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Measuring Customer Engagement
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Today’s Agenda
 What is Engagement?
 The Importance of Analytics
 Customer Engagement Framework
 Engagement Strategies & Metrics
 Q & A
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Chief Analyst – Demand Metric
Jerry Rackley
 30+ years in sales & marketing
 Adjunct marketing faculty:
Oklahoma State University
 Chief Analyst at Demand Metric since
2011
What is Customer Member Engagement?
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
…the strategies, processes, technology and tools that enable
an organization to attract, engage, gain, retain and influence
the behavior of members consistently and effectively across all
touch points throughout the lifetime of the members’
relationship with the association.
The Evolution of Customer/Member Engagement
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer Satisfaction Customer Experience Customer Engagement
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Member Engagement
 Intentional
 Cultivated
 Nurtured
 Measured
1. The process of identifying metrics that are valid indicators of marketing’s
performance in pursuit of its objectives.
2. Tracking those metrics over time.
3. Using the results to improve how marketing does it work.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Analytics Process
“Marketing is fluff – an
expense we can’t afford.”
“Marketing is critical to our
success – we can’t live without it!”
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Why Analytics are Important
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Credibility Gap
Source: Fournaise Marketing Group. 2012
8%
51%
8%
21%
12%
0% 10% 20% 30% 40% 50% 60%
Unnecessary expense
Necessary expense
Breakeven center
Modestly profitable revenue center
Highly profitable revenue center
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
How Marketing is Perceived Internally
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Remedy: Marketing Analytics
Everyone has an opinion about the quality or value of marketing’s efforts. What does
the data say?
“…when you can measure what you are speaking about, and
express it in numbers, you know something about it; but when
you cannot express it in numbers, your knowledge is of a
meagre and unsatisfactory kind…”
Lord Kelvin
Keep marketing focused on objectives.
Build marketing’s credibility.
Help marketing improve its performance.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Marketing Analytics:
1. Three marketing organizations.
2. Each has a different attitude toward analytics.
3. Attitude determines altitude.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
An Analytics Tale
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The Analytics House of Straw
 No analytics process.
 Marketing leadership is instinctive.
 Determining marketing’s success is completely subjective.
 Marketing is response-driven, reactive.
 Marketing benefits from/is victimized by internal politics.
 Funding rollercoaster.
 Marketing viewed as an expense.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Analytics House of Sticks
 Analytics process uses “vanity” metrics.
 Marketing leadership still primarily instinctive.
 Determining marketing’s success is mostly subjective.
 Marketing is operational.
 Analytics function as a smokescreen.
 Funding rollercoaster.
 Marketing still viewed as an expense.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Analytics House of Bricks
 Analytics process metrics linked to revenue.
 Marketing leadership is data-informed.
 Determining marketing’s success is objective.
 Marketing is strategic.
 Analytics function as guardrails.
 Funding based on a business case.
 Marketing viewed as a revenue center.
1. Assess your readiness
2. Review/clarify business objectives
3. Select metrics
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Getting Started with Analytics
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Cultural Readiness Assessment
Critical success factor: Culture
Culture as a Barrier
 Work on what’s urgent
 Punish mistakes
 Trust intuition
 Political environment
Culture as a Catalyst
 Work on what’s important
 Learn from mistakes
 Trust data
 Transparent environment
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Review Objectives
What are the main business objectives?
 Marketing always supports association objectives.
 Marketing’s plan derived from the association objectives.
 Marketing analytics measure success against the plan.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Review Objectives
What if the association’s objectives aren’t clear?
 Ask for them.
 Suggest some.
 Derive some.
Example: Association to marketing objective.
Association Objective
 Improve profitability
Marketing Objectives
 Increase member engagement
 Improve member retention
 Increase share-of-wallet
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Review Objectives
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Selecting Metrics
Select metrics that link to marketing’s objectives:
Marketing Objectives
 Increase member engagement
 Improve member retention
 Increase share-of-wallet
Metrics
 Conference participation, social, CLV
 Member retention rate
 Average spend per member
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Selecting Metrics
Caution:
“…not everything that can be counted counts, and not everything
that counts can be counted.”
William Bruce Cameron
Informal Sociology: A Casual Introduction to Sociological Thinking
3%
10%
13%
28%
33%
76%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other metrics
Recency, Frequency, Monetary (RFM)
None
Reach/influence
Conversions
Open rates
Click-thru rates
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Association Marketing Metrics
Source: Demand Metric Research Corporation
Identify metrics that matter.
 Top-down process.
 Don’t choose metrics simply because the data is there.
