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Orchestrating the Technologies and Processes of the Customer Engagement Cycle

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Michael Moon

This executive white paper outlines a strategic roadmap for integrating technologies and processes in the customer engagement cycle, emphasizing the importance of collaboration between traditional and online marketing. It discusses key technologies such as multichannel analytics, analysis-driven messaging, and innovative customer engagement practices aimed at enhancing sales and customer loyalty. Through insights from industry leaders, the paper serves as a resource for decision-making in adopting new technologies and disruptive innovations.

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............ ........... ...... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Executive White Paper Orchestrating the Technologies and Processes of the Customer Engagement Cycle Strategic roadmap for integrating traditional and online marketing and customer service with multichannel analytics, multimodal content, and analysis-driven email messaging Featured technologies of the Engagement Cycle • Customer engagement theaters: Integration of online marketing with database marketing, email messaging platforms, social media, and field- marketing systems • Multichannel analytics: Convergence of web, database, and social media analytics • Analysis-driven messaging: Applying database analytics, segmentation insights, and individual- ization profiles to personalize email messaging • Creative messaging and collaboration plat- forms: Strategic role of engagement agencies, dialog maps, and multichannel / multi-party creative briefs • Social Web content management: Integration of social tagging and user-generated content with marketing content and personalization services • Marketing operations management: Collab- orative workflows, project management, and marketing process orchestration ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Who helped produce this white paper? Who is GISTICS? Orchestrating the Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... AUTHOR THINK TANK FOR EARLY-STAGE MARKETS Michael Moon President, CEO GISTICS constitutes a think tank that speeds the GISTICS drives the emergence of shared vocabularies, GISTICS Incorporated adoption of new technology and disruptive innovations the adoption of effective problem-determination methods, moon@gistics.com among enterprises and consumers. Founded in 1987, and the development of unassailable investment analyses GISTICS Incorporated minimizes the risk of potential that justify purchases of new technologies or disruptive DESIGN, LAYOUT, EDITING, buyers through the following: innovations. PRODUCTION • Interviews with successful early adopters of new GISTICS attracts early adopters and pace setting LIANNE MUELLER technologies solutioneers, demonstrating how they can use new Art Director • Definition of the critical success patterns of technologies or disruptive innovations to make money by Fly Design Media successful early adopters lianne@flydesignmedia.com delivering new complex, integrated solutions to enterprise • Activity-based analyses of adoption benefits on or consumer clients. iris alroy supply chains, workflows, and user activities GISTICS develops breakthrough market-making Production Artist GISTICS Incorporated • Visual explanations of how new technologies strategies for vendors of new technologies or disruptive research@gistics.com produce economic value innovations, using industry thought leadership, executive • Investment analyses that justify the purchase of white papers, Webcasts, specialized Web sites, and a Kathleen McFadden kmcfadden@writetools.com new technical systems global trust network of advanced project managers within • Project roadmaps that break down large-scale large enterprises, independent consultants, and small organizational changes into smaller two-week to master-class solution providers. two-month projects • Practitioner portals that clarify the next steps in rapid deployment and payback • Certified consultants that provide essential skills and resources G is t ics h e l ps e n d - u se fi r ms h a r n ess n ew t ec h n o l o gies a n d dis r u p t ive i n n o va t i o n s MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models V a l u e - C r e a t i o n P r o c e s s Offer—market Demand Sales Satisfaction Strategic development creation conversion fulfillment development gist ’jist n -s [AF, it lies (said of a legal action), fr. MF, 3d pers. sing. pres. indic. of gesir to lie, fr. L jacére to lie, fr. jacere Concept Market Primary Market Aftermarket to throw — more at jet (to spout)] 1: the ground or foundation of a legal action without which it would not be sustain- able 2: the main point or material part (as of a question or debate) : the pith of a matter : essence (the ~ of a question) Market-making Scenarios <the ~ of all that can be said upon the matter—R. L. Stevenson> T1 Market-making scenario 1 —Webster’s Third New International Dictionary Unabridged C o l l a b o r a t i v e S o l u t i o n e e r i n g GISTICS Incorporated 4171 Piedmont Avenue, Suite 210 T2 Market-making scenario 2 Cycle time gain Oakland CA 94611 USA www.gistics.com Necessary Conditions Strategic Value +1.510.450.9999 tel +1.510.450.0954 fax • Rationalized market and definitive • Leadership positioning in the market business case • Advantaged category definitions ©2009 GISTICS Incorporated. All rights • Differentiated value propositions • Growing perception as the dominant reserved. Printed in the U.S.A. • Completed satisfaction-fulfillment “gorilla” methodologies • New “green field” markets and GISTICS and its agents have used their best efforts in collecting and prepar- • Testimonials of early adopters revenue streams ing information published in this white • Network of certified consulting • Loyalty lock-ins of category-defining paper Orchestrating the Technologies and solutioneers marquee accounts Processes of the Customer Engagement • Thought-leadership Web destination Cycle. GISTICS does not assume, and hereby dis- MarketMakingScenarios.A.1.4 © 2007 GISTICS All rights reserved. claims, any liability for any loss or dam- age caused by errors and omissions in GISTICS reduces the organizational and market barriers to the adoption of new technologies or disruptive innovations, this white paper, whether such errors or publishing a variety of papers, presentations, and Web sites that explain how to realize the economic and social value of new such omissions resulted from negligence, accident, or other causes. technologies or disruptive innovations in a variety of organizations. .................................................................................................................................................................................................................................................................................................................................................................................................................................................. ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 2 GISTICS executive white paper
Orchestrating the Technologies and Processes of the Customer Engagement Cycle Strategic roadmap for integrating traditional and online marketing and customer service with multichannel analytics, multimodal content, and analysis-driven email messaging PAGE CONTENTS//SECTIONS 4 Who helped produce this white paper? 5 Innovation and Investment in Marketing 11 Customer Engagement Defined 21 Operational Capabilities of Customer Engagement 39 Customer Engagement Partners and Practices 49 Innovation Leadership 55 About GISTICS ABSTRACT This executive white paper demonstrates how game-changing innovators orchestrate technologies and processes of the customer engagement cycle to increase sales, levels of customer loyalty and account retention, and share of wallet in selected consumption cohorts. Unlike most white papers, this executive white paper visually depicts the essential concepts and technologies for the non-technical executive and operation manager, presenting a collaborative framework for discussion, argument, and investment decision-making.
Orchestrating the Who helped produce this white paper? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS acknowledges the following individuals and their organizations for help making this paper possible. EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved In most cases, Michael Moon of GISTICS conducted a one-hour interview. STRATEGIC MARKETING Anand Narayanan, Director, TCS AMERICA Anssi Vanjoki, CMO, NOKIA (Finland) John Dubrawski, Business Development, TCS AMERICA Frans Cornelius, CMO, RANDSTAD HOLDING (NL) Gunar Pinikus, Product Manager, ADOBE Jason McNamara, CEO, ST. CROIX IP Jim Cuff, VP, IRON MOUNTAIN Jeff Martin, CEO, TRIBAL BRANDS Robert Yamashita, Principal, COGENTIC Terry White, Chief Innovation Officer, AMWAY (Japan) Shah Karim, CEO, INTEGRATED SOFTWARE Viveka Leskell, VP, New Media, FORTUM (Sweden) Scott Pellicone, VP, Business, QUEBECOR Vincent di Paolo, CEO, MOKSA ENGAGEMENT CYCLE DEFINITION Bob Barker, VP, Corporate Marketing, ALTERIAN TECHNOLOGIES OF THE ENGAGEMENT CYCLE: Michael Fisher, VP, North American Operations, ALTERIAN MULTI-CHANNEL ANALYTICS Mike Talbot, CTO, ALTERIAN Andrew Gregory, Director, ONSTREAM MEDIA Bob Kennedy, Sales Director, TEALEAF TECHNOLOGIES CUSTOMER ENGAGEMENT Trae Clevenger, VP, Analytics, TARGETBASE Matthew Eccles, Consultant Mike Beckerle, CTO, OCO SYSTEMS Sharad Verma, Managing Director, DIGITAL CEMENT John Hingley, CEO, ANDIAMO SYSTEMS MARKETING OPERATIONS MESSAGING EXECUTION AND PROVISIONING Beth Wiesner and Shawn Mielke, Partners, MTS Bob Hale, VP, Product Management, ALTERIAN BJ Gray, MRM Specialist, VICTORIA’s SECRET Joe Stanhope, VP, Product Management, ALTERIAN Gary Katz, CEO, MARKETING OPERATIONS PARTNERS Laura Patterson, VISION EDGE CONSULTING Multimodal WEB CONTENT MANAGEMENT Mary Yurkovic, DAM Manager, PLAYBOY ENTERPRISES Ian Truscott, VP, WCM, ALTERIAN Subhankar Bhattacharya, Principal, HCL (India) Bob Nuelle, Director, Technical Services, ONSTREAM Jon Fox, CEO, GROUP SMARTS SALES OPERATIONS Charlie Caldwell, CEO, NEXT QUARTER PROCESS ORCHESTRATION Bruce Froelich, CEO, INFORMETRON Bailey Caldwell, VP, PAXONIX Inna Proshkina, VP, INVISIBLE CRM Gary Brooks, Director, ALTERIAN Robert Markham, Chief Strategy Office, nTARA Eric Hoffert, CEO, SHAREMETHODS Neil Owen, COO, nTARA Ismael Ghalimi, CEO, INTALIO Jeff Morris, CTO, nTARA Edward Sulivan, CEO, ARIA SYSTEMS Mike Beckerle, CTO, OCO SYSTEMS ORGANIZATIONAL TRANSFORMATION Raju Vegesba, Evangelist, ZOHO Dennis Pannuto, CEO, AHA! INSIGHT TECHNOLOGIES Frank van Olst, Practice Lead, NYKAMP-NYBOER (NL) SOCIAL MARKETING Gary Hare, Dean, School of Media Psychology, FIELDING INSTITUTE Igor Beuker, CEO, SOCIALMEDIA8 Hanna-Maija Nyberg, Practice Lead, TALENT PARTNERS Rudy Thurston, COO, OMNIFUSE Skiff Wager, CEO, SEW CONSULTING Daniel Coffeen, CEO, ART AND CULTURE Tom Marine, Director, CENTRAL RESTAURANTS Henry Hon, CEO, VYEW Mat Atkinson, CEO, PROOFHQ GLOBAL MARKETING SUPPLY-CHAIn MANAGEMENT Bob Goldstein, CEO, APEER Alexandre Hadade, Partner, ARIZONA (Brazil) Sri Chilukuri, CEO, CONTENT CIRCLES Allan Linden, GLOBAL MARKETING CONSULTANT Julia Grinham, VP, Marketing, COGENZ (UK) Nic Lund, Programme Manager, DIAGEO (UK) Geert Wirtjes, CEO, GYPE LTD (NL) DIGITAL ASSET MANAGEMENT Jan Jacob Koomen, Director, ADNOVATE (NL) Aaron Holm, CTO, INDUSTRIAL COLOR Kevin Freedman, MD, FREEDMAN INTERNATIONAL (UK) Allan Adler, VP, UBISOFT Matthew Gonnering, VP, Marketing, WIDEN ENTERPRISES Bill Sheeran, CTO, CLEARSTORY Rens Pel, VP, Marketing Operations, PHILIPS(NL) Chris Glynne, CEO, BOLD VISIONS David Diamond, Director, Publications, CANTO CONTENT SUPPLY-CHAIN MANAGEMENT James Kober, VP, Advertising Operations, NEWSDAY Abby de Millo, Sr. Dir. Content Management Technology, Linda Berman, CEO, LJ BERMAN ASSOCIATES MCGRAW-HILL BUSINESS INFORMATION GROUP Russ Littleson, MEDIA EQUATION (AU) Andrew Salop, CEO, METASEED.net Rick McManus, Director, NINTENDO AMERICA Bill Rosenblatt, CEO, GIANT STEPS Ron Malloy, VP, General Manager, KODAK Carl Hixon, VP, DAM, MCGRAW-HILL EDUCATION Sam Moore, Director, N-GEN STUDIOS David Bercovici, VP, HATCHETTE BOOK GROUP Seth Earley, CEO, EARLY ASSOCIATES Doug Liles, SGS INTERNATIONAL Steve Sauder, CTO, NORTH PLAINS Sandeep Malhotra, Principal, Vertical Solutions, HCL (India) Theresa Regli, Principal, CMS WATCH Edward Altman, Practice Director, HCL (US) Sherra Pierre-March, CEO, VISION INFORMATION TECHNOLOGY Shrikant Pathak, Practice Director, TCS MUMBAI ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 4 GISTICS executive white paper
5 In novat ion and Inv es t m ent in Marke t i n g What must guide all investments in new marketing technologies? How can new technologies provide competitive advantage, if not What single event within a marketing operation creates its most What operational strategies do many CMOs pursue to maximize GISTICS ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... What types of innovation create value? transparent demonstration of value? competitive advantages? market disruption? PAGE 6 7 8 9 10 ................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION I ................... SERIES//MANAGEMENT ADVISORY
Orchestrating the What must guide all investments in new marketing Technologies and Processes of the technologies? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Customer Benefit The Web no longer comprises just another sales channel; EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved the application of channel strategy to the Web’s business In the now infamous remarks by Peter Drucker, “The ecosystem will annoy and disaffiliate the very firms that firm has no other purpose than to earn and keep the trust might otherwise contribute to the success of the firm with of customers; only two things add value: innovation and an effective business ecosystem strategy. marketing. All else is cost.” Of the many things associated with the digital revolution Satisfaction within Social Networks and now the social Web, one significant effect has begun to rock both large and small firms: a new class of customers Customers buy desired satisfactions that they expect from a now insists upon interacting with vendors via PC, mobile particular product or service. devices, kiosks, and other online systems. Time to satisfaction defines the key metric for the In turn, interactive self-service buyers and customers quality of innovation and effectiveness of marketing. demand that their preferred vendors, marketing operations Time to satisfaction constitutes the primary in particular, provision online services and self-service measurement of customer engagement. This enables applications. marketing and engagement planners to work backwards, This means that marketing and innovation—the two asking the question, “What can we do to reduce or eliminate value drivers identified by Drucker—have begun to merge, the forces hindering the satisfaction of ideal customers?” becoming indistinguishable and essentially fused into an Clearly, a valued innovation must satisfy customers. alloy of self-service customer satisfaction. However, today the social network of friends and colleagues The figure below depicts several implications of these of the customer plays a large and growing role in the remarks by Peter Drucker and their logical extensions. experience or perception of satisfaction among customers. Marketing and engagement planners must expand Innovation within Business Ecosystems their messaging to address the social networks that now Innovation represents an invention or new way of doing filter, process, and reinterpret brand offerings and value things that adds distinctive value to the customer’s propositions. experience. In practical terms, this means that marketing and Time to market defines the key metric for innovation; engagement planners must connect, inform, entertain, and getting more quickly to market with what customers enable sharing within small peer groups and social cliques, recognize and want creates more value for the vendor: sales. using multiple formats (print, broadcast, online), sensory However, something has changed. modalities (audio, visual, kinesthetic), and persuasion Today, time-to-market success reflects how well the firm strategies (data, story, demonstration, word of mouth, accesses the global resources of its business ecosystem: authoritative endorsement). individuals, internal groups, and other firms that add value As customer engagement addresses the social networks to innovation and to the marketing operations of a firm. affecting customer choice, marketing processes grow more complex and difficult to orchestrate without new operational capabilities that automation can provide. c o n s u me r b e n efi t s h o u l d d r ive a l l i n ves t me n t s i n n ew ma r k e t i n g t ec h n o l o g y Social Networks Time to Market Time to Satisfaction TTVMarketSatisfaction.1.0 © 2009 GISTICS All rights reserved. Business Ecosystem All new investments in marketing should benefit the consumer. Time to satisfaction with certainty and trust define the baseline of customer benefit. Little else matters in the eyes of the consumer. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 6 GISTICS executive white paper
Orchestrating the What single event within a marketing operation creates its Technologies and Processes of the most transparent demonstration of value? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ECONOMIC EFFECT OF FASTER CYCLE TIME SHORTER PRODUCT LIFECYCLES LIMIT PROFITS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Most firms drive innovation to market, offering new The pace of innovation continues to accelerate across all products, formulations, and packaging, or new services, technical realms, giving large and small firms worldwide a enhancements, or configurations. In all but a few cases, real opportunity to develop new breakthrough products or these firms drive marketing communications to market by services and drive them to market. • Publishing printed ads, marketing collateral, and This quite simply means that competition will continue promotional materials to expand and intensify without a foreseeable end in sight. • Broadcasting electronic ad spots and infomercials The figure below depicts how faster time to market of • Provisioning digital content and interactive engagement new products or services can produce incremental profit and services to stationary PCs, mobile devices, and digital revenues, as well as reduce total development costs with kiosks or point-of-purchase displays the desirable result of capturing lost margin or profits. For more about how firms can use automation to speed As once noted by Peter Drucker, the expert on up their innovation processes, GISTICS offers the white management and business, “Only two things add value: paper entitled, The Impact of Enterprise Collaboration on innovation and marketing. All else is cost.” Productivity of Intangible Assets. To find the white paper, This rather pithy and sage remark calls attention to what visit www.gistics.com. aspects of innovation and marketing create value, as well as The figure below also depicts how faster time to market how firms can use automation to maximize those aspects of marketing communications helps maximize the value of that deliver the greatest value. bringing new products or services to potential customers. Simply put, most firms that sell products can maximize In the case of consumer electronics, durables, their profits by achieving two, often offsetting, goals: motorcycles, and other products with annual model • Sell goods or services with adequate, if not superior, releases, as well as packaged software with regular version profit margins, and updates, the number of product-selling days averages 240. • Sell higher unit volumes of these goods or services Any reduction in time to market of marketing collateral to Profit margins reflect selling the right mix of products retailers and dealers essentially creates additional selling or services at prices that buyers will pay. Seasonal factors, days. the comparative value of one firm’s offering to another’s In one instance uncovered by GISTICS, improved offering, and other factors will affect price sensitivity—what workflows of a marketing operation in a global consumer customers will pay. electronics firm reduced time to market of collateral by two Another dimension of cycle time economics relates weeks, producing a three percent sales increase—tens of to velocity or how much annual revenue a firm can earn millions of euros! for each dollar or euro it has invested in its assets and Key points: Faster cycle times increase revenues and operations—factories and people, respectively. competitiveness; speeding cycle times entails process Combined, margin and velocity become the most automation. important measurement to a M A J OR L A UN C H E S E X P O S E M A RK E T I N G TO C O M P A NY W I D E S C RUN I TY firm: return on investment—how $600,000 we measure the Incremental Profit from Faster Time to Market effectiveness of automation and EXPENSE AND MARGIN best practices. CycleTimePaysOff.1.8c ©2009 GISTICS Incorporated, All rights reserved. Lost Margin from Delayed Launch $300,000 Many things can Incremental Revenues Realized Margin contribute to a delayed from Faster launch. Inefficient process Launches workflows (especially for $0 reviews and approvals), as well as poor internal Additional Development Cost from Delay and external collaboration among creative partners and suppliers, often ($100,000) induce otherwise avoidable delays. 0 6 12 18 24 30 MONTHS ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 7
Orchestrating the How can new technologies provide competitive advantage, Technologies and Processes of the if not market disruption? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved COMPETITVE ADVANTAGE MARKET DISRUPTION While the fundamentals of business remain unchanged Rapid, successive delivery of small, incremental innovations (finding and serving customers), the mode of doing business can add up to real competitive advantages and game- must now undergo significant, if not radical, change. changing market disruptions. This change accommodates two new factors: the rapidly The nature of innovation (intangible, tactical, strategic, growing number of innovation resources of a global business and transformational) calls attention to the need for a ecosystem and the inherent intelligence and level of product new operational capability: how to deconstruct a market- knowledge of customers and members of global social disrupting initiative into a set of 15-day or 45-day projects networks. and execute those projects against a master project roadmap The firms that can source and integrate innovation of 50 to 100 short-term projects. resources of a global business ecosystem will increase their Thus, truly integrated marketing means provisioning a competitive advantage. growing array of customer self-service applications. The firms that integrate new operational capabilities This type of integrated marketing will require a technical with customers’ needs and their social markets will achieve platform for adopting new innovations—contributions of a unfair competitive advantage. global business ecosystem. The firms that can drive newly sourced innovation to Ecosystem-integrated marketing will require a robust customers in days or weeks will disrupt the competitive engagement strategy and a C-level execution with skills and equilibrium of established and well-defended markets. temperament for orchestrating time-to-market and time-to- Mobilization of social networks drives market disruption. satisfaction cycle times of game-changing innovations. The figure to the right depicts three more important dimensions of innovation and marketing. Not all innovations represent the same amount of value. Some innovations may not create any discernible value in the eyes of customers, yet may support other highly valued innovations. Still yet other innovations, T I M E TO V A LU E O F I NNO V A T I ON A N D M A RK E T I N G S U S T A I Ns especially if marketed well, C O M P E T I T I V E A D V A NT A G E will become “game changers,” creating significant competitive FASTER advantages: customer demand. In rarer cases, well-marketed Market Days innovations cause market disruptions, forcing competitors to react with profit-destroying 15-Day Projects Disruption discounts or exit the market altogether. | Master Weeks Project Roadmap TIME TO VALUE MarketDisruptTimetoValue.A.1.6 © 2009 GISTICS All rights reserved. Competitive | Advantage 45-Day Mo nth s Projects | Year s Integrated marketing now requires leadership and systems for driving several SLOWER concurrent 15-day or 45-day projects, creating a cascade of tactical value-added capabilities that coalesce into strategic or transformation value and game-changing Intangible | Tactical | Strategic | Transformational market disruptions. LESSER VALUE GREATER ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 8 GISTICS executive white paper
Orchestrating the What operational strategies do many CMOs pursue to Technologies and Processes of the maximize competitive advantages? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARSHALING AVAILABLE RESOURCES Marketing’s operational capabilities enable the firm to EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved create and sustain competitive advantages in its selected Strategy constitutes a mechanism for directing available markets. This includes the creation of the following: resources to achieve maximum competitive strategy. • New markets and revenue streams Most chief marketing officers (CMOs) know that this mechanism comprises systems, processes, and • New customers of existing and new offerings accountabilities for directing the resources of a complex • Larger and more frequent orders from customers marketing operation. • Greater loyalty and acceptance of system lock-ins The figure below depicts key dimensions of strategy, • Higher barriers to market entry emphasizing how CMOs formulate strategy for an integrated Each business will emphasize one or more of these system where each element interacts and affects all other competitive advantages over others, reflecting economic elements of the system. conditions, corporate life cycles, etc. Brand integrity defines an operational capability of a One fact, however, remains constant: the demand to marketing operation: how marketing staff and partners change with little or no forewarning. create and execute marcom with clear brand values, This calls attention to two more critical capabilities: consistent expressions, and credible messages. Brand business agility and organizational change management. integrity succeeds when customers and other stakeholders Business agility describes the ability to reconfigure develop deep, resonant emotional connections with the processes and workflows within day or less. This brand and the brand’s community of users and advocates. capability requires an on-demand IT service management Strategic differentiation entails the translation of infrastructure and the technical capability to rapidly customer insights and buying criteria to marcom, integrate new services to the all important brand theaters eliciting desire for the offered product or service. Strategic of the firm. For many marketing operations, this means differentiation succeeds by achieving leadership in its securing needed application software “as a service.” market. Organizational change management describes the Market coverage describes the delivery of promotions and systems, processes, and accountabilities for facilitating marcom to all the key touchpoints with customers and trade the rapid deployment of new systems, processes, and partners, integrating digital online channels, traditional print accountabilities. In many respects, organizational change and broadcast channels with point of purchase promotions management will determine medium to long-term success and packaging. Market coverage succeeds with the in volatile markets punctuated by all manner of disruptive convergence of all marcom at points of purchase, creating an innovations and economic discontinuities. “echo effect” in the market. Marcom supply-chain orchestration describes the increasing levels of O P E R A T I ON A L E X C E LL E N C E TH A T UNLO C K S TH E V A LU E O F S TR A T E G Y process integration among industry partners, emphasizing more agile sourcing and procurement of creative service, marketing content, and CMOs production. Marcom supply-chain orchestration succeeds by producing USE SYSTEMS, PROCESSES, AND ACCOUNTABILITIES TO MARSHAL THESE RESOURCES OF A MARKETING OPERATION productivity dividends: new money for strategic spendings. BRAND STRATEGIC MARKET MARCOM DIGITAL BRAND INTEGRITY DIFFERENTIATION COVERAGE SUPPLY-CHAIN INTERACTION Digital brand interaction describes ORCHESTRATION the newest operational capability, • Brand-value clarity • Deep customer insights • Present at key buyer • End-to-end process and • Digital content and Web provisioning contextualized content • Brand-expression • Buyer’s recognition of a touchpoints workflow integration services management consistency desire or need • Online and offline • Strategic sourcing of system and interactive services to customers. • Leadership in market media integration with creative and production • Comprehensive multi- • Brand-message Successfully executed, this produces credibility category points of purchase • Consolidated item-detail modal search and • Synergies of multi-party, reporting of: metadata schema self-service satisfaction. -channel and -media: - Efficiency • On-demand digital ser- “echo effects” and viral - Effectiveness vices for self-directed word-of-mouth SUSTAINABLE COMPETITIVE ADVAN- - Business impact customers TAGES AND PRODUCE THESE EXTERNAL PERFORMANCE RESULTS Innovation and marketing create Emotional “Wow” and Commanding Greater Portion of Self-Serve value. Operational capabilities enable Connection Visceral Delight Position in Market Strategic Spending Satisfaction a firm to create innovation, drive new offerings to market, facilitate THUS ACHIEVING THESE SUSTAINABLE COMPETITIVE ADVANTAGES the buying and using process, and New markets New customers for Larger and more maintain infrastructure and systems and revenue existing and frequent orders Greater loyalty Barriers to enabling core operational capabilities. lock-ins Market streams new offerings from customers CMOMandates.B.2.9c ©2009 GISTICS. All rights reserved Most CMOs emphasize the development and optimization of operational capabilities of their marketing operation one of their foremost priorities. Accountability for driving innovation and change within their groups often represents the weakest link in achieving operational excellence. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 9
