engagement: more than just wearing your ring
TRANSCRIPT
Engagement: More than Just Wearing Your Ring
Canada Post: Think Inside the BoxToronto: October 29, 2015
Introduction
DiG helps companies make sense of their data and bring clarity to what it is saying about their customers.
From dating to wearing the ring….
….to left at the alter, after dating for years!
But were there signs?
Before I left there were obvious signs:• Web self-service visits to check contract length;• Phone inquiries about payout costs;• Cancellation of single products without contracts.
But were there earlier signs of my discontent? Earlier…..
• Limited response to direct mail offers;• No new products opened;• Few opens and clicks to email campaigns;• Few inbound calls or use of voicemail;
LONG before the more obvious churn signs
Typical look at Engagement
How engaged are my customers? What impact is my marketing having on the overall level of engagement?
Customer-Level Engagement
• We wanted to develop a measure that gauges the nebulous concept of the individual customer’s relationship with the business.
• The objective was a methodology for identifying, ranking and targeting specific customers based on their levels of engagement.
DiG Engagement Index
CASE STUDY: MEASURING ENGAGEMENT
Customer Level Engagement: Case Study
• The Client: A telecommunications company
• Problem: Wanted to understand relationships individual customers had with the company to determine who to target for new products and services.– Had understanding of customer base as a whole;– Had some ability to understand churn and value at a customer
level; although were struggling with how to act on the metrics.
Challenge: Distinguish Between
The Engaged• Committed not contracted;• Sees value in your brand;• Raise their hands;• Receptive to your messages;• Want to hear from you.
The Apathetic• Feel bound, not committed;• Driven by inertia;• You are not really on their
radar;• Unlikely to notice/care about
your messages.
DiG Engagement Index: What it is
• The DiG Engagement Index is a calculation that measures the relationship a customer has with the company – and can be used to track and target based the strength of that relationship.
• It looks at an individual’s overall engagement – as well as specific facets of engagement.
Guiding Principles
• Must include subjective business understanding;• Must employ statistical rigour, not just gut feel. • The focus must on how the customer interacts with the
company (not on how the company interacts with them). • Must be able to be evolved over time:
– As more data becomes available;– As business and competitive conditions change.
Our Client’s Intended Uses • Marketing Strategy
– e.g. Target offers and channel• Customer Management
– e.g. Discount decisions (in conjunction with value)• Retention Initiatives
– e.g. Low Engagement as early warning of churn• Performance Measurement
– e.g. Tracking changes in Engagement as a result of targeted actions - and over time
Process
• Brainstorm each facet with the business to generate hypotheses;
• Investigate data availability and ability to differentiate;• Test hypotheses against key desired behaviors to validate
the subjective thinking • Establish the weighting schema through a combination of
exploratory statistical analysis and business acumen• Calculate scores.• Group customers into meaningful and actionable groups.
• Company Engagement– Company Engagement is a measure of the way the customer sees
the company as a whole – not any one product offering. It is not a traditional brand engagement metric, although it is closely related to the trust the customer has in the brand.
• Marketing Engagement– Marketing Engagement is a measure of how responsive and
receptive the member is to our marketing. A customer with high engagement wants to hear from us, reads our marketing messages and is receptive to our calls.
• Product Engagement– Product Engagement is typically defined as the engagement with
the product itself. Generally speaking someone with high product engagement is someone who understands and uses the features of the product. We expect this product engagement makes them more “sticky”.
Overall Engagement is a weighted sum of all three.
DiG Engagement Facets
Case Study: Sample Elements
Company Engagement Cross sold to
different product lines;
Participate in corporate rewards programs;
Participation in surveys;
Updating information voluntarily (e.g. address change, credit card expiry);
Marketing Engagement Using DM promo
codes; Opts in / records
preferences; Visits custom landing
pages from DM; Opens email or texts
- clicks / responds/ forwards;
Visits self-service site;
Visits store; Calls call center; Social media “likes”
Product Engagement Use of product Actively upgrading Renewing contracts Adding products /
features; Buying accessories
Case Study: Results
SUMMARY: ENGAGEMENT INDEX
ENGAGEMENT INDEX GROUPNO ENGAGEMENT (15%)LOW ENGAGEMENT (40%)
MEDIUM ENGAGEMENT (24%)HIGH ENGAGEMENT (16%)
VERY HIGH ENGAGEMENT (5%)
For this client, five overall groups were established due to the considerable variation between them.
Strategic Mapping
Value Index
Engagement Index
No Value
Low Value
NoEngagement
LowEngagement
High Value
Medium Value
Medium Engagement
High Engagement
No Value / No Engagement
High Value / High Engagement
RETAIN
ENGAGE
GROW
NO ACTION
PROFITABLY MANAGE
Migration Tracking
Very Low Engagement
Low Engagement
Medium Engagement
High Engagement
Very Low Engagement 80% 10% 8% 2%
Low Engagement 2% 78% 15% 5%
Medium Engagement 0% 10% 90% 0%
High Engagement 0% 5% 13% 82%
Time0
Time1
Conclusion
While the results are proprietary, our client was able to:• Use Engagement to improve response rates to direct mail
campaigns by targeting those that were engaged.• Implement the Engagement Index as a metric to track the
effectiveness of their marketing campaigns and the overall health of their database.
• Target their retention efforts to earlier and reduce churn.
WHY DO WE CARE?Customer Engagement
Engaged customers….
• Raise their hands;• Provide feedback;• Make referrals;• Increase their spending;• Give you a high share of wallet;• Can be cross-sold to new products;• Tend not to churn.
Customers who are fully engaged represent an average
23% premium in terms of share of wallet, profitability, revenue and relationship growth compared with the average customer.
(Gallup State of the American Consumer, 2014)
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