The marketers who get to grips with CRM today are tomorrow's superstars

Over the past dozen years I have been working in CRM. My team has delivered global strategies for major brands like Virgin, News International and McCain, and I have been teaching marketers CRM skills at the Institute of Direct & Digital Marketing and at Hult Business School, where for the past few years I have taught eCRM to Masters in Marketing students and MBAs. Lately I have been running masterclasses for Heads of Marketing at the Groucho Club (email me for info), and I have noticed something remarkable about people who have these skills: they make unusually rapid progress up the career ladder - so I thought I would pass on a few of my observations.

CRM (Customer Relationship Marketing) or eCRM (the digital version, though these days the terms are interchangeable) is founded on a deep understanding of customers. The skills required include the ability to interpret data, to extract customer insight, and to act on it. They also include the ability to plan ahead, sometimes based on an understanding of what customers do or are likely to do over the span of several years (think: buying a car or a sofa).

The run of the mill marketer tends to get caught up in day-to-day delivery of campaigns; CRM people manage to do this while understanding the over-arching context of the campaigns. More often than not, a campaign within a CRM programme will not drive instant revenue, but will increase the value of the customer to the brand over the course of several campaigns. And this requires a long view. As we all know, daily pressures (get a campaign out, check copy, chivvy along an agency, test an app) do get in the way of thinking big, so how does a savvy marketer make it work?

It all comes down to measurement and markers. CRM requires an understanding of the lifecycle a customer is on, from first consideration of a brand to loyal consumption and recommendation. Using data skills to help map this out provides several fantastic tools at once: a long view of the customer relationship; a sequence of stages in the lifecycle, from engagement to conversion to retention; and a series of timed steps along the journey.

This customer journey map is wonderful, because it allows us to think long term whilst giving us sight of the next few steps. By applying some numbers to each step - say, 1% fewer customers who stop engaging at the end of the step - when they get added up over ten steps that may be a significant increase in revenue. In other words, you can focus on the next immediate improvement, and will find after a while a significant change has been achieved. It's a really simple principle.

That same principle is why some of the people who started out in the geeky bit of marketing, CRM, are now superstars leading their organisations' growth. At each step they set a target and saw what happened. Their success was measured. They proved their value to their employers - and in return, rose rapidly. Many of today's superstar marketers have CRM skills to thank for it.

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Felix Velarde is Chairman at Underwired (underwired.com), the leading CRM consultancy, and teaches at Hult International Business School and the IDM. For information about any of these courses, including those for Heads of Marketing, email him at felix@underwired.com

It's the Art of Perfectly Timed Marketing

Guest blogger – Jen Talbot, Senior Account Manager

Responsible for the day-to-day account management of some of Underwired's clients including ESPN and Regus worldwide, Jen advises on digital best practice and marketing strategy, and coordinates planning workshops for customer journey mapping.

Jen joined Underwired in July 2013 bringing with her experience from previous roles at Havas EHS in account management and project planning for both digital and integrated campaigns for brands in the financial, utilities and leisure sectors including Barclays Wealth, CPA Global and E.ON.

In an age of connectivity, where everything has become instantaneous, the sense of meaningful communication has been lost in the constant noise of notifications and reminders. So, with this being today's reality, what does this mean for the modern day marketer?

When you see a stunning rainbow or a great piece of street art, what do you do? Instagram it, Vine it, Tweet it, Facebook it? When you're out for the day how many times do you respond to texts, WhatsApp messages, emails or tweets?

Media theorist, Douglas Rushkoff, has outlined our obsession for trying to capture the moment, but never quite living in it, in his new book 'Present Shock'. He makes the point that, "The only kind of people that used to be contacted this frequently and this incessantly, were 911 operators - and they would only do it for two or three hours during the day. And then they would be medicated in order to be able to live that way".

Kronos vs Kairos 
Taking inspiration from Ancient Greek, today's marketers have two differing methods to select from, when looking to determine the 'right moment in time' for customer communication. Definitions of 'Kronos' and 'Kairos' - both Ancient Greek words for 'Time' - distinguish these methods:

1.Kronos 
Kronos means chronological or clock-driven. A marketer's version of Kronos is: "I know that by sending my newsletter on Thursday at 1pm I will get a better response than at any other time". Or "I know that by sending an email every week I will get more repeat purchases".

2.Kairos 
Kairos is the alternative sense of time, succinctly put by John Pulakos, in his 1983 article 'toward a Sophistic Definition of Rhetoric': "In short, Kairos dictates that what is said must be said at the right time." In marketing, we can interpret this as both the readiness or 'openness' for conversation, and the choice of selecting the appropriate moment.

The age of bombardment 
According to Microsoft, the average person has 184 emails in their inbox and receives at least another 28 emails each day. According to Ofcom, 49% of people regularly 'media mesh' - using devices for completely unrelated activities whilst watching TV - and an average of 500 million tweets are sent everyday.

With all this noise and irrelevance, companies are forever looking to achieve efficiencies using the Kronos method, a chronological approach to sending marketing communications. By doing a simple Google search of 'best time to send email' 1,550,000,000 results are produced. But how many companies implement this approach without looking further into their audience motivations?

When IS the right moment? 
One source suggests potential reasoning for the most successful time frames for each sector and industry. For example, the 'post work peak' (between 5pm and 7pm) is considered to be the best time to send marketing emails, in terms of open rates.

When Gmail announced the implementation of 'tabs' to its inbox, companies were concerned that response rates would go down. In fact, within the first few weeks of the update, the opposite was true and the open and transaction rates actually increased. Although rates are approaching the average again now, this uplift highlights the affect of taking the Kairos approach and the importance of having an audience that is 'ready' to view marketing emails. This 'readiness' essentially means that recipients are in more of an open mind to click through to the email and transact where relevant.

Kairos in CRM 
Readiness, or indeed Kairos, is absolutely key to CRM, as it ensures marketers are carefully considering when the audience is 'ready' to hear from your company. In so many cases, communication programmes are run on a periodic or silo basis - onboarding, newsletters, loyalty programmes, retention - all overlapping and clamouring for attention.

Let's think now about how many times a company has said 'thank you' to you for being a customer. Now let's think about how many times a company has said 'thank you' only to use this as an opportunity to cross-sell? Some might see this second option as an efficiency that their customers would appreciate. But by having a 'dual-purpose' communication you actually weaken both messages. There should be a time and a place for everything. The acceptance and desire for tools, such as the Gmail 'tabs' or Outlook's 'advanced rules', show the increasing importance for customers to control when they are ready to be spoken to. So with this in mind, a thank you should just be that; 'thank you'.

Kairos in practice 
Confused.com is a good example of using Kairos in practice. Having used the insurance search engine for a quote comparison in March, a month later - when I'd nearly forgotten about it - they sent me a birthday email. There was no sales message, just a humorous email from the brand mascot, Brian the Robot. The email immediately put me in a great mood and brought Confused.com to the front of my mind. It made me want to show my friends and it generally made me feel pretty good to be a customer. A couple of months then passed by and they nudged me again, this time about a new app that was available.

