Gabe Joynt - Razorfish


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The Customer Perspective - The 6 Elements of Engagement

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  • How do you get to a point where you know which flavors you need to offer. Customer point of view. Baskin Robbins offers 31 flavors…
  • The answer is that social is first and foremost on our minds, yet we need to remember three very key points (1) Although adoption rate is high, not everyone is using social at this point. (2) Of those using social want to engage with you through social. (3) Social is driving the change in what people expect when they engage with your brands regardless if it is a social channel or some other channel. So the answer is: we need to start by asking customers which flavor they want….. So how do you prioritize to determine which flavors to focus on first?
  • Enter in Virgin America. They, like you, are an ice cream shop trying to figure out what flavors to offer. And they know their guests (who tend to be more highly educated and more technologically savvy then most) are pushing the envelope every day so they need to fight to stay ahead of them. So when we approached them and explained we believed that instead of looking this from a marketer ’s perspective, we should look at from customer’s perspective – ask them what they really want. What they did, what they said. Virgin America jumped on the opportunity, and had us work with their loyalty platform provider Loyalty Lab to gain full, unfettered access to their customers and their customer data. Tell the story without the slides. We did this for Virgin. We found the importance was different then what we expected. Case study: Single slide: We did this for Virgin. This was surprising for the following reasons. 40k foot view on Virgin. One-sheeter. A couple deep dives on the highlights. Most important is the archetypes and how tailoring. CRM We know this, we know that. But the solution is the archetypes. Let ’s walk you through it and how it applies to Virgin. Helps prioritize, know how it falls into quadrants, and how you create strategies against them.
  • How do you measure satisfaction? Based on the research we performed, we believe these six Engagement Elements to be the DNA of every engagement. Now do all six need to be present? Not necessarily and we ’ll be doing more research on this. Yet, you’ll see in a moment how it is quite interesting to look at the channel importance slide and the engagement elements by channel slide side-by-side (we’re going to hand them out to you in a moment) and look to see how they correlate. So to reinforce the customer-centric approach, engagement to your customers isn ’t driven by impressions, clicks, time on site, reach, etc. Expectations for each engagement is high and will vary based on scenario. If asked in general what consumers feel is important when engaging with a brand this is the list. All six are important. Yet, regardless of age, technographic, or any other segmentation, they always ranked in this order.
  • We tackled this ice cream challenge from multiple angles. (1) Interviewed and survey Virgin America ’s customers (over 5000), (2) assessed their social graph presence through a data overlay from Rapleaf, and (3) incorporated actual engagement data such as email campaigns received, loyalty program memberships, and PLCC owners, etc. Briefly and in basic language describe how we brought the data together.
  • What we find was incredibly interesting and we believe a good start at gaining insight into what our consumers are thinking, what channels are important to them, which ones are not (because they are just not that important, the adoption rate is not there yet, or the experience at this point is just plain bad). We are about to present to you the real results. For the purposes of today ’s workshop we’re going to ask you to forget we used an airline’s audience to develop these results, make the leap that these are results for your business, and discuss in small groups as if it is for your business. We want to give you plenty of time to get your questions answered and share your views. So we’ll move through these pretty quickly.
  • For those of you who have been doing a lot of segmenting of your database based on RFM and/or LTV – you look at the monetary value of your customers and then make a judgment call around what rewards/coupons they ’ll receive, level of customer service, etc. We are saying you need to take that one-dimensional view and look at it through two-dimensions: the value of your customer from a monetary perspective as well as the value of that customer from an influence perspective. How active are they in the social space? Are they likely to share a message? Are they likely to share your message? Second, once you have done this and through some type of correlation and/or cluster analysis, you then need to look deeper into the archetypes you created. So in this four-quadrant diagram you will see 22% of your audience is both high value, high social influence propensity. 11% are in the High Value low Social influence. 38% are mid-value and somewhere in the middle when it comes to social influence and then you have the 30% down in the lower left-hand corner. We see this as another tool to help you more effectively prioritize your efforts. For example, if it is a channel most likely to be used by those in the lower right corner, it better be low cost and create a lot of efficiencies, otherwise you may want to ditch it. Let me quickly take you through a little more detail in the next two slides and then we ’ll break into groups to answer your questions and discuss how this can be used for your business.
