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Digital Trends Report 2007

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Trends identified by consultants of the cScape Customer Engagement Unit
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  • www.cscape.com

    Customer Engagement

    trends report 07

  • No.

    Contents

    Welcome to the cScape Customer Engagement Unit (CEU) 2007 Trends

    Report. 2006 was an exciting time for all those involved in the CEU. We

    were working behind the scenes for eight months building up a series

    of project wins and exemplary case studies ready for the Units launch in

    November 2006. Accompanying the launch, the publication of our Online

    Customer Engagement Survey Report provided an essential insight into

    how organisations are undertaking the task of customer engagement.

    However, the problem with survey reports is that they need to be objectively based on the results

    gathered. It wasnt appropriate for us to include our own experiences, opinions and prejudices.

    The Trends Report in front of you has given us the opportunity to let loose. Each of our CEU consultants

    has offered their take on what has been important in the last 12 months, and what they feel will be

    central to engaging your audience in the next 12.

    We hope you find it stimulating and insightful and look forward to being held to account in 2008.

    Do let us know what you think of our thoughts and keep in touch because we have some very cool

    events planned for the coming months.

    Richard Sedley

    cScape Customer Engagement Director

    [email protected]

    Customer Engagement: trends report 07

    Introduction

    Contact the cScape CEU >

    One Customer Engagement - Richard Sedley

    Two Right Touching - Dave Chaffey

    Three Corporate Social Responsibility - Rob killick

    Four Persuasion - Richard Sedley

    Five User Generated Content - Clare OBrien

    Six Podcasting & Audio Branding - Simon Barnett

    Seven Search Marketing - Dave Chaffey

    Eight - Dave Chaffey

    Nine Findability - Lynda Rathbone

    Ten Subscription - Alexander Kohlhofer

    Eleven Brand - Ed Lloyd-Williams

    Twelve Web2.0 - Richard Sedley

    0of12

  • Customer Engagement: trends report 07

    Introduction

    No.

    Richard SedleyCUSTOMER ENGAGEMENT

    Request a free copy of the Online Customer Engagement Survey Report >

    November 2006 saw the launch of cScapes Customer Engagement Unit (CEU). To coincide with

    the launch we sponsored the worlds first Online Customer Engagement Survey. Over 800 respondents

    undertook the survey to produce an invaluable snap-shot of the current state and aspirations of our industry.

    The survey revealed a significant gap between the customer experience organisations are aspiring to deliver,

    and that which they are providing in practice. Almost two thirds of company respondents (64%) believe that

    joined-up online and offline experiences are essential for engaging with their audience, but 60% are either

    not very advanced at mapping customer experiences and identifying touch-points (36%), or admit they have to

    start looking at this because they are not doing it at all (24%).

    Half of respondents (51%) believe that personalised experiences are essential for audience

    engagement, with a further 44% believing they are useful. Despite the perceived importance of

    personalisation 37% of company respondents are not providing it at all.

    2007 will be a watershed year for businesses in terms of the way they react to the multi-channel challenges

    they face. Many businesses will jump on board customer engagement strategies; and will progress towards

    developing personalised conversations with, and seamless experiences for, their customers. Those that keep their

    distance are likely to fall behind.

    No.

    Completely personalised1.77%Quite heavily personalised9.89%Lightly personalised47.7%Not personalised47.7%Not relevant / Dont know3.19%

    Essential50.75%Useful44.40%Not important4.85%

    Fig.2 (Outer circle) How central are personalised experiences to engaging your audience?

    Fig.2 (Inner circle) How much does your organisation personalise the experience for online users?

    1of12

  • Customer Engagement: trends report 07

    Introduction

    Dave ChaffeyRight Touching means the right offer, at the right time with the right frequency

    In 2006 I coined the term Right Touching to find a way of highlighting one of the biggest challenges in online

    customer marketing. In an Email Marketing context, Right Touching means delivering the right offer, at the right

    time, with the right frequency and interval using the right medium for each individual list member. Easier said than

    done! If the frequency is too high, you risk alienating the majority of your list, but if your frequency is too low, the

    risk is that returns will fall.

