1. Engagement refers to the level of interaction and commitment customers have with a brand, and can be measured through behaviors like email opens, clicks, and transactions. 2. Customer engagement is important because highly engaged customers are more loyal and profitable, acting as brand advocates who increase revenue and market share through referrals. 3. Measuring and quantifying customer engagement through profiling algorithms allows companies to better understand customers, customize campaigns, and reconnect with less engaged customers, helping to drive business goals like increased revenue and stronger customer relationships.

1. How engaged are your customers, how do you know and why should you care?
Tony Kent - Sign-Up.to

3. 1. How engaged are your customers, how do you know and why should you care?

4. Engagement
en·gage·ment [en-geyj-muhnt]
Noun
Ah yes , and ..
What is engagement?

5. Specifically .. customer engagement
Engagement a pledge, an obligation or agreement the act or state of interlocking
• Bringing customers close to your brand
• Developing a high quality customer relationship
• Creating a state of mutually valuable interaction ..
your

6. What are the characteristics of engagement?

7. Specifically .. e-marketing engagement
Typical email engagement characteristics
•Highly engaged - Regular open, click through and transact - Brand champions to peers and colleagues
•Passive - Opens, irregular visit, average/low completion
•Disengaged - Habitual non-read/delete, no recent purchase
•Lost (unsubscribed)- No interest, potential brand detractor ..

8. Where to start?

9. Permission
Permission is the foundation of engagement
The way to make advertising work again “the privilege (not the right) to delivering anticipated, personal and relevant messages to people who actually want to receive them” ..
Turning strangers into friends and friends into customers

10. How engaged are your customers, 2. how do you know? and why should you care?

11. Observe their behavioural characteristics

12. Quantify – measure Absolute, Relative, Dynamic

13. Engagement profiling
Profiling for “precision marketing” – collecting insight
•Engagement is 1 of 5 profiling “dimensions”
1.Engagement
2.Geo-location
3.Profiles
4.Frequency
5.Lists

14. Engagement profiling
Dimensions and Audiences
•Dimensions are used to create segmented data “audiences”
•Audiences are a dynamic data segmentation
•Audiences can comprise 1 or more profile dimensions
•Include/exclude type operations

15. How do you quantify the dimension of engagement?

16. Engagement profiling
Engagement scoring algorithm
•In-house developed engagement algorithm
•Implemented across all current Sign-Up.to customer accounts and back-played over historic campaigns

17. Engagement profiling
Engagement scoring algorithm
•Automatically measures quality of e-relationship over time
•Based on multiple parameters including ..
•Frequency of interaction
•Quantity of interaction
•Type/quality/depth of interaction

18. Engagement profiling
What you need to know ..
•5* Highly engaged
•3* Average
•1* Disengaged
•Initial subscription = 3*
•Score increases with +ve subsequent behaviour
•Score decreases with –ve behaviour and time ..

19. Engagement profiling
Engagement algorithm – some background
•Starring bands are based on both theoretical and matched empirical data
•Bands 1*-5* are non-linear between min & max (for accurate reflection across range of scenarios)
•Campaign interactions (open, click, forward, complete) are given weighted engagement increments
•Opt-in completion is a key engagement indicator ..

20. Engagement profiling
Engagement algorithm – some more background
•Multiple single campaign interactions gain additional engagement increments
•Passive engagement is considered a long-term negative
•Non-engagers progressively decay in their star rating over time
•Habitual non-engagers decay proportionately more rapidly ..

21. Advantages
•Quantitative measure of an abstract concept
•Multi-input algorithm provides a holistic view
•Automated process – parameters are updated automatically as campaigns are executed
•Rating is dynamic – results are continuous
•Legacy data included from replayed historic campaigns
•Engagement score is available for use in segmenting data and targeting future campaigns ..
Engagement profiling

22. 0
500000
1000000
1500000
5*
4*
3*
2*
1*
Typical engaged audience profile
Characteristics
• Engaged
• Regular communication
Subscribers building
• Lots of highly engaged
subscribers
• Proportion of highly
engaged subscribers
increasing over time ..

