Description
Customer engagement (CE) is the engagement of customers with one another, with a company or a brand.
Customer Engagement Strategies
The glue that binds us
1
?
Customer satisfaction is just the minimum; your goal is to engage your customers.
?
Engaged customers assure a business of sustained and profitable growth.
2
The lay of the land
?
All customers may be created equal, but they sure don’t wind up equally loyal to your company or brand. Some become strong, enthusiastic, and committed. Others do not. That’s a given.
?
What is not a given, however, is the size of the ?loyalist? segment for any given brand. That number can vary markedly from brand to brand.
Customers have relationships with the brands they buy and use, and these relationships will ebb and flow over time based on how companies treat their customers.
?
?
Nurturing loyal customer relationships is critically important and has enormous financial consequences in tighter economic times.
Nonetheless, most companies don’t understand what they can do to create customer engagement and have made little progress in managing it.
?
3
Why is this?
?
A great number of companies have paid attention to the
wrong outcomes
preferring to focus on those that are easy to manage and control, while ignoring outcomes that are harder to measure and difficult to manage.
?
Focusing on the wrong target outcomes, leads to use of the wrong measurement tools—such as defining ?loyalty? as
purchase frequency/share
and then trying to build that loyalty by buying it, or by creating short-term cost efficiencies that potentially damage customer relationships.
4
Engaging the customer
?
As a result of their various encounters with a brand, customers can become emotionally attached to or “engaged” with the brand, or—more worrisome—they can become “disengaged.” When customers are disengaged, they reduce their visits and purchases. They spread the word and share their discontent with others. They leave, sometimes in droves, for the promise of greener pastures.
?
5
You don’t own me
?
Customer relationships can be lasting, but they often aren’t.
?
In part, that’s because there are an increasing number of competing options, all equally attractive (or, at times, equally unattractive).
Similar cars at similar prices, similar long distance services at similar rates, similar airlines with similar prices headed to similar destinations — it all results in ?me-too? marketing, with ?me-too? brand promises. Similarity doesn’t produce customer engagement. Similarity creates commodities, differentiated only by the prices they charge.
?
?
6
Reaping the harvest, and paying the piper
?
How prevalent is ?customer engagement? among U.S. consumers? How bonded are they to the brands they use?
Well, their engagement level is not nearly as strong as marketers might hope.
?
?
A recent study by The Gallup Organisation of more than 3,000 customers across six different product and service categories, found that about one in five (21%) of these customers is ?fully engaged? with the brands they use, own, shop for or buy most often.
Importantly, an even higher number is ?actively disengaged.? More than one in four (28%) U.S. customers are actively disengaged with the brands they use and own.
?
7
?
?Actively disengaged? means that these customers feel no sense of loyalty, they exhibit no discernable pride in association with the brand, they have little trust in the brand or in how it treats customers. What’s more, they view the brand as easily replaceable. In short, they are ripe candidates for defection. There are, of course, notable differences between categories. Yet, even in a highly marketed, brand-differentiated and high-involvement category such as automobiles, about a quarter (26%) of those who purchased a new car in the past four years would be categorized as ?actively disengaged? with the brand they own. Think they’ll be back for another? Not without a huge rebate — or not without a massive and pervasive culture change within the vehicle manufacturer and its dealers, that results in them paying real and meaningful attention to their customer relationships.
?
?
?
8
Why should they?
?
Some brands, not surprisingly, do a better job, but even the bestperforming brands should know that 14%-30% of their customers are actively disengaged. What’s worse, nobody seems to be doing much to change this. Why should companies respond and change the ?disengagement? issue? Because disengagement is a major missed opportunity, and it is expensive. Disengagement is manageable. It can be addressed. And while it cannot be eliminated, it can certainly be reduced.
?
?
?
9
What does all of this imply?
? ?
First, that it’s easier to identify the problem than to solve it. Significant organisational commitment and investment is needed if companies want to address the opportunity and the risk represented by customer disengagement. Can this be done? Yes, but not by simply adding another Web site, increasing ad spending or launching yet another ?top-down? corporate initiative aimed at speeding up the checkout line or getting the sales staff to smile more. It implies a coordinated and fully integrated ongoing program of relevant measurement and meaningful intervention that reaches deeply throughout the organisation, to change all customer touch points. Simple? Hardly. Important? Definitely.
?
?
?
10
Back to the start
11
Engagement further defined….
?
