Engagement 0

www.sti-innsbruck.at© Copyright 2008 STI INNSBRUCK www.sti-innsbruck.at
Engagement
Anna Fensel, Dieter Fensel, Andreea-Elena Gagiu, Birgit Leiter and Ioannis
Stavrakantonakis

www.sti-innsbruck.at
Engagement
Engagement is the infinite loop between the listening and
responding steps, interweaving publishing and listening.
Why is it important?
 Because customers are important for any enterprise and the
engagement concept creates strong relationships between the
customers and the enterprise.
2

Engagement
Overview
1. Communication infrastructure
2. Workflow management
3. Crowdsourcing
4. Communication patterns
5. Value-chain generation
6. Engagement
7. Application types
8. Summary
3

Multi-Channel
Publishing
Communication Infrastructure
Social
Media
Monitoring
Communication
- Active and reactive
- Trace
- Multi-channel switch
- Multi-agent switch
4

 Communication (from the Latin commūnicātiōn- = “share”) refers to the
process of imparting or interchange of thoughts, opinions, or information by
speech, writing, or signs.*
 Communication is a social interaction where at least two interacting
agents share a common set of signs and a common set of semiotic
rules.
 Types of communication:
• Spoken or Verbal communication: face-to-face, telephone, radio or television.
• Non-verbal communication: body language, gestures, voice tone.
• Written communication: letters, e-mails, books, magazines, information written over
the Internet.
• Visualization communication: such as graphs, charts, maps, or logos.
* http://dictionary.reference.com/
5

Models of communication:
 Conceptual models used to explain the human communication process
 The first major model for communication was created by Shannon and
Weaver (1949) to represent the functioning of radio and telephone
technologies.
 Initial model was composed of three primary parts:
• Sender - the part of the telephone a person spoke into;
• Channel – the telephone itself;
• Receiver – part of the phone where one could hear the other person.
6

 Communication is bidirectional
 Agents interact and communicate in parallel, permanently alternating
their role in these acts of communication.
 Destinations provide feedback in the form of a message or a set of
messages.
 The source of feedback is an information source.
 The consumer of feedback is a destination.
7

• On multiple channels
Disseminate
• For a response on the channels selected
Listen
• The impact of the dissemination (and the customer
response)
Monitor and measure
• Respond to customers
React
8

Active communication
If an agent starts a communication – the agent takes the role of the
message sender – we talk about active communication.
Example of Active
Communication
performed by a
hotelier on
Facebook
9

Classification of channels by the type of service they provide:
1. Static Broadcasting
2. Dynamic Broadcasting
3. Sharing
4. Collaboration
5. Group Communication
6. Semantic-based Communication
Image taken from: http://www.softicons.com/free-icons/application-icons/or-applications-icons-by-iconleak/file-cabinet-icon
10

1. Static Broadcasting
• Prehistoric methods of dissemination: cave drawings, stories of triumphs on
columns and arches, history on pyramids, stones with messages
• More modern means: printed press, newspapers, journals
• Online static dissemination: websites and homepages….
11

2. Dynamic Communication
Small piece of content that is dependent
on constraints such as time, location.
Examples of tools (organized considering first
the length of message and second – the level of
interactivity)
• News Feeds
• Newsletters
• Email / Email lists
• Microblogs
• Blogs
• Social networks
• Chat and instant messaging applications
12

3. Dissemination through Sharing
• Can use specialized applications (see below) of features of other platforms
and services (e.g. share photos through Facebook)
• Examples:
– Flickr – as a means of exchanging photos, visible to all users (no account
necessary), allows users to post comments;
– Slideshare – channel for storing and exchanging presentations;
– YouTube and VideoLectures – sharing videos, all users can see the posted
videos and leave comments on the websites
13

4. Dissemination through Collaboration
Collaboration websites (Wikis):
• Websites where members can add, modify, or delete its content via a web
browser using a simplified markup language or a rich-text editor.
• Are created collaboratively by multiple users
• Primarily a means for project internal collaboration, but can transform into a
dissemination channel if users outside the project have read access;
• Write access cannot be provided due to spamming and lack of peer review
⟹ readers cannot reply to the articles posted.
14

