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      Igniting Customer Connections

      Cover design: Wiley

      Copyright © 2015 by Epsilon Data Management, LLC. All rights reserved.

      Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

      Published simultaneously in Canada.

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       Library of Congress Cataloging-in-Publication Data:

      Frawley, Andy.

      Igniting customer connections: fire up your company's growth by multiplying customer experience & engagement / Andrew Frawley.

      pages cm

      Includes index.

      ISBN 978-1-118-91670-4 (hardback); ISBN 978-1-118-91671-1 (ebk); ISBN 978-1-118-91672-8 (ebk)

      1. Customer relations. 2. Marketing. 3. Customer loyalty. I. Title.

      HF5415.5.F72 2014

      658.8'12 – dc23

      2014025630

      Preface

      Marketing Is on Fire

      Are You Basking in the Warm Glow or Getting Burned?

      You are a marketer. So am I. And I've been one for more than 30 years, giving me a unique perspective on our business and the marketplace. This book, however, is not an anecdote-filled memoir, because the old ways of marketing are over, and I'm not interested in revisiting them. I'm much more fascinated by what's happening now – and excited about helping our industry rethink some of its core tenets. I want to help marketers be more effective, drive profitability, and earn new respect within their organizations. And I want to help solve the number-one challenge that every marketer faces in our chaotic, lightning-fast marketplace – how to deploy your marketing resources to create an emotional connection with customers and engage them in new, effective ways that achieve impressive, repeatable results.

      During the past few years I have seen clients fundamentally change the performance of their marketing by simultaneously focusing their strategies on improving how customers engage with their brand and how they (and the broader base of consumers) experience the brand. They're not just observing this connection. They're proactively allocating marketing strategies and dollars to improve engagement and experience, and are ultimately improving business outcomes – including sales, share of wallet, and brand equity – dramatically.

      That said, I wanted to write a book not based on theory or simple anecdotal examples. So I have commissioned proprietary research that provides clear insight and direction in terms of how we, as marketers, should optimize the range of diverse new channels, media, and technologies to drive brand and business equity.

      I'll be introducing you to an innovative new way of inspiring and measuring major leaps in customer experience and engagement. We call it Return on Experience × Engagement, or ROE². It may look like a simple mathematical expression, but it's a powerful tool for marketers, with major implications for business outcomes such as brand and business equity. In the research section of this book (Part Two), you will see impressive results that show the power of ROE²– such as the ability to triple brand and business equity by addressing experience and engagement together.

      In short, this book does more than just describe ROE². It delivers data that proves its efficacy. And it includes first-person accounts from leaders at organizations that are using it to increase customer engagement and drive profitability.

      Ultimately, ROE² is a commonsense approach that you as a marketing professional need to have at your fingertips – no matter how large your organization or what you're marketing.

      • Part One explains the approach, why it's so different, and how it can complement return on investment (ROI), the standard but outmoded way of evaluating marketing.

      • Part Two shows how it works via research especially commissioned for this book – plus interviews with executives with firsthand insights on ROE². Here we will break down the individual components of engagement and experience and look at the predictive powers for improving your business.

      • Part Three dives more deeply into the fundamental elements of ROE²– content, channels, measurement/segmentation, and technology (in all its many permutations) – providing a clear primer for marketers who want all the details on how to make ROE² happen. This section concludes with an overview of consumer privacy issues, a key area that every marketer needs to be conversant in.

      Let me give you a simple, single-channel example of Experience × Engagement and why a new metric like ROE² is so important. I have the privilege and opportunity to work with some of the most sophisticated retail and e-commerce e-mail marketers in the world. During the holiday season, many will e-mail their customers daily or multiple times a day. This approach often drives engagement in the form of opens and clicks that lead to short-term sales. However, over the past few years we have seen that opt-out rates increase as well during this period. Research has shown that consumers don't like the experience with a brand that is filling up their mailbox. So what is the trade-off

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