Customer Engagement is the state of alignment of Brand Promises, Business Processes and Customer Experiences. Misaligned Business Processes result in disconnects between Brand Promises and Customer Experiences These misalignments create ?hot-spots? that are moments of truth when the customer experience falls short of the Brand Promise.
?
?
12
13
The Four stages of customer interaction
?
By identifying and applying the Four Stages of Customer Interaction, companies can develop the vision and processes to ensure their Brand Promises are realised as Customer Experiences throughout the customer life-cycle.
?
Each of the four stages defines what customers should be feeling, thinking and doing in each stage, as well as a desired end state.
The four stages are: ? Initiation ? Integration ? Intelligence ? Value creation
?
14
?
In order to develop relationships with customers that result in repeat business, referrals, profitable relationships and high life-time value, the following statements must be core to customer facing activities and processes:
? ?
?
?
?
Every interaction with customers (or lack of interaction) tells customers how much they are truly valued These interactions are moments of truth - when a customer learns if promises made to them (the brand) will be honored or not In order to create great experiences for customers, companies must know what they want customers to feel, think and do at every stage of the relationship The most unsatisfied customers can be a company’s greatest resource for innovation. Customer engagement failures must be pursued aggressively to find out how to create great experiences and value WITH – not for –customers Business Processes must enable Brand Promises to be realised as Customer Experiences
15
?
Moments of truth, when repeatedly resulting in positive outcomes and experiences, lead to customer loyalty. But what is customer loyalty? Is it repeat purchases by a customer? Is it a customer who gives a company a second chance when they fall short on delivering the appropriate experience? Is it a customer who refers others to a supplier/ retailer? Loyalty is all of that and more. Customer loyalty is a state of being that is defined by behaviors and experiences on BOTH sides of the relationship – retailer/ company and customer – that lead to a state of value creation for both parties. Loyalty can’t be measured by repeat business alone. A customer may not have a viable alternative currently, but the moment they do, they’re gone.
?
?
?
16
?
Regardless of how you define customer loyalty and how you measure it, the question really is:
“How does a company ensure its Brand Promises are realised as positive Customer Experiences?”
?
The link between Brand Promises and Customer Experiences is Business Processes.
?
The Four Stages of Customer Interaction are designed to enable companies to ensure their Business Processes create the Customer Experiences their Brand Promises promise.
17
The Four Stages in more detail…
18
?
Initiation – the active management of welcoming (on boarding) a new customer and beginning the relationship
Integration– the active management and assessment of the product or service after the initiation stage has been completed. The ultimate goal of the Integration stage is achieving operational excellence Intelligence – the active management of gathering all previous learnings from the Initiation and Integration stages, conducting additional research, assessing performance of the customer and the company, the company deciding what level of further relationship investment is warranted from a financial return standpoint, and developing an understanding of the customer’s long-term strategic goals Value Creation – the active management of developing a partnership with the customer to become a part of the customer’s performance and everyday life, create new value, and gain recommendations from the customer for new business
19
?
?
?
Implementing the Stages begins with several questions, including:
?
Has the company clearly defined the Emotional, Intellectual and Behavioral objectives for all customer facing processes and programs?
What are the most important moments of truth where a company fails to live up to expectations?
?
? ?
Are Customer Experiences truly the realisation of Brand Promises?
What processes are in place to ensure customers are having loyalty building experiences throughout the customer life cycle? How easy is it for customers to provide meaningful feedback? What customer needs are not being met? What is the financial impact of existing customer-facing processes?
20
? ? ?
Stage 1 – Initiation
Welcome on board
21
Attributes
?
Customer Experience
?
?
?
Welcoming information and materials provided and explained to customer Robust project processes and communications protocols established Delivering the right information to the right people at the right time
?
?
?
Emotional: o Satisfied with retailer/ supplier selection o Confident about the likelihood of success o Anxiety-free start-up with no sense of being overwhelmed · Intellectual: o Understand process and product information o Focused on how to successfully apply product/ knowledge · Behavioral: o Actively engaged with company and product o Communicating clearly about issues · Culminating Status: o Clear understanding of product and product information o No surprises
22
Stage 2 – Integration
Operational Excellence
23
Attributes
? ? ?
Customer Experience
?
Project/ service is completed from implementation standpoint All components/ aspects are operational Delivering right information to the right people at the right time
?
?
?
