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Executive Primer

Introducing
the Customer
Engagement Cycle
Operational capabilities of integrated marketing technologies
Engagement Cycle technologies addressed
• Multichannel analytics
• Messaging and personalization platform
• Voice-of-customer content analytics
• Content planning and optimization
• Multimodal content management
• Process orchestration platforms and partners
• Customer engagement objects
• Information maturity model for customer engagement
• Process maturities for four engagement cycle technologies

developed in collaboration with

licensed for worldwide distribution

Excerpted from the 56-page Executive White Paper:
Orchestrating the Technologies and Processes of the Customer Engagement Cycle
Strategic roadmap for integrating traditional and online marketing and customer service with multichannel
analytics, multimodal content, and analysis-driven email messaging

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Who helped produce this white paper? Who is GISTICS? Introducing
the Customer
Engagement Cycle

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AUTHOR THINK TANK FOR EARLY-STAGE MARKETS
Michael Moon
President, CEO
GISTICS constitutes a think tank that speeds the GISTICS drives the emergence of shared vocabularies,
GISTICS Incorporated adoption of new technology and disruptive innovations the adoption of effective problem-determination methods,
moon@gistics.com among enterprises and consumers. Founded in 1987, and the development of unassailable investment analyses
GISTICS Incorporated minimizes the risk of potential that justify purchases of new technologies or disruptive
DESIGN, LAYOUT, EDITING, buyers through the following: innovations.
PRODUCTION • Interviews with successful early adopters of new GISTICS attracts early adopters and pace setting
LIANNE MUELLER technologies solutioneers, demonstrating how they can use new
Art Director • Definition of the critical success patterns of technologies or disruptive innovations to make money by
Fly Design Media successful early adopters
lianne@flydesignmedia.com
delivering new complex, integrated solutions to enterprise
• Activity-based analyses of adoption benefits on or consumer clients.
iris alroy supply chains, workflows, and user activities GISTICS develops breakthrough market-making
Production Artist
GISTICS Incorporated
• Visual explanations of how new technologies strategies for vendors of new technologies or disruptive
research@gistics.com produce economic value innovations, using industry thought leadership, executive
• Investment analyses that justify the purchase of white papers, Webcasts, specialized Web sites, and a
Kathleen McFadden
kmcfadden@writetools.com
new technical systems global trust network of advanced project managers within
• Project roadmaps that break down large-scale large enterprises, independent consultants, and small
organizational changes into smaller two-week to master-class solution providers.
two-month projects
• Practitioner portals that clarify the next steps in
rapid deployment and payback
• Certified consultants that provide essential skills
and resources

G i s tic s h e l p s e n d - u s e f i r m s h a r n e s s n e w tec h n o l ogie s a n d
di s r u ptive i n n ovatio n s
MAJOR LAUNCH: Products, Campaigns, Partnerships, Business Models

V a l u e - C r e a t i o n P r o c e s s

Offer—market Demand Sales Satisfaction Strategic
development creation conversion fulfillment development

gist \’jist\ n -s [AF, it lies (said of a legal
action), fr. MF, 3d pers. sing. pres. indic.
of gesir to lie, fr. L jacére to lie, fr. jacere Concept Market Primary Market Aftermarket
to throw — more at jet (to spout)] 1: the
ground or foundation of a legal action
without which it would not be sustain-
able 2: the main point or material part
(as of a question or debate) : the pith of
a matter : essence (the ~ of a question)
Market-making Scenarios

<the ~ of all that can be said upon the
matter—R. L. Stevenson>
T1 Market-making scenario 1
—Webster’s Third New International
Dictionary Unabridged
C o l l a b o r a t i v e S o l u t i o n e e r i n g

GISTICS Incorporated
T2 Market-making scenario 2 Cycle time gain
4171 Piedmont Avenue, Suite 210
Oakland CA 94611 USA Necessary Conditions Strategic Value
www.gistics.com
+1.510.450.9999 tel • Rationalized market and definitive • Leadership positioning in the market
+1.510.450.0954 fax business case • Advantaged category definitions
• Differentiated value propositions • Growing perception as the dominant
©2009 GISTICS Incorporated. All rights • Completed satisfaction-fulfillment “gorilla”
reserved. Printed in the U.S.A. methodologies • New “green field” markets and
GISTICS and its agents have used their • Testimonials of early adopters revenue streams
best efforts in collecting and preparing • Network of certified consulting • Loyalty lock-ins of category-defining
information published in this white paper solutioneers marquee accounts
Introducing the Customer Engagement • Thought-leadership Web destination
Cycle.
GISTICS does not assume, and hereby dis- MarketMakingScenarios.A.1.4 © 2007 GISTICS All rights reserved.
claims, any liability for any loss or dam-
age caused by errors and omissions in GISTICS reduces the organizational and market barriers to the adoption of new technologies or disruptive innovations,
this white paper, whether such errors or publishing a variety of papers, presentations, and Web sites that explain how to realize the economic and social value of new
such omissions resulted from negligence,
accident, or other causes. technologies or disruptive innovations in a variety of organizations.
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2 GISTICS executive white paper
Introducing the Customer
Engagement Cycle
Operational capabilities of integrated marketing technologies

PAGE
CONTENTS//SECTIONS
4 Who helped produce this white paper?
5 What must guide all investments in new marketing technologies?
6 How do we define customer engagement?
7 How does a marketing operation engage customers?
8 What technologies support customer engagement?
9 What constitutes the customer engagement cycle, emphasizing seven phases by
which firms define and create engaging content?
10 What technologies provide the foundation for mastering the engagement cycle?
11 What comprises an information maturity model of customer engagement?
12 How do particular buyer reactions to content produce behavioral data, emphasizing a
progression of data collection activities?
13 What comprise the process-maturity phases of multichannel marketing analytics, an
example of one engagement-cycle process maturity?
14 How can an engagement maturity model clarify a firm’s next steps?
15 How will digital systems and self-directed customers drive organizational
transformation of marketing operations?
16 What constitutes a customer portfolio management firm, a new center of excellence
in the marketing supply chain that will replace traditional marketing agencies?
17 About GISTICS

ABSTRACT
This executive primer introduces the foundation concepts of customer engagement and related
technologies. We acknowledge the many innovation leaders and masterclass practitioners who
contributed to this primer and the larger executive white paper. In particular, we thank the
executives of Alterian for their support and sponsorship.
Introducing
Who helped produce this white paper? the Customer
Engagement Cycle

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GISTICS acknowledges the following individuals and their organizations for help making this paper possible.

