The Age of the 24/7 Consumer Creates Emergence of Customer Engagement Agencies By Nancy Pekala The age of the 24/7 consumer is here to stay. Gone are the days of consumers as passive observers of brands. Today’s customers are actively participating in shaping brands. The result is an important shift for marketers to a customer engagement agency model. This new model will require marketers to engage in two-way conversations with customers regardless of the channel. Engagement marketing allows companies to place the customer at the center of the marketing process – integrating data from the on and offline world to create a 360 degree view of the customer in order to truly engage with them at every step of the customer lifecycle. Michael Fisher, senior vice president sales & marketing, the Americas, at Alterian, an international integrated marketing platform, spoke with Marketing Matters about the emergence of Customer Engagement Agencies and their impact on the industry. Recently, Alterian joined forces with several agency partners including RAZOR, Tribal DDB and Targetbase to address this shift. Marketing Matters: How can agencies and marketers, in general, prepare and position themselves to succeed within this new customer engagement model? Michael Fisher: The Customer Engagement model requires the appropriate level of integration across data, technology, analytics, creative, strategy, execution and people. For example, technologists must understand enough of what creative does to ensure the optimal delivery of content to the customer. Marketers and Agencies alike need to leverage competencies in all areas to enable the “customer conversation.” Without the linkage and integration of data, analytics technology and skills marketers run the risk of talking at customers rather than with customers, and they run the risk of the customer shopping or finding new relationships. MM: From a structural and tactical standpoint, how does the customer engagement agency model differ from the traditional model of today? June 26, 2009 Marketing Matters Fisher: Today’s Customer Engagement Agency links the competencies around strategy, analytics, creative, technology, and execution—dynamically. Such dynamic linkages allow for seamless hand-off(s), and fewer territorial issues that competency silos present. Structurally, Customer Engagement Agencies through the kinds of integration outlined in the graphic below will enable the marketer to access to comingled skills and competencies that the marketer would traditionally source through multiple service providers. MM: What talent and skill sets are required for an agency to effectively become customer engagement-focused? Fisher: Customer Engagement Agencies take a multi-dimensional approach to marketing across all channels to cost-effectively produce rich, relevant experiences through unique capabilities that combine three traditionally disparate skills and deliverables: 1. Creative capacity to develop persuasive content. 2. Technical and multi-channel data expertise to deliver messages via multiple channels. 3. Data-driven Intelligence driving cross channel/segment dialog enabling positive financial impact through the proper selection of the right message for the right audience at the right time. June 26, 2009 Marketing Matters The Customer Engagement Agency looks to fill the gap by focusing skills on cross functional delivery that is always on and always focused on the customer. MM: Will this new model necessitate an increased need for agency marketers to understand and apply measurement methods, particularly in the areas of sentiment and engagement? Fisher: New measurement opportunities are immediately presented to the marketer by the Customer Engagement Agency. As Trae Clevenger, vice president, strategy & innovation at Targetbase, a leading Customer Engagement Agency, notes “Analytics and measurement are at the very core of the Customer Engagement Agency. Optimizing an integrated, multi-channel approach demands the ability to quantitatively demonstrate the relationship between engagement and sales and the ability to identify patterns of engagement. At the aggregate level, the relationship between engagement and sales drives budgeting decisions and communication strategies. At the customer level, patterns of engagement are determined to drive customized, optimal communication and content.” MM: What role will targeted, traditional marketing play in this new agency model? Fisher: Traditional marketing plays a significant role in the Customer Engagement Agency, as the direct disciplines, approaches to attribution and accountability that marketers have grown to rely on from traditional marketers will be leveraged across all competencies delivered by the Customer Engagement Agency. MM: In what ways will the emergence of this new model change client expectations of agencies? Fisher: Accountability in TV in Radio is difficult to deliver for the traditional agency. Alternatively, the Customer Engagement Agency identifies where and why media investments are made, and will identify alternative media, and investment strategies based on holistic multi-channel empirical measurement disciplines. For more information on Alterian and its integrated marketing platform, visit www.alterian.com June 26, 2009 Marketing Matters