An Overview of Customer Engagement Marketing:Tactics and Methods for “Behavior Shaping”

to Increase Mobile Usage, Revenue, and Virality

Scott Dunlap for Electronic ArtsJuly 18th, 2013

Short Version (30 slides – high level)

Medium Version (80 slides – frameworks and benchmarks)

Long Version (260 slides – tactics, how-to, and best practices)

Agenda

• Quick Intro• Evolution of Digital Marketing – How Did We

Get Here? • Overview of Engagement Marketing• Case Studies• Q & A

Quick Intro

• “Hypergrowth Navigator” @ 10D Labs

• Exec at 5 start-ups from concept to IPO/acquisition

• 55 products launched, many #1 mobile apps

• Aka “that trail runner guy”

Evolution of Digital Marketing

DigitalDistribution

Context Ubiquity

• E-mail• Web• Massive and

Passive

• Search• Social• Triggered• Responsive

• Multi-device• Real-time, 1:1• Marketing and

customer experience merge

Personalization

• Dynamic• CRM era• Still massive

and passive

What Used to Be Silos…

E-mail

PushNotifications

SMS

Marketing team defines schedule/content based on product launch, PR, etc.

Developers define experience

Campaign-specific from marketing team

Social Driven by social team/agency

…is now unified around the customer experience.

E-mail

PushNotifications

SMS

• Triggered by customer state• Optimized to encourage certain behavior• Channel-optimized

Social

Just think of the last app/servicethat surprised you with how much

time it managed to get…

…did it send you 10+ e-mails/week and you loved it even MORE?

YES.

You Helped Make Them Big!

As marketers, you are already feeling the effect…

Messaging Volume Is ExplodingV

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(Tri

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ns)

Messaging Volume Is ExplodingV

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In the time that it took you to read this sentence 2.8 million messages were sent

* And 62% will be read on a mobile device

*

How do you get above the noise?

MAKE EACH MESSAGE RELEVANT.

(Customer Engagement Marketing mantra)

Customer Engagement Mktg

• How is it different?– Triggered by behavior and customer state, and

encourages specific actions– Feels natural, not intrusive– I call it “behavior shaping”, but it’s rooted in

“growth hacking” and “lifecycle marketing”– Ultimate goal – shape behavior towards habitual

use that encourages $$$ and virality

Note - Engagement Marketing = Amplification of Value Only

If your product…– Sucks– Does not add more value than the avg 43 apps on a

phone (13 used regularly)– Cannot communicate core value in first 10 seconds,

and onboard in <20 seconds– Has a DAU/MAU less than 5%

…Engagement Marketing cannot help you.(now back to our program!)

Example – The Genius of LinkedIn

Did you know:• $22b market cap (doubling

every 9 months)• 30% of traffic driven from

engagement-style e-mails• They A/B test features/content

in e-mail first• They “shape” your behavior to

create ideal profiles to sell to recruiters/salespeople (genius!)

Seamless Engagement @ LinkedIn

• LinkedIn e-mails I got this week alone– “Your clan”– “Who wants you”– “Reciprocity”

• Keeps me engaged and coming back

• Is it marketing? Or the product experience?

• Does it matter?

Vocabulary of Engagement Marketing

• Actions– A well-defined and instrumented behavior

• Cohorts – Automatically group customers by certain usage

patterns, or desired usage patterns– “Active”, “casual”, “dormant”, “premium”, etc.

• Triggers– Customer behavior or external events that cause a

message to be delivered to a target cohort

The Simple Framework

More Advanced Framework Better Defines Cohorts

Aware On-boarded

PasserBy

Casual Active

Dormant

Premium

Active/ Sharing

Premium/Sharing

Example definition of “Active” – Completed Level 1, used in last 10 days.

Each day, customer actions (or lack of) create movement between cohorts…

Active

Dormant

2,104 users hit their 10th day of non-use.

390 users who were dormantused the app.

…triggering targeted campaigns

Active

Dormant

2,104 users hit their 10th day of non-use.

390 users who were dormantused the app.

Send “what your friends are doing” e-

mail

Send “good to have you

back” to those 30+

days inactive

Once it’s defined, it runs itself…

The Essential Tools• Step 1 – Cohort Analysis– Dynamic cohort definition, control groups

• Step 2 - Triggered Messaging– E-mail vs Push vs Text– Social (680m daily mobile users on FB alone)

• Or Both in an “Engine”– New solutions combine the above into one, similar

to how FB, Twitter, etc built internally

Example Engagement Engine - Kahuna

Live Triggered Campaigns

Analysis Projects How to Maximize Engagement

SuggestedCampaigns

“Where to Start” Example - Gyft

• Wanted to address “single use” (Active-> Dormant)

• Set up reminder campaign, e-mail and push optimized

• 19% lift in monthly Actives (800%+ annually…power of compounding)

“Seeding Key Users” Example - Refresh

• Early adopters help define cohort characteristics for highly active user

• Target users with similar characteristics on FB, Twitter

“Seeding Key Users” Example - Refresh

• Organic referrals work best, triggers after meetings

• Twitter gets downloads…

• …but Facebook helps define value proposition

“Never talk about the weather again!”[1,170 likes, 2.4% CTR]

“New App to make conversations…”[370 likes, 0.3% CTR]

Where Could EA Go? - Scrabble

• Deeper relationship with e-mails

• Cross-sell• Encouraging sharing• Etc.

Confidential Content

(Long version of this deck has LOTS more examples)

Who’s Got This Nailed?

• Acquisition – Mint, OKCupid, Scrabble• Onboarding – Dropbox, Quora• Migration to Active – LinkedIn, Facebook,

Groupon• Best Weekly Digests – Quora, Twitter• Best Impulse Buying – Fancy, One Kings Lane,

Fab, Etsy, Pinterest (?)• Best Referrals – Quora, LivingSocial, AppSumo• What worked on you…check your phone!

Required Reading…

• The 280 slide version has lots of best practices…• NirAndFar.com – Understanding the roots of

habitual behavior and design.• Dave McClure’s Growth Hacking Intro on SlideShare

– still one of the best.• DJ Patil’s Data Product eBooks.• Growth hackers – growhack.com, Andrew Chen• Quora Growth Hacking groups• White Papers – Kahuna, Marketo, SilverPop, etc.

Thank You! See You On The Trails…

Scott@10dlabs.com@scott_dunlapLinkedin.com/in/scottdunlapwww.atrailrunnersblog.com