Begin with the end in mind. That is one of the key principles of designing an integrated marketing campaign that gets impact. We're starting the day with talking about the point of all of it and the "why" before we dive into all the "hows". This session will cover common metrics and how to think about and understand your organization's position from a digital maturity model framework.
This session will provide practical tools that you can implement now so that you can get past simply measuring open and click through rates. We're aiming to cut through the excuses for why you don't take the time to measure by putting measurement up front and center and focusing on the idea that if you're not going to measure it and the measurement isn't going to provide you additional insight into your target users, then it's not worth doing!
You heard it here first--get off the hamster wheel of just doing digital and design a program that makes your organization increasingly smarter so that you can consider yourself a marketing center of excellence.
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
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!
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.
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!
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.