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  • Media metrics statistics about the news websites


  • 1. Engagement Anna Fensel, Dieter Fensel, Andreea-Elena Gagiu, Birgit Leiter and Ioannis Stavrakantonakis© INNSBRUCK Copyright 2008 STI
  • 2. Engagement Engagement is the infinite loop between the listening and responding steps, interweaving publishing and listening. Why is it important?  Because customers are important for any enterprise and the engagement concept creates strong relationships between the customers and the
  • 3. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 4. Communication Infrastructure Communication - Active and reactive - Trace - Multi-channel switch - Multi-agent switch Multi-Channel Social Publishing Media
  • 5. Communication Infrastructure  Communication (from the Latin commūnicātiōn- = ―share‖) refers to the process of imparting or interchange of thoughts, opinions, or information by speech, writing, or signs.*  Communication is a social interaction where at least two interacting agents share a common set of signs and a common set of semiotic rules.  Types of communication: • Spoken or Verbal communication: face-to-face, telephone, radio or television. • Non-verbal communication: body language, gestures, voice tone. • Written communication: letters, e-mails, books, magazines, information written over the Internet. • Visualization communication: such as graphs, charts, maps, or logos. *
  • 6. Communication Infrastructure Models of communication:  Conceptual models used to explain the human communication process  The first major model for communication was created by Shannon and Weaver (1949) to represent the functioning of radio and telephone technologies.  Initial model was composed of three primary parts: • Sender - the part of the telephone a person spoke into; • Channel – the telephone itself; • Receiver – part of the phone where one could hear the other
  • 7. Communication Infrastructure  Communication is bidirectional  Agents interact and communicate in parallel, permanently alternating their role in these acts of communication.  Destinations provide feedback in the form of a message or a set of messages.  The source of feedback is an information source.  The consumer of feedback is a
  • 8. Communication Infrastructure Disseminate • On multiple channels Listen • For a response on the channels selected Monitor and measure • The impact of the dissemination (and the customer response) React • Respond to
  • 9. Communication Infrastructure Active communication If an agent starts a communication – the agent takes the role of the message sender – we talk about active communication. Example of Active Communication performed by a hotelier on
  • 10. Communication Infrastructure Classification of channels by the type of service they provide: 1. Static Broadcasting 2. Dynamic Broadcasting 3. Sharing 4. Collaboration 5. Group Communication 6. Semantic-based Communication Image taken from:
  • 11. 1. Static Broadcasting• Prehistoric methods of dissemination: cave drawings, stories of triumphs on columns and arches, history on pyramids, stones with messages• More modern means: printed press, newspapers, journals• Online static dissemination: websites and homepages… 11
  • 12. 2. Dynamic Communication Small piece of content that is dependent on constraints such as time, location. Examples of tools (organized considering first the length of message and second – the level of interactivity) • News Feeds • Newsletters • Email / Email lists • Microblogs • Blogs • Social networks • Chat and instant messaging 12
  • 13. 3. Dissemination through Sharing • Can use specialized applications (see below) of features of other platforms and services (e.g. share photos through Facebook) • Examples: – Flickr – as a means of exchanging photos, visible to all users (no account necessary), allows users to post comments; – Slideshare – channel for storing and exchanging presentations; – YouTube and VideoLectures – sharing videos, all users can see the posted videos and leave comments on the 13
  • 14. 4. Dissemination through 14
  • 15. 5. Group Communication Dissemination • Many-to-many • Threaded conversations • Usually created on a particular topic • Have different access levels • Better for disseminating within a group that shares common interests as the purpose of the services is to enable collaboration, knowledge and information sharing and open discussions • Exampled: Google Groups, Facebook Groups, Yahoo! Groups, LinkedIn Groups, Xing Groups. • Similar in many ways to Discussion boards and Internet 15
  • 16. 6. Semantic Based 16
  • 17. Communication Infrastructure Re-active communication Re-active communication describes communication situations initiated by an external agent – the agent takes the role of the receiver and will re-act on the received message. Transmitter: guest at hotel Reactor: hotelierSource:
  • 19. Channels to analyze 1. Social networks, e.g.: • Facebook (Q1 2012): – 526 million daily active users – 3.2 billion Likes and Comments per day – 500K comments per minute – 700K status updates per minute – 80K wall posts per 19
  • 20. Channels to analyze 1. Social networks, e.g.: • Twitter: – 200 million Tweets per day (2011) – 200K Tweets per minute • LinkedIn: 147 million users • Google+: 170 million 20
