Value chains

What comprise the four value chains needed for full customer engagement?

VALUE CHAINS OF CUSTOMER ENGAGEMENT

Customer engagement represents the convergence of four value chains, each chain contributing a distinct and measurable set of services or capabilities to the customer.

The figure below depicts a high-level summary of these four value chains:

Execution of effective customer engagement demands a business ecosystem strategy, emphasizing how to source, integrate, provision, and orchestrate the delivery of innovation, messaging, content, and social media (stories that connect with consumers and their peer groups) to analytically defined customer cohorts and self-directed customers who will personalize, remix, and share content and services with friends.

Execution of effective customer engagement demands a business ecosystem strategy, emphasizing how to source, integrate, provision, and orchestrate the delivery of innovation, messaging, content, and social media (stories that connect with consumers and their peer groups) to analytically defined customer cohorts and self-directed customers who will personalize, remix, and share content and services with friends.

Marketing operations supply chains provide leadership, a resonant brand voice, directives for strategic messaging, an optimized media mix, and overall program and vendor management.

Innovation supply chains provide manufactured finished goods or professionally trained services to customers and, increasingly, IT services that deliver strategic, if not disruptive, value in the form of online applications and customer self-service tools.

Content supply chains transform insights and creativity into images, Flash demonstrations, Web pages, brochures, and point-of-purchase materials. Increasingly, content operations of many firms will become indistinguishable from publishing firms. Like business and lifestyle publications today, many tradition non-publishing firms—enterprises—will transform their web properties into lifestyle and user engagement destinations. This move towards destination websites and conversational microsites will subsume some of the added-value services of traditional marketing and advertising agencies—unless these agencies move fast and create their own lifestyle and user engagement destinations.

Social media supply chains represent the newest value chain, transforming multichannel (database, Web, and social media) marketing analytics into viral videos (“stories that connect”), smart promotions that engage social peer groups, sponsored content, and sections within social networks, etc.—principally the work of next-generation social media agencies and marketing service providers.