Digital Marketing Theatre - 17th June, 10:30-11:00 Personalised email content based on individual subscriber preferences is already widely used, but a quantified understanding of subscriber engagement is now emerging as a valuable new insight into past, current and most importantly future customer behaviour. This presentation explores some of the latest developments, applications and benefits of 'engagement' profiling.

1. How engaged are your customers,
how do you know
and why should you care?
Tony Kent
Sign-Up.to

2. 1. How engaged are your customers,
how do you know
and why should you care?

3. Engagement
en·gage·ment [en-geyj-muhnt]
Noun
Ah yes , and ..
What is engagement?

4. Specifically .. customer engagement
Engagement
en·gage·ment [en-geyj-muhnt]
Noun
a pledge, an obligation or agreement
the act or state of interlocking
• Bringing customers close to your brand
• Developing a high quality customer relationship
• Creating a state of mutually valuable interaction ..
your

5. Specifically .. e-marketing engagement
Typical email engagement characteristics
• Highly engaged
- Regular open, click through and transact
- Brand champions to peers and colleagues
• Passive
- Opens, irregular visit, average/low completion
• Disengaged
- Habitual non-read/delete, no recent purchase
• Lost (unsubscribed)
- No interest, potential brand detractor ..

6. Permission
Permission is the foundation of all engagement
The way to make advertising
work again
“the privilege (not the right) to
delivering anticipated, personal
and relevant messages to people
who actually want to receive
them” ..
Turning strangers into friends and friends into customers

7. How engaged are your customers,
2. how do you know?
and why should you care?

8. Engagement profiling
Profiling for “precision marketing” – collecting insight
• Engagement is 1 of 5 profiling “dimensions”
1. Engagement
2. Geo-location
3. Profiles
4. Lists
5. Frequency

9. Engagement profiling
Dimensions and Audiences
• Dimensions are
used to create segmented
data “audiences”
• Audiences are a dynamic
data segmentation
• Audiences can comprise
1 or more profile dimensions
• Include/exclude type operations

10. Engagement profiling
Engagement scoring algorithm
• In-house developed engagement algorithm
• Implemented across all Sign-Up.to customer
accounts and campaigns
• Automatically measures quality of customer
e-relationship over time
• Based on multiple parameters including ..
• Frequency of interaction
• Quantity of interaction
• Type/quality/depth of interaction

11. Engagement profiling
What you need to know ..
• 5* Highly engaged
• 3* Average
• 1* Disengaged
• Initial subscription = 3*
• Score increases with +ve
subsequent behaviour
• Score decreases with –ve
behaviour and time ..

12. Engagement profiling
Engagement algorithm – some background
• Starring bands are based on both theoretical
and empirical data
• Bands 1*-5* are non-linear between min & max
(for accurate reflection across range of scenarios)
• New data is initially assigned a null rating
• Campaign interactions (open, click, forward,
complete) are given weighted engagement
increments
• Opt-in completion is a key engagement indicator ..

13. Engagement profiling
Engagement algorithm – some more background
• Multiple single campaign interactions gain
additional engagement increments
• Passive engagement is long-term negative
• Non-engagers progressively decay in their star
rating over time
• Habitual non-engagers decay proportionately
more rapidly ..

14. Advantages
• Quantitative measure of an abstract concept
• Multi-input algorithm provides a holistic view
• Automated process – KPI’s are updated
automatically as campaigns are executed
• Rating is dynamic – results are continuous
• Legacy data can be included from replayed historic
campaigns
• Engagement score is available for use in
segmenting data and targeting future campaigns ..
Engagement profiling

15. 0
500000
1000000
1500000
5*
4*
3*
2*
1*
Typical engaged audience profile
Characteristics
• Engaged
• Regular communication
schedule
• Subscribers building
• Lots of highly engaged
subscribers
• Proportion of highly
engaged subscribers
increasing over time ..