 Some important metrics may not have data available.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Selecting Metrics
Engagement Framework
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer Engagement Framework
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer Engagement Maturity Model
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Views Customer Views Customer
Customer Engagement Maturity Model
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity Model
Orientation
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Engagement Undefined Progressive Mature World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
options to drive revenue
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Resources for growth
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
revenue impact
Tools &
Platforms
Development; Point tools
for Email, Content and
Social Media Marketing;
No Online Community,
Personalization or Loyalty
tools/applications
Platforms, applications and
workflows that perform
specific functions have
been implemented for the
buyer’s journey and
personas, but little
coordination across Sales,
Tools and platforms for all
customer journey points,
from problem identification
to advocacy development,
have been implemented;
Maintain 360-degree
customer profiles and
Utilizes comprehensive,
end-to-end system
integration of all Customer
Engagement related
platforms with tight
integration to Enterprise
CRM, MA and other legacy
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity Model
Leadership
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Engagement
developed and delivered
ad hoc
coordinated across
functions to meet customer
expectations
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
options to drive revenue
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Resources for growth
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
revenue impact
Tools &
Platforms
Development; Point tools
for Email, Content and
Social Media Marketing;
No Online Community,
Personalization or Loyalty
tools/applications
Platforms, applications and
workflows that perform
specific functions have
been implemented for the
buyer’s journey and
personas, but little
coordination across Sales,
Marketing and Customer
Care exists
Tools and platforms for all
customer journey points,
from problem identification
to advocacy development,
have been implemented;
Maintain 360-degree
customer profiles and
implement behavioral
targeting
Utilizes comprehensive,
end-to-end system
integration of all Customer
Engagement related
platforms with tight
integration to Enterprise
CRM, MA and other legacy
ERP systems
Relies on traditional
engagement tactics like
website landing pages with
Understands need for
creating buyer journey and
personas to better target
Aligns programs and
campaigns to consistently
deliver full Customer
Focused on creating a
differentiated customer
experience and
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity Model
Tools & Platform
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
options to drive revenue
Willing participant;
Resources for growth
Engagement for sales and
revenue impact
Tools &
Platforms
Development; Point tools
for Email, Content and
Social Media Marketing;
No Online Community,
Personalization or Loyalty
tools/applications
Platforms, applications and
workflows that perform
specific functions have
been implemented for the
buyer’s journey and
personas, but little
coordination across Sales,
Marketing and Customer
Care exists
Tools and platforms for all
customer journey points,
from problem identification
to advocacy development,
have been implemented;
Maintain 360-degree
customer profiles and
implement behavioral
targeting
Utilizes comprehensive,
end-to-end system
integration of all Customer
Engagement related
platforms with tight
integration to Enterprise
CRM, MA and other legacy
ERP systems
Customer
Success
Relies on traditional
engagement tactics like
website landing pages with
limited content targeting;
Lack of customer journey;
One-way dialog from
seller’s perspective
Understands need for
creating buyer journey and
personas to better target
content; Has implemented
point tactics to improve
conversion and close
rates, improve retention
and reduce churn
Aligns programs and
campaigns to consistently
deliver full Customer
Engagement to drive
loyalty; Supports robust
external & internal online
communities and advocacy
& loyalty programs
Focused on creating a
differentiated customer
experience and
operationalizing it through
all marketing, sales and
customer care touch
points, programs and
campaigns
Some Marketing, Sales
Cross-functional Fully aligned Marketing,
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity Model
Customer Success
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity ModelCustomer
Success
Relies on traditional
engagement tactics like
website landing pages with
limited content targeting;
Lack of customer journey;
One-way dialog from
seller’s perspective
Understands need for
creating buyer journey and
personas to better target
content; Has implemented
point tactics to improve
conversion and close
rates, improve retention
and reduce churn
Aligns programs and
campaigns to consistently
deliver full Customer
Engagement to drive
loyalty; Supports robust
external & internal online
communities and advocacy
& loyalty programs
Focused on creating a
differentiated customer
experience and
operationalizing it through
all marketing, sales and
customer care touch
points, programs and
campaigns
Alignment Marketing and Sales
operate in silos
Some Marketing, Sales
and Customer Care
integration, but cross-
functional responsibility for
sales and revenue may not
exist yet
Cross-functional
integration across
Marketing, Sales and
Customer Care, but are not
fully aligned
Fully aligned Marketing,
Sales and Customer Care
with cross-functional
responsibility for sales,
revenue and profit growth
Budget &
Staff
General marketing budget
without direct allocation for
Customer Experience or
Engagement; Staff is
contracted or at the
Coordinator level only
Budget allocated; Defined
point roles and
responsibilities for
Customer Experience or
Engagement
Budget with business case
to justify spend; Dedicated
marketing/sales roles for
Customer Engagement
Budget connected to
customer satisfaction
goals; Organization
aligned for maximum
impact of Customer
Engagement
Alignment
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Willing participant;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Engagement for sales and
Customer Engagement Maturity Model
seller’s perspective
rates, improve retention
and reduce churn
communities and advocacy
& loyalty programs
points, programs and
campaigns
Alignment Marketing and Sales
operate in silos
Some Marketing, Sales
and Customer Care
integration, but cross-
functional responsibility for
sales and revenue may not
exist yet
Cross-functional
integration across
Marketing, Sales and
Customer Care, but are not
fully aligned
Fully aligned Marketing,
Sales and Customer Care
with cross-functional
responsibility for sales,
revenue and profit growth
Budget &
Staff
General marketing budget
without direct allocation for
Customer Experience or
Engagement; Staff is
contracted or at the
Coordinator level only
Budget allocated; Defined
point roles and
responsibilities for
Customer Experience or
Engagement
Budget with business case
to justify spend; Dedicated
marketing/sales roles for
Customer Engagement
Budget connected to
customer satisfaction
goals; Organization
aligned for maximum
impact of Customer
Engagement
Metrics
No formal measurements
in place
Analytics to monitor and
track sales success, such
as % of Quota Achieved,
Renewal Rate, Revenue
Opportunity Metrics, Cost
per Lead (CPL), etc.
