Digital Customer Engagement Strategies
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Questions and Answers

What is the primary action companies are taking in response to empowered consumers?

  • Increasing advertising expenditure
  • Developing big data and analytics capabilities (correct)
  • Limiting the number of products offered
  • Reducing prices on products

Which company is mentioned as an example of managing the customer journey effectively?

  • Tesla
  • Sungevity (correct)
  • SolarCity
  • Amazon

How are retailers and service providers attempting to regain control over the customer experience?

  • By anticipating customer moves and positioning themselves strategically (correct)
  • By eliminating direct competition
  • By simplifying the purchasing process
  • By enhancing customer service personnel

What role does big data play in digital customer engagement?

<p>It allows brands to understand customer preferences. (A)</p> Signup and view all the answers

What is characterized as a central aspect of the customer's experience of a brand?

<p>The company's big data capabilities (D)</p> Signup and view all the answers

Which of the following best describes the modern empowered consumer?

<p>Consumers can dictate terms and seek out options independently. (C)</p> Signup and view all the answers

What is one way companies create new value for brands and buyers?

<p>By coordinating an ecosystem of companies during the purchasing process (D)</p> Signup and view all the answers

What advantage do companies seek through the use of emerging technologies?

<p>To restore balance of power between themselves and consumers (B)</p> Signup and view all the answers

What does the app do when a customer considers a new style?

<p>It suggests additional products needed to achieve that look. (A)</p> Signup and view all the answers

What action does a customer take to see how a look appears on her face?

<p>She taps to see the complete look overlaid on her face. (D)</p> Signup and view all the answers

How does the app determine which products to recommend to the customer?

<p>By considering the customer's purchase history and preferences. (D)</p> Signup and view all the answers

What is the primary role of data analysts in managing customer journeys?

<p>To track customer interactions and analyze behavior. (D)</p> Signup and view all the answers

What do operations managers primarily oversee in the customer journey?

<p>The back-end support, including supply chain and customer service. (C)</p> Signup and view all the answers

What happens after the customer places an order?

<p>The app provides instructions on applying the makeup. (C)</p> Signup and view all the answers

How do marketers contribute to the customer journey?

<p>By providing insights and maintaining brand standards. (D)</p> Signup and view all the answers

What type of content does the app display to illustrate new makeup styles?

<p>A gallery of photos showing made-up models. (B)</p> Signup and view all the answers

When the customer opts for a complete look, what does the app do?

<p>It lists all individual products available. (A)</p> Signup and view all the answers

What is a characteristic of scrum team members in relation to their functions?

<p>They have dotted-line relationships with their respective functions. (A)</p> Signup and view all the answers

What additional feature does the app provide after the order is delivered?

<p>Proactive suggestions for new styles based on previous purchases. (B)</p> Signup and view all the answers

What is a key function of the journey product manager in the customer journey?

<p>To update the landing page with the latest status regularly. (B)</p> Signup and view all the answers

Which of the following best describes the role of product managers in the customer journey?

<p>They focus on manipulating journey variables to measure effects. (D)</p> Signup and view all the answers

Which retailer does the customer select to complete her order?

<p>Amazon (D)</p> Signup and view all the answers

What do data analysts measure regarding customer interactions?

<p>The effects of manipulating journey variables. (C)</p> Signup and view all the answers

In the context of customer journeys, who is responsible for personalization?

<p>Marketers who ensure brand standards and targeting. (B)</p> Signup and view all the answers

What primary shift in strategy are companies experiencing in consumer decision journeys?

<p>From reactive to proactive strategies (B)</p> Signup and view all the answers

What was the result of Sungevity's customized journey strategy?

<p>Their sales doubled, exceeding $65 million (D)</p> Signup and view all the answers

What is meant by a 'loyalty loop' in consumer decision journeys?

<p>A continuous engagement with a brand without considering alternatives (B)</p> Signup and view all the answers

What does the term 'streamlining the evaluation phase' imply in the context of consumer journeys?

<p>Simplifying decision-making by narrowing down choices (D)</p> Signup and view all the answers

Which factor contributed to the success of cutting-edge consumer journeys as mentioned?

<p>Creating new value for customers (B)</p> Signup and view all the answers

What characteristic defines the journey strategies developed by leading companies?

<p>They are tailored to attract shoppers and maintain engagement. (B)</p> Signup and view all the answers

What common marketing approach from the past is contrasted with modern journey strategies?

<p>Implementing coercive strategies to lock in customer loyalty (C)</p> Signup and view all the answers

Which element is crucial for companies to understand while designing consumer journeys?

<p>The significance of studying consumers' decision-making processes (D)</p> Signup and view all the answers

What is the primary purpose of engaging consumers in the extended consideration phase?

<p>To provide detailed information on installation and leasing (B)</p> Signup and view all the answers

What role do references from nearby home owners play in the customer journey?

<p>They provide additional information and reassurance about the product. (C)</p> Signup and view all the answers

How does the interaction with Sungevity impact the customer’s journey?