    Right Touching becomes really powerful when you use web analytics for a sense and respond approach to deliver personalised

    emails via web and email which have that perfect context for the right point in a customers lifecycle. In 06, clients we have worked with

    to create personalised web, email and direct mail touch strategies have seen great returns from a structured analysis approach.

    To refine touch strategies further means going beyond simplistic overall campaign reports of opens, clicks and sales to testing and

    reviewing the responsiveness of list members, by their e-retail lifecycle stage, demographics, RFM cell, and channel preferences integrated

    across the whole year (rather than for individual campaigns). Through a more granular approach, we see that some list members are less

    responsive to email, so we can test decreasing the frequency, enhancing the offers, changing the messaging or placing greater weighting

    on direct mail in order to gain better response from these members.

    RIGHT TOUCHING WITH EMAIL

    No.2of10

    For 2007 I see the biggest rewards for those who can deliver personalised search, web and email experiences, based around

    understanding individual customers needs. Marketing automation, is whats required; building rules to deliver experiences and results

    which sync with the customers needs, not a marketing campaign timetable.

    Get touched right >

  • Customer Engagement: trends report 07

    Introduction

    All of us are increasingly urged to be accountable for the social effects of our activities if you are in business of any kind this

    includes the ethical treatment of your staff and the communities in which you operate. As the website is your front to the outside world,

    it is imperative that any corporate social responsibility (CSR) agenda is communicated through the digital space. If you run volunteering

    schemes for your staff, incorporate CSR into your business strategy or measure the social impacts of your work, be sure to tell the world

    about it on your website.

    Demonstrating how your business benefits society is an integral

    part of branding, which is increasingly about trust-building. cScapes 2007

    Annual Customer Engagement Survey demonstrated that over the next

    12 months, web users are likely to see more initiatives from companies to open

    up channels of communication through social media or so-called Web 2.0

    features. Charities and companies across all sectors are increasingly using

    these tools to accommodate their prioritisation of transparency. For instance, 35% of the respondents said they are planning to use

    corporate blogs in the next 12 months; 17% are using them already.

    In addition, CSR is seen as a crucial way of engaging customers: 21% believe that communicating their CSR agenda is essential, with

    a further 57% believing this is useful.

    My prediction for 2007? The web will become the front line for meeting the growing demands for accountability. Those that take it

    seriously will see the potential for brand development, those that dont, beware.

    Essential21.19%Useful57.25%Not important21.56%

    Rob Killick

    The web will become the front line for meeting the growing demands for accountability

    Corporate Social Responsibility

    No.3of10

    Fig.1 How central is communicating your organisations corporate responsibility? Taken from the 2007 Online Customer Engagement Survey

    Talk to us about developing your CSR commitment online >

  • Customer Engagement: trends report 07

    Introduction

    Richard SedleyWelcome to persuasion in the era of Web2.0. The best method for achieving engagement

    The thing about customers is they just cant be relied upon to do what you want. It

    doesnt even matter how findable, how accessible, how useable or how interactive you

    make your website there are still no guarantees theyll do what you want. In fact a recent

    survey revealed that 60% to 80% of customers who defect to a competitor said they

    were satisfied or very satisfied on a survey just prior to a defection1.

    If even satisfaction doesnt offer guarantees what can you do? You can engage and persuade.

    Engagement is your only guarantee of future performance with persuasion your best method for achieving it. Now

    persuasion has had a bit of a bad rep. recently, the concept has been saddled with negative, Machiavellian conatations.

    Welcome to persuasion in era of Web2.0, time to change your mind and embrace the P word.

    For the cScape Customer Engagement Unit persuasion is about aligning the needs, interests and preoccupations of

    customer and business, and changing the actions of both parties. The flip-side of the process of persuading a customer that

    they should engage with you is that you learn and change yourself

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