5. Group Communication Dissemination
• Many-to-many
• Threaded conversations
• Usually created on a particular topic
• Have different access levels
• Better for disseminating within a group that shares common interests as the purpose
of the services is to enable collaboration, knowledge and information sharing and
open discussions
• Exampled: Google Groups, Facebook Groups, Yahoo! Groups, LinkedIn Groups,
Xing Groups.
• Similar in many ways to Discussion boards and Internet Forums
15

6. Semantic Based Dissemination
16
• Scope: Add machine-processable semantics to the information
-> Search and aggregation engines can provide much better
service in finding and retrieving information
• Applications:
– Enrich websites by adding machine readable semantics to HTML/XML files:
• RDFa
• Microformats
• Microdata
– Inclusion of semantic annotation in XHTML docs
– Enrich content of on-line presentations by adding links and tags to the presented
information
– Reuse of predefines LOD vocabularies to describe our data to enable semantic
based retrieval of information

Re-active communication
Re-active communication describes communication situations initiated by
an external agent – the agent takes the role of the receiver and will re-act
on the received message.
Transmitter: guest at hotel
External ⟹ Re-active
communication
Reactor: hotelier
Source: http://www.tripadvisor.com/ShowUserReviews-g53449-d96753-r130438938-Hampton_Inn_Pittsburgh_Greentree-Pittsburgh_Pennsylvania.html
17

Channels to analyze
The
Conversation
SOCIAL NETWORKS
WIKIS
PHOTO SHARING
BLOGS MAINSTREAM MEDIA
MICROBLOGS
FORUMS/NEWSGROUPS
VIDEO SHARING
SOCIAL MEDIA NEWS
AGGREGATORS
18

Channels to analyze
1. Social networks, e.g.:
• Facebook (Q1 2012):
– 526 million daily active users
– 3.2 billion Likes and Comments per day
– 500K comments per minute
– 700K status updates per minute
– 80K wall posts per minute
19

Channels to analyze
1. Social networks, e.g.:
• Twitter:
– 200 million Tweets per day (2011)
– 200K Tweets per minute
• LinkedIn: 147 million users
• Google+: 170 million users
20

Channels to analyze
2. Sharing networks, e.g.:
• YouTube:
– 4 billion videos are viewed a day
– 100 million people take a social action on YouTube every week (likes, shares,
comments, etc)
• Flickr: >6.500 new photos per minute
• Pinterest:
– 13 million users
– American users spend an average of 97.8 minutes
21

Channels to analyze
3. Email lists
• 2172 million Email users
• 3375 million Active email accounts
• 2.8 million emails per second
• 90 trillion emails per year
22

Channels to analyze
4. Group Communication and Message Boards (e.g. Google Groups,
Yahoo! Groups, Facebook Groups, etc.)
• Forums: 2K posts per minute
• Yahoo! Groups:
– 9 million groups
– 113 million users
– 933 thousand unique visitors daily
23

Channels to analyze
5. News feeds
• Total Feeds*: 694,311
• Atom Feeds*: 86,496
• RSS feeds*: 438,102 (63% of the total)
*source: http://www.syndic8.com
24

Channels to analyze
6. Blogs:
• >95 million blogs available online
• 22K posts per minute
• Tumblr (Q2 2012):
– 55.9 Million blogs
– 23.3 Billion posts
– 20K posts per minute
• WordPress (Q2 2012)
– 73.724.911 WordPress sites
25

Channels to analyze
7. Traditional mediums:
• TV:
– 365 TV channels licensed in Germany
• Radio:
– 822 Radio stations in Germany
• Print mediums (newspapers, magazines)
– 382 Daily newspapers in Germany
– 4180 Weekly magazines in Germany
26

Channels to analyze
8. Online News:
• News websites: >25.000
• Online radio stations: >2700 Online radio stations in Germany
27

Trace
Tracing a conversation through all channels involved is crucial for making
communication effective and efficient, and is therefore required for
 accurately measuring the impact of information items, and
 for a fast re-action time to feedback.
 Tracing customer conversation can be done using social media
monitoring tools.
 Communication has a history
 The communication history IS the trace
28

Multi-channel switch
(Online) Communication is scattered over multiple, often very different
channels.
• Agents are challenged to disseminate information over all appropriate
channels.
• Activities of all channels the agent is active in must be monitored.
• Impact, Feedback and Responses need to be collected from all
channels.
• Transmitting a message over a
channel does not guarantee that
the reply will be received on the
same channel.
• Transmitters must be able to switch
cannels properly and identify the
channel where the response will appear.
29

