How to Identify Different Customer Touchpoints?
US companies on average spent 11.2% of their revenue on marketing, according to the 2018-19 CMO Spend Survey published by research giant Gartner. The survey also revealed that most businesses expect to grow their marketing budget going ahead. With companies dedicating such a huge budget to marketing activities, there is intense focus on return on investment (RoI). Among the most crucial factors determining marketing RoI is customer touchpoints, or the various points at which a brand interacts with its potential customers.
Why is it Important to Identify Different Customer Touchpoints?
Every interaction with a prospective customer contributes to a company’s brand image. These interactions have the power to form or alter the way your potential customer perceives your brand, business and offering (products / services you offer). The various touchpoints impact a prospective customer’s purchasing decision and an existing customer’s brand loyalty.
With intense competition and customers becoming increasingly discerning, it’s important to reach customers at various touchpoints. While this requires a multichannel approach, businesses need to identify those touchpoints that yield the highest awareness and conversion results.
Steps in the Customer Journey
Identifying the touchpoints is the first proactive step in creating the customer journey, from the first contact to the actual purchase.
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Awareness |
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A customer’s first awareness that a company or product exists |
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Knowledge |
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Learning more about the company and product |
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Consideration |
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After having enough knowledge, the customer begins considering a purchase |
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Selection |
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The actual purchase of the product |
Types of Touchpoints
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Human touchpoints |
Physical touchpoints |
Sensory touchpoints |
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Customer interactions with sales representatives or customer service personnel |
Interactions that include something tangible, where the customer can physically touch the medium |
Customer interactions that include viewing and listening |
Examples of Touchpoints
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Offline |
Online |
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How to Choose Customer Touchpoints?
Here are some of the considerations for selecting customer touchpoints for your marketing campaign:
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Reach |
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Widespread |
Regional |
Local |
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National |
Specific states and cities |
Target consumers where they live and work |
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Audience |
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Broad |
Targeted by Geography |
Targeted by Demographics |
Targeted by Interest Groups |
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Anyone and Everyone |
Select states and cities |
Gender, age-groups, income |
Profession, hobbies, interests |
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Brand Image |
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Mass Appeal |
Distinct, Elite, World-Class |
Popular Myths Busted in Selecting Customer Touchpoints?
Myth 1: A national brand cannot / should not opt for local marketing
Truth: The cost of a national campaign can be very high. Also, the RoI from different regions may vary significantly. Even national brands can improve effectiveness and efficiency by opting for local marketing, as it involves focusing on markets that make the most sense for your business. In this case, the risk is lower and payoff higher.
Myth 2: The ad, and not the medium, makes all the difference
Truth: The medium or channel chosen also communicates something about your brand. For instance, an ad in a local newspaper conveys a very different brand message than an advertisement in a prestigious print magazine.
Myth 3: It’s too expensive for smaller businesses to advertise
Truth: By rigorous targeting and focusing only on the target audience, even smaller businesses can benefit from advertising.
Identifying and selecting customer touchpoints needs to be an ongoing activity in your marketing campaign. After launching the campaign, it’s critical to track and measure the performance of each channel to identify those that offer your business the best returns.