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
In most cases, Michael Moon of GISTICS conducted a one-hour interview.
STRATEGIC MARKETING Sherra Pierre-March, CEO, VISION INFORMATION TECHNOLOGY
Shrikant Pathak, Practice Director, TCS MUMBAI
Anssi Vanjoki, CMO, NOKIA (Finland) Anand Narayanan, Director, TCS AMERICA
Frans Cornelius, CMO, RANDSTAD HOLDING (NL) John Dubrawski, Business Development, TCS AMERICA
Jason McNamara, CEO, ST. CROIX IP Gunar Pinikus, Product Manager, ADOBE
Jeff Martin, CEO, TRIBAL BRANDS Jim Cuff, VP, IRON MOUNTAIN
Terry White, Chief Innovation Officer, AMWAY (Japan) Robert Yamashita, Principal, COGENTIC
Viveka Leskell, VP, New Media, FORTUM (Sweden) Shah Karim, CEO, INTEGRATED SOFTWARE
Scott Pellicone, VP, Business, QUEBECOR
ENGAGEMENT CYCLE DEFINITION Vincent di Paolo, CEO, MOKSA
Bob Barker, VP, Corporate Marketing, ALTERIAN
Michael Fisher, VP, North American Operations, ALTERIAN TECHNOLOGIES OF THE ENGAGEMENT CYCLE:
Mike Talbot, CTO, ALTERIAN MULTI-CHANNEL ANALYTICS
CUSTOMER ENGAGEMENT Andrew Gregory, Director, ONSTREAM MEDIA
Bob Kennedy, Sales Director, TEALEAF TECHNOLOGIES
Matthew Eccles, Consultant
Trae Clevenger, VP, Analytics, TARGETBASE
Sharad Verma, Managing Director, DIGITAL CEMENT
Mike Beckerle, CTO, OCO SYSTEMS
John Hingley, CEO, ANDIAMO SYSTEMS
MARKETING OPERATIONS
Beth Wiesner and Shawn Mielke, Partners, MTS MESSAGING EXECUTION AND PROVISIONING
BJ Gray, MRM Specialist, VICTORIA’s SECRET
Bob Hale, VP, Product Management, ALTERIAN
Gary Katz, CEO, MARKETING OPERATIONS PARTNERS
Joe Stanhope, VP, Product Management, ALTERIAN
Laura Patterson, VISION EDGE CONSULTING
Mary Yurkovic, DAM Manager, PLAYBOY ENTERPRISES Multimodal WEB CONTENT MANAGEMENT
Subhankar Bhattacharya, Principal, HCL (India)
Ian Truscott, VP, WCM, ALTERIAN
SALES OPERATIONS Bob Nuelle, Director, Technical Services, ONSTREAM
Jon Fox, CEO, GROUP SMARTS
Charlie Caldwell, CEO, NEXT QUARTER
Bruce Froelich, CEO, INFORMETRON PROCESS ORCHESTRATION
Inna Proshkina, VP, INVISIBLE CRM
Robert Markham, Chief Strategy Office, nTARA Bailey Caldwell, VP, PAXONIX
Neil Owen, COO, nTARA Gary Brooks, Director, ALTERIAN
Jeff Morris, CTO, nTARA Eric Hoffert, CEO, SHAREMETHODS
Ismael Ghalimi, CEO, INTALIO
ORGANIZATIONAL TRANSFORMATION Edward Sulivan, CEO, ARIA SYSTEMS
Mike Beckerle, CTO, OCO SYSTEMS
Dennis Pannuto, CEO, AHA! INSIGHT TECHNOLOGIES
Raju Vegesba, Evangelist, ZOHO
Frank van Olst, Practice Lead, NYKAMP-NYBOER (NL)
Gary Hare, Dean, School of Media Psychology, FIELDING INSTITUTE SOCIAL MARKETING
Hanna-Maija Nyberg, Practice Lead, TALENT PARTNERS
Skiff Wager, CEO, SEW CONSULTING Igor Beuker, CEO, SOCIALMEDIA8
Tom Marine, Director, CENTRAL RESTAURANTS Rudy Thurston, COO, OMNIFUSE
Daniel Coffeen, CEO, ART AND CULTURE
GLOBAL MARKETING SUPPLY-CHAIn MANAGEMENT Henry Hon, CEO, VYEW
Mat Atkinson, CEO, PROOFHQ
Alexandre Hadade, Partner, ARIZONA (Brazil)
Bob Goldstein, CEO, APEER
Allan Linden, GLOBAL MARKETING CONSULTANT
Sri Chilukuri, CEO, CONTENT CIRCLES
Nic Lund, Programme Manager, DIAGEO (UK)
Julia Grinham, VP, Marketing, COGENZ (UK)
Geert Wirtjes, CEO, GYPE LTD (NL)
Jan Jacob Koomen, Director, ADNOVATE (NL) DIGITAL ASSET MANAGEMENT
Kevin Freedman, MD, FREEDMAN INTERNATIONAL (UK)
Matthew Gonnering, VP, Marketing, WIDEN ENTERPRISES Aaron Holm, CTO, INDUSTRIAL COLOR
Rens Pel, VP, Marketing Operations, PHILIPS(NL) Allan Adler, VP, UBISOFT
Bill Sheeran, CTO, CLEARSTORY
CONTENT SUPPLY-CHAIN MANAGEMENT Chris Glynne, CEO, BOLD VISIONS
David Diamond, Director, Publications, CANTO
Abby de Millo, Sr. Dir. Content Management Technology,
James Kober, VP, Advertising Operations, NEWSDAY
MCGRAW-HILL BUSINESS INFORMATION GROUP
Linda Berman, CEO, LJ BERMAN ASSOCIATES
Andrew Salop, CEO, METASEED.net
Russ Littleson, MEDIA EQUATION (AU)
Bill Rosenblatt, CEO, GIANT STEPS
Rick McManus, Director, NINTENDO AMERICA
Carl Hixon, VP, DAM, MCGRAW-HILL EDUCATION
Ron Malloy, VP, General Manager, KODAK
David Bercovici, VP, HATCHETTE BOOK GROUP
Sam Moore, Director, N-GEN STUDIOS
Doug Liles, SGS INTERNATIONAL
Seth Earley, CEO, EARLY ASSOCIATES
Sandeep Malhotra, Principal, Vertical Solutions, HCL (India)
Steve Sauder, CTO, NORTH PLAINS
Edward Altman, Practice Director, HCL (US)
Theresa Regli, Principal, CMS WATCH
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4 GISTICS executive white paper
Introducing
What must guide all investments in new marketing the Customer
Engagement Cycle
technologies?
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Customer Benefit The Web no longer comprises just another sales channel;
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

the application of channel strategy to the Web’s business
In the now infamous remarks by Peter Drucker, “The ecosystem will annoy and disaffiliate the very firms that
firm has no other purpose than to earn and keep the trust might otherwise contribute to the success of the firm with
of customers; only two things add value: innovation and an effective business ecosystem strategy.
marketing. All else is cost.”
Of the many things associated with the digital revolution Satisfaction within Social Networks
and now the social Web, one significant effect has begun to
rock both large and small firms: a new class of customers Customers buy desired satisfactions that they expect from a
now insists upon interacting with vendors via PC, mobile particular product or service.
devices, kiosks, and other online systems. Time to satisfaction defines the key metric for the
In turn, interactive self-service buyers and customers quality of innovation and effectiveness of marketing.
demand that their preferred vendors, marketing operations Time to satisfaction constitutes the primary
in particular, provision online services and self-service measurement of customer engagement. This enables
applications. marketing and engagement planners to work backwards,
This means that marketing and innovation—the two asking the question, “What can we do to reduce or eliminate
value drivers identified by Drucker—have begun to merge, the forces hindering the satisfaction of ideal customers?”
becoming indistinguishable and essentially fused into an Clearly, a valued innovation must satisfy customers.
alloy of self-service customer satisfaction. However, today the social network of friends and colleagues
The figure below depicts several implications of these of the customer plays a large and growing role in the
remarks by Peter Drucker and their logical extensions. experience or perception of satisfaction among customers.
Marketing and engagement planners must expand
Innovation within Business Ecosystems their messaging to address the social networks that now
Innovation represents an invention or new way of doing filter, process, and reinterpret brand offerings and value
things that adds distinctive value to the customer’s propositions.
experience. In practical terms, this means that marketing and
Time to market defines the key metric for innovation; engagement planners must connect, inform, entertain, and
getting more quickly to market with what customers enable sharing within small peer groups and social cliques,
recognize and want creates more value for the vendor: sales. using multiple formats (print, broadcast, online), sensory
However, something has changed. modalities (audio, visual, kinesthetic), and persuasion
Today, time-to-market success reflects how well the firm strategies (data, story, demonstration, word of mouth,
accesses the global resources of its business ecosystem: authoritative endorsement).
individuals, internal groups, and other firms that add value As customer engagement addresses the social networks
to innovation and to the marketing operations of a firm. affecting customer choice, marketing processes grow
more complex and difficult to orchestrate without new
operational capabilities that automation can provide.

co n s u m e r b e n e f it s h o u l d d r ive a l l i n ve s t m e n t s i n n e w m a r k eti n g tec h n o l og y

Social
Networks

Time to Market Time to Satisfaction
TTVMarketSatisfaction.1.0
© 2009 GISTICS All rights reserved.

