4.10 customer management(2)
duty13
MARK30143114-CRMtoSCRMpart120241.pptxCustomer Management
MARK 3014/3114
CRM to SCRM (part 1)
Customer relationship management (customer management)
the journey
to social customer relationship management
Andy Towse
1
How CRM is evolving with digital developments (including Social Media)
What are the Considerations & challenges for companies/organisations
CRM towards SCRM
2
Reminder – at the heart of Customer Management/CRM is a customer centric approach
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
Gartner (2012)
3
What is social CRM (SCRM) ?
‘‘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)
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
‘‘ It’s about anticipating, listening and quickly responding to customer needs. In this way, SCRM helps the organization enhance the experience ’’ Kaufman & Horton (2015)
4
Designed to improve human interaction
Customer is passive (receive mode)
Focuses on singular customer relationship
Business's focus is on products and services that satisfy customers
Focus on operational aspect of sales, marketing, and support
‘Presumes’ for customers regularly
Interactions tend to be direct and formal
Intended to engage (not interrupt) the customer in a collaborative interaction
Customer is active
Focuses on community relationships
Business's focus is on environments and experiences that engage customers
Focus on functional and social aspect of the interaction
Integrate the voice of the customer into all facets of planning from strategy onwards
Conversation is not formal
Traditional CRM features/functions
SCRM features/functions
How do CRM & SCRM compare ?
5
Awareness
Interest
Involvement
Commitment
Loyalty
Advocacy
Champion
Traditional buyer model Digital involvement cycle
Need recognition/problem awareness
Kaufman & Horton (2015)
Customer buying behaviour is evolving
Information search
Evaluation of alternatives
Purchase
Post purchase evaluation of decision
Jobber & Ellis-Chadwick (2013)
6
Awareness
Interest
Involvement
Commitment
Loyalty
Advocacy
Champion
Kaufman & Horton (2015)
Engaging with customers across the digital involvement cycle
7
What does this mean for organisations ?
Kaufman & Horton (2015)
8
9
Business application example: viewing social media in isolation
9
Business application example: rising to the challenge with SCRM ‘command centres’
500 hotels in 60 countries
Regional ‘M Live’ centres to engage live with travellers, now in Europe
Monitoring live news and feedback
Engage, listen, act: one to one dialogue
Multiple feed sources – one unified view
Responses and strategies ‘on the fly’
Sysomos (2018)
“The power of M Live Europe is that we can now engage with traveler’s in more regionally and culturally relevant ways that are meaningful to them.”
says Osama Hirzalla, VP brand marketing and e-commerce, Europe
Video: https://www.mmaglobal.com/case-study-hub/case_studies/view/46372
10
Key challenge : usage differs by customer/customer group
UK social media usage
Facebook 67%
You Tube 53%
Instagram 43%
X (Twitter) 31%
Snapchat 22%
TikTok 21%
Sample by age, which social media platforms used
Mintel (2022)
11
Comscore (2022)
Buying (ecommerce): mobile device usage growth
12
Key challenge : device usage differs by customer
Comscore (2018)
13
Q. 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 (Criteo 2015)
Increasing number of high street purchases begin in a digital environment
Key challenge: Social media is rarely used by customers in isolation
14
For each persona define preferences:
Platforms (web, email, mobile)
Platform usage (hours)
Content consumption:
General site types &
category-specific
Social media - content
creation & participation
Search behaviour
Trusted brands
Business application example : customer understanding is vital to an SCRM approach
Smartinsights.com (2018)
15
Business application example: evolution of digital strategy
16
Today, Adidas continue to build their digital brand, in association with Salesforce, a key CRM/SCRM provider
Videos:
https://www.youtube.com/watch?v=Oj_a3OfkFd0
Think back over time
(15 years, 10 years, 5 years … today) what customer relationship challenges might Adidas have been trying to solve at each point ?
Transition from bricks and mortar to web sales (2018)
App as an additional touchpoint (2023)
https://www.salesforce.com/video/3478697/
(watch first 3 minutes)
(10 minutes)
Business application example: evolution of digital strategy
17
Challenges : for a brand with SCRM
Transparent nature/speed of customer feedback creates a ‘no hiding place’ environment
Dissatisfied customers could escalate any reputational mistakes on social media immediately
Brand proposition/offer, the online value proposition (OVP) needs to be clear and compelling
Social channels need to be carefully considered as part of the multi channel mix of activity
Multiple data platforms and integration points add complexity and cost
A culture of ‘iterative development’ is vital as the environment moves quickly
Needs senior management buy in
And, new skill sets across an organisation and it’s various departments
18
References
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.
Jobber, S. & Ellis-Chadwick, F (2013) Principles And Practice Of Marketing. McGraw Hill.
https://www.bighospitality.co.uk/Article/2016/07/26/Marriott-launches-social-marketing-programme-M-Live-in-Europe?utm_source=copyright&utm_medium=OnSite&utm_campaign=copyright [accessed 20 Jan 2023]
Mintel (2022) Social media, news, UK, 2022. Mintel.
https://www.comscore.com/Insights/Presentations-and-Whitepapers/2018/UK-Digital-Market-Overview-Q2-2018 [accessed 10 Nov 2018]
https://www.smartinsights.com [accessed 10 Nov 2018]
https://econsultancy.com/six-examples-of-effective-multichannel-marketing-campaigns/ [accessed 10 Nov 2018]
https://www.salesforce.com/ca/customer-success-stories/adidas/ [accessed 10 Nov 2018]
https://www.salesforce.com/video/3478697/ (accessed 20 Jan 2023)
19