Confused.com is playing the long game as it clearly understands that it will be a year before I make another decision about my insurance. We both know that I'm not in the market right now, but in the meantime I'm being made to feel appreciated - and entertained - therefore enhancing the chances of a repeat purchase. And before I return to the website, to potentially make a purchase, I have been providing my word of mouth recommendations to colleagues and friends about the company and its great customer service.

Conclusion 
So after all this talk of Ancient Greek, where do we as marketers stand? Well, hopefully with a realisation that when juggling existing communications plans, business goals, stakeholder opinions and a disorganised or legacy database, the thought of "What does the customer want from my company?" can often fall by the wayside. But, this question should hold equal if not a greater importance than the thought of "What do I (the business) want to tell my customer?" This is because it can inform and give greater value to everything from data segmentation to communications content.

When a communication becomes supportive and not 'shouty', useful but not needy, and timely yet not thoughtless, we start to see appreciation in the form of response. Through this approach, we regain the value of meaningful communications and become able to cut through the chaos of a 'Present Shock' inbox.

Total Customer engagement: growing trend of "Total Customer Engagement" and how this is affecting the future of marketing

When I was a kid, we used to shop in the same places all the time. We'd walk down the street and say hi to the butcher walking in the other direction. He'd always have a smile, and maybe make a cheeky comment about us kids. When we went into his shop he'd comment on what veg would go with the meat my mum had chosen, and tell her to say hi to Jeoff when we went into the greengrocer's next door. There was always a kind word. For decades my family shopped in the same shops. There wasn't anything called customer engagement. But that's what it was.

Nineteen years ago the web turned up, messed up customer experience by turning it on its head, reducing the shopper interaction to seven clicks, shopping carts, price comparison and basket abandonment. Almost twenty years on, we've learned a huge amount about technology, about acquisition, about usability, great design, optimisation and the always-on mentality. Having now come out the end of e-commerce's terrible teens, here are the things we now know:

Retention only comes after acquisition

Loyalty only comes after service

Advocacy only comes after loyalty

Win-back only comes after failure

Three clicks is best, though if you have a process that takes more than ten by the time you've got the customer to seven she's unlikely to turn back and go to your competitor

Responsive design means you can make the experience similar across PC, tablet and mobile

...and so on.

What we've also started to understand is that the customer is on a journey. Over a decade, we have perfected the art of defining that journey by understanding that there is a natural sequence that doesn't feel forced if you ask the customer to take the journey with you. This in turn, is based on the idea of the nudge - that one little step at a time can lead to significant change. When we look at where a customer is, what they like, where they go and where we want them to go, we can then readily develop a map of the customer's journey from first point of contact to lifetime loyalty, in little incremental steps. 

The art of customer journey planning, which came out of the in-store retail experience and the desire to drive customers past high margin discretionary items on the way to their target staples, has been translated to the online world and perfected over ten years by the specialist eCRM agencies like Underwired and others. And this customer journey, delivered using the cheapest digital channels, has been developed to allow brands to examine each little, incremental step on its own and optimise its performance. By extension, when lots of little increases in performance are added together, huge changes in revenue can be achieved. To illustrate this, by increasing revenue by 3% for a single step, when applied over 24 steps will double your revenue. We do this all the time.

By adding a dimension of customer focus to this rather technical, commercial focus, segmentation has been taken from its shopping experience roots (for instance, when our butcher would know that because ours was a three kid family, we'd be more likely to buy mince than a steak), via direct marketing thinking, properly defined in the early seventies, to the digital age. This digital age has allowed marketers to think in big numbers, to define shopping habits not through inference, but through observing behaviours from Google search to repeat purchase in an e-commerce system. Behaviour, enhanced by adding demographic data, married to motivation (back again to inference) gives us 3D segmentation. And 3D segmentation gives us the tools to develop different customer journeys for different types of customer.

All of this you're familiar with, I suspect. Marketing is now largely scientific. We can develop customer journeys for different customer types and take them from one step to another leading to maximal (or at least optimal) lifetime value.

It's been a revolution. And the kids have grown up. Almost twenty years on since the first days of the web and the painful birth of a new way of retailing, this discipline of how to engage with customers is finally about to emerge from its teens.

So where does it go from here?

The next generation of retailing takes what has gone on up until now and builds on it. In actual fact the Next Big Thing is really simply an extension to everything  you have just read: if you look at how segmented customer journey planning has been expressed in practice, the next step in its evolution is quite clear. Thus far, we have made use of digital channels to do all of this. The web to capture attention, to engage people with the brand on the website (or landing pages), to engage and retain them using email, to convert them to customers using e-commerce.

And thus far, we've been viewing the customer journey as something we as master marketers define for our customers.

In fact, customers are on their own journey. They have lives, which are multi-threaded, which involve the web, and mobile, and walking down the street with their kids. They live lives ruled by their motivations, the people they listen to, their immediate needs, and their whims. And, critically, they are influenced by all sorts of things that aren't just digital.

The customer journey plan does work. It does have a crucial role to play - as marketers we must have a framework for holding the hand of the customer while we take them one step further: without it we don't know how to brief it to agencies, we don't know how to measure success and we don't know how to optimise it. But it ignores the fact that customers (actual real people!) have their own sequence, and they are unlikely to share it with us, even if they know it themselves.

One of the facets of this which informs what will happen next is that in real life, customers aren't just on email. They don't just use digital. Sometimes the critical nudge that will take the customer from point 16 to point 17 isn't online. We may have to reach them offline.

The customer journey requires us to think in a channel-agnostic, or multi-channel, way. The future of this marketing discipline requires us to map the customer journey without assuming it will be served at every step by an online touch-point. If we do this, the customer journey plan we describe can more closely reflect the customer's own journey and the way she actually lives her life. By defining customer engagement on the basis of what nudges and steps are required first, and then adding in channel selections based on the customer's own journey, second, we can create single-minded, focused, multi-channel strategies and campaigns. 

This is the next generation of marketing. It's called Total Customer Engagement. It gives us the tools to leverage 3D segmentation and digital insight to deliver the kind of supreme engagement previously only delivered by the local family shop keeper. 

Navigating Big Data

Tesco famously has ‘segments of one’. Which is lovely of course - but they had to buy a data company just to make sense of the data so they could get there. Most of us don't have that luxury. But it doesn't mean we can or should ignore data, even if it looks like it might become unwieldy.

Some brands haven't yet realised that the power in a brand/customer relationship has shifted from the marketer to the marketee. Clearly however social media and the ability to share every thought, spoken or unspoken, with friends and peers and even the whole wide world means that the brand perception is out in the wild. It's been let loose. No longer is the way your brand is represented in your control. It's in the expressions of passion, ire, indifference and ephemerality of the digital ecosystem: Facebook, Pinterest, Snapchat, Twitter, Vine, even email. It's transmitted by mobile, stored on the web, and available to the world.