Orchestrating the What types of innovation create value? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... FOUR TYPES OF INNOVATION INNOVATIONS FOR CUSTOMER ENGAGEMENT EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Strategic innovation brought to market increases the value Effective partnerships with customers will require numerous of the firm—share price—and its overall share of market innovations. In this paper, we introduce several innovations, capitalization within its sector. including Tactical innovation merely reduces costs or increases • Customer engagement cycle that defines the basic sales already in the pipeline. operational framework for marketing and an integration Thus, innovations vary a great deal, bringing greater or framework for new technology less value to their organizations or customers. • Voice-of-customer content analytics that summarize The figure below depicts the four basic categories of levels of engagement and shifts in sentiment among strategic innovation: various customer segments • Business model innovations bring new satisfactions to • Centers of excellence in the marketing supply chain: viral market or give the innovating firm new ways to capture video agencies, user-generated video and communication value. Typically, these innovators disrupt underserved operations, and customer portfolio management firms markets by leveraging new technology. • Content customerization that depicts the fusion of a • Product innovations tend to grow existing markets, using customer database master, engagement preferenda of an industrial design and brilliant packaging to create highly individual customer or consumption cohort, offering-mix differentiated offerings. When coupled with a business optimization of the particular products and services to model innovation, product innovation creates a wealth- present next to the engaged customer, and consumption creating synergy such as the iPod and iPhone. criteria for a return on investment (RIO) or a returned • Process innovations optimize known systems and investment of time (RIOT) procedural workflows, reducing waste, cost, and time, • Customer engagement object that enables the predictive using management process-control frameworks such as modeling of long-term customer value as well as the Lean Six Sigma, ITIL, and CoBIT. When coupled with long-term cost to serve, including the cost of creating and product innovation, process innovations deliver price provisioning content, services, and brand touchpoints leadership and substantial barriers to market entry by • Information maturities that correlate five levels of competitors. marketing information to six operational capabilities • Social innovations change some elements of how we of integrated marketing—monitor, listen, message, live, work, or play. In today’s world, many of these contextualize, execute, and govern. innovations entail the rapid development of next • Process maturity model for four critical subsystems practices where small, dedicated groups of people produce of the engagement cycle: multichannel analytics, and consume small chunks of information and content multimodal content management, provisioning and that become social goods later enjoyed by large groups of execution, and marketing process orchestration. users as best practices. Many companies now pursue S YN E R G Y O F I NNO V A T I ON S Y I E L D S TH E G R E A T E S T R E TURN S innovation strategies across two or more of these four innovation categories, placing new demands for more rapid, error- free innovation-deployment processes— Process Innovations Product Innovations how firms drive their innovations to market. • Dell • Blackberries In all cases, innovation entails change • Toyota • iPods and the need to manage the change wrought by innovation. • Wal-Mart • ThinkPads Besides product or software innovation, most firms do not have a structured, repeatable process—an operational capability—for innovating new services, processes, or business models. This deficiency calls for the emergence of a next practice that we call innovation leadership. Social Innovations Business Model • LinkedIn Innovations • Wikipedia • Amazon • YouTube • eBay Driving innovations of customer engagement to market will • Netflix demand a new operational capability: innovation leadership and a masterclass team that we have dubbed an Innovation Services Group. Innovation.B.1.3 © 2009 GISTICS Incorporated. All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 10 GISTICS executive white paper
................... ................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION II C us t om er Engagem ent Def ined ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 12 What frames the first principle of customer engagement, emphasizing the slow transformation of customer relationships into co-innovating partnerships? 13 What can marketers learn from the dictionary definition of engage? 14 How do we define customer engagement? 15 What constitutes Wikipedia’s definition of customer engagement? 16 How does a marketing operation engage customers? 17 What technologies support customer engagement? 18 What comprise the operation capabilities of customer engagement, emphasizing an evolving set of systems, processes, and accountabilities? 19 What comprise the operational capabilities of customer engagement? 20 How do friend networks require marketers to engage with multimodal communications? SERIES//MANAGEMENT ADVISORY GISTICS 11
Orchestrating the What frames the first principle of customer engagement, Technologies and Processes of the emphasizing the slow transformation of customer relationships into co-innovating Customer Engagement Cycle partnerships? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MOVING BEYOND TRADITIONAL MARKETING process will also demand that sellers enter into a long- EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved term relationship with evolving customer needs. To paraphrase David Ogilvy, the legendary ad man, “The Engagement constitutes a two-way process and varies customer is not an idiot. She’s your wife! You have to live little from the process of maintaining a successful personal with her in relative joy and content for a very long time … relationship with a thriving spouse. or it will become very, very expensive.” Long-term, mutually satisfying relationships constitute THE SECRET OF MARKET MAKING the first principle of customer engagement, expanding Peter Drucker’s dictum: “A firm has no other purpose than to find Silicon Valley holds many secrets, none more vital to and keep customers.” customer engagement than the secret of creating stupendous The figure below depicts several implications of customer new wealth. engagement. What follows constitutes a succinct summary of the Most notably, many senior marketing executives have secret of Silicon Valley as related by Jeff Martin, visionary long forgotten or never understood marketing-making and founder of Tribal Brands: relationships. Other marketing executives understand the Huge new markets produce fortunes and shareholder primacy of marketing-making relationships; however, they wealth. lack the systems, processes, and accountabilities by which to Great companies create huge new markets. engage innovation collaborators and early adopters. Breakthrough, game-changing products drive great In both cases, these soon-to-be-retired marketing companies. executives obsess with finding ready buyers and persuading Brilliant engineering produces insanely great, these buyers to become consumers, abdicating or ignoring breakthrough, and game-changing products. the subsequent transformation phases of engagement. Incisive, cogent product requirements inspire brilliant Mastering the customer engagement cycle demands full engineering. engagement with the transformational process of creating Inspired insights about customers of a new, not-yet- wholly vested stakeholders in effective collaboration. formed market define incisive, cogent product requirements. Full engagement then entails a parallel transformation Unbending intent to improve the quality of life and serve of the organization into a trusted partner, an institutional a higher common good induces inspired insights about citizen, and a true engagement innovator. future customers. The mastery of customer engagement will not only Ultimately, the customer engagement revolution brings transform buyers into collaborators, but the transformational the secret of Silicon Valley to every innovator in the world. C U S TO M E R S E N G A G E M E NT D R I V E S TH E I NNO V A T I ON O F N E W P RO D U C T S A N D S E R V I C E S Innovators—Collaborators Market-makers—Early Adoptors TR AN SF Sellers—Buyers OR MA TIO NA L Producers—Consumers PRO CE SS Trusted Partners—Loyal Customers StakeholderEvolution.1.3 ©2009 GISTICS Incorporated. All rights reserved Institutional Citizens—Stakeholders Customer engagement constitutes an innovation strategy, calling attention to the into loyal customers and stakeholders—individuals and groups that can play a primacy of collaboration with loyal customers and stakeholders in the enterprise. pivotal role in the development of new business models, products, processes, and Successful engagement speeds the development of buyers and consumers social networks. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 12 GISTICS executive white paper
Orchestrating the What can marketers learn from the dictionary definition of Technologies and Processes of the engage? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DEEP CULTURAL NARRATIVES DEFINITION OF ENGAGED EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Formal dictionary definitions of commonly used words Merriam Webster’s Tenth Collegiate Dictionary provides the often reveal deeper meanings and nuanced tonalities—facets following definition of the adjective, ENGAGED: that may convey additional if not unintended significances. 1: Involved in activity: OCCUPIED Merriam Webster’s Tenth Collegiate Dictionary 2: Pledged to be married: BETHROTHED provides the following definitions of engage, engaged, and 3: Greatly interested: COMMITTED engagement. 4: Involved special in a hostile encounter DEFINITION OF ENGAGE 5: Partly embedded in a wall (an engaged column) 6: Being in gear: MESH Derived from Medieval French, engagier, and the Old French elements of en + gage, the root element of ENGAGE DEFINITION OF ENGAGEMENT derives from token or gage. As a transitive verb, the definition of engage includes: Merriam Webster’s Tenth Collegiate Dictionary provides the 1: To offer (as one’s word) as security for a debt or cause following definition of the noun, ENGAGEMENT: 2: To a) entangle or entrap in (or as in a snare or bog); b) 1: a) An arrangement to meet or be present at a specific To attract and hold by influence of power; c) To interlock time and place (a dinner engagement) with: MESH; also to cause (mechanical parts) to mesh b) A job or period of employment, especially as a 3: To bind (as oneself) to do something; especially to performer binding by a pledge to marry 2: Something that engages: PLEDGE 4: a) To provide occupation for: INVOLVE (engage him in 3: a) The act of engaging: the state of being engaged a new project); b) to arrange to obtain the use or service of: b) Emotional involvement or commitment (Seesaws HIRE between obsessive engagement and ambiguous 5: a) To hold the attention of: ENGROSS (her work detachment) engages her completely); b) to induce to participate (engaged c: BETHROTHAL the shy boy in conversation) 4: The state of being in gear 6: a) To enter into contest with b) to bring together or 5: A hostile encounter between military forces interlock (weapons) 7: To deal with especially at length IMPLICATIONS FOR MARKETING As an intransitive verb, the definition of engage includes: The idea of engagement with customers and other 1: a) To pledge oneself: PROMISE; b) GUARANTEE (he stakeholders, including staff and shareholders, already engages for the honesty of his brother) exists in the language of commerce and marketing. 2: a) To begin and carry on an enterprise or activity However, the emerging use and definition of customer (engaged in trade for a number of years) b) to take part: engagement conveys these distinctions: PARTICIPATE (at college she engaged in gymnastics) • Customer engagement presumes a relationship that will 3: To enter into conflict persist over time 4: to come together and interlock (as machinery parts): • Relationship with customers begin first by attracting and be or become in gear. holding their attention • Engagement involves messaging (of tokens), communication (with emotional involvement), and interaction (over an extended period to time) • Engagement creates expectations for communication, interaction, and collaboration. t h e w o r d e n gage e n t ai l s seve r a l mea n i n gs ENGAGE means to Offer Entangle Mesh Bind Involve Engross Contest I give you I am ensnared I put the car My fiance and My client I find her work I challenge my word in the bush into first gear I will soon wed hired me most interesting you to a duel for a project EngageDefinition.1.0 ©2009 GISTICS, All rights reserved. The shared cultural norms and meaning of engage often lead to expectations among word, relationship. Customer engagement incorporates most if not all the cultural customers about the nature and manner of their being engaged with vendors; in a norms of a long-term relationship. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 13
Orchestrating the How do we define customer engagement? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ENGAGEMENT MANTRA BRAND STORYTELLING EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customer engagement constitutes a philosophy of brand- Every brand tells a story about the process of discovering, marketing communications and customer interaction, considering, buying, and using a product or service. emphasizing greater levels of collaboration in pre-sales and More notably, the figure also calls attention to two post-sales phases among buyers and sellers. modes: corporate storytelling and advocate storytelling. The philosophy of customer engagement entails a Companies promote their products or services, inducing primary sequence for marketing communication and service or persuading consumers to buy. However, in most interaction: consumer societies, consumers instinctively discount or • Connect with the buyer or customer on an immediate, ignore promotional pitches that do not connect with them visceral level, evoking an experience of liking or disliking as a human being, as an individual, and as a collaborator. someone, a group, or a thing, as well as an empathetic A strong brand and effective engagement kick-starts the correspondence with a customer’s situation. second mode, advocate storytelling. • Inform the buyer or customer. Often this means demonstrating the need for a new product or a more SIMPLIFICATION OF BRAND STORIES effective or cheaper way of doing things as compared to Most research of effective word-of-mouth marketing, competitors; with success, this elicits the experience of viral marketing, and customer advocacy reveals the brand relief—a successful outcome or result of using a featured story and related value proposition often undergo a radical product or service. transformation: Advocates internalize the brand and, in the • Entertain the buyer, using humorous, horrific, or process of sharing it, make the brand and value proposition seductive social situations; this reinforces deeper simple—with brutal concision. cultural narratives (shared expectations or beliefs) while Brand simplification optimizes the brand for rapid, broad dissipating any lingering fears associated with trying diffusion in a larger market and culture. While the legal something new. Success in this context creates a secret team cringes, brand and marketing managers celebrate with or ironic insight that one must simply share with the a tag line (“Where’s the beef?” or “Got Milk?”) that hits a right person. deeper cultural narrative, or the corporate brand (“I’ll xerox • Share directs a call to action and encourages the buyer or it” or “Just google the word.”) becomes a transitive verb and customer to forward a link, instant message, or SMS to hallmark of productivity. a friend or colleague regarding a new find: “You want to Thus, customer engagement engages customers in a check this out!” The item shared represents a currency or token of affection; often, sharing an item enhances larger conversation and, in the process, rounds off the sharp one’s social standing or reputation. edges of shallow, inauthentic corporate “marketing speak”. The Engagement Sequence may apply to any phase of the Brand-marketing communication process: awareness, involvement, trial, commitment, and referral. The figure below not only depicts the five phases of a branded offering; the figure indicates that engagement- sequence activities contribute to the overall brand storytelling process, especially in advocate S UC C E S S F UL C US TO M E R ENGAGEMENT S ACT IVAT E ADV OCAT E S TORYT ELLING storytelling. THE BRAND STORYTELLING PROCESS Corporate Storytelling Advocate Storytelling PHASES OF BRAND-MARKETING COMMUNICATIONS Product offering AWARENESS INVOLVEMENT TRIAL COMMITMENT REFERRAL Interest Positioning Adoption Community in a category ENGAGEMENT SEQUENCE Connect Inform Entertain Share Brands tell stories; customer • Immediate • Category of • Social context • Portable engagement kick-starts word-of- • Visceral need or desire • Humorous, horrific, • Currency of mouth marketing and personal • “Like”/“don’t like” • Positioning or seductive affection referrals within social networks, • Belonging • Differentiated • Cultural narrative • Facet of self communities, and peerages • Relief • Cool • Reputation EngagementDefined.A.1.0 ©2009 GISTICS, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 14 GISTICS executive white paper
Orchestrating the What constitutes Wikipedia’s definition of customer Technologies and Processes of the engagement? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BACKGROUND WORKING DEFINITION EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved According to the English-language version of Wikipedia Wikipedia offers the following definitions of online on 2 January 2009, edited here for concision, customer customer engagement: engagement refers to the engagement of customers with one A social phenomenon enabled by the wide adoption of another, with a company or a brand—either consumer- or the Internet, exploiting the technical developments in high- company-led using offline or online media. speed broadband, low-cost Internet-connected devices, and Unlike the marketing term, positioning, no single source digital media. defined customer engagement (CE). Discussed widely The behavior of customers that participate in online online and representing hundreds of published pages with lifestyle communities, directly or indirectly, associated reader comments, CE has become the topic of numerous product categories (cycling, sailing) and other consumption conferences, seminars and roundtables. topics; a socialization process that induces participants to Customer engagement presumes a longer term, more create positive association with sponsoring companies or strategic context with the assumption that simply user groups. maximizing for sales conversions can decrease the Marketing practices that create, stimulate or influence likelihood of repeat conversions. CE aims at long-term CE behavior. relationship, customer loyalty, and advocacy through word- Metrics that measure the effectiveness of the marketing of-mouth referrals and recommendations. practices which seek to create, stimulate or influence CE Customer engagement in online media differs behavior. from offline engagement: the nature of the customer’s interactions with a brand, company and other customers; INDUSTRY PROOF-POINTS discussion forums, social networking sites, blogs, and Amazon recently re-branded itself, using the slogan “Serving rankings enable people to communicate in ways not possible the world’s largest engaged online community.” in most offline media. The rise of online user generated The World Federation of Advertisers (WFA) offers a content now makes customer advocacy and antagonism a “Blueprint for Consumer-Centric Holistic Measurement.” common feature of most markets. The Association of National Advertisers (ANA), Customer Engagement enables organizations to more American Association of Advertising Agencies (AAAA) and effectively respond to the fundamental changes in customer the Advertising Research Foundation (ARF), now operate behavior brought about by the Internet. CE addresses an “Engagement Steering Committee” to define metrics for the need to offset the increasing ineffectiveness of the customer engagement. traditional ‘interrupt and repeat’, broadcast and print Nielsen Media Research, IAG Research and Simmons advertising approach. Research all pursue the development of a CE definition and Customer Engagement enables organizations to overcome metric. the following sources of increasing loss in market power: In March 2006, the Advertising Research Foundation • Fragmentation of media and audiences announced the first definition of customer engagement[4] • Greater specialization of media content the first definition of CE at the re:think! 52nd Annual ARF • Consumer expectation for variety and convenience Convention and Expo: “Engagement is turning on a prospect • Simultaneous multichannel media consumption by to a brand idea enhanced by the surrounding context.” consumers Some theorists and practitioner refer to customer • Instant messaging among peers while consuming media engagement as the stages through which consumers travel as they interact with a particular brand and developer deeper • Lower physical switching costs for most products and bonds of affection and reciprocity. services This Customer Engagement Cycle, or Customer Journey, • Widening of geographic market access has been described using a myriad of terms but most often • Lower reputation among some consumers of many consists of 5 different stages: Awareness, Consideration, corporations with non-sustainable offerings and offensive Inquiry, Purchase and Retention. policies Marketers employ Connection Strategy to speak to Customer Engagement seeks deeper and more frequent would-be customers at each stage, with media that addresses customer contributions as an important source of their particular needs and interests. competitive advantage: public endorsement of advertising When conducting Search Engine Marketing Search themes, user-generated product reviews, customer service Engine Optimization, or placing ads, marketers must FAQs, etc. devise media and/or keywords and phrases that encourage customer flow Customer Engagement Lifecycle towards Purchase. Because the various definitions often focus on entirely different aspects of CE, competing definitions often illuminate hidden or obscure aspects of CE. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 15
Orchestrating the Technologies How does a marketing operation engage customers? and Processes of the Customer Engagement Cycle- DRAFT ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... OPERATIONAL CAPABILITIES DRIVING BRAND CONVERSION EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved All or most professional marketing executes a strategy for Brand Conversions of the model depicted below connote how best to find and serve customers. traditional phases of the marketing process, reinterpreting The ability to successfully execute strategy entails an two of the phases: facilitated buying and WOM agents. operational capability of marketing: systems, processes, and Facilitated buying connotes the increasing role of social accountabilities. networks, Web services, and self-directed buyers. The figure below depicts a subset of a marketing WOM agents connote the potentially explosive potential operation, highlighting the operational capabilities of of formal word-of-mouth (WOM) marketing programs and customer engagement—that we will define elsewhere in this the use of social agencies to find and deputize WOM agents. paper. The figure below also depicts a set of actors or resources that can speed the brand-conversion process—systems and WEB-CENTRIC VIEW technologies of the engagement cycle and the principal focus Customer engagement spans traditional “offline” of this paper. marketing media and channels as well as online and mobile counterparts. INTEGRATED MARKETING 2.0 However, customer engagement puts the Web and online, The nearly exhausted but still useful moniker, 2.0, conveys interactive customer at the center of the entire enterprise. an important facet of integrated marketing: The customer Identification of Web User denotes the five operational gets a say in what gets marketed to whom and how. states of a customer database and, therefore, the operational The bottom row in the figure below depicts a logical capability to engage a buyer or customers in optimal ways. next-step in customer-integrated marketing, suggesting that We will develop these largely self-evident definitions traditional print and broadcast advertising and promotion elsewhere in this paper and companion web site. now stand alongside new digital formats and services. The new term Customerized connotes a key operational principle of customer engagement cycle, correlating customer-provided preferences, product-mix optimizations, and dynamic publishing of content or provisioning of services. The term Certified connotes the formal registration of the customers in an advocacy or beta-test pilots association. C U S TO M E R E N G A G E M E NT R E Q U I R E S R E S OUR C E S A N D C A P A B I L I T I E S F RO M M ULT I P L E P A RT I E S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) Stages of the Customer Engagement Life Cycle Operational Capability Marketing Drivers of the Customer Engagement Life Cycle Advertising, Brand Sites, Personalized Content/Service Certified Advocates, KEY ACTORS DRIVING Direct Mail, Topical Microsites, Messaging, Mash-ups, Preference Viral Video Stash, BRAND CONVERSIONS Promotions, Social Media, Remixable/Social Managers, and Policy- Collaboration and AdWords, and Multichannel Content, and managed Processes Solutioneering SEM and SEO Marketing Analytics Webcast Theaters Platforms EngagementCapabilitiesModel.C.1.0 ©2009 GISTICS, All rights reserved. The figure above depicts six operational capabilities of customer engagement; marketing operations will secure from engagement partners—agencies, service each capability entails a set of systems, processes, and accountabilities that most providers, and specialist firms. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 16 GISTICS EXECUTIVE WHITE PAPER
Orchestrating the What technologies support customer engagement? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Operational Marketing In particular, many forward-thinking marketing EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved executives now realize that a combination of traditional The term operational marketing defines the comprehensive promotion and search engine marketing (SEM) has become integration of systems, databases, and processes of the more efficient: they need not spend as much money for customer-making process. awareness, activation, and lead generation. In all but small technical firms or clicks-only ecommerce Rather, the greater front-end efficiencies of what we firms, few medium or large enterprises have achieved a level call the Google effect now compel a greater investment of process integration—at least not yet. in the back-end efficiencies of sales conversion, customer However, with the Web, software innovation, burgeoning retention, satisfaction assurance, and advocacy. digital ecosystems, and larger portions of buyers and Operational marketing provides a framework for customers doing business online, the integration of the integrating the various front-end and back-end activities of customer-making process becomes more feasible for all the customer-making process, linking several previously firms with each passing day. isolated systems and processes to a unified or federal The figure below depicts several technical systems, governance scheme: crisp, clear roles, responsibilities, and calling attention to their role in pre-sales and post-sales daily progress-status reporting.. activities of the customer-making process. OPERATIONAL MARKETING EMPHASIZES INTEGRATION OF PRE-SALES AND POST-SALES ACTIVITIES STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) GREATER Affiliates and Certified Consultants VA L U E - A D D E D B Y C U S T O M E R L I F E C Y C L E S TA G E Customer Insights Voice of Customer PRE-S Contribution Customer Master L ES ALES SA T- Operational CRM S Broadcast and Display Ads Sales CRM PO Social Marketing Search Engine Marketing Social Media Monitoring Content Optimization E-Messaging Opt-in Offers Marketing Databases LESSER ENGAGEMENT CYCLE TECHNOLOGIES EngagementModelMOMTech.B.1.8 ©2009 GISTICS Incorporated, All rights reserved. The Web and a global digital ecosystem enable large and small organizations to responsibilities, and daily progress-status reporting of all staff and affiliates involved in integrate pre- and post-sales activities, using unified governance with clear roles, the customer-making process. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 17
Orchestrating the Technologies What comprise the operation capabilities of customer and Processes of the Customer Engagement Cycle- engagement, emphasizing an evolving set of systems, processes, and DRAFT accountabilities? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... STRATEGY EXECUTION with deep cultural narratives of desire, aspiration, and EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved consumption. Marketing organizations execute market-making and Contextualization constitutes the hard work of adapting brand-building strategies, using systems, processes, and a brand and its value proposition into meaningful, easily accountabilities—what we call operational capabilities of conveyed experiences of Engagement: connect, inform, marketing. entertain, and share. The table below describes the six general operational Execution publishes marketing content and interactive capabilities that execution of customer engagement services across multiple channels and media formats, strategies requires. including the PC- and mobile-accessed Web, digital signage, Monitoring entails the collection of usable data about printed materials; execution also includes individualized customers, media consumption, and how the company and emails and self-configured Web pages. its competitors move particular customer segments from Governance of customer engagement applies the awareness, consideration, and trial to adoption, loyalty, and principles of industrial process management to customer advocacy. making, using normative models of excellence for successful Listening transforms these data with corresponding engagement: brand conversion rates, satisfaction, long- assumptions and analytic models into insights, projects, and term value of customer relationships, revenue per database opportunities. record. Dialog Maps use keywords, phrases, metaphors—how customers talk about a brand. Messaging often represents the work of creative and engagement partners—specialist firms that know how to associate a brand and the brand’s value proposition C U S TO M E R E N G A G E M E NT R E L I E S ON specific C A P A B I L I T I E S O F M A RK E T I N G O P E R A T I ON S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) O P E RAT IO N A L CA PAB IL IT I ES O F C U S T O M E R E N G A G E M E NT MONITOR (MNT) • Aggregate marketspace activities • Track patterns of engagement • Model business performance LISTEN (LST) • Re-calibrate listing tools • Classify themes, sentiment, etc. • Build dialog maps and frameworks MESSAGE (MSG) • Ideate themes, concepts, copy, etc. • Create engagement assets • Validata in private social networks CONTEXTUALIZE (CTX) • Retrieve data and components • Assemble engagement objects • Package for consumption EXECUTE (EXE) • Stage for quality assurance • Provision engagement objects • Manage exceptions GOVERN (GVN) • Measure efficiency and effectiveness • Monitor policies and deviations • Summarize activities and results Advertising, Brand Sites, Personalized Content/Service Certified Advocates, KEY ACTORS DRIVING Direct Mail, Topical Microsites, Messaging, Mash-ups, Preference Viral Video Stash, BRAND CONVERSIONS Promotions, Social Media, Remixable/Social Managers, and Policy- Collaboration and AdWords, and Multichannel Content, and managed Processes Solutioneering SEM and SEO Marketing Analytics Webcast Theaters Platforms EngagementCapabilitiesModel.B.1.1 ©2009 GISTICS, All rights reserved. The first column of the table above describes the six operational capabilities that to acquire and maintain an evolving set of systems, processes, and accountabilities. execution of most customer engagement strategies requires, emphasizing the need ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 18 GISTICS EXECUTIVE WHITE PAPER