<p>It keeps customers locked within the loyalty loop. (D)</p> Signup and view all the answers

What happens when a consumer completes the evaluation phase?

<p>They are likely to proceed into the loyalty loop. (A)</p> Signup and view all the answers

What is one potential outcome of an effective consideration and evaluation phase?

<p>A deeper loyalty to the evaluated brand. (B)</p> Signup and view all the answers

What does the term 'loyalty loop' refer to in the consumer journey?

<p>The cycle of repeat purchases and brand engagement. (C)</p> Signup and view all the answers

What aspect of the interaction with Sungevity helps in reducing consumer apprehension?

<p>Links to instructional videos. (B)</p> Signup and view all the answers

What can occur if a consumer chooses to disregard the evaluation phase?

<p>They could end up purchasing a completely different brand. (C)</p> Signup and view all the answers

What role does the journey product manager primarily focus on?

<p>Creating customer experiences related to a product (C)</p> Signup and view all the answers

What is a key activity that the team collaborates on for enhancing customer interaction?

<p>Developing community-oriented meal planning apps (C)</p> Signup and view all the answers

How is the company’s focus shifting with respect to product investments?

<p>To improve engagement and economics of service delivery (A)</p> Signup and view all the answers

Which new essential skills must companies develop to enhance customer connections?

<p>Skills for gathering and analyzing customer data (B)</p> Signup and view all the answers

What does the cooker app service specifically provide to customers?

<p>Tracking of meal preparation and personalized recipe suggestions (A)</p> Signup and view all the answers

What type of firms does the component on customer engagement particularly benefit?

<p>Consumer-goods makers and B2B firms somewhat distant from transactions (B)</p> Signup and view all the answers

What is a major goal of the customer community the team plans to support?

<p>Creating and sharing personal recipes (A)</p> Signup and view all the answers

What primary technology team is associated with the journey product manager?

<p>Designers, programmers, and operations managers (D)</p> Signup and view all the answers

Flashcards

Empowered Consumers

Changes in technology have empowered customers to easily find and purchase what they want, often at the lowest price.

Customer Understanding

Companies that sell products or services are working to understand their customers' needs and preferences using data and analytics.

Customer Journey

The steps a customer takes from becoming aware of a product or service to finally making a purchase.

Customer Experience Management

Instead of just offering products, companies are focusing on managing the entire customer experience, from initial contact to post-sale support.

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Digital Customer Engagement

Leveraging technology and data to offer valuable and personalized interactions with customers, building strong relationships.

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Anticipating Customer Needs

Companies are using data and insights to predict customer behavior and anticipate their needs.

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Sungevity

A company that specializes in providing and installing residential solar panels.

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Ecosystem of Companies

A group of different companies working together to complete a specific task. In this case, it involves companies involved in supplying, financing, installing, and servicing solar panels.

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Algorithm

A computer program that learns from data to make predictions or decisions.

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Personalization

The process of using data about a customer's past behavior to personalize recommendations for them.

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Virtual Try-On

A feature that allows users to virtually try on products, like makeup, by overlaying them on an image of their face.

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Complete Look Recommendations

Showing a customer a curated selection of products that complete a specific style or look.

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Retailer Choice

Presenting a user with multiple retailers and letting them choose where to make their purchase.

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Style Recommendations

Recommending new products based on a customer's preferences and the preferences of similar customers.

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Application Instructions

Providing detailed instructions or tutorials on how to apply products.

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Proactive Recommendations

Using data about a customer's purchases to proactively offer new products or services tailored to their needs.

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Customer Decision Journey

A customer goes through stages of a journey before purchasing a product - awareness, consideration, purchase, etc.

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Streamlining the Decision Journey

Designing the customer journey to be so compelling that customers are naturally guided to purchase and stay loyal.

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Proactive Journey Strategy

Taking proactive steps to anticipate customer needs instead of just reacting to problems.

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Shift from Reactive to Proactive

Companies are shifting from reacting to customer issues to proactively designing engaging experiences.

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Creating Value through Journey

Companies focus on enriching customer experiences, making them valuable and desirable, which fosters loyalty.

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Studying Decision Journeys

Companies are analyzing customer decision journeys and using insights to improve their strategies.

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Evolution of Customer Engagement

Companies are reconfiguring their strategies to move beyond coercing customers to creating valuable experiences.

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Customized Customer Experiences

Companies are focusing on providing personalized customer journeys to cater to individual needs and preferences.

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Data Analyst

Tracks customer interactions, analyzes data to understand customer behavior, and measures how changes to the customer journey impact results.

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Journey Product Manager

Responsible for developing and managing the overall customer journey strategy, from initial contact to post-purchase.

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Product Manager

Manages the product roadmap, ensuring the product aligns with customer journey goals.

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Journey Strategist

Defines and oversees the execution of customer journey strategies.

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Operations Manager

Manages the operational support for each stage of the customer journey, from logistics to customer service.

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Marketer

Provides customer insights and ensures brand consistency across the customer journey.