Business
Ecosystem
All new investments in marketing should benefit the consumer. Time to satisfaction with certainty and trust define the baseline of customer benefit. Little else matters
in the eyes of the consumer.
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SERIE S//MANAGEMENT ADVISORY GISTICS 5
Introducing
How do we define customer engagement? the Customer
Engagement Cycle

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ENGAGEMENT MANTRA BRAND STORYTELLING

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Customer engagement constitutes a philosophy of brand- Every brand tells a story about the process of discovering,
marketing communications and customer interaction, considering, buying, and using a product or service.
emphasizing greater levels of collaboration in pre-sales and More notably, the figure also calls attention to two
post-sales phases among buyers and sellers. modes: corporate storytelling and advocate storytelling.
The philosophy of customer engagement entails a Companies promote their products or services, inducing
primary sequence for marketing communications: or persuading consumers to buy. However, in most
• Connect with the buyer or customer on an immediate, consumer societies, consumers instinctively discount or
visceral level, evoking an experience of liking or disliking ignore promotional pitches that do not connect with them
someone, a group, or a thing, as well as an empathetic as a human being, as an individual, and as a collaborator.
correspondence with a customer’s situation. A strong brand and effective engagement kick-starts the
• Inform the buyer or customer. Often this means second mode, advocate storytelling.
demonstrating the need for a new product, a better way
of doing things as compared to competitors; with success, SIMPLIFICATION OF BRAND STORIES
this elicits the experience of relief—a successful result of Most research of effective word-of-mouth marketing,
using a featured product or service. viral marketing, and customer advocacy reveals the brand
• Entertain the buyer, using humorous, horrific, or story and related value proposition often undergo a radical
seductive social situations; this reinforces deeper transformation: Advocates internalize the brand and, in the
cultural narratives (shared expectations or beliefs) while process of sharing it, make the brand and value proposition
dissipating any lingering fears associated with trying simple—with brutal concision.
something new. Success in this context creates a secret Brand simplification optimizes the brand for rapid, broad
or ironic insight that one must simply share!
diffusion in a larger market and culture. While the legal
• Share directs a call to action and encourages the buyer team cringes, brand and marketing managers celebrate with
or customer to forward a link, instant message, or sms a tag line (“Where’s the beef?” or “Got Milk?”) that hits a
a friend or colleague regarding a new find: “You want to deeper cultural narrative, or the corporate brand (“I’ll xerox
check this out!” The item shared represents a currency
it” or “Just google the word.”) becomes a transitive verb and
or token of affection; that enhances one’s reputation.
hallmark of productivity.
The Engagement Sequence may apply to any phase of Thus, customer engagement engages customers in a
the Brand-marketing Communcation process: awareness, larger conversation and, in the process, rounds off the sharp
involvement, trial, commitment, and referral. edges of shallow, inauthentic corporate “marketing speak”.
The figure to the right not only depicts the five phases
of a branded offering; the figure indicates that engagement-
sequence activities contribute to the overall brand
storytelling process, especially in advocate storytelling.

SUC C E SSFUL C UST O M ER EN G AGEMENT S ACT IVAT E ADV OCAT E ST ORYT ELLING

THE BRAND STORYTELLLING PROCESS
Corporate Storytelling Advocate Storytelling

PHASES OF BRAND-MARKETING COMMUNICATIONS

Product offering AWARENESS INVOLVEMENT TRIAL COMMITMENT REFERRAL

Interest Positioning Adoption Community
in a category

ENGAGEMENT SEQUENCE
Connect Inform Entertain Share
Brands tell stories; customer
• Immediate • Category of • Social context • Portable
engagement kick-starts need or desire
word-of-mouth marketing • Visceral • Humorous, horrific, • Currency of
• “Like”/”don’t like” • Positioning or seductive affection
and personal referrals
• Belonging • Differentiated • Cultural narrative • Facet of self
within social networks,
communities, and peerages • Relief • Cool • Reputation
EngagementDefined.A.1.0 ©2009 GISTICS, All rights reserved.
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6 GISTICS executive white paper
Introducing
How does a marketing operation engage customers? the Customer
Engagement Cycle

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OPERATIONAL CAPABILITIES DRIVING BRAND CONVERSION
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

All or most professional marketing executes a strategy for Brand Conversions of the model depicted below connote
how best to find and serve customers. traditional phases of the marketing process, reinterpreting
The ability to successfully execute strategy entails an two of the phases: facilitated buying and WOM agents.
operational capability of marketing: systems, processes, and Facilitated buying connotes the increasing role of social
accountabilities. networks, Web services, and self-directed buyers.
The figure below depicts a subset of a marketing WOM agents connote the potentially explosive potential
operation, highlighting the operational capabilities of of formal word-of-mouth (WOM) marketing programs and
customer engagement. the use of social agencies to find and deputize WOM agents.
The figure below also depicts a set of actors or resources
WEB-CENTRIC VIEW that can speed the brand-conversion process—systems and
Customer engagement spans “offline” marketing media and technologies of the engagement cycle and the principal focus
channels as well as online and mobile counterparts. of this paper.
However, customer engagement puts the Web and online,
interactive customer at the center of the entire enterprise. INTEGRATED MARKETING 2.0
Identification of Web User denotes the five operational The nearly exhausted but still useful moniker, 2.0, conveys
states of a customer database and, therefore, the operational an important facet of integrated marketing: The customer
capability to engage a buyer or customers in optimal ways. gets a say in what gets marketed to whom and how.
We will develop these largely self-evident definitions The bottom row in the figure below depicts a logical
elsewhere in this paper and companion website. next-step in customer-integrated marketing, suggesting that
The new term Customerized connotes a key operational traditional print and broadcast advertising and promotion
principle of customer engagement cycle, correlating now stand alongside new digital formats and services.
customer-provided preferences, product-mix optimizations,
and dynamic publishing of content services.
The term Certified connotes the formal registration of
the customers in an advocacy or beta-test pilots association.

C US T O M E R E N G A G E M E N T R E Q U I R E S R E S O UR C E S A N D C A P A B I L I T I E S FR O M MUL T I P L E P A R T I E S

STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration

IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified
BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5)

Stages of the Customer Engagement Life Cycle

Operational
Capability

Marketing Drivers of the Customer Engagement Life Cycle

Advertising, Brand Sites, Personalized Content/Service Certified Advocates,
KEY ACTORS DRIVING Direct Mail, Topical Microsites, Messaging, Mash-ups, Preference Viral Video Stash,
BRAND CONVERSIONS Promotions, Social Media, Remixable/Social Managers, and Policy- Collaboration and
AdWords, and Multichannel Content, and managed Processes Solutioneering
SEM and SEO Marketing Analytics Webcast Theaters Platforms
EngagementCapabilitiesModel.C.1.0 ©2009 GISTICS, All rights reserved.