Orchestrating the What comprise the operational capabilities of customer Technologies and Processes of the engagement? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved SUBSET OF TRADITIONAL MARKETING OPERATIONS CAREER PATHS IN CUSTOMER ENGAGEMENT For many firms, the operational capabilities of customer The table below details many facets of customer engagement constitute a subset of marketing operations. engagement. Marketing operations may include branding, traditional Customer engagement requires a deep knowledge technical advertising development and placement, trade promotions, systems, development methodologies, and process packaging, sponsoring, publicity, and press relations. management—the new career opportunity. C U S TO M E R E N G A G E M E NT C ON S T I TUT E S A S UB S E T O F TR A D I T I ON A L M A RK E T I N G O P E R A T I ON S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) 1 MONITOR (MNT) Aggregation entails the “spidering,” summarization, or syndication of published material online; this includes syndicated research, social network pages, and the findings of social media monitoring. • Aggregate marketspace activities • Track patterns of engagement Tracking patterns of engagement uses all available data sources, including anonymous behavioral data • Model business performance that later enriches a named-user database record. Modeling the performance of business models uses XBRL data sources and correlates meaningful shifts in the shares of market capitalization, revenues, and profits among firms in an industry sector. 2 LISTEN (LST) Recalibration of listening tools (social media monitoring, semantic tagging, behavioral data model and collections, etc.) includes refining keyword taxonomies (for search, search engine optimization, ad word • Re-calibrate listing tools buys), survey questions and methods, and consumption cohorts and personas. • Classify themes, sentiment, etc. • Build dialog maps and frameworks Classification of themes, sentiments of customers and influencers, and use-case insights requires text- mining engines, faceted taxonomies, and data visualization and dashboard summarization technologies. Dialog maps define a customer’s lifecycle of experience, translating customer insights, key use-case concepts and concerns, and language to use into two- or three-way conversations; dialog maps also specify media-mix optimizations and product-mix optimizations. 3 MESSAGE (MSG) Ideation emphasizes concept development of themes, reasons to engage, and strategies and tactics for activating specific customer touchpoints and life-passage stages. • Ideate themes, concepts, copy, etc. • Create engagement assets Asset creation entails the development of reusable digital assets, the classification and tagging of each • Validate data in private social constituent element (photo, placed objects within the photo) of an engagement asset (catalog page, ad), networks and the placement of all digital assets in a special repository thus, making all assets available to all authorized users within a global marketing operation or marketing supply chain. Validation of engagement assets uses private social networks comprised of “friendlies,” brand advocates, and test panels to interact with the intended engagement and provide detailed comments. 4 CONTEXTUALIZE (CTX) Retrieving data and media components requires accessible asset repositories of accurate customer data, product information, media assets, and business rules and policies governing each asset. • Retrieve data and media components Assembly of customer engagement objects automates the routing, control, and proofing of printed • Assemble customer engagement collateral and ads, broadcast ads, online content, and interactive services. objects Packaging content and services covers a range of activities that remain specific to the medium, • Package for consumption message, and format; however, packaging of online content and services entails semantic tagging of content, search engine optimization, and application of metadata. 5 EXECUTE (EXE) Staging presents unpublished marketing content and interactive services to a quality assurance team, simulating user experience and access by myriad devices and configurations; for printed materials or • Stage for quality assurance manufactured goods, staging may include digital or physical proofs, mock-ups, and press checks. • Provision engagement objects • Manage exceptions Provisioning completes the publishing process and delivers finalized marketing content or interactive services to the intended party; provisioning includes the personalization or customerization of printed materials; most notably, provisioning calls attention to a prerequisite high-availability technical infrastructure. Managing exceptions emphasizes a real-time customer and partner feedback system and the ability to immediately execute a change; this includes the rapid provisioning of patches and fixes to deployed systems. 6 GOVERN (GVN) Measurement tracks operational efficiency (on time, at budget, spendings to date by market, media, partners, etc.) and operational effectiveness (incremental and recurring revenues, new customer • Measure efficiency and activations, leads to channel or field, downloads, impressions, etc.). effectiveness • Monitor policies and deviations Monitoring of policies and exceptions (over budget by procurement line item and project) provides • Summarize activities and results the first indications of problems (especially critical in product launches) with packaging, designs, and localization—critical upstream activities that can cascade downstream in global catastrophes. Summarization goes beyond dashboards and statistics, emphasizing the dynamic modeling of all key dimension of the customer-making process as well as the fact-based calculation of the economic value of each customer relationship and its corresponding database record. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 19
Orchestrating the How do friend networks require marketers to engage with Technologies and Processes of the multimodal communications? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... COGNITIVE DIVERSITY SPHERES OF INFLUENCE EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Many of today’s markets no longer consist of solitary buyers Everyone has a number of friends who listen to and consider who make independent purchase decisions. an offered opinion or recommendation. Rather, current consumer research reveals the significant The figure below depicts four more dimensions of and growing role of social networks and social media in influence: shaping desire and consumption. • In small groups, individuals will tend to emphasize one The figure below depicts several dimensions of how of four basic relational styles: playfulness and belonging, customers now engage markets. action and results, helpfulness and inspiration, and Customers engage markets using their social network of information and neutrality. friends to scan, track, intercept, interpret, reframe, integrate, • Networked individuals relate to others on the basis of and socialize brands, value propositions, and paths to their core group of nine or so best friends. purchase and satisfaction. • The number of individuals in a social network varies Social networks not only produce media; these networks from one person to the next: 11, 33, and 75 friends, enable an individual to activate connections and request respectively. assistance of other individuals: experts and taste makers. • The Internet renders geography of friendship almost meaningless: young adults have “good friends” from far- NEW CLASS OF KNOWLEDGE WORKERS flung places around the world. In a structural sense, all customers constitute a type Multimodal communication incorporates these of knowledge worker; all or most of the principles of dimensions of influence, framing marketing information knowledge worker productivity apply to customer as social currency for members of a core group and larger engagement. network to barter and exchange among themselves. Mastery of customer engagement requires mastery of knowledge worker productivity. Mastery of knowledge worker productivity informs the mastery of customer engagement. Knowledge workers optimize their satisfaction and productivity by E N G A G E M E NT E NT A I L S C ONN E C T I N G A N D I N F OR M I N G A B E S T - exploiting their own particular cognitive F r ieN D N E T W ORK styles, preferred ways of learning, and communication skills. Play/ In part, personal knowledge worker 11 BELONGING productivity entails a preferred learning style: FRIENDS • Reader-thinkers who prefer to take Knowledge/ Results/ lots of notes as a way to structure, Play/ NEUTRALITY POWER organize, and encode new information 33 BELONGING and perceptions • Talker-listeners who prefer to hear FRIENDS someone introduce, explain, and emotionally anchor new information Knowledge/ Results/ Inspiration/ and feelings NEUTRALITY POWER SERVICE • Watcher-doers who prefer to observe someone perform a task or diagram a use case, taking immediate action that re-creates the performance in a Inspiration/ physical or imaginary realm SERVICE 75 Multimodal communication satisfies FRIENDS Play/ these three preferred styles of learning. BELONGING Knowledge/ Results/ NEUTRALITY POWER A wide diversity of cognitive skills exists in most of these social networks of friends, requiring that marketers use Inspiration/ multimodal communication and interaction styles that SERVICE connect and inform the various individuals of a social CircleofFriends.1.2 network of friends. ©2009 GISTICS All rights reserved ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 20 GISTICS executive white paper
................... ................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION III Operational Capabilities of Customer Engagement ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 22 What constitutes the customer engagement cycle, emphasizing seven phases by which firms define and create engaging content? 23 What constitutes creative content in a context, emphasizing to the need to engage customers in specific venues and preferred ways to engaging a brand? 24 How do particular buyer reactions to content produce behavioral data, emphasizing a progression of data collection activities? 25 How does effective customer engagement maximize long-term customer value? 26 What contributes to multichannel analytic insights, emphasizing a more comprehensive understanding to individual customers in an engagement life cycle? 27 What comprises the service capability of a voice-of-the-customer system? 28 What contributes to content planning, media plans optimization, product- offering mixes, and social networking for customer cohorts by engagement lifecycle phase? 29 How do engagement planners optimize content, using a content customerization framework with customer preferences and consumption scenarios? 30 What elements comprise customerized content, defining the properties of customer engagement objects? 31 What technologies provide the foundation for mastering the engagement cycle? 32 What defines an operational capability? 33 What comprises an information maturity model of customer engagement? 34 How can an engagement maturity model clarify a firm’s next steps? 35 What comprise the process-maturity phases of multichannel marketing analytics, an example of example of one engagement cycle process maturity model for multi channel analytics? 36 What comprise the process-maturity phases of multimodal content management, sequencing the evolution of customer engagement objects? 37 What comprise the process-maturity phases of personalized messaging, sequencing the evolution of provisioning and executing emails and newsletters? 38 What comprise the process-maturity phases of marketing process orchestration, sequencing the evolution of marketing operations management? SERIES//MANAGEMENT ADVISORY GISTICS 21
Orchestrating the What constitutes the customer engagement cycle, emphasizing Technologies and Processes of the seven phases by which firms define and create engaging content? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ENGAGEMENT CYCLES CLOSED-LOOP FEEDBACK SYSTEM EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers navigate the concentric rings of trust in their It then follows that the transit from awareness, individual brandspaces (unique to each customer), arriving consideration, and trial to purchase, adoption, commitment, at the brand engagement theaters of their trusted brands. and advocacy—stages of the brand lifecycle—comprise What then ensues comprises the seven phases of the hundreds of discrete engagement cycles. engagement cycle. The structured model below supports these key insights: Brand engagement theaters constitute the first phase, • Faster engagement cycle times induce greater levels of presenting content, navigation, presentation, and context. engagement. User reactions may entail reading or viewing, clicking • Few defects in delivered content, navigation, and through the next page or section, or exiting. Key point: Most presentation increase the probability of success. visits exit for reasons unknown, a strategic breach that • Most defects occur unnoticed, leading engagement engagement managers must address with session-monitoring managers to make the same mistakes again and again. systems. • Automation and policy management of content Behavioral data from most Web analytic systems provides workflows can reduce the number of defects. useful but minimal insights into both anonymous unnamed • Voice-of-customer systems provide critical insights as to and named users. The next frontier of behavioral data will what’s broken, missing, or needed. include interaction data from inside immersive rich-media streams and video, documenting where users went and what • Analytic insights and voice of customers must inform content creation; this requires formal systems for they did. documenting content-user requirements. Analytic insights include other sources of data: customer databases, social media monitoring, voice of the customer, • Effective engagement requires governance: someone and newer Web analytic tools. within the firm must step forward and take ownership of the engagement cycle. Content-user requirements specify what types of “information food groups” particular high-value customer segments prefer; providing these will require a formal information consumption model and procedures for directing content creators to produce required information, matching user-consumption profiles to classes and types of information and media formats. Content optimization starts with semantic tagging of Web pages and documents, creating topic maps (similar to tag clouds, only specific seve n s t age c y c l e c r ea t es c u s t o me r ized c o n t e n t to an individual page) and metadata sets that later will power faceted search and dynamic navigation. 1 2 BRANDSPACE Contextualized content uses behavioral Visitor Creative Reaction targeting, semantically tagged content that enables dynamic composition of topic • Unnamed Content maps or page-specific tag clouds, faceted • Named in Context Circles of Trust navigation (dynamically constructed keywords within a multitiered hierarchy or taxonomy), and user account histories, 7 3 journals, and personal collections within Customerized Behavioral the site. Content Data Engagement Cycle 6 Phases 4 Content Multichannel Optimization or Analytic Individualization EngagementCycleBasic.A.1.1 Insights ©2009 GISTICS Incorporated, All rights reserved. 5 Content Governance and accountability of the engagement CONTENT Planning VOICE-OF-CUSTOMER cycle define career opportunities leading to executive CREATION CONTENT ANALYSIS management of marketing. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 22 GISTICS executive white paper
Orchestrating the What constitutes creative content in a context, emphasizing Technologies and Processes of the to the need to engage customers in specific venues and preferred ways to engaging a Customer Engagement Cycle brand? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... CONTEXT THAT CONNECTS based limbic system, the emotional and sensing cortex, and EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved the rational and analytic neocortex) agreeing with a sensory Customers connect (or do not connect) with brands and input or inputs. related value propositions, using many nonverbal, implicit, Neuro-linguistic programming (NLP) practitioners further or environmental cues. suggest that a state of relative congruence matches three The real work of engagement begins and ends with more important and phase-locked subjective states: affinity, creating an appropriate and natural social and market communication, and agreement. context in which to activate and engage customers. Simply put, a high level of congruence entails an equal The figure below depicts the first phase of the and matched level of affinity (smiles, nodding heads, engagement cycle—creative content in context—calling mirrored body postures), a willingness to communicate attention to three dimensions of context, creative content, personal information (opt-in, completing a survey), and a and brand engagement theater. felt responsibility and follow through in keeping a promise Context constitutes the sum total effect that the choice or keeping one’s end of the deal. of metamessages, venue, and metadata evoke as a specific Thus, the context that connects evokes a high and and intended experience among different consumers. increasing level of congruence, affinity, communication, Design choices and tonalities that specific visual images, and agreement follow through, defining the four central formats, and layouts evoke represent a metamessage. Other dimensions to benchmark, monitor, and guide systems- metamessages may include the ethnic identities of human based optimization of the customer engagement cycle. models and more subtle “tribal markers,” such as hairstyle, cut of clothing, and modernity or datedness of setting. BRAND ENGAGEMENT THEATER Venue clearly evokes different behaviors from consumers, evincing the role that belief, expectation, degrees of The metaphor of a brand engagement theater takes on freedom, and the presence (or absence) of other people play new meaning with the addition of ideas of a context that in venue-specific behaviors. connects. Metadata and its related application to media and other The figure below depicts one more central insight: customer engagement objects (metatagging) emphasize a consumers collapse media channel, service delivery, and critical and often broken link in the customer engagement points of purchase into a seamless experience of the brand; cycle. Metaphorically, metadata represents the card index brand marketers must now “exercise” their digital limbs, file of a library of resources (books or tools). Missing, adding to or enhancing the customer’s experience of service incomplete, or wrong metadata severs the connection and and overall satisfaction. access to a specific and needed resource: marketers fail to connect with consumers. Elsewhere in the paper, M A T C H I N G S P E C I F I C M A RK E T I N G C ONT E NT A N D A N A P P RO P R I A T E C ONT E X T we develop more fully A F F E C T S L E V E L S O F C U S TO M E R E N G A G E M E NT the idea of a customer engagement object (a new class of digital Context • Metamessages of design and tonality assets) that plays a • Venue: online, electronic, print, physical central role in the • Congruence: environment, consumer, message engagement cycle. • Metadata and metatagging 1 2 BRANDSPACE 1 Visitor Creative Reaction • Unnamed Content Creative Content in a Context: in Context CONGRUENCE • Named Circles of Trust • Corporate: Website, microsites • Mobile: SMS, MMS, video Successful engagement • Retail: Signage, packaging, etc. 7 3 results when matching Customerized Behavioral Content Data • Direct mail: Catalogs or mailers the right messages with Engagement • Broadcast: Ad spots, placements • Social networks: ‘Friended brands’ specific consumers in an Cycle • Blogosphere: Seeded sites, etc. appropriate and suitable 6 Phases 4 Content Multichannel environment. Optimization or Individualization Analytic Insights Cognitive scientists suggest that “congruence” entails all 5 Content CONTENT three brains (survival- CREATION Planning VOICE-OF-CUSTOMER CONTENT ANALYSIS Brand Engagement Theater Points EngagementCycle1Context.A.1.1 ©2009 GISTICS Incorporated, All rights reserved. of Purchase and Personal Online Services Media Electronic Context frames the level of participation engagement in brand engagement Services Media theaters, unifying a brand voice and a value proposition across multiple Physical channels, media, and formats. Media ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 23
Orchestrating the How do particular buyer reactions to content produce Technologies and Processes of the behavioral data, emphasizing a progression of data collection activities? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DATA INDICATING ENGAGEMENT ACROSS MANY TOUCHPOINTS MULTICHANNEL BEHAVIORAL DATA EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers connect (or do not connect) with brands and Data collection processes often comprise number of distinct related value propositions, using many nonverbal, implicit, and often independently managed activities and systems. or environmental cues. Behavioral data spans all phases of the customer The real work of engagement begins and ends with engagement lifecycle, revealing new information about creating an appropriate and natural social and market the buyer-seller relationship and the evolution of the context in which to activate and engage customers. relationship into more stable and profitable states. The figure below depicts two phases of the customer Multichannel customer identities indicate the need engagement cycle: reaction and behavioral data. to compile and refine composite profiles of customers, Reactions to creative content in context start with combining behavioral data with other types of data awareness of a particular setting in the marketspace: a social (Web session data, customer data, subscriber data, and context, a physical environment (including online), and certification data). Other data sources that further creative messaging (including image, text, motion graphics). complement behavioral data include database analytics A myriad of other factors may influence a buyer’s using syndicated consumer and lifestyle data, as well as impulse or directed decision to proceed deeper in voice-of-customer content analytics. shopping modalities. Other modalities not shown include As we explain elsewhere in this paper, multichannel procurement, sourcing, and resupply. behavioral data leads to new, emerging disciplines— multichannel analytics and analysis-driven communications and collaborations with customers. R E A C T I ON S TO C ONT E NT C A N P RO D U C E D A T A I N D I C A T I N G TH E S T A TU S O F A BUY E R I N TH E C U S TO M E R E N G A G E M E NT L I F E C Y C L E Reaction: SHOPPING MODALITIES • Notice or pass • Understand or not • Consider or dismiss 1 2 BRANDSPACE Visitor Creative Reaction • Futurepace a trial Content • Futureproof a relief • Unnamed • Named in Context Circles of Trust • Viscerally commit 7 3 Customerized Behavioral Reaction • Rationalize Behavioral Data: Content Data CUSTOMER IDENTITIES Engagement • Purchase Cycle • Unknown stakeholders 6 Phases 4 Content Multichannel — Web traffic MULTI-CHANNEL Optimization or Behavioral Analytic Data Individualization Insights — Floor traffic • Known stakeholders 5 — Call center Content CONTENT Planning VOICE-OF-CUSTOMER CREATION CONTENT ANALYSIS — Named site users • Profiled stakeholders PHASES OF THE CUSTOMER ENGAGEMENT LIFE CYCLE STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) DATA COLLECTION WEB SESSION DATA USER DATA CUSTOMER DATA SUBSCRIBER DATA CERTIFICATION DATA PROCESSES • Web IP address • Registration info • Purchases and returns • Categories of interest • Social network • Session pages/time • Email opens/frequency • Service episodes/cases • Information preferences connections (partial list) • Search event/keywords • Site loyalty/ • Wish and gift lists • Learning modalities • Reputation rank consumption • Spheres of influence EngagementCycle2-3Data.A.1.2 ©2009 GISTICS Incorporated, All rights reserved. Each new advance in customer engagement enables marketers to collect more behavioral data from buyers at an expanding number of touchpoints in a marketspace. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 24 GISTICS executive white paper
Orchestrating the How does effective customer engagement maximize long- Technologies and Processes of the term customer value? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... STRATEGIC SEGMENTATION AND ENGAGEMENT takes place in the unconscious processes of the limbic EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved system or reptilian brain of human beings. Customer engagement starts with segmentation, answering Most-strategic customers comprise generally small, the question “What demographic, economic, psychographic, overlooked portions of the market that nonetheless and behavioral data sets describe our ideal customers?” determine tomorrow’s share of the market. Traditionally, The figure below depicts several key facets of the answer youth markets provided consumer goods vendors the to the question, “What types of customers should we opportunity to engage and brand first-time buyers, creating a engage?” lifelong relationship of service and consumption. Most-satisfied customers comprise individuals and Today, online services that support customer self-service segments of businesses or institutions that love a branded have begun to determine tomorrow’s share of markets. offering, self-identifying with its user community or the Action point: Identify the source of new entrants to your aspirations that brand use fulfills. Digging deeper into this markets, using voice-of-the-customer systems to quantify group, we find customers who know how to buy and use a their “technographics”—level of adoption and preference for brand offering; consumption constitutes a social ritual. digital third-handed engagement with mobile, online, and Action point: Fix clumsy satisfaction assurance processes; interactive kiosks. use a voice-of-the-customer system (described elsewhere in this paper) to identify problems and ways to fix them. LIFETIME VALUE OF CUSTOMERS Most-profitable customers comprise segments that realize additional value—social esteem or greater productivity— Customer engagement should optimize the lifetime value of from the branded product or service. In consumer markets, customer relationships. customers often justify paying a price premium (source of Maximizing lifetime profits starts with a comprehensive profit to vendors) as a deserved or earned luxury or as an process model of satisfaction assurance, defining how and investment in productivity or a tangible capacity that will where customers communicate, interact, and collaborate earn back its investment: lower costs, faster time to market, with your service infrastructure, as well as the customers’ higher quality, greater differentiation of a work product or social networks. finished good. The figure below depicts seven generic strategies for Action point: Develop solid, unassailable return-on- maximizing profitability; each company in its chosen investment calculators for commercial offerings, using markets will employ its own unique strategies. activity-based accounting techniques to measure otherwise Action point: Use activity-based accounting to quantify intangible economic gains. the basic cost to serve an average customer over a multiyear For consumer offerings, quantify the return on customer-producer relationship, establishing the baseline invested time (RIOT) and how consumers might spend of costs and typical service events. Then, calculate the cost their productivity or lifestyle dividend. Remember: the to serve various customer segments and customer types, calculation of time, money, attractiveness, food, and safety correlating those costs to lifetime revenue. C U S TO M E R E N G A G E M E NT W I TH S E G M E NT A T I ON A N D M A RK E T “ S W E E T S P OT S ” D R I V E L I F E T I M E P RO F I T A BL I TY Demographic success model HIGH HIGH PROFIT Premium Cloning Service strategy strategy Education strategy Most Loyal, Valuable Demanding L IFE TIM E R EVEN UE Most-satisfied Most-profitable customers customers SWEET Up-sell SPOT strategy Higher Premium Branding Use strategy strategy DemoSuccess.1.2-c © 2009 GISTICS Incorporated All rights reserved. Deadwood Most-strategic Undeveloped Exit (share-determining) strategy customers HIGH LOSS LOW CustomerValueLifetime.1.2-c © 2009 GISTICS Incorporated, All rights reserved. LOW CO S T TO S ER V E HIGH Digital third-handed consumers seeking on-demand services and interactive marketers develop operational capabilities for provisioning self-service applications to applications represent a typical share-determining market sector, requiring that brand the profitable customer types. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 25
Orchestrating the What contributes to multichannel analytic insights, emphasizing a Technologies and Processes of the more comprehensive understanding to individual customers in an engagement life cycle? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BEYOND TRADITIONAL DATABASE MARKETING ANALYTICS SEMANTIC TAGGING OF INTERVIEWS AND SOCIAL MEDIA EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Mastering the customer engagement cycle takes database Qualitative data from surveys, focus groups, and interviews marketing and related analytics into a new era of insights can provide powerful ways of analyzing quantitative data. and fact-based communication. The figure below also depicts another advance in The figure below depicts two important dimensions of qualitative data analysis: Voice-of-the-customer Content the engagement cycle: Analysis, using specialized text-mining technologies that Multichannel analytics add new data sets to the database classify massive amounts of digital text—transcripts from analysis (with enriched data from syndicated or compiled interviews and focus groups and abstracts of millions of data sources), integrating data from Web sites, emails, and blogs, forums, social networks, and user-generated content. social media monitoring. This type of “social” data not only documents the This will require the use of specialized analytic database keywords and phrases of real customers, content analysis and train-of-thought data visualization tools as well as can infer meaningful shifts in awareness, consideration, sources of usable, well-maintained data sets—not normally and trial, including dissatisfaction and negative or positive found within marketing operations and, thus, secured from word-of-mouse—potential early warning events that trigger external data and marketing service providers. remedial action (engagement!) M ULT I C H A NN E L A N A LYT I C S : TH E C U S TO M E R E N G A G E M E NT L I F E C Y C L E STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) PHASES OF THE CUSTOMER ENGAGEMENT LIFE CYCLE Multichannel Analytic Insights: 1 2 BRANDSPACE Creative Reaction Visitor • Unnamed • Named Content in Context • Syndicated data Circles of Trust • DB analysis • Email newsletter logs 7 3 Customerized Behavioral Reaction Content Engagement Data • Web user journals Cycle • Social monitoring 6 Phases 4 Content Multichannel Optimization or Behavioral Analytic Data Individualization Insights Content Uses and Applications 5 Content CONTENT Planning VOICE-OF-CUSTOMER CREATION • Corporate reputation • Engagement scorecards CONTENT ANALYSIS • Web site testimonials • Content optimization • Case studies • Search engine marketing • Social marketing topics Dashboard • Insights and innovations Recorded Journey-of- Transcription Text Mining and • Issues and flashpoints Telephone the-Customer Content Classification Interview Interview Production • Keywords and phrases • Cause-effects: policies and brand touchpoints • Contact(s) • Initial issues and problems • 3,000 to 7,000-word • Semantic tagging • Role • Root-cause insights transcript • Faceted taxonomies EngagementCycle4-Analytics.A.1.2 ©2009 GISTICS Incorporated, All rights reserved. • Firm/household • Catalytic events • Annotated screenshots • Topic maps and graphics from library • Industry/custom • Functional requirements • Auto-summarization Each new advance in customer engagement enables marketers to • Engagement • Solution research of sentiments and trends preferenda collect more behavioral data from buyers at an expanding number • User experience and criteria of touchpoints in a marketspace. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 26 GISTICS executive white paper
