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THE EVOLUTION OF SHOPPER MARKETING CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 1

CUSTOMER
ENGAGEMENT

BEST PRACTICES GUIDE


CUSTOMER Best Practices Guide
ENGAGEMENT
Table of Contents
Executive Summary 3
What Is Customer Engagement? 5
Benefits of Customer Engagement 6
Understanding Customer Engagement 8
Customer Engagement Map 10
Customer Engagement Roles Matrix 21
Customer Engagement Maturity Model 23
Customer Engagement Vendor Solutions 26
Analyst Bottom Line 31

Action Plan 32

About 43
EXECUTIVE SUMMARY CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 3

Executive Summary
A new question is challenging the Modern Marketing Organization (MMO). Overview
Demand Metric’s research, benchmark studies, methodologies, and tools
have consistently shown that Customer Engagement drives revenue and
Yesterday’s question was: profits for the organization when Customer Engagement is employed as
“How can we improve the experience our customer an aligned strategy of best practices for people, processes, and tools in a
has with our company, brand, product, or service?” coordinated, holistic approach.
In this Best Practices Report on Customer Engagement we will provide
Today’s question is:
best practices, insights, and vendor analysis in five distinct categories:
“How well is the customer engaging with us?”
Personalization Platforms
Not how can we “engage the customer,” but how are
Voice of the Customer (VoC)
they engaging with us?”
Gamification
Online Communities & Social Media
Advocacy and Loyalty Platforms
The answer to that question is at the core of Customer Engagement,
which views the customer-vendor relationship from the perspective We will approach this report as organizations should be approaching
and willingness of the buyer. Customer Engagement: from the viewpoint of the buyer rather than from
the seller.
It is not about just doing business with us; instead, it is to embrace us,
prefer us and stay with us, even when lower prices and “better” options We’ll look at the buyer’s journey from the problem identification trigger
come calling. through the stages of evaluation, validation, purchase, and on to relation-
ship building, advocacy, and loyalty.
It is to help the MMO answer that core question and implement strate-
gies, processes, and best practices for Customer Engagement that we
have produced this report.
EXECUTIVE SUMMARY CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 4

Our goal is to enable the MMO to create a holistic, end-to- end, measurable approach to Customer Engagement. We present three models to enable
modern marketers to take a holistic approach to Customer Engagement. These models are:

The Customer Engagement Map, which follows the buyer The Demand Metric Customer Engagement Framework,
through the entire journey, highlighting critical junctures, which highlights the roles, responsibilities, processes, tech-
best practices, and solutions while examining relevant plat- nology, content, and metrics for effective Customer Engage-
forms, tools, and applications. ment strategies and practices.

VIEW RESOURCE VIEW RESOURCE

The Demand Metric Customer Engagement Maturity


Model, which shows the progression and pathway an Our Vendor Solutions section covers the Customer Engagement systems,
organization should take to mature in its use of Customer vendors, and applications from the five Customer Engagement functions
Engagement from Undefined to World Class. noted above. Each of these categories is covered in more detail in our
Technology Overviews series.
CUSTOMER ENGAGEMENT
Maturity Model

STAGE 3 - Mature
STAGE 4 - World-Class Demand Metric’s key recommendation from this report is that Customer
STAGE 2 - Progressive

Engagement drives revenue and profits for organizations when


Customer STAGE 1 - Undefined
Engagement
Defined, integrated strategy for
Customer Engagement exists across an
Defined strategy and processes exist for

VIEW RESOURCE
Enterprise; Coordinated effort between
Strategy is uncoordinated; Aware of Customer Engagement across an Enter-
Marketing, Sales and Customer Care to

Customer Engagement is employed as an aligned strategy of best prac-


No defined strategy or process for need to create a customer journey prise; Touch points are coordinated across
provide closed loop engagement
Orientation Customer Engagement experience; Projects are developed and functions to meet customer expectations
delivered ad hoc

Sees Customer Engagement as just


Views Customer Engagement as
important; Allocates budget & staff
Views Customer Engagement as the
primary focus of marketing; Long-term
commitment to Customer Engagement;
Views Customer Engagement as the
primary marketing focus; Organization
aligned around Customer Engagement
tices for people, processes, and tools in a coordinated, holistic approach.
for sales and revenue impact
one part of traditional marketing, not resources to explore program and Willing participant; Resources for growth
Leadership a focus campaign options to drive revenue

Platforms, applications and workflows


Tools and platforms for all customer
journey points, from problem identifi-
Utilizes comprehensive, end-to-end
system integration of all Customer
Engagement related platforms with
We offer this Best Practices Report to enable your organization to make
Development; Point tools for Email, that perform specific functions have cation to advocacy development, have tight integration to Enterprise CRM, MA

your Customer Engagement initiative the best that it can be.


Content and Social Media Marketing; been implemented for the buyer’s been implemented; Maintain 360-degree and other legacy ERP systems
Tools & No Online Community, Personalization journey and personas, but little coor- customer profiles and implement behav-
Platforms or Loyalty tools/applications dination across Sales, Marketing and ioral targeting
Customer Care exists
WHAT IS CUSTOMER ENGAGEMENT? CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 5

What Is Customer Engagement?


Demand Metric defines Customer Engagement as:

The strategies, processes, technology, and


tools that enable an organization to attract,
gain, retain, and influence the behavior of
customers consistently and effectively across
all touch points throughout the lifetime of the
customer’s relationship with the company.

Equally important, from the buyer’s point of view, Customer Engagement


is the buyer’s on-going connection to and growing appreciation of the
company’s brand, people, products, and services through every interaction
and touch point during the lifetime of their relationship with the company.

Done well, Customer Engagement fosters a lifelong advocate (think


Apple) who embraces the company and brand beyond any one product
or service experience.

