Multichannel marketing leads to stronger online sales numbers
January 15, 2014
Online credit card processing is a must-have for many small and medium-sized businesses in today's multichannel retail market. As consumers become more interested in using the Internet to interact with brands, offering a convenient portal for accepting credit and debit cards can lay the groundwork for stronger revenue numbers later on.
However, just as it is important to spread resources evenly across multiple retail channels, businesses must take a more diverse approach to their marketing strategies as well. AllBusiness.com cited data from a recent Borrell Associates study that found many brands are still devoting a large amount of money to traditional advertising channels to reach consumers. Specifically, 22 percent of SMB marketing budgets goes to funding newspaper ads. On the other hand, online marketing only makes up 19 percent of total budgets.
Investing in technology that allows stores to accept credit card payments online is a smart idea - especially this year, as online spending continues to grow at a rapid pace. Still, these efforts must be fully supplemented by a diverse portfolio of marketing strategies that reflect the organization's overall multichannel mindset. Hansen Lieu, director of solution marketing at SAP, wrote in Business 2 Community explaining the dangers of failing to think critically about how to reach target customers. He said many firms feel the need to focus on tactics that seek as many people as possible, rather than honing in on a specific group or channel.
"We all know the problems with this approach," Lieu said. "It's too generic and ineffective; and it's entirely inside-out; you don't get to draw on the customer's preferences."
A more thoughtful strategy for multichannel marketing will make all the difference in helping small and medium-sized businesses make the most of their online payment processing technology.