Académique Documents
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Executive Primer
Introducing
the Customer
Engagement Cycle
Operational capabilities of integrated marketing technologies
Engagement Cycle technologies addressed
• Multichannel analytics
• Messaging and personalization platform
• Voice-of-customer content analytics
• Content planning and optimization
• Multimodal content management
• Process orchestration platforms and partners
• Customer engagement objects
• Information maturity model for customer engagement
• Process maturities for four engagement cycle technologies
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Who helped produce this white paper? Who is GISTICS? Introducing
the Customer
Engagement Cycle
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V a l u e - C r e a t i o n P r o c e s s
GISTICS Incorporated
T2 Market-making scenario 2 Cycle time gain
4171 Piedmont Avenue, Suite 210
Oakland CA 94611 USA Necessary Conditions Strategic Value
www.gistics.com
+1.510.450.9999 tel • Rationalized market and definitive • Leadership positioning in the market
+1.510.450.0954 fax business case • Advantaged category definitions
• Differentiated value propositions • Growing perception as the dominant
©2009 GISTICS Incorporated. All rights • Completed satisfaction-fulfillment “gorilla”
reserved. Printed in the U.S.A. methodologies • New “green field” markets and
GISTICS and its agents have used their • Testimonials of early adopters revenue streams
best efforts in collecting and preparing • Network of certified consulting • Loyalty lock-ins of category-defining
information published in this white paper solutioneers marquee accounts
Introducing the Customer Engagement • Thought-leadership Web destination
Cycle.
GISTICS does not assume, and hereby dis- MarketMakingScenarios.A.1.4 © 2007 GISTICS All rights reserved.
claims, any liability for any loss or dam-
age caused by errors and omissions in GISTICS reduces the organizational and market barriers to the adoption of new technologies or disruptive innovations,
this white paper, whether such errors or publishing a variety of papers, presentations, and Web sites that explain how to realize the economic and social value of new
such omissions resulted from negligence,
accident, or other causes. technologies or disruptive innovations in a variety of organizations.
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PAGE
CONTENTS//SECTIONS
4 Who helped produce this white paper?
5 What must guide all investments in new marketing technologies?
6 How do we define customer engagement?
7 How does a marketing operation engage customers?
8 What technologies support customer engagement?
9 What constitutes the customer engagement cycle, emphasizing seven phases by
which firms define and create engaging content?
10 What technologies provide the foundation for mastering the engagement cycle?
11 What comprises an information maturity model of customer engagement?
12 How do particular buyer reactions to content produce behavioral data, emphasizing a
progression of data collection activities?
13 What comprise the process-maturity phases of multichannel marketing analytics, an
example of one engagement-cycle process maturity?
14 How can an engagement maturity model clarify a firm’s next steps?
15 How will digital systems and self-directed customers drive organizational
transformation of marketing operations?
16 What constitutes a customer portfolio management firm, a new center of excellence
in the marketing supply chain that will replace traditional marketing agencies?
17 About GISTICS
ABSTRACT
This executive primer introduces the foundation concepts of customer engagement and related
technologies. We acknowledge the many innovation leaders and masterclass practitioners who
contributed to this primer and the larger executive white paper. In particular, we thank the
executives of Alterian for their support and sponsorship.
Introducing
Who helped produce this white paper? the Customer
Engagement Cycle
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GISTICS acknowledges the following individuals and their organizations for help making this paper possible.
Customer Benefit The Web no longer comprises just another sales channel;
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Social
Networks
Business
Ecosystem
All new investments in marketing should benefit the consumer. Time to satisfaction with certainty and trust define the baseline of customer benefit. Little else matters
in the eyes of the consumer.
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SUC C E SSFUL C UST O M ER EN G AGEMENT S ACT IVAT E ADV OCAT E ST ORYT ELLING
ENGAGEMENT SEQUENCE
Connect Inform Entertain Share
Brands tell stories; customer
• Immediate • Category of • Social context • Portable
engagement kick-starts need or desire
word-of-mouth marketing • Visceral • Humorous, horrific, • Currency of
• “Like”/”don’t like” • Positioning or seductive affection
and personal referrals
• Belonging • Differentiated • Cultural narrative • Facet of self
within social networks,
communities, and peerages • Relief • Cool • Reputation
EngagementDefined.A.1.0 ©2009 GISTICS, All rights reserved.