Use Demand Metric’s Customer Engagement Maturity


Assessment to find out where your company stands with VIEW RESOURCE
Customer Engagement.
BENEFITS OF CUSTOMER ENGAGEMENT CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 6

Benefits of Customer Engagement


The benefits of effective Customer Engagement span across the MMO, For Customer Success, the
impacting the following roles and departments: Senior Management, benefits include:
Customer Success, Sales and Account Management, Sales Operations,
Marketing and Demand Generation, Strategic Communications, Product An increase in measurable Customer Satisfaction Index
Management, and Customer Care. Increased Customer Lifetime Value (CLV)
An increase in Net Promoter Score (NPS)
An enterprise-wide dashboard with visual representa-
For Senior Management, the
tion of user acquisition and engagement by behavior,
benefits include: experience, etc.
Increased revenue (by product/service, channel, and The ability to influence marketing, sales, and customer
customer) care activities to increase Customer Engagement
An increase in quantifiable Customer Lifetime Value
(CLV) For Marketing, the benefits include:
Profitability (higher return on customer)
Higher market share, profitability
A holistic view of the customer
Stronger brand equity
The ability to build strategy and processes around
Higher content usage
defined customer ROI
Higher campaign ROI & email metrics
More Marketing Qualified Leads (MQLs)
Higher contribution to pipeline and conversion rate
BENEFITS OF CUSTOMER ENGAGEMENT CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 7

For Sales, the benefits include:


Higher percentage of quota achieved
Higher renewal rate and revenue
More qualified opportunities
Lower Cost per Lead (CPL)
Lower Cost of Acquisition (CAC)
More Sales Qualified Leads (SQLs)

For Customer Care, the benefits include:


Lower average time to resolution
Fewer percentage of escalations to Tier 2 and above
Higher Net Promoter Score (NPS)

The benefits of Customer Engagement (Customer Experience and Voice


of the Customer) can only be fully realized when the entire organization
is willing to re-orient its strategy, processes, and culture to a new way of
thinking that is customer-centric rather seller-centric.

It’s not an easy change and it is the goal of this Demand Metric report to help
you get there.
UNDERSTANDING CUSTOMER ENGAGEMENT CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 8

Understanding Customer Engagement


From Customer Experience to Customer Engagement

Demand Metric positions Customer Engagement as the evolution of If customers aren’t coming to the company, the company must actively
Customer Experience (CX) and its corollary Voice of the Customer (VoC). reach out to them with the right “touch” to create a connection for
that point of the journey.
This is based on the reality that companies cannot really control the
customer’s experience. Every touch across the omni-channel is critical. This is why making
Customer Engagement a corporate priority and not simply a sales or
They can influence it, but they cannot control it. Numerous studies have
customer service issue is so important to revenue success.
shown that the buyer completes from 55% to 75% of their purchasing
decision journey before they contact the company or sales rep.

That means marketers and customer success teams must be creative in


how they engage with potential customers.

Use Demand Metric’s Customer Engagement Strategy


Workbook to provide senior management with a one-page
VIEW RESOURCE
document that clearly outlines your action plan for
Customer Engagement.
UNDERSTANDING CUSTOMER ENGAGEMENT CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 9

From Sales Enablement to Sales Engagement The Power of Online Customer Engagement

As Customer Experience is rapidly evolving into Customer Engagement, a As we know, the buyer travels up to 75% of their journey without direct
similar evolution is occurring within sales organizations beginning with an engagement with the company being considered. Equally, we know that
important mindset change: Sales Enablement is about helping sales per- most of that journey takes place online, especially in the B2C space.
form better under the reasonable belief that if the sales team is performing
While offline Customer Engagement still occurs, especially with retail
better, it is closing more deals and producing more revenue.
consumers, it plays a decreasing role in the buyer’s journey.
With that, Senior Management, Marketing, and Customer Support strive
New Customer Experience/Engagement platforms from Personaliza-
to provide better tools, support, and education to sales teams.
tion, Advocacy, and Loyalty vendors now reach customers on their
The dangerous gap here is that Sales takes the new tools and educa- phone with online offers while they are physically in the store.
tion, but does not initiate a behavior change.
The trend is obvious even in the B2B space where, due to the nature and
Sales still approaches customers in a traditional way of product presen- size of the transactions, sales teams are more personally and directly
tation, response, objection handling, etc. to the final win/loss conclusion. involved.

Focusing on Sales Engagement changes the relationship dynamic and Sales teams rely on tablet-driven, cloud-powered presentation tools
the sales mindset from “selling” to “listening, learning, offering, and and applications to provide the prospective customer with the best
supporting” the buyer’s journey. experience.

It dramatically alters the sales conversation and the way the product/
service is presented. It enables Sales to find a way to deliver what the
customer really needs rather than “what’s in the bag.” Today’s mantra is
“helping is the new selling.”

In our Customer Engagement Maturity Model (page 23), we explain the


best practice steps needed to move sales account teams and Sales Op-
erations from an “Undefined” view of Customer Engagement to a “World-
Class” one.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 10

Customer Engagement Map


The path toward World-Class Customer Engagement begins with the buyer’s journey.

In Demand Metric’s Customer Engagement Map, we present the journey from identification by the customer of the problem or need they are facing
(Problem Identification) to the ideal point when they become an engaged advocate of the brand, company, or product (Advocacy & Loyalty).

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Problem Identification
In this model, we view problem identification as primarily an
internal customer step with one proviso: if the prospect is already
a customer (even of another unit or division), best practices indi-
cate that triggers should be set through your CRM or database to
alert the sales team to a possible upsell or cross-sell opportunity. VIEW RESOURCE

Use Demand Metric’s Customer Engagement


Business Case to build a business case for your
problem or challenge.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 11

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Research
This is a great, but often missed, opportunity for Customer Personalization platforms offer a range of capabilities that include
Engagement. In both B2B and B2C environments, prospects targeting visitors based on origin and behavior, and providing
begin their research with past experiences, referrals, commu- personalized content, messages, and offers to sophisticated
nity exchanges, and website visits. Your company needs to be big-data driven analytics platforms make real-time product
ready for this kind of engagement. recommendations and that can predict and adapt to customer
choices in real-time with targeted engagement strategies.
This is where personalization platforms come in.