Your job as a marketer is to understand that this revolution has already happened. And to take advantage of it. If you can do it successfully you can catch up with the wild thing your brand has become, and even gain competitive advantage while your peers wrestle with boards who just don't get that they're no longer in control.

Scary thought?

So what do you need to do in order to flip the situation around? Well, part of the problem is the notion that we can regain control. I don't think we can. What we can do however is map how consumers behave, and indeed how their attitudes will shape how they behave in the future. By going down this route rather than trying to gather the brand in, you can extend the brand into the customer's territory, give them more control by enabling free interpretation of the brand's essence. And that takes not only courage, but data too.

Customer insight is the product of data. The three dimensions of segmentation (what we call 3D Segmentation) are:

• Demographic - who the customer is;
• Behavioural - what they do and have done;
• Motivation - why they do it. 

Demography is slow moving, so we use it as a kind of snapshot to describe people. It means we can target them accurately. Behaviour is retrospective, but we can observe behaviours and trends and make extrapolations based on probability and this gives us propensity models. This means we can target them efficiently. The final dimension is about motivations, attitudes and 'need states'. Sports brand ASICS leverages this in its MyASICS loyalty programme: by understanding why a runner runs, we can talk to them in terms that resonate… the desire to be fitter, or to win, or to raise money for a cause. By talking to its customers about those things that address their motivation, ASICS creates extreme loyalty, increasing sales. Worldwide. And MyASICS is served by a website, and emails, and mobile. All of which feed back data so we can hone the programme.

These days the various digital channels are so well established that the mechanisms that allow you to track a customer in their journey in one can easily be joined with the mechanism in all the others. It means we can effectively create a joined-up process to track a customer across all digital channels as they weave about their daily lives. This ability extends even to the real world - we work with clients who have incorporated data from electronic point of sale (EPoS) systems into their customer view, so we can attribute till sales to pay per click (PPC) campaigns and journeys via every imaginable digital touch-point.

And it's not that difficult, and you don't need to buy a DunnHumby or a data team to do it. The concept of rapid prototyping has been very successfully applied to creating online customer labs and pilot programmes. For instance, brands like Bupa have used it incredibly effectively to build online communities at very low cost before making decisions about major investment (my agency, Underwired, created Bupa's Carewell using this rapid prototyping approach – saving the client around £150,000).

Forget the Single Customer View and its squillions in Capital Expenditure; rope together several separate systems based only on those components you actually require to do the job of proving return on investment (ROI) and use it to monitor customer behaviour in response to the insights you generate from simple data analysis. In my experience six or seven segments gets the job done - segments of one are for when you're already at the outer extremes of wringing profit from data and not when you're mid-shift towards putting your customers at the centre of the brand universe.

Do One Thing Well

Marketing is a collection of lots of activities, all working or acting together, sometimes in concert, to fulfil several roles. These include brand awareness, prospecting, engagement, conversion, retention, generating advocacy and so on. Often we want all our marketing to do all of these things. But the reality is, great communication is about being single-minded.

This singularity of purpose is obvious when it comes to a TV advert because you've only got thirty seconds to make a point. For instance,doing an advert which first makes the consumer think "ooh, cute puppy", then offers a discount, then states how many sheets there are on a toilet roll and then finally a message to visit the website to sign-up for points, alongside the obligatory Facebook, Twitter and Snapchat logos, would of course be ridiculous. It’s the same with a magazine display advert. For each one it either needs to be about the brand or a single call to action. Simple.

So, why do we not treat email like this too?

There are two dimensions to this way of thinking. The first is really, really simple: the more stuff you ask the email recipient to read, evaluate and discern their choice of call-to-action response, the less they will be able to respond. This is because there is more choice, more confusion, and more time is required.

Inevitably, in these instances, people will either choose the middle option (basic Goldilocks psychology) – which tells you nothing about their real values or propensities – or they will defer the decision altogether (which in sales terms is a 'no'). So you should make the choice simple: do, or don't do. Or: pick this one or that one (that's the assumptive version).

Email marketing should therefore be short, to the point and present only one or two choices. This will maximise impact and increase response rate. You will also be seen to be efficient, clean, straightforward and direct; the simple choice compared to your competitors. Think of the emails you get from Apple (if you're a customer), which are single-minded and clear to the point of asceticism; which is ironic really given how much an iPad costs.

I mentioned a second dimension. We’ve already talked about how any given email needs to have a single purpose and therefore simple, easy to parse content. However, now we need to consider the role of an email in a long-term email-driven relationship. This adds ‘time’ into the mix.

This is where we dive into the principles of customer engagement strategy or ‘CRM’, where each email is designed to move the relationship on from where it is, using knowledge gathered from where it was, to where you want it to go next. In other words, we know that to build a logical customer relationship takes a series of incremental steps, and CRM-oriented email campaigns can do this really efficiently. But, because each of these steps is discrete and purposeful, it is imperative that each step is delivered as effectively as possible.  Each message must be single-minded in its purpose of preparing the customer for the next contact. For instance, the sole purpose of one email may be to make the customer think you're nice. This might be by saying, "thank you" after a purchase. This is a good tactic, because if the customer thinks you're nice, they're more likely to read your next email.

So, single-mindedness must be an attribute and quality of every email you send. Each email can do many things and have many messages in it, but none will be effective. By doing one thing well, you will get the best response to an email, and ultimately the best possible result for your email marketing campaign.

Is Social Media more so a function of e-Marketing or CRM?

(Reposted from the awesome Quora)

Depends on the goal, and who is spending the money.

CRM is (should be) about understanding where the customer is on their journey through life, with some appreciation of the trajectory they are on (in terms of behaviour, demography and attitudes, possibly defined momentarily by where they came from and how they are currently influenced); in turn this allows marketers to decide what to say next to influence their behaviours and attitudes to develop additional value.

With that approach, social media is or could be (ideally you should test several channels to see which one delivers the behaviour change most effectively) one possible channel to deliver that 'next message' in the intertwined customer journey and brand journey.

Looking at it like that it becomes straightforward to set KPIs and measure results. This in turn makes briefing experts and suppliers very easy – they no longer have to be particularly creative, nor do they have to compete for budgets against other channels, because their role is tightly defined and they have to recognise they are just one of many touchpoint executors with (sets of) defined goals.

The other way of doing it is to try and box some stuff into 'e-marketing'. If you're not yet at the stage of evolution as a business or as a marketer that you are able to think in strategic terms then social becomes tactical and is all about the creativity of the idea in creating competitive advantage for the supplier in increasing its share of the budget of the various other e-marketing activities.

I really hope the first approach is the one your firm is aiming for ;)

Total Customer Engagement

Social media seems to have changed the way we look at things as marketers. I’m not saying social media is the centre of anything - certainly it shouldn’t be seen to be important as a channel in its own right, but it has shown brands that the consumer has a powerful say. The voice of the customer has been given weight, and in fact the advent of social media has brought into sharp relief the fact that what the customer says can propagate rapidly, sometimes changing the course of brand perception.