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All or most professional marketing executes a strategy for Brand Conversions of the model depicted below connote
how best to find and serve customers. traditional phases of the marketing process, reinterpreting
The ability to successfully execute strategy entails an two of the phases: facilitated buying and WOM agents.
operational capability of marketing: systems, processes, and Facilitated buying connotes the increasing role of social
accountabilities. networks, Web services, and self-directed buyers.
The figure below depicts a subset of a marketing WOM agents connote the potentially explosive potential
operation, highlighting the operational capabilities of of formal word-of-mouth (WOM) marketing programs and
customer engagement. the use of social agencies to find and deputize WOM agents.
The figure below also depicts a set of actors or resources
WEB-CENTRIC VIEW that can speed the brand-conversion process—systems and
Customer engagement spans “offline” marketing media and technologies of the engagement cycle and the principal focus
channels as well as online and mobile counterparts. of this paper.
However, customer engagement puts the Web and online,
interactive customer at the center of the entire enterprise. INTEGRATED MARKETING 2.0
Identification of Web User denotes the five operational The nearly exhausted but still useful moniker, 2.0, conveys
states of a customer database and, therefore, the operational an important facet of integrated marketing: The customer
capability to engage a buyer or customers in optimal ways. gets a say in what gets marketed to whom and how.
We will develop these largely self-evident definitions The bottom row in the figure below depicts a logical
elsewhere in this paper and companion website. next-step in customer-integrated marketing, suggesting that
The new term Customerized connotes a key operational traditional print and broadcast advertising and promotion
principle of customer engagement cycle, correlating now stand alongside new digital formats and services.
customer-provided preferences, product-mix optimizations,
and dynamic publishing of content services.
The term Certified connotes the formal registration of
the customers in an advocacy or beta-test pilots association.
C US T O M E R E N G A G E M E N T R E Q U I R E S R E S O UR C E S A N D C A P A B I L I T I E S FR O M MUL T I P L E P A R T I E S
STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration
Operational
Capability
The figure above depicts six operational capabilities of customer engagement; marketing operations will secure from engagement partners—agencies, service
each capability entails a set of systems, processes, and accountabilities that most providers, and specialist firms.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
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GREATER
Affiliates and
Certified Consultants
VA L U E - A D D E D B Y C U S T O M E R L I F E C Y C L E S TA G E
Customer Insights
Voice of Customer
PRE-S
Contribution
Customer Master
E S
AL
ALES
S
T-
Operational CRM
O S
Broadcast and
Display Ads Sales CRM P
Social Marketing
Search Engine
Marketing
Social Media Monitoring
Content Optimization
E-Messaging
Opt-in Offers
Marketing Databases
LESSER
ENGAGEMENT CYCLE TECHNOLOGIES EngagementModelMOMTech.B.1.8 ©2009 GISTICS Incorporated, All rights reserved.
The Web and a global digital ecosystem enable large and small organizations to responsibilities, and daily progress-status reporting of all staff and affiliates involved in
integrate pre- and post-sales activities, using unified governance with clear roles, the customer-making process.
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Customers navigate the concentric rings of trust in their It then follows that the transit from awareness,
individual brandspaces (unique to each customer), arriving consideration, and trial to purchase, adoption, commitment,
at the brand engagement theaters of their trusted brands. and advocacy—stages of the brand lifecycle—comprise
What then ensues comprises the seven phases of the hundreds of discrete engagement cycles.
engagement cycle. The structured model below supports these key insights:
Brand engagement theaters constitute the first phase, • Faster engagement cycle times induce greater levels of
presenting content, navigation, presentation, and context. engagement.
