Conquering cross-channel customer measurement

The challenge of understanding how customers engage across multiple channels is the ‘Everest’ of measuring customer behaviour.

Just think for a moment how complex modern business channels have become. What we now think of as a traditional transactional business would have a single real-world store-front. A customer would come in and buy products or services, the business owner would talk to them in an attempt to understand their needs, and they would leave. Perhaps the experience next time would be slightly more tailored to their liking based on that conversation. Today a customer may still walk in to a store, but they would just as likely order online, or via a call centre. That’s three different channels without thinking too deeply about it, and as Paul mentions in his article, if we think about touch points there are hundreds. And how does that business owner now know how many of its online customers also use the call centre or the store? How many store customers checked stock online or usually prefer to use the call centre?

An effective unified view of customer behaviour is the ultimate goal and one that is very hard to surmount. What is required is a truly representative customer perspective in order to join that data up and make those sources integrated. So, why isn’t everybody doing it? The answer is that on the way to the ultimate goal, come some fairly tricky challenges. Understanding what those challenges might be is a great way to prepare for those challenges, and the first question any business must ask itself is “Are we ready for cross-channel?” How would broader business strategy adapt to the intelligence resulting from cross-channel data? What would we do with a greater understanding of the combinations of roles each channel plays in customer journeys and ultimately in business success? Can the business afford to find out? Can it afford not to if it is going to de differentiated?

Culturally, organisations are not always structured adequately for measuring cross-channel behaviour. Most take a ‘silo’ approach to building their channel capabilities. Who ultimately owns the customer experience? Every business must ask itself this before even thinking about cross-channel measurement. Buy-in and full cooperation is needed from all channels to create a cross-channel picture of a customer base. The repercussions of leaving this question unanswered will hugely affect success. There are real people responsible for each channel’s success who own their own data and understand customers in their own way. If those channels are to be blended together, who then owns that responsibility, that data, that customer insight? Perhaps they won’t want to relinquish that control. Education and joint effort must be called upon to make such a transaction without a good deal of obstructive politics.

Organisations often find it hard to clearly understand customer behaviour and most importantly to yield business value through one channel, let alone combining a number of them. Where do they begin? It’s a good idea to start looking at combinations and weightings of each channel’s value to a business in different areas. Each channel has its own set of touch-points of interaction that need identifying. A business may feel its success relies on its website and the people who discover the business through the website, but if that site isn’t transactional and brings no actual bottom line value to the business, then attributing the value of that channel is very difficult. Do customers go to the website five times then place an order by phone or in-store? How does the business put a figure on that value to the customer journey? Indexing helps those businesses to look at that the bigger picture by monetising or scoring certain touch-points according to each transactional effect on the bottom line, helping to overcome this problem.

Every business must have its cross-channel measurement strategy formalised before it thinks about execution. The alternative is a Frankensteinian monster of great ingredients thrown into a framework without being properly joined up or disseminated in a way that enables the business to make clear decisions. A clear cross-channel strategy is essential before a plan can be executed successfully.

Cross-channel technologies are actually very few and far between currently. Those that do offer a competent cross-channel approach do so at a price. This market is so advanced and leading edge that it isn’t yet economically viable for mass market business. However, even popular desktop productivity suites are beginning to offer customer database blending and other functionality is slowly emerging for the mass market.

An appropriate balance of technology and people is required to achieve success, and the most pressing variable that affects both is financial resource. Should a business integrate its customer data into its web analytics tool or create a bespoke solution? Who is the person best positioned to look at overall customer needs? Is a web analyst the best person to measure cross-channel behaviour? Maybe even when the best person is found to start the effort, they will need help and support as the task continues.

For many, cross-channel measurement will prove extensive and expensive, and it’s not just a matter of combining the costs of measuring individual channels. This challenge isn’t a little side project, it’s a serious endeavour that demands financial backing. Considering the above will help many businesses begin their journeys of cross-channel measurement. And the first step must always be to evaluate where they are now and what form that strategy might take, before they strike out for the summit.

This article was written as part of the crossing the channels of experience March newsletter