· Emotional o Satisfied with process/progress/product o Anxiety-free transition to operational stage · Intellectual o Educated and knowledgeable of all aspects, no surprises o Understand next phase and/or steps · Behavioral o Customer is communicative o Customer continues to meet any deadlines and provide appropriate performance updates o Customer understands and follows proper support channels · Culminating Status o Project results are acceptable to customer o Customer receiving benefits of service/ product o No surprises o Willing to consider and/or offer referrals 24
Stage 3 – Intelligence
Knowledge creation
25
Attributes
Customer Experience
· Emotional
?
? ?
?
Customer and vendor are sharing information in an effort to glean as much information about operational excellence experience as possible including how customer’s customers are being impacted by experience Vendor learning customer’s strategic goals Vendor learning what needs are not being met for customer (i.e., new opportunities to provide solutions) Delivering the right information to the right people at the right time
?
?
?
?
o Satisfied o Trusting o Willing to share more and more information · Intellectual o Considering other ways vendor can help o Analyzing learnings to opportunities for innovation · Behavioral o Sharing information o Considering and/or referring vendor to colleagues and peers · Culminating Status o Have gathered information necessary to consider value creation through innovation and/or considering other products or services form vendor
26
Stage 4 – Value Creation
Referrals
27
Attributes
? ? ?
Customer Experience
? ?
?
Applying learning to drive innovation Creating new products, services, relationships, revenue, cost savings Creating new or optimize standard operating procedures and communication channels Delivering right information to the right people at the right time
?
?
· Emotional o Fully trusting · Intellectual o Actively focused on innovation · Behavioral o Partnering for innovation o Staff are working in conjunction with vendor on innovation projects · Culminating Status o New processes, services, products developed with company o Actively referring friends etc to company
28
In summary
29
?
When engagement slides, so do other key outcomes, including future sales, growth, and profit Customer engagement provides a sharper and more relevant picture of brand health than do any number of other measures that companies and analysts typically rely on. Engagement reveals the extent to which a company has created strong -- and valuable -- brand marriages and it provides a sensitive monitor of the ebb and flow of the company's brand relationships.
?
?
30
? ?
Hold regular Customer Engagement audits
Set benchmarks per channel to allow for tracking of future audit results Define each moment of truth and access if the experiences deliver on the brand promises Integrate processes, communication channels and campaigns to deliver consistent messages Consistently work at it – the job is never done
?
?
?
31
?
Questions?
32
doc_598262380.ppt
Customer engagement (CE) is the engagement of customers with one another, with a company or a brand.
Customer Engagement Strategies
The glue that binds us
1
?
Customer satisfaction is just the minimum; your goal is to engage your customers.
?
Engaged customers assure a business of sustained and profitable growth.
2
The lay of the land
?
All customers may be created equal, but they sure don’t wind up equally loyal to your company or brand. Some become strong, enthusiastic, and committed. Others do not. That’s a given.
?
What is not a given, however, is the size of the ?loyalist? segment for any given brand. That number can vary markedly from brand to brand.
Customers have relationships with the brands they buy and use, and these relationships will ebb and flow over time based on how companies treat their customers.
?
?
Nurturing loyal customer relationships is critically important and has enormous financial consequences in tighter economic times.
Nonetheless, most companies don’t understand what they can do to create customer engagement and have made little progress in managing it.
?
3
Why is this?
?
A great number of companies have paid attention to the
wrong outcomes
preferring to focus on those that are easy to manage and control, while ignoring outcomes that are harder to measure and difficult to manage.
?
Focusing on the wrong target outcomes, leads to use of the wrong measurement tools—such as defining ?loyalty? as
purchase frequency/share
and then trying to build that loyalty by buying it, or by creating short-term cost efficiencies that potentially damage customer relationships.
4
Engaging the customer
?
As a result of their various encounters with a brand, customers can become emotionally attached to or “engaged” with the brand, or—more worrisome—they can become “disengaged.” When customers are disengaged, they reduce their visits and purchases. They spread the word and share their discontent with others. They leave, sometimes in droves, for the promise of greener pastures.
?
5
You don’t own me
?
Customer relationships can be lasting, but they often aren’t.
?
In part, that’s because there are an increasing number of competing options, all equally attractive (or, at times, equally unattractive).
Similar cars at similar prices, similar long distance services at similar rates, similar airlines with similar prices headed to similar destinations — it all results in ?me-too? marketing, with ?me-too? brand promises. Similarity doesn’t produce customer engagement. Similarity creates commodities, differentiated only by the prices they charge.
?
?
6
Reaping the harvest, and paying the piper
?
How prevalent is ?customer engagement? among U.S. consumers? How bonded are they to the brands they use?