User reactions may entail reading or viewing, clicking • Few defects in delivered content, navigation, and
through the next page or section, or exiting. Key point: Most presentation increase the probability of success.
visits exit for reasons unknown, a strategic breach that • Most defects occur unnoticed, leading engagement
engagement managers must address with session-monitoring managers to make the same mistakes again and again.
systems. • Automation and policy management of content
Behavioral data from most Web analytic systems provides workflows can reduce the number of defects.
useful but minimal insights into both anonymous unnamed
• Voice-of-customer systems provide critical insights as to
and named users. The next frontier of behavioral data will
what’s broken, missing, or needed.
include interaction data from inside immersive rich-media
streams and video, documenting where users went and what • Analytic insights and voice of customers must inform
content creation; this requires formal systems for
they did.
documenting content-user requirements.
Analytic insights include other sources of data: customer
databases, social media monitoring, voice of the customer, • Effective engagement requires governance: someone
and newer Web analytic tools. within the firm must step forward and take ownership of
the engagement cycle.
Content-user requirements specify what types of
“information food groups” particular high-value customer
segments prefer; providing these will require a formal
information consumption model and procedures for
directing content creators to produce required information,
matching user-consumption profiles to classes and types of
information and media formats.
Content optimization starts with semantic tagging of
Web pages and documents, creating topic
maps (similar to tag clouds, only specific s eve n s tage c y c l e c r eate s c u s to m e r i z ed co n te n t
to an individual page) and metadata sets
that later will power faceted search and
dynamic navigation.
1 2
BRANDSPACE
Contextualized content uses behavioral
Visitor
Creative Reaction
targeting, semantically tagged content
that enables dynamic composition of topic
• Unnamed Content
maps or page-specific tag clouds, faceted
• Named
in Context
Circles of Trust
navigation (dynamically constructed
keywords within a multitiered hierarchy
or taxonomy), and user account histories,
7 3
journals, and personal collections within Customerized Behavioral
the site. Content Data
Engagement
Cycle
6 Phases
4
Content Multichannel
Optimization or Analytic
Individualization EngagementCycleBasic.A.1.1 Insights
©2009 GISTICS Incorporated, All rights reserved.
5
Content
Governance and accountability of the engagement CONTENT Planning VOICE-OF-CUSTOMER
cycle define career opportunties leading to executive CREATION CONTENT ANALYSIS
management of marketing.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
1 2
BRANDSPACE
creative services and Creative Reaction
on-demand software-as-a- Visitor
• Unnamed Content
service applications from • Named
in Context
trusted partners: ad agencies, Circles of Trust
marketing service providers,
promotional engagement
systems, etc.
Message Execution VISIONING A
Platforms incorporate all the PRO XECUTION ND
7 3
functions of high-capacity Customerized E Behavioral
newsletter and messaging Content Data
platforms, as well as dynamic
MU NALYT EL
LTIMODAL
AGEMENT
or on-the-fly personalization
A
MUONTENT
LTICHANN
of newsletters, rich-
media emails, immersive CUSTOMER
ENGAGEMENT
6 4
multimedia buying Content OBJECTS Multichannel
environments, dynamic
ICS
Optimization or Analytic
AN
C
5
the engagement cycle, demanding
CONTENT Content
that engagement directors and
CREATION Planning VOICE-OF-CUSTOMER
planners use a proven technology
CONTENT ANALYSIS
integration framework, standards,
EngagementCycleTechnologies.A.1.5
and governance. ©2009 GISTICS Incorporated, All rights reserved.
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The operational capabilities of marketing, sales, and services Adaptive engagement entails the integration of systems,
will continue to undergo a rapid transformation. processes, and accountabilities of the engagement cycle,
The figure below depicts six basic operational enabling a marketing operation to align most of its activities
capabilities of integrated customer engagement. Each to engagement lifecycle goals.
operational capability represents a new configuration of This includes the ability to implement continuous,
systems, processes, and accountabilities of marketing ongoing improvements within the engagement cycle,
operations. The figure below also depicts five levels of using hard data to make fact-based decisions. Adaptive
operational and information maturity. engagement represents a vastly improved IT service
Operational maturities adopt the basic levels of a management infrastructure, emphasizing the need for an IT
management process-control framework (Lean Six Sigma, service integration model and roadmap—a CIO blueprint
CMMI) to the use of information as a strategic resource. depicting the logical collection of Web services of a service-
Information mavericks represent the creative and oriented architecture (SOA).
innovative individuals wielding personal power with a CIO Blueprints clarify how to source and provision
database or application, satisfying his or her needs with needed SOA-based Web services from corporate or
little accountability to the broader social network of the departmental IT operations and strategy partners (market
enterprise information users. service providers, agencies, and customer portfolio
Information silos represent the needs of a functional managers).
group (accounting, customer service) using information as a Policy-managed engagement represents an aspirational
operational tool, adopting information standards and tools futureproof of self-managing systems that rely on IT service
specific to the functional group and thus limiting access to policies to activate and manage the delivery of IT-based
their data by other enterprise users. engagement services.
