Measuring and Driving Customer Engagement        Voice of the Customer Conference                  Michael Pace           ...
Constant Contact (CTCT) Overview                                          Our Mission: Help small organizations create and...
Our challenge?             Continued success in             customer acquisition, but             Growing numbers of      ...
How do we define “Engagement”?                                                Committed to a long-term relationship       ...
Organizations that create a high level of engagementwith their customers are more successful than thosewho don’t!         ...
Why Customer Engagement is critical to our long-  term success                                       We believe successful...
So what is CSI?      Q: Is it something that predicts future          behaviors?      A: It’s a measurement of a customer’...
What makes up the overall CSI score?        Mailing                              List                                 Prod...
CSI wrapped around our Product, KnowHow, and   Coaching with a Personal Touch enable CTCT to:      Target our customers w...
CSI scoring helps Constant Contact better engagewith their customers in three ways      Helps Sales with onboarding new c...
At CTCT, the correlation between CSI scores andcustomer attrition is very strong                      % of Customer Base  ...
Engagement coupled with Satisfaction represents the“perfect marriage”                                               Brand ...
Future steps include using customer’s social graphs to understand how loud they can speak their mind                      ...
Contact Info               Michael Pace          Director of Customer Support &               Community Management        ...
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Measuring and Driving Customer Engagement

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Developed by Larry Streeter and myself to show a different way to measure customer engagement by using customer behavioral actions.

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  • There is a powerful link between engagement and business outcomes
  • Hubspot’s CHI is an innovative way to objectively measure behavioral actions by a customer.Larry Streeter and I worked on what the CHI model would look like if you added in traditional satisfaction scoring (NPS or C-SAT). Adding subjective scoring provides a customer’s “trust” score of your organization. The two combined create a power way to determine possible next steps to take with customer.
  • During my conference speaking adventures, I was thinking about emotional/behavioral scoring, with the additional of understanding the customer’s ability to project/promote/propel your organizations reputation (Amplitude).Amplitude can work with or against an organization depending on where the customer fits in the prior scoring model.
  • Measuring and Driving Customer Engagement

    1. 1. Measuring and Driving Customer Engagement Voice of the Customer Conference Michael Pace Director of Customer Support & Community Manageement Constant Contact September 20, 2011CONFIDENTIAL Copyright © 2011Constant Contact, Inc.
    2. 2. Constant Contact (CTCT) Overview Our Mission: Help small organizations create and grow customer relationships Our Market: 25M small businesses, non-profits and associations, 500K customers today Our Product: Suite of marketing tools including email marketing, online survey, and event management Our Business Model: SaaS software with a monthly subscription fee Our Success Formula: Great product backed up with KnowHow and coaching with a personal touchCONFIDENTIAL Copyright © 2011Constant Contact, Inc. 2
    3. 3. Our challenge? Continued success in customer acquisition, but Growing numbers of customer attrition !CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 3
    4. 4. How do we define “Engagement”? Committed to a long-term relationship Proactively involved Emotionally, psychologically, and physically connected Simply “Satisfying” customers is not enough  Customers may be pleased with your service or product but lack an emotional connection to your company  Can result in customer attrition for minor reasonsSource; “Measuring Customer Engagement”, a commissioned study conducted by Forester Consulting on behalf of Adobe Systems Inc., May 2008CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 4
    5. 5. Organizations that create a high level of engagementwith their customers are more successful than thosewho don’t! Fully engaged customers represent an average 23% premium in terms of share of wallet, profitability, revenue and relationship growth Actively disengaged customers represent a 13% discount in those same measuresSource: Customer Engagement, What’s Your Engagement Ratio?, Gallup Consulting, 2009CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 5
    6. 6. Why Customer Engagement is critical to our long- term success We believe successful use of our products and services (as measured by engagement) will compel our customers to stay longer, buy more, and advocate for CTCT. The challenge is to develop an engagement score, all inclusive of the key metrics that measure and drives a customer’s engagement with CTCT’s products and services. The goal of our Customer Success Index (CSI) is to put a tool into the hands of those employees who influence customers that provides clear direction for educating and coaching them toward a higher level of engagement.CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 6
    7. 7. So what is CSI? Q: Is it something that predicts future behaviors? A: It’s a measurement of a customer’s level of engagement at any point in time. Q: Is it a complex, multivariate, canonical correlation analysis of discriminant, recursive clusters? A: It’s a simple summation of multiple engagement scores Q: Is it something our customers would find difficult to follow? A: All components of the CSI score must be actionable!CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 7
    8. 8. What makes up the overall CSI score? Mailing List Product Results CSI Activity Activity Usage Score Dimension X Dimension X Dimension X Dimension X Dimension Y Dimension Y Dimension Y Dimension Z Dimension Z Dimension Z Additional * Under consideration Assets Dimension Dimension Dimension Etc. X Y ZCONFIDENTIAL Copyright © 2011Constant Contact, Inc. 8
    9. 9. CSI wrapped around our Product, KnowHow, and Coaching with a Personal Touch enable CTCT to:  Target our customers with specific, prescriptive actions that put them on and keep them on the “happy path”  Provide employees with actionable insight on how best to influence engagement  Put our customers in the best possible position to become successful engagement marketersCONFIDENTIAL Copyright © 2011Constant Contact, Inc. 9
    10. 10. CSI scoring helps Constant Contact better engagewith their customers in three ways  Helps Sales with onboarding new customers  Enables Marketing to target customers with more tailored messages Enhances Support’s ability to coach customers to maximize the benefit of our productsCONFIDENTIAL Copyright © 2011Constant Contact, Inc. 10
    11. 11. At CTCT, the correlation between CSI scores andcustomer attrition is very strong % of Customer Base Attrition Rate 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100 Attrtion % % of CustomersCONFIDENTIAL Copyright © 2011Constant Contact, Inc. 11
    12. 12. Engagement coupled with Satisfaction represents the“perfect marriage” Brand Advocates / A subjective Inactive Fans and Champions NPS/C-Sat emotional score provided by customer – measures Lower Interest Active Participants depth of relationship CSI Score An objective and behavioral activity/engagement score – measures interaction
    13. 13. Future steps include using customer’s social graphs to understand how loud they can speak their mind Customer’s ability to project Brand emotionalA subjective Inactive Fans Advocates / sentiment & and Champions activity NPS/C-Sat emotional through score social graphprovided bycustomer – measures Lower Interest Active Participants depth ofrelationship CHI Score An objective and behavioral activity/engagement score – measures interaction
    14. 14. Contact Info Michael Pace Director of Customer Support & Community Management Constant Contact Twitter: @mpace101 LinkedIn Blog: www.thepaceofservice.com Text: SOCSERVICE to 22828 14

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