Well, their engagement level is not nearly as strong as marketers might hope.
?
?
A recent study by The Gallup Organisation of more than 3,000 customers across six different product and service categories, found that about one in five (21%) of these customers is ?fully engaged? with the brands they use, own, shop for or buy most often.
Importantly, an even higher number is ?actively disengaged.? More than one in four (28%) U.S. customers are actively disengaged with the brands they use and own.
?
7
?
?Actively disengaged? means that these customers feel no sense of loyalty, they exhibit no discernable pride in association with the brand, they have little trust in the brand or in how it treats customers. What’s more, they view the brand as easily replaceable. In short, they are ripe candidates for defection. There are, of course, notable differences between categories. Yet, even in a highly marketed, brand-differentiated and high-involvement category such as automobiles, about a quarter (26%) of those who purchased a new car in the past four years would be categorized as ?actively disengaged? with the brand they own. Think they’ll be back for another? Not without a huge rebate — or not without a massive and pervasive culture change within the vehicle manufacturer and its dealers, that results in them paying real and meaningful attention to their customer relationships.
?
?
?
8
Why should they?
?
Some brands, not surprisingly, do a better job, but even the bestperforming brands should know that 14%-30% of their customers are actively disengaged. What’s worse, nobody seems to be doing much to change this. Why should companies respond and change the ?disengagement? issue? Because disengagement is a major missed opportunity, and it is expensive. Disengagement is manageable. It can be addressed. And while it cannot be eliminated, it can certainly be reduced.
?
?
?
9
What does all of this imply?
? ?
First, that it’s easier to identify the problem than to solve it. Significant organisational commitment and investment is needed if companies want to address the opportunity and the risk represented by customer disengagement. Can this be done? Yes, but not by simply adding another Web site, increasing ad spending or launching yet another ?top-down? corporate initiative aimed at speeding up the checkout line or getting the sales staff to smile more. It implies a coordinated and fully integrated ongoing program of relevant measurement and meaningful intervention that reaches deeply throughout the organisation, to change all customer touch points. Simple? Hardly. Important? Definitely.
?
?
?
10
Back to the start
11
Engagement further defined….
?
Customer Engagement is the state of alignment of Brand Promises, Business Processes and Customer Experiences. Misaligned Business Processes result in disconnects between Brand Promises and Customer Experiences These misalignments create ?hot-spots? that are moments of truth when the customer experience falls short of the Brand Promise.
?
?
12
13
The Four stages of customer interaction
?
By identifying and applying the Four Stages of Customer Interaction, companies can develop the vision and processes to ensure their Brand Promises are realised as Customer Experiences throughout the customer life-cycle.
?
Each of the four stages defines what customers should be feeling, thinking and doing in each stage, as well as a desired end state.
The four stages are: ? Initiation ? Integration ? Intelligence ? Value creation
?
14
?
In order to develop relationships with customers that result in repeat business, referrals, profitable relationships and high life-time value, the following statements must be core to customer facing activities and processes:
? ?
?
?
?
Every interaction with customers (or lack of interaction) tells customers how much they are truly valued These interactions are moments of truth - when a customer learns if promises made to them (the brand) will be honored or not In order to create great experiences for customers, companies must know what they want customers to feel, think and do at every stage of the relationship The most unsatisfied customers can be a company’s greatest resource for innovation. Customer engagement failures must be pursued aggressively to find out how to create great experiences and value WITH – not for –customers Business Processes must enable Brand Promises to be realised as Customer Experiences
15
?
Moments of truth, when repeatedly resulting in positive outcomes and experiences, lead to customer loyalty. But what is customer loyalty? Is it repeat purchases by a customer? Is it a customer who gives a company a second chance when they fall short on delivering the appropriate experience? Is it a customer who refers others to a supplier/ retailer? Loyalty is all of that and more. Customer loyalty is a state of being that is defined by behaviors and experiences on BOTH sides of the relationship – retailer/ company and customer – that lead to a state of value creation for both parties. Loyalty can’t be measured by repeat business alone. A customer may not have a viable alternative currently, but the moment they do, they’re gone.
?
?
?
16
?
Regardless of how you define customer loyalty and how you measure it, the question really is:
“How does a company ensure its Brand Promises are realised as positive Customer Experiences?”
?
The link between Brand Promises and Customer Experiences is Business Processes.
?
The Four Stages of Customer Interaction are designed to enable companies to ensure their Business Processes create the Customer Experiences their Brand Promises promise.