Orchestrating the What comprises the service capability of a voice-of-the- Technologies and Processes of the customer system? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... JOURNEY TO SATISFACTION APPLIED INSIGHTS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers discover, consider, buy, use, and dispose of Voice-of-customer systems provide hard data and insights, products (or terminate services) across what many call associating sentiments and perceptions that traditional the customer-brand lifecycle, creating a cumulative set of surveys and quantitative methods miss. experiences that becomes a brand. VOC systems reveal how particular customers see Aside from the occasional letter or email (generally and feel about discovering, considering, buying, using, a complaint), periodic surveys and focus groups, and and disposing of various products (or terminating various session abstracts from calls for service with a teleservices services) in that customer’s or stakeholder’s brandspace—the operation, few companies know much if anything about how branded offerings and providers that the customer trusts. customers transit the customer-brand lifecycle. VOC insights supercharge engagement, correlating pain With its origin in total quality management and Six points and branded offerings, as well as revealing what’s Sigma, pioneering firms have undertaken some form of a broken, suboptimal, or missing in the customer-provider voice-of-customer (VOC) program, correlating perceptions of relationship (not just in the offered product or service). quality (largely defects of a product or unsettling experiences This supports the claim that mastery of the engagement among serviced clients). cycle starts with customer voices. Advances in technology now enable most firms to create low cost, very effective VOC programs. The figure below depicts the basic elements of a typical VOC system. Foremost among the system elements lies a voice- of-customers database, containing processed verbatim transcripts of interviews and a summarization of key findings and trends in a dashboard. A UTO M A T E D C L A S S I F I C A T I ON A N D S U M M A R I E S O F TR A N S C R I B E D I NT E R V I E W S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) VoiceofCustomer.A.1.6c © 2009 GISTICS Incorporated, All rights reserved. Personal Recorded Journey-of- Transcription Text Mining and Invitations or Telephone the-Customer Content Classification Introductions Interview Interviews Production • Salesperson • Contact(s) • Initial issues and problems • 3,000 to 7,000 word • Semantic tagging • Customer service • Role • Root-cause insights transcript • Faceted taxonomies • Internal operations • Firm/household • Catalytic events • Annotated screenshots • Topic maps • Partners • Industry/custom • Functional requirements and graphics from library • Auto-summarization • Engagement preferenda • Solution research of sentiments and and criteria • User experience trends Content Uses and Applications Dashboard • Corporate reputation • Engagement scorecards • Insights and innovations • Website testimonials • Content optimization • Issues and flashpoints Voice-of-customer • Case studies • Search engine marketing • Keywords and phrases content analysis • Social marketing topics • Cause-effects: policies and brand touchpoints First-hand experiences of the customer journey to satisfaction clarify myriad issues optimization, and corporate governance. related to engagement, content development, search engine marketing, content ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 27
Orchestrating the What contributes to content planning, media plans Technologies and Processes of the optimization, product-offering mixes, and social networking for customer cohorts by Customer Engagement Cycle engagement lifecycle phase? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BEYOND CREATIVE GENIUS Media-mix optimizations use the outputs of several EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved analytic disciplines to prioritize placement of ads and Content planning develops complex recipes and formulas promotions in print, broadcast, online, and physical point- that guide creative, media, and technical staff and partners of-purchase media, specifying for the creative team which in the ideation, creation, and production of customer engagement touchpoints it must “light up” with suitable engagement objects (creative content). content. Beyond the traditional media planning activities of The figure below depicts five important dimensions agencies, media-mix optimization incorporates sponsoring of the content planning phase of the engagement (event, promotions), guerilla marketing (street teams, viral cycle, emphasizing the now huge demands on staff and videos), social marketing (blogging, web posts, discussion infrastructure for near-continuous communication, groups), and social networking (brandstands in Facebook and interaction, and collaboration among hundreds of MySpace). contributors. Product-mix optimizations define the best configurations Customer cohorts coalesce psychographic, demographic, of products to promote into a consumption context (food and economic data into meaningful profiles and attainable and condiments of home-prepared lunches), harmonizing market segments. An important, share-determining the messaging of multiple (corporate and partner) brands customer cohort comprises “wired, digitally engaged and categories. Product-mix optimizations help increase consumers” who use a burgeoning array of Web-enabled “share of wallet” among customers, barriers to entry for tools and services to enhance their experience of living, competitors, and levels of acceptance of new sibling brands working, and playing. As a share-determining sector, this in a cross-promoted bundle. Driven by hard-data analytics relatively small group of consumers will not only continue and predictive models of increased sales and profit, product- to grow, but this sector will also determine shares of market mix optimizations often provide the critical stepping stone for all manner of brands tomorrow. of cross-brand engagement among otherwise competitive, if Engagement lifecycle stage optimizations help the not warring, siblings of a large portfolio of brands. creative team focus on three intersections of consumption: Social-network optimization entails the newest and more first, the consumer’s stage of life (single, just married experimental dimension of content planning. As recent without kids, married with toddlers, old married couple, research reveals, most digitally engaged consumers frequent etc.); second, the consumer’s status with a customer only 12 or so destinations on a regular basis. Social-network engagement lifecycle (awareness, interest, consideration, optimization specifies what types of content, experiences, trial, etc.); third, the consumer’s pattern of engagement (site and services make the best fit for each of those 12 or so visits, duration of visits, email opens and click-throughs, largely social Web destinations; this includes how to publish opt-ins, subscriptions, etc.). or provision engaging content and services into these sites, creating link-backs to microsites optimized for customer cohorts and the engagement lifecycle needs. P L A NN I N G C ONT E NT F OR E N G A G E M E NT C Y C L E S E NT A I L S UN P A R A LL E L E D L E V E L S O F C OLL A BOR A T I ON A M ON G S T A F F A N D P A RTN E R S Content Planning • Customer cohorts 1 2 BRANDSPACE Visitor Creative Reaction • Unnamed Content — Psycho demographic profiles of lifestyles, mindstyles, and consumption • Named in Context — Based on attitudinal, behavioral, and economic data Circles of Trust • Engagement lifecycle stage optimization 7 3 Customerized Behavioral Reaction — Information and media preference by type of customer relationship Content Data Engagement — Addresses intensity and directionality of engagement Cycle • Media-mix optimization 6 4 — Allocations of print ad, collateral, broadcast, interactive, in-store Phases Content Multichannel Optimization or Behavioral Analytic Data media buys by customer cohort, season, and sales coverage Individualization Insights — Includes social media and controlled content of Web sites and microsites 5 • Product-mix optimization Content CONTENT Planning VOICE-OF-CUSTOMER CREATION CONTENT ANALYSIS — Targeted cross-selling and special bundles for capturing larger share of wallets among specified customer segments — Uses ‘right to win’ matrix of desirable customers • Social-network optimization — Emphasize significant new investments in social media, Content planning for the engagement cycle incorporates sponsoring, online video sharing, and life-episode microsites all available insights about customers and their point in a — Increasing use of certified advocates in word-of-mouth programs customer engagement lifecycle. EngagementCycle5-ContentPlanning.A.1.1 ©2009 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 28 GISTICS executive white paper
Orchestrating the How do engagement planners optimize content, using a content Technologies and Processes of the customerization framework with customer preferences and consumption scenarios? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... CONTENT CUSTOMERIZATION Customer engagement lifecycle (discussed elsewhere in EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved this paper) defines the stage to which engagement planners Content optimization engineers create work products for optimize their creative content: awareness, consideration, automated publishing processes and their targeted delivery trial, purchase, commitment, etc. to customer cohorts and individual customers. Consumption in the context of content optimization This entails more than just making it look nice or easy to encompasses all the major tangibles and intangibles of find. Content optimization requires a new or enhanced set the buying, using, and disposal experience of consumers. of systems, processes, and accountabilities, as well as the Consumption includes media, information, and on-demand use of an explicit content optimization framework. services, as well as a product or service, its packaging, The optimization of content for customer engagement storage and retrieval, and recycling, re-gifting, or resale on extends well beyond current practices of content an auction site—all branding events that contribute to (or optimization: search engine optimization, faceted search, diminish) the experience of the brand. and tag clouds. Customer database (DB) masters comprise the singular, The figure below depicts a preliminary, evolving enriched data set of one customer relationship. This framework that will suggest “next practices” of content master record may syndicate data from a variety of sources, optimization. including ERP and other systems of record in the enterprise, Engagement preferenda define the types of information, CRM and analytic databases, and external compiled data interactions, and experiences (stories) that self-directed services (credit reporting and market service providers), as customers specify (using special user-content subscription well as social networking pages (Facebook, LinkedIn, Plaxo, forms) or engagement planners infer from behavioral data. Blogger, WordPress, etc.). Engagement preferenda also specify what types of criteria Patterns of engagement specify predicted customer planners must satisfy, assigning probabilities of success in behaviors, the probability of engagement, and event triggers using any of the seven “persuasion” resources (as suggested prompting next-step actions. below—engagement criteria). Consumption cohorts then represent profiles using Basis of conversation defines the themes, rationales, and psychographic, demographic, and economic data. discussion points to highlight or promote, emphasizing the Stakeholder roles enable engagement planners to path of least resistance in how to enter into the broader optimize content to the institutional role of a consuming “conversations of the market.” individual; this might include their role as a contractor, Product-mix optimizations specify the best configurations supplier, member of an employee’s family, investor, press, of products to promote into a consumption context, influential blogger, or financial analyst. addressing a particular consumption cohort, buying patterns, Long-term business value enables engagement planners engagement criteria, and phase of a customer lifecycle. to optimize content to a predicted long-term revenue stream and the nuanced but powerful aspects of a relationship. content optimization requires an explicit framework with policies and benchmarks 1 2 Knowledge Engagement BRANDSPACE Creative Reaction Visitor Work Criteria • Unnamed Content - Information • Named in Context - Reason Circles of Trust - Interactions- Research ENGAGEMENT - Experiences - Resonance PREFERENDA 7 3 Customerized Behavioral Reaction Media Formats - Polymorphic Content Data Content - Digital explanations - Incentives Engagement Customerization - Electronic Framework - Physical - Real-world events Cycle 6 4 - Polarized Phases Content Multichannel Stakeholder Behavioral Pa resistance Optimization or Analytic on Roles Data tt Individualization Insights ati ern ers so Engagement nv fE 5 - ROI: Return on investment Co CUSTOMER ng Content - RIOT: Returned investment of CONTENT a Planning VOICE-OF-CUSTOMER DB gem sis of time CREATION CONTENT ANALYSIS MASTER Ba ent Consumption Long-term Cohort Business Value OFFERING-MIX Customer Engagement Lifecycle CONSUMPTION Customerization links a customer database (DB) master with OPTIMIZATION CustomerEngagementObjectFrame.A.1.3 ©2009 GISTICS Incorporated, All rights reserved. stated, or implied preferences for engagement as well as systems for benchmarking. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 29
Orchestrating the What elements comprise customerized content, defining the Technologies and Processes of the properties of customer engagement objects? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... NEW ASSET CLASS CUSTOMER ENGAGEMENT OBJECTS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Generally accepted accounting practices (GAAP) recognize Engagement objectives represent explicit goals and digital assets as a distinct asset class of corporate balance measurements, defining what engagement planners intend to sheets, permitting owners of properly managed digital files elicit from a particular customer or consumption cohort. to capitalize the expenses associated with the creation and Content metadata describes a unique piece of media, maintenance of their digital assets. information, or composition (comprised of multiple media GAAP requires the satisfaction of three basic criteria: and information objects)—data that describes the data • Full and accurate accounting of the costs to create and contained in the media or information component. maintain a digital file over its useful lifespan Learning activities correspond to a unique stage of the • Direct correlation of the asset to identifiable revenue customer engagement lifecycle (trial, purchase, commitment, events or cost savings etc.), defining a unit of cognitive work—successful • Documented reuse of the assets extending beyond 18 completion of a task such as downloading a coupon. months Engagement content represents the published or publishable material: Web page, coupon, POP signage— Satisfaction of these accounting requirements entails the creative content within a particular context such as a store. development and execution of a digital asset management Engagement episodes entail the user interactions within system and, in particular, metadata, policies, and asset-user an engagement theater that produce behavioral data and activity analysis. subsequent inputs to the multichannel analytics practice. Catalog houses such as Cabelas capitalize the cost of Attainment milestones define a new skill or customer database records. understanding that the customer developed while engaged Stock photo and music libraries such as Getty Images with the brand or partner, defining a skill-attainment and Corbis capitalize the cost of acquisition, cataloging, and roadmap that satisfied and recommending customers possess maintenance of their digital stock, including the expenses as a precondition of their satisfaction or advocacy. associated with digitization, color correction (images), and Activity-based feedback requires the application application of metadata. of activity-based accounting principles to patterns of Software developers such as IBM and Microsoft capitalize engagement, correlating behavioral data to engagement the creation and maintenance of their software code, putting objectives and a learning activity. billions of dollars on their corporate books. User guidance and multimedia vocabularies and syntax The figure below depicts a framework for applying GAAP entail supplemental engagement content, including principles to customer engagement objects, enabling firms to screencast video explanations of how to engage and user capitalize the sizable, ongoing expenses associated with the interface items, respectively. customer engagement lifecycle (awareness, consideration, Formats, search, and use cases entail additional content trial, etc.). metadata, data policies, and publishing templates. C U S TO M E R E N G A G E M E NT OB J E C T S C ON S T I TU t E A N E W asse t o n C OR P OR A T E B A L A N C E S H E E T S US T O M E R I Z AT I O N F R TC AM EN GAGEM ENT PREFEREN DA EW T EN OR C ON K 1 2 BRANDSPACE ENGAGEMENT Visitor Creative Reaction Content OBJECTIVE • Unnamed • Named in Context Circles of Trust Customer 7 3 Customerized Behavioral Reaction User Content Data Ac Engagement s Engagement Guidance ER stic tivi gno ty- Cycle ER DB MAST Object bas CONSUMPTION Dia 6 Phases 4 Content Multichannel ed Behavioral nt Optimization or Analytic ENGAGEMENT Data Fee me Individualization Insights CONTENT ain db ack Att 5 OM Formats, Multimedia Content Search, Vocabularies CONTENT Planning VOICE-OF-CUSTOMER CUST and and Syntax CREATION CONTENT ANALYSIS Use Cases CONTENT LEARNING METADATA Engagement Episodes ACTIVITY EngagementCycle-7CustomerizedContent.A.1.6 ©2009 GISTICS Incorporated, All rights reserved. Firms may capitalize the costs of creating and maintaining customerized content, using generally accepted accounting practices (GAAP) to manage the customer engagement OFF N objects as financial assets. ERING ATIO -M IX OPTIMIZ ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 30 GISTICS executive white paper
Orchestrating the What technologies provide the foundation for mastering the Technologies and Processes of the engagement cycle? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... OPERATIONAL SUPPORT PLATFORM INTEGRATION OF LOOSELY COUPLED SYSTEMS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Integration of the marketing operation starts with the Automation and, thus, faster cycle times and higher quality assumption that all firms must find and serve customers, of the engagement cycle require more than technology. engaging their customers throughout the process of Automation requires a technical integration architecture, discovering, considering, buying, using, and disposing of adherence to open technical and process standards, and a branded products (or terminating branded services). governance protocol. In practical terms, managing the customer brand lifecycle A technical integration architecture represents a through each of these phases will require new or improved comprehensive high-level visual depiction of all the digital systems, new or reengineered processes, and newly defined process components or Web services that a marketing or clarified accountabilities among management, staff, operation currently uses, plans to use, and might use consultants, and trade partners (ad agencies, suppliers, etc.). over the next five years. Action point: Commission an The figure below depicts four multielement systems accomplished digital business architect (former CIO) to that provide the foundation for managing the engagement develop a CIO blueprint of your firm and its external cycle—each system represents a subject that we examine business ecosystems. Hint: Don’t tell your current CIO elsewhere in this paper and related sites. until you have completed your own blueprint! Content Management comprises its own value chain, Do, however, understand and maintain adherence to the consisting of Web content manager(s), text mining engines, IT service management standards and governance protocols source-content XML repositories, multimedia editorial of your organization; deviate only at great peril. production systems, multimedia DAM repositories, and collaboration workspaces. Multichannel Analytics combine traditional database analytics with Web analytics, voice-of-customer insights, and social media analytics, correlating hard-data insights with customer lifecycle profiles and profit models. Creative and Messaging Collaboration Platform M A S T E RY O F E N G A G E M E NT C Y C L E S E NT A I Ls T E C HNOLO G Y I NT E G R A T I ON defines the principal work of engagement planners and managers, including 1 2 BRANDSPACE creative services and Creative Reaction on-demand software-as-a- Visitor • Unnamed Content service applications from • Named in Context trusted partners: ad agencies, Circles of Trust marketing service providers, promotional engagement systems, etc. Message Execution VISIONING A Platforms incorporate all the PRO XECUTION ND 7 3 functions of high-capacity Customerized E Behavioral newsletter and messaging Content Data platforms, as well as dynamic MU NALYT EL LTIMODAL AG ENT or on-the-fly personalization A MU NTENT LTICHANN of newsletters, rich- CO EM media emails, immersive CUSTOMER ENGAGEMENT 6 4 multimedia buying Content OBJECTS Multichannel environments, dynamic ICS Optimization or Analytic AN configuration and pricing, Individualization Insights M and personal just-in-time, just-for-me landing pages and engagement theaters. CR D EATIVE AN MESS ING AG Four multi element systems drive 5 the engagement cycle, demanding CONTENT Content that engagement directors and CREATION Planning VOICE-OF-CUSTOMER planners use a proven technology CONTENT ANALYSIS integration framework, standards, EngagementCycleTechnologies.A.1.5 and governance. ©2009 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 31
Orchestrating the What defines an operational capability? Technologies and Processes of the
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Orchestrating the Technologies and Processes of the Customer Engagement Cycle

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Orchestrating the Technologies and Processes of the Customer Engagement Cycle

  • 1. ............ ........... ...... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................... Executive White Paper Orchestrating the Technologies and Processes of the Customer Engagement Cycle Strategic roadmap for integrating traditional and online marketing and customer service with multichannel analytics, multimodal content, and analysis-driven email messaging Featured technologies of the Engagement Cycle • Customer engagement theaters: Integration of online marketing with database marketing, email messaging platforms, social media, and field- marketing systems • Multichannel analytics: Convergence of web, database, and social media analytics • Analysis-driven messaging: Applying database analytics, segmentation insights, and individual- ization profiles to personalize email messaging • Creative messaging and collaboration plat- forms: Strategic role of engagement agencies, dialog maps, and multichannel / multi-party creative briefs • Social Web content management: Integration of social tagging and user-generated content with marketing content and personalization services • Marketing operations management: Collab- orative workflows, project management, and marketing process orchestration ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
  • 2. Who helped produce this white paper? Who is GISTICS? Orchestrating the Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... AUTHOR THINK TANK FOR EARLY-STAGE MARKETS Michael Moon President, CEO GISTICS constitutes a think tank that speeds the GISTICS drives the emergence of shared vocabularies, GISTICS Incorporated adoption of new technology and disruptive innovations the adoption of effective problem-determination methods, moon@gistics.com among enterprises and consumers. Founded in 1987, and the development of unassailable investment analyses GISTICS Incorporated minimizes the risk of potential that justify purchases of new technologies or disruptive DESIGN, LAYOUT, EDITING, buyers through the following: innovations. PRODUCTION • Interviews with successful early adopters of new GISTICS attracts early adopters and pace setting LIANNE MUELLER technologies solutioneers, demonstrating how they can use new Art Director • Definition of the critical success patterns of technologies or disruptive innovations to make money by Fly Design Media successful early adopters lianne@flydesignmedia.com delivering new complex, integrated solutions to enterprise • Activity-based analyses of adoption benefits on or consumer clients. iris alroy supply chains, workflows, and user activities GISTICS develops breakthrough market-making Production Artist GISTICS Incorporated • Visual explanations of how new technologies strategies for vendors of new technologies or disruptive research@gistics.com produce economic value innovations, using industry thought leadership, executive • Investment analyses that justify the purchase of white papers, Webcasts, specialized Web sites, and a Kathleen McFadden kmcfadden@writetools.com new technical systems global trust network of advanced project managers within • Project roadmaps that break down large-scale large enterprises, independent consultants, and small organizational changes into smaller two-week to master-class solution providers. two-month projects • Practitioner portals that clarify the next steps in rapid deployment and payback • Certified consultants that provide essential skills and resources G is t ics h e l ps e n d - u se fi r ms h a r n ess n ew t ec h n o l o gies a n d dis r u p t ive i n n o va t i o n s MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models V a l u e - C r e a t i o n P r o c e s s Offer—market Demand Sales Satisfaction Strategic development creation conversion fulfillment development gist ’jist n -s [AF, it lies (said of a legal action), fr. MF, 3d pers. sing. pres. indic. of gesir to lie, fr. L jacére to lie, fr. jacere Concept Market Primary Market Aftermarket to throw — more at jet (to spout)] 1: the ground or foundation of a legal action without which it would not be sustain- able 2: the main point or material part (as of a question or debate) : the pith of a matter : essence (the ~ of a question) Market-making Scenarios <the ~ of all that can be said upon the matter—R. L. Stevenson> T1 Market-making scenario 1 —Webster’s Third New International Dictionary Unabridged C o l l a b o r a t i v e S o l u t i o n e e r i n g GISTICS Incorporated 4171 Piedmont Avenue, Suite 210 T2 Market-making scenario 2 Cycle time gain Oakland CA 94611 USA www.gistics.com Necessary Conditions Strategic Value +1.510.450.9999 tel +1.510.450.0954 fax • Rationalized market and definitive • Leadership positioning in the market business case • Advantaged category definitions ©2009 GISTICS Incorporated. All rights • Differentiated value propositions • Growing perception as the dominant reserved. Printed in the U.S.A. • Completed satisfaction-fulfillment “gorilla” methodologies • New “green field” markets and GISTICS and its agents have used their best efforts in collecting and prepar- • Testimonials of early adopters revenue streams ing information published in this white • Network of certified consulting • Loyalty lock-ins of category-defining paper Orchestrating the Technologies and solutioneers marquee accounts Processes of the Customer Engagement • Thought-leadership Web destination Cycle. GISTICS does not assume, and hereby dis- MarketMakingScenarios.A.1.4 © 2007 GISTICS All rights reserved. claims, any liability for any loss or dam- age caused by errors and omissions in GISTICS reduces the organizational and market barriers to the adoption of new technologies or disruptive innovations, this white paper, whether such errors or publishing a variety of papers, presentations, and Web sites that explain how to realize the economic and social value of new such omissions resulted from negligence, accident, or other causes. technologies or disruptive innovations in a variety of organizations. .................................................................................................................................................................................................................................................................................................................................................................................................................................................. ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 2 GISTICS executive white paper
  • 3. Orchestrating the Technologies and Processes of the Customer Engagement Cycle Strategic roadmap for integrating traditional and online marketing and customer service with multichannel analytics, multimodal content, and analysis-driven email messaging PAGE CONTENTS//SECTIONS 4 Who helped produce this white paper? 5 Innovation and Investment in Marketing 11 Customer Engagement Defined 21 Operational Capabilities of Customer Engagement 39 Customer Engagement Partners and Practices 49 Innovation Leadership 55 About GISTICS ABSTRACT This executive white paper demonstrates how game-changing innovators orchestrate technologies and processes of the customer engagement cycle to increase sales, levels of customer loyalty and account retention, and share of wallet in selected consumption cohorts. Unlike most white papers, this executive white paper visually depicts the essential concepts and technologies for the non-technical executive and operation manager, presenting a collaborative framework for discussion, argument, and investment decision-making.
