
April 15, 2005

For most consumers, choosing which channel to use when communicating with a marketer is entirely situational. An urgent request or need is likely to prompt a phone call. When in research mode, many look to the Web as their preferred source. And when a member is ready to make a purchase decision, there typically is a need for some sort of physical interaction in the form of literature (direct mail brochure) or contact with the product or service (attending an educational seminar or visiting a branch to conduct business).

How well a marketer integrates the credit union’s mix of channels for prospects and members will determine how well it delivers incremental benefit for all parties. To that point, here are five channel preference myths.

Myth 1: Most loyal members interact via one channel.

While it may be surprising, a marketer’s most loyal member uses at least two channels. What’s more, 40% of online members make offline purchases, too. A marketer’s mission is to use information about individual members to meet their individual channel preference needs.

Myth 2: Most people don’t like direct mail.

Mail is considered to be less intrusive than other mediums are. While each medium has its own strengths, surveys continue to show that consumers prefer direct mail to other forms of communication, including e-mail, telephone, and in-person contact. In a world where consumers are exposed to thousands of marketing messages daily, often it’s the message in the mailbox that rises above the chatter. The lesson: Don’t be afraid to test direct mail to reach out to current and potential members.

Myth 3: Online marketing cannibalizes offline efforts.

The reality is that direct marketing buyers are more likely to have Internet access. Multichannel contact yields better results. In other words, people now regularly use a combination of media when considering and responding to an offer. Adding a response channel (such as the Web) can improve results by 30% or more. The Internet has changed the face of direct marketing, but not by displacing other channels.

Myth 4: Becoming a multichannel company doesn’t require restructuring.

When embarking on a multichannel infrastructure, credit union marketers must establish a member-centric point of view and develop common offerings, transaction processing, member service, and messaging and themes. There must not be conflicted branding and messaging elements.

Myth 5: Each channel is a separate user experience.

The opposite is true: Multiple channels converge into a unified user experience. If channels don’t offer a unified voice, look, and feel, members may be frustrated or disappointed. A multichannel user expects an integrated experience across all points of contact.

Today’s consumers expect and demand multichannel access, regardless of how they were contacted initially. Remember, channel preference is situational. The smart credit union marketer thinks of the member when planning a marketing strategy.

Michele Fitzpatrick is chief marketing officer for Harte-Hanks Direct in San Antonio. Contact her at 800-456-9748 or michele_fitzpatrick@harte-hanks.com.