“What is Channel Optimization?” If you had to ask, then you’re definitely doing it wrong. For businesses that are not taking any steps to optimize their channel management, demise is right around the corner, and for those that have acknowledged its importance, you’re on the other side where the grass is definitely greener.
JZ Vacation Rentals not only have acknowledged but is still striving for channel optimization regularly. Even in the Vacation Rental Industry, without Channel Optimization, it is very difficult to survive in this competitive arena.
Let’s start with what it means, shall we? Simply put, it is to evaluate and find out the ideally profitable route of providing the absolutely necessary marketing resources across available channels. Since perfection is only a goal, every business have to constantly strive for Channel Optimization.
If you’re still wondering why this is important, let me break it down for you through the eyes of a client. The client wants a certain product, how does the client find YOUR product? Depending on the client’s age and ease of access, the client will have certain preferences. Will YOUR product be available to the client through the methods the client wants to use? For example, pamphlets, call centres, websites, etc. After finding YOUR product, will the client get all the necessary information through one channel or do you need to integrate multiple channels to provide the best service? What if the client feels battered with too many spams of YOUR product marketing through various unnecessary channels? If the client is happy, they will possibly return for more of your products.
What we want to do is cut off all unnecessary expenses and maximize profits.
The first step to take in Channel Optimization is to collect data of the current status of the company’s channels, clients and partners. Marketers need a detailed capture mechanism that collects this kind of hidden data in order to understand which channels are delivering the revenue.
The data collected must be a whole complete report analysis of all of the channels used by the business. This means tracking all costs and revenue of each channel to confirm individual channel cost and revenue delivery rate. It’s best to focus on the data research on the clients leading up to the channel. This way, the right channel route will be credited.
Most importantly, we must take Channel ROI into consideration as the lifetime value of the client is what justifies a higher cost of acquisition. Only when all the pieces of the puzzle are put in place, the data truly valuable to the company’s advancement.
Grow ROI with Cross-Channel OptimizationGrow ROI with Cross-Channel Optimization
With all this data, the easiest way to make sense the Channel System is to construct a database with a data hierarchy. Alex Zemianek, the CEO of JZ Vacation Rentals states how rankings can give a sense of transparency to the system, which we have adapted to. With a suppression list added to this database, it is easy to prevent spamming or badgering of the client across multiple channels. The last thing you want is an annoyed client.
Marketing Channels by Buying StageMarketing Channels by Buying Stage
Statistics and data analysis provide a method of measurement which in turn allows you to control the Channel Optimization.
If you still have doubts about channel optimization, let’s talk about the benefits. When we cut down all the extra unnecessary channel routes, you maximize your profits. Not just that but by allowing your client preferred channel only, we have a very happy and satisfied client getting what they want, how they want it. This in turn increase the lifetime value of the client, which increases profits. Similar to a carefully placed domino pattern, once the tiles are perfectly in place, you just have to know the first tile down and watch the process unveil itself.
Here’s what Alex Zemianek, the CEO of JZ Vacation Rentals have to say about Channel Optimization at the Fasterhouse presentation,