Analysis-driven communications starts with an
enterprise focus, enabling an informed view of core
operations. This entails adoption of enterprise information
standards, information architectures, and data integration.
f i r m s m a n i f e s t di f f e r e n t i n f o r m atio n m at u r itie s b y ope r atio n a l capa b i l it y
�
• Aggregate marketspace activities
F U L L P R O C E S S I N T E G R AT I O N R E Q U I R E D
�
LISTEN (LST)
• Recalibrate listing tools
• Classify themes, sentiment, etc.
• Build dialog maps and frameworks
�
MESSAGE (MSG)
• Ideate themes, concepts, copy, etc.
• Create engagement assets
• Validate in private social networks
�
Media services CONTEXTUALIZE (CTX)
• Retrieve data and components
play a large role in • Assemble engagement objects
effective customer • Package for consumption
�
engagement,
EXECUTE (EXE)
enabling engagement • Stage for quality assurance
managers to create • Provision engagement objects
• Manage exceptions
unique and compelling
experiences for GOVERN (GVN)
�
• Measure efficiency and effectiveness
customers and • Monitor policies and deviations
partners. • Summarize activities and results
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NOTE: Visit www.alterian.com/engagement-orchestration and download the full white paper that explains the full
customer engagement cycle
R E A C T I O NS T O C O N T E N T C A N P R O D U C E D A T A I N D I C A T I N G T H E S T A T US O F A BUY E R I N T H E C US T O M E R
ENGAGEMENT LIFECYCLE
Reaction:
SHOPPING MODALITIES
• Notice or pass
• Understand or not
• Consider or dismiss
1 2
BRANDSPACE
Visitor
Creative Reaction • Futurepace a trial
Content
• Futureproof a relief
• Unnamed
• Named
in Context
Circles of Trust
• Viscerally commit
7 3
Customerized Behavioral
Reaction • Rationalize
Behavioral Data:
Content Data
CUSTOMER IDENTITIES
Engagement • Purchase
Cycle • Unknown stakeholders
6 Phases
4
Content Multichannel
— Web traffic
MULTI-CHANNEL
Optimization or Behavioral
Analytic
Data
Individualization Insights
— Floor traffic
• Known stakeholders
5 — Call center
Content
CONTENT Planning VOICE-OF-CUSTOMER
CREATION CONTENT ANALYSIS
— Named site users
• Profiled stakeholders
Each new advance in customer engagement enables marketers to collect more behavioral data from buyers at an expanding number of touchpoints in a marketspace.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
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EVOLUTION OF CUSTOMER ANALYTICS Predictive modeling tracks the drive towards faster, more
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
P R O C E SS - m a T UR I T I E S O F MUL T I C H A NN E L A N A LY T I C S S P A N F I V E P H A S E S
PROCESS-MATURITY
PHASES 1 2 3 4 5
Static Data in Isolated “Silo-ed” Systems Dynamic, Integrated Data
Ad Hoc Managed Predictive Adaptive Anticipated
Data Collection Basic contact Enhanced Contact histories Email and direct Journaling of
information from customer data for key operational mail responses with behavioral and
mail lists file, using and tactical CRM transaction histories transaction data to
compiled or systems and subscriber customer master;
syndicated data preferences for dynamic links to all
sources information classes relevant enterprise
and fulfillment data sources and
MUL T I C H A NN E L A N A LY T I C S
Data Management Packaged RDBMS Periodic postal Persistent Real-time updates 360-degree view
and maintenance hygiene: identification and of customer across all product
OPE R AT IONAL CAPABILITIES OF
Reporting Standard audit Campaign and Time-series Automated reports Real time dashboard
and output syndicated data program reports
reports reporting
Measurement Basic counts Comprehensive Operational KPIs Marketing KPIs Return on investment
campaign and business model
FULL
statistics performance
TThe operational capabilities of multichannel analytics evolve in a slow, uneven GISTICS predicts the emergence of external customer portfolio management firms
manner, often requiring significant new capital outlays for new systems, development with digital services and a cadre of engagement specialists, charging their clients
