How engaged are your customers?

How engaged are your customers, how do you know

and why should you care?

Tony Kent Sign-Up.to

1. How engaged are your customers, how do you know


Engagement en·gage·ment [en-geyj-muhnt] Noun Ah yes , and ..

What is engagement?

Specifically .. customer engagement

Engagement en·gage·ment [en-geyj-muhnt] Noun a pledge, an obligation or agreement the act or state of interlocking

• Bringing customers close to your brand • Developing a high quality customer relationship • Creating a state of mutually valuable interaction ..

your

Specifically .. e-marketing engagement

Typical email engagement characteristics

• Highly engaged - Regular open, click through and transact - Brand champions to peers and colleagues

• Passive - Opens, irregular visit, average/low completion

• Disengaged - Habitual non-read/delete, no recent purchase

• Lost (unsubscribed) - No interest, potential brand detractor ..

Permission

Permission is the foundation of all engagement

The way to make advertising work again

“the privilege (not the right) to

delivering anticipated, personal and relevant messages to people

who actually want to receive them” ..

Turning strangers into friends and friends into customers

How engaged are your customers, 2. how do you know?


Engagement profiling

Profiling for “precision marketing” – collecting insight • Engagement is 1 of 5 profiling “dimensions”

1. Engagement 2. Geo-location 3. Profiles 4. Lists 5. Frequency


Dimensions and Audiences • Dimensions are

used to create segmented data “audiences”

• Audiences are a dynamic data segmentation

• Audiences can comprise 1 or more profile dimensions

• Include/exclude type operations


Engagement scoring algorithm • In-house developed engagement algorithm • Implemented across all Sign-Up.to customer

accounts and campaigns • Automatically measures quality of customer

e-relationship over time • Based on multiple parameters including .. • Frequency of interaction • Quantity of interaction • Type/quality/depth of interaction


What you need to know .. • 5* Highly engaged • 3* Average • 1* Disengaged • Initial subscription = 3* • Score increases with +ve

subsequent behaviour • Score decreases with –ve

behaviour and time ..


Engagement algorithm – some background • Starring bands are based on both theoretical

and empirical data • Bands 1*-5* are non-linear between min & max

(for accurate reflection across range of scenarios) • New data is initially assigned a null rating • Campaign interactions (open, click, forward,

complete) are given weighted engagement increments

• Opt-in completion is a key engagement indicator ..


Engagement algorithm – some more background • Multiple single campaign interactions gain

additional engagement increments • Passive engagement is long-term negative • Non-engagers progressively decay in their star

rating over time • Habitual non-engagers decay proportionately

more rapidly ..

Advantages • Quantitative measure of an abstract concept • Multi-input algorithm provides a holistic view • Automated process – KPI’s are updated

automatically as campaigns are executed • Rating is dynamic – results are continuous • Legacy data can be included from replayed historic

campaigns • Engagement score is available for use in

segmenting data and targeting future campaigns ..


0

500000

1000000

1500000

5*

4*

3*

2*

1*

Typical engaged audience profile

Characteristics

• Engaged • Regular communication

schedule • Subscribers building • Lots of highly engaged

subscribers • Proportion of highly

engaged subscribers increasing over time ..

Typical disengaged audience profile

0

500000

1000000

1500000

2000000

5*

4*

3*

2*

1*

Characteristics

• Disengaged • Irregular communication

produces spiky profile • Subscribers building

but.. • Engagement diminishing

over time • 1* subscribers

increasingly dominant

eCommerce/retail eCommerce/retail

Case study engagement profiles

% o

f su

bsc

rib

ers

5*

1*

5*

1*

Case study profiles

eCommerce/retail Publisher

% o

f su

bsc

rib

ers

5*

1*

5*

1*

Case study profiles

Financial services Events/Promotion

% o

f su

bsc

rib

ers

5*

1*

5*

1*

Using engagement

Collect insight for enhanced subscriber intelligence

• Understand the relative engagement of: - your overall subscriber data - specific subscriber groups - individuals within your audience

• Integrate into your CRM for sales intelligence • Gain a better understanding of specific and

long-term campaign performance • Create audience list segmentation according to

engagement history – for future campaign use ..

Using engagement

Customise campaigns for specific behaviour groups

• Reward, nurture and re-engage

• Use to reward and progress engaged subscribers - Loyalty schemes, VIP offers

• Use to nurture average engagement subscribers - Entice with upsell promotions

• Use to re-connect with disengaged subscribers - re-engagement campaigns, different messaging, offers, returning discounts, welcome emails ..

Reconnecting with low engagers

• B2B professional development seminar company

Target

Campaign

Audience

Reconnecting with low engagers

• Subscription renewal • 2,500 subscribers • 1-3* rating • Low open rate • 6 renewals • Typical 10% open • Now 20-30% with

cleaned data

• B2B professional development seminar company

Rewarding high engagers

• B2C live audience ticketing company

Target

Campaign

Audience

Rewarding high engagers

• Average open rate 18%

• 307,000 5* sends from 1.4 million (20.7%)

• Valued members campaign open rate 61%

• B2C live audience ticketing company

How engaged are your customers, how do you know

3. and why should you care?

Why should you care?

Engagement impacts key business challenges ..

• Increasing revenue and profits • Growing customer base and market share • Managing costs, maximising investment ROI, value

• Positioning, boosting brand and reputation • Increasing competitiveness • Skills shortages and talent management • Managing compliance, risk, continuity and regulatory issues

• Enhancing customer experience and relationship • Operational excellence and profitability – lean, agility

• Sustainability, long-term commercial outlook


Engaged customers drive sustainable revenue ..

• Good news for your future business

• Successful companies look at the initial sale as a way of earning a lifelong customer (Sage)

• Loyal customers typically account for 80% of company profit

• Loyalty is a hugely powerful buying factor • Increased engagement increases resale and

upsell from 30%-50% (Forbes)


Engaged customers are your brand advocates..

• Good news for your brand

• Engaged customers are valuable brand advocates • (.. check your Net promoter Score, for % brand

advocates and detractors) • Their networks significantly increase your own

marketing reach • Referral – 65% of new business comes from

referral (NYT) • 83% of satisfied customers are willing to refer ..


Engaged customers drive revenue ..

• Good news for your Sales team

• New customer acquisition costs are high • Customer retention is good sales-sense • Referred prospects have far higher closure

potential (>50%) • Repeat customers spend more and are typically

less price sensitive • Returning customers spend more on each

subsequent transaction ..

Good news!

• Software developer & service provider • Hospitality, Retail/eCommerce, Events, Public .. • e-marketing - 100% Permission based

- Specifically high-engagement, targeted, relevant • Self-service platform – Email, SMS & social media • Support, training etc • Professional management services

- Customisation - Campaign outsourcing - Strategic guidance

Sign-Up.to

Free guides - www.signupto.com/resources • Coffee break guides to email and SMS marketing • 2014 UK email benchmark report • Precision marketing using audience dimensions Free seminars - www.signupto.com/resources/events • Discovery morning (11-Sep, 27-Nov) – London Free software - www.signupto.com/internet-world Or visit us on stand IW688

Further resources – stand IW688

How engaged are your customers?

Marketing

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