Posted by Peder Enhorning

October 9, 2009

2:09 pm

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Customer Engagement Model

There are many factors and activities which determine the success of online properties. Understanding how these actions affect the overall message and how they interrelate is of significant importance.

Mass media marketing such as television or radio spots may reach a wider audience but may have little or no interest to many. How many of you fast-forward through commercials whenever possible? Conversely, other activities such as social media may reach fewer people but the direct dialog with customers can mean a stronger bond and impactful message. Cross-channel analytics allows us to investigate what the interactions between these different activities and the influence one activity has on another.

To better understand the effect marketing and online activities have on the success of an organization and their web site, Unilytics has created the CEM (Customer Engagement Model). It illustrates the relative worth of different marketing activities with respect to Customer Reach and Customer Value. “Customer Reach” refers to the relative number of people our message will get through to. “Customer Value” assigns a rough measure of how personal the message is to each individual recipient when it reaches them.

Customer Engagement Model

CEM is divided into three activity sectors. In the first sector we unilaterally ACT with no real feedback from our customers. This one sided communication includes mass marketing activities such as television, newspaper advertizing and radio spots. These may reach a very large audience, but will likely not resonate with the majority of those who hear or see the message. Email marketing can also reach many and we see it as being more impactful to individuals as we can tailor the message based on previous results. That is also why it overlaps with the next sector.

In the second sector, we have the ability to REACT to our customers and make changes to our communication and marketing message. We’re beginning to have a two-way conversation, but we can only ‘hear’ from large groups of people. There are several marketing initiatives which fall into this sector including web analytics, 1:1 marketing, A/B testing, voice of customer and search marketing including SEO and display advertising. They all allow us to react to customer feedback and change our messaging to better serve customers. Because we are able to gather feedback and improve our offer, these activities tend to be more impactful and result in improved customer value, while these activities tend to reach fewer people. Again, some overlap into the third sector.

In the third sector, we INTERACT with our customers and we market products and services in direct response to customers concerns and needs. We now have a one-to-one conversation with our customers and their involvement is greatest in this sector as is the value of the communication. We fully interact with customers by using such social media tools as Twitter, forums, and various others; we react to their concerns and correspond directly with them. However, unless the dialog becomes viral, the number of people we interact with tend to be very few. By using CRM solutions, we can establish an ongoing dialog with customers and create an ongoing relationship, placing this activity also in this sector.

Some may challenge the placement of the various activities. Furthermore, this is not meant to be a comprehensive list of activities. The point is that each activity has its value and they affect company-wide marketing success differently. Each contributes to the overall success of the message. No single event or activity is positioned in the top right corner of the model where we ultimately strive to be. Our goal is to reach everyone with a comprehensive, interactive dialog so we can serve them fully to their specific needs and desires. Such a tool does not currently exist. But with a combination of marketing activities we can get there as a whole. Reaching that goal requires an integrated effort so we understand how one activity affects another. Cross-channel analytics is crucial in this endeavor.

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