The figure above depicts six operational capabilities of customer engagement; marketing operations will secure from engagement partners—agencies, service
each capability entails a set of systems, processes, and accountabilities that most providers, and specialist firms.
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SERIE S//MANAGEMENT ADVISORY GISTICS 7
What technologies support customer engagement? Introducing
the Customer
Engagement Cycle

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Operational Marketing In particular, many forward-thinking marketing

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
executives now realize that a combination of traditional
The term operational marketing defines the comprehensive promotion and search engine marketing (SEM) has become
integration of systems, databases, and processes of the more efficient: they need not spend as much money for
customer-making process. awareness, activation, and lead generation.
In all but small technical firms or clicks-only ecommerce Rather, the greater front-end efficiencies of what we
firms, few medium or large enterprises have achieved a level call the Google effect now compel a greater investment
of process integration—at least not yet. in the back-end efficiencies of sales conversion, customer
However, with the Web, software innovation, burgeoning retention, satisfaction assurance, and advocacy.
digital ecosystems, and larger portions of buyers and Operational marketing provides a framework for
customers doing business online, the integration of the integrating the various front-end and back-end activities of
customer-making process becomes more feasible for all the customer-making process, linking several previously
firms with each passing day. isolated systems and processes to a unified or federal
The figure below depicts several technical systems, governance scheme: crisp, clear roles, responsibilities, and
calling attention to their role in pre-sales and post-sales daily progress-status reporting.
activities of the customer-making process.

OPERATIONAL MARKETING EMPHASIZES INTEGRATION OF PRE-SALES AND POST-SALES ACTIVITIES
STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration

IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified
BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5)

GREATER

Affiliates and
Certified Consultants
VA L U E - A D D E D B Y C U S T O M E R L I F E C Y C L E S TA G E

Customer Insights

Voice of Customer
PRE-S
Contribution

Customer Master
E S
AL
ALES

S
T-
Operational CRM

O S
Broadcast and
Display Ads Sales CRM P

Social Marketing
Search Engine
Marketing
Social Media Monitoring

Content Optimization

E-Messaging

Opt-in Offers
Marketing Databases
LESSER

ENGAGEMENT CYCLE TECHNOLOGIES EngagementModelMOMTech.B.1.8 ©2009 GISTICS Incorporated, All rights reserved.

The Web and a global digital ecosystem enable large and small organizations to responsibilities, and daily progress-status reporting of all staff and affiliates involved in
integrate pre- and post-sales activities, using unified governance with clear roles, the customer-making process.

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8 GISTICS executive white paper
Introducing
What constitutes the customer engagement cycle, emphasizing the Customer
Engagement Cycle
seven phases by which firms define and create engaging content?

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ENGAGEMENT CYCLES CLOSED-LOOP FEEDBACK SYSTEM
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

Customers navigate the concentric rings of trust in their It then follows that the transit from awareness,
individual brandspaces (unique to each customer), arriving consideration, and trial to purchase, adoption, commitment,
at the brand engagement theaters of their trusted brands. and advocacy—stages of the brand lifecycle—comprise
What then ensues comprises the seven phases of the hundreds of discrete engagement cycles.
engagement cycle. The structured model below supports these key insights:
Brand engagement theaters constitute the first phase, • Faster engagement cycle times induce greater levels of
presenting content, navigation, presentation, and context. engagement.
User reactions may entail reading or viewing, clicking • Few defects in delivered content, navigation, and
through the next page or section, or exiting. Key point: Most presentation increase the probability of success.
visits exit for reasons unknown, a strategic breach that • Most defects occur unnoticed, leading engagement
engagement managers must address with session-monitoring managers to make the same mistakes again and again.
systems. • Automation and policy management of content
Behavioral data from most Web analytic systems provides workflows can reduce the number of defects.
useful but minimal insights into both anonymous unnamed
• Voice-of-customer systems provide critical insights as to
and named users. The next frontier of behavioral data will
what’s broken, missing, or needed.
include interaction data from inside immersive rich-media
streams and video, documenting where users went and what • Analytic insights and voice of customers must inform
content creation; this requires formal systems for
they did.
documenting content-user requirements.
Analytic insights include other sources of data: customer
databases, social media monitoring, voice of the customer, • Effective engagement requires governance: someone
and newer Web analytic tools. within the firm must step forward and take ownership of
the engagement cycle.
Content-user requirements specify what types of
“information food groups” particular high-value customer
segments prefer; providing these will require a formal
information consumption model and procedures for
directing content creators to produce required information,
matching user-consumption profiles to classes and types of
information and media formats.
Content optimization starts with semantic tagging of
Web pages and documents, creating topic
maps (similar to tag clouds, only specific s eve n s tage c y c l e c r eate s c u s to m e r i z ed co n te n t
to an individual page) and metadata sets
that later will power faceted search and
dynamic navigation.

1 2
BRANDSPACE
Contextualized content uses behavioral
Visitor
Creative Reaction
targeting, semantically tagged content
that enables dynamic composition of topic
• Unnamed Content
maps or page-specific tag clouds, faceted
• Named
in Context
Circles of Trust
navigation (dynamically constructed
keywords within a multitiered hierarchy
or taxonomy), and user account histories,

7 3
journals, and personal collections within Customerized Behavioral
the site. Content Data
Engagement
Cycle
6 Phases
4
Content Multichannel
Optimization or Analytic
Individualization EngagementCycleBasic.A.1.1 Insights
©2009 GISTICS Incorporated, All rights reserved.

5
Content
Governance and accountability of the engagement CONTENT Planning VOICE-OF-CUSTOMER
cycle define career opportunties leading to executive CREATION CONTENT ANALYSIS
management of marketing.

..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

SERIE S//MANAGEMENT ADVISORY GISTICS 9
Introducing
What technologies provide the foundation for mastering the the Customer
Engagement Cycle
engagement cycle?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

OPERATIONAL SUPPORT PLATFORM INTEGRATION OF LOOSELY COUPLED SYSTEMS

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Integration of the marketing operation starts with the Automation and, thus, faster cycle times and higher quality
assumption that all firms must find and serve customers, of the engagement cycle require more than technology.
engaging their customers throughout the process of Automation requires a technical integration architecture,
discovering, considering, buying, using, and disposing of adherence to open technical and process standards, and a
branded products (or terminating branded services). governance protocol.
In practical terms, managing the customer brand lifecycle A technical integration architecture represents a
through each of these phases will require new or improved comprehensive high-level visual depiction of all the digital
systems, new or reengineered processes, and newly defined process components or Web services that a marketing
or clarified accountabilities among management, staff, operation currently uses, plans to use, and might use
consultants, and trade partners (ad agencies, suppliers, etc.). over the next five years. Action point: Commission an
The figure below depicts four multielement systems accomplished digital business architect (former CIO) to
that provide the foundation for managing the engagement develop a CIO blueprint of your firm and its external
cycle—each system represents a subject that we examine business ecosystems. Hint: Don’t tell your current CIO
elsewhere in this paper and related sites. until you have completed your own blueprint!
Content Management comprises its own value chain, Do, however, understand and maintain adherence to the
consisting of Web content manager(s), text mining engines, IT service management standards and governance protocols
source-content XML repositories, multimedia editorial of your organization; deviate only at great peril.
production systems, multimedia DAM repositories, and
collaboration workspaces.
Multichannel Analytics combine traditional database
analytics with Web analytics, voice-of-customer insights,
and social media analytics, correlating hard-data insights
with customer lifecycle profiles and profit models.
Creative and Messaging
Collaboration Platform M A S T E RY O F E N G A G E M E N T C Y C L E S E N T A I L s T E C HN O L O G Y I N T E G R A T I O N
defines the principal work
of engagement planners
and managers, including

