IGNITING CUSTOMER CONNECTIONS:
Fire Up Your Company’s Growth
by Multiplying Customer
Experience & Engagement
ACADEMIC SUPPLEMENT 2014—2015
Part One: Connect with Your Customers – Now
Chapter 1: The New Marketing Landscape
Chapter 2: Customer Connections
Chapter 3: Atomic Moments of Truth
Chapter 4: The Amplification Effect
Chapter 5: A Closer Look at ROE2
Chapter 6: Strategies for Transformation
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PART ONE: CHAPTER 1
Chapter 1: The New Marketing Landscape
“To survive here, you need to be able to
deal with complexity and speed.”
PART ONE: CHAPTER 1
Chapter 1: Key Terms
• Touch points
• Big Data
• Tectonic Shifts
• Decentralization
• “Always On”
• Decision Space
• Economies of One
• Omnichannel
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PART ONE: CHAPTER 1
Chapter Overview
• The marketplace is fast, fragmented and fueled by empowered consumers
• Engaging with today’s consumers means meeting them on their terms
• Omnichannel consumers are the new norm
• Consumer-driven content has a major impact
• The new marketplace demands new marketing approaches
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PART ONE: CHAPTER 1
Apply the Reading
• Define the five major Tectonic Shifts.
• Discuss the ways these major shifts have changed the way information is
produced and accessed.
• What is an empowered consumer?
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PART ONE: CHAPTER 2
Chapter 2: Customer Connections
“The basic concept remained unchanged
for thousands of years. Until now.”
PART ONE: CHAPTER 2
Chapter 2: Key Terms
• Hierarchy of Connections
• Experience
• Engagement
• Upstream Indicators
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PART ONE: CHAPTER 2
Chapter Overview
• There are many levels of customer connections—brands want closer/deeper
connections
• EXPERIENCE reflects the emotional connection– how customers feel
• ENGAGEMENT reflects actions (buy, like, other)– what consumers do
• Bringing together these two elements creates positive business outcomes
• The combination isn’t incremental, its exponential– ROE2
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PART ONE: CHAPTER 2
Apply the Reading
• What are the key components of a customer “connection”?
Explain how they work together and individually.
• Compare and contrast Experience and Engagement.
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PART ONE: CHAPTER 3
Chapter 3: Atomic Moments of Truth
“They’re small, plentiful, and have the
power to make or break your brand.”
PART ONE: CHAPTER 3
Chapter 3: Key Terms
• Atomic Moments of Truth
• Value
• Customer Awareness
• Content Management
• Data Management
• Identification
• Real-Time Decisioning
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PART ONE: CHAPTER 3
Chapter Overview
• Atomic moments of truth inspire consumers to take action
• The right offer, right time and personalization will inspire action
• Marketers can understand and impact Experience x Engagement, and create
or destroy value
• Marketers should align their investment in a customer to the “value in play”
• Inspiring atomic moments of truth requires deep customer knowledge
• Atomic moments of truth are happening all the time
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PART ONE: CHAPTER 3
Apply the Reading
• Explain the key enablers
necessary to manage Atomic
Moments of Truth. Which do you
feel is most important? Why?
• Define “value” in the context of
marketing.
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PART ONE: CHAPTER 4
Chapter 4: The Amplification Effect
“Amplify the power of
Experience x Engagement.”
PART ONE: CHAPTER 4
Chapter 4: Key Terms
• Experience x Engagement
• Actionable Brand Ideas
• ROI
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PART ONE: CHAPTER 4
Chapter Overview
• Experience x Engagement delivers an amplified result
• The combination of these two consumer behaviors is powerful
• Time is a critical element of optimizing experience and engagement
• Actionable, informed business ideas inspire action
• ROI is an inherently limited way to measure results
• ROE² addresses the challenges of measuring results in a digital world
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PART ONE: CHAPTER 4
Apply the Reading
• Does timing have an impact on Experience x Engagement? If so, what is it?
• What are the shortcomings of ROI?
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PART ONE: CHAPTER 5
Chapter 5: A Closer Look at ROE2
“Get a clear summary of ROE2 – and a formere-mortals look at the math behind it.”
PART ONE: CHAPTER 5
Chapter 5: Key Terms
• ROE2
• Return
• Multiple Regression Analysis
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PART ONE: CHAPTER 5
page 21
PART ONE: CHAPTER 5
Chapter Overview
• ROE2 begins with an actionable brand idea
• Return is defined in terms of desired business outcomes: brands and business
equity
• Linkage between experience and engagement is established with multiple
regression analysis
• Marketing is usually qualitative, but ROE2 is quantifiable
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PART ONE: CHAPTER 5
Apply the Reading
• Explain how ROE2 can be used to quantify marketing strategies.