Multi-agent switch
 Communication requires at least 2 agents: a speaker and a listener
 However, communication does not occur in a void – thus the initial
model may never occur in real life as there may always be more
than one listener or more than one agent.
 More agents may be required when the communication receives
responses from multiple listeners.
 Moreover, due to the lack of time constraints on online
conversations (they may begin at any time, and be picked up again
at irregular intervals), it may be impossible for a single agent to be
on call for every response.
 Thus, a client may begin a conversation with one agent, and receive
a response for a different one.
 The trace plays an important role of preparing agents and ensuring
that the proper response is given.
30

Multi-Channel Publishing
Source: http://www.briansolis.com/2008/08/introducing-conversation-prism/
31

Social Media Monitoring
Social Media Monitoring is the continuous systematic observation
and analysis of social media networks and social communities. It
supports a quick overview or insight into topics and opinions in the
social web. *
*http://de.wikipedia.org/wiki/Social_Media#Monitoring
image: http://www.cosida.com/media/images/2011/4/SMM_tools.jpg
32

Engagement
Multi-Channel
Publishing
Engagement
Social
Media
Monitoring
Communication
- Trace
Workflow management
Crowdsourcing
Value-chain generation
Communication Patterns
33

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
34

Workflow management
What is Workflow management?
• A workflow consists of a sequence of concatenated (connected) steps*.
• Workflow management refers to the process of assigning, tracking and
responding to social media streams, usually in a team environment in
order to prevent double responses and missed opportunities. It is crucial
for an enterprise tool to promote team productivity through collaboration.
*http://en.wikipedia.org/wiki/Workflow
35

Workflow management
Why do we need Workflow management?
• Distribute customer feedback internally based on the content of the
incoming/monitored discussions.
• Increase the quality of the services and products by communicating
the feedback to the responsible employees of the enterprise (i.e.
Quality management).
• Coordinate and track who at the enterprise is assigned an issue,
who said what to whom, who manages what
relationships, etc.
• Effectively escalate very important issues to a higher
support level.
36

Workflow management
Why do we need Workflow management? (cnt’d)
• Consider how to get the right information to the right team on an
ongoing basis – as volume increases ad hoc methods won’t scale.
• Classify and tag posts, adjust sentiment, and route them for follow up
and engagement.
• Ensure all users have reviewed/closed all posts they are assigned.
• Measure which issues closed faster and
more efficiently in order to reuse the
used strategies in the future.
37

Workflow management
• Exploit the monitoring phase of an enterprise’s strategy in the most
efficient way by assigning the appropriate people to take care of the
various issues that are coming through the social media monitoring
diode.
• Establish a collaborative environment around the reputation
management of a brand and leverage the effort of each employee to a
step towards the enterprise’s public visibility and
awareness.
38

Workflow management
• Quality management
The workflow management process supports the quality management
activities as:
– it is used to circulate to the appropriate persons of the enterprise the
different issues that the customers realize and modify whatever is
needed to improve the quality of the delivered products and services,
– it provides insights about what the customer decides that quality is, and
– it facilitates the overall administration of the delivered quality.
39

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
40

Crowdsourcing
What is Crowdsourcing?
• Crowdsourcing represents the act of a company or institution taking a
function once performed by employees and outsourcing it to an
undefined (and generally large) network of people in the form of an open
call. This can take the form of peer-production (when the job is performed
collaboratively), but is also often undertaken by sole individuals. The
crucial prerequisite is the use of the open call format and the wide
network of potential laborers. (Howe, 2006)
41

Crowdsourcing
What is Crowdsourcing?
• Crowdsourcing is the act of taking a job traditionally performed by a
designated agent (usually an employee) and outsourcing it to an
undefined, generally large group of people in the form of an open call.
• The application of Open Source principles to fields outside of software.
Howe (2008, 2009)
42