  • Tried and True : brand confirmed revenue-generators/cost-savers In the case of Virgin America their website and promotional emails are very important. The results showed they should continue what they are doing for their website, yet there is a tremendous opportunity to improve their email. Optimization Opportunities : valuable to a significant Engagement Type In the case of Virgin America the 22% and 11% bubbles both had a high propensity to use mobile apps, high propensity to be a member of Elevate, yet mobile apps came across as low on expectations. A big opportunity here to dig deeper, better understand expectations and needs, and develop a robust mobile app for its Elevate members. Shiny Object Fund : lots of buzz, low ubiquity Foursquare for Virgin America is a perfect example of something very few of their customers were using, yet for those who did, it was highly rated in terms of meeting their expectations. Not to mention, it ’s easy to connect through an API Foursquare check-ins to their loyalty platform and reward for checking in. Easy and generated a lot of PR buzz for them… Yet doesn’t distract from the other two more valuable buckets.
  • Gabe Joynt - Razorfish

    1. 1. LIMINAL customer engagement in transition Social Media Marketing & Monitoring 2011 San Francisco, CA May 23, 2011 Gabe Joynt | Strategy Director, CRM Solutions | Razorfish [email_address] @gabejoynt
    2. 2. LIMINAL | customer engagement in transition 1 challenge 2 findings 3 application
    3. 3. the evolution of customer engagement <ul><li>IS LIKE ICE CREAM </li></ul>LIMINAL | customer engagement in transition
    4. 4. but, how do you get to the point where you know which flavors to offer?
    5. 5. TAKE A BOTTOM-UP, CUSTOMER CENTRIC APPROACH to prioritize and optimize engagement touch points …. Source: Punchstock #93453428
    6. 6. Virgin America Case Study LIMINAL | customer engagement in transition Virgin America Case Study LIMINAL | customer engagement in transition
    7. 8. challenge <ul><li>WHAT ’S IMPORTANT TO CONSUMERS WHEN THEY REACH OUT TO YOUR BRAND? </li></ul>
    8. 10. What a customer feels when he knows he can expect a company to go out of its way to support his needs, and knows the company values his business. One interviewee explained: LIMINAL | customer engagement in transition “ [It’s] something as simple as calling a person, having them listen and talking to them. Just feeling as though they are out there, working on your behalf, that your situation has not been discarded, you are not just another passenger. It’s the personal touch that makes the difference.”
    9. 11. LIMINAL | customer engagement in transition When a company respects a customer’s time and energy, and promptly addresses his or her needs. When airlines offer consumers kiosks, which allow them to get their boarding pass with limited interaction with the airline, that is an example of Efficiency—many of us like to avoid the long lines and laborious process of checking in with a company representative. One interviewee praised online transactions through a computer or mobile phone, finding them easier, faster and more financially trustworthy. However, not everyone feels the same way; another subject complained that being contacted extensively had the opposite effect, saying, “Initial contact is OK but after that I don’t like to be hassled too much.”
    10. 12. LIMINAL | customer engagement in transition When customers feel confident that a company is credible, and will handle engagements honestly, sincerely and transparently. One interviewee mentioned: “ I need to believe that they’ll stand by what they are giving me. If something goes wrong, they will correct [it]. I’ll take chances with [trusting a company] so long as I’m sure they are there for me to correct any problems.”
    11. 13. LIMINAL | customer engagement in transition Achieved when customers feel a company is uniform in things such as policy, attitude, communication, and messaging. Interviewees reported they noticed when a company ’s words and actions clashed. Participants also defined Consistency in terms of reliability, durability, experience and craftsmanship.