1 2
BRANDSPACE
creative services and Creative Reaction
on-demand software-as-a- Visitor
• Unnamed Content
service applications from • Named
in Context
trusted partners: ad agencies, Circles of Trust
marketing service providers,
promotional engagement
systems, etc.
Message Execution VISIONING A
Platforms incorporate all the PRO XECUTION ND

7 3
functions of high-capacity Customerized E Behavioral
newsletter and messaging Content Data
platforms, as well as dynamic
MU NALYT EL
LTIMODAL
AGEMENT

or on-the-fly personalization
A
MUONTENT

LTICHANN

of newsletters, rich-
media emails, immersive CUSTOMER
ENGAGEMENT

6 4
multimedia buying Content OBJECTS Multichannel
environments, dynamic
ICS

Optimization or Analytic
AN
C

configuration and pricing, Individualization Insights
M

and personal just-in-time,
just-for-me landing pages and
engagement theaters. CR D EATIVE AN
MESS ING
AG

Four multi element systems drive

5
the engagement cycle, demanding
CONTENT Content
that engagement directors and
CREATION Planning VOICE-OF-CUSTOMER
planners use a proven technology
CONTENT ANALYSIS
integration framework, standards,
EngagementCycleTechnologies.A.1.5
and governance. ©2009 GISTICS Incorporated, All rights reserved.

..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

10 GISTICS executive white paper
Introducing
What comprises an information maturity model of customer the Customer
Engagement Cycle
engagement?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

FUTURE ARRIVES UNEVENLY DISTRIBUTED PROCESS INTEGRATION REQUIRED
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

The operational capabilities of marketing, sales, and services Adaptive engagement entails the integration of systems,
will continue to undergo a rapid transformation. processes, and accountabilities of the engagement cycle,
The figure below depicts six basic operational enabling a marketing operation to align most of its activities
capabilities of integrated customer engagement. Each to engagement lifecycle goals.
operational capability represents a new configuration of This includes the ability to implement continuous,
systems, processes, and accountabilities of marketing ongoing improvements within the engagement cycle,
operations. The figure below also depicts five levels of using hard data to make fact-based decisions. Adaptive
operational and information maturity. engagement represents a vastly improved IT service
Operational maturities adopt the basic levels of a management infrastructure, emphasizing the need for an IT
management process-control framework (Lean Six Sigma, service integration model and roadmap—a CIO blueprint
CMMI) to the use of information as a strategic resource. depicting the logical collection of Web services of a service-
Information mavericks represent the creative and oriented architecture (SOA).
innovative individuals wielding personal power with a CIO Blueprints clarify how to source and provision
database or application, satisfying his or her needs with needed SOA-based Web services from corporate or
little accountability to the broader social network of the departmental IT operations and strategy partners (market
enterprise information users. service providers, agencies, and customer portfolio
Information silos represent the needs of a functional managers).
group (accounting, customer service) using information as a Policy-managed engagement represents an aspirational
operational tool, adopting information standards and tools futureproof of self-managing systems that rely on IT service
specific to the functional group and thus limiting access to policies to activate and manage the delivery of IT-based
their data by other enterprise users. engagement services.
Analysis-driven communications starts with an
enterprise focus, enabling an informed view of core
operations. This entails adoption of enterprise information
standards, information architectures, and data integration.
f i r m s m a n i f e s t di f f e r e n t i n f o r m atio n m at u r itie s b y ope r atio n a l capa b i l it y

OPERATIONAL MATURITY OPERATE CONSOLIDATE INTEGRATE OPTIMIZE ORCHESTRATE
Information Mavericks Information Silos Analysis-driven Adaptive Engagement Policy-managed
• Focus on the individual • Functional group focus Communication • Alignment/efficiency drives Engagement
• Information as personal power • Information = political power • Enterprise focus market leadership with • Leverage value chain in new
• No information standards • Departmental standards • Informed view of operations incremental improvement business areas
• Legacy information tools • Departmental tools • Enterprise standards and • Information to measure, align, • New markets, products and
• Personal productivity toolkits • Silos of information information architecture improve processes business models
• Little benefit to enterprise • Enterprise-wide info access • Fact-based decisions • Continuous innovation process
• Clear core business processes • Adaptive infrastructure • Prototyping ideas; driving best
and value chain to market

Standard Descriptive Predictive Real-time
INFORMATION MATURITY Just Data Reports Modeling Modeling Adapting
MONITOR (MNT)
Firm A
O P E R AT I O N A L CA PA B I L I T I E S O F I N T E G R AT E D M A R K E T I N G


• Aggregate marketspace activities
F U L L P R O C E S S I N T E G R AT I O N R E Q U I R E D

• Track patterns of engagement
• Model business performance


LISTEN (LST)
• Recalibrate listing tools
• Classify themes, sentiment, etc.
• Build dialog maps and frameworks


MESSAGE (MSG)
• Ideate themes, concepts, copy, etc.
• Create engagement assets
• Validate in private social networks


Media services CONTEXTUALIZE (CTX)
• Retrieve data and components
play a large role in • Assemble engagement objects
effective customer • Package for consumption


engagement,
EXECUTE (EXE)
enabling engagement • Stage for quality assurance
managers to create • Provision engagement objects
• Manage exceptions
unique and compelling
experiences for GOVERN (GVN)


• Measure efficiency and effectiveness
customers and • Monitor policies and deviations
partners. • Summarize activities and results

InformationMaturity.B.1.4 ©2009 GISTICS, All rights reserved.

..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

SERIE S//MANAGEMENT ADVISORY GISTICS 11
Introducing
How do particular buyer reactions to content produce the Customer
Engagement Cycle
behavioral data, emphasizing a progression of data collection activities?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

DATA INDICATING ENGAGEMENT ACROSS MANY TOUCHPOINTS MULTICHANNEL BEHAVIORAL DATA

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Customers connect (or do not connect) with brands and Data collection processes often comprise number of distinct
related value propositions, using many nonverbal, implicit, and often independently managed activities and systems.
or environmental cues. Behavioral data spans all phases of the customer
The real work of engagement begins and ends with engagement lifecycle, revealing new information about
creating an appropriate and natural social and market the buyer-seller relationship and the evolution of the
context in which to activate and engage customers. relationship into more stable and profitable states.
The figure below depicts two phases of the customer Multichannel customer identities indicate the need
engagement cycle: reaction and behavioral data. to compile and refine composite profiles of customers,
Reactions to creative content in context start with combining behavioral data with other types of data
awareness of a particular setting in the marketspace: a social (Web session data, customer data, subscriber data, and
context, a physical environment (including online), and certification data). Other data sources include syndicated
creative messaging (including image, text, motion graphics). consumer and lifestyle data, as well as voice-of-customer
A myriad of other factors may influence a buyer’s content analytics.
impulse or directed decision to proceed deeper in As we explain elsewhere in this paper, multichannel
shopping modalities. Other modalities not shown include behavioral data leads to new, emerging disciplines—
procurement, sourcing, and resupply. multichannel analytics and analysis-driven communications
and collaborations with customers.
.

