Increasing Customer Engagement #1

We have been working with companies, many of which are airports. They often ask “what should we do to encourage customer spending?” The answer in most cases is for them to embrace a “Customer Engagement Model” with a view to ‘Win through Customer Knowledge’.

We find most companies implement tactical marketing plans as a means to increase revenues. Unfortunately, their efforts are hampered by a lack of any customer relationships. Companies need to create their own strategic advantage, through enhancement of their customer’s experience, with a goal to increase customer spend. This is the 1st of a series of six articles which outlines a roadmap for companies to embrace a “Customer Engagement Model” for increasing customer engagement.

Step 1: Attract, Acquire & Recognize

oRetlsx1Companies and their customers operate in real-time. Customers do so to the extent of their own personal TLC (time, location and context). In order for a company to establish a dialogue with their customers, there is one critical process that must be initiated – that of ‘engagement’.

Acquiring and keeping customers requires new thinking. The mindset that starts from a perspective of asking ‘what will it take to keep me as a customer’ is the only approach that seems likely to succeed in a market over-supplied with everything except time.

1-to-1, a term invented by Peppers & Rogers Group, offers will replace 1-to-many offers for all items and customers will shift, with ever greater speed, to permission marketing approaches, allowing only suppliers access in which they are personally interested. No excuses service levels and a rapid shift to adapt to fast changing consumer trends will be market threshold requirements.

To enable customers to communicate with the company, customers must be able to engage or “opt-in” to the communication process.

The characteristics of a successful engagement model consist of several discrete processes:

  • Enable enrollment of and grant access to customers who subscribe or if enrolled, successfully identify returning customers
  • Enable entry of customer preference profiles, related to their specific needs and store them in a secure and controlled database (CODB)
  • Enable customers to specify their choice of communication channel for distribution, acceptance and fulfillment of ‘value offers’ (customers define value)
  • Facilitate a Customer Experience Management program
  • Facilitate a tie-in loyalty program supporting customer retention