  • 4. Orchestrating the Who helped produce this white paper? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... GISTICS acknowledges the following individuals and their organizations for help making this paper possible. EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved In most cases, Michael Moon of GISTICS conducted a one-hour interview. STRATEGIC MARKETING Anand Narayanan, Director, TCS AMERICA Anssi Vanjoki, CMO, NOKIA (Finland) John Dubrawski, Business Development, TCS AMERICA Frans Cornelius, CMO, RANDSTAD HOLDING (NL) Gunar Pinikus, Product Manager, ADOBE Jason McNamara, CEO, ST. CROIX IP Jim Cuff, VP, IRON MOUNTAIN Jeff Martin, CEO, TRIBAL BRANDS Robert Yamashita, Principal, COGENTIC Terry White, Chief Innovation Officer, AMWAY (Japan) Shah Karim, CEO, INTEGRATED SOFTWARE Viveka Leskell, VP, New Media, FORTUM (Sweden) Scott Pellicone, VP, Business, QUEBECOR Vincent di Paolo, CEO, MOKSA ENGAGEMENT CYCLE DEFINITION Bob Barker, VP, Corporate Marketing, ALTERIAN TECHNOLOGIES OF THE ENGAGEMENT CYCLE: Michael Fisher, VP, North American Operations, ALTERIAN MULTI-CHANNEL ANALYTICS Mike Talbot, CTO, ALTERIAN Andrew Gregory, Director, ONSTREAM MEDIA Bob Kennedy, Sales Director, TEALEAF TECHNOLOGIES CUSTOMER ENGAGEMENT Trae Clevenger, VP, Analytics, TARGETBASE Matthew Eccles, Consultant Mike Beckerle, CTO, OCO SYSTEMS Sharad Verma, Managing Director, DIGITAL CEMENT John Hingley, CEO, ANDIAMO SYSTEMS MARKETING OPERATIONS MESSAGING EXECUTION AND PROVISIONING Beth Wiesner and Shawn Mielke, Partners, MTS Bob Hale, VP, Product Management, ALTERIAN BJ Gray, MRM Specialist, VICTORIA’s SECRET Joe Stanhope, VP, Product Management, ALTERIAN Gary Katz, CEO, MARKETING OPERATIONS PARTNERS Laura Patterson, VISION EDGE CONSULTING Multimodal WEB CONTENT MANAGEMENT Mary Yurkovic, DAM Manager, PLAYBOY ENTERPRISES Ian Truscott, VP, WCM, ALTERIAN Subhankar Bhattacharya, Principal, HCL (India) Bob Nuelle, Director, Technical Services, ONSTREAM Jon Fox, CEO, GROUP SMARTS SALES OPERATIONS Charlie Caldwell, CEO, NEXT QUARTER PROCESS ORCHESTRATION Bruce Froelich, CEO, INFORMETRON Bailey Caldwell, VP, PAXONIX Inna Proshkina, VP, INVISIBLE CRM Gary Brooks, Director, ALTERIAN Robert Markham, Chief Strategy Office, nTARA Eric Hoffert, CEO, SHAREMETHODS Neil Owen, COO, nTARA Ismael Ghalimi, CEO, INTALIO Jeff Morris, CTO, nTARA Edward Sulivan, CEO, ARIA SYSTEMS Mike Beckerle, CTO, OCO SYSTEMS ORGANIZATIONAL TRANSFORMATION Raju Vegesba, Evangelist, ZOHO Dennis Pannuto, CEO, AHA! INSIGHT TECHNOLOGIES Frank van Olst, Practice Lead, NYKAMP-NYBOER (NL) SOCIAL MARKETING Gary Hare, Dean, School of Media Psychology, FIELDING INSTITUTE Igor Beuker, CEO, SOCIALMEDIA8 Hanna-Maija Nyberg, Practice Lead, TALENT PARTNERS Rudy Thurston, COO, OMNIFUSE Skiff Wager, CEO, SEW CONSULTING Daniel Coffeen, CEO, ART AND CULTURE Tom Marine, Director, CENTRAL RESTAURANTS Henry Hon, CEO, VYEW Mat Atkinson, CEO, PROOFHQ GLOBAL MARKETING SUPPLY-CHAIn MANAGEMENT Bob Goldstein, CEO, APEER Alexandre Hadade, Partner, ARIZONA (Brazil) Sri Chilukuri, CEO, CONTENT CIRCLES Allan Linden, GLOBAL MARKETING CONSULTANT Julia Grinham, VP, Marketing, COGENZ (UK) Nic Lund, Programme Manager, DIAGEO (UK) Geert Wirtjes, CEO, GYPE LTD (NL) DIGITAL ASSET MANAGEMENT Jan Jacob Koomen, Director, ADNOVATE (NL) Aaron Holm, CTO, INDUSTRIAL COLOR Kevin Freedman, MD, FREEDMAN INTERNATIONAL (UK) Allan Adler, VP, UBISOFT Matthew Gonnering, VP, Marketing, WIDEN ENTERPRISES Bill Sheeran, CTO, CLEARSTORY Rens Pel, VP, Marketing Operations, PHILIPS(NL) Chris Glynne, CEO, BOLD VISIONS David Diamond, Director, Publications, CANTO CONTENT SUPPLY-CHAIN MANAGEMENT James Kober, VP, Advertising Operations, NEWSDAY Abby de Millo, Sr. Dir. Content Management Technology, Linda Berman, CEO, LJ BERMAN ASSOCIATES MCGRAW-HILL BUSINESS INFORMATION GROUP Russ Littleson, MEDIA EQUATION (AU) Andrew Salop, CEO, METASEED.net Rick McManus, Director, NINTENDO AMERICA Bill Rosenblatt, CEO, GIANT STEPS Ron Malloy, VP, General Manager, KODAK Carl Hixon, VP, DAM, MCGRAW-HILL EDUCATION Sam Moore, Director, N-GEN STUDIOS David Bercovici, VP, HATCHETTE BOOK GROUP Seth Earley, CEO, EARLY ASSOCIATES Doug Liles, SGS INTERNATIONAL Steve Sauder, CTO, NORTH PLAINS Sandeep Malhotra, Principal, Vertical Solutions, HCL (India) Theresa Regli, Principal, CMS WATCH Edward Altman, Practice Director, HCL (US) Sherra Pierre-March, CEO, VISION INFORMATION TECHNOLOGY Shrikant Pathak, Practice Director, TCS MUMBAI ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 4 GISTICS executive white paper
  • 5. 5 In novat ion and Inv es t m ent in Marke t i n g What must guide all investments in new marketing technologies? How can new technologies provide competitive advantage, if not What single event within a marketing operation creates its most What operational strategies do many CMOs pursue to maximize GISTICS ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... What types of innovation create value? transparent demonstration of value? competitive advantages? market disruption? PAGE 6 7 8 9 10 ................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION I ................... SERIES//MANAGEMENT ADVISORY
  • 6. Orchestrating the What must guide all investments in new marketing Technologies and Processes of the technologies? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Customer Benefit The Web no longer comprises just another sales channel; EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved the application of channel strategy to the Web’s business In the now infamous remarks by Peter Drucker, “The ecosystem will annoy and disaffiliate the very firms that firm has no other purpose than to earn and keep the trust might otherwise contribute to the success of the firm with of customers; only two things add value: innovation and an effective business ecosystem strategy. marketing. All else is cost.” Of the many things associated with the digital revolution Satisfaction within Social Networks and now the social Web, one significant effect has begun to rock both large and small firms: a new class of customers Customers buy desired satisfactions that they expect from a now insists upon interacting with vendors via PC, mobile particular product or service. devices, kiosks, and other online systems. Time to satisfaction defines the key metric for the In turn, interactive self-service buyers and customers quality of innovation and effectiveness of marketing. demand that their preferred vendors, marketing operations Time to satisfaction constitutes the primary in particular, provision online services and self-service measurement of customer engagement. This enables applications. marketing and engagement planners to work backwards, This means that marketing and innovation—the two asking the question, “What can we do to reduce or eliminate value drivers identified by Drucker—have begun to merge, the forces hindering the satisfaction of ideal customers?” becoming indistinguishable and essentially fused into an Clearly, a valued innovation must satisfy customers. alloy of self-service customer satisfaction. However, today the social network of friends and colleagues The figure below depicts several implications of these of the customer plays a large and growing role in the remarks by Peter Drucker and their logical extensions. experience or perception of satisfaction among customers. Marketing and engagement planners must expand Innovation within Business Ecosystems their messaging to address the social networks that now Innovation represents an invention or new way of doing filter, process, and reinterpret brand offerings and value things that adds distinctive value to the customer’s propositions. experience. In practical terms, this means that marketing and Time to market defines the key metric for innovation; engagement planners must connect, inform, entertain, and getting more quickly to market with what customers enable sharing within small peer groups and social cliques, recognize and want creates more value for the vendor: sales. using multiple formats (print, broadcast, online), sensory However, something has changed. modalities (audio, visual, kinesthetic), and persuasion Today, time-to-market success reflects how well the firm strategies (data, story, demonstration, word of mouth, accesses the global resources of its business ecosystem: authoritative endorsement). individuals, internal groups, and other firms that add value As customer engagement addresses the social networks to innovation and to the marketing operations of a firm. affecting customer choice, marketing processes grow more complex and difficult to orchestrate without new operational capabilities that automation can provide. c o n s u me r b e n efi t s h o u l d d r ive a l l i n ves t me n t s i n n ew ma r k e t i n g t ec h n o l o g y Social Networks Time to Market Time to Satisfaction TTVMarketSatisfaction.1.0 © 2009 GISTICS All rights reserved. Business Ecosystem All new investments in marketing should benefit the consumer. Time to satisfaction with certainty and trust define the baseline of customer benefit. Little else matters in the eyes of the consumer. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 6 GISTICS executive white paper
  • 7. Orchestrating the What single event within a marketing operation creates its Technologies and Processes of the most transparent demonstration of value? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ECONOMIC EFFECT OF FASTER CYCLE TIME SHORTER PRODUCT LIFECYCLES LIMIT PROFITS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Most firms drive innovation to market, offering new The pace of innovation continues to accelerate across all products, formulations, and packaging, or new services, technical realms, giving large and small firms worldwide a enhancements, or configurations. In all but a few cases, real opportunity to develop new breakthrough products or these firms drive marketing communications to market by services and drive them to market. • Publishing printed ads, marketing collateral, and This quite simply means that competition will continue promotional materials to expand and intensify without a foreseeable end in sight. • Broadcasting electronic ad spots and infomercials The figure below depicts how faster time to market of • Provisioning digital content and interactive engagement new products or services can produce incremental profit and services to stationary PCs, mobile devices, and digital revenues, as well as reduce total development costs with kiosks or point-of-purchase displays the desirable result of capturing lost margin or profits. For more about how firms can use automation to speed As once noted by Peter Drucker, the expert on up their innovation processes, GISTICS offers the white management and business, “Only two things add value: paper entitled, The Impact of Enterprise Collaboration on innovation and marketing. All else is cost.” Productivity of Intangible Assets. To find the white paper, This rather pithy and sage remark calls attention to what visit www.gistics.com. aspects of innovation and marketing create value, as well as The figure below also depicts how faster time to market how firms can use automation to maximize those aspects of marketing communications helps maximize the value of that deliver the greatest value. bringing new products or services to potential customers. Simply put, most firms that sell products can maximize In the case of consumer electronics, durables, their profits by achieving two, often offsetting, goals: motorcycles, and other products with annual model • Sell goods or services with adequate, if not superior, releases, as well as packaged software with regular version profit margins, and updates, the number of product-selling days averages 240. • Sell higher unit volumes of these goods or services Any reduction in time to market of marketing collateral to Profit margins reflect selling the right mix of products retailers and dealers essentially creates additional selling or services at prices that buyers will pay. Seasonal factors, days. the comparative value of one firm’s offering to another’s In one instance uncovered by GISTICS, improved offering, and other factors will affect price sensitivity—what workflows of a marketing operation in a global consumer customers will pay. electronics firm reduced time to market of collateral by two Another dimension of cycle time economics relates weeks, producing a three percent sales increase—tens of to velocity or how much annual revenue a firm can earn millions of euros! for each dollar or euro it has invested in its assets and Key points: Faster cycle times increase revenues and operations—factories and people, respectively. competitiveness; speeding cycle times entails process Combined, margin and velocity become the most automation. important measurement to a M A J OR L A UN C H E S E X P O S E M A RK E T I N G TO C O M P A NY W I D E S C RUN I TY firm: return on investment—how $600,000 we measure the Incremental Profit from Faster Time to Market effectiveness of automation and EXPENSE AND MARGIN best practices. CycleTimePaysOff.1.8c ©2009 GISTICS Incorporated, All rights reserved. Lost Margin from Delayed Launch $300,000 Many things can Incremental Revenues Realized Margin contribute to a delayed from Faster launch. Inefficient process Launches workflows (especially for $0 reviews and approvals), as well as poor internal Additional Development Cost from Delay and external collaboration among creative partners and suppliers, often ($100,000) induce otherwise avoidable delays. 0 6 12 18 24 30 MONTHS ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 7
  • 8. Orchestrating the How can new technologies provide competitive advantage, Technologies and Processes of the if not market disruption? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved COMPETITVE ADVANTAGE MARKET DISRUPTION While the fundamentals of business remain unchanged Rapid, successive delivery of small, incremental innovations (finding and serving customers), the mode of doing business can add up to real competitive advantages and game- must now undergo significant, if not radical, change. changing market disruptions. This change accommodates two new factors: the rapidly The nature of innovation (intangible, tactical, strategic, growing number of innovation resources of a global business and transformational) calls attention to the need for a ecosystem and the inherent intelligence and level of product new operational capability: how to deconstruct a market- knowledge of customers and members of global social disrupting initiative into a set of 15-day or 45-day projects networks. and execute those projects against a master project roadmap The firms that can source and integrate innovation of 50 to 100 short-term projects. resources of a global business ecosystem will increase their Thus, truly integrated marketing means provisioning a competitive advantage. growing array of customer self-service applications. The firms that integrate new operational capabilities This type of integrated marketing will require a technical with customers’ needs and their social markets will achieve platform for adopting new innovations—contributions of a unfair competitive advantage. global business ecosystem. The firms that can drive newly sourced innovation to Ecosystem-integrated marketing will require a robust customers in days or weeks will disrupt the competitive engagement strategy and a C-level execution with skills and equilibrium of established and well-defended markets. temperament for orchestrating time-to-market and time-to- Mobilization of social networks drives market disruption. satisfaction cycle times of game-changing innovations. The figure to the right depicts three more important dimensions of innovation and marketing. Not all innovations represent the same amount of value. Some innovations may not create any discernible value in the eyes of customers, yet may support other highly valued innovations. Still yet other innovations, T I M E TO V A LU E O F I NNO V A T I ON A N D M A RK E T I N G S U S T A I Ns especially if marketed well, C O M P E T I T I V E A D V A NT A G E will become “game changers,” creating significant competitive FASTER advantages: customer demand. In rarer cases, well-marketed Market Days innovations cause market disruptions, forcing competitors to react with profit-destroying 15-Day Projects Disruption discounts or exit the market altogether. | Master Weeks Project Roadmap TIME TO VALUE MarketDisruptTimetoValue.A.1.6 © 2009 GISTICS All rights reserved. Competitive | Advantage 45-Day Mo nth s Projects | Year s Integrated marketing now requires leadership and systems for driving several SLOWER concurrent 15-day or 45-day projects, creating a cascade of tactical value-added capabilities that coalesce into strategic or transformation value and game-changing Intangible | Tactical | Strategic | Transformational market disruptions. LESSER VALUE GREATER ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 8 GISTICS executive white paper
  • 9. Orchestrating the What operational strategies do many CMOs pursue to Technologies and Processes of the maximize competitive advantages? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MARSHALING AVAILABLE RESOURCES Marketing’s operational capabilities enable the firm to EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved create and sustain competitive advantages in its selected Strategy constitutes a mechanism for directing available markets. This includes the creation of the following: resources to achieve maximum competitive strategy. • New markets and revenue streams Most chief marketing officers (CMOs) know that this mechanism comprises systems, processes, and • New customers of existing and new offerings accountabilities for directing the resources of a complex • Larger and more frequent orders from customers marketing operation. • Greater loyalty and acceptance of system lock-ins The figure below depicts key dimensions of strategy, • Higher barriers to market entry emphasizing how CMOs formulate strategy for an integrated Each business will emphasize one or more of these system where each element interacts and affects all other competitive advantages over others, reflecting economic elements of the system. conditions, corporate life cycles, etc. Brand integrity defines an operational capability of a One fact, however, remains constant: the demand to marketing operation: how marketing staff and partners change with little or no forewarning. create and execute marcom with clear brand values, This calls attention to two more critical capabilities: consistent expressions, and credible messages. Brand business agility and organizational change management. integrity succeeds when customers and other stakeholders Business agility describes the ability to reconfigure develop deep, resonant emotional connections with the processes and workflows within day or less. This brand and the brand’s community of users and advocates. capability requires an on-demand IT service management Strategic differentiation entails the translation of infrastructure and the technical capability to rapidly customer insights and buying criteria to marcom, integrate new services to the all important brand theaters eliciting desire for the offered product or service. Strategic of the firm. For many marketing operations, this means differentiation succeeds by achieving leadership in its securing needed application software “as a service.” market. Organizational change management describes the Market coverage describes the delivery of promotions and systems, processes, and accountabilities for facilitating marcom to all the key touchpoints with customers and trade the rapid deployment of new systems, processes, and partners, integrating digital online channels, traditional print accountabilities. In many respects, organizational change and broadcast channels with point of purchase promotions management will determine medium to long-term success and packaging. Market coverage succeeds with the in volatile markets punctuated by all manner of disruptive convergence of all marcom at points of purchase, creating an innovations and economic discontinuities. “echo effect” in the market. Marcom supply-chain orchestration describes the increasing levels of O P E R A T I ON A L E X C E LL E N C E TH A T UNLO C K S TH E V A LU E O F S TR A T E G Y process integration among industry partners, emphasizing more agile sourcing and procurement of creative service, marketing content, and CMOs production. Marcom supply-chain orchestration succeeds by producing USE SYSTEMS, PROCESSES, AND ACCOUNTABILITIES TO MARSHAL THESE RESOURCES OF A MARKETING OPERATION productivity dividends: new money for strategic spendings. BRAND STRATEGIC MARKET MARCOM DIGITAL BRAND INTEGRITY DIFFERENTIATION COVERAGE SUPPLY-CHAIN INTERACTION Digital brand interaction describes ORCHESTRATION the newest operational capability, • Brand-value clarity • Deep customer insights • Present at key buyer • End-to-end process and • Digital content and Web provisioning contextualized content • Brand-expression • Buyer’s recognition of a touchpoints workflow integration services management consistency desire or need • Online and offline • Strategic sourcing of system and interactive services to customers. • Leadership in market media integration with creative and production • Comprehensive multi- • Brand-message Successfully executed, this produces credibility category points of purchase • Consolidated item-detail modal search and • Synergies of multi-party, reporting of: metadata schema self-service satisfaction. -channel and -media: - Efficiency • On-demand digital ser- “echo effects” and viral - Effectiveness vices for self-directed word-of-mouth SUSTAINABLE COMPETITIVE ADVAN- - Business impact customers TAGES AND PRODUCE THESE EXTERNAL PERFORMANCE RESULTS Innovation and marketing create Emotional “Wow” and Commanding Greater Portion of Self-Serve value. Operational capabilities enable Connection Visceral Delight Position in Market Strategic Spending Satisfaction a firm to create innovation, drive new offerings to market, facilitate THUS ACHIEVING THESE SUSTAINABLE COMPETITIVE ADVANTAGES the buying and using process, and New markets New customers for Larger and more maintain infrastructure and systems and revenue existing and frequent orders Greater loyalty Barriers to enabling core operational capabilities. lock-ins Market streams new offerings from customers CMOMandates.B.2.9c ©2009 GISTICS. All rights reserved Most CMOs emphasize the development and optimization of operational capabilities of their marketing operation one of their foremost priorities. Accountability for driving innovation and change within their groups often represents the weakest link in achieving operational excellence. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 9
  • 10. Orchestrating the What types of innovation create value? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... FOUR TYPES OF INNOVATION INNOVATIONS FOR CUSTOMER ENGAGEMENT EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Strategic innovation brought to market increases the value Effective partnerships with customers will require numerous of the firm—share price—and its overall share of market innovations. In this paper, we introduce several innovations, capitalization within its sector. including Tactical innovation merely reduces costs or increases • Customer engagement cycle that defines the basic sales already in the pipeline. operational framework for marketing and an integration Thus, innovations vary a great deal, bringing greater or framework for new technology less value to their organizations or customers. • Voice-of-customer content analytics that summarize The figure below depicts the four basic categories of levels of engagement and shifts in sentiment among strategic innovation: various customer segments • Business model innovations bring new satisfactions to • Centers of excellence in the marketing supply chain: viral market or give the innovating firm new ways to capture video agencies, user-generated video and communication value. Typically, these innovators disrupt underserved operations, and customer portfolio management firms markets by leveraging new technology. • Content customerization that depicts the fusion of a • Product innovations tend to grow existing markets, using customer database master, engagement preferenda of an industrial design and brilliant packaging to create highly individual customer or consumption cohort, offering-mix differentiated offerings. When coupled with a business optimization of the particular products and services to model innovation, product innovation creates a wealth- present next to the engaged customer, and consumption creating synergy such as the iPod and iPhone. criteria for a return on investment (RIO) or a returned • Process innovations optimize known systems and investment of time (RIOT) procedural workflows, reducing waste, cost, and time, • Customer engagement object that enables the predictive using management process-control frameworks such as modeling of long-term customer value as well as the Lean Six Sigma, ITIL, and CoBIT. When coupled with long-term cost to serve, including the cost of creating and product innovation, process innovations deliver price provisioning content, services, and brand touchpoints leadership and substantial barriers to market entry by • Information maturities that correlate five levels of competitors. marketing information to six operational capabilities • Social innovations change some elements of how we of integrated marketing—monitor, listen, message, live, work, or play. In today’s world, many of these contextualize, execute, and govern. innovations entail the rapid development of next • Process maturity model for four critical subsystems practices where small, dedicated groups of people produce of the engagement cycle: multichannel analytics, and consume small chunks of information and content multimodal content management, provisioning and that become social goods later enjoyed by large groups of execution, and marketing process orchestration. users as best practices. Many companies now pursue S YN E R G Y O F I NNO V A T I ON S Y I E L D S TH E G R E A T E S T R E TURN S innovation strategies across two or more of these four innovation categories, placing new demands for more rapid, error- free innovation-deployment processes— Process Innovations Product Innovations how firms drive their innovations to market. • Dell • Blackberries In all cases, innovation entails change • Toyota • iPods and the need to manage the change wrought by innovation. • Wal-Mart • ThinkPads Besides product or software innovation, most firms do not have a structured, repeatable process—an operational capability—for innovating new services, processes, or business models. This deficiency calls for the emergence of a next practice that we call innovation leadership. Social Innovations Business Model • LinkedIn Innovations • Wikipedia • Amazon • YouTube • eBay Driving innovations of customer engagement to market will • Netflix demand a new operational capability: innovation leadership and a masterclass team that we have dubbed an Innovation Services Group. Innovation.B.1.3 © 2009 GISTICS Incorporated. All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 10 GISTICS executive white paper
  • 11. ................... ................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION II C us t om er Engagem ent Def ined ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 12 What frames the first principle of customer engagement, emphasizing the slow transformation of customer relationships into co-innovating partnerships? 13 What can marketers learn from the dictionary definition of engage? 14 How do we define customer engagement? 15 What constitutes Wikipedia’s definition of customer engagement? 16 How does a marketing operation engage customers? 17 What technologies support customer engagement? 18 What comprise the operation capabilities of customer engagement, emphasizing an evolving set of systems, processes, and accountabilities? 19 What comprise the operational capabilities of customer engagement? 20 How do friend networks require marketers to engage with multimodal communications? SERIES//MANAGEMENT ADVISORY GISTICS 11