  • 21. Channels to analyze 2. Sharing networks, e.g.: • YouTube: – 4 billion videos are viewed a day – 100 million people take a social action on YouTube every week (likes, shares, comments, etc) • Flickr: >6.500 new photos per minute • Pinterest: – 13 million users – American users spend an average of 97.8 21
  • 22. Channels to analyze 3. Email lists • 2172 million Email users • 3375 million Active email accounts • 2.8 million emails per second • 90 trillion emails per 22
  • 23. Channels to analyze 4. Group Communication and Message Boards (e.g. Google Groups, Yahoo! Groups, Facebook Groups, etc.) • Forums: 2K posts per minute • Yahoo! Groups: – 9 million groups – 113 million users – 933 thousand unique visitors 23
  • 24. Channels to analyze 5. News feeds • Total Feeds*: 694,311 • Atom Feeds*: 86,496 • RSS feeds*: 438,102 (63% of the total) *source: 24
  • 25. Channels to analyze 6. Blogs: • >95 million blogs available online • 22K posts per minute • Tumblr (Q2 2012): – 55.9 Million blogs – 23.3 Billion posts – 20K posts per minute • WordPress (Q2 2012) – 73.724.911 WordPress 25
  • 26. Channels to analyze 7. Traditional mediums: • TV: – 365 TV channels licensed in Germany • Radio: – 822 Radio stations in Germany • Print mediums (newspapers, magazines) – 382 Daily newspapers in Germany – 4180 Weekly magazines in 26
  • 27. Channels to analyze 8. Online News: • News websites: >25.000 • Online radio stations: >2700 Online radio stations in 27
  • 28. Communication Infrastructure Trace Tracing a conversation through all channels involved is crucial for making communication effective and efficient, and is therefore required for  accurately measuring the impact of information items, and  for a fast re-action time to feedback.  Tracing customer conversation can be done using social media monitoring tools.  Communication has a history  The communication history IS the
  • 29. Communication Infrastructure Multi-channel switch (Online) Communication is scattered over multiple, often very different channels. • Agents are challenged to disseminate information over all appropriate channels. • Activities of all channels the agent is active in must be monitored. • Impact, Feedback and Responses need to be collected from all channels. • Transmitting a message over a channel does not guarantee that the reply will be received on the same channel. • Transmitters must be able to switch cannels properly and identify the channel where the response will
  • 30. Communication Infrastructure Multi-agent switch  Communication requires at least 2 agents: a speaker and a listener  However, communication does not occur in a void – thus the initial model may never occur in real life as there may always be more than one listener or more than one agent.  More agents may be required when the communication receives responses from multiple listeners.  Moreover, due to the lack of time constraints on online conversations (they may begin at any time, and be picked up again at irregular intervals), it may be impossible for a single agent to be on call for every response.  Thus, a client may begin a conversation with one agent, and receive a response for a different one.  The trace plays an important role of preparing agents and ensuring that the proper response is
  • 31. Communication Infrastructure Multi-Channel PublishingSource:
  • 32. Communication Infrastructure Social Media Monitoring Social Media Monitoring is the continuous systematic observation and analysis of social media networks and social communities. It supports a quick overview or insight into topics and opinions in the social web. * * image:
  • 33. Engagement Value-chain generation Engagement Communication Patterns Crowdsourcing Workflow management Communication - Active and reactive - Trace - Multi-channel switch - Multi-agent switch Multi-Channel Social Publishing Media
  • 34. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 35. Workflow management What is Workflow management? • A workflow consists of a sequence of concatenated (connected) steps*. • Workflow management refers to the process of assigning, tracking and responding to social media streams, usually in a team environment in order to prevent double responses and missed opportunities. It is crucial for an enterprise tool to promote team productivity through collaboration . *
  • 36. Workflow management Why do we need Workflow management? • Distribute customer feedback internally based on the content of the incoming/monitored discussions. • Increase the quality of the services and products by communicating the feedback to the responsible employees of the enterprise (i.e. Quality management). • Coordinate and track who at the enterprise is assigned an issue, who said what to whom, who manages what relationships, etc. • Effectively escalate very important issues to a higher support
  • 37. Workflow management Why do we need Workflow management? (cnt’d) • Consider how to get the right information to the right team on an ongoing basis – as volume increases ad hoc methods won’t scale. • Classify and tag posts, adjust sentiment, and route them for follow up and engagement. • Ensure all users have reviewed/closed all posts they are assigned. • Measure which issues closed faster and more efficiently in order to reuse the used strategies in the
  • 38. Workflow management Why do we need Workflow management? (cnt’d) • Exploit the monitoring phase of an enterprise’s strategy in the most efficient way by assigning the appropriate people to take care of the various issues that are coming through the social media monitoring diode. • Establish a collaborative environment around the reputation management of a brand and leverage the effort of each employee to a step towards the enterprise’s public visibility and