Use Demand Metric’s Personalization Vendor Matrix to


VIEW RESOURCE
evaluate the vendors in this technology space.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 12

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Technology Evaluation
At this stage, buyers are starting to make choices, zeroing in on Equally important at the customer contact stage are Feedback
the product or services they are most interested in. They are and Chat platforms. VoC/Feedback Platforms offer a range of
likely to engage the company, and if they are B2B, they may engagement options, from surveys to social commerce engines,
present an RFP. The sales team gets the opportunity to directly that continually capture and provide customer input to improve
engage the customer. VoC engagement.

The three platform solutions used to provide best practice Feedback platforms often support omni- or multi-channel envi-
Customer Engagement at this stage are: Personalization plat- ronments and include detailed analytics and sophisticated
forms, Voice of the Customer/Feedback/Chat platforms, and reporting options.
Online Communities & Social Media platforms.
Chat programs provide the connection point to engage if the
Personalization platforms that provide sentiment analysis, visitor chooses. Basic chat sits passively on the Website waiting
behavioral targeting, and a 360-degree view of the customer for the customer. More sophisticated chat platforms track Web
are critical here to drive the precise content the buyer is looking visitor activity and offer a chat option at the exact point when the
for based on their exact buying criteria. visitor is most likely to want to engage.

Use Demand Metric’s Voice of the Customers Vendor


VIEW RESOURCE
Matrix for an analysis of the vendors in this space.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 13

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Validation
At this stage, buyers have narrowed their focus to a short list of VoC platforms engage the customer through the integration of
vendors, usually no more than three. purchase activity, survey responses, social conversations, and
commentary.
Potential customers will ask for a demo, request a pilot program,
or use the free trial. First level VoC products offer a profile of the customer’s wants,
needs, and level of satisfaction with current solutions.
This is the company’s opportunity to improve engagement
using VoC platforms. Sophisticated VoC platforms mine and aggregate data to
provide business insights that can be used to develop or
VoC, Feedback, and Chat platforms for website, social,
change the effectiveness of engagement programs.
in-store, and product feedback focus on collecting, analyzing,
and leveraging customer feedback across all touch points Solutions mature from a single survey and post transaction
to increase conversion, drive in-store traffic, and measure reporting to proactive actionable insights that drive Enter-
customer lifetime value (CLV). prise-wide decisions.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 14

Between Step 4 (Validation) and Step 5 (System Acquisition)

Social Media and Online Communities become critically important to the Several best practices stand out in Step 3 (Evaluation) & Step 4 (Valida-
buyer’s journey. These networks and communities are full of customer tion) prior to reaching Step 5 (Product/Service Acquisition), which are:
insights: forums, Q&A, group chats, posts, comments, lists, reviews, etc.
Customer Engagement in Social Communities goes beyond listening or 1 Implement a 360-degree view of your customer profiles that
responding to comments. combine customer data from all sources.

Social data should be integrated into VoC platforms. 2 Purchase a personalization platform or website personaliza-
Beyond that, companies should consider creating a private Online tion application.
Community where they have more influence and control over community
3 Create a VoC strategy for your organization, beginning with
activity, and better access to behavioral insights than in the big public
solving any outstanding customer issues, and progressing to real-
social networks.
time analysis of customer behavior to predict behavior, influence
the buyer’s journey, and guide the brand’s engagement strategy.

4 Consider creating an Online Community for your company


rather than relying exclusively on general social networks for
customer insights. Demand Metric’s Online Community Play-
book can help here.

Use Demand Metric’s Online Communities Vendor Matrix


VIEW RESOURCE
for an analysis of the vendors in this space.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 15

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Product/Service Acquisition
At the acquisition stage, if not before, the buyer connects with In B2B journeys, product/service acquisition becomes a more
the company. If it is an online purchase, the customer passes complex process. Vendors will often work with buyers on
through an eCommerce site. system design, customization, and implementation at this stage.
Self-service feedback systems often need to be augmented
A best practice here is to collect more than the purchase
with live support. Capturing the Customer Experience through
information. The site should collect satisfaction with buying
Customer Care is a key component of this stage.
process and current sentiment toward the company, brand,
and product; how and what motivated the purchase through
pop-up and/or a follow-up survey.

Ideally, that information should be integrated with any interest,


activity, or behavioral data collected in prior contact with the
company to provide a robust buyer profile.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 16

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Product/Service Implementation
At the implementation or delivery stage, Customer Care can For marketers, it creates a better understanding of customer
really shine. Here education, training, and support are critical drivers as well as the opportunity for relationship building. For
as the company will be judged on the speed and quality of their system implementation, Gamification can help drive the adop-
responses. tion of new products, services, and technologies, both internally
and externally.
Gamification can be an asset to learning and adaption of new
tools for both employees and customers. Sales and Customer Care teams in particular can benefit from a
little gamified competition, and the metrics built into Gamifica-
Gamification incorporates game-design mechanics into
tion platforms are valuable to Operations.
non-game applications and environments to make them more
engaging, while adding a dimension of fun and competition. On the customer side, Gamification can drive social and commu-
nity activity around the new solution.
Gamification is a means to an end; and in broad terms, that end
goal is behavior change leading to customer excitement and
loyalty.