Crowdsourcing
Advantages of Crowdsourcing
• Get the work done in a cheap way: Similar to outsourcing,
crowdsourcing is used to cut costs. Provides a better value for money.
• Scalability: Crowdsourcing is able to scale tasks and distribute workload
in a human based way and hopefully without any cost (e.g. reCaptcha)
• Numerous ideas from numerous people: A large pool of participants
leads to more ideas, which increases the possibility to come along an
especially smart one.
• Fast: It will take less time to find the right person to do the job. In fact it
could be almost immediately.
• Awareness: Connects businesses to their audiences and consumers.
43

Crowdsourcing
Disadvantages of Crowdsourcing
•Quality assurance: There is little guarantee that the delivered product will
be of sufficient quality and efficacy.
•Misuse may introduce more problems that it tries to solve: An enterprise
should be sure that crowdsources tasks without and confidentiality issues.
The fact that you post your task on the web for everybody to see is
enough to blow any confidentiality away (e.g. R&D).
•Business model integration: Getting a few jobs done via Crowdsourcing
seems to be beneficial. However, trying to integrate Crowdsourcing in the
existing Business model of a company looks quite tough.
44

Crowdsourcing
Examples of Crowdsourcing
Application Objective Founder Reward ↑
OpenStreetMap Geographic content
University College
London, 2004
None
ReCaptcha Digitize archives
Carnegie Mellon
University, 2008
None
Mechanical Turk
(MTurk)
Content analysis and
artificial intelligence
Amazon, 2005 Micro-payments (< 1$)
clickworker Data analysis
Humangrid GmbH,
2005
approx. €10/H
InnoCentive
Problem solving and
innovation projects
Eli Lilly, 2001 $1000 – $1000000
http://en.wikipedia.org/wiki/List_of_crowdsourcing_projects
45

Crowdsourcing
OpenStreetMap
• OpenStreetMap (OSM) is an initiative to create and provide free geographic
data, such as street maps, to anyone
• OpenStreetMap collects and pool geographic data in order to establish a
world map under the Creative Commons license. Contributions are voluntary,
with no financial reward.
• There are no restrictions on who can use the data. Individuals, clubs,
societies, charities, academe, government, commercial companies.
46

Crowdsourcing
ReCaptcha
• ReCAPTCHA improves the process of digitizing books by sending words that
cannot be read by computers to the Web in the form of CAPTCHAs* for
humans to decipher. More specifically, each word that cannot be read
correctly by Optical Character Recognition (OCR) is placed on an image and
used as a CAPTCHA.
• Each new word that cannot be read correctly by OCR is given to a user in
conjunction with another word for which the answer is already known. The
user is then asked to read both words. If they solve the one for which the
answer is known, the system assumes their answer is correct for the new
one. The system then gives the new image
to a number of other people to determine,
with higher confidence, whether the
original answer was correct.
* A CAPTCHA is a type of challenge-response test
used in computing as an attempt to ensure that the
response is generated by a person
47

Crowdsourcing
Amazon Mechanical Turk
• Amazon’s Mechanical Turk is a market in which anyone can post tasks to be
completed and specify prices paid for completing them.
• The inspiration of the system was to have users complete simple tasks that
would otherwise be extremely difficult (if not impossible) for computers to
perform.
• A number of businesses use Mechanical Turk to source thousands of micro-
tasks that require human intelligence, for example to identify objects in
images, find relevant information, or to do natural language processing.
• Mechanical Turk has more than 500,000 people in its workforce. Their
median wage is about $1.40 an hour.*
*http://www.economist.com/node/21555876
48

Crowdsourcing
The Turk, also known as the
Mechanical Turk or Automaton
Chess Player*
*http://en.wikipedia.org/wiki/The_Turk
Jeff Bezos, the chief
executive of Amazon.com,
has created Amazon
Mechanical Turk, an online
service involving human
workers
Amazon Mechanical Turk (cnt’d)
49

Crowdsourcing
50

Crowdsourcing
Clickworker
• Clickworker uses a standard web browser to complete tasks on a piece rate
basis. Most of these tasks are part of a larger, more complex, project. Task
coordination and oversight is conducted utilizing the technology of
clickworker.com, which provides the Internet-based workflow system.
• Project examples include the processing of unstructured data, such as text,
photographs, and videos.
• Clickworker can create, categorize, append, capture, and translate.
• The platform has more than 210K clickworkers, which are the independent
contractors on the platform.
• Using special quality assurance procedures such as statistical process
testing, audits and peer review and constantly evaluating all output, they
ensure top level results.
51