  • 39. Workflow management Why do we need Workflow management? (cnt’d) • Quality management The workflow management process supports the quality management activities as: – it is used to circulate to the appropriate persons of the enterprise the different issues that the customers realize and modify whatever is needed to improve the quality of the delivered products and services, – it provides insights about what the customer decides that quality is, and – it facilitates the overall administration of the delivered
  • 40. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 41. Crowdsourcing What is Crowdsourcing? • Crowdsourcing represents the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. This can take the form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals. The crucial prerequisite is the use of the open call format and the wide network of potential laborers. (Howe, 2006)
  • 42. Crowdsourcing What is Crowdsourcing? • Crowdsourcing is the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it to an undefined, generally large group of people in the form of an open call. • The application of Open Source principles to fields outside of software. Howe (2008, 2009)
  • 43. Crowdsourcing Advantages of Crowdsourcing • Get the work done in a cheap way: Similar to outsourcing, crowdsourcing is used to cut costs. Provides a better value for money. • Scalability: Crowdsourcing is able to scale tasks and distribute workload in a human based way and hopefully without any cost (e.g. reCaptcha) • Numerous ideas from numerous people: A large pool of participants leads to more ideas, which increases the possibility to come along an especially smart one. • Fast: It will take less time to find the right person to do the job. In fact it could be almost immediately. • Awareness: Connects businesses to their audiences and
  • 44. Crowdsourcing Disadvantages of Crowdsourcing • Quality assurance: There is little guarantee that the delivered product will be of sufficient quality and efficacy. • Misuse may introduce more problems that it tries to solve: An enterprise should be sure that crowdsources tasks without and confidentiality issues. The fact that you post your task on the web for everybody to see is enough to blow any confidentiality away (e.g. R&D). • Business model integration: Getting a few jobs done via Crowdsourcing seems to be beneficial. However, trying to integrate Crowdsourcing in the existing Business model of a company looks quite
  • 45. Crowdsourcing Examples of Crowdsourcing Application Objective Founder Reward ↑ University CollegeOpenStreetMap Geographic content None London, 2004 Carnegie MellonReCaptcha Digitize archives None University, 2008Mechanical Turk Content analysis and Amazon, 2005 Micro-payments (< 1$)(MTurk) artificial intelligence Humangrid GmbH,clickworker Data analysis approx. €10/H 2005 Problem solving andInnoCentive Eli Lilly, 2001 $1000 – $1000000 innovation projects
  • 46. Crowdsourcing OpenStreetMap • OpenStreetMap (OSM) is an initiative to create and provide free geographic data, such as street maps, to anyone • OpenStreetMap collects and pool geographic data in order to establish a world map under the Creative Commons license. Contributions are voluntary, with no financial reward. • There are no restrictions on who can use the data. Individuals, clubs, societies, charities, academe, government, commercial
  • 47. Crowdsourcing ReCaptcha • ReCAPTCHA improves the process of digitizing books by sending words that cannot be read by computers to the Web in the form of CAPTCHAs* for humans to decipher. More specifically, each word that cannot be read correctly by Optical Character Recognition (OCR) is placed on an image and used as a CAPTCHA. • Each new word that cannot be read correctly by OCR is given to a user in conjunction with another word for which the answer is already known. The user is then asked to read both words. If they solve the one for which the answer is known, the system assumes their answer is correct for the new one. The system then gives the new image to a number of other people to determine, with higher confidence, whether the original answer was correct. * A CAPTCHA is a type of challenge-response test used in computing as an attempt to ensure that the response is generated by a
  • 48. Crowdsourcing Amazon Mechanical Turk • Amazon’s Mechanical Turk is a market in which anyone can post tasks to be completed and specify prices paid for completing them. • The inspiration of the system was to have users complete simple tasks that would otherwise be extremely difficult (if not impossible) for computers to perform. • A number of businesses use Mechanical Turk to source thousands of micro- tasks that require human intelligence, for example to identify objects in images, find relevant information, or to do natural language processing. • Mechanical Turk has more than 500,000 people in its workforce. Their median wage is about $1.40 an hour.* *
  • 49. Crowdsourcing Amazon Mechanical Turk (cnt’d) Jeff Bezos, the chief executive of, has created Amazon Mechanical Turk, an online service involving human workers The Turk, also known as the Mechanical Turk or Automaton Chess Player**
  • 50.