Dashboard tracks relevant
customer care, demand
generation, communication
and sales metrics; Metrics
include # Marketing
Qualified Leads (MQLs),
Avg. Resolution Time, %
Escalations to Tier 2
Enterprise-wide dashboard
with visual representation
of user acquisition and
engagement by behavior,
experience, etc.; Metrics
may include Customer
Satisfaction Index (CSI),
Customer Lifetime Value
Budget & Staff
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Customer
Engagement
Stage 1:
Undefined
Stage 2:
Progressive
Stage 3:
Mature
Stage 4:
World-Class
Orientation
No defined strategy or
process for Customer
Engagement
Strategy is uncoordinated;
Aware of need to create a
customer journey
experience; Projects are
developed and delivered
ad hoc
Defined strategy and
processes exist for
Customer Engagement
across an Enterprise;
Touch points are
coordinated across
functions to meet customer
expectations
Defined, integrated
strategy for Customer
Engagement exists across
an Enterprise; Coordinated
effort between Marketing,
Sales and Customer Care
to provide closed loop
engagement
Leadership
Sees Customer
Engagement as just one
part of traditional
marketing, not a focus
Views Customer
Engagement as important;
Allocates budget & staff
resources to explore
program and campaign
Views Customer
Engagement as the
primary focus of marketing;
Long-term commitment to
Customer Engagement;
Views Customer
Engagement as the
primary marketing focus;
Organization aligned
around Customer
Customer Engagement Maturity Model
Alignment
operate in silos functional responsibility for
sales and revenue may not
exist yet
Marketing, Sales and
Customer Care, but are not
fully aligned
with cross-functional
responsibility for sales,
revenue and profit growth
Budget &
Staff
General marketing budget
without direct allocation for
Customer Experience or
Engagement; Staff is
contracted or at the
Coordinator level only
Budget allocated; Defined
point roles and
responsibilities for
Customer Experience or
Engagement
Budget with business case
to justify spend; Dedicated
marketing/sales roles for
Customer Engagement
Budget connected to
customer satisfaction
goals; Organization
aligned for maximum
impact of Customer
Engagement
Metrics
No formal measurements
in place
Analytics to monitor and
track sales success, such
as % of Quota Achieved,
Renewal Rate, Revenue
Opportunity Metrics, Cost
per Lead (CPL), etc.
Dashboard tracks relevant
customer care, demand
generation, communication
and sales metrics; Metrics
include # Marketing
Qualified Leads (MQLs),
Avg. Resolution Time, %
Escalations to Tier 2
Customer Support
Enterprise-wide dashboard
with visual representation
of user acquisition and
engagement by behavior,
experience, etc.; Metrics
may include Customer
Satisfaction Index (CSI),
Customer Lifetime Value
(CLV), Net Promoter Score
(NPS), etc.
Metrics
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Member Success Role
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Engagement Strategies & Metrics
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Engagement Strategy: Communities
Engagement engines!
“Websites & private social networks that enable members to interact in a controlled
setting, created and maintained by an association to foster communication among
peers or like-minded individuals.”
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Branded, Online Community Benefits
158
186
201
224
319
367
371
374
0 50 100 150 200 250 300 350 400
Greater revenue attributable to referrals
Lower cost support channel
New ideas for products & services
Validation of new ideas for marketing content
Improved customer support quality
Better customer perception of the brand
A more loyal customer base
Better understanding of customer/prospect needs
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Branded, Online Community Adoption
63%
34%
3%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No I don't know
36%
Source: Demand Metric Research Corporation
17%
48%
10%
25%
0%
10%
20%
30%
40%
50%
60%
No metrics Basic metrics Intermediate metrics Advanced metrics
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Community Success Metrics
Source: Demand Metric Research Corporation
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Content Marketing Problems
4%
10%
20%
22%
26%
27%
29%
29%
29%
35%
40%
58%
0% 10% 20% 30% 40% 50% 60% 70%
None of these challenges exist for us
Other problems
Content quality is poor
Content breadth too narrow or broad
Content depth too deep or not deep enough
Prospects won't surrender contact info
Content formats are boring or uninspiring
Content isn't generating interest or attention
Long-form content too hard to absorb
Free content isn't generating leads well
Content quantity is insufficient
Content doesn't create engagement…
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Content Problems
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Interactive Content Types
1%
7%
7%
9%
10%
12%
14%
15%
20%
20%
24%
40%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Interactive LookBooks
Games
Other types
Wizards
Configurators
Quizzes
Interactive white papers
Interactive eBooks
Contests
Calculators
Assessments
None
17%
48%
10%
14%
11%
0% 10% 20% 30% 40% 50% 60%
No measurements
Basic measurements
Measures of interest
Measures of influence
Measures of engagement
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Content Effectiveness Measures
 Customer (Member) Lifetime Value (CLV)
 Customer (Member) Lifespan/Cycle
 Customer (Member) Retention Rate
 Customer (Member) Touchpoints
 Activity/Usage time or duration
 Visit frequency
 Core actions taken
 Advocacy
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Key Engagement Metrics
Q & A
Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.