Use Demand Metric’s Gamification Vendor Matrix for


VIEW RESOURCE
an analysis of the vendors in this technology space.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 17

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Relationship Building
Customer Engagement, at this stage, starts with ensuring that the Best Practices at this stage include:
use of the product/service is flawless and enjoyable, and that the
Begin by ensuring that Chat and Feedback mechanisms
desired outcome is realized by the customer. Interactivity is a critical
are incorporated into your website with activity and
best practice for engagement in the relationship building stage.
response tracking activated.
Key platforms to focus on this stage are: Feedback, Chat and Provide Customer Care with an effective workflow so
VoC platforms, and Online Communities. issues are addressed quickly.
Best practices go beyond feedback and surveys to inviting the Implement a real-time VoC platform with multi- channel
new buyer to participate with others through Gamification and support for all customer touch points.
Online Communities where they can build trusted relationships Consolidate VoC data into one centralized database with
not only with the company but also with peers. Active VoC integration to the company’s CRM, Marketing Automation,
connections should do more than gauge satisfaction – they and ERP systems to provide actionable insights to key
should elicit ideas. stakeholders.
Online Community features, such as crowdsourcing and ideation Create/expand your Online Community to foster advocacy.
that build the foundation for advocacy, are valuable here.

When tied to Gamification, these activities will enable the


Community Manager to identify likely advocates for special
focus and reward.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 18

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Benefit Assessment
At this point in the buyer’s journey, the customer should be In the B2B space, the focus is on showing results. Results
comfortable with the product or service, formed an attachment range from increases in activity (shares, connections, etc.) to
from mild to strong with the company, and begun to uncover upsell and/or cross-sell opportunities to measurable increases
any flaws or issues. in sales, revenue, and profits.

In this stage, engagement focuses on resolving issues (if any), Best Practices in this stage are:
continuing to offer an enjoyable experience, and proactively
Use Demand Metric’s Advocacy and Loyalty Vendor
identifying ways to improve the customer’s loyalty.
Matrix for an analysis of the vendors in this space.
The primary platforms to focus on here are Loyalty and Advo-
Download Demand Metric’s Communications Touch Point
cacy platforms. For B2C brands, Loyalty platforms extend the
Diagram to ensure you plan out your customer contact
value of Online and Social Communities and infrastructure to
points.
enable customer registration in programs, track purchases, and
Ensure that Loyalty and Advocacy programs are tightly inte-
offer referrals.
grated with analytics.
They provide mechanisms for earning rewards based on transac- Use Demand Metric’s Customer Engagement Metrics Dash-
tions, such as coupons, special promotions, and advertisements. board to track the key metrics for your program.
Personalization platforms or capabilities help ensure that special
offers for customers are directly related to something that they
need or are looking for that day.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 19

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Account Expansion
At this stage, the ideal buyer is a frequent user of the product, Ideally, in B2B, you have gained a deep understanding of your
and a regular participant in Loyalty programs and Online company’s position as a preferred vendor within the customer
Communities. In the B2B space, the buyer would have finished organization, as well as the level of loyalty and advocacy behav-
a product roll-out and is seeing measurable results. iors your internal account champion has exhibited.

The engagement goal here is to upsell, cross-sell, gain share


of wallet, and receive quality referrals. The best practice
strategy is to have gathered the valuable data about the
behaviors, sentiments, and preferences of the customer.

Use Demand Metric’s Customer Lifetime Value


Calculator to determine your company’s CLV. Use
this information to plan a roadmap with the internal VIEW RESOURCE
champion on how to grow the account and lengthen
your relationship with them.
CUSTOMER ENGAGEMENT MAP CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 20

Customer Engagement Map


1 2 3 4 5 6 7 8 9 10

Advocacy & Loyalty


Loyal advocates are not just buyers, they are creators. They Increasingly, cutting-edge Online Community developers are
are creators of new customers by their enthusiasm for your integrating the Online Community profile, social profile, and the
product and innovators for your new services. Best practices Net Promoter Score (NPS) to gauge both high levels of advo-
at this step include creating private VIP communities, higher cacy and social influence.
level rewards, and more influence with the product, service,
Do not take these advocates for granted. Continue to engage
and/or customer service improvements.
and reward them. Treat them like the gold they are.

Use Demand Metric’s Customer Satisfaction Index


Calculator and Customer Advocate Database to VIEW RESOURCE
monitor your current and potential loyal advocates.
CUSTOMER ENGAGEMENT ROLES MATRIX CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 21

Customer Engagement Roles Matrix


Demand Metric’s Customer Engagement Roles Matrix (on the next page) 1 Roles: Does this role exist in your organization? If so, how well is it
provides the big picture structure for Customer Engagement across the staffed and resourced?
organization.
2 Responsibilities: For each role, evaluate how well the role is
It looks at eight departmental roles according to the responsibilities they handling the noted Customer Engagement responsibilities in the
hold, the processes they drive, the technology they use, the content they Framework or if they are handling them at all. If needed, adjust
produce, and the metrics to which they are held accountable. tasks so Customer Engagement is sufficiently addressed.

3 Processes: Develop or align the Framework processes by role to


Use this Framework to evaluate roles and responsibilities, develop
ensure they are covered.
processes, choose technology solutions, and measure progress.
4 Technology: Use the technology column as a benchmark against
Use the following guidelines in order to understand the infrastructure of
the products, services, and solutions you currently have to support
the Framework.
Customer Engagement.

5 Content: Use the content column as a benchmark to ensure


each role is producing the quality content needed for successful
Customer Engagement.

6 Metrics: Use the metrics column to track, measure, and report on


the performance of each role as it relates to Customer Engagement.