  • 51. Crowdsourcing Clickworker • Clickworker uses a standard web browser to complete tasks on a piece rate basis. Most of these tasks are part of a larger, more complex, project. Task coordination and oversight is conducted utilizing the technology of, which provides the Internet-based workflow system. • Project examples include the processing of unstructured data, such as text, photographs, and videos. • Clickworker can create, categorize, append, capture, and translate. • The platform has more than 210K clickworkers, which are the independent contractors on the platform. • Using special quality assurance procedures such as statistical process testing, audits and peer review and constantly evaluating all output, they ensure top level
  • 52.
  • 53. Crowdsourcing InnoCentive • Leading commercial, government, and nonprofit organizations such as Eli Lilly, Life Technologies, NASA,, Popular Science, Procter & Gamble, Roche, Rockefeller Foundation, and The Economist partner with InnoCentive to solve problems and innovate faster and more cost effectively than ever before. • Total Registered Solvers: More than 250,000 from nearly 200 countries • Total Solver Reach: 12+ million through our strategic partners • Total Solution Submissions: 27,000+ • Total Awards Given: 1,000+ • Total Award Dollars Posted: $34+ million • Range of awards: $5,000 to $1 million based on the complexity of the problem Statistics:
  • 54. Crowdsourcing • InnoCentive does not address potential users but experts • It aims to solve complex tasks and problems that need expertise and innovative approaches. • The InnoCentive platform connects individual innovators (solvers) with applicants (seekers) that are generally
  • 55. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 56. Communication patterns In software engineering, a design pattern is a general reusable solution to a commonly occurring problem within a given context in software design. A design pattern is not a finished design that can be transformed directly into code. It is a description or template for how to solve a problem that can be used in many different situations. So patterns are formalized best practices that you must implement yourself in your application. Based on this definition of Software design patterns we introduce at this point the idea of the communication patterns. Software Communication Design Patterns
  • 57. Communication patterns • The communication patterns could be a way to facilitate the response phase of an enterprise. • A rich set of communication paradigms that address different types of issues by describing workflows of interaction with customers or potential customers. • It should be a dynamic set of patterns in the sense that it is being extended and altered continuously according to the needs of the customers and the nature of the issues that are
  • 58. Communication patterns • There should be an hierarchy among the patterns in order to use the most appropriate one and a mechanism to escalate an issue. • The enterprise should be able to realize the effectiveness of each pattern towards specific types of issues and respectively drop the pattern or give it a better position in the hierarchy. • The communication patterns could be analyzed on a 5-dimensional system as the one that is presented in the following
  • 59. Communication
  • 60. Communication patterns The Who dimension •For any feedback item that is available, someone in the enterprise should be responsible to interact with the customer or the user that gave that feedback or disseminated something related to the brand, products and services of the enterprise. •It is crucial for the enterprise to respond via the appropriate employee to the user. To achieve this the enterprise should have a decent mechanism that could figure out in a semi-automatic way they needs of the user by relying on the content of user’s
  • 61. Communication patterns The What dimension • The What dimension mostly refers to the process of content adaptation. Content adaptation is the action of transforming content to adapt to the needs of the user. Thus, the responsible person (who is specified from the Who dimension) should be able to adapt the existing content, which is available and related to the user’s issue. • Furthermore, there are cases that the response should be different than a reply to the user. Various actions should be taken in order to support and help the
  • 62. Communication patterns The What dimension – Example scenario “Hotel” • A customer faces a problem with the hygiene of his room and tweets about that. • The listening procedures of the hotel capture that tweet and the administrator assigns the issue to the responsible person, who is dealing with the customer services. • The responsible employee contacts the customer at his room and asks him if is everything as it should be and in case there is any problem, they could fix it immediately. An alternative could be to contact the customer and propose him an inspection and a second cleaning session within the next minutes/hours to fix the issue that was publicly
  • 63. Communication patterns The Where dimension • The response of the enterprise to the content of the user, which was spread in the web sphere should be done not only via the appropriate person that could adapt the content in the right way, but it should be realized through the correct medium. • That could be the medium that was used by the user or any other way, which is considered to be more appropriate. • Moreover, there is the possibility to switch between the available mediums (social networks, phone, email, etc.)