For more information, visit us at:
www.demandmetric.com
Demand Metric Research Corporation
562 Wellington Street, London, ON CANADA, N6A 3R5
Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.
Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.

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Jerry Rackley- Measuring Customer Engagement

  • 1. Measuring Customer Engagement Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 2. Today’s Agenda  What is Engagement?  The Importance of Analytics  Customer Engagement Framework  Engagement Strategies & Metrics  Q & A Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 3. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Chief Analyst – Demand Metric Jerry Rackley  30+ years in sales & marketing  Adjunct marketing faculty: Oklahoma State University  Chief Analyst at Demand Metric since 2011
  • 4. What is Customer Member Engagement? Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. …the strategies, processes, technology and tools that enable an organization to attract, engage, gain, retain and influence the behavior of members consistently and effectively across all touch points throughout the lifetime of the members’ relationship with the association.
  • 5. The Evolution of Customer/Member Engagement Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Satisfaction Customer Experience Customer Engagement
  • 6. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Member Engagement  Intentional  Cultivated  Nurtured  Measured
  • 7. 1. The process of identifying metrics that are valid indicators of marketing’s performance in pursuit of its objectives. 2. Tracking those metrics over time. 3. Using the results to improve how marketing does it work. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Analytics Process
  • 8. “Marketing is fluff – an expense we can’t afford.” “Marketing is critical to our success – we can’t live without it!” Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Why Analytics are Important
  • 9. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Credibility Gap Source: Fournaise Marketing Group. 2012
  • 10. 8% 51% 8% 21% 12% 0% 10% 20% 30% 40% 50% 60% Unnecessary expense Necessary expense Breakeven center Modestly profitable revenue center Highly profitable revenue center Source: Demand Metric Research Corporation Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. How Marketing is Perceived Internally
  • 11. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Remedy: Marketing Analytics Everyone has an opinion about the quality or value of marketing’s efforts. What does the data say? “…when you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind…” Lord Kelvin
  • 12. Keep marketing focused on objectives. Build marketing’s credibility. Help marketing improve its performance. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Marketing Analytics:
  • 13. 1. Three marketing organizations. 2. Each has a different attitude toward analytics. 3. Attitude determines altitude. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. An Analytics Tale
  • 14. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Analytics House of Straw  No analytics process.  Marketing leadership is instinctive.  Determining marketing’s success is completely subjective.  Marketing is response-driven, reactive.  Marketing benefits from/is victimized by internal politics.  Funding rollercoaster.  Marketing viewed as an expense.
  • 15. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Analytics House of Sticks  Analytics process uses “vanity” metrics.  Marketing leadership still primarily instinctive.  Determining marketing’s success is mostly subjective.  Marketing is operational.  Analytics function as a smokescreen.  Funding rollercoaster.  Marketing still viewed as an expense.
  • 16. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. The Analytics House of Bricks  Analytics process metrics linked to revenue.  Marketing leadership is data-informed.  Determining marketing’s success is objective.  Marketing is strategic.  Analytics function as guardrails.  Funding based on a business case.  Marketing viewed as a revenue center.
  • 17. 1. Assess your readiness 2. Review/clarify business objectives 3. Select metrics Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Getting Started with Analytics
  • 18. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Cultural Readiness Assessment Critical success factor: Culture Culture as a Barrier  Work on what’s urgent  Punish mistakes  Trust intuition  Political environment Culture as a Catalyst  Work on what’s important  Learn from mistakes  Trust data  Transparent environment
  • 19. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Review Objectives What are the main business objectives?  Marketing always supports association objectives.  Marketing’s plan derived from the association objectives.  Marketing analytics measure success against the plan.
  • 20. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Review Objectives What if the association’s objectives aren’t clear?  Ask for them.  Suggest some.  Derive some.
