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Intro to Customer Engagement Marketing and "Behavior Shaping"

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A presentation to marketers at Electronic Arts about "behavior shaping" (aka, "growth hacking", "lifecycle marketing", "engagement marketing") and how it can be used to boost mobile usage, revenue, and virality. This is a concept that blends traditional marketing media with triggered campaigns based on customer state to create an ever-present experience. A good primer for marketers shifting from traditional methods to triggered marketing, and understanding how to measure and amplify revenue and social sharing.

Published in: Technology

Intro to Customer Engagement Marketing and "Behavior Shaping"

  1. 1. An Overview of Customer Engagement Marketing: Tactics and Methods for “Behavior Shaping” to Increase Mobile Usage, Revenue, and Virality Scott Dunlap for Electronic Arts July 18th, 2013
  2. 2. Short Version (30 slides – high level) Medium Version (80 slides – frameworks and benchmarks) Long Version (260 slides – tactics, how-to, and best practices)
  3. 3. Agenda • Quick Intro • Evolution of Digital Marketing – How Did We Get Here? • Overview of Engagement Marketing • Case Studies • Q & A
  4. 4. Quick Intro • “Hypergrowth Navigator” @ 10D Labs • Exec at 5 start-ups from concept to IPO/acquisition • 55 products launched, many #1 mobile apps • Aka “that trail runner guy”
  5. 5. Evolution of Digital Marketing Digital Distribution Context Ubiquity • E-mail • Web • Massive and Passive • Search • Social • Triggered • Responsive • Multi-device • Real-time, 1:1 • Marketing and customer experience merge Personalization • Dynamic • CRM era • Still massive and passive
  6. 6. What Used to Be Silos… E-mail Push Notifications SMS Marketing team defines schedule/content based on product launch, PR, etc. Developers define experience Campaign-specific from marketing team Social Driven by social team/agency
  7. 7. …is now unified around the customer experience. E-mail Push Notifications SMS • Triggered by customer state • Optimized to encourage certain behavior • Channel-optimized Social
  8. 8. Just think of the last app/service that surprised you with how much time it managed to get… …did it send you 10+ e-mails/week and you loved it even MORE? YES.
  9. 9. You Helped Make Them Big!
  10. 10. As marketers, you are already feeling the effect…
  11. 11. Messaging Volume Is Exploding 0 10 20 30 1972 1992 2002 2008 2010 2012 Volume of Messages Sent (Trillions) First Email iPhone Hotmail AOL Facebook Gmail iPad SMS Pentium Amazon Web Services Yahoo! Twitter SMTP Defined First PC Em ail (Non Spam ) Text/SMS Tweets Facebook Push VolumeofMessagesSent(Trillions)
  12. 12. Messaging Volume Is Exploding 0 10 20 30 1972 1992 2002 2008 2010 2012 Volume of Messages Sent (Trillions) First Email iPhone Hotmail AOL Facebook Gmail iPad SMS Pentium Amazon Web Services Yahoo! Twitter SMTP Defined First PC Em ail (Non Spam ) Text/SMS Tweets Facebook Push VolumeofMessagesSent(Trillions) In the time that it took you to read this sentence 2.8 million messages were sent * And 62% will be read on a mobile device *
  13. 13. How do you get above the noise? MAKE EACH MESSAGE RELEVANT. (Customer Engagement Marketing mantra)
  14. 14. Customer Engagement Mktg • How is it different? – Triggered by behavior and customer state, and encourages specific actions – Feels natural, not intrusive – I call it “behavior shaping”, but it’s rooted in “growth hacking” and “lifecycle marketing” – Ultimate goal – shape behavior towards habitual use that encourages $$$ and virality
  15. 15. Note - Engagement Marketing = Amplification of Value Only If your product… – Sucks – Does not add more value than the avg 43 apps on a phone (13 used regularly) – Cannot communicate core value in first 10 seconds, and onboard in <20 seconds – Has a DAU/MAU less than 5% …Engagement Marketing cannot help you. (now back to our program!)
