Touchpoint
Encyclopedia
Touchpoint is the interface
with customer
s, non-customers, employees and other stakeholders – before, during and after a transaction, respectively. This applies for business-to-business
as well as business-to-consumer markets.
-oriented management aims to augment and optimize the impact and cost-benefit ratio of internal and external processes. a single communication channel seldom provides high-impact reach to all target-persons. This includes customer relationship management
, buying and selling channels, distribution
, service, internal and external communication
, human resource management
, and process-optimisation programmes. Transaction
s take place across multiple divisions and touch points that span the whole value chain
of a company. For example, transactions may be made through classic advertising
, intranet
, or call centres, or through sales staff at the point of sale
. Precise measurements taken at all touch points, accompanied by a systematic management
of them, leads to an impact-oriented performance improvement of a brand's management
.
and departments, it filters and measures all the relevant contact points from the target customer’s view. Touchpoint management allows companies
to optimise all the interaction
s with the existing and potential customers, the internal communications
and process management
.
. Touchpoints in banking can include client service advisors, receipts, events, offerings, financial expert reports, website, intranet
, IT-systems, research reports, sponsoring, Word of mouth
, e-banking, regional office or contacts by phone with the client service advisors, etc.
, the product
, the service and the target segment. From the whole interface universe, the central touchpoints can be identified and assessed regarding their meaning and impact. With the help of touchpoint analysis companies should be able to evaluate their processes, measures and engagements holistically. Future asset
s and budget
s can be ideally employed and therefore should accomplish a sustainable
contribution to the success of the company.
approach, which focuses on the optimisation of the performance in all internal and market oriented management divisions. Normally companies manage their touchpoints in different areas such as marketing
, distribution
, communication
, service, public relations
, investor relations
or human resources. Due to specialisation, it involves the challenge of developing the contact points in a 360 degree view, which would enable a consistent brand experience over all interfaces and would simultaneously keep all the brand’s promises. For an efficient and consistent brand management
and the build up of a distinctive brand experience
, it is important to integrate the formal, content and time aspects of the communication activities.
- of a productProduct (business)In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
, - a service or
- a brandBrandThe American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
with customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
s, non-customers, employees and other stakeholders – before, during and after a transaction, respectively. This applies for business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
as well as business-to-consumer markets.
Application area
ROIReturn on investment
Return on investment is one way of considering profits in relation to capital invested. Return on assets , return on net assets , return on capital and return on invested capital are similar measures with variations on how “investment” is defined.Marketing not only influences net profits but also...
-oriented management aims to augment and optimize the impact and cost-benefit ratio of internal and external processes. a single communication channel seldom provides high-impact reach to all target-persons. This includes customer relationship management
Customer relationship management
Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
, buying and selling channels, distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
, service, internal and external communication
Communication
Communication is the activity of conveying meaningful information. Communication requires a sender, a message, and an intended recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast...
, human resource management
Human resource management
Human Resource Management is the management of an organization's employees. While human resource management is sometimes referred to as a "soft" management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of...
, and process-optimisation programmes. Transaction
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
s take place across multiple divisions and touch points that span the whole value chain
Value chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
of a company. For example, transactions may be made through classic advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
, intranet
Intranet
An intranet is a computer network that uses Internet Protocol technology to securely share any part of an organization's information or network operating system within that organization. The term is used in contrast to internet, a network between organizations, and instead refers to a network...
, or call centres, or through sales staff at the point of sale
Point of sale
Point of sale or checkout is the location where a transaction occurs...
. Precise measurements taken at all touch points, accompanied by a systematic management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
of them, leads to an impact-oriented performance improvement of a brand's management
Brand management
Brand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...
.