  • 21. Example: Association to marketing objective. Association Objective  Improve profitability Marketing Objectives  Increase member engagement  Improve member retention  Increase share-of-wallet Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Review Objectives
  • 22. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Selecting Metrics Select metrics that link to marketing’s objectives: Marketing Objectives  Increase member engagement  Improve member retention  Increase share-of-wallet Metrics  Conference participation, social, CLV  Member retention rate  Average spend per member
  • 23. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Selecting Metrics Caution: “…not everything that can be counted counts, and not everything that counts can be counted.” William Bruce Cameron Informal Sociology: A Casual Introduction to Sociological Thinking
  • 24. 3% 10% 13% 28% 33% 76% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Other metrics Recency, Frequency, Monetary (RFM) None Reach/influence Conversions Open rates Click-thru rates Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Association Marketing Metrics Source: Demand Metric Research Corporation
  • 25. Identify metrics that matter.  Top-down process.  Don’t choose metrics simply because the data is there.  Some important metrics may not have data available. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Selecting Metrics
  • 26. Engagement Framework Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 27. Customer Engagement Framework Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Source: Demand Metric Research Corporation
  • 28. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Engagement Maturity Model Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Views Customer Views Customer Customer Engagement Maturity Model Source: Demand Metric Research Corporation
  • 29. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity Model Orientation Source: Demand Metric Research Corporation
  • 30. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Engagement Undefined Progressive Mature World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign options to drive revenue Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Resources for growth Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and revenue impact Tools & Platforms Development; Point tools for Email, Content and Social Media Marketing; No Online Community, Personalization or Loyalty tools/applications Platforms, applications and workflows that perform specific functions have been implemented for the buyer’s journey and personas, but little coordination across Sales, Tools and platforms for all customer journey points, from problem identification to advocacy development, have been implemented; Maintain 360-degree customer profiles and Utilizes comprehensive, end-to-end system integration of all Customer Engagement related platforms with tight integration to Enterprise CRM, MA and other legacy Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity Model Leadership Source: Demand Metric Research Corporation
  • 31. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Engagement developed and delivered ad hoc coordinated across functions to meet customer expectations Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign options to drive revenue Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Resources for growth Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and revenue impact Tools & Platforms Development; Point tools for Email, Content and Social Media Marketing; No Online Community, Personalization or Loyalty tools/applications Platforms, applications and workflows that perform specific functions have been implemented for the buyer’s journey and personas, but little coordination across Sales, Marketing and Customer Care exists Tools and platforms for all customer journey points, from problem identification to advocacy development, have been implemented; Maintain 360-degree customer profiles and implement behavioral targeting Utilizes comprehensive, end-to-end system integration of all Customer Engagement related platforms with tight integration to Enterprise CRM, MA and other legacy ERP systems Relies on traditional engagement tactics like website landing pages with Understands need for creating buyer journey and personas to better target Aligns programs and campaigns to consistently deliver full Customer Focused on creating a differentiated customer experience and Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity Model Tools & Platform Source: Demand Metric Research Corporation
  • 32. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. options to drive revenue Willing participant; Resources for growth Engagement for sales and revenue impact Tools & Platforms Development; Point tools for Email, Content and Social Media Marketing; No Online Community, Personalization or Loyalty tools/applications Platforms, applications and workflows that perform specific functions have been implemented for the buyer’s journey and personas, but little coordination across Sales, Marketing and Customer Care exists Tools and platforms for all customer journey points, from problem identification to advocacy development, have been implemented; Maintain 360-degree customer profiles and implement behavioral targeting Utilizes comprehensive, end-to-end system integration of all Customer Engagement related platforms with tight integration to Enterprise CRM, MA and other legacy ERP systems Customer Success Relies on traditional engagement tactics like website landing pages with limited content targeting; Lack of customer journey; One-way dialog from seller’s perspective Understands need for creating buyer journey and personas to better target content; Has implemented point tactics to improve conversion and close rates, improve retention and reduce churn Aligns programs and campaigns to consistently deliver full Customer Engagement to drive loyalty; Supports robust external & internal online communities and advocacy & loyalty programs Focused on creating a differentiated customer experience and operationalizing it through all marketing, sales and customer care touch points, programs and campaigns Some Marketing, Sales Cross-functional Fully aligned Marketing, Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity Model Customer Success Source: Demand Metric Research Corporation
  • 33. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity ModelCustomer Success Relies on traditional engagement tactics like website landing pages with limited content targeting; Lack of customer journey; One-way dialog from seller’s perspective Understands need for creating buyer journey and personas to better target content; Has implemented point tactics to improve conversion and close rates, improve retention and reduce churn Aligns programs and campaigns to consistently deliver full Customer Engagement to drive loyalty; Supports robust external & internal online communities and advocacy & loyalty programs Focused on creating a differentiated customer experience and operationalizing it through all marketing, sales and customer care touch points, programs and campaigns Alignment Marketing and Sales operate in silos Some Marketing, Sales and Customer Care integration, but cross- functional responsibility for sales and revenue may not exist yet Cross-functional integration across Marketing, Sales and Customer Care, but are not fully aligned Fully aligned Marketing, Sales and Customer Care with cross-functional responsibility for sales, revenue and profit growth Budget & Staff General marketing budget without direct allocation for Customer Experience or Engagement; Staff is contracted or at the Coordinator level only Budget allocated; Defined point roles and responsibilities for Customer Experience or Engagement Budget with business case to justify spend; Dedicated marketing/sales roles for Customer Engagement Budget connected to customer satisfaction goals; Organization aligned for maximum impact of Customer Engagement Alignment Source: Demand Metric Research Corporation