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PART ONE: CHAPTER 6
Chapter 6: Strategies for Transformation
“Start igniting customer connections now
with clear, achievable next steps.”
PART ONE: CHAPTER 6
Chapter 6: Key Terms
• Decision Space
• Customer Infrastructure
page 25
PART ONE: CHAPTER 6
Chapter Overview
• In order to transform existing strategies, rethink measurement
• There are different paths and influences that lead customers to buy
• Measurement should be consistent, no matter the customer, channel or
content
• Technology is only an enabler of change, not the change itself
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PART ONE: CHAPTER 6
Apply the Reading
• Identify two ways a company could organize their customers to best create
connections. Which method do you feel is most effective?
• In what ways can technology help marketers? How can it hurt them?
page 27
Part Two: ROE2 Research and Insights
• Chapter 7: Executive Insights: Dunkin Donuts
• Chapter 8: ROE2 in the Grocery Aisle
• Chapter 9: Executive Insights: JCPenney
• Chapter 10: ROE2 in the Hospitality Industry
• Chapter 11: Executive Insights: Angie’s List
• Chapter 12: ROE2 Hits the Road
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PART TWO: CHAPTER 7
Chapter 7: Executive Insights: Dunkin’ Donuts
“Everything that touches the consumer
defines their experience.”
PART TWO: CHAPTER 7
Case Study: Key Findings
• Even if traditional marketing methods are effective, omnichannel approaches
can enhance a brand’s communication with customers
• Everything that touches a customer defines their experience
• Integrate across all consumer touch points
• Content is key to driving Engagement x Experience. It’s important to link and
leverage content across channels
• Mobile is important, since it keeps the customers connected everywhere
• Big Data is an enabler, but does not drive results by itself
page 30
PART TWO: CHAPTER 7
Critical Thinking
In your opinion, what was the key component of the Dunkin’
Donuts strategy that lead to the company’s success?
Explain why.
page 31
PART TWO: CHAPTER 8
Chapter 8: ROE2 in the Grocery Aisle
“Do emotion and experience
influence grocery consumers?”
PART TWO: CHAPTER 8
Impact of Emotion on Business Outcomes
page 33
PART TWO: CHAPTER 8
Chapter Overview
• Grocery competition is about branding
• Many consumers are committed to specific brands because they expect a
unique experience
• Customer satisfaction is an insufficient measure of brand and business equity
• Brand preference is more of a function of feelings than practical
considerations
• Trust = share of wallet
page 34
PART TWO: CHAPTER 8
Critical Thinking
Explain why loyalty
programs are so successful
in the grocery business,
compared to other
industries.
page 35
PART TWO: CHAPTER 9
Chapter 9: “Executive Insights: JCPenney”
“Understanding core customers
is critical to our future.”
PART TWO: CHAPTER 9
Case Study: Key Findings
• A loyalty program identifies your best and most valuable customers—VIPs
• Store execution is the key element to improving sales experience
• Creating new levels of membership helps to personalize communication
• Omnichannel customers contribute three times the value of other customers
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PART TWO: CHAPTER 10
Critical Thinking
Why was JCPenney’s loyalty program so successful? Are
there ways it could have been even better? Explain.
INVESTIGATE: Think of some other brands that have loyalty reward
programs, and ask your peers and family members if they use them. If they do,
investigate what convinced them to join, the rewards they get, and the terms of
their membership. If they aren’t a member—question them further. Find out
what deterred them from joining the program. Are there any common trends?
page 38
PART TWO: CHAPTER 10
Chapter 10: ROE2 in the Hospitality Industry
“Does experience impact
how consumers choose hotels?”
PART TWO: CHAPTER 10
Drivers of Brand and Business Equity (Hospitality)
page 40
PART TWO: CHAPTER 10
Chapter Overview
• Disparities between high and low-emotion customers are significant
• Experience is the driver of action
• It all starts with alignment of image and personal values
• Loyalty programs in hospitality often fail to deliver profitable returns, but can
help create emotional connections and build equity
page 41
PART TWO: CHAPTER 10
Critical Thinking
Explain the significance of a
customer’s emotional
experience with a hotel.
Does it have a larger effect
in this industry than others?
