CEM: Getting Acquainted With Your Customers

You’ve probably heard of CRM, right? CRM is old hat. An acronym standing for Customer Relationship Management, the goal of any CRM program is to manage a company’s interactions with prospects and customers, while reducing the costs and building customer lifetime value. Now how about CRM’s twin sister, CEM? Probably not.

You’ve probably heard of CRM, right? CRM is old hat. An acronym standing for Customer Relationship Management, the goal of any CRM program is to manage a company’s interactions with prospects and customers, while reducing the costs and building customer lifetime value.

Now how about CRM’s twin sister, CEM? Probably not. Unknown to many, CEM is an acronym that stands for Customer Experience Management. As a side note, Customer Experience is sometimes also referred to as CX. Now if you’re a marketer, regardless of what you decide to call it, Customer Experience Management is a discipline you need to get acquainted with.

In general, CRM programs tend place a heavy emphasis on marketing and communications. After all, establishing touchpoints with customers or potential customers at crucial points in the customer journey is incredibly important to achieve desired behavioral outcomes. Fair enough.

In many ways, CRM programs tend to be one-dimensional in nature, focusing on how the firm makes decisions as regards place, product, price and promotion, with little emphasis on customer needs or desires. It shouldn’t be too surprising then to learn that many CRM programs fail because they use an approach that—while brilliant on paper—is misaligned to actual customer wants, needs or expectations.

This is where CEM steps in. You see, it turns out that to succeed in today’s challenging multichannel and mobile/social environment, firms need to expand their scope of their CRM initiatives to create a program that aims to focus like a laser on customer needs, both rational and emotional, and drive toward expected outcomes and KPIs.

At a baseline, the goal of any CEM program is ostensibly to move customers from satisfied to loyal and then from loyal to advocate by taking a holistic view of the totality of their experiences—regardless of place, time or channel.

This is important because, let’s face it, at the end of the day customer perception is built through interactions across multiple events—most usually through multiple channels. As such, successful CEM programs all feature the capability to manage and track engagement where they actually take place—on the Web, on a mobile device, when a customer speaks with a customer service rep or deals with an automated switchboard on an IVR. It all adds up.

Depending on the type of business, customer engagement channels might include contact the Web (main website), mobile (mobile website or app), brick-and-mortar stores and call centers, while touchpoints may include phone (call center, IVR or in-house customer service team), Social Media, email, self-service Website (traditional or mobile) or in-person. Lifecycle engagement includes ordering, fulfillment, billing and support.

But that’s not all—CEM programs also take into account when engagements take place in relation to the customer’s (or buyer’s) journey. An initial conversation between a sales rep and a new customer would be tracked and discerned, for example, from an inquiry on the Web. And this has real-world repercussions. A customer service inquiry by a high-value customer, for example, would be handled differently than in initial inquiry by a prospect on a Web form.

As is the case with most disciplines, CEM programs have evolved over time. This is a good thing. If you look at the chart, you’ll observe that I’ve broken down CEM into its three dimensions: Engagement Channels, Engagement Touchpoints and Engagement Lifecycle.

You’ll notice that I’ve bolded four of them in red. I’ve done so because these are recent additions to the CEM value system.

Okay, I know I could go on more, but I’m running out of room for this post. Got any questions or feedback? Please let me know in your comments.

Thanks,

Rio

Branding Is Not Enough to Make Social Sell

If you want to make social media sell for you take action on the mercenary truth: Branding is rarely executed as a consistent, reliable process. Branding (the meaning of which is still not universally agreed upon) is not enough to create sales. Nor is B-to-B branding—or its “social cousin” engagement—consistently able to produce customer behavior (e.g., leads). Direct response must be built in to the campaign for leads and sales to manifest. It doesn’t “just happen” thanks to our friends branding and engagement.

If you want to make social media sell for you, take action on the mercenary truth: Branding is rarely executed as a consistent, reliable process. Branding (the meaning of which is still not universally agreed upon) is not enough to create sales. Nor is B-to-B branding—or its “social cousin,” engagement—consistently able to produce customer behavior (e.g., leads). Direct response must be built in to the campaign for leads and sales to manifest. It doesn’t “just happen” thanks to our friends branding and engagement.

Customers Expect Proof, Upfront
People are buying as a result of content marketing efforts. True. But they’re buying when the business behind the content is willing to prove effectiveness of the product or service (in some small but meaningful way) prior to purchase. This is so important you might want to read it again.