The customer could even be said to have power over a brand’s destiny that is out of the marketer’s hands. The notion that brands may have to react to the preponderance of opinion, gathered in the social sphere in plain public view (as opposed to hidden in one to one correspondence or at the dinner table or in the checkout queue), is novel and for some quite startling.

Digital has delivered a real shift in power, and we as marketers are having to react to - and not drive - this. Marketing is no longer about telling, it’s about listening. As, of course, it should be.

Listening is enabled by digital channels and these are of course not constrained to the social channels like Facebook, Twitter and the others. Listening is facilitated at every touch point, from B2B’s cornerstone of reverse IP lookups to Google’s AdWords, from the landing page to the shopping basket, through eCRM and the email or mobile-driven comms we use to engender loyalty and ultimately advocacy (back to social). Digital has empowered us by giving us the ability to understand how customers behave throughout their digital life, and map that to touch points and moments of truth as they apply to the intersection between their lives and our brand stories.

But marketing is much more than just digital. Consumers’ lives are not wholly lived online. Some of the critical touch points happen out there in real life, in store, at venues, walking down the street. So it is imperative that as marketers we understand that we need to meet our customers, create those intersections, wherever and whenever they are most appropriate.

This idea of Total Customer Engagement requires joined-up thinking. It requires an understanding not only that customers have behaviour, but that they have behaviour that shifts over time and according to venue, digital or not. And this plays back to the central power shift. As marketers we must recognise that the customer journey is not a journey we put our customers into (though of course this thinking does stem from the more perceptive eCRM agencies), it is a journey we need to identify - that the customers are on in their own right. Our job is to understand their needs states, their attitudes and their paths, so we can meet them. Our role as planners is to map them, and to target our comms cleverly, both in terms of venue or channel and the appropriateness of message type given their mind state at the moment we engage.

The power has shifted from the brand to the customer, therefore we can no longer broadcast and hope. We have to be precise and this requires two things: the ability to gather and interpret data (whether digital or not), and the ability to serve a coherent brand story in whichever channel is most able to serve the purpose of a relevant interaction. In turn, this requires us to be able to manage multiple marketing disciplines - and that may indicate where the real shift in thinking lies.

As marketers we can no longer afford to think in terms of social, or digital or traditional marketing. We have got to think about customer marketing. We need agencies and suppliers who are happy to work together, not as specialists with specialist strategic offerings, but as coherent deliverers of a unified customer journey, one which matches the customer’s pace and place.

Total Customer Engagement is a new way of thinking about marketing - one that Forrester identifies in terms of marketing as mediation rather than execution. It’s the way of the customer. And it’s the way of the future.

Big Data: Why more data is better for brand loyalty and customer experience

We've recently started talking to a brand which has around 700,000 customers in its database. They have collected lots of behavioural data, by which I mean transactional data - recency, frequency and value (or RFM) - and response data. This response data is all about what happens when the customer is sent a piece of communication, in this case an email. What they do, when they do it, where it leads. Say the database contains 30 fields. That's 21 *million* pieces of information, all tied together to create a big fuzzy room we can in effect walk around, try to make sense of, and manipulate to achieve commercial goals. 21,000,000.

Everyone talks about Big Data as if it were some kind of technological nirvana. The reality is you can gather data from a whole lot of sources and stick it all together more or less by hand, if you need to. In practise, Big Data is shorthand for the notion that if only you could mine, interpret and extrapolate all the data you could get you'd have some kind of joined up living solution to customer engagement, almost a mindmeld between your brand and a collective representation of your customer base in its entirety. Nice.

The reality is that data is an enabler, something you can make use of - not something that should make your decisions for you.

So how does this pragmatic approach work? There are a number of critical steps to take you  from having on the one hand a commercial goal and on the other some customer data. First, make sense of the data. Customer insights start with understanding what kind of data you have. In our CRM terms this information breaks down into three broad groups:

Demographic - who the customer is
- Gender, age, life stage
- Location
- Income
- Status
- Family make-up
- Education etc.

Behavioural - what they do
- What they have bought
- When
- In response to what
- How much do they spend
- How long is their 'customer lifetime'
- What channels do they use
- When do they respond most

You can see already that by combining some of this information you can infer quite a lot about the way you might want to talk to some of your customers. It is obvious that you can start to create segmentation based on demographic and behavioural data. However, this approach to segmentation may help you to be efficient (behavioural) and accurate (demographic) in who you talk to, but it often does not tell you what to talk to them about.

Taking the classic example of customers of a prize-based fantasy football league, segmenting by these two dimensions might lead you an easy segmentation based on whether the customer buys one or twenty teams (behavioural) and jump to conclusions about their financial status (demographic).

3D segmentation adds a new aspect, motivation, to the mix. If you can divine what motivates your customers then you can speak to them using motivation-based segmentation and that may actually provide the cut through that's required in a highly competitive environment.

Motivation - why they do it
- Need state
- Environmental factors

This dimension can change based on changes in the other two dimensions; for example changes in family make-up or life stage may radically alter someone's drivers for engaging with your brand.

In the case of the fantasy football league, by looking not at behaviour or demographics (which didn't appear to correlate) but by motivation, through the simple expedient of a brainstorm with everyone we could find near the meeting room we reached an insight we could test - first by checking the correlation with the behavioural data, second by sending a brief questionnaire to a standard sample. The insight was that customers bought principally because they were either motivated by passion for the game (bought a single team) or by the desire to win the prize pot (bought twenty teams).

By using this simple insight we created two segments serving two types of (relevant) content. These were then split into time-based sets based on where the customer was in the product lifecycle (new joiners, mid-season etc.) so we had six or seven simple segments.

Revenue went up 93% in 90 days. The client was The Sun.

The job of data is not to confuse or confound. The job of data is to allow you to extract simple insights that allow you to run singleminded campaigns that tap into your customers' motivations so that they want to engage with you. As we start to think beyond the age of CRM and focus on rapid growth, it is imperative that Big Data doesn't become an encumbrance. Data should be there to provide insight so you can get on with the engagement - because how you engage with your customers is the only thing that will drive your success.

The digital conundrum

Today’s question: we’ve arrived in the digital age, everyone’s online, Blue Nile’s cleaning up on diamonds, and the whole world seems to have gone social media mad – so, should we jump on the bandwagon too? For the small family jeweller, or even the large high street family jewellery chain, it’s a question that has taxed business owners and marketers with increasing frequency over the past few years. Indeed, now that the smart phone accounts for nearly as much online traffic as PCs, and the website is almost every retail chain’s largest single store, it’s a question that has gone from one that might have been shelved until now to one that may well be business-critical imminently.

So what are the basic decisions that need to be made, how do we decide what to do, and how should we prioritise? The first is simple: the decision is based on a simple set of questions, all around threat/opportunity. Can we compete without going online? Can we gain any benefits from going online? And to answer this, the process is relatively straightforward. You need to ask yourself how you relate to your customers.