16. Typical disengaged audience profile
0
500000
1000000
1500000
2000000
5*
4*
3*
2*
1*
Characteristics
• Disengaged
• Irregular communication
produces spiky profile
• Subscribers building
but..
• Engagement diminishing
over time
• 1* subscribers
increasingly dominant

17. eCommerce/retaileCommerce/retail
Case study engagement profiles
%ofsubscribers
5*
1*
5*
1*

18. Case study profiles
eCommerce/retailPublisher
%ofsubscribers
5*
1*
5*
1*

19. Case study profiles
Financial servicesEvents/Promotion
%ofsubscribers
5*
1*
5*
1*

20. Using engagement
Collect insight for enhanced subscriber intelligence
• Understand the relative engagement of:
- your overall subscriber data
- specific subscriber groups
- individuals within your audience
• Integrate into your CRM for sales intelligence
• Gain a better understanding of specific and
long-term campaign performance
• Create audience list segmentation according to
engagement history – for future campaign use ..

21. Using engagement
Customise campaigns for specific behaviour groups
• Reward, nurture and re-engage
• Use to reward and progress engaged subscribers
- Loyalty schemes, VIP offers
• Use to nurture average engagement subscribers
- Entice with upsell promotions
• Use to re-connect with disengaged subscribers
- re-engagement campaigns, different messaging,
offers, returning discounts, welcome emails ..

22. Reconnecting with low engagers
• B2B professional
development
seminar company
Target
Campaign
Audience

23. Reconnecting with low engagers
• Subscription renewal
• 2,500 subscribers
• 1-3* rating
• Low open rate
• 6 renewals
• Typical 10% open
• Now 20-30% with
cleaned data
• B2B professional
development
seminar company

24. Rewarding high engagers
• B2C live audience
ticketing company
Target
Campaign
Audience

25. Rewarding high engagers
• Average open
rate 18%
• 307,000 5*
sends from 1.4
million (20.7%)
• Valued members
campaign open
rate 61%
• B2C live audience
ticketing company

26. How engaged are your customers,
how do you know
3. and why should you care?

27. Why should you care?
Engagement impacts key business challenges ..
• Increasing revenue and profits
• Growing customer base and market share
• Managing costs, maximising investment ROI, value
• Positioning, boosting brand and reputation
• Increasing competitiveness
• Skills shortages and talent management
• Managing compliance, risk, continuity and regulatory issues
• Enhancing customer experience and relationship
• Operational excellence and profitability – lean, agility
• Sustainability, long-term commercial outlook

28. Why should you care?
Engaged customers drive sustainable revenue ..
• Good news for your future business
• Successful companies look at the initial sale as
a way of earning a lifelong customer (Sage)
• Loyal customers typically account for 80% of
company profit
• Loyalty is a hugely powerful buying factor
• Increased engagement increases resale and
upsell from 30%-50% (Forbes)

29. Why should you care?
Engaged customers are your brand advocates..
• Good news for your brand
• Engaged customers are valuable brand advocates
• (.. check your Net promoter Score, for % brand
advocates and detractors)
• Their networks significantly increase your own
marketing reach
• Referral – 65% of new business comes from
referral (NYT)
• 83% of satisfied customers are willing to refer ..

30. Why should you care?
Engaged customers drive revenue ..
• Good news for your Sales team
• New customer acquisition costs are high
• Customer retention is good sales-sense
• Referred prospects have far higher closure
potential (>50%)
• Repeat customers spend more and are typically
less price sensitive
• Returning customers spend more on each
subsequent transaction ..

31. Good news!

32. • Software developer & service provider
• Hospitality, Retail/eCommerce, Events, Public ..
• e-marketing - 100% Permission based
- Specifically high-engagement, targeted, relevant
• Self-service platform – Email, SMS & social media
• Support, training etc
• Professional management services
- Customisation
- Campaign outsourcing
- Strategic guidance
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33. Free guides - www.signupto.com/resources
• Coffee break guides to email and SMS marketing
• 2014 UK email benchmark report
• Precision marketing using audience dimensions
Free seminars - www.signupto.com/resources/events
• Discovery morning (11-Sep, 27-Nov) – London
Free software - www.signupto.com/internet-world
Or visit us on stand IW688
Further resources – stand IW688