NOTE: Visit www.alterian.com/engagement-orchestration and download the full white paper that explains the full
customer engagement cycle
R E A C T I O NS T O C O N T E N T C A N P R O D U C E D A T A I N D I C A T I N G T H E S T A T US O F A BUY E R I N T H E C US T O M E R
ENGAGEMENT LIFECYCLE

Reaction:
SHOPPING MODALITIES

• Notice or pass
• Understand or not
• Consider or dismiss

1 2
BRANDSPACE
Visitor
Creative Reaction • Futurepace a trial
Content
• Futureproof a relief
• Unnamed
• Named
in Context
Circles of Trust
• Viscerally commit

7 3
Customerized Behavioral
Reaction • Rationalize
Behavioral Data:
Content Data
CUSTOMER IDENTITIES

Engagement • Purchase
Cycle • Unknown stakeholders

6 Phases
4
Content Multichannel
— Web traffic
MULTI-CHANNEL

Optimization or Behavioral
Analytic
Data
Individualization Insights
— Floor traffic
• Known stakeholders
5 — Call center
Content
CONTENT Planning VOICE-OF-CUSTOMER
CREATION CONTENT ANALYSIS
— Named site users
• Profiled stakeholders

PHASES OF THE CUSTOMER ENGAGEMENT LIFE CYCLE
STATUS OF BRAND No awareness Awareness Consideration Trial Purchase Preference Commitment Repurchase Advocacy Collaboration

IDENTIFICATION OF WEB USER Unknown Known Profiled Customerized Certified
BRAND CONVERSIONS Lead generation (BC1) Facilitated Buying (BC2) Retention (BC3) Loyalty (BC4) WOM agents (BC5)
DATA COLLECTION WEB SESSION DATA USER DATA CUSTOMER DATA SUBSCRIBER DATA CERTIFICATION DATA
PROCESSES • Web IP address • Registration info • Purchases and returns • Categories of interest • Social network
• Session pages/time • Email opens/frequency • Service episodes/cases • Information preferences connections
(partial list) • Search event/keywords • Site loyalty/ • Wish and gift lists • Learning modalities • Reputation rank
consumption • Spheres of influence
EngagementCycle2-3Data.A.1.2 ©2009 GISTICS Incorporated, All rights reserved.

Each new advance in customer engagement enables marketers to collect more behavioral data from buyers at an expanding number of touchpoints in a marketspace.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

12 GISTICS executive white paper
What comprise the process-maturity phases of multichannel Introducing
the Customer
marketing analytics, an example of one engagement-cycle process maturity? Engagement Cycle

...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

EVOLUTION OF CUSTOMER ANALYTICS Predictive modeling tracks the drive towards faster, more
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

accurate estimates of performance results (key performance
The table below depicts six dimensions of a multichannel indicators of progress towards strategic objectives) and
analytics capability across five process-maturity phases: realization of future free cash flows and market leadership.
Data collection tracks the evolution in what types Measurement tracks the core operational capability
of information marketing organizations gather about of multichannel analytics: correlations of estimated or
customers. predicted results and actual results, including how to refine
Data management tracks the evolution of the data collection, data management, reporting, and predictive
development of information about customers as they transit modeling.
a customer engagement lifecycle. Infrastructure tracks the evolution of an information
Reporting tracks the drive towards real-time analytics factory supporting customer engagement, using dedicated
and dashboards—ways of orchestrating complex business high-performance environments within corporate network
processes and engagement systems for higher profits and operations or with external service providers.
retention rates.

P R O C E SS - m a T UR I T I E S O F MUL T I C H A NN E L A N A LY T I C S S P A N F I V E P H A S E S

PROCESS-MATURITY
PHASES 1 2 3 4 5
Static Data in Isolated “Silo-ed” Systems Dynamic, Integrated Data
Ad Hoc Managed Predictive Adaptive Anticipated
Data Collection Basic contact Enhanced Contact histories Email and direct Journaling of
information from customer data for key operational mail responses with behavioral and
mail lists file, using and tactical CRM transaction histories transaction data to
compiled or systems and subscriber customer master;
syndicated data preferences for dynamic links to all
sources information classes relevant enterprise
and fulfillment data sources and
MUL T I C H A NN E L A N A LY T I C S

external social media
and network profiles
R E Q U I R E D

Data Management Packaged RDBMS Periodic postal Persistent Real-time updates 360-degree view
and maintenance hygiene: identification and of customer across all product
OPE R AT IONAL CAPABILITIES OF

tools deliverability with requalification of masters; including lines, business units,
merge and purge stakeholder profiles changes of address, distribution channels,
of duplicates employment, and points of purchase or
credit lines service, and online
properties
P R O C E SS - I N T E G R A T I O N

Reporting Standard audit Campaign and Time-series Automated reports Real time dashboard
and output syndicated data program reports
reports reporting

Predictive None Recency, Regression Granular models Transactional
modeling frequency, and baselines for and rebuilds by processing for inbound
monetary (RFM) outbound direct or campaign communications
clustering and email campaigns
association

Measurement Basic counts Comprehensive Operational KPIs Marketing KPIs Return on investment
campaign and business model
FULL

statistics performance

Infrastructure Marketing KPIs Distributed Composite service/ Networked cloud
databases and model (on-premise services in IT
analytics servers and offsite partners) federalized service
management

TThe operational capabilities of multichannel analytics evolve in a slow, uneven GISTICS predicts the emergence of external customer portfolio management firms
manner, often requiring significant new capital outlays for new systems, development with digital services and a cadre of engagement specialists, charging their clients
of new processes, and the recruitment of specialized and scarce professionals. small management fees and earning a bulk of their profits from engagement results:
incremental sales, greater retention rates, and greater shares of wallets.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