    12. 14. LIMINAL | customer engagement in transition Achieved when a customer feels messaging from a company is interesting and applicable to their needs. When a retailer offers personalized coupons to its customers with discounts on items they frequently buy, that is Relevance (and probably, makes them feel Valued). One participant mentioned: “ A lot of companies are wanting to reach you through the Internet. Everybody has a Facebook page. Blah, blah, blah. I’m not going to a company’s page unless you give me a reason to go there. And I don’t want to hear about new products there. I want to go there if I want to become part of the [brand’s] culture or there is some important information there.”
    13. 15. LIMINAL | customer engagement in transition Manifested when the customer can determine if, when and how a company will communicate with him or her. Interviewees noted they want to give companies permission to be in touch with them up front; conversely, they want to opt out when they are done engaging. Control can be implicit or explicit, yet the consumer wants to be at the center of it. He or she would rather foster a relationship than receive a one-way push from the marketer. As was said earlier, however, it is noteworthy that in “the consumer is in control” era, Control was the least important of the six Engagement Elements we identified. One reason for this, we believe, is that if a company delivers on Trust, then Control becomes less important.
    14. 16. findings THE POWER OF CUSTOMER VALUE PLUS INFLUENCE LIMINAL | customer engagement in transition
    15. 17. social web DATA behavioral DATA consumer DATA Interviews & Survey CONSUMER DRIVEN View of Engagement LIMINAL | customer engagement in transition
    16. 18. Channel Importance Archetypes Engagement Elements Engagement Elements (by Channel) LIMINAL | customer engagement in transition
    17. 19. channel importance LIMINAL | customer engagement in transition
    18. 20. engagement elements by channel LIMINAL | customer engagement in transition
    19. 21. LIMINAL | customer engagement in transition
    20. 22. LIMINAL | customer engagement in transition
    21. 23. LIMINAL | customer engagement in transition
    22. 24. LIMINAL | customer engagement in transition Achieve a long term lock on this audience by creating an optimized digital experience – enable them to share this experience with their network.
    23. 25. LIMINAL | customer engagement in transition A potential emerging consumer. Ensure strong experiences so they spread the word today, and fly more in the future.
    24. 26. LIMINAL | customer engagement in transition Retain this audience by optimizing traditional touchpoints and focus on mobile as an emerging channel.
    25. 27. LIMINAL | customer engagement in transition Potentially comprised of one-and-done and other segments. Biggest drain.
    26. 28. application WHAT VIRGIN AMERICA DID NEXT
    27. 29. HITTING THE GROUND RUNNING WITH NEW ENGAGEMENT OPPORTUNITIES 1 tried & true 2 optimization 3 shiny objects
    28. 30. RENEWED FOCUS ON TRADITIONALLY ENGAGED <ul><li>OUR APPROACH HASN ’T BEEN WHOLESALE… IT’S BEEN AN EVOLUTION . </li></ul><ul><li>RESULTS: Consistently improving feedback from our guests that we are sending the ‘right’ and ‘relevant’ content , stronger metrics as we test, more simplicity, and engaging promotions/news/events. </li></ul>LIMINAL | customer engagement in transition WE LEARNED THE EMAIL CHANNEL REMAINS THE ‘BREAD AND BUTTER’ FOR MANY OF OUR HIGH VALUE GUESTS TO INTERACT WITH US …
    29. 31. LIMINAL | customer engagement in transition CONTINUING TO SERVE THE SOCIALLY SAVVY In November 2010, VX was the first airline to launch the ability to earn points through Facebook Places or Foursquare check-ins for Elevate members through a partnership with TOPGUEST …
    30. 32. <ul><li>VIRGIN AMERICA HAS CONTINUALLY FOCUSED ON THIS GROUP, FROM LAUNCHING MARKETS WITH PROMOTED TWEETS TO PROVIDING FREE FACEBOOK IN-FLIGHT. </li></ul><ul><li>RESULTS: Providing another valued point of engagement to earn real currency, and members who have checked in virtually show a dramatically higher spend than base Elevate members </li></ul>LIMINAL | customer engagement in transition CONTINUING TO SERVE THE SOCIALLY SAVVY