Engagement Strategy Board is a positioning framework used to determine the effectiveness of positioning strategies/approaches mapped against a set of defined customer needs. This model is created as a holistic thinking process and are best used to punch gaps within the customer engagement strategy design process. It is used to model the entirety of the engagement and touch-points with a targeted market segment. For instance, this model will allow you to map the different programs developed by sales and marketing department in order to figure out and find the desired balance between the differing KPI's of each department, i.e. strong engagement vs. profitability.
Description: The ESB is used by considering first and foremost the needs of the customer (left hand column) labelled as emotion, capability or transaction focused. With the type of needs in mind, the strategist then need to position the various engagement options. These will be one of the following types as see on the bottom row labels: to mobilize actions, to drive stickiness/attachment or to build affinity/advocacy.
A strategy that is top-right leaning is considered engagement heavy but transaction light. This is probably pursued by high-value brand-focused goods which operates exclusive storefront locations and sells limited high value goods.. On the other hand, a bottom left leaning approach will be considered as transaction heavy but engagement light. This may work well for commodity good or daily necessities.
Strategic Engagement Options
Description: Some of the commonly found strategic options used by customer facing organizations are listed in the ESB map above. For example, Nike as a brand makes most of their revenues from shoe apparel. Whilst they outsources the manufacturing and sells through wholesalers, they do retain full marketing and pricing rights on all Nike goods. With wholesaler owning direct customer touch points, Nike focuses its effort on building product-level capabilities and emotionally charged marketing messages. Lacking the option to pursue a subscription strategy, Nike will be relying heavily on emotionally-focused marketing to drive stickiness (TOP row). The retained ability to control price also ensures that the branding efforts are not jeopardized (BOTTOM row). What quickly becomes clear is the lack of capability engagement options. With the growing might of e-commerce and advent of mobile technologies, keeping customer engaged with brand through the use of service capabilities becomes an important consideration. Such moves as Nike plus technologies, Nike online store (D2C), trial runs and expert assistance is just some ways this brand is evolving itself to engage digital savvy customers.
NOTE: Its probably important to note ESB can be used to quickly assess the completeness of the engagement strategy. It is most effective when used in conjunction with a well defined (i.e. not too narrow and also not too generic) target market segment and a completed branding story board.
Monetization Center of Gravity
If a strategy is a promise to deliver value (link: definitions), then the following section demonstrates how various types of business expands their business scope beyond their traditional boundary and delivers stakeholder values.
If we first look at the Strategy Board via the lense of service augmentation strategy laid out by PSSO model (link: PSSO) the product focused approaches are the most narrow. This is followed by both physical store and cyberspace store is heavily space focused approaches. In the digital era, for a successful and financially rewarding engagement, one needs to think of digital as the possibility to connect spaces and augment physical resource usage in order to unlock new values and drive further efficiency (see link for further explanation of Digital, Ecosystem and Platform).
A detailed article about how different monetization center of gravity drives different engagement options can be found here: link
Before anyone jumps in to the latest in tech buzzword, pls. consider the following definitions and the expected Outcomes for each:
1. Strategy = is a Promise to deliver Value. Much like an IOU paper you'd sign but not just in monetary forms but the overall promised outcome.
2. Digital = provides a way to connect spaces
3. Platform = a 'place' that unlocks value, optimize and drive efficiency
4. Ecosystem = value services outside of a defined capability boundary
Therefore, in short:
1. A Digital Strategy is a promise to deliver values by connecting spaces
2. A Digital Platform Strategy is a promise to unlock value, optimize and drive efficiency by connecting spaces.
3. A Digital Ecosystem Strategy is a promise to connect value services outside of one's current offering.
Or put in context: If someone comes to you and say, "I'd like to start a digital platform that enable temp workers and employers to not only connect with one another but also to process compensation and screening." This client probably is looking to build a Digital Platform to not only connect spaces between workers and employers but also a processing platform that automates onboarding, screening, prospecting, etc. Since its digital in nature, the engagement can take place beyond cyberspace and include physical space and time space. Also, we need Strategy Execution as this company probably need something a little beyond a promise to deliver value but also an executable plan to deliver those values. Finally, do we need to consider Ecosystem Strategy, probably yes, given the capability limits of a single operating platform.
There are generally 2 types of value that an organization can create by performing certain activities:
a) internally directed OR
b) externally directed values
An internally-focused value creation strategy considers the capability that an organization needs to build in order to capture that value. To achieve that an organization need to take a systemic view by asking: "what values are we trying to capture by building this capability" and "which system is this capability related to"? This strategy is all about abstracting values out of systemic capabilities.
OUTSIDEIN STRATEGY (the 'mirror' effect)
An externally-focused value creation strategy takes both buyer and seller interest into consideration. Both parties should benefit from the value creation exercise: it allows customer to discover values and transform the relationship with the selling side. This 'mirror' effect cascades down the engagement process, from value discovery to extraction (mirror: transact) and ultimately realization (mirror: subscribe).
For example, a new WeChat user discovers multiple value added services offered by the platform and adopts it (discovery). As the engagement deepens, this users finds that its possible to extract (transacts) different values from this platform beyond mere push communication. With multiple successive transact and engagement, this user becomes an advocate (subscribed) of this platform as he is able to realize value over and over again.
In the PSSO stack, implied process & product forms part of a system. The function provided by the system when positioned in a space enables certain capabilities. These capabilities when utilized by people unlocks value - mostly value(s) that can be enjoyed by human occupants.