For example, are the majority of your customers one-off purchasers? If so, are they really? In other words, do they buy on several one-off occasions (wedding, birthday, Christening, Bar Mitzvah, anniversary)? And if so again, is there something you can do to keep a relationship going? Of course, retailers already do a lot of good things, from a great in-store experience, knowledgeable and engaging staff, appropriate (via self-selecting customers) range of products ... but how do you follow this up and keep in touch? Digital channels may provide one answer of course, as email – today’s postcard – costs pennies to generate and send, even in relative bulk.

If you have a few hundred customers it’s fine to do this by hand, because you can do this instantly and more or less from memory, but again digital’s power here is the ability to divide customers up into groups (husbands, over-50s, partner’s birthday in October, anniversary in May) and automatically send the right message to the right person at the right time. Simple segmentation like this can mean compelling messages, as opposed to the one-size-fits-all approach most retailers seem to take. In fact, an approach like this uses the power of digital to re-create the personal service-based relationships of old.

For this kind of approach of course you need data. The big retailers have this down pat and collect data at point of sale (age, marital status, reason for visit, products looked at and bought, birthday etc.) and add it to a centralised database (which could be as simple as an Excel spreadsheet or as big as a Single Customer View database integrated with your EPoS system). You can augment this data at the till, or by leveraging your website. To do this you might consider asking customers to visit the site and they’ll get some value exchange, perhaps free engraving next time they buy, or a free trinket (first of a collectable) for their daughter, or the chance to win something. This kind of simple value exchange gives you an opportunity to learn both about the individual and about your customers in general. This in turn gives you data from which you can start to make decisions and of course, the data with which you can create targeted, timely and relevant campaigns to drive sales and support your ongoing (if infrequently manifested) relationship.

One benefit of a relationship supported and bridged online is that you can use it to ask questions about your strategy. For instance, if you’re trying to work out if your customers might buy if you built an e-commerce site, ask them. You may be surprised, they may tell you things you never knew (“we browse in your shop because it’s friendly but we buy from your competitors online because it gets delivered to the recipient gift wrapped.” or even “My family used to come to the shop but we moved away and only get there once a year, we might buy more often if we could do it from home!”), but of course you do have to ask in the right way. Most people like to be asked their opinion though, as the implication that you value their opinion confers a sense of belonging and ownership. Your website is the perfect venue for this, especially as a simple survey can be extremely cheap to produce and promote.

The benefits may not immediately justify spending thousands (or even hundreds of thousands) on a serious e-commerce strategy. But, by creating relationships with your customers, by using cheap and easy channels like email to help bridge the long gaps between visits to your shops, you can easily develop loyalty and brand fealty, at a very low cost.

By the time you have hundreds of thousands of customers, and you start changing the purchase patterns – say frequency, or order value – of swathes of them by a few percent, you could be talking millions in incremental revenue. Even for the independent family jewellers, the difference between a declining, ageing customer base visiting spontaneously and a loyal, engaged customer base who increasingly use the internet to keep in touch, make decisions and use the web to book appointments to view and choose wedding rings, may even be the difference between fading away and reinvigorated growth.

Underwired caps incredible month with RAR finalist place

Underwired, the leading eCRM and Customer Engagement agency, has been shortlisted in the Recommended Agency Register (RAR) Awards.

The awards recognise the agencies that have been highly-rated by their clients and to date, over 14,000 customers have rated the agencies they work with. The awards are a reflection on an agency’s ratings across a number of areas including Creativity, Effectiveness, Value for Money, On Time/On Budget and Client Service.

This news comes on the heels of an incredible year for Underwired, which now counts Marks & Spencer, Mitchells & Butlers, Travelodge, British Land, ASICS worldwide, East Coast Railways and the Financial Times among its clients. Less than a year ago the management team led by Jason Holland and Felix Velarde took the agency independent, and in the past month Underwired has won over £1m of contracts.

Jason Holland, Underwired’s co-founder and creative director, said “This reflects Underwired’s culture of partnership and collaboration, and in particular the rapport the client services team has built with our clients. We do business-critical, highly strategic work, and that demands genuine trust. That’s built on a foundation of value for money and doing stuff right and on time – but it’s also partly a reflection of the passion we have for the work we do with our clients.”

The advent of Customer Engagement Marketing

We went through a recession, and while we weren’t looking, the world of marketing changed. We discovered as an industry that making certain that marketing governance is based on sound principles is critical in a recession. Digital marketing, with its granular tracking and ability to follow a customer from first contact, means you can observe his or her behaviour while they consider their first purchase and beyond. When digital marketing is joined up correctly, you should be able to establish precisely how much value you generate for every pound that you spend. And this accountability, during the recession, meant a degree of comfort that marketing actually was working. In other words, we gave credence to – and then priority to – marketing which has built into it a chain of custody.

The traditional view of brand marketing was centred around the way the business wanted to engage customers. To some extent, in the early days of internet-based marketing, this notion of brands built around customers’ needs was lost, at least temporarily. It became ‘build it and they will come’ – a conceit founded on the novelty of the medium: indeed, when I set up my first digital agency there were around 250 servers on the World Wide Web. Attendance and engagement could be reliably assumed.

The idea of a brand built around what the customer wants has of course changed as a result of the mediation of the internet. The customer is still at the centre of the business’s universe, but this position has evolved. Marketing, once predicated on understanding demographics, motivation and behaviour, can now be said to pivot about which channel the consumer is (or may be) consuming at that precise given point in the customer lifecycle when they are considering a step in their dialogue with the brand.

In simple terms, where once we considered marketing to be about mapping the progression from one medium to the next (TV followed press and PR, followed by Direct Marketing) this new age means we map the customer as she travels from mobile to Facebook, email to website and via SMS to shop.

In turn, this must be mapped against the decision-making cycle: first contact to second, peer review then press review, comparison sites, reminder banner, examination of features, emailed offer then shopping basket. We end up with a two-track series of events, joined at critical touchpoints which define the medium in which we pass on a specific, perfectly-timed message.

This form of marketing planning is necessarily going to be slightly different from segment to segment (a young mum’s media consumption is going to be radically different to that of a Baby Boomer), and from product to product. But the framework is sound, and applies as much to a high-value B2B proposition as to an FMCG brand – in fact we’ve used it for products as diverse as McCain oven chips, ASICS sportswear, Travelodge and the FT. What it delivers is a rational, measurable chain of custody from first contact to value. From this continuous sequence comes your brief for the messaging at each touchpoint, a detailed resource requirements list, indeed a foundation for micro and macro KPIs.

This new post-recession type of marketing is called Customer Engagement Marketing. It takes the power of the brand, dethroned by a combination of recession and digital renaissance, and refocuses it on the customer. In essence, it recognises that the customer is now the centre of everything, and that our job as businesses is not just to design our products around them but to design our marketing around them too.

Innovative marketing thinking shows results

FMCG marketing is hard isn’t it? As brands you don’t even aim your marketing to the people who buy your products from you – you’re doing the work you might argue you want the retailer to do. In addition, you’re also competing with retailers’ aspirations to become brand owners themselves, with Tesco recently launching its own non-Tesco branded ice cream and pet food.

