Forrester Engagement

1

EngagementA New Approach To Understanding Your Customers

2Entire contents © 2008  Forrester Research, Inc. All rights reserved.

3Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Meet Fazoom: AFOL

4Entire contents © 2008  Forrester Research, Inc. All rights reserved.

5Entire contents © 2008  Forrester Research, Inc. All rights reserved.

6Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Engagement requires a fundamentally different relationship with your customers.

THEME

7Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Eyeballs Awareness Consideration Preference Action Buyers

8Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Traditional media channels are weakening.

Complexity reigns in the middle of the funnel.

People continue to force brand transparency.

Your most valuable customer may not buy a lot.

9Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Both spend and influence should be considered

Ambassadors

Influencers

Core buyers

Misers

Lifetime(or financial)

value

+

0

Socialvalue

+0

10Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Uniquesite visitors

Frequency

New customeracquisitions

Satisfactionrate

Site usagestatistics

Sentiment oncustomer

service calls

Fan blogposts

Increased sales

Loyalty

Recency

Completedtransactions

Time spendper page

Sentiment inonline forums

Brandawareness

Blogcomments

Taggedcontent

Brandaffinity

Page views

Friend connectionson social networks

Likelihood torecommend

Sales liftfrom TV ads

Word-of-mouthBrand equity

Searchkeywords

Customerretention

Loyalty cardpurchases

Time spentwith online video

Net Promoterscore

Uploaded photosor videos

Site logins

Retail store visits

Click-throughs

Catalog requests

Retail store purchases

Online purchases

Content forwardedto a friend

TV GRPs

Print media plan

11Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Determining which metrics matter

Creating the right data & technology infrastructure

Connecting cross channel initiatives

Understanding how to make engagement actionable

12Entire contents © 2008  Forrester Research, Inc. All rights reserved.

? What can you do about it?

13

ENGAGEMENT

14Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Engagement is turning on a prospect to a brand idea enhanced by the surrounding context. — ARF

Engagement is defined as the strong connection a company, or brand, creates with a customer that drives purchase decisions and satisfaction over time. — Adobe

Engagement is an estimate of the degree and depth of visitor interaction against a clearly defined set of goals. — Eric Peterson

15Entire contents © 2008  Forrester Research, Inc. All rights reserved.

A person’s participation with a brand, regardless of channel, where they call the shots, is what we consider Engagement is the level of

involvement, interaction, intimacy, and influence a person has with a brand over time.

16

ENGAGEMENT = 4 i’s

17Entire contents © 2008  Forrester Research, Inc. All rights reserved.

4 i’sInvolvementThe presence of a person at the various brand touchpoints.

Interaction The actions a person takes while present at those touchpoints.

IntimacyThe affection a person holds for a brand.

InfluenceThe likelihood a person is to advocate on behalf of the brand.

18Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Influence Intimacy

Involvement Interaction

EVALUATION

USE

AFFINITY

DISCOVERY ENGAGEMENT

19Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Influence Intimacy

Involvement Interaction

EVALUATION

USE

AFFINITY

DISCOVERY ENGAGEMENT

Uniquesite visitors

Satisfactionrate

Site usagestatistics

Sentiment oncustomer

service calls

Fan blogposts

Increased sales

Loyalty

Completedtransactions

TV ad view and repetition

Sentiment inonline forums

Blogcomments

Brandaffinity

Page views

Friend connectionson social networks

Likelihood torecommend

Sales liftfrom TV ads

Word-of-mouth

Brand equity

Brandawareness

Loyalty cardpurchases

Time spentwith online video

Net Promoterscore

Retail store visits

Click-throughs

Catalog requests

Retail store purchases

Online purchases

Content forwardedto a friend

Outdoor ad passage

20Entire contents © 2008  Forrester Research, Inc. All rights reserved.

? How do you make use of this?

21

22

Lauraalli First Team member

23

24

25

Influence Intimacy

Involvement Interaction

26

Influence Intimacy

Involvement Interaction

Community tracking

alli forum tracking

Community registration data

Product purchases

Diet diaries

Photos of refrigerators

Food journals

Product feedback

Opinions of online ads

Shopping experience

Rating packaging materials

Advocates shared storieswith the media

alli First Team for early adopters and advocates

Success stories

27

28

More the 1 million people tried

the product in the first six weeks

$155 million in sales

in the first six weeks

$150M ad budget

realized in first six weeks

29Entire contents © 2008  Forrester Research, Inc. All rights reserved.

? How can you get started?

30Entire contents © 2008  Forrester Research, Inc. All rights reserved.

How do we…

?DefineEngagement ?Encourage

Engagement?MeasureEngagement

31Entire contents © 2008  Forrester Research, Inc. All rights reserved.

How do we…

Determineaverage usage.

Develop engagementpersonas and an

engagement hierarchy.?DefineEngagement

Establish excessive use. Determine the

context of use.Identify where discovery and evaluation happens

outside marketing channels.

32Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Identify existingmetrics, data sources,

and technologies.

Determine capabilities

to tie metrics together.

How do we…

?MeasureEngagement

Determine capabilitiesfor discerning

average versus excessive.Assess availability of

data from outsidechannels and venues.

Assess viability ofacquiring datayou don't have.

33Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Provide content andtools for people within

the context of use.

Reward and recognizefans and advocates.

How do we…

?EncourageEngagement

Facilitate conversationsand content creation.

Ask for identifyinginformation, but make it

desirable for peopleto provide it.

Identify fansand advocates.

34Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Think beyond the sale — think life cycle.

Act like a media company.

Put your product development hat back on.

35Entire contents © 2008  Forrester Research, Inc. All rights reserved.

Engagement requires a fundamentally different relationship with your customers.

THEME

36

Thank you.Questions?

Mary Beth Kemp

Principal AnalystForrester Research