  • 64. Communication patterns The When dimension • This parameter reflects the appropriate response time of the enterprise in the bi-directional communication with the user. • The enterprise should be ready enough in order to respond and support the users within the most efficient time span, which depends on the type of the input. • An hierarchy model is needed in order to sort the open issues according to the importance of the discussion for the enterprise. This depends on: – Popularity of the user in the action field of the enterprise – The importance of the issue – Existing data regarding the issue and the
  • 65. Communication patterns The Why dimension • The enterprise should have a set of criteria that could help them decide if a post in the web sphere should be taken in consideration and should be replied or not. • There are some types of posts that the enterprise does not gain any added value by responding. Some of the criteria could be: – Is that person an influencer and active in the area of the enterprise? – Does the post need a reply? (e.g. if it is an online discussion between 2 people, it would be annoying to pop-up in the discussion with the official account of the enterprise.) – Is there any decent answer to the problem or by jumping into the discussion it would be uncomfortable for the enterprise?
  • 66. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 67. Value-Chain generation “A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activities values.”
  • 68. Value-Chain generation • The value chain generation lays on top of the other layers (i.e. workflow management, crowdsourcing and communication patterns) and reflects the aim of the enterprise to monetize their activities through these layers. • The ultimate target for keeping the customers happy and engaged to the brand is to increase the revenue. Thus, it is important to have a layer on top of the communication that transforms long-term relationships into economic transactions and new opportunities for the enterprise. • For example, for a hotelier this layer could be the book-ability of his
  • 69. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 70. Engagement Value-chain generation Engagement Communication Patterns Crowdsourcing Workflow management Communication - Active and reactive - Trace - Multi-channel switch - Multi-agent switch Multi-Channel Social Publishing Media
  • 71. Engagement • Though the previous sections (1,2,3), it has been extensively discussed the way the online communication has changed and how do people create and disseminate content. • Web 2.0 has radically changed our communication possibilities. • Discussion forums or blogs are spaces where people can communicate and socialize in ways that cannot be replicated by any other offline interactive medium. • The rise of user generated content can take advocacy to another level. • Considerable bargaining power has been shifted from the supplier to the consumer. • Fragmentation and specialization of media and audiences, and the proliferation of community – and user generated content, business are increasingly losing the power to dictate the communications
  • 72. Engagement • Engagement is very much a personal thing, and that means personal to the enterprise, too. • Making sense of online engagement needs to include discussions around employee engagement policies and guidelines, the establishing of process around engagement that make it scalable throughout the enterprise, and, most importantly, and the framing up of what engagement actually means in the context of the enterprise’s business. • The enterprise should treat each single customer in the appropriate way, which is specified implicitly by the
  • 73. Engagement Engagement process = Infinite loop between the listening and responding steps, interweaving publishing and listening Listen  Analyze  Understand 
  • 74. Engagement • The Listen and Analyze steps are covered by the tools that was presented thoroughly in the 2nd section, ―Social Media Monitoring‖. • The rest of the steps are addressed by the layers: ―Workflow management‖, ―Crowdsourcing‖, ―Communication patterns‖ and ―Value-chain generation‖. – Workflow management: Gives the ability to the enterprise to trace and distribute the feedback internally to the responsible persons. – Crowdsourcing: Enables the enterprise to complete tasks that need the human intelligence and do not scale easily. – Communication patterns: Provides a reusable set of communication templates that can be used during the response phase. – Value-chain generation: Reflects the aim of the engagement, which is the increase of the economic transactions (e.g. in the tourism sector, the bookings)
  • 75. EngagementA possible stack of Engagement stages* could be the followingStage DescriptionNew Content Not reviewed Default when an on topic post is foundReviewed, Determining Best Response Qualified post, assigned to appropriate employee for possible responseRecommend Follow up To be managed by assigneeCommented, Awaiting Reply To be managed by assigneeCommented Closed To be managed by assigneeReferred To be managed by assigneeResolved, no further action required To be managed by assigneeReviewed, Closed, no response needed To be managed by assignee *Radian6 – Engagement playbook
