Measuring Customer Engagement (Part 2)

In the first article of this series we discussed common characteristics of an engaged customer. In this article we'll look at measuring customer engagement.Measuring customer engagement is a process that begins with a clear objective followed by determining measurement metrics, then data gathering and of course, analysis and reporting.

Defining Engagement Measurement Goals

The goal is simple: Is what we are doing working?" Answering this question requires an examination of internal customer and financial data to profile the engagement characteristics of profitable, repeat (loyal) customers and compare them to customers that are less engaged.

Define the Metrics for Engagement

Examine the channels of customer involvement: POS, Website, Call centers, trials and demos etc. engaged customers utilize.  These channels, when measured, contain the data  points used for measuring customer engagement and present the frame work for establishing a measurement goal.  

To minimize the complexity of the measurement and to reduce the cost in dollars and time, less is more.  It is better to closely examine several key metrics than to inundate the analysts with reams of data from every touch point or interaction.

Gather the Data

For many companies data gathering possesses challenges related to data ownership and data reporting channels.  The specialized software and tools used to gather web analytics, marketing campaign management and loyalty club data typically belong to Marketing, while call center, agent analytics, IVR analytics and contact center platforms belong to operations or IT.  Consolidating this data for cross analysis with financial data is a keystone for successfully measuring customer engagement.ReportingIn the simplest sense, what to do with the information gleaned from a consolidated data analysis is straightforward: get the analysis into the hands of the decision makers.  But that is only half the reporting story.  The data must be fed back into the data pool for action by the various touch point channels in the form of recommended action so that, after implementation, the result of the action is compared with prior data to determine the efficacy of the change.  This process, repeating itself constantly, provides a substantial  customer engagement level and an engagement strategy success picture on an ongoing basis allowing for continuous adjustment to maximize return on the engagement strategy investment.

Isn't There a Single System or Process?

If measuring customer engagement seems a bit convoluted and anything but straight forward it's because it is convoluted and anything but straightforward.

Some engagement metrics are extremely difficult to obtain and quantify.  On line data is much easier to capture than off line data.  It's not easy to capture data that isn't typically recorded; like time in store, number of items reviewed or compared on a shelf before a purchase decision, etc.  It is also difficult to correlate some data types to a specific customer.  Anonymous data such as that obtained from surveys, cash purchases or web site visits do little to enhance the customer engagement profile.There is no single methodology or formula to plug into your business model to measure customer engagement. The complexity of measurement requires individualized, company wide programs tailored to fit the needs of your business.

*****Knowing the profile of an engaged customer in your organization and having the ability to measure customer engagement are but two of the three legs required to successfully create fully engaged, loyal and repeat customers. The third leg is creating a customer engagement culture, bottom-to-top, top-to-bottom, so that your customers are effectively engaged at every stage of interaction with your company, before, during and after the sale, and the next sale and the next....The final post in this discussion explores some prevalent methods for creating a culture well suited to customer engagement.