jerry rackley- measuring customer engagement

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



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?


…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


Customer Satisfaction Customer Experience Customer Engagement


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.


The Analytics Process

“Marketing is fluff – an

expense we can’t afford.”

“Marketing is critical to our

success – we can’t live without it!”


Why Analytics are Important


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


How Marketing is Perceived Internally


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.


Marketing Analytics:

1. Three marketing organizations.

2. Each has a different attitude toward analytics.

3. Attitude determines altitude.


An Analytics Tale


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.


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.


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


Getting Started with Analytics


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


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.


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


Review Objectives


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


Selecting Metrics

Caution:

“…not everything that can be counted counts, and not everything

that counts can be counted.”

William Bruce CameronInformal 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


Association Marketing Metrics


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.


Selecting Metrics

Engagement Framework


Customer Engagement Framework




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

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

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

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,


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


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.




Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.

Customer Engagement Maturity Model Orientation



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.

Customer Engagement Maturity Model Leadership



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.

Customer Engagement Maturity Model Tools & Platform



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.

Customer Engagement Maturity Model Customer Success



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Alignment



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Budget & Staff



Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Customer

Engagement

Stage 1:

Undefined

Stage 2:

Progressive

Stage 3:

Mature

Stage 4:

World-Class



Engagement



customer journey



ad hoc


processes exist for

Customer Engagement


Touch points are

coordinated across


expectations

Defined, integrated







engagement

Leadership

Sees Customer


part of traditional


Views Customer






Views Customer

Engagement as the






Views Customer

Engagement as the



around Customer


revenue impact

Tools &

Platforms






tools/applications









Care exists






Maintain 360-degree



targeting


end-to-end system


Engagement related




ERP systems

Customer

Success






One-way dialog from









and reduce churn

Aligns programs and



Engagement to drive




& loyalty programs



experience and



customer care touch


campaigns


operate in silos


and Customer Care




exist yet

Cross-functional

integration across



fully aligned






Budget &

Staff








point roles and



Engagement




Customer Engagement

Budget connected to


goals; Organization

aligned for maximum

impact of Customer

Engagement


in place











include # Marketing




Customer Support










(NPS), etc.


Metrics



Member Success Role



Engagement Strategies & Metrics


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.”


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



Branded, Online Community Adoption

63%

34%

3%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No I don't know

36%


17%

48%

10%

25%

0%

10%

20%

30%

40%

50%

60%

No metrics Basic metrics Intermediate metrics Advanced metrics


Community Success Metrics



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…


Content Problems


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


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


Key Engagement Metrics

Q & A


For more information, visit us at:

www.demandmetric.com

Demand Metric Research Corporation562 Wellington Street, London, ON CANADA, N6A 3R5


jerry rackley- measuring customer engagement

Marketing

customer member engagement

core of customer engagement

pulse of customer engagement

employee engagement

demand metric since2011im

director of feedback

members relationship

behavior of members