4.10 customer management(2)
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Lecture-Mark30143114-CRMtoSCRMpart220241.pptxCustomer Management
CRM to SCRM (part 2)
‘Social Media as part of Customer Management strategy’
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How CRM is evolving with digital developments (including Social Media)
Considerations & challenges for companies/organisations
CRM to SCRM
Application of SCRM, as part of Customer Management
In particular, as part of multi-channel journey’s
How to actively listen to make continuous product & service improvements
Last time …
Today …
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RECAP: What is social CRM (SCRM) ?
Relationships
Customer-Centric
4 C’s
Customer
Lifetime value
Value to customer
Continuity
Dialogue
Foundation for insight
Customization
Needs & preferences
Customer life cycle
Convenience
Ease of use
Fit with life
‘‘Engage customers more deeply and interactively by making brands a meaningful part of their conversations and lives’’
Armstrong (2015)
‘‘Companies no longer have the only voice, or strongest voice, in shaping and motivating our brand choices. A far larger role is played by the new media of Facebook, Google, Twitter, YouTube, Linkedin and other tools that enable search and messaging. Companies need to dive into the new ‘Digital Tsunami’ if they want to survive and prosper’’
Kotler (2015)
‘‘ Social CRM is based on the ability of a company to meet the personal agenda’s of its customers, while at the same time, meeting the objectives of its business plan. It is aimed at customer engagement rather than customer management’’
Greenberg (2010)
‘‘ It’s about anticipating, listening and quickly responding to customer needs. In this way, SCRM helps the organization enhance the experience ’’ Kaufman & Horton (2015)
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Multi-Channel Customer Journeys
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When was the last time you made a purchase decision ONLY using a social media channel ?
Building customer dialogue and brand loyalty mostly comprises multiple touch points – customers expect to ‘switch channels’ with ease
Web pages are increasingly the ‘digital shop window’
For social media, ‘’it's all about influence, social ads and a multi-channel path to purchase’’ (emarketer, 2018)
40% of ecommerce purchases are started on another device
Increasing number of high street purchases begin in a digital environment
Multi channel perspective: Social media as part of the overall experience
‘Critical Moments of Truth’
across multiple touch points
Quality is perceived on multiple dimensions across the total customer experience
Increasing expectation to
‘make customers lives easier’
Moments of truth - when something goes wrong, recover quickly and efficiently
Generating trust and loyalty to both retain and recommend (NPS)
Social media is rarely used by customers in isolation
Why think about ‘multi channel’
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Mapping the customer experience … start with the customer
Source: Buttle & Maklan, 2015, p.198
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Mapping the customer experience … think about the buying journey
Source: Smartinsights.com/customer persona toolkit
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Mapping the customer experience … retail consumer example …
Source : Smartinsights.com/customer persona toolkit
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Social media as a customer touch point … using for post purchase support
Q. When social media is used, what journeys/experiences have led up to this ?
Marketo ‘The state of engagement’
Survey of customers …
About one third of customers said they would use Social Media for post-purchase support
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Video: Don Peppers on transparency & trust
‘Critical moments of truth’
(Bitner et al. 2000)
Service Encounters
Social Media brings transparency
Social media as a customer touch point
https://www.youtube.com/watch?v=GdZNq5unLtM
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Don Peppers on transparency & trust
Key messages …
Social Media brings transparency
Transparency brings consumer power
There is no hiding place for your products/services – they need to perform for customers
Are you competent ?
What are your intentions – will you do the right thing ; deliver what I need in the right way ?
Do you have trustability ?
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Service Recovery
“The actions that a service provider takes to respond to service concerns or failures”
(Lewis & Spyrakopoulos 2001, p.37)
Social media as a customer touch point for service recovery – justice theories
| Distributive justice (dealing with decision outcomes, such as monetary rewards) |
| Procedural justice (dealing with decision-making procedures and a service organization’s policies) |
| Interactional justice (dealing with interpersonal behaviour in the enactment of procedures and delivery of outcomes, such as staff’s manner and responsiveness) |
(Buttle & Maklan 2019, p.190)
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Customer Listening – Why ?