Use the Customer Engagement Metrics Dashboard to track


the Key Performance Indicators (KPIs) for your program.
VIEW RESOURCE
Update this dashboard on a monthly basis to generate high-
quality graphs that will show your progress.
CUSTOMER ENGAGEMENT ROLES MATRIX CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 22

Demand Metric’s Customer Engagement Roles Matrix

ROLES RESPONSIBILITIES PROCESSES TECHNOLOGY CONTENT METRICS

Revenue Accountability Budgeting & Planning WCM Thought Leadership Blog Revenue by Channel
Senior Management Customer Centric Strategy Reviews & Coaching CRM/Marketing Automation Webinar Presentations Customer Lifetime Value, NPS
Reporting to CEO/Board Recruitment & Retention Visualization/Dashboard Conference Keynotes Return on Customer (ROC)

Customer Engagement Strategy CX & On-boarding Personalization Platforms Buyer Personas Customer Satisfaction Index
Customer Success Customer Advocacy Customer Journey Mapping Advocacy & Loyalty Platforms Customer Journey Map Customer Lifetime Value Net
Identify Sales Opportunities Customer Persona Creation Online Community Platforms Proposals, Presentations Promoter Score (NPS)

Customer Acquisition
Sales Process CRM Compensation Model % Quota Achieved Renewal
Customer Retention
Sales/Account Mgmt. Opportunity Management VoC/Chat TCO/ROI Calculators Rate, Revenue Opportunity
Sales Opportunity
Contact Management Sales Content Portal Sales Playbook Metrics
Management

Build Reports & Dashboards Sales Forecasting/Compensation CRM New Features/Ideas for R&D Sales Qualified Leads
Sales Operations Monitor Sales Productivity Lead to Close Proposal/CPQ Objection Responses Cost Per Lead (CPL)
Data Management Territory Management Sales Content Portal Sales Scripts Cost of Acquisition (CAC)

Marketing Generated Pipeline Advertising/Sponsorship Marketing Automation/Email How-To Guides Campaign ROI, Conversion Rate
Demand Generation Inbound/Outbound Marketing Lead Generation & Nurturing Online Community Platforms Research Reports Marketing Qualified Leads
Omni-channel Marketing Tradeshows & Webinars Social Media & Gamification Webinars Contribution to Pipeline

Brand Strategy Marketing Budget Personalization Platforms Post, Tweets, Photos Market Share, Profitability
Strategic
Website/Online Communities Agency Management Advocacy & Loyalty Platforms Forums, Chat, Comments Brand Equity
Communications
Social/Mobile Marketing Strategy Communications Management Online Community Platforms Articles, Community News Content Usage

New Product Development Product Launch eCommerce Data Sheets, Whitepapers Avg. Revenue Per User
Product
User Experience Win/Loss Analysis Product Management Systems Case Studies/Testimonials Avg. Order Value
Management
Technical Evaluations Competitive Analysis Enterprise Feedback/Surveys Competitive Analysis Renewal/Repurchase Rate

Customer Insight/Feedback Helpdesk (Phone Support) Customer Support, Twitter New Features/Ideas for R&D Avg. Time to Resolution
Customer Care VoC – Peer Level Support Case/Ticket (Email Support) Enterprise Feedback/Surveys Support Scripts % Escalations to Tier 2 Net
Customer Satisfaction Online Community Requests VoC/Chat FAQs, SLA Promoter Score (NPS)
CUSTOMER ENGAGEMENT MATURITY MODEL CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 23

Customer Engagement Maturity Model


Our Customer Engagement Maturity Model (on the next page) illustrates The move from Stage 1 (Ad Hoc) to Stage 4 (World-Class) is characterized
seven key components. These are: by the following best practices:

Orientation: The posture the organization takes toward the discipline


Level of Commitment
of Customer Engagement and its importance to the organization for The strength of the commitment and focus on excellence in Cus-
marketing, sales, and revenue generation. tomer Engagement initiatives.

Leadership: Executive/Senior Management view toward the role


Planning
Customer Engagement plays in driving sales and revenue. Creating strategies, goals, and KPIs for each program.

Tools and Platforms: Used to create, deploy, manage, and measure


Customer Engagement initiatives and campaigns.
Processes
Developing measurable practices for each phase.
Customer Success: How well the organization performs in this core
attribute of Customer Engagement.

Alignment: How the organization is aligned for Customer Success by Resources


Ensuring sufficient resources (time, tools, etc.) exist for each
integrating Marketing, Sales, and Customer Care. initiative, campaign, and phase of their plan.

Budget/Staff: How well Customer Engagement is resourced with


time, talent, tools, money, and authority. Management
Effectively managing the change, progress, and results of Customer
Engagement efforts.
Metrics: How Customer Engagement initiatives and campaigns are
tracked, measured, managed, and reported.
Metrics
Effectively tracking, measuring, and reporting key metrics tied to
revenue and organizational performance.
CUSTOMER ENGAGEMENT
Maturity Model

STAGE 4 - World-Class
STAGE 3 - Mature
STAGE 2 - Progressive
Customer STAGE 1 - Undefined
Engagement
Defined, integrated strategy for
Customer Engagement exists across an
Defined strategy and processes exist for
Enterprise; Coordinated effort between
Strategy is uncoordinated; Aware of Customer Engagement across an Enter-
Marketing, Sales, and Customer Care
No defined strategy or process for need to create a customer journey prise; Touch points are coordinated across
to provide closed loop engagement
Orientation Customer Engagement experience; Projects are developed and functions to meet customer expectations
delivered ad hoc

Views Customer Engagement as the


Views Customer Engagement as the primary marketing focus; Organization
Views Customer Engagement as primary focus of marketing; Long-term aligned around Customer Engagement
Sees Customer Engagement as just important; Allocates budget & staff commitment to Customer Engagement; for sales and revenue impact
one part of traditional marketing, not resources to explore program and Willing participant; Resources for growth
Leadership a focus campaign options to drive revenue

