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Houston research: What corporations need to know about customer engagement behavior

Corporations need to leverage customer engagement behavior in an integrative and holistic way. Photo via Getty Images

Every customer-focused CEO wants to know the formula for increasing customer engagement because it can boost sales, expand margins and help their company build a better product or service.

Vikas Mittal, Rice Business J. Hugh Liedtke Professor of Management and Marketing, studied the existing data and research about customer engagement. His findings suggest practical ways to support customers, encourage their long-term engagement and perhaps increase sales and margins in the process.

Researchers define customer engagement behavior (CEB) as behaviors that “go beyond transactions, and may be specifically defined as a customer’s behavioral manifestations that have a brand or firm focus, beyond purchase, resulting from motivational drivers.” These behaviors can include word-of-mouth communication, product recommendations, helping other customers, blogging, writing reviews and even engaging in legal action.

Apple is one of the most effective brands when it comes to engaging its customers. Every time customers buy an Apple product — an iPhone, smartwatch, tablet or computer — they engage with an ecosystem of services in multiple ways.

Co-creating a product or service is another CEB strategy. Suggestions, shared inventiveness, co-design and production are all ways that customers can help create a product and service that aligns with their needs and the company’s goals.

CEB can be analyzed through five key characteristics, Mittal’s team wrote. The first is an individual’s ability to significantly affect or react to something. The second and third are form and modality — the different ways in which CEB can show itself. The fourth is its impact, both on the brand and customers. The fifth is purpose: to whom is a company’s engagement directed, how much engagement is planned, and how much are the customer’s goals aligned with the firm’s goals?

As in any relationship, a customer’s attitude about a particular brand may change over time. To encourage CEB that evolves with the company, corporations should take a holistic approach, Mittal’s team advised.

To do this, they proposed a 3-step process: identify, evaluate and act.

Step one: Identify where CEB is occurring. This may be online or in real life. Step two: Evaluate your company’s CEB and your short- and long-term objectives for it. You may find, for example, that your company’s CEB affects the customer more than your company or visa-versa. Step three: Act or react, by creating internal AND external resources to effectively manage CEB.

One example: creating and managing an appealing feedback or review portal. When a firm offers processes and platforms that allow customers to engage, it encourages CEB that lasts beyond the actual purchase. Customers who feel their interaction with the company is successful, Mittal noted, will engage more frequently and intensely. If the interaction doesn’t seem to be effective, the customer may try another engagement approach — or they may just drift away.

That’s why businesses need to remove any barriers to CEB by making it simple, easy and pleasant to interact with the brand.

Marketers who learn how to engage customers using a holistic and integrative approach can harness CEB for their company’s advantage. In addition to investing in tools that facilitate customer-generated reviews, blogs, word of mouth and referrals, companies can invest in ways to make the consumption process more meaningful.

Managers focused on making the best use of CEB, Mittal’s team concluded, should follow these steps.

  1. Listen to customer feedback and complaints. Use this information to improve your goods and services.
  2. Invest in processes and platforms where your customers can express themselves.
  3. Don’t make the mistake of letting customer feedback vanish into a virtual vacuum. Create a system to ensure these manifestations of engagement reach the right department — then make sure they’re resolved or acted on quickly.
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This article originally ran on Rice Business Wisdom and is based on research from Vikas Mittal, J. Hugh Liedtke Professor of Marketing at the Jones Graduate School of Business. Other researchers included: Jenny van Doorn and Peter C. Verhoef of the University of Groningen, as well as Katherine N. Lemon of the Carroll School of Management at Boston College, Stephan Nass of the University of Münster, Doreén Pick of Hochschule Merseburg, and Peter Pirner of Petlando, i-CEM and www.CX-Talks.com.

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Building Houston

 
 

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CruxOCM, a startup with a significant Houston presence that specializes in robotic industrial process automation for energy companies, has secured even more business from energy giant Phillips 66.

The value of the deal wasn’t disclosed.

Houston-based Phillips 66 has agreed to expand it use of CruxOCM’s pipeBOT technology to cover even more pipelines. The pipeBOT technology is designed to improve the safety and efficiency of control room operations for pipelines and reduce control room costs.

CruxOCM and Phillips 66 launched a test of pipeBOT in 2020.

CruxOCM, based in Calgary, Canada, says pipeBOT is engineered to decrease manual controls through intelligent automation. With this technology in place, the fatigue of control room operators declines, because as many as 85 percent fewer manual commands must be entered, according to CruxOCM. Therefore, control room operators can focus on higher-level tasks.

“At CruxOCM, we empower control room operators with modern software that enables the autonomous control rooms of tomorrow, within the safety constraints of today. We look forward to continuing to strengthen our relationship with Phillips 66 for many years to come,” Adam Marsden, chief revenue officer at CruxOCM, says in a news release.

Founded in 2017, Crux OCM (Crux Operations Control Management) established its Houston presence last year. Also in 2021, the startup raised $6 million in venture capital in a “seed extension” funding round. Bullpen Capital led the round, with participation from Angular Ventures, Root Ventures, Golden Ventures, Cendana Capital, and Industry Ventures.

In 2019, Angular Ventures and Root Ventures co-led a $2.6 million funding round.

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