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Scrum Teams

Teams responsible for specific phases of the customer journey (e.g., design, development, analytics, operations, marketing).

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Dotted Line Relationships

Individuals from different scrum teams collaborate to achieve shared customer journey goals.

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Consideration Phase

The stage in the customer journey where potential buyers research, compare, and evaluate different options before making a purchase decision.

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Loyalty Loop

The stage in the customer journey where a customer is fully committed to a specific brand and product, making repeat purchases and potentially becoming an advocate.

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Compressing the Consideration Phase

A strategy that aims to shorten or eliminate the consideration phase by providing customers with immediate access to relevant information and experiences.

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Directly Delivering Customers to the Loyalty Loop

The process of providing customers with direct access to the loyalty loop, bypassing the need for extensive consideration.

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Providing Relevant Information and Experiences

The ability to quickly and efficiently provide customers with information and testimonials that enhance their understanding of a product or service.

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Leveraging Testimonials

Gathering and sharing positive feedback from existing customers to build trust and confidence in potential buyers.

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Shortening the Consideration Phase

A strategy designed to expedite the decision-making process for customers by presenting them with compelling reasons to choose a specific product or service.

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Evaluation Phase

The stage in the customer journey where a customer evaluates the overall value proposition of a product or service and weighs their options before ultimately making a purchase decision.

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Journey-focused management

A focused managerial structure where teams are responsible for developing and managing a product's entire lifecycle, including services, experiences, and customer engagement.

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Experience design

The process of designing and developing services, experiences, and touchpoints that optimize a product's value and customer satisfaction.

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Economics of delivering products and journeys

A key shift in product development strategy, focusing on maximizing the economic value of delivering products and journeys to customers rather than solely maximizing sales or reducing costs.

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Gathering and analyzing customer data

The ability to gather, analyze, and leverage customer data to understand their needs, preferences, and behavior, shaping product and service development.

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Measuring product and journey investments

The process of evaluating the effectiveness of investments in products and journeys based on their economic impact, customer engagement, and overall value creation.

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Customer community

Building a community around a product or service where customers can share experiences, connect with each other, and contribute to its ongoing development.

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Study Notes

Digital Customer Engagement

  • Digital technologies have empowered consumers, allowing them to easily research, compare, order, and receive products.
  • Companies are shifting from reacting to consumer desires, to proactively managing customer journeys.
  • Companies are now creating more compelling and customized journeys for customers, managing their experience as a product.

Streamlining the Decision Journey

  • Classic Journey: Customers engage in a longer consideration and evaluation phase before purchase or moving to a loyalty loop.
  • New Journey: Customers move immediately into the loyalty loop, reducing or removing the evaluation phase.
  • Companies are becoming more adept at managing the entire customer journey, from initial consideration to purchase and loyalty.

Four Key Capabilities

  • Automation: Digitization and streamlining of steps in the journey, replacing manual processes. Example: digital check deposit, or ordering a TV.
  • Proactive Personalization: Using customer data to customize experiences. Example: Amazon's recommendations and intelligent reordering system.
  • Contextual Interaction: Adjusting the journey based on where the customer is in their experience. Example: displaying boarding passes at the airport or offering relevant product updates on a retail site.
  • Journey Innovation: Continuously finding new ways to enhance and expand customer relationships, offering new value propositions. (Example: integrating services with other providers like integrating Delta Air Lines' travel management app with Uber)

The New Journey Management Organization

  • A new organizational structure optimized for managing and improving customer journeys.
  • Crucial Roles: Chief Experience Officer (CXO) or Chief Digital Officer (CDO) is responsible for overseeing customer interactions across all functions. This role also requires an experienced Journey Product Manager (or similar) to manage specific product journeys.
  • Cross-Functional Teams: Teams including designers, developers, data analysts, operations staff, and marketers working collaboratively to streamline and enhance each stage of the client's journey.

Holding Journey Managers Accountable

  • Companies need to track both traditional and specialized metrics to evaluate the efficiency and effectiveness of a company's customer journeys.
  • Journey managers should be answerable for financial metrics (i.e. ROI of products), as well as customer satisfaction with the overall journey.
  • An important part of evaluating a journey is the way different internal company functions interact with customers.
  • The new journey manager acts as the "product manager" for a journey and has overall accountability for the product journey and ROI.

Best practices for creating and managing custom journeys

  • Companies strive not just to optimize existing journeys but also expand them with new useful steps and features.
  • It is critical for companies to understand the nuances of customer behavior in order to be proactive at providing solutions.
  • Companies need to constantly monitor and respond to patterns and behaviors on a large scale as well as the individual experiences.
  • To be successful, companies need to continuously experiment and optimize their consumer journeys.

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Related Documents

Competing on Customer Journeys PDF (Harvard Business Review, November 2015)

Description

Explore the transformation in customer engagement driven by digital technologies. This quiz highlights the shift from reactive to proactive management of customer journeys, emphasizing key capabilities like automation and personalization. Assess your understanding of how companies are adapting to streamline the decision-making process for consumers.

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