Crowdsourcing
52

Crowdsourcing
InnoCentive
• Leading commercial, government, and nonprofit organizations such as Eli
Lilly, Life Technologies, NASA, nature.com, Popular Science, Procter &
Gamble, Roche, Rockefeller Foundation, and The Economist partner with
InnoCentive to solve problems and innovate faster and more cost effectively
than ever before.
• Total Registered Solvers: More than 250,000 from nearly 200 countries
• Total Solver Reach: 12+ million through our strategic partners
• Total Solution Submissions: 27,000+
• Total Awards Given: 1,000+
• Total Award Dollars Posted: $34+ million
• Range of awards: $5,000 to $1 million based on the complexity of the
problem
Statistics: http://www.crowdsourcing.org/site/innocentive/wwwinnocentivecom/14
53

Crowdsourcing
• InnoCentive does not address potential users but experts
• It aims to solve complex tasks and problems that need expertise and
innovative approaches.
• The InnoCentive platform connects individual innovators (solvers) with
applicants (seekers) that are generally companies.
54

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
55

Communication patterns
In software engineering, a design pattern is a general reusable solution to a
commonly occurring problem within a given context in software design. A
design pattern is not a finished design that can be transformed directly into
code. It is a description or template for how to solve a problem that can be used
in many different situations. So patterns are formalized best practices that you
must implement yourself in your application.
Based on this definition of Software design patterns we introduce at this point
the idea of the communication patterns.
Software
Design Patterns
Communication
Patterns
56

• The communication patterns could be a way to facilitate the response phase
of an enterprise.
• A rich set of communication paradigms that address different types of
issues by describing workflows of interaction with customers or potential
customers.
• It should be a dynamic set of patterns in the sense that it is being extended
and altered continuously according to the needs of the customers and the
nature of the issues that are arising.
57

• There should be an hierarchy among the patterns in order to use the most
appropriate one and a mechanism to escalate an issue.
• The enterprise should be able to realize the effectiveness of each pattern
towards specific types of issues and respectively drop the pattern or give it
a better position in the hierarchy.
• The communication patterns could be analyzed on a 5-dimensional system
as the one that is presented in the following slide.
58

59

The Who dimension
•For any feedback item that is available,
someone in the enterprise should be
responsible to interact with the customer or the
user that gave that feedback or disseminated something related to the
brand, products and services of the enterprise.
•It is crucial for the enterprise to respond via the appropriate employee
to the user. To achieve this the enterprise should have a decent
mechanism that could figure out in a semi-automatic way they needs of
the user by relying on the content of user’s feedback.
60

The What dimension
• The What dimension mostly refers to the process of content
adaptation. Content adaptation is the action of transforming content to
adapt to the needs of the user. Thus, the responsible person (who is
specified from the Who dimension) should be able to adapt the
existing content, which is available and related to the user’s issue.
• Furthermore, there are cases that the response should be different
than a reply to the user. Various actions should be taken in order to
support and help the user.
61

The What dimension – Example scenario “Hotel”
• A customer faces a problem with the hygiene
of his room and tweets about that.
• The listening procedures of the hotel capture
that tweet and the administrator assigns the
issue to the responsible person, who is
dealing with the customer services.
• The responsible employee contacts the
customer at his room and asks him if is
everything as it should be and in case there is any problem, they could fix it
immediately. An alternative could be to contact the customer and propose him
an inspection and a second cleaning session within the next minutes/hours to fix
the issue that was publicly disseminated.
62

The Where dimension
• The response of the enterprise to the content of the user, which was
spread in the web sphere should be done not only via the appropriate
person that could adapt the content in the right way, but it should be
realized through the correct medium.
• That could be the medium that was used by the user or any other
way, which is considered to be more appropriate.
• Moreover, there is the possibility to switch between the available
mediums (social networks, phone, email, etc.)
63

The When dimension
• This parameter reflects the appropriate response time of the
enterprise in the bi-directional communication with the user.
• The enterprise should be ready enough in order to respond and support
the users within the most efficient time span, which depends on the type
of the input.
• An hierarchy model is needed in order to sort the
open issues according to the importance of the
discussion for the enterprise. This depends on:
– Popularity of the user in the action field of the enterprise
– The importance of the issue
– Existing data regarding the issue and the user
64