  16. 16. Example – The Genius of LinkedIn Did you know: • $22b market cap (doubling every 9 months) • 30% of traffic driven from engagement-style e-mails • They A/B test features/content in e-mail first • They “shape” your behavior to create ideal profiles to sell to recruiters/salespeople (genius!)
  17. 17. Seamless Engagement @ LinkedIn • LinkedIn e-mails I got this week alone – “Your clan” – “Who wants you” – “Reciprocity” • Keeps me engaged and coming back • Is it marketing? Or the product experience? • Does it matter?
  18. 18. Vocabulary of Engagement Marketing • Actions – A well-defined and instrumented behavior • Cohorts – Automatically group customers by certain usage patterns, or desired usage patterns – “Active”, “casual”, “dormant”, “premium”, etc. • Triggers – Customer behavior or external events that cause a message to be delivered to a target cohort
  19. 19. The Simple Framework
  20. 20. More Advanced Framework Better Defines Cohorts Aware On- boarded PasserBy Casual Active Dorman t Premium Active/ Sharing Premium / Sharing Example definition of “Active” – Completed Level 1, used in last 10 days.
  21. 21. Each day, customer actions (or lack of) create movement between cohorts… Active Dorman t 2,104 users hit their 10th day of non-use. 390 users who were dormant used the app.
  22. 22. …triggering targeted campaigns Active Dorman t 2,104 users hit their 10th day of non-use. 390 users who were dormant used the app. Send “what your friends are doing” e- mail Send “good to have you back” to those 30+ days inactive
  23. 23. Once it’s defined, it runs itself…
  24. 24. The Essential Tools • Step 1 – Cohort Analysis – Dynamic cohort definition, control groups • Step 2 - Triggered Messaging – E-mail vs Push vs Text – Social (680m daily mobile users on FB alone) • Or Both in an “Engine” – New solutions combine the above into one, similar to how FB, Twitter, etc built internally
  25. 25. Example Engagement Engine - Kahuna Live Triggered Campaigns Analysis Projects How to Maximize Engagement Suggested Campaigns
  26. 26. “Where to Start” Example - Gyft • Wanted to address “single use” (Active-> Dormant) • Set up reminder campaign, e-mail and push optimized • 19% lift in monthly Actives (800%+ annually…power of compounding)
  27. 27. “Seeding Key Users” Example - Refresh • Early adopters help define cohort characteristics for highly active user • Target users with similar characteristics on FB, Twitter
  28. 28. “Seeding Key Users” Example - Refresh • Organic referrals work best, triggers after meetings • Twitter gets downloads… • …but Facebook helps define value proposition “Never talk about the weather again!” [1,170 likes, 2.4% CTR] “New App to make conversations…” [370 likes, 0.3% CTR]
  29. 29. Where Could EA Go? - Scrabble • Deeper relationship with e-mails • Cross-sell • Encouraging sharing • Etc. Confidential Content
  30. 30. (Long version of this deck has LOTS more examples)
  31. 31. Who’s Got This Nailed? • Acquisition – Mint, OKCupid, Scrabble • Onboarding – Dropbox, Quora • Migration to Active – LinkedIn, Facebook, Groupon • Best Weekly Digests – Quora, Twitter • Best Impulse Buying – Fancy, One Kings Lane, Fab, Etsy, Pinterest (?) • Best Referrals – Quora, LivingSocial, AppSumo • What worked on you…check your phone!
  32. 32. Required Reading… • The 280 slide version has lots of best practices… • NirAndFar.com – Understanding the roots of habitual behavior and design. • Dave McClure’s Growth Hacking Intro on SlideShare – still one of the best. • DJ Patil’s Data Product eBooks. • Growth hackers – growhack.com, Andrew Chen • Quora Growth Hacking groups • White Papers – Kahuna, Marketo, SilverPop, etc.
  33. 33. Thank You! See You On The Trails… Scott@10dlabs.com @scott_dunlap Linkedin.com/in/scottdunlap www.atrailrunnersblog.com

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