The indirect path to sales means that traditionally it has been difficult to gauge the success of marketing activity. Because you spend three hundred thousand on a television commercial and your sales are three million, it would be useful to think your ROI was ten to one. But there are so many other factors (and costs) - PoS, real estate, press, sales promotion and so on. Attribution is nigh-on impossible.

In the age of digital, it has been frustrating that Brand Consideration, the old advertising-oriented KPI, has remained the principal yardstick for marketers. Why so disappointing?

Digital provides the ability to track everything in a communication journey - or to be more accurate, it provides the means to track every movement a consumer makes online. So we can see when they clicked on a listing in Google, visited the brand website, opted in to emails, opened, clicked and selected a voucher, redeemed it... it’s what in the finance industry is called “straight-through processing”. It means you can keep custody of a customer all the way through their journey along your online marketing process. In marketing terms this is pure eCRM.

Now, if you’re a retailer the end of this journey is a sale. You can then say with utter confidence “I put in £1, and £26 came out. People with kids are highly responsive, 19 year-olds are a waste of marketing money, so let’s stop spending money acquiring them.” But if you’re an FMCG brand and the grocer is your customer and consumers theirs, to get attribution you need to exercise a bit of creative thinking.

First you need a benchmark. You need a database of your consumers, you don’t need many, ten thousand is plenty. And you need to have some real general population sales data, segmented into meaningful customer groups. You can buy this from Nectar or Dunnhumby. You then need to segment your own customer data exactly the same way so it’s comparable. On day one you look at purchase behaviour in your base versus that in the same segment in the general population. Run your eCRM marketing campaign. Then ask the same people about their behaviour. If the behaviour in your base has changed and that of the population hasn’t, then you have effectively isolated the results of your marketing activity - you actually know what effect you have made on sales.

We’ve successfully done this for a number of major brands. If you could increase footfall by 11% or purchase frequency by 3% imagine how much extra revenue you would be generating. FMCG marketing may be indirect, but with a little creative thinking it sure can be lucrative.

Neglecting Creativity

There is a tension between old and new. And it’s not a new story. Our new media age – the one started in 1994, not the venerable namesake we’ve been reading for (just) sixteen years – has always been predicated on a tension between the advertising and virtual paradigms. These elicited two different approaches to creative thinking: one founded on engaging customers in a simple comms journey (see the TV ad, then see the press ad, then respond to the DM pack), and one founded on the novelty of the medium. This was fertile ground for upstarts finding brand new ways to compel people to come to and then engage with online brand campaigns.

Over the past dozen years this grew and, some might say, matured, so that the kind of brand idea that works beautifully in interactive media could have a traditional expression – integrated campaigns reached back to TV and creativity started to have an holistic expression, when done well. When done badly the phrase “Like us on Facebook” was simply stuck on a poster...

Social media has arguably taken the place of the TV ad. The best of them – love them or hate them – have won rafts of awards at creative festivals, and some apply real imagination to addressing the problem of consumers’ passing attention to creativity. And of course social media campaigns are cheap – or at least relatively so in the face of TV advertising’s mountainous resource and financial costs – a fact that plays well in a prolonged recession. With social substituting for the TV spot we’re almost back where we started.

There is another movement encouraged by this recession, happening in parallel. Recession pushes marketers, or at least budget holders, towards accountable activities. The rise and rise of CRM (made sexy by renaming it to eCRM) is due to customer journeys based on the prevalence of both big and small data and delivery using fully auditable digital channels. There are citable cases where £1 spent generates £26 of revenue, and where £200k of spend has built loyalty programmes with a million participants. So brands have moderated their attention towards the trackable, towards ROI-based, evidence-based marketing.

And this is where the tension comes back into the equation. We run the risk of reducing marketing to a spreadsheet, to highly defined segmented customer journeys which lead consumers inexorably from first to second to third purchase and which increment customer value in ways which impact the bottom line fantastically well. No bad thing, in principle. However without creativity, the engagement of consumers is reduced to efficiency and effectiveness and loses the thing that makes brands sing. Process and data are the lubricants to making marketing work. But creativity is the glue that makes consumers adore brands. Feeding creativity back into the mix is the big challenge for all of us. If we can get it right – and believe me we’re trying – then I believe we can build the next media age, one that once again is revolutionary.

Identifying and prioritising quick wins in email marketing and eCRM

In a recession the pressure on marketers can be intense - more bang is needed for less buck, and every penny has to be justified. Boards and Finance Directors are constrained by a natural conservatism, based on the desire in the uncertain financial climate to de-risk as much of the business as possible.

On the other hand, there's an imperative towards cheaper, more auditable marketing channels. In theory, digital presents the greatest opportunity. For example, if your company traditionally uses direct mail to communicate with your customers, there are instant savings to be made simply by switching from post to email: if you're sending 100,000 mailers out, with each costing 50p in print and postage, then the switch to email will save you an instant £40,000, and probably £45,000 the second time you do it.

But, and it's a big but, if you don't know where to start, then making this kind of switch can be fraught with costly mistakes and a fair amount of fumbling. Making decisions about what to do requires intelligence, experience and a clear view of what the expected returns are likely to be, and that's difficult for most marketers new to channels like eCRM (Email Customer Relationship Marketing). Whilst the conversion from postal to digital seems like a no-brainer, in practice, your brand and your customers may not be suited to email at all, and you may have a major flop on your hands if you make the switch without some testing. ECRM, which provides marketers with - in theory - total tracking from customer to email sent, response behaviour and eventual value, lends itself perfectly to testing and experimentation.

If you want to find out the answer to a yes/no question and you want to test it before you make a decision based on the answer, then you will need a minimum of 383 people in order to get an answer you can be 95% confident, with plus or minus 5% accuracy, reflects your entire database. So if you want to test whether you'll get the same response rate to an email version of your campaign versus your DM campaign, send the email version to 383 people in your database selected at random. If you run segmented campaigns, do the comparison between 383 people in each segment and your control. Only once you've got the answer should you roll out the change across the whole customer base... but by then you will have numbers you can show to the budget holders, which justify the change based on cost savings and minimised risk.

There are of course a number of different things you can tweak to great effect. For example, you could spend money on:

• Improving segmentation
• Improving open rates
• Improving the effectiveness of calls to action
• Switching people from call centre sales to web sales
• Expanding your database.

All of these are potentially valid ways to increase the value you get from your eCRM activities. In some instances the value can be enormous. Say you're sending a million emails a month, and getting 2,142 orders worth £50 each. Increasing your open rate from 15% to 16.5% and your click-through rate from 15% to 18.75% will take your annual revenue from nearly £1.3 million to nearly £1.8 million - an increase of around 38%. That half a million in incremental revenue is enormous - provided it costs less than the profit margin on it to make the changes required. Again, it really comes down to how you decide what to focus your energies and investment on.