  • 76. Engagement Benefits of Engagement •Lower switching costs, the geographical widening of the market and the vast choice of content, services and products online have weakened customer loyalty. Engagement addresses this problem. •Customer satisfaction: Satisfaction is simply the foundation, and the minimum requirement, for a continuing relationship with customers. •Word of mouth advertising / advocacy •Awareness - effectiveness of communication •Filtering: Consumer rates and categorize the market •Marketing intelligence: Highly engaged customers can give valuable recommendations for improving the quality of the products
  • 77. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 78. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 79. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 80. Definition • Advertising is a form of communication used to encourage or persuade an audience to continue or take some new action. • Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. –
  • 81. Example • Conventional advertising media include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, etc. • New and additional advertisement channels are used, e.g. on the Web, social media, mobile advertisement – Sharma, C., Herzog, J., Melfi, V. ―Mobile Advertising: Supercharge Your Brand in the Exploding Wireless Market‖, Wiley, 2008.Advertisement
  • 82. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 83. Definition CRM is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes — principally sales activities, but also those for marketing, customer service, and technical support. – Shaw, Robert, Computer Aided Marketing & Selling (1991) Butterworth Heinemann ISBN 978-0-7506-1707-9CustomerRelationship by ERP Softwaresmanagement
  • 84. Example • Overall, technically, includes channel management, such as managing phone, SMS, sending customers birthday cards, etc. • Social CRM: The era of the "social customer― refers to the use of social media (Twitter, Facebook, LinkedIn, Yelp, customer reviews in Amazon, etc.) by customers in ways that allow other potential customers to glimpse real world experience of current customers with the sellers products and services, thus make purchase decisions informed by other parties sometimes outside of the control of the seller or sellers network. – Greenberg, Paul (2009). CRM at the Speed of Light (4th ed.). McGraw Hill. p. 7.CustomerRelationshipmanagement
  • 85. Use of Engagement Tools • Many CRM vendors offer Web-based tools (cloud computing) and software as a service (SaaS), which are accessed via a secure Internet connection and displayed in a Web browser. – These applications are sold as subscriptions (customers do not need to invest in purchasing and maintaining IT hardware). • Setting up a right strategy: timely and direct interaction with customers via the proper way and extent (channel, timing, content) is needed • Holistic customer relationship strategy that is highly customized, up to the level of individual customers is needed • Choosing the right software: currently the landscape is littered with instances of low adoption rates – In 2003, a Gartner report estimated that more than $1 billion had been spent on CRM software that was not being usedCustomerRelationshipmanagement
  • 86. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 87. Definition • Yield or revenue management ―is an economic discipline appropriate to many service industries in which market segment pricing is combined with statistical analysis to expand the market for the service and increase the revenue per unit of available capacity‖ –, and Revenue_management • The goal of yield management is a short-term increase of income – a valid target for a business entityYieldmanagement
  • 88. Example • Hotels are confronted with a multitude of online booking channels. • Hotels should provide their available rooms and their rates to most if not all of them to prevent not meeting their potential customers. • In many channels, visibility is achieved through low prices. – However, often channels also require constraints on the price offers in other channels. • Some channels generate costs without guarantying actual income.Yieldmanagement
  • 89. Use of Engagement 3.0 Tools • Many solutions to yield management are based on complex statistical methods and complex domain assumptions on how variation of the price can influence the amount of bookings of a service • However, a multi-directional multi-channel approach also must rely on Swarm intelligence. Observing in real time the reaction of customers and competitors will be the key to achieving on-line marketing. Adopting your offer and your price dynamically in response to the behavior of your (on-line visible) environment will become a key for economic success • Yield management could be realized utilizing reputation and usage values collected from different channelsYieldmanagement
  • 90. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 91. Definition • Brand – ―a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers” – American Marketing Association, • Brand management –―the art of creating and maintaining a brand”Brandmanagement