Here’s the rub. In my experience, branding and engagement prove little (if anything) to me, the customer. Branding and engagement usually fail to solve a problem that brings me closer to the purchase as part of a clearly defined process.

Think about how you use Facebook, LinkedIn, YouTube, etc. in your life. Do you buy based on what you see on social media? You’re probably not buying based on sentiment (how you feel about a brand) very much any more. In fact, you’re likely buying less based on how engaged marketers think your are, more based on what they’ll prove to you up front!

Prove It or Lose It!
Today, people are buying purely based on a brand’s ability to deliver some results before the purchase. Software? Give me a free trial—and don’t give me any talk about limiting functionality of the trial version. Financial services? Solve a problem for me relating to my ultimate need—to get my act together with college savings or retirement. Consulting? Show me, materially, that you’re worth your salt. You get the idea. And, no, this isn’t about “free” as a new business model.

Delivering results before the purchase demands a systematic, yet practical, way to court your customer—to prove to them that actually buying your product or service will certainly give them full results. They’ve got to be sure and nothing creates certainty like actual proof! So, how can you begin to take next steps?

“In most companies, at least historically, marketing and sales have been measured by, and hence driven by, different success metrics,” says Dan McDade of Pointclear, a B-to-B lead generation firm who points at the classic misalignment of sales and marketing as problematic.

“This condition has been simply accepted by or ignored by most senior managers. I know this seems harsh, but unfortunately it is still true today in many, if not most, organizations,” says McDade.

Reach Past Listening, Toward Useful Insights
Recognition of the misalignment is step one, and I’ll ask you to pair this recognition with a new perspective on social media. Start applying social media to uncover insights on customers’ micro-problems, goals or burning desires, then putting those discoveries to work through traditional lead nurturing.

Some argue the big opportunity social gives us is to create more engagement in hopes of creating preference. But successful social sellers use social media to create demand. In parting, which of the below seems more powerful to you?

  1. Listening for customers’ brand perceptions, sentiment, etc. and creating better ad messaging that creates more engagement (awareness leading to preference).
  2. Understanding customers’ problems or goals and finding creative ways to create organized, measurable response that helps customers “guide themselves” toward a purchase.

Thanks for considering.

Why Your Engaging Content Won’t Produce Leads

The ugly truth is, for many of us, engaging customers creates profitless prosperity—impressive marketing statistics that don’t ultimately, directly help generate leads and sales. Engagement is creating momentary value that is aloof from any kind of sales lead management process. Yet businesses who do create sales using social selling know something the rest of us don’t. Let’s find out what that something is.

The ugly truth is, for many of us, engaging customers creates profitless prosperity—impressive marketing statistics that don’t ultimately, directly help generate leads and sales. Engagement is creating momentary value that is aloof from any kind of sales lead management process. Yet businesses who do create sales using social selling know something the rest of us don’t. Let’s find out what that something is.

Why We’re Failing to Sell with Engagement
For years now, we’ve been rising each morning, downing our coffee and suffering through questions like, “How do I know what to blog each day?” And the biggie, “How do I become engaging enough to produce leads and sales?”

Most of us are busy producing engaging content on LinkedIn, Facebook, YouTube and other social media. But in the end, even our most engaging blogs, YouTube videos and other forms of online publication fail to produce leads and sales. At best, sales are blindly attributed to content as part of a mass media branding success using fuzzy math. Why?

My on-going research confirms it: We’re failing to create sales engaging social media because we’re building content marketing on an outdated foundation. We’re clinging to mass media advertising ideas and values. Instead, we should be exploiting direct response marketing tactics.

“Marketers often come from two distinct backgrounds,” says best-selling author and IBM distinguished engineer Mike Moran.

“Brand marketers are the ones whose work you see on TV. They are all about branding, brand image, brand awareness—use whatever word you want—and their success has made Coca-Cola and many other consumer products into household names. Direct marketers are decidedly less sexy … constantly searching for the next idea that increases response. They are all about sales, and couldn’t care less about brand image as long as the cash register rings.”

Moran says engagement marketers with an interest in driving sales have much to learn from the practice of direct response marketing. Again, it’s not about influencing or leading thought, it’s about being a thought provoker.

How to Always Make the Sale
Why do so many of us pursue getting “liked” on Facebook or followed on Twitter? Because of this single idea: getting a lot of customers’ attention (reach) over and over (frequency) is enough to earn a sale … somehow, sometime. This is how advertising works.

