Tag Archives: KPI

Harnessing the Secrets of Successful Customer Engagement

Harnessing the Secrets of Successful Customer Engagement

GUEST POST from Shep Hyken

What is customer engagement? A Google search will provide plenty of definitions to consider. Here are a few to give you a clear understanding:

  • Qualtrics defines it as “the emotional connection between a customer and a brand.”
  • A recent Forbes article defines it as “building relationships with customers at every touch point.”
  • Wikipedia offers numerous definitions from multiple sources, including this one from Forrester from 2008: “creating deep connections with customers that drive purchase decisions, interaction, and participation over time.”

All of these (and more) are correct. They work. As a modern marketer, the new question is about how to deliver on the foundational definition of customer engagement using current tools and technology.

I had a chance to do an Amazing Business Radio interview with Spencer Burke, SVP of Growth at Braze, a customer engagement platform that offers messaging solutions to multiple communication channels. We discussed the innovative ways marketers and customer experience (CX) leaders are taking customer engagement to new levels.

Burke simplified the marketing and customer engagement definition to four words: connecting brands to consumers. That’s really the job of a marketer. The result is that customers want to buy, come back and buy more.

It may sound simple, but there are obstacles to the optimal customer engagement experience. According to Burke, “Marketers have a lot on their plate. It’s not easy to be creative when there’s an emphasis on Key Performance Indicators (KPIs) and time-draining routine tasks.”

To support this statement, Burke shared findings from the 2024 Global Customer Engagement Review, in which Braze interviewed 1,900 marketing decision makers to learn about challenges and opportunities in the marketing and CX industries.

Marketing used to be about finding creative ways to engage with customers, but today’s marketers are burdened in four areas:

    1. Too much emphasis on KPIs: Forty-two percent of marketers surveyed felt KPIs inhibit a focus on creativity. Numbers/KPIs are important. After all, you can’t manage what you don’t or can’t measure (Peter Drucker). But if they get in the way of creativity, then consider pushing the numbers aside for a moment—or maybe just focus on one or two KPIs.
    2. Too many routine tasks: Forty-two percent feel too much time is spent on “business as usual execution and tasks,” leaving less time for creative work. If there’s something that can be automated, then automate it. Don’t waste any employee’s time—especially when they are trying to be creative—with tasks and processes that drain energy and take up too much time.
    3. Lack of technology: Forty-one percent feel that a lack of technology hinders the execution of creative ideas. This is where Artificial Intelligence (AI) can support the process. How can AI make a creative marketer’s life easier? There are many, many ways!
    4. Return on Investment (ROI) is hard to track: Forty percent said it’s hard to demonstrate the ROI impact of creativity. Leadership wants ROI. Often, they demand to know the ROI before a project starts. You can’t fight this. Start with the end in mind. Understanding the benefits of the work that is to be performed is important to getting leadership to buy in and support the marketing and customer engagement efforts.

AI should be used as a tool to free up time and let creatives be creative, according to Burke. For example, he says, “When you know what you want to say but haven’t been able to articulate it just right, it’s a huge confidence booster to know you can drop the message into an AI interface to get feedback and suggestions for improvement.” The time savings are substantial, but more importantly, the marketer’s focus gets to be on creating, not finishing.

Burke also mentioned how important personalization is in today’s customer engagement strategy. There’s a tremendous amount of data on customers, and brands must be thoughtful in how they manage that data. AI can help interpret the data and deliver insights about customers that can be useful. For instance, Netflix learns its customers’ viewing habits and suggests TV shows and movies. Amazon remembers what its customers have bought in the past and can accurately predict when the customer should order more. The best brands use the data AI provides to create a better experience. But, it’s a balancing act. Too much personalization creates “the creepiness factor,” where being too detailed or specific has the opposite effect of what marketers want to achieve.

Astha Malik, Chief Business Officer of Braze, says, “Today’s marketers face growing expectations from increasingly connected consumers, who want value in exchange for their attention. In response, we see a growing number of marketers tapping into first-party data and utilizing AI to ignite creativity and craft personalized experiences that both resonate with consumers and foster brand loyalty.”

In addition, brands need to be consistent with their personalization. You can’t recognize a customer one time and not know them the next time. That defeats the entire personalization campaign.

All of this takes us back to Burke’s original definition of customer engagement, which is connecting brands to consumers. That connection must be consistent and accurate. There are more and better tools than ever to help create an optimal customer engagement experience, one interaction at a time. The closer you can get to meeting customers where they are, when they need you and provide value in those interactions, the more likely they will see you as a trusted brand and say, “I’ll be back!”

Image Credits: Pexels, Shep Hyken

This article originally appeared on Forbes.com

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OKRs vs. KPIs: Choosing the Right Framework for Innovation

OKRs vs. KPIs: Choosing the Right Framework for Innovation

GUEST POST from Art Inteligencia

In the world of innovation, measuring success is as crucial as the innovation process itself (a powerful one being The Eight I’s of Infinite Innovation from Braden Kelley). Among the most popular tools for tracking progress are OKRs (Objectives and Key Results) and KPIs (Key Performance Indicators). Though they often appear interchangeable, each serves distinct purposes and can significantly impact the direction and success of innovation initiatives. So, how do we choose the right framework for fostering innovation?

Understanding OKRs and KPIs

OKRs are a framework that sets ambitious objectives linked with quantifiable key results. Invented by Intel and popularized by Google, OKRs encourage stretching beyond comfort zones to achieve groundbreaking advances.

“OKRs are not about spreadsheets. They are about focused and inspired work.” – John Doerr

KPIs, on the other hand, are metrics used to evaluate the performance of organizations, employees, or particular activities. They are generally well-defined and are used to track targets and processes that are stable and need consistency.