In my experience, working with brands like Tesco Kitchens, Harveys, Laithwaites Wines and Sony, there are always a number of different changes you can effect. As you can probably tell, I'm a stickler for the numbers; I always want to know what levers I can pull, and what effects that will have on the revenue. Given a variety of possible improvements, all of which will come at some cost, then you clearly need to know what to focus on first. Once we have identified what these opportunities are for a given company, we will always try and attach some numbers to them, and I believe that when you are planning what you do during 2012, when your focus should be on lowering risk and increasing the returns you get from marketing, this is a critical first step.

And in uncertain, recessionary times like these, having confidence in your marketing plan is what differentiates you from your competition.

In search of a fourth dimension in segmentation

In 2008 McCain Foods, an FMCG brand, decided to embark on an eCRM (Electronic Customer Relationship Marketing) programme. The original premise was that the company wanted to establish whether, by engaging consumers using email, the effectiveness of digital could be measured in terms the advertising world understands well - brand consideration and brand preference. The eCRM programme scored some quick wins through segmentation, including an increase in brand consideration of 11%. But what really started to attract attention was the methodology used to establish and track value in terms of purchase frequency and sales revenues, through comparing like-for-like segmentation with supermarket data.

The original brief for McCain Foods' eCRM account was simple: establish whether or not digital could be used as a channel for changing brand consideration. The context was straightforward too: in an advertising ecosystem where TV is the principal means of affecting brand preference, and in which TV audience reach is becoming fragmented and diffuse, is there a new way of using digital to shift consumers' perception?

One suspects it is a common question. The McCain brief came a decade after the more basic questions about whether digital could offer a new channel for effecting sales were answered by the likes of Amazon, and five years after eCRM strategies for online retailer brands like Virgin (and in particular Virgin Holidays) demonstrated that relevant contact using pertinent, timely emails brought cross- and up-sell efficiency to the new digital retail channels. A whole universe of retailers have, and do, use eCRM to drive sales through their online stores and optimise the ongoing contact with their customers.

It's actually very easy to see the effects of an eCRM programme when you can track a customer from first moment of truth, say an eyeball on a cookie-dropping interactive ad, or a click on an Adword all the way through to lifetime value via a checkout mechanism. There is little mileage in labouring the arguments for segmentation per se (other than the observation that a three audience segmentation served by three separate email campaigns increases the effective return by 50%). That given, typically in the progression of an eCRM programme there is a straightforward series of steps that happens:

• Demographic segmentation
• Customer Touchpoint Planning (also known as Customer Touchpoint Management or Customer Journey Planning) for each of these segments
• Test emails are sent
• Results tell us something of the recipients' behaviour (both interms of reaction to calls to action as well as, further down the line, transactional and value-oriented behaviour)

The results deliver the next dimension of segmentation: behavioural, which attempts to infer likely behaviour from previous behaviour to inform messaging relevance. A new set of tailored emails is sent and the programme is refined. At this point planning insights need to be brought to bear to hypothesise motivational drivers.

Take working mum Sue. If we don't understand her motivations and drivers, we may look simply to her working mum status, infer she lacks the time to cook a proper meal, and promote the speed at which Oven Fries can be prepared. Actually, if we think more about motivation rather than circumstance, she doesn't have time to create original things to do with her young children. If she has a certain background (something we can easily establish) we may find she is motivated primarily by her kids' welfare, reinforced by her lack of time. This may offer some direction for us when we create messaging that will appeal to her directly and quickly.

These "What" and "Why" segmentation layers are key to what happens in subsequent phases. Without this "3D" approach to segmentation, all that is happening is a tightening of efficiency. And actually just the first two make for a pretty well oiled machine. But it does not help us identify motivation, and an individual's motivation may have a substantial effect on what will or won't encourage them to engage or buy. Adding the motivation element adds effectiveness.

McCain Foods took this approach. The segmentation they had already performed on their base of several hundred thousand email addresses was broad, seven in total, and attitudinal in nature. At one end there were brand resistors, at the other brand advocates. Resistors divided into two broad camps: those that were resistant to the frozen potato products category in general, and those who were consumers of the product but were resistant to the brand on the basis of price (or perceived price) differences and were likely to opt for supermarket own-brand rather than branded products.

The segmentation was tweaked to match exactly the then-commercially available datasets available from Dunnhumby describing Tesco (the UK's largest supermarket chain) shopper behaviour.

Data, as is usual for most brands, had been acquired more or less by accretion; competition entries, some bought data, some from third party partners, some from website opt-ins, voucher promotions, field marketing activities and so on.

All the data was piled into a generic segment, and as segment affinity was identified through behaviour (which links they clicked) or responses to questions (outbound questionnaires, additional promotions), records were assigned to the appropriate segment.

The usual persona development was then performed on each segment, creating a set of usable pen portraits that allowed creative to be briefed efficiently. This persona work was validated using highly tailored surveys sent to samples from each of the seven segments, and in turn this enabled the creation of subsets. At this stage the base consisted of seven broad attitudinal segments, split into demographic subsets. The persona development allowed the creation of some notional motivational drivers.

So how does this help? Well, let's take Sue Example. Sue is a category resistor. Sue went to college, and has a young child. So far so demographic. Sue is well educated, is unlikely to believe everything she is told by advertising, and she probably thinks frozen fries aren't good for us. Sue is primarily concerned about the wellbeing of her child. McCain's principal products are made of potato and sunflower oil, and nothing else. But saying "they are good for your child" over and over again is unlikely to change Sue's attitude.

But we know she has somehow ended up on the database, and if we can find a creative way of engaging her then we may have a chance. The creative execution used for Sue in the email campaign that ran for ten months used motivation as a starting point for the solution. In month one Sue received an email introducing Farmer John and his red tractor for printing out and colouring in. In month two Farmer John illustrated how a field is ploughed. In month three how potatoes are planted. In month four, the lifecycle of a potato. In month five, the painting-by-numbers included harvesting. And so on. By the end, Sue knew that if it was McCain, it was good for you. She had had some safe, fun, kitchen-table activity for her child. And her attitudes had changed.

In fact, over the first ten months of the activity, engagement with brand resistors (measured simply by open and click-through rates) went up from 14% to 63%.

Using a brand tracking agency to measure national brand consideration and brand preference scores, the campaign was benchmarked so that the effects of the eCRM activity could be established. An assumption was made that the effects of TV, in-store and outdoor advertising would be felt by consumers both in and not in the eCRM database and could therefore be factored out. That said, clearly those in the programme would naturally index higher than the national average simply by dint of being exposed to the brand's messages (let alone because it was partly a self-selecting audience) - 61% versus 20%. By the end of the first year this had changed markedly: while the national score had fallen to 12%, the brand consideration score in the eCRM base had risen to 64%. This measure, the de facto standard for measuring the effectiveness of television advertising, showed that eCRM did indeed have a place in the arsenal of high level marketing.