Today’s best social sellers do not believe for a minute that exposure to engaging content will result in a sale. They have no faith that it will produce a lead. Rather, they believe in, and execute on, carefully mixing in calls-to-action. The content they create solves customers’ problems or vividly demonstrates (proves … think “infomercial”) compelling experiences relating to their service.

The best way to sell on Facebook is to solve customers’ problems (yes “for free”) in ways that earn trust and ultimately help them navigate their way toward your paid products and services. And by the way, I’m not saying attention or branding doesn’t matter. It does. I’m simply saying it’s not enough. Stopping at earning customers fleeting attention is a sure-fire losing strategy online.

I say avoid getting sucked into the profitless prosperity black hole by thinking in terms of direct response marketing when engaging with social media and content marketing. What do you think?

Facebook’s Timeline for Brands: A Facebook Performance Opportunity

Facebook’s new Timeline for Brands enables marketers to foster engagement with participants. This engagement can equal Facebook performance. Brands can separate themselves from the competition by using real-time Facebook engagement data and insights to optimize their brand pages for performance.  

Facebook recently announced the launch of Facebook Timeline for Brands, or new profile pages for brands on the social networking site. New features of brand pages include the following:

  • pages are much more visual as brands have the opportunity to use large cover photos and videos to promote themselves;
  • brands can now prominently feature their most important tabs at the top of their pages;
  • brands can pin key posts to the top of their pages for up to seven days (i.e., they can highlight important posts for a longer time period); and
  • similar to Twitter, brands can privately message fans (and vice versa), helping Facebook become a more powerful customer service tool

The new pages are the hub for your brand on Facebook. All of your brand’s Facebook activities, ads and posts originate from your brand page. The brand page is also the key place for you and your fans to communicate, enabling you to foster stronger customer relationships.

Brands now have a platform on Facebook for complete experience optimization — i.e., engaging participants through sights, sounds, words, interactions, ads, games and apps, all in one easy-to-find place. Facebook noted that it wants Timeline for Brands to bring back the relationship between the customer and shopkeeper. The updated brand pages provide a platform for brands to engage with customers on a more personal and relevant level than probably any other platform, including the brand’s own website.

The same day Facebook launched Timeline for Brands, it also announced its new real-time Page Insights. Real-time insights are a game changer as marketers used to have to wait 48 hours for Facebook data.

Facebook Product Manager David Baser recently talked to AdAge about what real-time insights means for brands seeking performance through Facebook pages. Baser maintained that engagement can equal performance if brands are able to leverage real-time participant data to quickly optimize brand pages. For instance, if a brand knows that a certain post is driving a significant number of likes, comments or shares, that brand can quickly pin that post to the top of its brand page.

The new brand pages and real-time insights give brands the opportunity to understand how well they’re interacting with their users and how responsive customers are to the brand. These engagement metrics don’t necessarily directly equate to performance (i.e., sales and leads), but they can help a brand understand its ability to increase the likelihood of performance — e.g., conversions, new customers, improved customer loyalty and increased average order size.

The like button isn’t the only Facebook engagement metric of interest to marketers. Facebook also now reports on various engagement metrics centered on actions. These include the “People Talking About This” metric, which incorporates likes, comments, shares, tags, check-ins and event RSVPs, and the “Engaged Users” metric, which incorporates clicks on links, photos and video views. Performance marketers are focused on collecting and analyzing this engagement data to inform brand page content, make real-time brand page optimization decisions and increase the chance of performance. Brands should consider the following when analyzing their Facebook marketing strategy:

  1. Test specific posts (videos, polls, etc.) around new products, promotions and events.
  2. Collect engagement data.
  3. Measure changes in customer behavior (e.g., sales, leads, new-to-file customers, order size, etc.) based on the data.

Facebook’s new Timeline for Brands enables marketers to foster engagement with participants. This engagement can equal Facebook performance. Brands can separate themselves from the competition by using real-time Facebook engagement data and insights to optimize their brand pages for performance.

How to Convert LinkedIn Contacts into Qualified Leads

Answering your customers’ most commonly asked questions opens the door for discovery … and for brands to make relevant suggestions. You can offer prospects a friendly tip or useful trick or, if appropriate, outline benefits of taking a trial, downloading a whitepaper or attending your webinar.

Turning LinkedIn contacts or LinkedIn Group members into leads rarely happens using what I call passive engagement. It takes something more than occupying prospects’ time. You’ve got to convince them to sign up for your webinar or download your whitepaper.

