1. Customer engagement summary
Not just purchase behaviour
An intimate, long-term relationship with customers with cognitive, behavioural and emotional dimensions
Is co-created
A cycle or ‘process’ with different stages which can be tracked and measured
A science made accessible by technology
Needs to be ethical
is customer focused
Interested in tracking emotional engagement as well as cognitive

2. ‘considered to be behavioural manifestations towards the brand or firm that go beyond transactions’
(Verhoef et al 2011)
Not just interested in what customers buy from you but how they might be engaged to help you develop the brand

3. Russian tech startup Synqera is touting a system
that combines emotion or facial recognition with Big Data to personalize experiences for retail customers. It’s currently working with local cosmetics chain Ulybka Radugi on a test that combines emotion recognition via cameras installed at checkout with existing data (from loyalty cards, basket contents, etc.). As an example, a Synqera spokesperson told Time that if woman isn’t smiling and the system sees that she often buys body care products, at checkout the screen may suggest a relaxing body oil or another pampering product, display a funny image, or offer a bonus or discount.

4. Service Dominant logic (SDL)
SDL views customers as proactive cocreators rather than passive receivers of value and views companies as facilitators of the value cocreation process rather than producers of standardised value
(Payne Storbacka and Frow 2008)

5. Active Participants (Co-creators of value)
The traditional view of marketing
Passive
Receptors
To be
Segmented
Researched
Promoted to
Targeted
customers
organisations
exchange
Goods…services…experiences
The service-dominant logic (V&L)
Active
Participants
(Co-creators
of value)
‘embracing S-D logic motivates one to view marketing differently’
‘S-D logic might be a candidate for the foundation for a paradigmatic shift in marketing’..but at present does not meet criteria..’
‘A reorientation rather than reinvention’
A new conceptual lens through which to view the exchange process at the heart of marketing
Harold Maynard award for best paper Journal of Marketing (2004)
Edited book: Lusch and Vargo (2006) contibutions from Levy, Day, Webster, Kotler etc.. ‘The service dominant logic of marketing: Dialog, debate and Directions’
Special edition Journal of Academy of Marketing Science 2007
customers
organisations
exchange
Application of specialist
SKILLS AND KNOWLEDGE
Operant v operand resources are
the source of competitive advantage and differentiation
i.e PEOPLE

6. The Service Dominant logic
Harold Maynard award for best paper Journal of Marketing (2004)
Edited book: Lusch and Vargo (2006) contributions from Levy, Day, Webster, Kotler etc.. ‘The service dominant logic of marketing: Dialog, debate and Directions’
See for publications and awards
Good update Journal of the Academy of marketing Science 2015 ‘institutions and axioms: an extension and update of S-D logic
Jom top marketing journal along with Journal of consumer research and Int journal of research in marketing 3*
Sydney levy. George day,

7. Engaged customers become partners who collaborate with sellers in the value adding process to better satisfy their needs as well as the needs of other customers
(Sashi 2012)

8. The customer engagement cycle
connection
interaction
satisfaction
retention
commitment
advocacy
engagement
The customer
engagement
cycle
Adapted from Sashi (2012)

9. Customer engagement summary
Not just purchase behaviour
An intimate, long-term relationship with customers with cognitive, behavioural and emotional dimensions
Is co-created
A cycle or ‘process’ with different stages which can be tracked and measured
A science made accessible by technology
Interested in tracking emotional engagement as well as cognitive

10. (social media analysis and response tool)
SMART
(social media analysis and response tool)

11. Customer engagement summary
Not just purchase behaviour
An intimate, long-term relationship with customers with cognitive, behavioural and emotional dimensions
Is co-created
A cycle or ‘process’ with different stages which can be tracked and measured
A science made accessible by technology
Needs to be ethical
Interested in tracking emotional engagement as well as cognitive

12. Customer engagement summary
Not just purchase behaviour
An intimate, long-term relationship with customers with cognitive, behavioural and emotional dimensions
Is co-created
A cycle or ‘process’ with different stages which can be tracked and measured
A science made accessible by technology
Needs to be ethical
is customer focused
Interested in tracking emotional engagement as well as cognitive

13. ‘Customer Engagement (CE) is a psychological state
that occurs by virtue of interactive, co-creative
customer experiences with a focal agent/object (e.g. brand)
in focal relationships’
(Brodie et al 2011)

14. Engagement strategies use by retailers

15. Retail sales represent around 20% of UK GDP
More than one third of consumer spending goes through shops
According to figures produced by British Retail consortium (click) (the trade association which represents the interests of around 200 of the key retail companies Tesco, Sainsbury, Ocado etc..) (Click)
It would appear that Napoleons was justified in characterising us as a nation of shopkeepers. Retailing is undeniably a large and fertile ground for research…
However, there is another reason why I have spent the past 25 years as an academic conducting research in this area. Basically I love shopping and more specifically spending time in shops observing the behaviour of my fellow shoppers. (click)
Retail sales represent around
20% of UK GDP

16. Personalised targeting
Marketing activity
Personalised targeting
Internet shopping
connection
interaction
satisfaction
retention
commitment
advocacy
engagement
lead users
Social networking
communities
Enticing Stores
and theatrical
experiences
Self-service
technologies
crowdsourcing
Instant feedback
Adapted from Sashi (2012)
Loyalty cards

17. The challenges
The objectives of specific engagement strategies are often poorly defined and difficult to measure
Employees are not considered
Lack of understanding of consumer motives for engagement (or lack of)

