Developed by Larry Streeter and myself to show a different way to measure customer engagement by using customer behavioral actions.

1. Measuring and Driving Customer Engagement
Voice of the Customer Conference
Michael Pace
Director of Customer Support & Community Manageement
Constant Contact
September 20, 2011
CONFIDENTIAL Copyright © 2011Constant Contact, Inc.

2. Constant Contact (CTCT) Overview
Our Mission: Help small organizations create and
grow customer relationships
Our Market: 25M small businesses, non-profits and
associations, 500K customers today
Our Product: Suite of marketing tools including email
marketing, online survey, and event management
Our Business Model: SaaS software with a monthly
subscription fee
Our Success Formula: Great product backed up with
KnowHow and coaching with a personal touch
CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 2

3. Our challenge?
Continued success in
customer acquisition, but
Growing numbers of
customer attrition !
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4. How do we define “Engagement”?
Committed to a long-term relationship
Proactively involved
Emotionally, psychologically, and physically connected
Simply “Satisfying” customers is not enough
 Customers may be pleased with your service or product but
lack an emotional connection to your company
 Can result in customer attrition for minor reasons
Source; “Measuring Customer Engagement”, a commissioned study conducted by Forester Consulting on behalf of Adobe Systems Inc., May 2008
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5. Organizations that create a high level of engagement
with their customers are more successful than those
who don’t!
Fully engaged customers
represent an average 23%
premium in terms of share of
wallet, profitability, revenue
and relationship growth
Actively disengaged
customers represent a 13%
discount in those same
measures
Source: Customer Engagement, What’s Your Engagement Ratio?, Gallup Consulting, 2009
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6. Why Customer Engagement is critical to our long-
term success
We believe successful use of our products and
services (as measured by engagement) will compel
our customers to stay longer, buy more, and
advocate for CTCT.
The challenge is to develop an engagement score, all
inclusive of the key metrics that measure and drives
a customer’s engagement with CTCT’s products
and services.
The goal of our Customer Success Index (CSI) is to
put a tool into the hands of those employees who
influence customers that provides clear direction for
educating and coaching them toward a higher level
of engagement.
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7. So what is CSI?
Q: Is it something that predicts future
behaviors?
A: It’s a measurement of a customer’s
level of engagement at any point in time.
Q: Is it a complex, multivariate, canonical
correlation analysis of discriminant,
recursive clusters?
A: It’s a simple summation of multiple
engagement scores
Q: Is it something our customers would find
difficult to follow?
A: All components of the CSI score must
be actionable!
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8. What makes up the overall CSI score?
Mailing List Product
Results CSI
Activity Activity Usage Score
Dimension X
Dimension X Dimension X Dimension X
Dimension Y Dimension Y Dimension Y
Dimension Z Dimension Z Dimension Z
Additional * Under consideration
Assets
Dimension Dimension Dimension
Etc.
X Y Z
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9. CSI wrapped around our Product, KnowHow, and
Coaching with a Personal Touch enable CTCT to:
 Target our customers with specific, prescriptive actions that put
them on and keep them on the “happy path”
 Provide employees with actionable insight on how best to
influence engagement
 Put our customers in the best possible position to become
successful engagement marketers
CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 9

10. CSI scoring helps Constant Contact better engage
with their customers in three ways
 Helps Sales with onboarding new customers
 Enables Marketing to target customers with
more tailored messages
Enhances Support’s ability to coach customers
to maximize the benefit of our products
CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 10

11. At CTCT, the correlation between CSI scores and
customer attrition is very strong
% of Customer Base
Attrition Rate
0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100
Attrtion % % of Customers
CONFIDENTIAL Copyright © 2011Constant Contact, Inc. 11

12. Engagement coupled with Satisfaction represents the
“perfect marriage”
Brand Advocates /
A subjective Inactive Fans
and Champions
NPS/C-Sat
emotional
score
provided by
customer –
measures Lower Interest Active Participants
depth of
relationship
CSI Score
An objective and behavioral
activity/engagement score – measures
interaction

13. Future steps include using customer’s social graphs to
understand how loud they can speak their mind
Customer’s
ability to
project
Brand emotional
A subjective
Inactive Fans Advocates / sentiment &
and
Champions activity
NPS/C-Sat
emotional
through
score
social graph
provided by
customer –
measures Lower Interest Active Participants
depth of
relationship
CHI Score
An objective and behavioral
activity/engagement score – measures
interaction

14. Contact Info
Michael Pace
Director of Customer Support &
Community Management
Constant Contact
Twitter: @mpace101
LinkedIn
Blog: www.thepaceofservice.com
Text: SOCSERVICE to 22828
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