Thursday, February 14, 2013

Does Customer Engagement Really Matter?

"It’s easy to be put off by the apparent complexity of digital media, but success comes down to understanding people and behavior. If you can engage consumers and enhance their experience, you will build long-term business sustainability and value." -- Jez Frampton, Global Chief Executive, Interbrand


An Apparent Shift in Focus

Part of my fascination with IMC has stemmed from an apparent shift in focus from product to consumer. Now, campaigns must be consumer-driven and create engagement with a brand that cultivates a lasting loyal relationship. My professor, Beth McAlhany, said in class the other day, "People don't care about products. They care about what the product can do for them and what unmet need or problem the product solves." I couldn't agree more. We're backing away from traditional methods of advertising and marketing because they are no longer as effective as developing true consumer engagement. Don't worry if this sounds daunting, read on and let me explain. In this post, I will discuss the crucial value added by consumer engagement and offer a few different expert perspectives on the topic.

A Slippery Slope

According to Kenneth Clow, the author of Integrated Advertising, Promotion, and Marketing Communications, "Engaging consumers requires an entirely new, carefully integrated approach. Many new marketing efforts have been made to engage customers with the brand at every contact point as methods of building loyalty." In my opinion, Clow describes a very slippery slope where balance, consistency, and relevance are key. Companies must now consider how a consumer interacts with their brands on a multi-touchpoint level. I've grown up in the era of social media, a new technology that provides companies with the tools necessary to spread brand awareness, increase consumer engagement and loyalty, and show their true brand identity.

The Importance and Value of Two-Way Communication

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Clow also asserts, "Effective engagement provides an avenue for two-way communication." He couldn't be more right, and I can draw from an example that I experienced first-hand. My aunt, Michelle Charlesworth, is a news anchor on ABC. She constantly tweets about relevant brands she likes and her experiences with them. After tweeting at Chobani how satisfied she was with their Greek yogurt, the smart marketers at Chobani quickly replied to her tweet with a "Thank You!" and then went the extra mile and sent her a whole box of free Chobani in the mail. That's what I call consumer engagement and two-way communication! I think it takes a really savvy brand to not only respond to negative comments, but also remembering to reinforce and reward positive feedback. I was absolutely blown away by this story! And let's just say I switched from Fage to Chobani after that.

It's simple things like this that really exemplify the importance of a two-way conversation between brand and consumer, while also driving consumer engagement on the deepest level. 

Why the Shift?

Simply put by Hans Willems in his article Customer-Driven Online Engagement, "because the word 'market' connotes trade and revenue, it primarily tends to look at people as a possible source of revenue ('what can I get from you?' instead of 'what can we mutually offer each other?'). It is perhaps subtle, but striking nonetheless." Being customer-driven requires a completely different way of thinking, where the consumer is the starting point instead of the result. 

This concept is reinforced in an article I read a few months ago on Fast Company, 5 Ways to Build Brands in a Post-Digital World, "Consumer-created content and conversations are driving organizations' image, reputation and bottom line. This represents a significant shift in dynamic. As consumers become increasingly influential, businesses are becoming less powerful." I find this quote particularly interesting because of how much it rings true in today's advertising and marketing landscape. The customer has so much more power now than even just five years ago. We are entering a world of customization, increased customer loyalty, and accelerated ways to utilize the power of word of mouth. 

With all of that said, look for a future post regarding the phenomenon of customization! Hope everyone is having a happy Thursday!

3 comments:

  1. Your Chobani story is great! (so jealous, I love Chobani). This is a great example of how vital it is for companies to focus on strengthening one-to-one communication with their customers and building stronger relationships. Companies often take to social media platforms asking for feedback, input, or involvement in a campaign or contest in pursuit of customer engagement, but I think it is also important to recognize their loyal customers. Here, Chobani continued to build their relationship by recognizing customer satisfaction.

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  2. I really like the quote that you began this post with. Because social media has become such a commodity in today's world, many feel as though their messages will become lost amongst the mass amount of content that seems to be communicated each day. This is right, unless the marketer or brand manager can link a social media response to the foundation of human nature. Human nature is what drives purchases and brand recognition, after all. This explains why customers are inherently selfish and put their needs first. Who wouldn't when making a purchasing decision?

    Your Chobani story is not only a great example of active customer engagement but it also shows the power that word of mouth really has over the consumer market. Whenever you think of Chobani, you will probably reference the brand to this story for a very long time. You will think about the fact that someone you are close to enjoys the brand and these two factors combined will probably sway your loyalty to Chobani. It is the stories and moments that tie brands to the ultimate buying decision when placed in front of the shelves.

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  3. Following up on this post: my aunt actually sent me an email yesterday describing a positive experience with Blimpie (?!, yeah, I know) via Twitter. Evidently, my aunt tweeted about her satisfaction with their services/products and they sent her a hand written note thanking her for her kind words and a coupon to use at her next visit! Not only does this reinforce the idea of positive consumer engagement, it also keeps the loyal customers coming back again and again. Lots of brands constantly make the mistake of forgetting to reward their loyal followers that have been there through it all. I think Blimpie's efforts to reach out to their customers giving them positive feedback via Twitter (and probably other social media outlets as well) is an excellent strategy that will result in growth and prosperity of brand loyalty and positive perception.

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