Touchpoint Analysis
The benefit of touchpoint analysis is that, while comprehending all relevant mediaMedia (communication)
In communications, media are the storage and transmission channels or tools used to store and deliver information or data...
and departments, it filters and measures all the relevant contact points from the target customer’s view. Touchpoint management allows companies
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
to optimise all the interaction
Interaction
Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The idea of a two-way effect is essential in the concept of interaction, as opposed to a one-way causal effect...
s with the existing and potential customers, the internal communications
Internal communications
Internal communications is the function responsible for effective communication among participants within an organization.A relatively young profession, IC draws on the theory and practice of related professions, not least journalism, knowledge management, public relations, media relations,...
and process management
Process management
Process management is the ensemble of activities of planning and monitoring the performance of a process. The term usually refers to the management of business processes and manufacturing processes...
.
Example: touchpoints of a bank
A customer has vast possibilities to get in contact with a bankBank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
. Touchpoints in banking can include client service advisors, receipts, events, offerings, financial expert reports, website, intranet
Intranet
An intranet is a computer network that uses Internet Protocol technology to securely share any part of an organization's information or network operating system within that organization. The term is used in contrast to internet, a network between organizations, and instead refers to a network...
, IT-systems, research reports, sponsoring, Word of mouth
Word of mouth
Word of mouth, or viva voce, is the passing of information from person to person by oral communication. Storytelling is the oldest form of word-of-mouth communication where one person tells others of something, whether a real event or something made up. Oral tradition is cultural material and...
, e-banking, regional office or contacts by phone with the client service advisors, etc.
Which touchpoints are relevant for success?
With bigger companies, during the inventory phase, often over a hundred touchpoints can be identified. This circumstance brings one specific question into focus: Which of these are relevant for the company’s success? The meanings of several touchpoints and the resulting consequences for the brand management must be specifically analyzed and assessed. The contact points, which are relevant for the company’s success, depend considerably on the industryIndustry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
, the product
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
, the service and the target segment. From the whole interface universe, the central touchpoints can be identified and assessed regarding their meaning and impact. With the help of touchpoint analysis companies should be able to evaluate their processes, measures and engagements holistically. Future asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
s and budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
s can be ideally employed and therefore should accomplish a sustainable
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
contribution to the success of the company.
Touchpoint Management
Touchpoint management can be seen as a multi disciplinary strategicStrategy
Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked...
approach, which focuses on the optimisation of the performance in all internal and market oriented management divisions. Normally companies manage their touchpoints in different areas such as marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, distribution
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
, communication
Communication
Communication is the activity of conveying meaningful information. Communication requires a sender, a message, and an intended recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast...
, service, public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
, investor relations
Investor relations
Investor Relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a...
or human resources. Due to specialisation, it involves the challenge of developing the contact points in a 360 degree view, which would enable a consistent brand experience over all interfaces and would simultaneously keep all the brand’s promises. For an efficient and consistent brand management
Brand management
Brand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...
and the build up of a distinctive brand experience
Customer experience
Customer experience is the sum of all experiences a customer has with a supplier of goods or services, over the duration of their relationship with that supplier. From awareness, discovery, attraction, interaction, purchase, use, cultivation and advocacy...
, it is important to integrate the formal, content and time aspects of the communication activities.
Literature
- Frazen, Giep, and Moriarty, Sandra (2009): The Science and Art of Branding. (M.E. Sharpe) ISBN 978-0-7656-1790-3.
- Spengler, C., Wirth, W. (2009): 360° Touchpoint analysis: Maximising the impact of marketing and sales activities. Content published in: io new management (Ed. ETH Zurich/Axel Springer Switzerland), nr. 3/2009, online: http://www.accelerom.com/fileadmin/pdf/Accelerom_Maximising-impact-marketing-sales_io-new-management_2009.pdf.
- Mueller, J., Spengler, C. (2008): Welcher Marken-Touchpoint zählt? In: Kaul, H., Steinmann, C. (Ed.): Community Marketing. Schaeffer-Poeschel, 2008. ISBN 978-3-7910-2757-9.
- Spengler, C. (2008): The competitive advantage of a brand typical client experience In: Handelszeitung & The Wall Street Journal (33), http://www.accelerom.com/fileadmin/pdf/Accelerom_brandtypical_experience_2008.pdf.
- Choy, Daryl (2008): What Exactly is Touchpoint? In: http://www.customerthink.com/blog/what_exactly_touchpoint