18. The customer engagement
Framework for MSc Contemporary Perspectives in Customer Engagement
Organisation and Environmental Context
Connection and Interaction
Satisfaction and retention
Commitment and advocacy
Employee participation
The customer engagement
cycle
Customer participation
Key customer engagement activities: Adapted from the Customer Engagement Cycle (Sashi 2012)
Factors influencing success of activities

19. The Experience Economy
11/21/2017
Pine and Gilmore (2000)
The Experience Economy
Experiences are a 4th economic offering, as distinct from services as services are from goods’
‘Companies ‘stage’ experiences whenever they engage customers, connecting with them in a personal, memorable way’
Just as predicted by Pine and Gilmore

20. The ‘Experience’ Economy The progression of economic value
11/21/2017
The ‘Experience’ Economy The progression of economic value
Stage experiences
Relevant to
differentiated
Deliver services
Needs of
customer
Competitive
Position
Make goods
Moved from extracting commodities to staging experiences..as we do so our offer becomes more focused on customer needs, differentiates us more obviously from the competition and enables us to charge a premium price at the same time..a marketers dream scenario
My childs birthday cake illustrates nicely…need birthday cake for Katie..not so long ago would have said..
Extract Commodities
Irrelevant to
undifferentiated
Market
Pricing
Premium
Pine and Gilmore

21. Service experiences are..
Intangible…high risk

22. Service experiences are..
Intangible…high risk
Heterogeneous…variable quality
Perishable….bargains
Inseparable….customer involvement
Complex
Growing in significance ( as a % of consumer spending)

23. FAST TRACK International (20/30)
Global Energy Group: Energy services provider
Pharmarama International Clinical trials supplier
Hurleypalmerflatt: Engineering consultancy
The A & A Group :Insurance intermediary
Aedas Architects: Architectural services provider
Expense Reduction Analysts: Management consultant franchisor
IT Human Resources: IT recruitment agency
Petrolic Consultants: Engineering recruitment agency
ES Group: Event services provider
World Trade Group :Events organiser
Rico Logistics Logistic services provider
Elmwood Design: Brand design consultancy
Wind Prospect: Wind energy developer
NOM (UK):Industrial procurement agency
Benoy: Architect & designer

24. Service experiences are..
Intangible…high risk
Heterogeneous…variable quality
Perishable….bargains
Inseparable….customer involvement
Complex
Growing in significance ( as a % of consumer spending)
Need to be managed differently (the services/experience mix)

25. The ‘extended’ services marketing mix
P eople P hysical evidence P rocess(es)

26. A New Era of Experience Branding
Customer Experience is the New Branding
Omnichannel is Everything
Experiences Must be Re-humanised
Knowledge Management Ensures Success
UK Plc is Being Outperformed Globally
Source: Customer Experience Excellence Centre 2015 UK Analysis Tim Knight, David Conway & Tamsin Jenkins

27. Increase acquisition, via advocacy Create long-term shareholder value
The Six Pillars™
The Six Pillars™ are the universal characteristics of all brilliant customer experiences. Strong performance across all six is shown to:
Increase acquisition, via advocacy
Create long-term shareholder value
Guarantee a market leading customer experience ranking
The Six Pillars™ is a way of unlocking these benefits. It enables KPMG Nunwood clients to integrate cutting-edge, international best practice into their businesses.

28. Six Pillars of Customer Experience Excellence (Nunwood KPMG)
11/21/2017
Six Pillars of Customer Experience Excellence (Nunwood KPMG)
Personalisation
Using individualised attention to drive an emotional connection.
Expectations
Managing, meeting and exceeding customer expectations.
Empathy
Achieving an understanding of the customer’s circumstances to drive deep rapport.
Time and Effort
Minimising customer effort and creating frictionless processes.
Resolution
Turning a poor experience into a great one.
Integrity
Being trustworthy and engendering trust.
6 pillars of CEE
1. Personalisation: (arguably biggest drive) golden rules: greet me, show me you know me; recognise our history together; make me competent, surprise me with something relevant; (amazon) understand my needs and circumstances; individualise what we do. Examples: Carphone warehouse: pinpoint tech talk through needs in store. Nordstom they end you 2 pieces of clothing they think you like
2. Expectations. Set them accurately, expectations around timings are particularly influential, agree them with me, use plain English, fulfil or exceed promises, provide information good example ao.com
3. Valuing time: make my time pleasurable, map where they want to spend time (don’t just look from process point of view, give me clear instructions, no longer than 2 minutes to wait, maximum of three steps to meet objective, provide answers I need when I contact you, advise me of pitfalls ahead e.g. leek building society. ASOS screen showing 6 routes to return. Customer focused
4. Integrity: start from why: Simon Sineks golden circle: stand for something more than profit; demonstrably act in my best interest; show concern for me as a person; do what you say you will; keep me informed; be competent; be likeable and competent. E.g. babydeli
5. Empathy: invest time to listen to customer, provide the most emotional response, share your similar experiences; treat me as priority; take ownership of my issue, show you care.g USAA insurance
6. Resolution: (link to CES) assume my innocence, a warm and sincere apology; own the resolution; surprise me in how well you fix my issue, go the extra mile if required, give me the options moving forward e.g. jetblue. See complaints as a customer service hothouse! They recommend root cause and analysis. They develop new things from their complaints