Explain why or why not.
page 42
PART TWO: CHAPTER 11
Chapter 11: Executive Insights: Angie’s List
“We treat our members like they’re
part of an exclusive club.”
PART TWO: CHAPTER 11
Case Study: Key Findings
• Experience is a critical determinant of whether Angie’s List members will
work with a service provider again
• Delivering a great experience is even more critical when serving members
who have paid to join
• Gathering and analyzing member data on an ongoing basis helps deliver
better experiences and deeper engagement
• Omnichannel outreach is critical in connecting with Angie’s List members and
delivering the capabilities they want, quickly and easily
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PART TWO: CHAPTER 11
Critical Thinking
What makes Angie’s List business model unique? How does
data support the model?
page 45
PART TWO: CHAPTER 12
Chapter 12: ROE2 Hits the Road
“What drives consumer behavior
when buying a car?”
PART TWO: CHAPTER 12
Chapter Overview
• Consumers repurchase cars from trustworthy brands that align with their
personal values
• Consumers service their vehicles at the dealership if they respect and trust
the staff
• People buy for emotional reasons and use logic to rationalize their choices
• Its all about trust
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PART TWO: CHAPTER 12
Critical Thinking
What could a car dealership
do to grow consumer trust?
How might they lose it?
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Part Three: A ROE2 Primer
• Chapter 13: Content
• Chapter 14: Channels
• Chapter 15: Measurement and Segmentation
• Chapter 16: Technology
• Chapter 17: Big Data
• Chapter 18: Ad Tech
• Chapter 19: Putting Technology to Work
• Chapter 20: Consumer Privacy
page 49
PART THREE: CHAPTER 13
Chapter 13: Content
“Connecting with more customers starts
with more (and more relevant) content.”
PART THREE: CHAPTER 13
Chapter 13: Key Terms
• Content
• Consumer Assigned Value
page 51
PART THREE: CHAPTER 13
Chapter Overview
• Compelling content is the key component of ROE2 because it drives emotion
• Certain content is more valuable than others
• Effective content should rise above all “clutter and noise” and transcend its
original marketing mission
• Creating good content is an art
page 52
PART THREE: CHAPTER 13
Apply the Reading
• How can technology aid the creation and dissemination of content?
• What is the difference between advertising and content marketing?
• Explain some ways content can “transcend” time.
page 53
PART THREE: CHAPTER 14
Chapter 14: Channels
“More paths than ever lead to your audience–
but reaching them is just the beginning.”
PART THREE: CHAPTER 14
Chapter 14: Key Terms
• Channels (general)
• Acquisition Channels
• Direct Channels
• Social Channels
• Internet of Things
page 55
PART THREE: CHAPTER 14
Chapter Overview
• Consumers use multiple channels leading up to a well-informed purchase
• Todays marketers face the challenge of coordinating channels and ensuring
consistency
• Consumers want to be in control
page 56
PART THREE: CHAPTER 14
Apply the Reading
• Compare and contrast an acquisition channel and a direct channel.
• Explain one of the key channel trends. What are its implications?
page 57
PART THREE: CHAPTER 15
Chapter 15: Measurement and Segmentation
“Segment your customers and measure
your results, accurately and consistently.”
PART THREE: CHAPTER 15
Chapter 15: Key Terms
• Individual Campaign Metrics
• Channel Metrics
• Lifetime Value
• Investment Allocation
• Share of Wallet (SOW)
page 59
PART THREE: CHAPTER 15
Chapter Overview
• There is movement from measurement to segmentation
• Each metric has its place
• The digital and social landscape provides new ways to capture data
• Prioritize from data by defining goals
page 60
PART THREE: CHAPTER 15
Apply the Reading
• Compare and contrast measurement and segmentation. Is one more effective
than another? Explain.
page 61
PART THREE: CHAPTER 16
Chapter 16: Technology
“The technologies that empower ROE2 are
available, implementable and incredible.”
PART THREE: CHAPTER 16
Chapter 16: Key Terms
• Targeting
• Data Science
• Real-Time Decisioning
• Machine Learning
• Content Management Systems (CMS)
• Marketing Cloud
page 63
PART THREE: CHAPTER 16
page 64
PART THREE: CHAPTER 16
Chapter Overview
• Key technology enablers of ROE2 can be categorized by capability
• Without a consistent method of evaluating success, originations cannot move
forward
• Marketing clouds allow for better/easier marketing
page 65
PART THREE: CHAPTER 16
Apply the Reading
• What capabilities must be in place in order to implement ROE2? Why?
