Measuring and Driving Customer Engagement

Download Measuring and Driving Customer Engagement

Post on 14-Jan-2015

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Developed by Larry Streeter and myself to show a different way to measure customer engagement by using customer behavioral actions.

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<ul><li> 1. Measuring and Driving Customer EngagementVoice of the Customer ConferenceMichael PaceDirector of Customer Support &amp; Community ManageementConstant ContactSeptember 20, 2011CONFIDENTIAL Copyright 2011Constant Contact, Inc.</li></ul> <p> 2. Constant Contact (CTCT) OverviewOur Mission: Help small organizations create andgrow customer relationships Our Market: 25M small businesses, non-profits andassociations, 500K customers todayOur Product: Suite of marketing tools including email marketing, online survey, and event managementOur Business Model: SaaS software with a monthlysubscription fee Our Success Formula: Great product backed up with KnowHow and coaching with a personal touchCONFIDENTIAL Copyright 2011Constant Contact, Inc. 2 3. Our challenge? Continued success in customer acquisition, but Growing numbers of customer attrition !CONFIDENTIAL Copyright 2011Constant Contact, Inc. 3 4. How do we define Engagement?Committed to a long-term relationshipProactively involvedEmotionally, psychologically, and physically connectedSimply Satisfying customers is not enough Customers may be pleased with your service or product butlack an emotional connection to your company Can result in customer attrition for minor reasonsSource; Measuring Customer Engagement, a commissioned study conducted by Forester Consulting on behalf of Adobe Systems Inc., May 2008CONFIDENTIAL Copyright 2011Constant Contact, Inc.4 5. Organizations that create a high level of engagementwith their customers are more successful than thosewho dont!Fully engaged customersrepresent an average 23%premium in terms of share ofwallet, profitability, revenueand relationship growthActively disengagedcustomers represent a 13%discount in those samemeasuresSource: Customer Engagement, Whats Your Engagement Ratio?, Gallup Consulting, 2009CONFIDENTIAL Copyright 2011Constant Contact, Inc.5 6. Why Customer Engagement is critical to our long-term success 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 customers engagement with CTCTs products and services.The goal of our Customer Success Index (CSI) is toput a tool into the hands of those employees whoinfluence customers that provides clear direction foreducating and coaching them toward a higher levelof engagement.CONFIDENTIAL Copyright 2011Constant Contact, Inc. 6 7. So what is CSI?Q: Is it something that predicts futurebehaviors?A: Its a measurement of a customers level of engagement at any point in time. Q: Is it a complex, multivariate, canonicalcorrelation analysis of discriminant,recursive clusters? A: Its a simple summation of multipleengagement scores Q: Is it something our customers would finddifficult to follow? A: All components of the CSI score mustbe actionable!CONFIDENTIAL Copyright 2011Constant Contact, Inc. 7 8. What makes up the overall CSI score?MailingList Product Results CSIActivity ActivityUsageScoreDimension X Dimension X Dimension X Dimension X Dimension Y Dimension YDimension YDimension ZDimension ZDimension Z Additional* Under considerationAssets DimensionDimension DimensionEtc.XYZCONFIDENTIAL Copyright 2011Constant Contact, Inc.8 9. CSI wrapped around our Product, KnowHow, and Coaching with a Personal Touch enable CTCT to: Target our customers with specific, prescriptive actions that put them on and keep them on the happy path Provide employees with actionable insight on how best to influence engagement Put our customers in the best possible position to become successful engagement marketersCONFIDENTIAL Copyright 2011Constant Contact, Inc.9 10. CSI scoring helps Constant Contact better engagewith their customers in three ways Helps Sales with onboarding new customers Enables Marketing to target customers with more tailored messages Enhances Supports ability to coach customers to maximize the benefit of our productsCONFIDENTIAL Copyright 2011Constant Contact, Inc. 10 11. At CTCT, the correlation between CSI scores andcustomer attrition is very strong% of Customer Base Attrition Rate0-10 10-20 20-30 30-40 40-5050-6060-70 70-80 80-9090-100 Attrtion % % of CustomersCONFIDENTIAL Copyright 2011Constant Contact, Inc. 11 12. Engagement coupled with Satisfaction represents theperfect marriage Brand Advocates / A subjectiveInactive Fans andChampionsNPS/C-Satemotionalscore provided by customer measuresLower Interest Active Participants depth of relationshipCSI Score An objective and behavioralactivity/engagement score measures interaction 13. Future steps include using customers social graphs to understand how loud they can speak their mindCustomersability to project Brand emotionalA subjective Inactive Fans Advocates /sentiment &amp;and Champions activity NPS/C-Sat emotionalthrough scoresocial graphprovided bycustomer measuresLower Interest Active Participantsdepth ofrelationship CHI ScoreAn objective and behavioral activity/engagement score measuresinteraction 14. Contact Info Michael PaceDirector of Customer Support &amp; Community ManagementConstant Contact Twitter: @mpace101 LinkedInBlog: www.thepaceofservice.comText: SOCSERVICE to 22828 14 </p>

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