  • 12. Orchestrating the What frames the first principle of customer engagement, Technologies and Processes of the emphasizing the slow transformation of customer relationships into co-innovating Customer Engagement Cycle partnerships? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... MOVING BEYOND TRADITIONAL MARKETING process will also demand that sellers enter into a long- EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved term relationship with evolving customer needs. To paraphrase David Ogilvy, the legendary ad man, “The Engagement constitutes a two-way process and varies customer is not an idiot. She’s your wife! You have to live little from the process of maintaining a successful personal with her in relative joy and content for a very long time … relationship with a thriving spouse. or it will become very, very expensive.” Long-term, mutually satisfying relationships constitute THE SECRET OF MARKET MAKING the first principle of customer engagement, expanding Peter Drucker’s dictum: “A firm has no other purpose than to find Silicon Valley holds many secrets, none more vital to and keep customers.” customer engagement than the secret of creating stupendous The figure below depicts several implications of customer new wealth. engagement. What follows constitutes a succinct summary of the Most notably, many senior marketing executives have secret of Silicon Valley as related by Jeff Martin, visionary long forgotten or never understood marketing-making and founder of Tribal Brands: relationships. Other marketing executives understand the Huge new markets produce fortunes and shareholder primacy of marketing-making relationships; however, they wealth. lack the systems, processes, and accountabilities by which to Great companies create huge new markets. engage innovation collaborators and early adopters. Breakthrough, game-changing products drive great In both cases, these soon-to-be-retired marketing companies. executives obsess with finding ready buyers and persuading Brilliant engineering produces insanely great, these buyers to become consumers, abdicating or ignoring breakthrough, and game-changing products. the subsequent transformation phases of engagement. Incisive, cogent product requirements inspire brilliant Mastering the customer engagement cycle demands full engineering. engagement with the transformational process of creating Inspired insights about customers of a new, not-yet- wholly vested stakeholders in effective collaboration. formed market define incisive, cogent product requirements. Full engagement then entails a parallel transformation Unbending intent to improve the quality of life and serve of the organization into a trusted partner, an institutional a higher common good induces inspired insights about citizen, and a true engagement innovator. future customers. The mastery of customer engagement will not only Ultimately, the customer engagement revolution brings transform buyers into collaborators, but the transformational the secret of Silicon Valley to every innovator in the world. C U S TO M E R S E N G A G E M E NT D R I V E S TH E I NNO V A T I ON O F N E W P RO D U C T S A N D S E R V I C E S Innovators—Collaborators Market-makers—Early Adoptors TR AN SF Sellers—Buyers OR MA TIO NA L Producers—Consumers PRO CE SS Trusted Partners—Loyal Customers StakeholderEvolution.1.3 ©2009 GISTICS Incorporated. All rights reserved Institutional Citizens—Stakeholders Customer engagement constitutes an innovation strategy, calling attention to the into loyal customers and stakeholders—individuals and groups that can play a primacy of collaboration with loyal customers and stakeholders in the enterprise. pivotal role in the development of new business models, products, processes, and Successful engagement speeds the development of buyers and consumers social networks. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 12 GISTICS executive white paper
  • 13. Orchestrating the What can marketers learn from the dictionary definition of Technologies and Processes of the engage? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DEEP CULTURAL NARRATIVES DEFINITION OF ENGAGED EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Formal dictionary definitions of commonly used words Merriam Webster’s Tenth Collegiate Dictionary provides the often reveal deeper meanings and nuanced tonalities—facets following definition of the adjective, ENGAGED: that may convey additional if not unintended significances. 1: Involved in activity: OCCUPIED Merriam Webster’s Tenth Collegiate Dictionary 2: Pledged to be married: BETHROTHED provides the following definitions of engage, engaged, and 3: Greatly interested: COMMITTED engagement. 4: Involved special in a hostile encounter DEFINITION OF ENGAGE 5: Partly embedded in a wall (an engaged column) 6: Being in gear: MESH Derived from Medieval French, engagier, and the Old French elements of en + gage, the root element of ENGAGE DEFINITION OF ENGAGEMENT derives from token or gage. As a transitive verb, the definition of engage includes: Merriam Webster’s Tenth Collegiate Dictionary provides the 1: To offer (as one’s word) as security for a debt or cause following definition of the noun, ENGAGEMENT: 2: To a) entangle or entrap in (or as in a snare or bog); b) 1: a) An arrangement to meet or be present at a specific To attract and hold by influence of power; c) To interlock time and place (a dinner engagement) with: MESH; also to cause (mechanical parts) to mesh b) A job or period of employment, especially as a 3: To bind (as oneself) to do something; especially to performer binding by a pledge to marry 2: Something that engages: PLEDGE 4: a) To provide occupation for: INVOLVE (engage him in 3: a) The act of engaging: the state of being engaged a new project); b) to arrange to obtain the use or service of: b) Emotional involvement or commitment (Seesaws HIRE between obsessive engagement and ambiguous 5: a) To hold the attention of: ENGROSS (her work detachment) engages her completely); b) to induce to participate (engaged c: BETHROTHAL the shy boy in conversation) 4: The state of being in gear 6: a) To enter into contest with b) to bring together or 5: A hostile encounter between military forces interlock (weapons) 7: To deal with especially at length IMPLICATIONS FOR MARKETING As an intransitive verb, the definition of engage includes: The idea of engagement with customers and other 1: a) To pledge oneself: PROMISE; b) GUARANTEE (he stakeholders, including staff and shareholders, already engages for the honesty of his brother) exists in the language of commerce and marketing. 2: a) To begin and carry on an enterprise or activity However, the emerging use and definition of customer (engaged in trade for a number of years) b) to take part: engagement conveys these distinctions: PARTICIPATE (at college she engaged in gymnastics) • Customer engagement presumes a relationship that will 3: To enter into conflict persist over time 4: to come together and interlock (as machinery parts): • Relationship with customers begin first by attracting and be or become in gear. holding their attention • Engagement involves messaging (of tokens), communication (with emotional involvement), and interaction (over an extended period to time) • Engagement creates expectations for communication, interaction, and collaboration. t h e w o r d e n gage e n t ai l s seve r a l mea n i n gs ENGAGE means to Offer Entangle Mesh Bind Involve Engross Contest I give you I am ensnared I put the car My fiance and My client I find her work I challenge my word in the bush into first gear I will soon wed hired me most interesting you to a duel for a project EngageDefinition.1.0 ©2009 GISTICS, All rights reserved. The shared cultural norms and meaning of engage often lead to expectations among word, relationship. Customer engagement incorporates most if not all the cultural customers about the nature and manner of their being engaged with vendors; in a norms of a long-term relationship. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 13
  • 14. Orchestrating the How do we define customer engagement? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ENGAGEMENT MANTRA BRAND STORYTELLING EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customer engagement constitutes a philosophy of brand- Every brand tells a story about the process of discovering, marketing communications and customer interaction, considering, buying, and using a product or service. emphasizing greater levels of collaboration in pre-sales and More notably, the figure also calls attention to two post-sales phases among buyers and sellers. modes: corporate storytelling and advocate storytelling. The philosophy of customer engagement entails a Companies promote their products or services, inducing primary sequence for marketing communication and service or persuading consumers to buy. However, in most interaction: consumer societies, consumers instinctively discount or • Connect with the buyer or customer on an immediate, ignore promotional pitches that do not connect with them visceral level, evoking an experience of liking or disliking as a human being, as an individual, and as a collaborator. someone, a group, or a thing, as well as an empathetic A strong brand and effective engagement kick-starts the correspondence with a customer’s situation. second mode, advocate storytelling. • Inform the buyer or customer. Often this means demonstrating the need for a new product or a more SIMPLIFICATION OF BRAND STORIES effective or cheaper way of doing things as compared to Most research of effective word-of-mouth marketing, competitors; with success, this elicits the experience of viral marketing, and customer advocacy reveals the brand relief—a successful outcome or result of using a featured story and related value proposition often undergo a radical product or service. transformation: Advocates internalize the brand and, in the • Entertain the buyer, using humorous, horrific, or process of sharing it, make the brand and value proposition seductive social situations; this reinforces deeper simple—with brutal concision. cultural narratives (shared expectations or beliefs) while Brand simplification optimizes the brand for rapid, broad dissipating any lingering fears associated with trying diffusion in a larger market and culture. While the legal something new. Success in this context creates a secret team cringes, brand and marketing managers celebrate with or ironic insight that one must simply share with the a tag line (“Where’s the beef?” or “Got Milk?”) that hits a right person. deeper cultural narrative, or the corporate brand (“I’ll xerox • Share directs a call to action and encourages the buyer or it” or “Just google the word.”) becomes a transitive verb and customer to forward a link, instant message, or SMS to hallmark of productivity. a friend or colleague regarding a new find: “You want to Thus, customer engagement engages customers in a check this out!” The item shared represents a currency or token of affection; often, sharing an item enhances larger conversation and, in the process, rounds off the sharp one’s social standing or reputation. edges of shallow, inauthentic corporate “marketing speak”. The Engagement Sequence may apply to any phase of the Brand-marketing communication process: awareness, involvement, trial, commitment, and referral. The figure below not only depicts the five phases of a branded offering; the figure indicates that engagement- sequence activities contribute to the overall brand storytelling process, especially in advocate S UC C E S S F UL C US TO M E R ENGAGEMENT S ACT IVAT E ADV OCAT E S TORYT ELLING storytelling. THE BRAND STORYTELLING PROCESS Corporate Storytelling Advocate Storytelling PHASES OF BRAND-MARKETING COMMUNICATIONS Product offering AWARENESS INVOLVEMENT TRIAL COMMITMENT REFERRAL Interest Positioning Adoption Community in a category ENGAGEMENT SEQUENCE Connect Inform Entertain Share Brands tell stories; customer • Immediate • Category of • Social context • Portable engagement kick-starts word-of- • Visceral need or desire • Humorous, horrific, • Currency of mouth marketing and personal • “Like”/“don’t like” • Positioning or seductive affection referrals within social networks, • Belonging • Differentiated • Cultural narrative • Facet of self communities, and peerages • Relief • Cool • Reputation EngagementDefined.A.1.0 ©2009 GISTICS, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 14 GISTICS executive white paper
  • 15. Orchestrating the What constitutes Wikipedia’s definition of customer Technologies and Processes of the engagement? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BACKGROUND WORKING DEFINITION EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved According to the English-language version of Wikipedia Wikipedia offers the following definitions of online on 2 January 2009, edited here for concision, customer customer engagement: engagement refers to the engagement of customers with one A social phenomenon enabled by the wide adoption of another, with a company or a brand—either consumer- or the Internet, exploiting the technical developments in high- company-led using offline or online media. speed broadband, low-cost Internet-connected devices, and Unlike the marketing term, positioning, no single source digital media. defined customer engagement (CE). Discussed widely The behavior of customers that participate in online online and representing hundreds of published pages with lifestyle communities, directly or indirectly, associated reader comments, CE has become the topic of numerous product categories (cycling, sailing) and other consumption conferences, seminars and roundtables. topics; a socialization process that induces participants to Customer engagement presumes a longer term, more create positive association with sponsoring companies or strategic context with the assumption that simply user groups. maximizing for sales conversions can decrease the Marketing practices that create, stimulate or influence likelihood of repeat conversions. CE aims at long-term CE behavior. relationship, customer loyalty, and advocacy through word- Metrics that measure the effectiveness of the marketing of-mouth referrals and recommendations. practices which seek to create, stimulate or influence CE Customer engagement in online media differs behavior. from offline engagement: the nature of the customer’s interactions with a brand, company and other customers; INDUSTRY PROOF-POINTS discussion forums, social networking sites, blogs, and Amazon recently re-branded itself, using the slogan “Serving rankings enable people to communicate in ways not possible the world’s largest engaged online community.” in most offline media. The rise of online user generated The World Federation of Advertisers (WFA) offers a content now makes customer advocacy and antagonism a “Blueprint for Consumer-Centric Holistic Measurement.” common feature of most markets. The Association of National Advertisers (ANA), Customer Engagement enables organizations to more American Association of Advertising Agencies (AAAA) and effectively respond to the fundamental changes in customer the Advertising Research Foundation (ARF), now operate behavior brought about by the Internet. CE addresses an “Engagement Steering Committee” to define metrics for the need to offset the increasing ineffectiveness of the customer engagement. traditional ‘interrupt and repeat’, broadcast and print Nielsen Media Research, IAG Research and Simmons advertising approach. Research all pursue the development of a CE definition and Customer Engagement enables organizations to overcome metric. the following sources of increasing loss in market power: In March 2006, the Advertising Research Foundation • Fragmentation of media and audiences announced the first definition of customer engagement[4] • Greater specialization of media content the first definition of CE at the re:think! 52nd Annual ARF • Consumer expectation for variety and convenience Convention and Expo: “Engagement is turning on a prospect • Simultaneous multichannel media consumption by to a brand idea enhanced by the surrounding context.” consumers Some theorists and practitioner refer to customer • Instant messaging among peers while consuming media engagement as the stages through which consumers travel as they interact with a particular brand and developer deeper • Lower physical switching costs for most products and bonds of affection and reciprocity. services This Customer Engagement Cycle, or Customer Journey, • Widening of geographic market access has been described using a myriad of terms but most often • Lower reputation among some consumers of many consists of 5 different stages: Awareness, Consideration, corporations with non-sustainable offerings and offensive Inquiry, Purchase and Retention. policies Marketers employ Connection Strategy to speak to Customer Engagement seeks deeper and more frequent would-be customers at each stage, with media that addresses customer contributions as an important source of their particular needs and interests. competitive advantage: public endorsement of advertising When conducting Search Engine Marketing Search themes, user-generated product reviews, customer service Engine Optimization, or placing ads, marketers must FAQs, etc. devise media and/or keywords and phrases that encourage customer flow Customer Engagement Lifecycle towards Purchase. Because the various definitions often focus on entirely different aspects of CE, competing definitions often illuminate hidden or obscure aspects of CE. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 15
  • 16. Orchestrating the Technologies How does a marketing operation engage customers? and Processes of the Customer Engagement Cycle- DRAFT ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... OPERATIONAL CAPABILITIES DRIVING BRAND CONVERSION EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved All or most professional marketing executes a strategy for Brand Conversions of the model depicted below connote how best to find and serve customers. traditional phases of the marketing process, reinterpreting The ability to successfully execute strategy entails an two of the phases: facilitated buying and WOM agents. operational capability of marketing: systems, processes, and Facilitated buying connotes the increasing role of social accountabilities. networks, Web services, and self-directed buyers. The figure below depicts a subset of a marketing WOM agents connote the potentially explosive potential operation, highlighting the operational capabilities of of formal word-of-mouth (WOM) marketing programs and customer engagement—that we will define elsewhere in this the use of social agencies to find and deputize WOM agents. paper. The figure below also depicts a set of actors or resources that can speed the brand-conversion process—systems and WEB-CENTRIC VIEW technologies of the engagement cycle and the principal focus Customer engagement spans traditional “offline” of this paper. marketing media and channels as well as online and mobile counterparts. INTEGRATED MARKETING 2.0 However, customer engagement puts the Web and online, The nearly exhausted but still useful moniker, 2.0, conveys interactive customer at the center of the entire enterprise. an important facet of integrated marketing: The customer Identification of Web User denotes the five operational gets a say in what gets marketed to whom and how. states of a customer database and, therefore, the operational The bottom row in the figure below depicts a logical capability to engage a buyer or customers in optimal ways. next-step in customer-integrated marketing, suggesting that We will develop these largely self-evident definitions traditional print and broadcast advertising and promotion elsewhere in this paper and companion web site. now stand alongside new digital formats and services. The new term Customerized connotes a key operational principle of customer engagement cycle, correlating customer-provided preferences, product-mix optimizations, and dynamic publishing of content or provisioning of services. The term Certified connotes the formal registration of the customers in an advocacy or beta-test pilots association. C U S TO M E R E N G A G E M E NT R E Q U I R E S R E S OUR C E S A N D C A P A B I L I T I E S F RO M M ULT I P L E P A RT I E S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) Stages of the Customer Engagement Life Cycle Operational Capability Marketing Drivers of the Customer Engagement Life Cycle Advertising, Brand Sites, Personalized Content/Service Certified Advocates, KEY ACTORS DRIVING Direct Mail, Topical Microsites, Messaging, Mash-ups, Preference Viral Video Stash, BRAND CONVERSIONS Promotions, Social Media, Remixable/Social Managers, and Policy- Collaboration and AdWords, and Multichannel Content, and managed Processes Solutioneering SEM and SEO Marketing Analytics Webcast Theaters Platforms EngagementCapabilitiesModel.C.1.0 ©2009 GISTICS, All rights reserved. The figure above depicts six operational capabilities of customer engagement; marketing operations will secure from engagement partners—agencies, service each capability entails a set of systems, processes, and accountabilities that most providers, and specialist firms. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 16 GISTICS EXECUTIVE WHITE PAPER
  • 17. Orchestrating the What technologies support customer engagement? Technologies and Processes of the Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Operational Marketing In particular, many forward-thinking marketing EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved executives now realize that a combination of traditional The term operational marketing defines the comprehensive promotion and search engine marketing (SEM) has become integration of systems, databases, and processes of the more efficient: they need not spend as much money for customer-making process. awareness, activation, and lead generation. In all but small technical firms or clicks-only ecommerce Rather, the greater front-end efficiencies of what we firms, few medium or large enterprises have achieved a level call the Google effect now compel a greater investment of process integration—at least not yet. in the back-end efficiencies of sales conversion, customer However, with the Web, software innovation, burgeoning retention, satisfaction assurance, and advocacy. digital ecosystems, and larger portions of buyers and Operational marketing provides a framework for customers doing business online, the integration of the integrating the various front-end and back-end activities of customer-making process becomes more feasible for all the customer-making process, linking several previously firms with each passing day. isolated systems and processes to a unified or federal The figure below depicts several technical systems, governance scheme: crisp, clear roles, responsibilities, and calling attention to their role in pre-sales and post-sales daily progress-status reporting.. activities of the customer-making process. OPERATIONAL MARKETING EMPHASIZES INTEGRATION OF PRE-SALES AND POST-SALES ACTIVITIES STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) GREATER Affiliates and Certified Consultants VA L U E - A D D E D B Y C U S T O M E R L I F E C Y C L E S TA G E Customer Insights Voice of Customer PRE-S Contribution Customer Master L ES ALES SA T- Operational CRM S Broadcast and Display Ads Sales CRM PO Social Marketing Search Engine Marketing Social Media Monitoring Content Optimization E-Messaging Opt-in Offers Marketing Databases LESSER ENGAGEMENT CYCLE TECHNOLOGIES EngagementModelMOMTech.B.1.8 ©2009 GISTICS Incorporated, All rights reserved. The Web and a global digital ecosystem enable large and small organizations to responsibilities, and daily progress-status reporting of all staff and affiliates involved in integrate pre- and post-sales activities, using unified governance with clear roles, the customer-making process. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 17
  • 18. Orchestrating the Technologies What comprise the operation capabilities of customer and Processes of the Customer Engagement Cycle- engagement, emphasizing an evolving set of systems, processes, and DRAFT accountabilities? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... STRATEGY EXECUTION with deep cultural narratives of desire, aspiration, and EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved consumption. Marketing organizations execute market-making and Contextualization constitutes the hard work of adapting brand-building strategies, using systems, processes, and a brand and its value proposition into meaningful, easily accountabilities—what we call operational capabilities of conveyed experiences of Engagement: connect, inform, marketing. entertain, and share. The table below describes the six general operational Execution publishes marketing content and interactive capabilities that execution of customer engagement services across multiple channels and media formats, strategies requires. including the PC- and mobile-accessed Web, digital signage, Monitoring entails the collection of usable data about printed materials; execution also includes individualized customers, media consumption, and how the company and emails and self-configured Web pages. its competitors move particular customer segments from Governance of customer engagement applies the awareness, consideration, and trial to adoption, loyalty, and principles of industrial process management to customer advocacy. making, using normative models of excellence for successful Listening transforms these data with corresponding engagement: brand conversion rates, satisfaction, long- assumptions and analytic models into insights, projects, and term value of customer relationships, revenue per database opportunities. record. Dialog Maps use keywords, phrases, metaphors—how customers talk about a brand. Messaging often represents the work of creative and engagement partners—specialist firms that know how to associate a brand and the brand’s value proposition C U S TO M E R E N G A G E M E NT R E L I E S ON specific C A P A B I L I T I E S O F M A RK E T I N G O P E R A T I ON S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) O P E RAT IO N A L CA PAB IL IT I ES O F C U S T O M E R E N G A G E M E NT MONITOR (MNT) • Aggregate marketspace activities • Track patterns of engagement • Model business performance LISTEN (LST) • Re-calibrate listing tools • Classify themes, sentiment, etc. • Build dialog maps and frameworks MESSAGE (MSG) • Ideate themes, concepts, copy, etc. • Create engagement assets • Validata in private social networks CONTEXTUALIZE (CTX) • Retrieve data and components • Assemble engagement objects • Package for consumption EXECUTE (EXE) • Stage for quality assurance • Provision engagement objects • Manage exceptions GOVERN (GVN) • Measure efficiency and effectiveness • Monitor policies and deviations • Summarize activities and results Advertising, Brand Sites, Personalized Content/Service Certified Advocates, KEY ACTORS DRIVING Direct Mail, Topical Microsites, Messaging, Mash-ups, Preference Viral Video Stash, BRAND CONVERSIONS Promotions, Social Media, Remixable/Social Managers, and Policy- Collaboration and AdWords, and Multichannel Content, and managed Processes Solutioneering SEM and SEO Marketing Analytics Webcast Theaters Platforms EngagementCapabilitiesModel.B.1.1 ©2009 GISTICS, All rights reserved. The first column of the table above describes the six operational capabilities that to acquire and maintain an evolving set of systems, processes, and accountabilities. execution of most customer engagement strategies requires, emphasizing the need ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 18 GISTICS EXECUTIVE WHITE PAPER