Utilizes comprehensive, end-to-end


Tools and platforms for all customer system integration of all Customer
Platforms, applications, and workflows journey points, from problem identifi- Engagement related platforms with
Development; Point tools for Email, that perform specific functions have cation to advocacy development, have tight integration to Enterprise CRM, MA,
Content, and Social Media Marketing; been implemented for the buyer’s been implemented; Maintain 360-degree and other legacy ERP systems
Tools & No Online Community, Personalization, journey and personas, but little coor- customer profiles and implement behav-
Platforms or Loyalty tools/applications dination across Sales, Marketing, and ioral targeting
Customer Care exists
CUSTOMER ENGAGEMENT 25
Maturity Model
Customer
Engagement STAGE 1 - Undefined STAGE 2 - Progressive STAGE 3 - Mature STAGE 4 - World-Class

Aligns programs and campaigns to consis- Focused on creating a differentiated


Relies on traditional engagement Understands need for creating buyer customer experience and operational-
journey and personas to better target tently deliver full Customer Engagement
tactics like website landing pages izing it through all marketing, sales, and
content; Has implemented point tactics to drive loyalty; Supports robust external &
with limited content targeting; Lack customer care touch points, programs,
Customer to improve conversion and close rates, internal online communities and advocacy
of customer journey; One-way dialog and campaigns
Success improve retention, and reduce churn & loyalty programs
from seller’s perspective

Fully aligned Marketing, Sales, and


Cross-functional integration across
Some Marketing, Sales, and Customer Customer Care with cross-functional
Alignment Marketing and Sales operate in silos Marketing, Sales, and Customer Care, but
Care integration, but cross-functional responsibility for sales, revenue, and
are not fully aligned
responsibility for sales and revenue profit growth
may not exist yet

Budget with business case to justify Budget connected to customer satis-


Budget allocated; Defined point roles faction goals; Organization aligned
General marketing budget without direct spend; Dedicated marketing/sales roles
and responsibilities for Customer Expe- for maximum impact of Customer
allocation for Customer Experience or for Customer Engagement
Budget & rience or Engagement Engagement
Engagement; Staff is contracted or at
Staff the Coordinator level only

Enterprise-wide dashboard with visual


Dashboard tracks relevant customer
representation of user acquisition and
Analytics to monitor and track sales care, demand generation, communica-
engagement by behavior, experience,
Metrics No formal measurements in place success, such as % of Quota Achieved, tion and sales metrics; Metrics include
etc.; Metrics may include Customer
Renewal Rate, Revenue Opportunity # of Marketing Qualified Leads (MQLs),
Satisfaction Index (CSI), Customer Life-
Metrics, Cost per Lead (CPL), etc. Avg. Resolution Time, % Escalations to
time Value (CLV), Net Promoter Score
Tier 2 Customer Support
(NPS), etc.

Want to rate your organization’s Customer Engagement maturity


with an interactive tool? Download our Customer Engagement Maturity VIEW RESOURCE
Assessment and get started today!
CUSTOMER ENGAGEMENT VENDOR SOLUTIONS CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 26

Customer Engagement Vendor Solutions


The five vendor solutions that we present here follow the buyer’s journey outlined in the Customer Engagement Map section of this report. They are
Personalization platforms, Online Communities, Voice of the Customer (Feedback, Survey, Chat), Gamification, and Customer Advocacy and Loyalty plat-
forms. We offer a vendor matrix and/or a vendor landscape report for each of these solutions, highlighted below. Download the full Technology Overview
or Vendor Matrix at the end of each section.

Personalization Platforms
Personalization platforms provide the ability to prepare for and directly Sophisticated data-driven platforms use functions, such as machine
respond to individual interest and activity at your website, or through learning and large-scale systems science, to match relevant products
marketing or email campaigns. to consumer needs, predict product purchases, and adapt to customer
choices. These features help to provide targeted content, such as
Personalization platforms offer a range of capabilities. Key features
showing one customer one type of content while presenting a different
include targeting visitors based on origin and behavior to provide
view or version to someone else.
personalized content, messages, and offers; preventing or recovering
from shopping cart abandonment, and follow-up email campaigns. Our vendor analysis divides this market segment into two sub-seg-
ments: Personalization platforms, which provide multi-channel and
integrate Social Networks, and Website Personalization apps that
specifically focus on the website visitor experience.

Download Demand Metric’s Personalization Vendor Matrix


VIEW RESOURCE
for an overview of the key vendors in this space.
CUSTOMER ENGAGEMENT VENDOR SOLUTIONS CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 27

Online Communities
We examined company-owned Online Communities rather than the
large Social Networks, such as Facebook, Twitter, and LinkedIn. For a
review of those networks and the platforms that support them, please
download our Social Media Marketing Solution Study.

Company-owned Online Communities are websites that act as engage-


ment engines. They enable companies to create social relationships
with customers and prospects and to foster peer-to- peer relationships
that drive engagement with the company, brand, product, and/or service.

Activities used include blogs, forums, Q&A, groups, contests, Gamifica-


tion, SEO, and Social Media integrations. Increasingly, companies are
using these communities for crowdsourcing and ideation to drive inno-
vation and new product development. Online Communities are also
useful for identifying potential advocates who can be further engaged
using the Advocacy and Loyalty platforms reviewed below.

Demand Metric’s Online Communities Technology


Overview provides a detailed look at the vendors and
ONLINE VIEW RESOURCE
COMMUNITIES
solutions for space.

TECHNOLOGY OVERVIEW
CUSTOMER ENGAGEMENT VENDOR SOLUTIONS CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 28

Voice of the Customer Platforms


Our Voice of the Customer (VoC) platform analysis includes three related and overlapping market segments: Voice of the Customer, Feedback & Surveys,
and Chat. Each of these platform segments has a role to play in successful VOC as shown in our Customer Engagement Framework and Maturity Model.

Many VoC solutions combine VoC with Voice of the Employee (VoE) and modern market research tools based on agile research techniques and real-time
feedback to provide a 360-degree view of their company, product, and brand.