Taking the next logical step in measurement would, for an online retail brand, be easy. Measuring the correlation between changes in brand consideration or preference and actual sales would be straightforward given a directly auditable transactional process. For an FMCG brand whose sales are entirely through third parties (and actually, it doesn't matter whether the product is ultimately online or in physical stores; any sales chain where the sale is owned by a third party vendor has the same challenges) there are some reasonably robust estimation models for making assumptions about how well marketing drives revenues. However, direct attribution remains a real challenge. McCain Foods was in the very fortunate position of being able to benchmark changes in the attitudes and behaviour, including sales behaviour, against data available commercially from its largest third party vendor, Tesco. The segmentation exactly matched. And purchase data was available through the Tesco Clubcard shopper database, which collected information about every Clubcard holder's shopping basket at every checkout in the country. McCain could see, in detail, purchase volumes by product, by segment, by location and by value.

Address data was not available, so individual records could not be extracted and compared to the base, however McCain already had a regular programme of surveys called 'Golden Questions', which allowed interrogation of shopping habits. Normalising the response data gave a viable means of benchmarking changes over time, attributable to the motivation-based activity of the eCRM programme.

In the six months of the primary study, benchmarked against the national Tesco data, average purchase frequency went up by 3%. Matched against average transaction value, and combined with a 25% growth of the identified "brand engager" segment, sales revenue for the highest-responding segment rose by 38% - a number in seven figures.

The development of the eCRM programme became much more important to the brand, and in 2010 a website was launched to support the activity. Based on behavioural targeting principles, the site serves content based on segmentation inferred from the first few clicks on the site. So, if a visitor is known (and identified using an opt-in Cookie) the content they are served will be based entirely on the predefined customer journey (or touchpoint plan) through the comms programme, based again on tapping into motivation-based insights. If a visitor is not yet known, then the opening interfaces are designed to offer choices that require visitors to effectively self-select into tentative demographic (kids, no kids, partnered, likely to be single) and behavioural (shops for household, influences family activities) segments. Using a content management system that is integrated with the content management and eCRM broadcast and analytics suite, each visitor gets content that is appropriate to the (inferred) segmentation.

As soon as possible, visitors are encouraged to opt in to on-site tracking so the final segmentation can be nailed down and the visitor brought into the on- and off-site eCRM campaign. The driver for this is a promotion mechanic called Spud Shillings, tokens that are awarded for various activities including viewing recipe videos, downloading meal planners, sharing content using social networks including Facebook, and uploading content (which is encouraged within segments that are likely to respond using a simple model based on Forrester's Social Technographics profiling). These tokens can be redeemed for product discounts or for third party promotions, for example free cinema tickets, kids' activities or sporting events. Again, activities and selections are written back to the database to inform much more granular segmentation and so that we can analyse the effects of particular calls to action and the usefulness of trade partnerships for future planning.

So what does the future hold? The next step will be the incorporation of social media tools into the site, at a level significantly higher than simple 'share this' or 'like'-type functions. The recent launch of Google Analytics beta tools for tracking on-page activities at event level, so that clicks on a video play button or expansions of a rollover can be tracked, have provided the brand with the means to build analytics into the site to a previously impossible degree. Coupled with Facebook's API, which allows developers to bring the entire Facebook suite of tools (including share with specific friends, messaging, live chat, content distribution) onto a brand-hosted site, this means we can start to add a fourth dimension to the segmentation: advocacy. This will revolutionise what McCain and other brands involved in the testing of the tools can do with eCRM. No longer are we limited to the attributes of the customer, or the motivations behind their behaviour. The door has been opened to a deeper understanding of how specific individuals interact with their own networks, and this profound extra dimension could help grow customer bases exponentially amongst audiences we could never otherwise identify or, if truth be told, credibly or relevantly reach.

Parlaying custom into advocacy – why brands should be more pushy with their social media

It’s very rare that I get excited about a brand I become a customer of. I’m one of those people who really doesn’t engage with marketing. I’m probably not alone. And yet this is my territory, my metier – I work very hard to create engagement strategies for clients that can be demonstrated to work. I am, as it were, my own worst enemy!

So how do you, as a brand, engage me, as a disengaged person with what I’d consider to be better things to do with my social time than talk about your brand? I’ve been thinking about this in the context of two recent occasions where I have actually felt like praising a brand in public. The first occasion: on the way to a meeting I spilled coffee on my shirt. I was in the city, and I spotted a TM Lewin. I went in, bought a shirt, explained my predicament, and the manager arranged for the shirt to be pressed, in the shop, there and then. I went for a walk for five minutes and hey presto, new, unwrinkled shirt.

I tweeted about it when I got back from my meeting. TM Lewin’s tweetie person followed me and retweeted (quite rightly) my happiness with their service. Fab. The second occasion, this morning, my wife asked me if these were the shoes I normally wear with my suits. I told her they were from Loake, and that I can wak for miles in them – the very first pair of truly comfortable work shoes I’ve had. It crossed my mind to tweet that I love my Loakes, then I remembered I’m not that kind of person (so I wrote this instead).

Both are brands I’d of course love to work with. Both are brands that have built solid reputations for service and product quality. Did Loake sell me these shoes? I think actually I got them from Next, so which of those companies should be the one to do the customer engagement? And why?

One of the striking things about the TM Lewin experience is that very clearly several people from TM Lewin now follow me on Twitter (no idea what they get out of it, but feel free – twitter.com/felixvelarde), but nobody’s ever been in touch. I am clearly, or at least I was once, a brand advocate. I spread the word, in a credible, completely unprompted way. But no-one has since asked me if I’d like to join a loyalty club, or corresponded with me on Twitter or otherwise to find out how to make sure I continue to be an advocate. It’s unpushy, which is nice, but it misses an opportunity. TM Lewin’s social media strategy needs a tweak or two.

And the fact the brand doesn’t have an eCRM programme is quite surprising – all of its customers are repeat customers, we have to buy similar products regularly, we have preferences... TM Lewin could take a leaf out of Pink’s book and keep our sizes on a database, offer us things they already know we want. And so on. The opportunity to create an engaging, relevant and pretty much self-managed eCRM programme should be too good to pass up. And by creating engagement they’ll be parlaying an initial positive first impression into serious loyalty and further opportunities for advocacy.

Someone like me, who doesn’t actively engage, who almost never spontaneously advocates a brand to his friends and acquaintances, might be driven to do so more often. Certainly, I could become a very loyal customer. Since my experience I’ve bought shirts from TM Lewin, though I also buy from Pink, Hackett and others. I could be engaged more, to their exclusion. The next time I think about shoes, I will probably be thinking about buying some Loakes, though because I’m not in their eCRM programme either I have no idea where to start. Perhaps I’ll start with Next. I really can’t remember if it was Next - if not then Loake might lose the sale while I’m wending my (possibly easily distracted) way to their brand – so again, here’s an opportunity.

Brands must – must! – engage with their customers. The best brands, the ones that provide fantastic service, or fantastic products, are the ones that must do so even more – they have an opoprtunity to cement their customers after the first great experience in a way that only becomes more dilute as time goes by. It’s an opportunity that must not be missed.

Follow me on Twitter: twitter.com/felixvelarde