• Compare and contrast the three types of general analytics.
page 66
PART THREE: CHAPTER 17
Chapter 17: Big Data
“It’s an enabler, not a strategy. ”
PART THREE: CHAPTER 17
Chapter 17: Key Terms
• Big Scale
• Internet of Things
page 68
PART THREE: CHAPTER 17
Chapter Overview
• Big Data helps marketers expand the number of customer attributes they can
capture and analyze
• Next generation segmentation strategy involves a range of structured and
unstructured data
• Big Data allows for quick decision making
page 69
PART THREE: CHAPTER 17
Apply the Reading
• Explain the advantages of using Big Data in marketing. Are there any
disadvantages?
• How will the Internet of Things impact the collection of Big Data in the
future?
page 70
PART THREE: CHAPTER 18
Chapter 18: Ad Tech
“Marketing isn’t about an ad or a technology
platform. It’s about communicating with a consumer
in a personal way.”
PART THREE: CHAPTER 18
Chapter 18: Key Terms
• Intelligent Anonymity
• Programmatic/Audience-Targeted Media
• Personally Identifiable Information (PII)
• Omnidata
page 72
PART THREE: CHAPTER 18
The Ad Tech Ecosystem
page 73
PART THREE: CHAPTER 18
Chapter Overview
• Marketing today is about connecting with consumers in a personal and
relevant way
• Using data requires supporting technologies
• Technology allows for smaller, more incremental deliverables
page 74
PART THREE: CHAPTER 18
Apply the Reading
• Explain how data in online marketing is regulated. Do you feel there should
be more regulations? Or are current methods sufficient?
page 75
PART THREE: CHAPTER 19
Chapter 19: Putting Technology to Work
“Strategies for implementing ROE2
technology successfully.”
PART THREE: CHAPTER 19
Chapter 19: Key Terms
• On demand model
page 77
PART THREE: CHAPTER 19
Chapter Overview
• Implementing technology is not easy
• Strategies should be broad, yet consistent
• IT should be heavily involved in the marketing mix
• Technology is an aid, not a solution
page 78
PART THREE: CHAPTER 19
Apply the Reading
• This text suggests five key strategies to help implement technology into a
marketing strategy. Which do you feel is the most important? Why?
page 79
PART THREE: CHAPTER 20
Chapter 20: Consumer Privacy
“Address this critical issue with transparency,
knowledge, respect and responsibility.”
PART THREE: CHAPTER 20
Chapter 20: Key Terms
• Transparency
• Respecting data
• Marketing Data Summary
page 81
PART THREE: CHAPTER 20
page 82
PART THREE: CHAPTER 20
Chapter Overview
• Consumer privacy is an issue that should be addressed with transparency and
respect
• Privacy standards are evolving through self- regulation
• Data should be used to gain insight of consumer preferences—nothing more
page 83
PART THREE: CHAPTER 20
Apply the Reading
• Is data collection expensive? What effect does the cost of data have on the
industry?
• Explain why privacy is a growing issue in the field of marketing. How should it
be addressed?
INVESTIGATE: Privacy is a constant issue in the field of digital
marketing. Look online for articles regarding the regulation of
marketing data and provide your thoughts on the future of privacy
regulation. Do you agree with current legislation? If so, why? If not,
what should be changed about privacy restrictions? Defend your
opinion, using specific examples and articles as support.
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Supplemental Readings
The digital marketing space is rapidly evolving. Information that was published
just minutes ago might already be outdated. Keep up with industry trends on the
following sites:
• AdAge.com
• AMA.org
• CMO.com
• DMA.org
• Forrester.com
page 85
Beyond the Classroom
Project A: Engagement Critique
• Select a popular retail brand and track its marketing efforts on all direct
channels, over a set period of time (determined by course instructor). Using
ROE2 as method to quantify marketing strategies, evaluate your brand’s ability
to build brand and business equity. Is it succeeding? In a well organized
report, analyze all reasons why or why not.
page 86
Beyond the Classroom
Project B: Start from Scratch
• Invent and design an imaginary retail brand of your own. Outline a marketing
strategy that accommodates the complexities of the current marketing
landscape, making use of all channels, technologies and new resources
available today. Emphasize how you’re going to address “atomic moments of
truth” with your customers. In a detailed report, summarize your company’s
strategy and convince readers exactly why your brand will succeed.
page 87