Chat Platforms VoC Platforms


In brief, Chat platforms and services offer a real-time live Comprehensive VoC platforms incorporate chat and feed-
interaction with a customer or prospect to answer ques- back data, Enterprise system profiles, Social Network inte-
tions, provide guidance, or resolve a problem. gration, and multi-channel customer activity with data mining
analytics to determine customer interest, behavior, activity,
Feedback and Survey platforms, typically used following a
and sentiment.
customer interaction, are used to gauge customer satisfac-
tion and interest with the company, brand, product, service; Sophisticated VoC platforms can predict future behaviors to
to identify upsell and cross-sell opportunities; and to capture drive revenue through customer loyalty, customer lifetime
suggestions for future offerings or product improvements. value, or retention metrics. VoC platforms enable companies
to both respond to and anticipate customer needs through
response, insight, and predictive analytics.

Download Demand Metric’s Voice of the Customer


Vendor Matrix for an overview of the key vendors in this VIEW RESOURCE
market space.
CUSTOMER ENGAGEMENT VENDOR SOLUTIONS CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 29

Gamification Platforms
Gamification incorporates game-design mechanics into non-game appli-
cations and environments to make them more engaging while adding a
dimension of fun and competition.

Gamification is a means to an end, and in broad terms, that end goal is


behavior change. More specifically, companies gamify applications,
websites, or communities to better engage customers, employees, or both.

Our look at Gamification focuses on the primary applications for Gami-


fication, which fall into the categories of Customer Loyalty and Advo-
cacy, Customer Engagement, and Employee Engagement.

Download Demand Metric’s Gamification Technology


GAMIFICATION VIEW RESOURCE
Overview for insights and vendor analysis.

TECHNOLOGY OVERVIEW
CUSTOMER ENGAGEMENT VENDOR SOLUTIONS CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 30

Advocacy and Loyalty Platforms

Advocacy Platforms Loyalty Platforms:


These platforms facilitate the creation of customer or These platforms allow the creation of Online and Social
employee advocacy portals, often creating a gamified Communities and infrastructure to enable registration
community with tools and mechanisms for identifying in programs, track purchases (and often referrals), and
brand advocates that nurtures and rewards their advocacy provide tools for earning rewards based on transactions.
through challenges, rewards, and other forms of credit.
Like Advocacy platforms, there is typically integration with
Advocacy platforms almost always have integration Social Media, sources of customer data, POS systems, and
capabilities with key touch points, such as websites, online stores for reward fulfillment. For B2C, the ability to
Online Communities, etc. push coupons, special promotions, and ads to members
often exists as well.

Both Advocacy and Loyalty solutions fall within the broader realm of Customer Engagement. They are compatible yet different. The vendors tend to lean
clearly toward either Advocacy or Loyalty. Even when a vendor offers solutions for both, one or the other is typically presented as a core capability or
strength. The common thread between these solution types is referrals.

Download Demand Metric’s Advocacy and Loyalty


Technology Overview for insights and vendor analysis of
ADVOCACY AND
LOYALTY VIEW RESOURCE
this market segment.

TECHNOLOGY OVERVIEW
ANALYST BOTTOM LINE CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 31

Analyst Bottom Line


Customer Engagement is not a marketing and sales mandate. As Demand Metric’s case studies and benchmark studies and
To be effective, Customer Engagement must be at the center of this best practices report illustrate, Customer Engagement
every World-Class Marketing Organization. initiatives pay off in higher sales, revenues, and profits, and pay
dividends in customer lifetime loyalty.
As our Customer Engagement Framework and Maturity Model
indicate, that requires strategic orientation for Customer Engage-
ment; Senior Management and cultural commitment; a strong,
well-resourced Customer Success division, and Marketing, Sales,
and Customer Care teams that put Customer Engagement first
and foremost.

Equally, it requires the processes, technologies, and platform solu-


tions that equip all departments, as well as a Customer Engage-
ment Map that provides a complete blueprint of the buyers’
journey as a guide to implementation.
THE EVOLUTION OF SHOPPER MARKETING CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 32
CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE

CUSTOMER ENGAGEMENT
ACTION PLAN

Follow this simple, step-by-step, methodology to develop a Customer Engagement plan that increases
sales, builds customer insights, and grows brand awareness.
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 33

1 Follow

2 Review Improve How Customers Engage


With Your Company
3 Build
Follow our Customer Engagement Playbook to improve how
customers engage with your company and enable your organi-
4 Organize
zation with a customer-centric approach to drive revenue.

5 Develop

6 Identify VIEW RESOURCE

7 Select

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 34

1 Follow

Assess the Maturity of Your Existing


2 Review
Customer Engagement Program
3 Build
Review our Customer Engagement Maturity Model and
complete our Customer Engagement Maturity Assessment to
4 Organize
identify how your organization stacks up in this focus area.

5 Develop CUSTOMER ENGAGEMENT


Maturity Model

STAGE 4 - World-Class
STAGE 3 - Mature
STAGE 2 - Progressive
Customer STAGE 1 - Undefined
Engagement
Defined, integrated strategy for
Customer Engagement exists across an
Defined strategy and processes exist for

VIEW RESOURCE
Enterprise; Coordinated effort between
Strategy is uncoordinated; Aware of Customer Engagement across an Enter-
Marketing, Sales and Customer Care to
No defined strategy or process for need to create a customer journey prise; Touch points are coordinated across
provide closed loop engagement
functions to meet customer expectations

6
Orientation Customer Engagement experience; Projects are developed and

Identify
delivered ad hoc

Views Customer Engagement as the


Views Customer Engagement as the primary marketing focus; Organization
Views Customer Engagement as primary focus of marketing; Long-term aligned around Customer Engagement
Sees Customer Engagement as just important; Allocates budget & staff commitment to Customer Engagement; for sales and revenue impact
one part of traditional marketing, not resources to explore program and Willing participant; Resources for growth
Leadership a focus campaign options to drive revenue