17
The Four Stages in more detail…
18
?
Initiation – the active management of welcoming (on boarding) a new customer and beginning the relationship
Integration– the active management and assessment of the product or service after the initiation stage has been completed. The ultimate goal of the Integration stage is achieving operational excellence Intelligence – the active management of gathering all previous learnings from the Initiation and Integration stages, conducting additional research, assessing performance of the customer and the company, the company deciding what level of further relationship investment is warranted from a financial return standpoint, and developing an understanding of the customer’s long-term strategic goals Value Creation – the active management of developing a partnership with the customer to become a part of the customer’s performance and everyday life, create new value, and gain recommendations from the customer for new business
19
?
?
?
Implementing the Stages begins with several questions, including:
?
Has the company clearly defined the Emotional, Intellectual and Behavioral objectives for all customer facing processes and programs?
What are the most important moments of truth where a company fails to live up to expectations?
?
? ?
Are Customer Experiences truly the realisation of Brand Promises?
What processes are in place to ensure customers are having loyalty building experiences throughout the customer life cycle? How easy is it for customers to provide meaningful feedback? What customer needs are not being met? What is the financial impact of existing customer-facing processes?
20
? ? ?
Stage 1 – Initiation
Welcome on board
21
Attributes
?
Customer Experience
?
?
?
Welcoming information and materials provided and explained to customer Robust project processes and communications protocols established Delivering the right information to the right people at the right time
?
?
?
Emotional: o Satisfied with retailer/ supplier selection o Confident about the likelihood of success o Anxiety-free start-up with no sense of being overwhelmed · Intellectual: o Understand process and product information o Focused on how to successfully apply product/ knowledge · Behavioral: o Actively engaged with company and product o Communicating clearly about issues · Culminating Status: o Clear understanding of product and product information o No surprises
22
Stage 2 – Integration
Operational Excellence
23
Attributes
? ? ?
Customer Experience
?
Project/ service is completed from implementation standpoint All components/ aspects are operational Delivering right information to the right people at the right time
?
?
?
· Emotional o Satisfied with process/progress/product o Anxiety-free transition to operational stage · Intellectual o Educated and knowledgeable of all aspects, no surprises o Understand next phase and/or steps · Behavioral o Customer is communicative o Customer continues to meet any deadlines and provide appropriate performance updates o Customer understands and follows proper support channels · Culminating Status o Project results are acceptable to customer o Customer receiving benefits of service/ product o No surprises o Willing to consider and/or offer referrals 24
Stage 3 – Intelligence
Knowledge creation
25
Attributes
Customer Experience
· Emotional
?
? ?
?
Customer and vendor are sharing information in an effort to glean as much information about operational excellence experience as possible including how customer’s customers are being impacted by experience Vendor learning customer’s strategic goals Vendor learning what needs are not being met for customer (i.e., new opportunities to provide solutions) Delivering the right information to the right people at the right time
?
?
?
?
o Satisfied o Trusting o Willing to share more and more information · Intellectual o Considering other ways vendor can help o Analyzing learnings to opportunities for innovation · Behavioral o Sharing information o Considering and/or referring vendor to colleagues and peers · Culminating Status o Have gathered information necessary to consider value creation through innovation and/or considering other products or services form vendor
26
Stage 4 – Value Creation
Referrals
27
Attributes
? ? ?
Customer Experience
? ?
?
Applying learning to drive innovation Creating new products, services, relationships, revenue, cost savings Creating new or optimize standard operating procedures and communication channels Delivering right information to the right people at the right time
?
?
· Emotional o Fully trusting · Intellectual o Actively focused on innovation · Behavioral o Partnering for innovation o Staff are working in conjunction with vendor on innovation projects · Culminating Status o New processes, services, products developed with company o Actively referring friends etc to company
28
In summary
29
?
When engagement slides, so do other key outcomes, including future sales, growth, and profit Customer engagement provides a sharper and more relevant picture of brand health than do any number of other measures that companies and analysts typically rely on. Engagement reveals the extent to which a company has created strong -- and valuable -- brand marriages and it provides a sensitive monitor of the ebb and flow of the company's brand relationships.
?
?
30
? ?
Hold regular Customer Engagement audits
Set benchmarks per channel to allow for tracking of future audit results Define each moment of truth and access if the experiences deliver on the brand promises Integrate processes, communication channels and campaigns to deliver consistent messages Consistently work at it – the job is never done
?
?
?
31
?
Questions?
32
doc_598262380.ppt