Luckily, converting LinkedIn contacts to leads is easy. Just start by solving your target market’s problems in ways they find irresistible. Then plan engagement—carefully map it out to connect your target customers’ questions to the answers your content marketing devices (webinars, whitepaper) deliver.

The Engagement Myth
If you’re like most B-to-B marketers, you’re struggling to turn LinkedIn contacts and group members into leads. But getting it done is easier than you think. After a year of interviewing B-to-B and business to consumer businesses experiencing remarkable success using social media I found the common success principle: Ditching passive engagement—and giving contacts, friends, followers and such a reason to offer more than a “like” or merely consume content.

Many LinkedIn gurus claim awareness, reach and influence leads to conversion. They say, “regular online participation in LinkedIn Groups and with followers on other social platforms can convert them from followers into leads and on to customers.”

Yes, it can but this belief isn’t much different than the “reach and frequency” promise of advertising. Namely, if we beat the drum loud enough (reach) and often enough (frequency) it will cause people to perform an action—register, attend, download. As Dr. Phil likes to say, “and how’s that working for ya?” This is what I call passive engagement.

But there is a better way: Designing engagement to produce actions by solving customers’ problems in places where questions often get asked—like LinkedIn Groups.

Solve Customers’ Problems
You’ve probably heard that posting a certain number of times, on certain subjects, on certain days inside LinkedIn Groups where your target market congregates is the key that unlocks success with LinkedIn. Or maybe you’ve heard that frequent posting of blogs you’ve written in LinkedIn Groups will generate leads. These ideas don’t work. The key to success is solving customers’ problems in provocative ways.

For instance, use LinkedIn to generate questions among customers that your webinar or whitepaper gives answers to. Creatively bait customers to communicate or complain about problems (in LinkedIn Groups) that your content marketing device provides solutions for. Next, provoke actions—exploit those complaints by enticing, “ethically bribing” prospects to register for a webinar, download or perform an action that helps you qualify them as leads. It’s a snap.

Scratch Customers’ Itches in LinkedIn Groups
For instance, grocery store Harris-Teeter pays customers to ask its dietician health-related questions on Facebook. Why would a grocer—or you—do that? Because helping customers put out a fire or scratch a bothersome itch is powerful. It can be done on any social platform where your target audience is engaging, like LinkedIn.

Answering your customers’ most commonly asked questions opens the door for discovery … and for brands to make relevant suggestions. You can offer prospects a friendly tip or useful trick or, if appropriate, outline benefits of taking a trial, downloading a whitepaper or attending your webinar.

Always beware: leads don’t “just happen” passively using LinkedIn. You need to solve problems with a plan in mind. That said, using a question-and-answer technique takes much of the work out of the process. It can even be fun. What do you think about giving this a try?

Doubling Down on Google+?

When determining how to integrate Google+ brand pages into your planning for 2012, it’s important to understand what Google+ is and what it isn’t. By Google’s own admission, Google+ isn’t meant to be a social network. Or so it says.

When determining how to integrate Google+ brand pages into your planning for 2012, it’s important to understand what Google+ is and what it isn’t.

By Google’s own admission, Google+ isn’t meant to be a social network. Or so it says. Google+ Pages will help brands in terms of search position and relevance with more real-time content that’s prioritized above other search results. But it’s not designed to drive the type of deeper engagement true social networks allow. While Google+ should be part of your overall media strategy, it won’t replace other social efforts anytime in the near future.

For example, there are limitations placed on Google+ Pages right now regarding promotions and contests. Specifically, the inability to host any promotions or competitions directly on Google+ Pages may actually end up driving more promotional traffic to Facebook. This is further made likely by Facebook’s own policy requiring that contests running on its site be hosted there.

The threat to the existence of Google can’t be understated. How real is this threat? Google certainly feels confident that it owns the internet and mobile web based on current platform dominance. But it should remember that it’s benefited from disruptive shifts in technology and user behavior.

For mobile specifically, this threat is embodied not only in Siri, which we know Google fears, but also potentially in Windows Phone. From a user experience perspective, Windows Phone represents a paradigm shift. Flameouts show how a dominant position can be compromised by complacency and failure to shift product strategy to reflect evolving tastes.

What further increases this risk for Google is that TV online advertising rates are on track to return to prerecession levels, while the overall ad industry is still below 2007 spending levels. While 2012 will see the growth of online ad spending surpass TV (11 percent growth versus 7 percent growth), brand advertisers are still spending more on TV. With more and more ads driving traffic directly to Facebook in search of deeper engagement, we see yet another strong channel that bypasses search-driven web use, even websites, entirely.