7
Utilizes comprehensive, end-to-end

Select
Tools and platforms for all customer system integration of all Customer
Platforms, applications and workflows journey points, from problem identifi- Engagement related platforms with
Development; Point tools for Email, that perform specific functions have cation to advocacy development, have tight integration to Enterprise CRM, MA
Content and Social Media Marketing; been implemented for the buyer’s been implemented; Maintain 360-degree and other legacy ERP systems
Tools & No Online Community, Personalization journey and personas, but little coor- customer profiles and implement behav-
Platforms or Loyalty tools/applications dination across Sales, Marketing and ioral targeting
Customer Care exists

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 35

1 Follow

2 Review Build a Business Case for Your Customer


Engagement Initiatives

3 Build
Build a business case for your Customer Engagement initia-
tives with our Customer Engagement Business Case.
4 Organize

5 Develop
VIEW RESOURCE

6 Identify

7 Select

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 36

1 Follow

2 Review Standardize Roles and Duties for Customer


Engagement
3 Build
Organize your company’s structure for Customer Engagement.

4 Organize Use our Customer Engagement Framework to standardize


roles and duties for Customer Engagement.

5 Develop

6 Identify VIEW RESOURCE

7 Select

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 37

1 Follow

2 Review Develop a Solid Plan for Your Customer


Engagement Programs
3 Build
Develop a solid 12-18 month plan for your Customer Engage-
ment programs with our Customer Engagement Strategy
4 Organize
Workbook. Track your progress with this workbook.

5
Develop your Customer Journey Map and Customer Engage-
5 Develop ment Map in order to understand how your buyers engage
with you and what platforms may be integral to having
customers engage with you more.
6 Identify

7 Select
VIEW RESOURCE

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 38

1 Follow

2 Review Identify Key Customer Engagement


Technology Solutions
3 Build
Identify the key players in each Customer Engagement technology
space. We have already begun this process for you by researching
4 Organize
a multitude of quality vendors.

You can review these vendors with:


5 Develop
Advocacy and Loyalty Vendor Matrix
Gamification Vendor Matrix
6 Identify Online Communities Vendor Matrix
Personalization Vendor Matrix

7 Select Voice of the Customer Vendor Matrix

8 Evaluate
VIEW RESOURCE

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 39

1 Follow

2 Review Select a Customer Engagement Vendor

3 Build Begin the process of selecting a vendor to assist you in your


Customer Engagement initiatives.

Use our series of RFP templates created specifically for


4 Organize
Customer Engagement, which are:
Advocacy and Loyalty System RFP
5 Develop Gamification System RFP Template
Online Community System RFP Template

6 Identify Personalization System RFP Template


Voice of the Customer System RFP

7 Select

8 Evaluate VIEW RESOURCE

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 40

1 Follow

2 Review Evaluate Your Customer Engagement Vendors

3 Build Utilize our series of vendor evaluations for Customer Engagement


in order to select the vendor that best fits your needs.

Our vendor evaluations for this focus area are as follows:


4 Organize
Advocacy and Loyalty Vendor Evaluation
Gamification Vendor Evaluation
5 Develop
Online Community Vendor Evaluation
Personalization Vendor Evaluation
6 Identify Voice of the Customer Vendor Evaluation

7 Select

VIEW RESOURCE

88 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 41

1 Follow

2 Review Train Your Team for Customer Engagement

3 Build Develop an education/training plan for all affected personnel:


Senior/Executive Management, Marketing, Sales, Customer
Success, etc.
4 Organize

5 Develop
S TA R T L E A R N I N G

6 Identify

7 Select

8 Evaluate

9 Train

10  Measure
ACTION PLAN CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 42

1 Follow

2 Review Measure Your Customer Engagement Efforts


Over Time
3 Build
Measure the success of your Customer Engagement initia-
tives and programs with our Customer Engagement Metrics
4 Organize
Dashboard.

5 Develop

VIEW RESOURCE
6 Identify

7 Select

8 Evaluate

9 Train

10  Measure
About ANA

The ANA (Association of National Advertisers) makes a difference for indi-


viduals, brands, and the industry by driving growth, advancing the interests
of marketers and promoting and protecting the well-being of the marketing
community.

Founded in 1910, the ANA provides leadership that advances marketing excel-
lence and shapes the future of the industry. The ANA’s membership includes
more than 1,000 companies with 15,000 brands that collectively spend or
support more than $400 billion in marketing and advertising annually. The
membership is comprised of more than 750 client-side marketers and 300
associate members, which include leading agencies, law firms, suppliers,
consultants, and vendors.

Further enriching the ecosystem is the work of the nonprofit ANA Educa-
tional Foundation (AEF), which has the mission of enhancing the under-
standing of advertising and marketing within the academic and marketing
communities.
About Demand Metric

Demand Metric helps Marketing teams get stuff done with practical tools,
training, and a simple, modern platform for managing work.

Our analysts identify best practices from fast-growing companies and


build Playbooks & Toolkits, Guides & Reports, Training Courses, and Project
Templates to help you optimize your processes, add structure to your depart-
ment, and get your team punching above their weight class.

Manage your work visually with our easy-to-use platform, built for small
marketing teams by design. See what your team is working on at a glance
so you can spend less time managing projects and more time knocking
stuff off your list.

Through strategic partnerships with the AMA, ANA, and AIPMM, our 1,000+
time-saving tools & resources have become the industry standard. Don’t
start from scratch! LEARN MORE
Sign up for a free trial at www.demandmetric.com
THE EVOLUTION OF SHOPPER MARKETING CUSTOMER ENGAGEMENT BEST PRACTICES GUIDE 45

© Demand Metric Research Corporation.


All Rights Reserved.

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