The Why dimension
• The enterprise should have a set of criteria that could help them
decide if a post in the web sphere should be taken in consideration
and should be replied or not.
• There are some types of posts that the enterprise does not gain any
added value by responding. Some of the criteria could be:
– Is that person an influencer and active in the area of the enterprise?
– Does the post need a reply? (e.g. if it is an online discussion between
2 people, it would be annoying to pop-up in the discussion with the
official account of the enterprise.)
– Is there any decent answer to the problem or by jumping into
the discussion it would be uncomfortable for the enterprise?
65

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
66

Value-Chain generation
“A value chain is a chain of activities for a firm operating in a specific industry.
The business unit is the appropriate level for construction of a value chain, not
the divisional level or corporate level. Products pass through all activities of
the chain in order, and at each activity the product gains some value. The
chain of activities gives the products more added value than the sum of the
independent activities' values.”
Wikipedia
67

Value-Chain generation
• The value chain generation lays on top of the other layers (i.e. workflow
management, crowdsourcing and communication patterns) and reflects the
aim of the enterprise to monetize their activities through these layers.
• The ultimate target for keeping the customers happy and engaged to the
brand is to increase the revenue. Thus, it is important to have a layer on top
of the communication that transforms long-term relationships into economic
transactions and new opportunities for the enterprise.
• For example, for a hotelier this layer could be the book-ability of his
services.
68

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
69

Engagement
Engagement
Multi-Channel
Publishing
Social
Media
Monitoring
Communication
- Trace
Workflow management
Crowdsourcing
Value-chain generation
Communication Patterns
70

Engagement
• Though the previous sections (1,2,3), it has been extensively discussed the
way the online communication has changed and how do people create and
disseminate content.
• Web 2.0 has radically changed our communication possibilities.
• Discussion forums or blogs are spaces where people can communicate and
socialize in ways that cannot be replicated by any other offline interactive
medium.
• The rise of user generated content can take advocacy to another level.
• Considerable bargaining power has been shifted from the supplier to the
consumer.
• Fragmentation and specialization of media and audiences, and the
proliferation of community – and user generated content, business are
increasingly losing the power to dictate the communications agenda.
71

Engagement
• Engagement is very much a personal thing, and that means personal to the
enterprise, too.
• Making sense of online engagement needs to include discussions around
employee engagement policies and guidelines, the establishing of process
around engagement that make it scalable throughout the enterprise, and,
most importantly, and the framing up of what engagement actually means in
the context of the enterprise’s business.
• The enterprise should treat each single customer in the appropriate way,
which is specified implicitly by the customer.
72

Engagement
Engagement process =
Infinite loop between the listening and responding steps,
interweaving publishing and listening
Listen  Analyze  Understand  Respond
73

Engagement
• The Listen and Analyze steps are covered by the tools that was presented
thoroughly in the 2nd section, “Social Media Monitoring”.
• The rest of the steps are addressed by the layers: “Workflow management”,
“Crowdsourcing”, “Communication patterns” and “Value-chain generation”.
– Workflow management: Gives the ability to the enterprise to trace and
distribute the feedback internally to the responsible persons.
– Crowdsourcing: Enables the enterprise to complete tasks that need the human
intelligence and do not scale easily.
– Communication patterns: Provides a reusable set of communication templates
that can be used during the response phase.
– Value-chain generation: Reflects the aim of the engagement, which is the
increase of the economic transactions (e.g. in the tourism sector, the bookings)
74

Engagement
A possible stack of Engagement stages* could be the following
Stage Description
New Content Not reviewed Default when an on topic post is found
Reviewed, Determining Best Response Qualified post, assigned to appropriate
employee for possible response
Recommend Follow up To be managed by assignee
Commented, Awaiting Reply To be managed by assignee
Commented Closed To be managed by assignee
Referred To be managed by assignee
Resolved, no further action required To be managed by assignee
Reviewed, Closed, no response needed To be managed by assignee
*Radian6 – Engagement playbook
75

Engagement
Benefits of Engagement
•Lower switching costs, the geographical widening of the market and
the vast choice of content, services and products online have
weakened customer loyalty. Engagement addresses this problem.
•Customer satisfaction: Satisfaction is simply the foundation, and the
minimum requirement, for a continuing relationship with customers.
•Word of mouth advertising / advocacy
•Awareness - effectiveness of communication
•Filtering: Consumer rates and categorize the market
•Marketing intelligence: Highly engaged customers can give valuable
recommendations for improving the quality of the products offered
76