While I’ll be the first to admit that speculation on Google’s ultimate demise may be a bit premature, it does lead to some questions about what this all means in the short term. While Google+ will most likely have to be part of your overall search marketing consideration set, it’s a nonstarter from a social platform or deeper engagement perspective. Plans should reflect that. Google’s impulsive product strategy should also pause brands when considering how much effort to expend on Google+ as a whole. What it’s already shown us with the recent product cancellations and refocusing is that on Larry Page’s watch, anything is possible.

3 Ways Social Communities and Engagement Will Redefine Marketing

The growth of social media provides many new opportunities for brands, including the ability to identify best customers and influencers, and to actively engage those influencers to grow brand advocacy and community. Naturally, it’s this prospect that’s helped fuel the enormous growth in spending across and within key social communities like Facebook, YouTube and more.

The growth of social media provides many new opportunities for brands, including the ability to identify best customers and influencers, and to actively engage those influencers to grow brand advocacy and community. Naturally, it’s this prospect that’s helped fuel the enormous growth in spending across and within key social communities like Facebook, YouTube and more.

But as always, marketers have been pressured to do more with less, particularly in today’s tough economy. That means even more pressure to track and measure marketing program success. For many marketers that success is increasingly defined by engagement and the ability to measure its value and impact on the brand. But what’s the value of engagement?

One of the best studies I’ve seen on this front was conducted by Aite Group. The study looked at the relationship between Generation Y and their banks. It dove into how the level of engagement impacted loyalty, influence, advocacy and sales. Specifically, Aite Group found that highly engaged Gen Yers are significantly more likely to use their debit cards, pay their bills online and receive email.

These users were also more than 3.4 times more likely to use their bank’s website and social networks to research products. Additionally, highly engaged Gen Yers were found to be high-value customers. Specifically, they were 86 percent more likely to open new accounts, 73 percent more likely to recommend their bank and 62 percent more likely to trust their bank.

While the value of engagement is likely to vary by industry and brand, one thing is certain: Social engagement is an important component to add to your integrated marketing tracking and it will have a profound effect on the way you plan, target, execute and measure marketing for many years to come. Here are some of the most important changes you’ll see as a result of realizing the enormous value of catering to highly engaged consumers who use social media and influence others:

1. Media mix allocation tools and research will include social channels. Social will take its rightful place in the marketing toolbox as media mix allocation tools and research include social media platforms and networks as viable options. Business goals, target audience, product type and targeting approach (e.g., geographic, behavioral, contextual) will be re-examined to help marketers prioritize and allocate budgets to appropriate channels, including social — e.g., when a new product launches.

More ambitious marketers will embark on customer research projects to customize these findings for their specific products and targets — i.e., prospects and customers — as social formally joins the budget and planning process.

2. Engagement filtering and targeting capabilities will emerge. The emergence and importance of engagement combined with the growth and increasing activity across social networks and communities will redefine how, who and when you target. You’ll see the emergence of next generation query tools that will allow brands to select and target consumers by applying channel and engagement weightings and filters based on the program or campaign objectives and goals. Highly engaged users will be tapped more aggressively to help launch new products and drive product adoption and sales across the social web.

3. Marketing plans and roll-out strategies will be reinvented. Product launch cycles will continue to be impacted by social channels and emerging technologies. Marketers will become better at not only identifying key influencers and highly engaged users across their respective communities, but also crafting more targeted messages to these audiences to encourage the desired behavior.

As a result, new product launches will be supported by a more formalized and sophisticated roll-out plan. Imagine a world where a new product launch will include a phased rollout. Phase one would include a roll out to key influencers where ideas are exchanged, feedback is collected and enhancements/revisions are made. Phase two would include a soft launch to loyalty or highly engaged users as advocacy and product education continues. Lastly, phase three would include a general or mass market-supported rollout. Communications and tactics within each of these audiences will also be customized to include various communication stages such as education, trial and feedback, and, hopefully, purchasing followed by advocacy.

There’s little doubt the emergence of social media and growth of social brand communities has impacted marketing as we know it. However, bigger changes are in store for marketers as communities occupy an increasing role and influence in the success of brands. This radical sea change requires new thinking and processes.

Marketers who can connect the dots by embracing these new channels and tying social interactions (i.e., engagement) to traditional CRM systems will be a step ahead. However, the real winners will be those that can leverage that data by implementing new strategies and tactics to support the social web and grow brand advocacy and marketing success.