  • 34. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Willing participant; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Engagement for sales and Customer Engagement Maturity Model seller’s perspective rates, improve retention and reduce churn communities and advocacy & loyalty programs points, programs and campaigns Alignment Marketing and Sales operate in silos Some Marketing, Sales and Customer Care integration, but cross- functional responsibility for sales and revenue may not exist yet Cross-functional integration across Marketing, Sales and Customer Care, but are not fully aligned Fully aligned Marketing, Sales and Customer Care with cross-functional responsibility for sales, revenue and profit growth Budget & Staff General marketing budget without direct allocation for Customer Experience or Engagement; Staff is contracted or at the Coordinator level only Budget allocated; Defined point roles and responsibilities for Customer Experience or Engagement Budget with business case to justify spend; Dedicated marketing/sales roles for Customer Engagement Budget connected to customer satisfaction goals; Organization aligned for maximum impact of Customer Engagement Metrics No formal measurements in place Analytics to monitor and track sales success, such as % of Quota Achieved, Renewal Rate, Revenue Opportunity Metrics, Cost per Lead (CPL), etc. Dashboard tracks relevant customer care, demand generation, communication and sales metrics; Metrics include # Marketing Qualified Leads (MQLs), Avg. Resolution Time, % Escalations to Tier 2 Enterprise-wide dashboard with visual representation of user acquisition and engagement by behavior, experience, etc.; Metrics may include Customer Satisfaction Index (CSI), Customer Lifetime Value Budget & Staff Source: Demand Metric Research Corporation
  • 35. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Customer Engagement Stage 1: Undefined Stage 2: Progressive Stage 3: Mature Stage 4: World-Class Orientation No defined strategy or process for Customer Engagement Strategy is uncoordinated; Aware of need to create a customer journey experience; Projects are developed and delivered ad hoc Defined strategy and processes exist for Customer Engagement across an Enterprise; Touch points are coordinated across functions to meet customer expectations Defined, integrated strategy for Customer Engagement exists across an Enterprise; Coordinated effort between Marketing, Sales and Customer Care to provide closed loop engagement Leadership Sees Customer Engagement as just one part of traditional marketing, not a focus Views Customer Engagement as important; Allocates budget & staff resources to explore program and campaign Views Customer Engagement as the primary focus of marketing; Long-term commitment to Customer Engagement; Views Customer Engagement as the primary marketing focus; Organization aligned around Customer Customer Engagement Maturity Model Alignment operate in silos functional responsibility for sales and revenue may not exist yet Marketing, Sales and Customer Care, but are not fully aligned with cross-functional responsibility for sales, revenue and profit growth Budget & Staff General marketing budget without direct allocation for Customer Experience or Engagement; Staff is contracted or at the Coordinator level only Budget allocated; Defined point roles and responsibilities for Customer Experience or Engagement Budget with business case to justify spend; Dedicated marketing/sales roles for Customer Engagement Budget connected to customer satisfaction goals; Organization aligned for maximum impact of Customer Engagement Metrics No formal measurements in place Analytics to monitor and track sales success, such as % of Quota Achieved, Renewal Rate, Revenue Opportunity Metrics, Cost per Lead (CPL), etc. Dashboard tracks relevant customer care, demand generation, communication and sales metrics; Metrics include # Marketing Qualified Leads (MQLs), Avg. Resolution Time, % Escalations to Tier 2 Customer Support Enterprise-wide dashboard with visual representation of user acquisition and engagement by behavior, experience, etc.; Metrics may include Customer Satisfaction Index (CSI), Customer Lifetime Value (CLV), Net Promoter Score (NPS), etc. Metrics Source: Demand Metric Research Corporation
  • 36. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Member Success Role Source: Demand Metric Research Corporation
  • 37. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Engagement Strategies & Metrics
  • 38. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Engagement Strategy: Communities Engagement engines! “Websites & private social networks that enable members to interact in a controlled setting, created and maintained by an association to foster communication among peers or like-minded individuals.”
  • 39. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Branded, Online Community Benefits 158 186 201 224 319 367 371 374 0 50 100 150 200 250 300 350 400 Greater revenue attributable to referrals Lower cost support channel New ideas for products & services Validation of new ideas for marketing content Improved customer support quality Better customer perception of the brand A more loyal customer base Better understanding of customer/prospect needs Source: Demand Metric Research Corporation
  • 40. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Branded, Online Community Adoption 63% 34% 3% 0% 10% 20% 30% 40% 50% 60% 70% Yes No I don't know 36% Source: Demand Metric Research Corporation
  • 41. 17% 48% 10% 25% 0% 10% 20% 30% 40% 50% 60% No metrics Basic metrics Intermediate metrics Advanced metrics Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Community Success Metrics Source: Demand Metric Research Corporation
  • 42. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Content Marketing Problems 4% 10% 20% 22% 26% 27% 29% 29% 29% 35% 40% 58% 0% 10% 20% 30% 40% 50% 60% 70% None of these challenges exist for us Other problems Content quality is poor Content breadth too narrow or broad Content depth too deep or not deep enough Prospects won't surrender contact info Content formats are boring or uninspiring Content isn't generating interest or attention Long-form content too hard to absorb Free content isn't generating leads well Content quantity is insufficient Content doesn't create engagement…
  • 43. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Content Problems
  • 44. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Interactive Content Types 1% 7% 7% 9% 10% 12% 14% 15% 20% 20% 24% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Interactive LookBooks Games Other types Wizards Configurators Quizzes Interactive white papers Interactive eBooks Contests Calculators Assessments None
  • 45. 17% 48% 10% 14% 11% 0% 10% 20% 30% 40% 50% 60% No measurements Basic measurements Measures of interest Measures of influence Measures of engagement Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Content Effectiveness Measures
  • 46.  Customer (Member) Lifetime Value (CLV)  Customer (Member) Lifespan/Cycle  Customer (Member) Retention Rate  Customer (Member) Touchpoints  Activity/Usage time or duration  Visit frequency  Core actions taken  Advocacy Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Key Engagement Metrics
  • 47. Q & A Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.
