Your SlideShare is downloading. ×
Alterians August 2009 Webinar   Engagement Impact Presented By Targetbase
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Alterians August 2009 Webinar Engagement Impact Presented By Targetbase

1,547
views

Published on

Featuring Trae Clevenger, Vice President, Strategy & Innovation …

Featuring Trae Clevenger, Vice President, Strategy & Innovation

How do you measure the impact of customer engagement with your content and communications? How can you use a customer’s pattern of engagement to strengthen the relationship and drive sales?

The tight integration of content, data, cutting-edge analytics and technology can deliver optimal customer interactions and drive your marketing objectives. This webinar illustrated an innovative approach that is providing marketers with an actionable gauge of relationship strength and the ability to drive and optimize ROI.

Published in: Business, Technology

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,547
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
16
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Engagement Impact:
    Driving Relationship and Sales at the Customer Level
  • 2. Defining Engagement
    What is engagement?
    “An estimate of the depth of visitor interaction.”
    “The emotional bond or attachment that customers develop with your business.”
    “Time on site and page views.”
    “If a visitor is happy when they leave, they have been engaged.”
    “A state of mind, a state of the heart that shines in everything that you do."
  • 3. Defining Engagement
    “Engagement is the level of involvement, interaction, intimacy and influence that an individual has with a brand over time”
    “Well-established behaviors that demonstrate interactive multi-channel behavioral attachment and that reinforce commitment to the brand”
  • 4. Defining Engagement: An Impact-focused Approach
    “Engagement is as Engagement does”
    What are your marketing objectives? Which needle are you trying to move?
    Whatever the answer, engagement should be viewed with respect to that objective.
    Your objective serves as the dependent variable and every measurable activity a customer can perform acts as an independent variable.
    Quantify the connection between actions and objectives. Does clicking on this content affect a visitor’s likelihood of doing what I want them to do? If so, how much?
    An objective-based approach to engagement ensures you are measuring things that truly have an impact and, maybe more importantly, weighting activities according to the impact they’re having.
    NERD ALERT
  • 5. Customer Engagement Focus
    Create and translate individual-level, data-driven insights that fuel the ideas needed for customer engagement
    Create customer engagement that delivers measurable and sustainable results
    Wired for engagement optimization – seamless integration of technology, analytics, and more effective creative
  • 6. The Approach: Pattern of Engagement
    Key Points:
    Consumer level…not aggregate
    Longitudinal…not point-in-time snapshot
    Actionable proxy and metric for relationship strength
    Quantifiable relationship between engagement and sales (online or off)
    Enables optimization and ever-improving approach with respect to marketing objectives
  • 7. The Approach: Pattern of Engagement
    Steps:
    Establish an engagement paradigm
    Develop a powerful consumer-level metric
    Connect engagement to purchase
    Relationship management with Pattern of Engagement
  • 8. The Approach: Pattern of Engagement
    Establishing an engagement paradigm:
    • Engagement is a continuum…some activities indicate a higher level of engagement with the brand
    • 9. Activities indicating higher engagement are given greater weight
  • The Approach: Pattern of Engagement
    Developing a powerful consumer-level metric:
    • These weighted activities are aggregated into a single level of engagement metric
    Example (one customer, one month):
  • 10. The Approach: Pattern of Engagement
    Developing a powerful consumer-level metric:
    • These weighted activities are aggregated into a single level of engagement metric
    • 11. The level of engagement score indicates each consumer’s volume of engagement
    • 12. Each consumer’s level of engagement can be treated as a time series and trended to account for seasonal patterns in order to determine their direction of engagement
    NERD ALERT
  • 13. The Approach: Pattern of Engagement
    Connecting engagement to purchase:
    • Note: For those without direct transactional data (e.g. CPG), consumers on the database are matched to third-party transactional data (such as Nielsen, DunnHumby, etc.)
    • 14. Now with longitudinal data on consumers’ engagement and purchases, it is possible to calculate an “engagement elasticity of demand”… in other words, the impact on purchases caused by an increase in engagement
    NERD ALERT
    Model Specification:
    log(UNITS PURCHASED) = α + β1log(ENGAGEMENT) + β2 log(INCOME)… + ε
  • 15. The Approach: Pattern of Engagement
    Connecting engagement to purchase:
    • Note: For those without direct transactional data (e.g. CPG), consumers on the database are matched to third-party transactional data (such as Nielsen, DunnHumby, etc.)
    • 16. Now with longitudinal data on consumers’ engagement and purchases, it is possible to calculate an “engagement elasticity of demand”… in other words, the impact on purchases caused by an increase in engagement
    • 17. This enables the marketer to say with confidence “If I increase consumer engagement with my content by X%, I will drive increased purchase by Y%”
  • The Approach: Pattern of Engagement
    Relationship management with pattern of engagement:
    • The vector of volume and direction inform how each consumer should be treated in order to maximize relationship and purchase
    • 18. Test design and targeted campaigns flow from such a strategy matrix aimed at activation, retention, increased engagement, etc.
    Volume of Engagement
    Direction of Engagement
  • 19. Case Study:
    CPG client, multiple brand sites and newsletters, 20 million members
    Client desired an approach to understand and optimize strength of relationships over time and the financial impact to their business
    Pattern of Engagement methodology employed
    Each member’s activity was weighted, aggregated, and trended over time
    Level of Engagement
    The Approach: Results
  • 20. Case Study (continued):
    The relationship to sales was quantified as an engagement elasticity of demand: on average, a 1% increase in engagement resulted in a 0.2% increase in units purchased.
    Members were flagged according to volume and direction each month and treated accordingly
    Content and communication driven by testing around Pattern of Engagement
    In the first six months, 20% lift in engagement, driving an average 4% lift in units purchased, with a ROI over 250%
    Level of Engagement
    The Approach: Results
  • 21. Pattern of Engagement in action:
    Similar success for additional CPG clients as well as retail, automotive, utilities, travel, pharma, health care.
    Ideally, POE incorporates all off and online consumer touchpoints.
    There will be differences in application depending on client objective:
    CPG – Maybe website/email interaction, but limited or inferred transactional data. Connecting POE to ROI requires mapping to 3rd-party data and/or modeling.
    eCommerce/Retail – Rich, comprehensive engagement data with a direct connection to purchase.
    Lead Management/Optimization – May be consumer engagement leading to a one-time or infrequent purchase. POE serves as a predictive, targeting metric focusing marketing budgets on higher converting consumers.
    Level of Engagement
    The Approach: Broader Application
  • 22. The Approach: Pattern of Engagement
    Key Points:
    Consumer level…not aggregate
    Longitudinal…not point-in-time snapshot
    Actionable proxy and metric for relationship strength
    Quantifiable relationship between engagement and sales (online or off)
    Enables optimization and ever-improving approach with respect to marketing objectives
    More gory details available in July edition of the DMA Journal of Analytics:
    Quantitative assessment of purchase impact attributable to consumer patterns of engagement with online relationship marketing content
  • 23. The Approach: Pattern of Engagement
    Getting started:
    START SMALL
  • 24. Trae Clevenger
    Vice President, Strategy & Innovation
    trae.clevenger@targetbase.com
    972.506.3400
    http://www.linkedin.com/in/traeclevenger
    http://twitter.com/trae1