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

and why should you care?

Engagement

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

What is engagement?

Specifically .. customer engagement Engagement

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

What are the characteristics of engagement?

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 ..

Where to start?

Permission Permission is the foundation of 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?

and why should you care?

Observe their behavioural characteristics

Quantify – measure Absolute, Relative, Dynamic

Engagement profiling Profiling for “precision marketing” – collecting insight

• Engagement is 1 of 5 profiling “dimensions”

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

Engagement profiling 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

How do you quantify the dimension of engagement?

Engagement profiling Engagement scoring algorithm

• In-house developed engagement algorithm

• Implemented across all current Sign-Up.to customer accounts and back-played over historic campaigns

Engagement profiling Engagement scoring algorithm

• Automatically measures quality of e-relationship over time

• Based on multiple parameters including .. • Frequency of interaction • Quantity of interaction • Type/quality/depth of interaction

Engagement profiling 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 profiling Engagement algorithm – some background

• Starring bands are based on both theoretical and matched empirical data

• Bands 1*-5* are non-linear between min & max (for accurate reflection across range of scenarios)

• Campaign interactions (open, click, forward, complete) are given weighted engagement increments

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

Engagement profiling Engagement algorithm – some more background

• Multiple single campaign interactions gain additional engagement increments

• Passive engagement is considered a 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 – parameters are updated

automatically as campaigns are executed • Rating is dynamic – results are continuous • Legacy data included from replayed historic campaigns • Engagement score is available for use in segmenting

data and targeting future campaigns ..

Engagement profiling

0

500000

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1500000

5*

4*

3*

2*

1*

Typical engaged audience profile Characteristics

• Engaged • Regular communication

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

Case study profiles eCommerce/retail Publisher

Case study profiles Financial services Events/Promotion

Using engagement Ability to collect insight for enhanced subscriber intelligence

• Understand the relative engagement of: 1. your overall subscriber data 2. specific subscriber groups 3. individuals within your audience…

Using engagement Ability to collect insight for enhanced subscriber intelligence

• Gain a better understanding of specific and long-term campaign performance

• Create audience list segmentation – for future campaign use

• Integrate into your CRM for sales intelligence..

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

UK B2B services company

- Management and organisational development seminars

- Online and telephone booking

- Around 900 email addresses

- Send around 4,500 emails per month

Reconnecting with low engagers

Reconnecting with low engagers

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

cleaned data

Reconnecting with low engagers

Rewarding high engagers

Ticketing site for television and radio audiences

Very frequent emailer

Over 1 million subscribers

Rewarding high engagers

Rewarding high engagers

Sweat the small stuff

Comedy panel show

Multi-touch promotional campaign

Personal guest list promotion to

VIP customers

Rewarding high engagers

• Average open rate 18% • 307,000 5* sends from 1.4 million (20.7%) • Valued members campaign open rate 61%

How engaged are your customers, how do you know

3. and why should you care?

Look beyond the marketing benefits

Why should you care? Directly impacts 5 of top 10 business challenges ..

• Increasing revenue and profits • Growing customer base and market share • -

• Positioning, boosting brand and reputation • - • - • -

• Enhancing customer experience and relationship • -

• Sustainability, long-term commercial outlook

Why should you care? Engagement impacts top 10 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

Why should you care? 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) • Loyalty is a hugely powerful buying factor • Loyal customers typically account for 80% of profit • Increased engagement increases resale and upsell from

30%-50% (Forbes)

Why should you care? 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 • 83% of satisfied customers are willing to refer • Referral – 65% of new business comes from referral (NYT)

Why should you care? 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 .. • 100% Permission based

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

Who are Sign-Up.to?

Free guides - www.signupto.com/resources • 2014 UK email benchmark report • Precision marketing using audience dimensions

Free seminars - www.signupto.com/resources/events • Discovery morning (27-Nov) – London Copy of presentation slides tony@sign-up.to Or visit us on stand A60

Further resources – stand A60