  • 48. For more information, visit us at: www.demandmetric.com Demand Metric Research Corporation 562 Wellington Street, London, ON CANADA, N6A 3R5 Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.
  • 49. Demand Metric Research Corporation Copyright © 2013. All Rights Reserved.

Hinweis der Redaktion

  1. Thank you for joining us today for a discussion on Measuring Customer Engagement. Yesterday many of us were asking the question, “How can we improve the experience our customer has with our company, brand, product or service?”   Today, the question should be: “How well is customer engaging with us?” Not how can we “engage the customer,” but how well are they engaging with us?”   The answer to that question is at the core of Customer Engagement – from the perspective and willingness of the buyer. It is not just to do business with us, but to embrace us, run toward us, stay with us even when lower prices and “better” options come calling. I’m grateful that Cvent has sponsored this discussion because the implications of customer engagement are widespread and far-reaching. No marketer can risk not having his or her finger on the pulse of customer engagement. Questions - Recording
  2. I’m delighted to again have as my co-presenter Mike Phillips, director of feedback strategy at Cvent. Mike and I first teamed up to present on Employee Engagement in December of 2013, and where we are back again to discuss something equally important. Mike is currently the director of feedback strategy at Cvent, and has some impressive experience on his resume, including positions with LRA Worldwide, Comscore and KPMG. But my favorite position on your LinkedIn profile is “Lowly Serf” when he was at Equifax!
  3. Let’s look at a definition of customer engagement – you see it on the slide. We must understand that there is little to no spontaneous generation of customer engagement. In other words, it doesn’t just happen as a happy byproduct of ordinary business. Instead, it is the result of a strategy that puts in place a process and the related tools and technology for the purpose of attracting, engaging, retaining and influencing the behavior of customers. It’s also broad in scope, encompassing all the touch points a customer might have with our brands, throughout the lifetime of the relationship customers have with us.
  4. Let’s look at the evolution of customer engagement, because it has a rich past. Those of us who were around in the 80s will remember when Dr. Edward Deming’s ideas about quality finally made it back to this country from Japan, where those ideas revolutionized companies like Honda and Sony. At the center of Deming’s notions about quality was customer satisfaction – the importance of measuring it and improving it. As companies got better at understanding the satisfaction of their customers, they began to understand that satisfaction could be managed by providing better customer experiences. The kind of experience a customer had with a brand had (and still has) much to do with the level of satisfaction, so companies began to focus on creating better customer experiences. Today, we are learning that customer experiences aren’t the ultimate destination in this journey, and that customer engagement is the richest form of customer experience. When we can get customers engaged with our brands and people, we have far greater ability to influence their experience and their satisfaction. Customer engagement is a lever for producing the most loyal customers in the shortest possible time. That’s the digest form of the evolutionary story of customer engagement, so perhaps we had better define what it is!
  5. Demand Metric has developed a customer engagement framework that is an excellent resource for organizations that are looking to formalize or improve their customer engagement processes. This framework paints the picture of what customer engagement looks like, beginning with identifying: 8 different roles involved, from Senior management to the customer success group. Responsibilities ranging from setting budgets, customer advocacy, customer retention, communities, voice of the customer and customer satisfaction. Processes like customer journey mapping, persona development & use, lead generation & nurturing, product launches and others. Technology to drive the process that encompasses CRM, Marketing Automation, social media monitoring, chat, surveys, advocacy platforms and more. Content like thought leadership blogs, FAQs, tweets, webinars, sales playbooks, how-to guides, research, etc. And finally, metrics – things like CLV, NPS, cost of acquisition, conversion rates, market share, brand equity and other metrics needed to know if we have the kind of engagement that drives business results. Whether you’re deep into customer engagement or just starting out, this framework will help you make sense of all the moving parts associated with customer engagement.
  6. Another resource I’d like to talk about is the Demand Metric Customer Engagement Maturity Model which shows the progression or pathway an organization should take to mature in its use of Customer Engagement, from Undefined to World Class. We’ll go through this model briefly to see how customer engagement matures along this continuum in several areas, beginning with Orientation and concluding with Metrics. What I hope you’ll take away from reviewing this maturity model is an understanding of how you can use it to gauge where you are on this continuum, and more importantly, what you can do to move forward.
  7. The first component I want to review in our maturity model is Orientation. This is the posture the organization takes toward the discipline of Customer Engagement and its importance to the organization for marketing, sales and revenue generation. In all of the components we’ll review in this model, Stage 1 is not only undefined, but in many cases unaware. It doesn’t really matter if the reason for lack of customer engagement is ignorance or arrogance – in this stage, it’s not a blip on the radar screen. What drives the progression to the right on this continuum as much as anything is culture. The organization that embraces customer engagement has a customer or market-centric culture that pervades the organization. This is reflected in the increasing structure and formalization as we move to the right, particularly in the area of strategy: from uncoordinated, to defined to fully integrated across the enterprise.
