Download - Measuring and Driving Customer Engagement
Measuring and Driving Customer Engagement
Voice of the Customer Conference
Michael PaceDirector of Customer Support & Community Manageement Constant ContactSeptember 20, 2011
CONFIDENTIAL Copyright © 2011Constant Contact, Inc.
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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
touch
Constant Contact (CTCT) Overview
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Our challenge?
Continued success in customer acquisition, but
Growing numbers of customer attrition !
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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 reasons
Source; “Measuring Customer Engagement”, a commissioned study conducted by Forester Consulting on behalf of Adobe Systems Inc., May 2008
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Organizations that create a high level of engagement with their customers are more successful than those who don’t!
Source: Customer Engagement, What’s Your Engagement Ratio?, Gallup Consulting, 2009
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 measures
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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.
Why Customer Engagement is critical to our long-term success
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A: It’s a simple summation of multiple engagement scores
Q: Is it a complex, multivariate, canonical correlation analysis of discriminant, recursive clusters?
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 something our customers would find difficult to follow?
A: All components of the CSI score must be actionable!
So what is CSI?
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Mailing Activity
Dimension X
List Activity
Dimension X
Dimension Y
Dimension Z
Results
Dimension X
Dimension Y
Dimension Z
Product Usage
Dimension X
Dimension Y
Dimension Z
CSI Score
What makes up the overall CSI score?
Additional Assets
Dimension X
Dimension Y
Dimension Z Etc.
* Under consideration
CSI wrapped around our Product, KnowHow, and Coaching with a Personal Touch enable CTCT to:
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Target our customers with specific, prescriptive actions that put them on and keep them on the “happy path”
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Provide employees with actionable insight on how best to influence engagement
Put our customers in the best possible position to become successful engagement marketers
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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 products
CSI scoring helps Constant Contact better engage with their customers in three ways
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At CTCT, the correlation between CSI scores and customer attrition is very strong
Att
riti
on
Ra
te
% o
f C
us
tom
er
Ba
se
0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
Attrtion % % of Customers
Inactive Fans
Active Participants
Lower Interest
Brand Advocates / Champions
CSI ScoreAn objective and behavioral
activity/engagement score – measures interaction
NP
S/C
-Sat
A subjective and
emotional score
provided by customer – measures depth of
relationship
Engagement coupled with Satisfaction represents the “perfect marriage”
NP
S/C
-Sat
A subjective and
emotional score
provided by customer – measures depth of
relationship
CHI ScoreAn objective and behavioral
activity/engagement score – measures interaction
Amplit
ude
Customer’s ability to project
emotional sentiment &
activity through social
graph
Inactive FansBrand
Advocates / Champions
Lower Interest Active Participants
Future steps include using customer’s social graphs to understand how loud they can speak their mind
Contact Info
Michael PaceDirector of Customer Support &
Community Management
Constant Contact
Twitter: @mpace101
Blog: www.thepaceofservice.com
Text: SOCSERVICE to 22828
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