23. Typical disengaged audience profile
0
500000
1000000
1500000
2000000
5*
4*
3*
2*
1*
Characteristics
• Disengaged
• Irregular communication
produces spiky profile
• Subscribers building but..
• Engagement diminishing
over time
• 1* subscribers increasingly
dominant

24. eCommerce/retail
eCommerce/retail
Case study engagement profiles

25. Case study profiles
eCommerce/retail
Publisher

26. Case study profiles
Financial services
Events/Promotion

27. Using engagement
Ability to collect insight for enhanced subscriber intelligence
•Understand the relative engagement of: 1. your overall subscriber data 2. specific subscriber groups 3. individuals within your audience…

28. Using engagement
Ability to collect insight for enhanced subscriber intelligence
•Gain a better understanding of specific and long-term campaign performance
•Create audience list segmentation – for future campaign use
•Integrate into your CRM for sales intelligence..

29. Using engagement
Customise campaigns for specific behaviour groups
•Reward, nurture and re-engage
•Use to reward and progress engaged subscribers - Loyalty schemes, VIP offers
•Use to nurture average engagement subscribers - Entice with upsell promotions
•Use to re-connect with disengaged subscribers - re-engagement campaigns, different messaging, offers, returning discounts, welcome emails ..

30. Reconnecting with low engagers
UK B2B services company - Management and organisational development seminars - Online and telephone booking - Around 900 email addresses - Send around 4,500 emails per month

31. Reconnecting with low engagers

32. Reconnecting with low engagers
•Subscription renewal
•2,500 subscribers
•1-3* rating
•Low open rate
•Typical 10% open
•3% renewals rate
•Now 20-30% with cleaned data

33. Reconnecting with low engagers

34. Rewarding high engagers
Ticketing site for television and radio audiences Very frequent emailer Over 1 million subscribers

35. Rewarding high engagers

36. Rewarding high engagers
Sweat the small stuff Comedy panel show Multi-touch promotional campaign Personal guest list promotion to VIP customers

37. Rewarding high engagers
•Average open rate 18%
•307,000 5* sends from 1.4 million (20.7%)
•Valued members campaign open rate 61%

38. How engaged are your customers, how do you know 3. and why should you care?

39. Look beyond the marketing benefits

40. Why should you care?
Directly impacts 5 of top 10 business challenges ..
•Increasing revenue and profits
•Growing customer base and market share
•-
•Positioning, boosting brand and reputation
•-
•-
•-
•Enhancing customer experience and relationship
•-
•Sustainability, long-term commercial outlook

41. Why should you care?
Engagement impacts top 10 business challenges ..
•Increasing revenue and profits
•Growing customer base and market share
•Managing costs, maximising investment ROI, value
•Positioning, boosting brand and reputation
•Increasing competitiveness
•Skills shortages and talent management
•Managing compliance, risk, continuity and regulatory issues
•Enhancing customer experience and relationship
•Operational excellence and profitability – lean, agility
•Sustainability, long-term commercial outlook

42. Why should you care?
Engaged customers drive sustainable revenue ..
•Good news for your future business
•Successful companies look at the initial sale as a way of earning a lifelong customer (Sage)
•Loyalty is a hugely powerful buying factor
•Loyal customers typically account for 80% of profit
•Increased engagement increases resale and upsell from 30%-50% (Forbes)

43. Why should you care?
Engaged customers are your brand advocates..
•Good news for your brand
•Engaged customers are valuable brand advocates
•(.. check your Net promoter Score, for % brand advocates and detractors)
•Their networks significantly increase your own marketing reach
•83% of satisfied customers are willing to refer
•Referral – 65% of new business comes from referral (NYT)

44. Why should you care?
Engaged customers drive revenue ..
•Good news for your Sales team
•New customer acquisition costs are high
•Customer retention is good sales-sense
•Referred prospects have far higher closure potential(>50%)
•Repeat customers spend more and are typically less price sensitive
•Returning customers spend more on each subsequent transaction ..

45. Good news!

46. •Software developer & service provider
•Hospitality, Retail/eCommerce, Events, Public ..
•100% Permission based Specifically high-engagement, targeted, relevant
•Self-service platform – Email, SMS & social media
•Professional management services
Who are Sign-Up.to?

47. Free guides - www.signupto.com/resources
• 2014 UK email benchmark report
• Precision marketing using audience dimensions Free seminars - www.signupto.com/resources/events
• Discovery morning (27-Nov) – London Copy of presentation slides tony@sign-up.to Or visit us on stand A60
Further resources – stand A60