  • 19. Orchestrating the What comprise the operational capabilities of customer Technologies and Processes of the engagement? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved SUBSET OF TRADITIONAL MARKETING OPERATIONS CAREER PATHS IN CUSTOMER ENGAGEMENT For many firms, the operational capabilities of customer The table below details many facets of customer engagement constitute a subset of marketing operations. engagement. Marketing operations may include branding, traditional Customer engagement requires a deep knowledge technical advertising development and placement, trade promotions, systems, development methodologies, and process packaging, sponsoring, publicity, and press relations. management—the new career opportunity. C U S TO M E R E N G A G E M E NT C ON S T I TUT E S A S UB S E T O F TR A D I T I ON A L M A RK E T I N G O P E R A T I ON S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) 1 MONITOR (MNT) Aggregation entails the “spidering,” summarization, or syndication of published material online; this includes syndicated research, social network pages, and the findings of social media monitoring. • Aggregate marketspace activities • Track patterns of engagement Tracking patterns of engagement uses all available data sources, including anonymous behavioral data • Model business performance that later enriches a named-user database record. Modeling the performance of business models uses XBRL data sources and correlates meaningful shifts in the shares of market capitalization, revenues, and profits among firms in an industry sector. 2 LISTEN (LST) Recalibration of listening tools (social media monitoring, semantic tagging, behavioral data model and collections, etc.) includes refining keyword taxonomies (for search, search engine optimization, ad word • Re-calibrate listing tools buys), survey questions and methods, and consumption cohorts and personas. • Classify themes, sentiment, etc. • Build dialog maps and frameworks Classification of themes, sentiments of customers and influencers, and use-case insights requires text- mining engines, faceted taxonomies, and data visualization and dashboard summarization technologies. Dialog maps define a customer’s lifecycle of experience, translating customer insights, key use-case concepts and concerns, and language to use into two- or three-way conversations; dialog maps also specify media-mix optimizations and product-mix optimizations. 3 MESSAGE (MSG) Ideation emphasizes concept development of themes, reasons to engage, and strategies and tactics for activating specific customer touchpoints and life-passage stages. • Ideate themes, concepts, copy, etc. • Create engagement assets Asset creation entails the development of reusable digital assets, the classification and tagging of each • Validate data in private social constituent element (photo, placed objects within the photo) of an engagement asset (catalog page, ad), networks and the placement of all digital assets in a special repository thus, making all assets available to all authorized users within a global marketing operation or marketing supply chain. Validation of engagement assets uses private social networks comprised of “friendlies,” brand advocates, and test panels to interact with the intended engagement and provide detailed comments. 4 CONTEXTUALIZE (CTX) Retrieving data and media components requires accessible asset repositories of accurate customer data, product information, media assets, and business rules and policies governing each asset. • Retrieve data and media components Assembly of customer engagement objects automates the routing, control, and proofing of printed • Assemble customer engagement collateral and ads, broadcast ads, online content, and interactive services. objects Packaging content and services covers a range of activities that remain specific to the medium, • Package for consumption message, and format; however, packaging of online content and services entails semantic tagging of content, search engine optimization, and application of metadata. 5 EXECUTE (EXE) Staging presents unpublished marketing content and interactive services to a quality assurance team, simulating user experience and access by myriad devices and configurations; for printed materials or • Stage for quality assurance manufactured goods, staging may include digital or physical proofs, mock-ups, and press checks. • Provision engagement objects • Manage exceptions Provisioning completes the publishing process and delivers finalized marketing content or interactive services to the intended party; provisioning includes the personalization or customerization of printed materials; most notably, provisioning calls attention to a prerequisite high-availability technical infrastructure. Managing exceptions emphasizes a real-time customer and partner feedback system and the ability to immediately execute a change; this includes the rapid provisioning of patches and fixes to deployed systems. 6 GOVERN (GVN) Measurement tracks operational efficiency (on time, at budget, spendings to date by market, media, partners, etc.) and operational effectiveness (incremental and recurring revenues, new customer • Measure efficiency and activations, leads to channel or field, downloads, impressions, etc.). effectiveness • Monitor policies and deviations Monitoring of policies and exceptions (over budget by procurement line item and project) provides • Summarize activities and results the first indications of problems (especially critical in product launches) with packaging, designs, and localization—critical upstream activities that can cascade downstream in global catastrophes. Summarization goes beyond dashboards and statistics, emphasizing the dynamic modeling of all key dimension of the customer-making process as well as the fact-based calculation of the economic value of each customer relationship and its corresponding database record. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 19
  • 20. Orchestrating the How do friend networks require marketers to engage with Technologies and Processes of the multimodal communications? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... COGNITIVE DIVERSITY SPHERES OF INFLUENCE EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Many of today’s markets no longer consist of solitary buyers Everyone has a number of friends who listen to and consider who make independent purchase decisions. an offered opinion or recommendation. Rather, current consumer research reveals the significant The figure below depicts four more dimensions of and growing role of social networks and social media in influence: shaping desire and consumption. • In small groups, individuals will tend to emphasize one The figure below depicts several dimensions of how of four basic relational styles: playfulness and belonging, customers now engage markets. action and results, helpfulness and inspiration, and Customers engage markets using their social network of information and neutrality. friends to scan, track, intercept, interpret, reframe, integrate, • Networked individuals relate to others on the basis of and socialize brands, value propositions, and paths to their core group of nine or so best friends. purchase and satisfaction. • The number of individuals in a social network varies Social networks not only produce media; these networks from one person to the next: 11, 33, and 75 friends, enable an individual to activate connections and request respectively. assistance of other individuals: experts and taste makers. • The Internet renders geography of friendship almost meaningless: young adults have “good friends” from far- NEW CLASS OF KNOWLEDGE WORKERS flung places around the world. In a structural sense, all customers constitute a type Multimodal communication incorporates these of knowledge worker; all or most of the principles of dimensions of influence, framing marketing information knowledge worker productivity apply to customer as social currency for members of a core group and larger engagement. network to barter and exchange among themselves. Mastery of customer engagement requires mastery of knowledge worker productivity. Mastery of knowledge worker productivity informs the mastery of customer engagement. Knowledge workers optimize their satisfaction and productivity by E N G A G E M E NT E NT A I L S C ONN E C T I N G A N D I N F OR M I N G A B E S T - exploiting their own particular cognitive F r ieN D N E T W ORK styles, preferred ways of learning, and communication skills. Play/ In part, personal knowledge worker 11 BELONGING productivity entails a preferred learning style: FRIENDS • Reader-thinkers who prefer to take Knowledge/ Results/ lots of notes as a way to structure, Play/ NEUTRALITY POWER organize, and encode new information 33 BELONGING and perceptions • Talker-listeners who prefer to hear FRIENDS someone introduce, explain, and emotionally anchor new information Knowledge/ Results/ Inspiration/ and feelings NEUTRALITY POWER SERVICE • Watcher-doers who prefer to observe someone perform a task or diagram a use case, taking immediate action that re-creates the performance in a Inspiration/ physical or imaginary realm SERVICE 75 Multimodal communication satisfies FRIENDS Play/ these three preferred styles of learning. BELONGING Knowledge/ Results/ NEUTRALITY POWER A wide diversity of cognitive skills exists in most of these social networks of friends, requiring that marketers use Inspiration/ multimodal communication and interaction styles that SERVICE connect and inform the various individuals of a social CircleofFriends.1.2 network of friends. ©2009 GISTICS All rights reserved ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 20 GISTICS executive white paper
  • 21. ................... ................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Orchestrating the Technologies and Processes of the Customer Engagement Cycle SECTION III Operational Capabilities of Customer Engagement ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION: PAGE 22 What constitutes the customer engagement cycle, emphasizing seven phases by which firms define and create engaging content? 23 What constitutes creative content in a context, emphasizing to the need to engage customers in specific venues and preferred ways to engaging a brand? 24 How do particular buyer reactions to content produce behavioral data, emphasizing a progression of data collection activities? 25 How does effective customer engagement maximize long-term customer value? 26 What contributes to multichannel analytic insights, emphasizing a more comprehensive understanding to individual customers in an engagement life cycle? 27 What comprises the service capability of a voice-of-the-customer system? 28 What contributes to content planning, media plans optimization, product- offering mixes, and social networking for customer cohorts by engagement lifecycle phase? 29 How do engagement planners optimize content, using a content customerization framework with customer preferences and consumption scenarios? 30 What elements comprise customerized content, defining the properties of customer engagement objects? 31 What technologies provide the foundation for mastering the engagement cycle? 32 What defines an operational capability? 33 What comprises an information maturity model of customer engagement? 34 How can an engagement maturity model clarify a firm’s next steps? 35 What comprise the process-maturity phases of multichannel marketing analytics, an example of example of one engagement cycle process maturity model for multi channel analytics? 36 What comprise the process-maturity phases of multimodal content management, sequencing the evolution of customer engagement objects? 37 What comprise the process-maturity phases of personalized messaging, sequencing the evolution of provisioning and executing emails and newsletters? 38 What comprise the process-maturity phases of marketing process orchestration, sequencing the evolution of marketing operations management? SERIES//MANAGEMENT ADVISORY GISTICS 21
  • 22. Orchestrating the What constitutes the customer engagement cycle, emphasizing Technologies and Processes of the seven phases by which firms define and create engaging content? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ENGAGEMENT CYCLES CLOSED-LOOP FEEDBACK SYSTEM EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers navigate the concentric rings of trust in their It then follows that the transit from awareness, individual brandspaces (unique to each customer), arriving consideration, and trial to purchase, adoption, commitment, at the brand engagement theaters of their trusted brands. and advocacy—stages of the brand lifecycle—comprise What then ensues comprises the seven phases of the hundreds of discrete engagement cycles. engagement cycle. The structured model below supports these key insights: Brand engagement theaters constitute the first phase, • Faster engagement cycle times induce greater levels of presenting content, navigation, presentation, and context. engagement. User reactions may entail reading or viewing, clicking • Few defects in delivered content, navigation, and through the next page or section, or exiting. Key point: Most presentation increase the probability of success. visits exit for reasons unknown, a strategic breach that • Most defects occur unnoticed, leading engagement engagement managers must address with session-monitoring managers to make the same mistakes again and again. systems. • Automation and policy management of content Behavioral data from most Web analytic systems provides workflows can reduce the number of defects. useful but minimal insights into both anonymous unnamed • Voice-of-customer systems provide critical insights as to and named users. The next frontier of behavioral data will what’s broken, missing, or needed. include interaction data from inside immersive rich-media streams and video, documenting where users went and what • Analytic insights and voice of customers must inform content creation; this requires formal systems for they did. documenting content-user requirements. Analytic insights include other sources of data: customer databases, social media monitoring, voice of the customer, • Effective engagement requires governance: someone and newer Web analytic tools. within the firm must step forward and take ownership of the engagement cycle. Content-user requirements specify what types of “information food groups” particular high-value customer segments prefer; providing these will require a formal information consumption model and procedures for directing content creators to produce required information, matching user-consumption profiles to classes and types of information and media formats. Content optimization starts with semantic tagging of Web pages and documents, creating topic maps (similar to tag clouds, only specific seve n s t age c y c l e c r ea t es c u s t o me r ized c o n t e n t to an individual page) and metadata sets that later will power faceted search and dynamic navigation. 1 2 BRANDSPACE Contextualized content uses behavioral Visitor Creative Reaction targeting, semantically tagged content that enables dynamic composition of topic • Unnamed Content maps or page-specific tag clouds, faceted • Named in Context Circles of Trust navigation (dynamically constructed keywords within a multitiered hierarchy or taxonomy), and user account histories, 7 3 journals, and personal collections within Customerized Behavioral the site. Content Data Engagement Cycle 6 Phases 4 Content Multichannel Optimization or Analytic Individualization EngagementCycleBasic.A.1.1 Insights ©2009 GISTICS Incorporated, All rights reserved. 5 Content Governance and accountability of the engagement CONTENT Planning VOICE-OF-CUSTOMER cycle define career opportunities leading to executive CREATION CONTENT ANALYSIS management of marketing. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 22 GISTICS executive white paper
  • 23. Orchestrating the What constitutes creative content in a context, emphasizing Technologies and Processes of the to the need to engage customers in specific venues and preferred ways to engaging a Customer Engagement Cycle brand? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... CONTEXT THAT CONNECTS based limbic system, the emotional and sensing cortex, and EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved the rational and analytic neocortex) agreeing with a sensory Customers connect (or do not connect) with brands and input or inputs. related value propositions, using many nonverbal, implicit, Neuro-linguistic programming (NLP) practitioners further or environmental cues. suggest that a state of relative congruence matches three The real work of engagement begins and ends with more important and phase-locked subjective states: affinity, creating an appropriate and natural social and market communication, and agreement. context in which to activate and engage customers. Simply put, a high level of congruence entails an equal The figure below depicts the first phase of the and matched level of affinity (smiles, nodding heads, engagement cycle—creative content in context—calling mirrored body postures), a willingness to communicate attention to three dimensions of context, creative content, personal information (opt-in, completing a survey), and a and brand engagement theater. felt responsibility and follow through in keeping a promise Context constitutes the sum total effect that the choice or keeping one’s end of the deal. of metamessages, venue, and metadata evoke as a specific Thus, the context that connects evokes a high and and intended experience among different consumers. increasing level of congruence, affinity, communication, Design choices and tonalities that specific visual images, and agreement follow through, defining the four central formats, and layouts evoke represent a metamessage. Other dimensions to benchmark, monitor, and guide systems- metamessages may include the ethnic identities of human based optimization of the customer engagement cycle. models and more subtle “tribal markers,” such as hairstyle, cut of clothing, and modernity or datedness of setting. BRAND ENGAGEMENT THEATER Venue clearly evokes different behaviors from consumers, evincing the role that belief, expectation, degrees of The metaphor of a brand engagement theater takes on freedom, and the presence (or absence) of other people play new meaning with the addition of ideas of a context that in venue-specific behaviors. connects. Metadata and its related application to media and other The figure below depicts one more central insight: customer engagement objects (metatagging) emphasize a consumers collapse media channel, service delivery, and critical and often broken link in the customer engagement points of purchase into a seamless experience of the brand; cycle. Metaphorically, metadata represents the card index brand marketers must now “exercise” their digital limbs, file of a library of resources (books or tools). Missing, adding to or enhancing the customer’s experience of service incomplete, or wrong metadata severs the connection and and overall satisfaction. access to a specific and needed resource: marketers fail to connect with consumers. Elsewhere in the paper, M A T C H I N G S P E C I F I C M A RK E T I N G C ONT E NT A N D A N A P P RO P R I A T E C ONT E X T we develop more fully A F F E C T S L E V E L S O F C U S TO M E R E N G A G E M E NT the idea of a customer engagement object (a new class of digital Context • Metamessages of design and tonality assets) that plays a • Venue: online, electronic, print, physical central role in the • Congruence: environment, consumer, message engagement cycle. • Metadata and metatagging 1 2 BRANDSPACE 1 Visitor Creative Reaction • Unnamed Content Creative Content in a Context: in Context CONGRUENCE • Named Circles of Trust • Corporate: Website, microsites • Mobile: SMS, MMS, video Successful engagement • Retail: Signage, packaging, etc. 7 3 results when matching Customerized Behavioral Content Data • Direct mail: Catalogs or mailers the right messages with Engagement • Broadcast: Ad spots, placements • Social networks: ‘Friended brands’ specific consumers in an Cycle • Blogosphere: Seeded sites, etc. appropriate and suitable 6 Phases 4 Content Multichannel environment. Optimization or Individualization Analytic Insights Cognitive scientists suggest that “congruence” entails all 5 Content CONTENT three brains (survival- CREATION Planning VOICE-OF-CUSTOMER CONTENT ANALYSIS Brand Engagement Theater Points EngagementCycle1Context.A.1.1 ©2009 GISTICS Incorporated, All rights reserved. of Purchase and Personal Online Services Media Electronic Context frames the level of participation engagement in brand engagement Services Media theaters, unifying a brand voice and a value proposition across multiple Physical channels, media, and formats. Media ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 23
  • 24. Orchestrating the How do particular buyer reactions to content produce Technologies and Processes of the behavioral data, emphasizing a progression of data collection activities? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... DATA INDICATING ENGAGEMENT ACROSS MANY TOUCHPOINTS MULTICHANNEL BEHAVIORAL DATA EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers connect (or do not connect) with brands and Data collection processes often comprise number of distinct related value propositions, using many nonverbal, implicit, and often independently managed activities and systems. or environmental cues. Behavioral data spans all phases of the customer The real work of engagement begins and ends with engagement lifecycle, revealing new information about creating an appropriate and natural social and market the buyer-seller relationship and the evolution of the context in which to activate and engage customers. relationship into more stable and profitable states. The figure below depicts two phases of the customer Multichannel customer identities indicate the need engagement cycle: reaction and behavioral data. to compile and refine composite profiles of customers, Reactions to creative content in context start with combining behavioral data with other types of data awareness of a particular setting in the marketspace: a social (Web session data, customer data, subscriber data, and context, a physical environment (including online), and certification data). Other data sources that further creative messaging (including image, text, motion graphics). complement behavioral data include database analytics A myriad of other factors may influence a buyer’s using syndicated consumer and lifestyle data, as well as impulse or directed decision to proceed deeper in voice-of-customer content analytics. shopping modalities. Other modalities not shown include As we explain elsewhere in this paper, multichannel procurement, sourcing, and resupply. behavioral data leads to new, emerging disciplines— multichannel analytics and analysis-driven communications and collaborations with customers. R E A C T I ON S TO C ONT E NT C A N P RO D U C E D A T A I N D I C A T I N G TH E S T A TU S O F A BUY E R I N TH E C U S TO M E R E N G A G E M E NT L I F E C Y C L E Reaction: SHOPPING MODALITIES • Notice or pass • Understand or not • Consider or dismiss 1 2 BRANDSPACE Visitor Creative Reaction • Futurepace a trial Content • Futureproof a relief • Unnamed • Named in Context Circles of Trust • Viscerally commit 7 3 Customerized Behavioral Reaction • Rationalize Behavioral Data: Content Data CUSTOMER IDENTITIES Engagement • Purchase Cycle • Unknown stakeholders 6 Phases 4 Content Multichannel — Web traffic MULTI-CHANNEL Optimization or Behavioral Analytic Data Individualization Insights — Floor traffic • Known stakeholders 5 — Call center Content CONTENT Planning VOICE-OF-CUSTOMER CREATION CONTENT ANALYSIS — Named site users • Profiled stakeholders PHASES OF THE CUSTOMER ENGAGEMENT LIFE CYCLE STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) DATA COLLECTION WEB SESSION DATA USER DATA CUSTOMER DATA SUBSCRIBER DATA CERTIFICATION DATA PROCESSES • Web IP address • Registration info • Purchases and returns • Categories of interest • Social network • Session pages/time • Email opens/frequency • Service episodes/cases • Information preferences connections (partial list) • Search event/keywords • Site loyalty/ • Wish and gift lists • Learning modalities • Reputation rank consumption • Spheres of influence EngagementCycle2-3Data.A.1.2 ©2009 GISTICS Incorporated, All rights reserved. Each new advance in customer engagement enables marketers to collect more behavioral data from buyers at an expanding number of touchpoints in a marketspace. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 24 GISTICS executive white paper
  • 25. Orchestrating the How does effective customer engagement maximize long- Technologies and Processes of the term customer value? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... STRATEGIC SEGMENTATION AND ENGAGEMENT takes place in the unconscious processes of the limbic EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved system or reptilian brain of human beings. Customer engagement starts with segmentation, answering Most-strategic customers comprise generally small, the question “What demographic, economic, psychographic, overlooked portions of the market that nonetheless and behavioral data sets describe our ideal customers?” determine tomorrow’s share of the market. Traditionally, The figure below depicts several key facets of the answer youth markets provided consumer goods vendors the to the question, “What types of customers should we opportunity to engage and brand first-time buyers, creating a engage?” lifelong relationship of service and consumption. Most-satisfied customers comprise individuals and Today, online services that support customer self-service segments of businesses or institutions that love a branded have begun to determine tomorrow’s share of markets. offering, self-identifying with its user community or the Action point: Identify the source of new entrants to your aspirations that brand use fulfills. Digging deeper into this markets, using voice-of-the-customer systems to quantify group, we find customers who know how to buy and use a their “technographics”—level of adoption and preference for brand offering; consumption constitutes a social ritual. digital third-handed engagement with mobile, online, and Action point: Fix clumsy satisfaction assurance processes; interactive kiosks. use a voice-of-the-customer system (described elsewhere in this paper) to identify problems and ways to fix them. LIFETIME VALUE OF CUSTOMERS Most-profitable customers comprise segments that realize additional value—social esteem or greater productivity— Customer engagement should optimize the lifetime value of from the branded product or service. In consumer markets, customer relationships. customers often justify paying a price premium (source of Maximizing lifetime profits starts with a comprehensive profit to vendors) as a deserved or earned luxury or as an process model of satisfaction assurance, defining how and investment in productivity or a tangible capacity that will where customers communicate, interact, and collaborate earn back its investment: lower costs, faster time to market, with your service infrastructure, as well as the customers’ higher quality, greater differentiation of a work product or social networks. finished good. The figure below depicts seven generic strategies for Action point: Develop solid, unassailable return-on- maximizing profitability; each company in its chosen investment calculators for commercial offerings, using markets will employ its own unique strategies. activity-based accounting techniques to measure otherwise Action point: Use activity-based accounting to quantify intangible economic gains. the basic cost to serve an average customer over a multiyear For consumer offerings, quantify the return on customer-producer relationship, establishing the baseline invested time (RIOT) and how consumers might spend of costs and typical service events. Then, calculate the cost their productivity or lifestyle dividend. Remember: the to serve various customer segments and customer types, calculation of time, money, attractiveness, food, and safety correlating those costs to lifetime revenue. C U S TO M E R E N G A G E M E NT W I TH S E G M E NT A T I ON A N D M A RK E T “ S W E E T S P OT S ” D R I V E L I F E T I M E P RO F I T A BL I TY Demographic success model HIGH HIGH PROFIT Premium Cloning Service strategy strategy Education strategy Most Loyal, Valuable Demanding L IFE TIM E R EVEN UE Most-satisfied Most-profitable customers customers SWEET Up-sell SPOT strategy Higher Premium Branding Use strategy strategy DemoSuccess.1.2-c © 2009 GISTICS Incorporated All rights reserved. Deadwood Most-strategic Undeveloped Exit (share-determining) strategy customers HIGH LOSS LOW CustomerValueLifetime.1.2-c © 2009 GISTICS Incorporated, All rights reserved. LOW CO S T TO S ER V E HIGH Digital third-handed consumers seeking on-demand services and interactive marketers develop operational capabilities for provisioning self-service applications to applications represent a typical share-determining market sector, requiring that brand the profitable customer types. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 25