of new processes, and the recruitment of specialized and scarce professionals. small management fees and earning a bulk of their profits from engagement results:
incremental sales, greater retention rates, and greater shares of wallets.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Static Web pages and Frequently updated Strong regulatory Recommendations and Optimized site experience
visuals pages compliance, global site optimized site views for for known visitors and
Process outputs support and enterprise segments relevant delivery for
knowledge sharing anonymous visitors
VOICE OF CUSTOMER: INTERVIEW QUESTIONS AND SCRIPTS, TELECONFERENCING, TRANSCRIPTION, TEXT MINING, SEMANTIC TAGGING, DASHBOARD SUMMARIZATION
Emails and voice mail Teleservice help desk Uniform issue-problem Automated classification of State-of-industry-sector
complaints database with cases; forms and reporting interview transcripts with inputs from XBRL-based
pop-up polls and linked to CRM and summarization using faceted sources, prediction-
Input sources online surveys; focus newsletter databases; taxonomies, external text market item prices, and
group transcripts structured customer- mining, social networks, realtime user-content
journey interview and correlation to customer consumption data feeds
transcripts journey narratives
Letters and emails of Customer care- Individualized Customer engagement
apology center responses and newsletters with life cycle benchmarks and
Process outputs summaries personalized link-backs dynamic bidding for ad
to customer scorecard words
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
lti
ch
analytics groups. ca
Or
lC
ne
l A
er
tr
lyt
ge
e nCURRENT
relationships with customers and
s
partners. m
Marketing headquarters will t
build and provision tools and
services for localized customer
engagement, integrating
local market knowledge and
engagement simulations with
email messaging, social media, DigitalTrendsMarketingOps.1.4 © 2009 GISTICS All rights reserved.
and web content production and
delivery teams. 0% LESS LABOR MORE
Self-directed online customers and their growing demands of personalized services, “remixable” content, and ways of
sharing customerized experiences with their friends will drive the digital transformation of the marketing operation.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................
D E V E L O P M E N T A N D P R O V I S I O N I N G O F C US T O M E R E N G A G E M E N T P R O C E SS E S R E Q U I R E A N I N T E G R A T E D
S E R V I C E P L A T F O RM
Consumer Engagement
Insight and Lifecycle Predictive/ Basis of Editorial Custom Advocacy/
Causal Conversation Planning Development Word of Mouth Mobile
Market Stage
Research Optimization Modeling
Customer Service_Capabilities_Engagement_Firm.1.3
Engagement Business Case Content Versioning/ ©2009 GISTICS Incorporated, All rights reserved.
SOURCE: Digital Cement www.digitalcement.com
Program Development Planning Search
Strategy
Program Approvals
Design and Proofs
Te c h n o l o g y E n a b l e m e n t , P r o g r a m M a n a g e m e n t , P e r f o r m a n c e
Engagement service providers employ large, diverse teams of specialists that exploit the service capabilities of an integrated digital services platform.
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PAGE
18
19
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Introducing the
Customer Engagement
Cycle
SECTION I
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Thought Leadership...Executed Worldwide 4171 Piedmont Avenue, Suite #210 Tel +1.510.450.9999 info@gistics.com
www.gistics.com
...................
MARKET INFRASTRUCTURE
Academic Papers/ Newsletters/ Consultants/ Trade Pubs/ Financial
Blogs Conferences Integrators Business Press Analysts
ms 100% Demonstrated
Feasibility
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Business Value
Established
Solutions Commodities
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ECONOMIC ACTORS
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Thought Leadership...Executed Worldwide 4171 Piedmont Avenue, Suite #210 Tel +1.510.450.9999 info@gistics.com
www.gistics.com
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