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
77

Application Types
Yield
management
Customer
Relationship
management
Brand
management
Advertisement Reputation
management
Engagement
Quality
management
78

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
79

Definition
• Advertising is a form of communication used to encourage or
persuade an audience to continue or take some new action.
• Most commonly, the desired result is to drive consumer behavior with
respect to a commercial offering, although political and ideological
advertising is also common.
– http://en.wikipedia.org/wiki/Advertising
Advertisement
80

Example
• Conventional advertising media include wall paintings, billboards, street
furniture components, printed flyers and rack cards, radio, cinema and
television adverts, etc.
• New and additional advertisement channels are used, e.g. on the Web,
social media, mobile
advertisement
– Sharma, C., Herzog, J.,
Melfi, V. “Mobile
Advertising:
Supercharge Your Brand in the
Exploding Wireless Market”, Wiley,
2008.
Advertisement
81

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
82

Definition
CRM is a widely implemented model for managing a company’s interactions
with customers, clients, and sales prospects. It involves using technology to
organize, automate, and synchronize business processes — principally
sales activities, but also
those for marketing,
customer service, and
technical support.
– Shaw, Robert, Computer
Aided Marketing & Selling
(1991) Butterworth Heinemann
ISBN 978-0-7506-1707-9
Customer
Relationship
management
by ERP Softwares
83

• Overall, technically, includes channel management, such as managing
phone, SMS, sending customers birthday cards, etc.
• Social CRM: The era of the "social customer“ refers to the use of social
media (Twitter, Facebook, LinkedIn, Yelp, customer reviews in Amazon,
etc.) by customers in ways that allow other potential customers to glimpse
real world experience of current customers with the seller's products and
services, thus make purchase decisions informed by other parties
sometimes outside of the control of the seller or seller's network.
– Greenberg, Paul (2009). CRM at the Speed of Light (4th ed.). McGraw Hill. p. 7.
Customer
Relationship
management
Example
84

• Many CRM vendors offer Web-based tools (cloud computing) and
software as a service (SaaS), which are accessed via a secure Internet
connection and displayed in a Web browser.
– These applications are sold as subscriptions (customers do not need to invest in
purchasing and maintaining IT hardware).
• Setting up a right strategy: timely and direct interaction with customers
via the proper way and extent (channel, timing, content) is needed
• Holistic customer relationship strategy that is highly customized, up to
the level of individual customers is needed
• Choosing the right software: currently the landscape is littered with
instances of low adoption rates
– In 2003, a Gartner report estimated that more than $1 billion had been spent on CRM
software that was not being used
Customer
Relationship
management
Use of Engagement Tools
85

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
86

Definition
• Yield or revenue management “is an economic discipline appropriate to
many service industries in which market segment pricing is combined
with statistical analysis to expand the market for the service and
increase the revenue per unit of available capacity”
– http://en.wikipedia.org/wiki/Yield_management, and Revenue_management
• The goal of yield management is a short-term increase of income
– a valid target for a business entity
Yield
management
87

Example
• Hotels are confronted with a multitude of online booking channels.
• Hotels should provide their available rooms and their rates to most if not
all of them to prevent not meeting their potential customers.
• In many channels, visibility is achieved through low prices.
– However, often channels also require constraints on the price offers in other channels.
• Some channels generate costs
without guarantying actual
income.
Yield
management
88

Use of Engagement 3.0 Tools
• Many solutions to yield management are based on complex statistical
methods and complex domain assumptions on how variation of the
price can influence the amount of bookings of a service
• However, a multi-directional multi-channel approach also must rely on
Swarm intelligence. Observing in real time the reaction of customers
and competitors will be the key to achieving on-line marketing. Adopting
your offer and your price dynamically in response to the behavior of
your (on-line visible) environment will become a key for economic
success http://en.wikipedia.org/wiki/Swarm_intelligence
• Yield management could be realized utilizing reputation and usage
values collected from different channels
Yield
management
89