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Listening …
Social Media brings transparency
Marriott Hotels ‘command centres’
Engage, listen, act
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Listening to do what ? …
Social Media brings transparency
Value Creation Process
Value customer receives
Value organisation receives
Value Proposition Development Process
Flow of feedback & insights
To better understand and meet customers’ needs
More effectively than competitors
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Organisation’s Value Proposition (s)
Customer
Value Proposition Design (Osterwalder, Pigneur, Bernada, Smith)
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* Tasks to be done
* Progress to be made
* The space where problems are solved
* Functional (the task)
* Emotional (feeling)
* Social (interaction)
* Bad or undesired outcomes
* Obstacles
* Avoidance
* Dissatisfaction
* Worries
Organisation’s Value Proposition (s)
Customer
*What customers want to achieve
*Concrete benefits, or aspirations
*How they measure success
*Required, expected, desired
*Unexpected/surprise
Value Proposition Design (Osterwalder, Pigneur, Bernada, Smith)
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* Tasks to be done
* Progress to be made
* The space where problems are solved
* Functional (the task)
* Emotional (feeling)
* Social (interaction)
* Bad or undesired outcomes
* Obstacles
* Avoidance
* Dissatisfaction
* Worries
Organisation’s Value Proposition (s)
Customer
How the product/service alleviates the pain points
How the product/service creates customer progress or gains
*What customers want to achieve
*Concrete benefits, or aspirations
*How they measure success
*Required, expected, desired
*Unexpected/surprise
Value Proposition Design (Osterwalder, Pigneur, Bernada, Smith)
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© Cambridge University Press 2013
Development of Wining Value Propositions
* Bad or undesired outcomes
* Obstacles
* Avoidance
* Dissatisfaction
* Worries
* Tasks to be done
* Progress to be made
* The space where problems are solved
Customer Pain Points
Customer ‘jobs to be done’
Summary
Consider the overall journey that the customer experiences (multi-channel)
Social Media is likely only a chapter of the overall customer story
Treat feedback as a gift – more engagement is usually better than less engagement
Listen intently, take action
Move quickly to improve products/services to drive points of difference
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References
https://uk.marketo.com/analyst-and-other-reports/the-state-of-engagement/ [Accessed 25 Jan 2019]
Peppers, D. Rogers, M. (2004) Managing Customer Relationships, A Strategic Framework. Wiley, New Jersey.
Armstrong, G. (2015). Cited in: Kaufman, I. & Horton, C. (2015) Digital Marketing: Integrating Strategy And Tactics With Value. Routledge.
Kotler, P. (2015). Cited in: Kaufman, I. & Horton, C. (2015) Digital Marketing: Integrating Strategy And Tactics With Value. Routledge.
Greenberg, P. (2010) CRM at the speed of light (fourth edition): social CRM strategies, tools and techniques for engaging customers. McGraw Hill.
Kaufman, I. & Horton, C. (2015) Digital Marketing: Integrating Strategy And Tactics With Value. Routledge.
Bitner, M. J., Brown, S. W. and Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138-149.
Parasuraman, A., Zeithaml, V. A. & Berry, L. L. (1985) A conceptual model of service quality and its implication. Journal of Marketing, 49 (Fall), pp. 41-51
Lewis, B. R. and Spyrakopoulos, S. (2001). Service failures and recovery in retail banking: the customers’ perspective. International Journal of Bank Marketing, 19(1), 37-47
Hirschman, A. O. (1970) Exit, voice, and loyalty: Responses to decline in firms, organizations, and states, Cambridge, MA: Harvard University Press
https://sysomos.com/resources/brand-command-center-ebook/ [accessed 10 Nov 2018]
Osterwalder, A. Pigneur, Y. Bernada, G. Smith, A. (2014) Value Proposition Design. Wiley, New Jersey.
Frow, P. and Payne, A. (2008), “The value propositions concept: evolution, development and application in marketing”, Discipline of Marketing, University of Sydney, Sydney, working paper.
https://www.smartinsights.com/guides/customer-persona-guide-and-template/ [accessed 10 Jan 2020]
Buttle,F. & Maklan, S. (2017). Customer Relationship Management: Concepts and Technologies, 3rd Edition. Routledge, New York.
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