  • 26. Orchestrating the What contributes to multichannel analytic insights, emphasizing a Technologies and Processes of the more comprehensive understanding to individual customers in an engagement life cycle? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BEYOND TRADITIONAL DATABASE MARKETING ANALYTICS SEMANTIC TAGGING OF INTERVIEWS AND SOCIAL MEDIA EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Mastering the customer engagement cycle takes database Qualitative data from surveys, focus groups, and interviews marketing and related analytics into a new era of insights can provide powerful ways of analyzing quantitative data. and fact-based communication. The figure below also depicts another advance in The figure below depicts two important dimensions of qualitative data analysis: Voice-of-the-customer Content the engagement cycle: Analysis, using specialized text-mining technologies that Multichannel analytics add new data sets to the database classify massive amounts of digital text—transcripts from analysis (with enriched data from syndicated or compiled interviews and focus groups and abstracts of millions of data sources), integrating data from Web sites, emails, and blogs, forums, social networks, and user-generated content. social media monitoring. This type of “social” data not only documents the This will require the use of specialized analytic database keywords and phrases of real customers, content analysis and train-of-thought data visualization tools as well as can infer meaningful shifts in awareness, consideration, sources of usable, well-maintained data sets—not normally and trial, including dissatisfaction and negative or positive found within marketing operations and, thus, secured from word-of-mouse—potential early warning events that trigger external data and marketing service providers. remedial action (engagement!) M ULT I C H A NN E L A N A LYT I C S : TH E C U S TO M E R E N G A G E M E NT L I F E C Y C L E STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) PHASES OF THE CUSTOMER ENGAGEMENT LIFE CYCLE Multichannel Analytic Insights: 1 2 BRANDSPACE Creative Reaction Visitor • Unnamed • Named Content in Context • Syndicated data Circles of Trust • DB analysis • Email newsletter logs 7 3 Customerized Behavioral Reaction Content Engagement Data • Web user journals Cycle • Social monitoring 6 Phases 4 Content Multichannel Optimization or Behavioral Analytic Data Individualization Insights Content Uses and Applications 5 Content CONTENT Planning VOICE-OF-CUSTOMER CREATION • Corporate reputation • Engagement scorecards CONTENT ANALYSIS • Web site testimonials • Content optimization • Case studies • Search engine marketing • Social marketing topics Dashboard • Insights and innovations Recorded Journey-of- Transcription Text Mining and • Issues and flashpoints Telephone the-Customer Content Classification Interview Interview Production • Keywords and phrases • Cause-effects: policies and brand touchpoints • Contact(s) • Initial issues and problems • 3,000 to 7,000-word • Semantic tagging • Role • Root-cause insights transcript • Faceted taxonomies EngagementCycle4-Analytics.A.1.2 ©2009 GISTICS Incorporated, All rights reserved. • Firm/household • Catalytic events • Annotated screenshots • Topic maps and graphics from library • Industry/custom • Functional requirements • Auto-summarization Each new advance in customer engagement enables marketers to • Engagement • Solution research of sentiments and trends preferenda collect more behavioral data from buyers at an expanding number • User experience and criteria of touchpoints in a marketspace. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 26 GISTICS executive white paper
  • 27. Orchestrating the What comprises the service capability of a voice-of-the- Technologies and Processes of the customer system? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... JOURNEY TO SATISFACTION APPLIED INSIGHTS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Customers discover, consider, buy, use, and dispose of Voice-of-customer systems provide hard data and insights, products (or terminate services) across what many call associating sentiments and perceptions that traditional the customer-brand lifecycle, creating a cumulative set of surveys and quantitative methods miss. experiences that becomes a brand. VOC systems reveal how particular customers see Aside from the occasional letter or email (generally and feel about discovering, considering, buying, using, a complaint), periodic surveys and focus groups, and and disposing of various products (or terminating various session abstracts from calls for service with a teleservices services) in that customer’s or stakeholder’s brandspace—the operation, few companies know much if anything about how branded offerings and providers that the customer trusts. customers transit the customer-brand lifecycle. VOC insights supercharge engagement, correlating pain With its origin in total quality management and Six points and branded offerings, as well as revealing what’s Sigma, pioneering firms have undertaken some form of a broken, suboptimal, or missing in the customer-provider voice-of-customer (VOC) program, correlating perceptions of relationship (not just in the offered product or service). quality (largely defects of a product or unsettling experiences This supports the claim that mastery of the engagement among serviced clients). cycle starts with customer voices. Advances in technology now enable most firms to create low cost, very effective VOC programs. The figure below depicts the basic elements of a typical VOC system. Foremost among the system elements lies a voice- of-customers database, containing processed verbatim transcripts of interviews and a summarization of key findings and trends in a dashboard. A UTO M A T E D C L A S S I F I C A T I ON A N D S U M M A R I E S O F TR A N S C R I B E D I NT E R V I E W S STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5) VoiceofCustomer.A.1.6c © 2009 GISTICS Incorporated, All rights reserved. Personal Recorded Journey-of- Transcription Text Mining and Invitations or Telephone the-Customer Content Classification Introductions Interview Interviews Production • Salesperson • Contact(s) • Initial issues and problems • 3,000 to 7,000 word • Semantic tagging • Customer service • Role • Root-cause insights transcript • Faceted taxonomies • Internal operations • Firm/household • Catalytic events • Annotated screenshots • Topic maps • Partners • Industry/custom • Functional requirements and graphics from library • Auto-summarization • Engagement preferenda • Solution research of sentiments and and criteria • User experience trends Content Uses and Applications Dashboard • Corporate reputation • Engagement scorecards • Insights and innovations • Website testimonials • Content optimization • Issues and flashpoints Voice-of-customer • Case studies • Search engine marketing • Keywords and phrases content analysis • Social marketing topics • Cause-effects: policies and brand touchpoints First-hand experiences of the customer journey to satisfaction clarify myriad issues optimization, and corporate governance. related to engagement, content development, search engine marketing, content ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 27
  • 28. Orchestrating the What contributes to content planning, media plans Technologies and Processes of the optimization, product-offering mixes, and social networking for customer cohorts by Customer Engagement Cycle engagement lifecycle phase? ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... BEYOND CREATIVE GENIUS Media-mix optimizations use the outputs of several EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved analytic disciplines to prioritize placement of ads and Content planning develops complex recipes and formulas promotions in print, broadcast, online, and physical point- that guide creative, media, and technical staff and partners of-purchase media, specifying for the creative team which in the ideation, creation, and production of customer engagement touchpoints it must “light up” with suitable engagement objects (creative content). content. Beyond the traditional media planning activities of The figure below depicts five important dimensions agencies, media-mix optimization incorporates sponsoring of the content planning phase of the engagement (event, promotions), guerilla marketing (street teams, viral cycle, emphasizing the now huge demands on staff and videos), social marketing (blogging, web posts, discussion infrastructure for near-continuous communication, groups), and social networking (brandstands in Facebook and interaction, and collaboration among hundreds of MySpace). contributors. Product-mix optimizations define the best configurations Customer cohorts coalesce psychographic, demographic, of products to promote into a consumption context (food and economic data into meaningful profiles and attainable and condiments of home-prepared lunches), harmonizing market segments. An important, share-determining the messaging of multiple (corporate and partner) brands customer cohort comprises “wired, digitally engaged and categories. Product-mix optimizations help increase consumers” who use a burgeoning array of Web-enabled “share of wallet” among customers, barriers to entry for tools and services to enhance their experience of living, competitors, and levels of acceptance of new sibling brands working, and playing. As a share-determining sector, this in a cross-promoted bundle. Driven by hard-data analytics relatively small group of consumers will not only continue and predictive models of increased sales and profit, product- to grow, but this sector will also determine shares of market mix optimizations often provide the critical stepping stone for all manner of brands tomorrow. of cross-brand engagement among otherwise competitive, if Engagement lifecycle stage optimizations help the not warring, siblings of a large portfolio of brands. creative team focus on three intersections of consumption: Social-network optimization entails the newest and more first, the consumer’s stage of life (single, just married experimental dimension of content planning. As recent without kids, married with toddlers, old married couple, research reveals, most digitally engaged consumers frequent etc.); second, the consumer’s status with a customer only 12 or so destinations on a regular basis. Social-network engagement lifecycle (awareness, interest, consideration, optimization specifies what types of content, experiences, trial, etc.); third, the consumer’s pattern of engagement (site and services make the best fit for each of those 12 or so visits, duration of visits, email opens and click-throughs, largely social Web destinations; this includes how to publish opt-ins, subscriptions, etc.). or provision engaging content and services into these sites, creating link-backs to microsites optimized for customer cohorts and the engagement lifecycle needs. P L A NN I N G C ONT E NT F OR E N G A G E M E NT C Y C L E S E NT A I L S UN P A R A LL E L E D L E V E L S O F C OLL A BOR A T I ON A M ON G S T A F F A N D P A RTN E R S Content Planning • Customer cohorts 1 2 BRANDSPACE Visitor Creative Reaction • Unnamed Content — Psycho demographic profiles of lifestyles, mindstyles, and consumption • Named in Context — Based on attitudinal, behavioral, and economic data Circles of Trust • Engagement lifecycle stage optimization 7 3 Customerized Behavioral Reaction — Information and media preference by type of customer relationship Content Data Engagement — Addresses intensity and directionality of engagement Cycle • Media-mix optimization 6 4 — Allocations of print ad, collateral, broadcast, interactive, in-store Phases Content Multichannel Optimization or Behavioral Analytic Data media buys by customer cohort, season, and sales coverage Individualization Insights — Includes social media and controlled content of Web sites and microsites 5 • Product-mix optimization Content CONTENT Planning VOICE-OF-CUSTOMER CREATION CONTENT ANALYSIS — Targeted cross-selling and special bundles for capturing larger share of wallets among specified customer segments — Uses ‘right to win’ matrix of desirable customers • Social-network optimization — Emphasize significant new investments in social media, Content planning for the engagement cycle incorporates sponsoring, online video sharing, and life-episode microsites all available insights about customers and their point in a — Increasing use of certified advocates in word-of-mouth programs customer engagement lifecycle. EngagementCycle5-ContentPlanning.A.1.1 ©2009 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 28 GISTICS executive white paper
  • 29. Orchestrating the How do engagement planners optimize content, using a content Technologies and Processes of the customerization framework with customer preferences and consumption scenarios? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... CONTENT CUSTOMERIZATION Customer engagement lifecycle (discussed elsewhere in EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved this paper) defines the stage to which engagement planners Content optimization engineers create work products for optimize their creative content: awareness, consideration, automated publishing processes and their targeted delivery trial, purchase, commitment, etc. to customer cohorts and individual customers. Consumption in the context of content optimization This entails more than just making it look nice or easy to encompasses all the major tangibles and intangibles of find. Content optimization requires a new or enhanced set the buying, using, and disposal experience of consumers. of systems, processes, and accountabilities, as well as the Consumption includes media, information, and on-demand use of an explicit content optimization framework. services, as well as a product or service, its packaging, The optimization of content for customer engagement storage and retrieval, and recycling, re-gifting, or resale on extends well beyond current practices of content an auction site—all branding events that contribute to (or optimization: search engine optimization, faceted search, diminish) the experience of the brand. and tag clouds. Customer database (DB) masters comprise the singular, The figure below depicts a preliminary, evolving enriched data set of one customer relationship. This framework that will suggest “next practices” of content master record may syndicate data from a variety of sources, optimization. including ERP and other systems of record in the enterprise, Engagement preferenda define the types of information, CRM and analytic databases, and external compiled data interactions, and experiences (stories) that self-directed services (credit reporting and market service providers), as customers specify (using special user-content subscription well as social networking pages (Facebook, LinkedIn, Plaxo, forms) or engagement planners infer from behavioral data. Blogger, WordPress, etc.). Engagement preferenda also specify what types of criteria Patterns of engagement specify predicted customer planners must satisfy, assigning probabilities of success in behaviors, the probability of engagement, and event triggers using any of the seven “persuasion” resources (as suggested prompting next-step actions. below—engagement criteria). Consumption cohorts then represent profiles using Basis of conversation defines the themes, rationales, and psychographic, demographic, and economic data. discussion points to highlight or promote, emphasizing the Stakeholder roles enable engagement planners to path of least resistance in how to enter into the broader optimize content to the institutional role of a consuming “conversations of the market.” individual; this might include their role as a contractor, Product-mix optimizations specify the best configurations supplier, member of an employee’s family, investor, press, of products to promote into a consumption context, influential blogger, or financial analyst. addressing a particular consumption cohort, buying patterns, Long-term business value enables engagement planners engagement criteria, and phase of a customer lifecycle. to optimize content to a predicted long-term revenue stream and the nuanced but powerful aspects of a relationship. content optimization requires an explicit framework with policies and benchmarks 1 2 Knowledge Engagement BRANDSPACE Creative Reaction Visitor Work Criteria • Unnamed Content - Information • Named in Context - Reason Circles of Trust - Interactions- Research ENGAGEMENT - Experiences - Resonance PREFERENDA 7 3 Customerized Behavioral Reaction Media Formats - Polymorphic Content Data Content - Digital explanations - Incentives Engagement Customerization - Electronic Framework - Physical - Real-world events Cycle 6 4 - Polarized Phases Content Multichannel Stakeholder Behavioral Pa resistance Optimization or Analytic on Roles Data tt Individualization Insights ati ern ers so Engagement nv fE 5 - ROI: Return on investment Co CUSTOMER ng Content - RIOT: Returned investment of CONTENT a Planning VOICE-OF-CUSTOMER DB gem sis of time CREATION CONTENT ANALYSIS MASTER Ba ent Consumption Long-term Cohort Business Value OFFERING-MIX Customer Engagement Lifecycle CONSUMPTION Customerization links a customer database (DB) master with OPTIMIZATION CustomerEngagementObjectFrame.A.1.3 ©2009 GISTICS Incorporated, All rights reserved. stated, or implied preferences for engagement as well as systems for benchmarking. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... SERIE S//MANAGEMENT ADVI SORY GISTICS 29
  • 30. Orchestrating the What elements comprise customerized content, defining the Technologies and Processes of the properties of customer engagement objects? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... NEW ASSET CLASS CUSTOMER ENGAGEMENT OBJECTS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Generally accepted accounting practices (GAAP) recognize Engagement objectives represent explicit goals and digital assets as a distinct asset class of corporate balance measurements, defining what engagement planners intend to sheets, permitting owners of properly managed digital files elicit from a particular customer or consumption cohort. to capitalize the expenses associated with the creation and Content metadata describes a unique piece of media, maintenance of their digital assets. information, or composition (comprised of multiple media GAAP requires the satisfaction of three basic criteria: and information objects)—data that describes the data • Full and accurate accounting of the costs to create and contained in the media or information component. maintain a digital file over its useful lifespan Learning activities correspond to a unique stage of the • Direct correlation of the asset to identifiable revenue customer engagement lifecycle (trial, purchase, commitment, events or cost savings etc.), defining a unit of cognitive work—successful • Documented reuse of the assets extending beyond 18 completion of a task such as downloading a coupon. months Engagement content represents the published or publishable material: Web page, coupon, POP signage— Satisfaction of these accounting requirements entails the creative content within a particular context such as a store. development and execution of a digital asset management Engagement episodes entail the user interactions within system and, in particular, metadata, policies, and asset-user an engagement theater that produce behavioral data and activity analysis. subsequent inputs to the multichannel analytics practice. Catalog houses such as Cabelas capitalize the cost of Attainment milestones define a new skill or customer database records. understanding that the customer developed while engaged Stock photo and music libraries such as Getty Images with the brand or partner, defining a skill-attainment and Corbis capitalize the cost of acquisition, cataloging, and roadmap that satisfied and recommending customers possess maintenance of their digital stock, including the expenses as a precondition of their satisfaction or advocacy. associated with digitization, color correction (images), and Activity-based feedback requires the application application of metadata. of activity-based accounting principles to patterns of Software developers such as IBM and Microsoft capitalize engagement, correlating behavioral data to engagement the creation and maintenance of their software code, putting objectives and a learning activity. billions of dollars on their corporate books. User guidance and multimedia vocabularies and syntax The figure below depicts a framework for applying GAAP entail supplemental engagement content, including principles to customer engagement objects, enabling firms to screencast video explanations of how to engage and user capitalize the sizable, ongoing expenses associated with the interface items, respectively. customer engagement lifecycle (awareness, consideration, Formats, search, and use cases entail additional content trial, etc.). metadata, data policies, and publishing templates. C U S TO M E R E N G A G E M E NT OB J E C T S C ON S T I TU t E A N E W asse t o n C OR P OR A T E B A L A N C E S H E E T S US T O M E R I Z AT I O N F R TC AM EN GAGEM ENT PREFEREN DA EW T EN OR C ON K 1 2 BRANDSPACE ENGAGEMENT Visitor Creative Reaction Content OBJECTIVE • Unnamed • Named in Context Circles of Trust Customer 7 3 Customerized Behavioral Reaction User Content Data Ac Engagement s Engagement Guidance ER stic tivi gno ty- Cycle ER DB MAST Object bas CONSUMPTION Dia 6 Phases 4 Content Multichannel ed Behavioral nt Optimization or Analytic ENGAGEMENT Data Fee me Individualization Insights CONTENT ain db ack Att 5 OM Formats, Multimedia Content Search, Vocabularies CONTENT Planning VOICE-OF-CUSTOMER CUST and and Syntax CREATION CONTENT ANALYSIS Use Cases CONTENT LEARNING METADATA Engagement Episodes ACTIVITY EngagementCycle-7CustomerizedContent.A.1.6 ©2009 GISTICS Incorporated, All rights reserved. Firms may capitalize the costs of creating and maintaining customerized content, using generally accepted accounting practices (GAAP) to manage the customer engagement OFF N objects as financial assets. ERING ATIO -M IX OPTIMIZ ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 30 GISTICS executive white paper
  • 31. Orchestrating the What technologies provide the foundation for mastering the Technologies and Processes of the engagement cycle? Customer Engagement Cycle ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... OPERATIONAL SUPPORT PLATFORM INTEGRATION OF LOOSELY COUPLED SYSTEMS EngagementCycleExecWP-neu.1.0 ©2009 GISTICS All rights reserved Integration of the marketing operation starts with the Automation and, thus, faster cycle times and higher quality assumption that all firms must find and serve customers, of the engagement cycle require more than technology. engaging their customers throughout the process of Automation requires a technical integration architecture, discovering, considering, buying, using, and disposing of adherence to open technical and process standards, and a branded products (or terminating branded services). governance protocol. In practical terms, managing the customer brand lifecycle A technical integration architecture represents a through each of these phases will require new or improved comprehensive high-level visual depiction of all the digital systems, new or reengineered processes, and newly defined process components or Web services that a marketing or clarified accountabilities among management, staff, operation currently uses, plans to use, and might use consultants, and trade partners (ad agencies, suppliers, etc.). over the next five years. Action point: Commission an The figure below depicts four multielement systems accomplished digital business architect (former CIO) to that provide the foundation for managing the engagement develop a CIO blueprint of your firm and its external cycle—each system represents a subject that we examine business ecosystems. Hint: Don’t tell your current CIO elsewhere in this paper and related sites. until you have completed your own blueprint! Content Management comprises its own value chain, Do, however, understand and maintain adherence to the consisting of Web content manager(s), text mining engines, IT service management standards and governance protocols source-content XML repositories, multimedia editorial of your organization; deviate only at great peril. production systems, multimedia DAM repositories, and collaboration workspaces. Multichannel Analytics combine traditional database analytics with Web analytics, voice-of-customer insights, and social media analytics, correlating hard-data insights with customer lifecycle profiles and profit models. Creative and Messaging Collaboration Platform M A S T E RY O F E N G A G E M E NT C Y C L E S E NT A I Ls T E C HNOLO G Y I NT E G R A T I ON defines the principal work of engagement planners and managers, including 1 2 BRANDSPACE creative services and Creative Reaction on-demand software-as-a- Visitor • Unnamed Content service applications from • Named in Context trusted partners: ad agencies, Circles of Trust marketing service providers, promotional engagement systems, etc. Message Execution VISIONING A Platforms incorporate all the PRO XECUTION ND 7 3 functions of high-capacity Customerized E Behavioral newsletter and messaging Content Data platforms, as well as dynamic MU NALYT EL LTIMODAL AG ENT or on-the-fly personalization A MU NTENT LTICHANN of newsletters, rich- CO EM media emails, immersive CUSTOMER ENGAGEMENT 6 4 multimedia buying Content OBJECTS Multichannel environments, dynamic ICS Optimization or Analytic AN configuration and pricing, Individualization Insights M and personal just-in-time, just-for-me landing pages and engagement theaters. CR D EATIVE AN MESS ING AG Four multi element systems drive 5 the engagement cycle, demanding CONTENT Content that engagement directors and CREATION Planning VOICE-OF-CUSTOMER planners use a proven technology CONTENT ANALYSIS integration framework, standards, EngagementCycleTechnologies.A.1.5 and governance. ©2009 GISTICS Incorporated, All rights reserved. ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 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  • 32. Orchestrating the What defines an operational capability? Technologies and Processes of the