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
90

Definition
• Brand – “a name, term, design, symbol, or any other feature that
identifies one seller’s good or service as distinct from those of other
sellers”
– American Marketing Association, http://en.wikipedia.org/wiki/Brand
• Brand management –“the art of creating and maintaining a brand”
Brand
management
91

Example
• Brand “Tirol”: “Wer Tirol hört, denkt an Berge.
Berge, in denen man im Sommer wandern
und im Winter Ski fahren kann. Und das wird
auch in Zukunft so bleiben. Aber Tirol bietet
mehr als nur Berge. ...” - www.tirolwerbung.at
• Brand “Red Bull”: most expensive Austrian brand,
valued at 9,984 billion dollars and world-wide
ranked as no. 80 (2012, BrandZ agency
study)
Brand
management
92

• Modeling communication, communication channels and target groups
bears inherently the advantage of uniformly accessing the provided
data and thereby allowing beyond state of the art processing of the data
• Human computation could increase the process where automated
algorithms lack of efficiency, for example the translation of
communicated content to other languages
• Potential of crowd sourcing, word-of-mouth
Brand
management
93

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
94

Definition
• Reputation – “the beliefs or opinions that are generally held about
someone or something”
• Reputation management – monitoring and pro-actively influencing and
thereby shape an entities reputation
• Online reputation management (or monitoring) is the practice of
monitoring the Internet reputation of a person, brand or business, with
the goal of suppressing negative mentions entirely, or pushing them
lower on search engine results pages to decrease their visibility. – New
York Times
Reputation
management
95

Example
• Reputation of a company can be
viewed as one of its most
important assets such as its
capital
– this dimension interferes with
revenue management
• Maintenance and increase the
appreciation an organization or a
topic or a certain approach gains
in the public on long-term are
needed
EU parlament
Reputation
management
96

• Introducing a domain specific, channel independent model that explicitly
separates content from channel, then intelligently interweave the content
with the channels again & use that for campaigning.
• Estimating the reputation and impact on all of the channels (e.g. by
statistical analysis of online content)
– For example, more than 90% of all Internet users are already reading product reviews and
more than 50% indicate that they base their purchasing decisions mostly upon them.
• The abstraction layer allows multi channel communication in a holistic
approach.
• Providing means to increase the effectiveness and efficiency of public
campaigns is needed.
Reputation
management
97

Conclusions
• There exist many application fields for engagement:
– Advertising
– Yield management
– Customer Relationship management
– Brand management
– Reputation management
• There are numerous challenges in new technology (e.g.
transition to many new numerous channels) and part of them
are technical, while part is managerial and creative =>
cooperation across interdisciplinary activity fields is required
• There are much more management types that were not mentioned in
this piece of work (e.g. Quality management) but are still important.
Reputation
management
98

Application Types
Yield
management
Customer
Relationship
management
Brand
management
management
Engagement
Quality
management
99

Definition
• An organization or product should have four main
components: quality planning, quality control, quality
assurance and quality improvement.
• Since the organizations depend on their customers, they should
understand current and future customer needs, should meet
customer requirements and try to exceed the expectations of
customers.
• One of the permanent quality objectives of an organization should
be the continual improvement of its overall performance.
Quality
management
100

Example
• Quality control is very important
for hotels and one of the ways to
realize it is through the customers.
• Engaging with customers is not only
about keeping them happy but also
using their information to control the
quality of the offered services and
improve them.
Quality
management Picture taken from http://www.sonofthesouth.net/uncle-sam/clean-your-room.htm
101

Engagement
Overview
3. Crowdsourcing
6. Engagement
8. Summary
102

Summary
In the new era of Engagement between enterprises and customers:
• The enterprise should incorporate social channels into the customer
communications.
• The strategies to be considered should be multichannel (combining social
and traditional) and appropriate to the channels that the customers want to
communicate in.
• It is clear that the CRM and the Social CRM solutions should
be integrated with the communication (i.e. listening and
response) platform of the enterprise in order to put the
customer at the focal point.
103

Summary
In the new era of Engagement between enterprises and customers (cnt’d):
• The effective communication with the customers establishes long-term
relationships with them and turns customers into advocates.
• The power of the “word-of-mouth” has become important
as much as it used to be in the small town ecosystems
of the past.
• Enterprises invest their resources in the communication
with the customers in order to make them feel important
and engage them to the products and services they offer.
104

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