9.14 Customer Engagement

(Harmeling et al. 2016) visualize the mechanism of how customer engagement affects firm performance

(V. Kumar et al. 2010) categorize 4 components of a customer’s engagement value:

  • Customer lifetime value (the customer’s purchase behavior)

  • Customer referral value (incentivized referral of new customers)

  • Customer influencer value (customer’s behavior to influence other customers)

  • Customer knowledge value (value added to the firm by feedback from the customer)

(Bucklin and Sismeiro 2003)

  • browsing behavior modeled form clickstream data

  • visitors’ propensity to browse is a function of the depth of a site’s visit and the number of repeat visits.

  • aggregate site metrics cannot capture the individual browsing behavior.

(Reimer, Rutz, and Pauwels 2014)

  • Different customer segments respond differently to marketing activities (e.g., coupon promotions, TV, radio, print, Internet ads)

  • Different from consumer packaged goods, heavy users of digital music products are less sensitive to price and more sensitive to TV ads, while light users are price sensitive and more likely to opt out of targeted communication.

References

Bucklin, Randolph E., and Catarina Sismeiro. 2003. “A Model of Web Site Browsing Behavior Estimated on Clickstream Data.” Journal of Marketing Research 40 (3): 249–67. https://doi.org/10.1509/jmkr.40.3.249.19241.
Harmeling, Colleen M., Jordan W. Moffett, Mark J. Arnold, and Brad D. Carlson. 2016. “Toward a Theory of Customer Engagement Marketing.” Journal of the Academy of Marketing Science 45 (3): 312–35. https://doi.org/10.1007/s11747-016-0509-2.
Kumar, V., Lerzan Aksoy, Bas Donkers, Rajkumar Venkatesan, Thorsten Wiesel, and Sebastian Tillmanns. 2010. “Undervalued or Overvalued Customers: Capturing Total Customer Engagement Value.” Journal of Service Research 13 (3): 297–310. https://doi.org/10.1177/1094670510375602.
Reimer, Kerstin, Oliver J. Rutz, and Koen Pauwels. 2014. “How Online Consumer Segments Differ in Long-Term Marketing Effectiveness.” Journal of Interactive Marketing 28 (4): 271–84. https://doi.org/10.1016/j.intmar.2014.05.002.