marketing key metric engagement

Topics: Marketing, Customer, Customer service Pages: 34 (5920 words) Published: December 11, 2013
August 8, 2007

Marketing’s New Key Metric:
Engagement
by Brian Haven
for Marketing Leadership Professionals

Making Leaders Successful Every Day

For Marketing Leadership Professionals

August 8, 2007

Marketing’s New Key Metric: Engagement

Marketers Must Measure Involvement, Interaction, Intimacy, And Influence by Brian Haven
with Josh Bernoff and Sarah Glass

EXECUT I V E S U M MA RY
The marketing funnel is a broken metaphor that overlooks the complexity social media introduces into the buying process. As consumers’ trust in traditional media diminishes, marketers need a new approach. We propose a new metric, engagement, that includes four components: involvement, interaction, intimacy, and influence. Each of these is built from data collected from online and offline data sources. Using engagement, you get a more holistic appreciation of your customers’ actions, recognizing that value comes not just from transactions but also from actions people take to influence others. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.

TABLE O F CO N T E N TS

N OT E S & R E S O U R C E S

2 Does The Marketing Funnel Need An
Upgrade?

Forrester interviewed 20 vendor and user
companies, including: Avenue A | Razorfish,
Bazaarvoice, Biz360, BrandIntel, BzzAgent,
TNS Media Intelligence/Cymfony, Digitas, The
Drilling Down Project, DuPont, LeapFrog, Loyalty
Builders, MotiveQuest, Nike, Organic, Procter
& Gamble, Publicis & Hal Riney, Reed Business,
UGENmedia, Umbria, and Visible Technologies.

4 Engagement: A New Perspective On
Marketing
The Elements Of Engagement
Making Sense Of Engagement
Putting It All Together
12 Engagement Enhances Customer Insight
WHAT IT MEANS

13 Engagement Redirects The Marketing
Trajectory

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© 2007, Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. To purchase reprints of this document, please email resourcecenter@forrester.com.

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Marketing’s New Key Metric: Engagement
For Marketing Leadership Professionals

DOES THE MARKETING FUNNEL NEED AN UPGRADE?
Traditionally, marketers modeled consumers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty — through what is called the marketing funnel (see Figure 1-1). The marketer’s job was to move people from the large end down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel because:

· Complexity reigns in the middle of the funnel. Awareness is still important; you need to

know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys,...
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