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The Future of Customer Engagement


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Customer Engagement is now becoming a widely used term within Marketing, but what does it actually mean? This presentation aims to clarify what customer engagement is and reinforce the importance of cross-channel collaboration. It focuses on identifying the challenges faced by organisations striving to achieve this level of engagement and how they can be addressed.

Published in: Technology

The Future of Customer Engagement

  1. 1. The Future of Customer Engagement Mark Galvin Product Marketing Manager
  2. 2. The Future of Customer Engagement• Focus of today’s session: – What does customer engagement really mean? – Identification of the challenges in delivering customer engagement – How these challenges can be addressed? – Are you ready to engage?
  3. 3. What does Customer Engagement really mean?
  4. 4. Quick Questions• Raise your hand if you use a Social Network, e.g. Facebook, Twitter or LinkedIn?• Raise your hand if you have both a business and personal email account?• Raise your hand if you access the internet via a mobile device, e.g. iPad, iPhone, Blackberry, etc.
  5. 5. What does customer engagement really mean?Marketers cannot ignore the influence of social media• Online user reviews have a huge influence on consumer electronics purchases, with 43.7% of purchases affected by word of mouth. SOURCE: BIGresearch as cited by, December 2009• According to Forrester, nearly 45% of European Internet users say that in the past three months • 84% of consumers said they they have researched a product were more likely to check online online and then bought it in a shop. for reviews prior to making a SOURCE: Forrester, March 2009 purchase compared to twelve months ago, SOURCE: Brand Reputation (Retail Bulletin, October 2009)
  6. 6. What does customer engagement really mean?Social media is everyday activity for millions of people As of July 2010, 500 million people worldwide were actively using Facebook, up from 400 million in February 2010. Half of Facebook users log onto it everyday. More than 35 million update their statuses at least once a day. The average user spends 55 minutes per day on Facebook and has 130 friends. SOURCE: The Facebook Blog, July 2010
  7. 7. What does customer engagement really mean?For every active participant there are more watching…Three years ago, only 9% of all UK internet timewas spent on social networks & blogs (this equatesto 1 minute in every 11). Since 2007, this sector hasgrown and now accounts for nearly 23% of UKInternet time – the equivalent of 1 in every 4.5minutes.SOURCE: UKOM, May 2010 In August, 10.4m individuals visited the YouTube Homepage SOURCE: UKOM, August 2010 Social networking now accounts for nearly a quarter (23%) of all time spent online SOURCE: Ofcom, August 2010
  8. 8. What does customer engagement really mean?Consumers are evolving… e‐Dialog global consumer attitudes survey of 13,000  consumers  worldwide ‐ June 2010  When asked which account types they owned... Social Media: 49% (UK) 56% (US) Work Email: 26% (UK) 34% (US) Personal Email: 97% (UK) 98% (US)
  9. 9. What does customer engagement really mean?Consumers are evolving… “Today’s empowered consumers  “Consumers have changed.  We  hold a deep rooted cynicism  are in the midst of a major  towards companies: 60% of  social change in the way  respondents felts that ‘companies  consumers listen and engage  with brands.  The landscape has  are only interested in selling  changed from campaign  products and services to me, not       management to customer  necessarily the product or service  engagement.” that is right for me’”“Individuals are becoming increasingly used to interacting with content, rather than passively receiving messages.  Businesses now must listen, learn, understand and speak with their customers on an individual level.” Source: Alterian Brands at Risk Study
  10. 10. What does customer engagement really mean?Consumers are evolving…• Social Changes & customer demands and driving  marketing • Digital channels are used to research products / services before making a  purchasing decision • How a company or its products and services are perceived are highly  influenced by social media sites and the web • If a brands messages are inconsistent across channels, it causes confusion • Relevance of messages is key to ensure consumers do not “switch off” or  “tune out”• Consumers control when they want information, and how they  wish it to be delivered• Consumers require brands to understand their needs and  engage, not broadcast their messages
  11. 11. What does customer engagement really mean?Consumers are evolving……So Marketing in turn needs to changeCustomer Engagement means marketers can Listen, Learn, Understand and Speak across multiple channels in a relevant and engaging way with individual customers.It means that marketers can communicate with the right audience at the right time with the right messages via the right channels and in the right tone of voice.
  12. 12. Identification of the challenges in delivering customer engagement
  13. 13. Quick Questions• Raise your hand if you use Web Analytics against your businesses website?• Raise your hand if you are working with Social Media as a channel?• Raise your hand if you are able to leverage the data captured via these channels in your core customer communications?• Raise your hand if Web Analytics, Social Media, Email and Traditional Channel campaign management is managed by more than one department?
