Centralized Marketing Department, Integrated Multichannel Marketing Strategy: Does It Work?
One of the basic tenants of Multichannel Marketing is to avoid silo-based marketing departments, opting instead for a centralized marketing org structure.
The theory is that by integrating marketing across all channels, a centralized team provides customers with a seamless experience, regardless where the customer chooses to shop.
So here's a question for the vendor community that reads this blog. Have you observed a company where, after centralizing the marketing department, the company observed an increase in existing customer retention rates, and/or spend per retained customer, measured on an annual basis?
If the theory of a centralized marketing department and integrated marketing communications is valid, we should see metrics that look something like this:
Customer Performance By Marketing Strategy | ||||
HHs | Rebuy | $/Rebuy | Net Sales | |
This Year: Centralized/Integrated | 100,000 | 55.0% | $275.00 | $151.25 |
Last Year: Silo Based Strategy | 95,000 | 50.0% | $255.00 | $127.50 |
Vendors --- use the comments section of this post to share examples where there is genuine improvement, as measured by increases in annual repurchase rate, and spend per repurchaser.
Labels: Centralized Marketing Department, Centralized Org Structure, multichannel marketing, Silo