SERIE S//MANAGEMENT ADVISORY GISTICS 13
Introducing
How can an engagement maturity model clarify a firm’s the Customer
Engagement Cycle
next steps?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Continuous Improvement Process Maturity Model for Engagement
Successful management of complex processes requires The table below depicts five levels of process maturity for
a management process-control framework. Many each of the four sets of engagement technologies.
organizations employ some form of quality controls. Most organizations will drive one of these sets further
Irrespective of a particular firm’s quality control protocol, than the rest.
all major and broadly adopted management process-control
frameworks embrace the idea of capability or process
maturity, typically defining five or six operating states.
NOTE: Denotes full process integration
P r oce s s Mat u r it y Mode l f o r E n gage m e n t
PROCESS-MATURITY
PHASES 1 2 3 4 5
Static or Isolated Data Dynamic and Integrated Data
Ad Hoc Managed Predictive Adaptive Anticipated
MULTICHANNEL ANALYTICS: SEGMENTATION, PROFITABILITY, PRICING, USER-CONTENT REQUIREMENTS, CONTENT OPTIMIZATION, METADATA-TAXONOMIES, ETC.
Isolated contact, Single customer view Enhanced customer Now includes Operational Behavioral data, online
prospect, and customer using internal data view with third-party and CRM system data data
Input sources databases; operational only; using business data; now using ad hoc
web analytics intelligence tools analysis and predictive
analytics tools
Marketing lists Pre-defined reporting Segmentation and Refined predictive models Refined predictive models
Process outputs Models
CREATIVE & MESSAGING COLLABORATION PLATFORM: CONCEPTS , CREATIVE, COPYWRITING, USER EXPERIENCE, INCENTIVES AND ENGAGEMENT PERSONAS
Manual creative Reuse and sharing of Template-based creative Object-based creative using Distributed creative based
Input sources services existing materials policies, business rules, and on taxonomies and visitor
segmentation strategies identification
Copy and concepts Consistency of Support for Dynamic distribution across Mass customization
informed by creative materials delivered personalization and online channels and devices
Process outputs briefs and blind more efficiently distribution across as well as print and point-of-
intuition channels purchase outputs
MESSAGE EXECUTION PLATFORM: LIST MAINTENANCE, OPT-IN SUBSCRIPTION, USER PROFILES, ACTIVATION HISTORIES, PERSONALIZED URL AND LANDING PAGES
Manual composition of Template driven and CRM and newsletter Content dynamically Messaging available
emails and newsletters scheduled databases integrated: sourced from central asset based on customer
Input sources semi-personalization management repository preferences via every
channel
Placed content with Efficient development Personalized content Integration of outbound Consistent delivery of
live URLs to static and delivery of to individuals and messaging with response messaging regardless of
Process outputs pages without user messages across segments mechanisms touchpoint
identification multiple channels
MARKETING CONTENT MANAGEMENT: MARCOMM DICTIONARY, PRODUCT INFORMATION MANAGEMENT, PUBLISHING WORKFLOWS, QA STAGING, PROVISIONING
Manual copy Technical Web service Segmentation and Onsite behavioral data drives Site activity linked to
production group edits and posts Models dynamic site configuration customer database
Input sources content and offline activity for
individualized sites

Static Web pages and Frequently updated Strong regulatory Recommendations and Optimized site experience
visuals pages compliance, global site optimized site views for for known visitors and
Process outputs support and enterprise segments relevant delivery for
knowledge sharing anonymous visitors
VOICE OF CUSTOMER: INTERVIEW QUESTIONS AND SCRIPTS, TELECONFERENCING, TRANSCRIPTION, TEXT MINING, SEMANTIC TAGGING, DASHBOARD SUMMARIZATION
Emails and voice mail Teleservice help desk Uniform issue-problem Automated classification of State-of-industry-sector
complaints database with cases; forms and reporting interview transcripts with inputs from XBRL-based
pop-up polls and linked to CRM and summarization using faceted sources, prediction-
Input sources online surveys; focus newsletter databases; taxonomies, external text market item prices, and
group transcripts structured customer- mining, social networks, realtime user-content
journey interview and correlation to customer consumption data feeds
transcripts journey narratives
Letters and emails of Customer care- Individualized Customer engagement
apology center responses and newsletters with life cycle benchmarks and
Process outputs summaries personalized link-backs dynamic bidding for ad
to customer scorecard words

..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

14 GISTICS executive white paper
Introducing
How will digital systems and self-directed customers drive the Customer
Engagement Cycle
organizational transformation of marketing operations?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

DIGITAL DRIVES ENGAGEMENT Thus, local engagement managers will execute
EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved

communication and engagement strategies from the bottom
Digital or interactive functions of marketing operations will up, applying local-market knowledge to opportunities
likely take the lead in most of the major change-initiatives spanning the customer engagement life cycle: awareness,
for customer engagement. consideration, trial, commitment, etc.
GISTICS research of early adopters of customer Local-market engagements will also create uniform data
engagement practices reveals a number of factors supporting sets, supplying good data to other regional and headquarter
the conclusion that that digital executive will lead the analytic teams.
transformation of marketing operations. Good local-market data will in turn stimulate new cycles
The figure below depicts several key trends in the of insights, strategies, creative content, and executions,
transformation of marketing operations. requiring that digital leaders employ process-orchestration
Most digital executive already possesses the mindset— technologies—the glue that binds the other engagement
beliefs, expectations, behaviors, and self-identities—of cycle technologies.
technical innovators. Process orchestration entails digital executives using
In contradistinction, many of their colleagues merely use specialized business-process management platforms to
technology as an enabler. These traditional marketers often systematize and integrate the typically isolated practices of
emphasize other dimensions of marketing: grand strategy, planning and budgeting, project definition and management,
positioning, trade relations, hiring, and administration. campaign development and tracking, procurement and
Digital executives expect change, often with rapid onset vendor collaboration, and dynamic scheduling and workload
with little or no forewarning. balancing of internal staff and external suppliers.
Digital executives use technology to enhance operational In practical terms, process orchestration comprises a suite
capabilities, building systems and processes, and developing of marketing resource management tools and technologies
new skills and accountabilities within their team. of business process management platform (Web service
Digital executives understand the power of integrating development, policies, routing, and customized browser-
core processes by which they executive strategies and make based dashboards)
rapid mid-course corrections to their executions.

SYSTEMATIZE, SYSTEMATIZE, SYS T E M A T I Z A T I O N E L E M I N A T E S L O W A D D E D - V A LU E W O RK
SYSTEMATIZE
Digital executives use systems, 100%
processes, and accountabilities
to “have things done” that
meet well-defined standards
of excellence and productivity FUTURE
benchmarks.
Multichannel analytics move
Mu

beyond confines of specialized
Pr

lti

databases and tools used by a few
oc

ch

“high priests and priestesses”
es
DIGITAL ONLINE

of market insights or database Lo
an
s

analytics groups. ca
Or

lC
ne

Digital executives will drive
us
ch

l A

their analytic teams to develop
to
es

service and tools for use by m
na

er
tr

marketers and engagement
at

lyt

managers in the field: executives En
io

with local knowledge and direct ga
ic
n

ge
e nCURRENT
relationships with customers and
s

partners. m
Marketing headquarters will t
build and provision tools and
services for localized customer
engagement, integrating
local market knowledge and
engagement simulations with
email messaging, social media, DigitalTrendsMarketingOps.1.4 © 2009 GISTICS All rights reserved.
and web content production and
delivery teams. 0% LESS LABOR MORE

Self-directed online customers and their growing demands of personalized services, “remixable” content, and ways of
sharing customerized experiences with their friends will drive the digital transformation of the marketing operation.

..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

SERIE S//MANAGEMENT ADVISORY GISTICS 15
Introducing
What constitutes a customer portfolio management firm, a new the Customer
Engagement Cycle
center of excellence in the marketing supply chain that will replace traditional marketing
agencies?
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

HIGH COST OF MASTERY CUSTOMER PORTFOLIO MANAGEMENT FIRMS

EngagementCyclePrimer.2.5 ©2009 GISTICS All rights reserved
Mastery of the customer engagement cycle requires GISTICS predicts that a new type of marketing partner will
significant, ongoing investment capital for new systems, emerge: customer portfolio management firms.
talent, and digital assets (creative content, reusable media Unlike traditional creative services, customer portfolio
components, and libraries of software objects). management firms will derive much of their revenue and
Mastery of the customer engagement cycle involves most of their profit from producing increased revenues,
the process integration of multichannel analytics, creative higher shares of wallets, greater levels of customer
services, multimodal content management, and dynamic engagement, and faster transitions of customers by stage of
messaging. engagement lifecycle—all quantified performance results.
Mastery of just multichannel analytics will require full- The figure below depicts the service capabilities of a
time staff—decision analysts, data collection specialists, customer engagement portfolio manager.
data modelers, statisticians, social media monitoring Each element shown represents a category of service
specialists, etc.—a team that few marketing organizations or the program deliverables of an integrated engagement
can afford, much less find, recruit, and keep busy. operation.
A growing number of interactive agencies, database
marketing firms, marketing service providers, and lifestyle SPECIAL ACKNOWLEDGEMENT
or vertical market multimedia publishing firms have begun GISTICS acknowledges the inspired contribution of Digital
their journey in mastering the customer engagement cycle. Cement (www.digitalcement.com), a true innovation leader
These intrepid innovation leaders recognize that most that delivers full-service customer engagement to its clients.
enterprise marketing operations have neither the capital nor
the will to invest in many of the new systems, talent, and
digital assets that customer engagement will require.

