Sinead Thesis

Todays Research – Customer Engagement

Posted on: January 25, 2011

Today I began to read up on what has been said about Customer Engagement and I found that it seems to be an area of confusion.

Jim Novo tells us that engagement has the same meaning as retention  “To me a retained customer is one that is actively engaged, and that is how I measure retention – through engagement.”

I agree with Jim statement here but i feel there is a bit more to customer engagement

Advertising Research Foundation explain customer engagement as “Turning on a prospect to a brand idea enhanced by the surrounding context.”  – I personally have no clue what that means??  This definition doesn’t give enough information.

I believe customer engagement is brought about through active experiences the customer is exposed to from the brand  and how they are emotional involved with it.

Ron Shevin’s definition of customer engagement is “Repeated – and satisfying – interactions that strengthen the emotional connection a consumer has with a brand (product, or company).”

Ron’s definition is the pretty much the same as my own beliefs of customer engagement and is so far the best definition I can find.

Another area of confusion I found around Customer Engagement is, what the difference between Customer Relationship Management and Customer Experience Management?

CRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer satisfaction, loyalty, and advocacy. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. This allows customer facing employees in such areas as sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and upselling opportunities to target marketing strategies to competitive positioning tactics.

The concept of customer experience (CX) was first introduced by Pine and Gilmore in their 1998 Harvard Business Review article. They believe that successful businesses influence people through engaging, authentic experiences that render personal value (The Experience Economy – Pine and Gilmore 1998)

So CRM looks as if they work on the relationship with their customers,
CEM is improving on the interactions with the customers………looks to be the same thing to me!!!

AH HA  This clears it up
“Do I have a relationship with 17 million people?” asked Jim VonDerheide, vice president, CRM Strategies, for Hilton Hotels in a conversation I had with him for a white paper on customer experience management. “I don’t think I do,” VonDerheide said, answering his own question. “Do I interact with 17 million people? You bet.”

Ok I understand it more now
Customer Relationship management is knowing everything about your customer, perhaps so you know which customers to sell certain products to and what market strategies you can use on them.

Customer Experience management is how you interact with the customer, perhaps to gain more customers, to give current customers an experience that will have them using word of mouth. Basically giving current customers a brilliant experience and to gain more.

It’s all about Love at the end of the day 🙂

From my reading today its got me thinking about different areas of research

  1. Do brands / Company’s really have to engage with the customer? is there a need? or are customers like spoiled kids with too much attention…..
  2. How do you measure engagement?
    Eric Peterson published an engagement formula –
  3. With the use of the web its easier to interact and engage with customers, is it mostly younger people that company / brand are engaging with? as younger people typically use the internet most
  4. Does engagement provide more sales at the end of the day? – This relates back to my first question really, do we need it?

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Rayan Parikh – 2009

"The approach of using music to connect with viewers on a deep emotional level rather than a rational or congnitive level in advertising fundamentally redefined it as a brand building tool."

Schmitt 1999

"Creating cognitive problem solving experiences that engage customers creativity"

Sounds like branding

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