  8. Culture is always a function of leadership. As we look at the leadership component, we see how the view of executive/senior management toward the role Customer Engagement plays in driving sales, revenue and profits and its inherent value to the company changes: from a backwater function that is just a small part of marketing’s responsibilities, to its primary focus around which there is inter-departmental alignment.
  9. The commitment to customer engagement is manifested in the resources given to the function, in this case, tools and platforms used to create, deploy, manage and measure Customer Engagement initiatives and campaigns. In the undefined stage, existing tools are used, often in “square peg in round hole” fashion to at least claim that something is going on around customer engagement. The progressive stage sees some actual tools and platforms establish a beachhead is specific areas such as personas, but not in coordination with sales or customer care functions. The world class goal state sees comprehensive systems in place that not only integrate all customer engagement functions, but also have integration with enterprise CRM, Marketing Automation and any ERP systems that are in place.
  10. The Customer Success component of this model is about how well the organization performs in this core attribute of Customer Engagement. The theme of the customer success component is really “random or accidental vs. planned”. The undefined stage features tactics with limited or no targeting that are not stimulators of dialogue. Very much a “me too” approach to in terms of tactics, and insensitivity to the customer journey. As firms progress toward world class, we see an increased sensitivity to the customer journey and deployment of branded, online communities, advocacy and loyalty programs and increasing personalization across all touch points and encounters customers have with a brand.
  11. Alignment is very simple to understand, but not so easy to achieve. Here are emphasize how well the organization is aligned for Customer Success through the integration of the key areas of marketing, sales and customer care. We all know what silos are, and the odds are against any organization that is experiencing this structure of moving to any of the later three stages of maturity. Moving toward higher levels of maturity means a true cross-functional effort, characterized by shared goals, measures, systems and integration. World class maturity in this area is a true, symbiotic relationship between sales, marketing and customer care.
  12. It’s true of any business process that if it is important, it will have funding and resources. When it comes to customer engagement, in the undefined stage there is no formal support for it. Anything that might be occurring under the guise of customer engagement is informal, unfunded, extracurricular, and often unsanctioned and in stealth mode. When budget and staff are committed to the effort, we see a ripple effect in all the areas we’ve already discussed. As organizations mature, there is a some commitment of resources, then a business case and in the world class stage, a line item in the budget with staff allocated to customer engagement.
  13. Metrics are, in my opinion, the most critical component of this maturity model. You can do everything right on each of the previous 6 components we have discussed, but if you miss this one, you’re not going to have success. Without embracing the right metrics, an organization has no hope of moving out of the undefined stage. As you move into the Progressive stage, you start to see some metrics in use, and many of these are available out of existing CRM and marketing automation systems. You have to have the discipline to use the data that is available in these systems, and then do something based on what the data is telling you. In the Mature stage, we see continued evolution in terms of the metrics and what they are telling us. We’re looking beyond just sales metrics to other touch points in the organization, taking measurements there, establishing benchmarks and working on improvement. As we get to World Class in this maturity model, we’re using metrics that we must use to have impact with customer engagement. We’re measuring customer satisfaction, we know customer lifetime value, we are using Net Promoter Score and others to develop a complete picture of customer engagement levels, and the effectiveness of our efforts. At the World Class level, we’re using survey tools and measurement tactics that fall outside our CRM and Marketing Automation systems. And, we’ve turned the collection of this data and its analysis into a process that is ongoing. It’s not a one-time activity that we do periodically, but something that is taking place all the time.
  14. Now let’s zoom in on the Customer Success role, because that is the front line in organizations that are doing customer engagement well. This diagram gives us the “big picture” of the customer success role. At the top left, the Process section, we have a focus on customer experience and onboarding. Key sub-processes include customer journey mapping and the creation of customer personas. If you’re not familiar with either of these sub-processes, Demand Metric has resources to help you learn what these are and how to get them done. The top right slice of this customer success pie is about technology and specifically, some key platforms that enable customer success via engagement. These include personalization, online communities, and advocacy & loyalty platforms. We’ve just completed a study on branded, online communities, and if you’re uncertain about the value or benefits of having one, I encourage you to look for this study report on the Demand Metric website – it will help you develop the business case for having one. In the lower right of this diagram, we have content. You’ve seen in the “Processes” pie slice that we have already listed the development of the customer journey map and customer persona. Now, what we’re seeing here is the expression of the result of those activities in form of content that influences the way the organization engages with customers. Furthermore, we also see the customer success role helping make sure that the learning that is occurring about customers through the journey map and personas is making its way into things that directly influence customers, like proposals and presentations. In short, we’re making the right kind of content pervasive. Finally, in the lower left of this diagram we have the Metrics pie slice. As I just discussed, there are many metrics you can and should track around customer engagement. To be world class, you have to make sure the voice of the customer is heard and is impacting how the organization functions. Three of the key metrics for customer engagement are Customer Lifetime Value, Net Promoter Score and Customer Satisfaction.
  15. I’ve just provided a “big picture” view of customer engagement. It’s helpful to know what it should look like, but it’s not really enough, is it? We need some practical steps to take on this customer engagement journey, and Mike is going to give us some.