  • 92. Example • Brand ―Tirol‖: “Wer Tirol hört, denkt an Berge. Berge, in denen man im Sommer wandern und im Winter Ski fahren kann. Und das wird auch in Zukunft so bleiben. Aber Tirol bietet mehr als nur Berge. ...” - • Brand ―Red Bull‖: most expensive Austrian brand, valued at 9,984 billion dollars and world-wide ranked as no. 80 (2012, BrandZ agency study)Brandmanagement
  • 93. Use of Engagement 3.0 Tools • Modeling communication, communication channels and target groups bears inherently the advantage of uniformly accessing the provided data and thereby allowing beyond state of the art processing of the data • Human computation could increase the process where automated algorithms lack of efficiency, for example the translation of communicated content to other languages • Potential of crowd sourcing, word-of-mouthBrandmanagement
  • 94. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 95. Definition • Reputation – ―the beliefs or opinions that are generally held about someone or something” • Reputation management – monitoring and pro-actively influencing and thereby shape an entities reputation • Online reputation management (or monitoring) is the practice of monitoring the Internet reputation of a person, brand or business, with the goal of suppressing negative mentions entirely, or pushing them lower on search engine results pages to decrease their visibility. – New York TimesReputationmanagement
  • 96. Example • Reputation of a company can be viewed as one of its most important assets such as its capital – this dimension interferes with revenue management EU parlament • Maintenance and increase the appreciation an organization or a topic or a certain approach gains in the public on long-term are neededReputationmanagement
  • 97. Use of Engagement 3.0 Tools • Introducing a domain specific, channel independent model that explicitly separates content from channel, then intelligently interweave the content with the channels again & use that for campaigning. • Estimating the reputation and impact on all of the channels (e.g. by statistical analysis of online content) – For example, more than 90% of all Internet users are already reading product reviews and more than 50% indicate that they base their purchasing decisions mostly upon them. • The abstraction layer allows multi channel communication in a holistic approach. • Providing means to increase the effectiveness and efficiency of public campaigns is needed.Reputationmanagement
  • 98. Conclusions • There exist many application fields for engagement: – Advertising – Yield management – Customer Relationship management – Brand management – Reputation management • There are numerous challenges in new technology (e.g. transition to many new numerous channels) and part of them are technical, while part is managerial and creative => cooperation across interdisciplinary activity fields is required • There are much more management types that were not mentioned in this piece of work (e.g. Quality management) but are still important.Reputationmanagement
  • 99. Application Types CustomerAdvertisement Yield Brand Reputation Relationship management management management management Quality management
  • 100. Definition • An organization or product should have four main components: quality planning, quality control, quality assurance and quality improvement. • Since the organizations depend on their customers, they should understand current and future customer needs, should meet customer requirements and try to exceed the expectations of customers. • One of the permanent quality objectives of an organization should be the continual improvement of its overall performance. Qualitymanagement
  • 101. Example • Quality control is very important for hotels and one of the ways to realize it is through the customers. • Engaging with customers is not only about keeping them happy but also using their information to control the quality of the offered services and improve them. Qualitymanagement Picture taken from
  • 102. Engagement Overview 1. Communication infrastructure 2. Workflow management 3. Crowdsourcing 4. Communication patterns 5. Value-chain generation 6. Engagement 7. Application types 8.
  • 103. Summary In the new era of Engagement between enterprises and customers: • The enterprise should incorporate social channels into the customer communications. • The strategies to be considered should be multichannel (combining social and traditional) and appropriate to the channels that the customers want to communicate in. • It is clear that the CRM and the Social CRM solutions should be integrated with the communication (i.e. listening and response) platform of the enterprise in order to put the customer at the focal
  • 104. Summary In the new era of Engagement between enterprises and customers (cnt’d): • The effective communication with the customers establishes long-term relationships with them and turns customers into advocates. • The power of the ―word-of-mouth‖ has become important as much as it used to be in the small town ecosystems of the past. • Enterprises invest their resources in the communication with the customers in order to make them feel important and engage them to the products and services they