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May 3, 2004 - Strategy Magazine
News

Marketing departments revamp to suit consumers
New customer groups more likely to be defined by 'mom' than product lines

by Lisa D'Innocenzo
page 1

The customer has always been king, but some forward-thinking marketers are taking that to the extreme by electing Joe Shmoe head of their internal organizational configuration.

Nancy Helstab, managing director of Toronto-based marketing consultancy BrandEdge, sees a definite movement toward "consumercentric" structures and says that, like most trends, it's being accelerated by a tough economy. "Revenues are flattening and other than doing acquisitions, there's no silver bullet," she says. "Everyone's rolling up their sleeves and saying, 'We have to do more with what we have in the businesses we're in.'"

For many firms, the secret to doing more with what you have is to divide resources around consumer segments, as opposed to product lines, with the goal of getting a bigger share of wallet.

Bell Canada did just that last year. The telcom specifically assigned departments to look after the consumer, small business, medium business and enterprise targets. And in its consumer divisions, like Mobility, segmentation has become even more pronounced, says John Hillis, director of market development at Bell.

One of the most obvious examples is the introduction of Bell Mobility's youth-oriented Solo group. Hillis says its conception made sense, because young people have different attitudes and behaviours when it comes to cellphone usage. The advantage of Solo is that it makes marketing programs both more effective and efficient, he adds.

"Sometimes carving out a specific group and giving it a real focus and horsepower makes you quicker from a marketing perspective. By listening to customers and having a focused group, you have the critical mass to deliver. When it's part of the overall marketing group, it doesn't always get the attention it deserves, and you certainly don't get people who can really become the voice of the customer."

Hillis points to Bell Solo's World Wrestling Entertainment mobile, which alerts users about front-of-the-line tickets, as well as up-to-date info about the sport. "That was something that, had we not been really in tune with key drivers, we might have glossed over, and with that product we've seen incredible pickup," says Hillis. "We doubled our business case in the first two quarters."

In fact, Solo has performed so well, that Bell Mobility has decided to organize around other consumer targets, such as women and ethnic. This Mother's Day, for example, the firm is running a promotion offering a free subscription to Canadian Living with the purchase of a cellphone. "Without a group looking at a [particular customer base], you may not have the time to strike a partnership like that," he adds.

While Bell has made significant strides in this regard recently, the banks have led the charge, with the likes of Scotiabank and BMO having realigned their internal marketing departments several years ago, in an effort to better address their customers.

Scotiabank still has business lines devoted to product, but they have indeed become more centralized, according to VP brand and marketing management Rick White. In other words, all things related to borrowing are under one department, as are all things related to investment. The marketing department then works with both divisions, to "develop action plans in the marketplace that are simple to understand and that are customercentric."

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