  14. 14. Identification of the challenges of delivering customerengagement• Organisational Challenges – Point solutions are often purchased and managed in departmental silos – Messages on Website, Social Media, Email Communications and traditional direct channels (Direct Mail, Outbound Telemarketing) are often inconsistent – Marketing and IT often source their own solutions rather than working collaboratively for a “joined-up end goal” – Lack of skills internally to make best use of technology investment; both in terms of function and strategic vision
  15. 15. Identification of the challenges of delivering customerengagement• Operational Challenges – Marketing often have no campaign view of activities across all channels • Downside of using “point solutions” vs. integrated solutions • No single campaign flow view of phased communications • Difficulties implementing contact lifecycles – Digital Channel data often requires integrating with core marketing data and is not easily leveraged by users – Difficult often to compare the effectiveness of customer engagement across channels – Difficult to measure the impact of one channel vs. Another – Difficult to understand the requirements of emerging channels to understand how it can be incorporated into core marketing processes
  16. 16. How these challenges can be addressed?
  17. 17. How can these challenges be addressed?• Answering Organisational Challenges – Establish a collaborative approach to running through Marketing Plans inc. relevant departments such as Marketing, IT and Sales • This will support technology investment which will meet long term goals of sales and marketing and involve IT expertise – Not all perceived technical functions are solely reliant on IT to manage, solutions can make complex tasks simpler to undertake • Technology is your friend – there are many solutions that enable more control by marketing – Regularly share planned campaigns and key messaging between relevant departments • Inconsistent messaging confuses customers and this can lead to lack of trust – Working collaboratively enables stronger business cases to be built for procurement of software and services that meet your needs • Operational and Technical needs drive home the messages to your senior stakeholders of what value investments will bring
  18. 18. Identification of the challenges of delivering customerengagement• Answering Operational Challenges – Move away from traditional purchase cycles of standalone campaign management tools • look for new age tools that focus on delivering customer engagement leveraging all channels, not just traditional • Avoid costly integration costs and data that is not optimal for use in campaign targeting and measurement – If you have already invested but need to incorporate data from other channels: • Work collaboratively with IT to understand what data is captured; how it can be integrated with core marketing data • Identify how to link online data with offline data, URN’s, email addresses, ip addresses and social media handles – If you don’t have these – identify campaigns to capture missing information to build out your customer blueprint • Define realistic metrics that you can incorporate into your cross-channel campaign performance reporting
  19. 19. The Proof is in the Pudding... ‘ directors are being dazed by data….’ ‘….If other departments take control of customer insight then marketing is in danger of losing its power tool…’ Survey of 600 CMOs and CIOs 60% of the CIOs claimed to own the companies digital marketing 70% of the CMOs making exactly the same claim. ‘’…unless marketers learn to disseminate technical information their jobs may become redundant…’’ ‘’ …it’s about how you use the data, not taking 3 months to learn something from it…’’
  20. 20. Are you ready to engage?
  21. 21. Are you ready to engage?• Before embarking on a journey to achieve full customer engagement, work out where you are in achieving this?• Customer Engagement is achievable in many ways that can be addressed in “bite size” chunks – There are solutions that can support a “start small, think big approach” – Invest wisely in technology that can grow with you to avoid costly integrations in terms of data and software Look at this marketing maturity model to see assess your current level of customer engagement... and more importantly, where you want to be...
  22. 22. Customer Engagement Maturity Model $ Level 4 Engagement Level 3 Value Personalization to theBusiness Level 2 Segmentation Level 1 Mass Marketing Time Product Market Consumer Individual Business Strategy
  23. 23. Summarisation• What does customer engagement really mean? – Management of inbound and outbound communications – Leveraging all available channels – Consistent of messaging, across channels – Individualising communications
  24. 24. Summarisation• Identification of the challenges in delivering customer engagement – Departmental Silos – Lack of alignment in business processes and “joined up goals” – Inconsistent channel messaging – Internal skills / channel strategy vs. Communication strategy
  25. 25. Summarisation• How these challenges can be addressed? – Working collaboratively on technology investment, eliminate silos – Working collaboratively on messages across all channels, web vs. direct comms – Establish who is the “owner” – Empower users both in terms of data / technology – Establish value of data to the business before embarking on costly integrations / invest wisely
  26. 26. Thank you for your time. I will be on Stand E18 if anyone would like to discuss this further.UK/EU: +44 (0) 117 970 3200 | NA: +1 312 704 1700 | Asia/Pac: +61 (2) 9968 2449 Web: | Blog: | Twitter: Alterian_plc Slideshare: Alterian | YouTube: engagingtimeslive | Facebook: The Real Alterian