D E V E L O P M E N T A N D P R O V I S I O N I N G O F C US T O M E R E N G A G E M E N T P R O C E SS E S R E Q U I R E A N I N T E G R A T E D
S E R V I C E P L A T F O RM

S tr ateg y Value Design E xperience Enablement Ecosystem

CUSTOMER ENGAGEMENT STRATEGY CUSTOMER EXPERIENCE CREATIVE EXECUTION CHANNEL EXECUTION
ANALYTICS DESIGN STRATEGY STRATEGY EXECUTION PARTNERS

Marketing Social Value Experience Creative Engagement Direct Sponsored
and CRM Network Segmentation Ideation and Copy Services Mail Events
Strategy Optimization Architecture

Customer Channel Mix/ Experience Business
Engagement Clustering Content Online/ Custom
Maturity Integrated Audit and Development Rule Interactive Publications
Assessment Marketing Benchmarking Development

Consumer Engagement
Insight and Lifecycle Predictive/ Basis of Editorial Custom Advocacy/
Causal Conversation Planning Development Word of Mouth Mobile
Market Stage
Research Optimization Modeling

Media Mix Customer Valuation and Experience
Optimization Engagement Long-term Flow Execution and Life Event Field Sales
Investment Roadmap Value Development Provisioning Marketing
Decisions MEDIA
SERVICES

Product-Mix Engagement Channel Information Digital Asset Test and Social
Optimization Operations Measurement Architecture Learn Networks Loyalty
Processes Metadata

Customer Service_Capabilities_Engagement_Firm.1.3
Engagement Business Case Content Versioning/ ©2009 GISTICS Incorporated, All rights reserved.
SOURCE: Digital Cement www.digitalcement.com
Program Development Planning Search
Strategy

Program Approvals
Design and Proofs

Te c h n o l o g y E n a b l e m e n t , P r o g r a m M a n a g e m e n t , P e r f o r m a n c e

Engagement service providers employ large, diverse teams of specialists that exploit the service capabilities of an integrated digital services platform.
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................

16 GISTICS executive white paper
17
GISTICS
ESSENTIAL QUESTIONS ADDRESSED IN THIS SECTION:

What differentiates GISTICS as a think tank for market-making?
Download the full 56-page white paper today.
A bout G IS TIC S
...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

PAGE
18
19
................... ...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Introducing the
Customer Engagement
Cycle
SECTION I
...................

SERIES//MANAGEMENT ADVISORY
Yes! I want more about the revolution of
 Customer Engagement

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Download your copy of this 56-page executive white paper:

Orchestrating the Technologies and Processes
of the Customer Engagement Cycle
Strategic roadmap for integrating traditional and online marketing
and customer service with multichannel analytics, multimodal
content management, and analysis-driven email messaging
developed in collaboration with
PAGE CONTENTS // SECTIONS
4 Acknowledgement of 44 contributors
licensed for worldwide distribution 5 Innovation and Investment in Marketing
For more in-depth information about 11 Customer Engagement Defined
Customer Engagement Technologies, 21 Operational Capabilities of Customer Engagement
please visit www.alterian.com/ • Multichannel analytics
engagement-orchestration • Voice-of-customer content analytics
• Content planning and optimization
• Customer engagement objects
• Information maturity model for customer engagement
• Process maturities for four engagement cycle technologies
39 Customer Engagement Partners and Practices
49 Innovation Leadership
54 About GISTICS
...................

................... ..........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Thought Leadership...Executed Worldwide 4171 Piedmont Avenue, Suite #210 Tel +1.510.450.9999 info@gistics.com
www.gistics.com
...................

Oakland, CA 94611 USA Fax +1.510.450.0954
What differentiates GISTICS as a think tank
for market-making?
FOR Growth-oriented providers of new technologies or disruptive innovations
WHO NEED More effective ways to create sales in early-stage markets or
disrupted segments within established markets
WHO ACCEPT That new technologies or disruptive innovations confuse or frighten most
potential buyers, leading to long sales cycles with low sales conversion rates
WHO KNOW That traditional marketing and business development practices
constitute an ineffective way to find early adopters
WHO WANT To establish a new market category for their products, services, or platforms
GISTICS Provides the unique capabilities of a digital think tank for market-making,
DEVELOPING The strategic business case and investment analyses that justify
buying decisions in early-stage market niches
DEFINING The problem-determination methods for a buying organization
ATTRACTING The prospective early adopters and solution providers of new technologies or disruptive innovations
USING Rich media (live or prerecorded Webcast presentations or screencast
demonstrations), social networks (user-generated content of blogs, discussions,
podcasts, Webcasts, uploaded videos, etc.), and a robust digital platform.
CLIENTS Partnering with GISTICS, benefit from
• Breakthrough strategies for market making
• Thought-leadership white papers and Webcasts
• Executive insight portals and master-practitioner teleconferences
• Trusted introductions to key market makers: advanced project directors,
IT project managers, independent consultants, and small solution providers
UNLIKE Research firms such as Gartner, Forrester, or Frost & Sullivan who define the basic ideas
of a new market category, develop shallow business cases for disruptive new technologies,
and recommend the use of traditional marketing and business development practices
OR UNLIKE High-tech marketing consultancies such as the Chasm Group who edit their client’s
big-picture strategies, define strategic messaging frameworks, and recommend
(but do not implement) go-to-market strategies consisting of one-off tactical
programs and an ineffective mix of traditional and guerilla marketing practices
OR UNLIKE Promotion and marketing-service firms who supplement the client’s business
development with strategic messaging, Web site makeovers, direct mail
and newsletters, and other marketing communications activities
S ONLY GISTICS Maximizes sales for new technologies or disruptive innovations in early-stage markets
OUTED or disrupted segments of established markets, using structured, scalable, and flexible
ATEGORIES programs to meet or exceed client criteria for value, satisfaction, and quality.

MARKET INFRASTRUCTURE
Academic Papers/ Newsletters/ Consultants/ Trade Pubs/ Financial
Blogs Conferences Integrators Business Press Analysts

ms 100% Demonstrated
Feasibility
Proven
Business Value
Established
Solutions Commodities
Aftermarket
Replacements
Cumulative Adoption

nd
s Market-making Adoption
T h i n k Ta n k Curve
{

0% AdoptionCurve.E.1.0 ©2007 GISTICS, All rights reserved.

Researcher Early Adopter Pragmatist Conservative Laggard

ECONOMIC ACTORS
...................

................... ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

Thought Leadership...Executed Worldwide 4171 Piedmont Avenue, Suite #210 Tel +1.510.450.9999 info@gistics.com
www.gistics.com
...................

Oakland, CA 94611 USA Fax +1.510.450.0954
GISTICS Incorporated
4171 Piedmont Avenue, Suite 210
Oakland, CA 94611 USA
www.gistics.com
+1.510.450.9999 tel
+1.510.450.0954 fax
..................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................