Case Study 1: Google – The Triumph of OKRs

Google’s remarkable growth and innovation can, in part, be attributed to its successful use of OKRs. Larry Page and Sergey Brin adopted OKRs from Intel, aiming to balance daunting aspirations with precise actions.

In a pivotal instance, Google aimed to “organize the world’s information and make it universally accessible and useful.” The associated key results included increasing the number of pages indexed and enhancing user satisfaction through a streamlined user interface. This clear alignment of bold objectives and tangible results spurred innovation without stifling creativity, showcasing the transformative power of OKRs.

Case Study 2: A Traditional Manufacturer – The Stability of KPIs

Consider a traditional manufacturing company focused on operational efficiency and quality control. Here, KPIs are indispensable for maintaining precision and reliability in production.

The company aimed to reduce waste and improve product quality. By utilizing KPIs such as scrap rate, production downtime, and customer defect rate, they implemented incremental improvements that led to significant cost savings and enhanced quality.

This structure allowed them to consistently meet customer expectations and stay competitive, showcasing how KPIs serve businesses prioritizing stability and incremental innovation.

When to Use OKRs

OKRs shine in environments where transformative change is sought. Think of startups, tech firms, or any company looking to disrupt the status quo. OKRs encourage risk-taking, freeing teams to explore uncharted territories. They are ideal for organizations that embrace experimentation and are willing to pivot based on insights and discoveries.

When to Use KPIs

KPIs are optimal for situations that require reliability, consistency, and precise tracking. They fit well in established processes where steady improvement and performance monitoring are crucial. Industries like manufacturing, logistics, or healthcare, where the margin for error is minimal, benefit greatly from KPIs.

Integrating OKRs and KPIs for Holistic Innovation

Rather than choosing between OKRs and KPIs, consider blending them. Organizations can leverage the ambitious spirit of OKRs while grounding them with the stable, measurable metrics of KPIs.

For instance, a tech company could set ambitious OKRs to innovate a new product line with radical features, using KPIs to monitor development timelines, budget adherence, and defect rates. Such integration ensures a balance between aspiration and accountability, driving sustainable innovation.

Conclusion

The choice between OKRs and KPIs ultimately hinges on your organizational objectives, industry demands, and desired outcomes. Understanding their intrinsic differences and strategic applications is paramount in optimizing innovation effectiveness.

By carefully considering your framework choice and exploring the potential of combining these tools, businesses can foster an innovative culture that is both adventurous and accountable, paving the way for sustained success.

Innovation thrives on clarity, ambition, and measurable outcomes. Whether through OKRs, KPIs, or a tailor-made blend, harnessing the right framework is key to nurturing the next breakthrough.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Measuring the Impact of Design Thinking on Business Success

Measuring the Impact of Design Thinking on Business Success

GUEST POST from Art Inteligencia

Design Thinking has rapidly become a cornerstone of modern business strategy, promising to foster innovation and solve complex problems through a human-centered approach. But how can businesses measure the real impact of Design Thinking on their success? In this article, we will explore key metrics and provide two compelling case studies to illustrate how companies have achieved measurable success through Design Thinking.

Key Metrics for Measuring Impact

To assess the impact of Design Thinking, organizations should consider a combination of quantitative and qualitative metrics. Here are some critical metrics to consider:

  • Customer Satisfaction: Feedback scores and net promoter scores (NPS) before and after Design Thinking initiatives.
  • Time to Market: Reduction in the time it takes to develop and launch new products.
  • Revenue Growth: Increase in sales and market share attributable to new product innovations.
  • Employee Engagement: Improvement in employee satisfaction and retention rates.
  • Innovation Pipeline: The number and quality of new ideas entering the development phase.

Case Study 1: IBM

IBM, a global technology leader, adopted Design Thinking to accelerate innovation and enhance customer experiences. By integrating Design Thinking into their processes, IBM achieved significant results.

  • Customer-Centric Solutions: IBM focused on understanding the problems and needs of their users, leading to more intuitive and effective software solutions.
  • Shortened Development Cycles: The use of iterative prototyping and user testing reduced the time required to bring new products to market by 50%.
  • Increased Revenue: IBM saw a significant rise in revenue from new products designed using Design Thinking principles, contributing to a 20% increase in quarterly earnings.

IBM’s success demonstrates how adopting a human-centered approach can yield substantial benefits, both in terms of customer satisfaction and financial performance.

Case Study 2: Airbnb

Airbnb leveraged Design Thinking to transform their platform and enhance the user experience. This pivot was critical at a time when Airbnb faced stagnation and increased competition.

  • Empathy Mapping: Airbnb conducted extensive user research, including empathy mapping, to understand the pain points of both hosts and guests.
  • Prototype Development: They developed and tested numerous prototypes rapidly, iterating based on user feedback.
  • User-Centric Interface: The redesign of the platform led to a more user-friendly interface, resulting in improved engagement and booking rates.
  • Business Growth: Airbnb’s revenue surged as a result of the enhanced user experience, helping them achieve a valuation of over $100 billion.

The transformation of Airbnb highlights the power of Design Thinking in driving substantial growth and user engagement for digital platforms.

Conclusion

Design Thinking is more than just a buzzword; it’s a powerful methodology that can drive business success across various metrics. By focusing on human-centered design, organizations like IBM and Airbnb have not only improved their products and services but also achieved remarkable financial performance and market positioning.

To measure the impact of Design Thinking effectively, businesses should consider a blend of customer satisfaction, time to market, revenue growth, employee engagement, and the robustness of their innovation pipeline. As these case studies show, the power of Design Thinking lies in its comprehensive approach to problem-solving and its ability to transform challenges into opportunities for growth and success.

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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