4.10 customer management(2)
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MARK3014w23MarkAutomationandDissatisfiedCustomersLectureSlide1.pptxMARK3014 Customer Management
Week 23
Marketing Automation &
Managing Dissatisfied Customers
Today’s agenda
Marketing Automation
Marketing Automation Definition
‘Marketing automation is the application of computerised technologies to support marketers and marketing management in the achievement of their work-related objectives’
Marketing automation is all about using software (with associated systems) to automate marketing activities.
At its best, marketing automation is a combination of software and strategy. It should allow you to nurture prospects with highly personalized, useful content that helps convert prospects to delighted customers.
The ultimate goal with your marketing is to generate more revenue for your company. To accomplish this, we need to drive traffic to our website, convert that traffic into leads and close those leads into customers. Where marketing automation really makes an impact is the conversion and closure stages of this process.
As consumers go through multiple stages during their customer life cycle, Marketing Automation allows businesses to deliver their customers the right engagement/content and initiate service and sales activities in a personalized way.
Feel free to arrange an appointment with one of our consultants to discuss it.
Thank you for your interest in our Marketing Automation for Success whitepaper.
What Could A Basic Automated Email Workflow Look Like
Step 1: You send an email invitation to download your latest ebook to a targeted list of contacts
Step 2: You send a thank you note to all the people that downloaded the offer
Step 3: A few days later, you send a follow up email to the list of people who downloaded the ebook, offering them a case study relating to that topic
Step 4: Finally, when someone downloads that case study, your sales team will get a notification so they can follow up with them (this person is now much more qualified and is likely farther down the buying process)
(Example) Uses for Marketing Automation
Customer engagement management
Lead management and nurturing
New market acquisition
Optimise email quality and relevance
Maximise selling time for new business
Complex campaign management
Quarterly sales push
Capture purchase behaviours
Post-sale customer on-boarding (Customer Development)
What is Marketing Automation, and How Do I Use It?
Watch first 4 min 30 seconds only
https://www.youtube.com/watch?v=BLL5CIlYC34&feature=emb_logo
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Hold customers & product data
Core IT Systems
Product range 1 data
Product range 2 data
Channel Interface Systems
Store/branch
Telephony
Website
Social Media (owned)
App
Engagement (marketing) Rules Engine
Service Provider 1
Service Provider 2
Data Warehouse
Activity 1: Email
Activity 2: Push/SMS
Activity 3: Direct Mail
In House
Content Management
How might marketing automation work in practice (example, medium/large consumer brand) ?
Umbraco
Salesforce ; Marketo
Content Management
Adobe
Orlo
Content Management
Agency Provider
BBH
Etc …..
Customer Engagement Capability
API interfaces to translate & hold rules sets
Denotes example providers of services
Benefits from Marketing Automation (1)
Enhanced marketing efficiency
The replication of marketing processes delivers greater control over costs. When marketers use manual systems and ad hoc processes, there can be considerable inefficiencies. MA enables companies to develop more streamlined, cost-efficient processes, that can be operated by any marketing incumbent, whether experienced or new-to-role.
Greater marketing productivity
MA enables companies to run dozens, even thousands of campaigns and events through multiple channels simultaneously.
Automating repetitive tasks
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Benefits from Marketing Automation (2)
More effective marketing
MA allows marketers to employ what is known as closed-loop marketing (CLM). CLM is based on a Plan-Do-Measure-Learn cycle.
Closed-Loop Marketing: Information from the Sales team can be used by the Marketing team to improve their efforts and results.
Benefits from Marketing Automation (3)
Improved accountability
MA provides better data and analysis on which to judge the commercial return from marketing activities, improved transparency, and faster (almost real time) information for management.
Benefits from Marketing Automation (4)
Enhanced responsiveness
Marketers have traditionally created and implemented annual marketing plans with campaigns and promotions planned and scheduled many months ahead. MA allows marketers to respond instantly to opportunities, even if not part of a plan.
MA functionality enables companies to engage in real-time marketing, responding immediately to an identified opportunity.
Benefits from Marketing Automation (5)
Improved marketing intelligence
MA’s embedded reporting and analytics functionality provides valuable management insights into markets, customers, campaigns, events etc.
Improved customer experience and engagement
Customers receive personalized, relevant communications and offers at appropriate times.
Customers develop a stronger sense of emotional and behavioural identification with the firm.
Marketing Automation fit with IDIC model ?
Managing Dissatisfied Customers
Marketing
6-20
Create Customer Satisfaction
Brand loyalty
Repeat sales
Complaining
WOM Behaviour
The basic principle of marketing is customer satisfaction. Full implementation of this concept requires that marketers should also strive to remedy customer dissatisfaction.
Satisfaction is assumed to lead to brand loyalty and repeat sales while dissatisfied customers often engage in word-of mouth and complaining behaviour.
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6-21
No single theory of
consumer complaining behaviour
Several different theories
Consumer Complaining Behaviour
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6-22
Confirmation / Disconfirmation Paradigm
Theory of Exit, Voice and Loyalty
Justice Theory (or Perceived Justice Theory)
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6-23
Confirmation / Disconfirmation Paradigm (Oliver, 1980)
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6-24
An evaluative process whereby a consumer compares a product’s actual performance to his or her prior expectations of that product.
Confirmation occurs when a product performs as expected.
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6-25
Positive disconfirmation occurs when a product performs better than the consumer expected.
Negative disconfirmation occurs when a product does not perform up to the consumer’s expectations.
Dissatisfaction
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6-26
Is it dissatisfaction that cause consumers to complain?
Dissatisfaction is a negative emotion (affective response) in response to a specific consumption experience.
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6-28
Hands up please if the answer is YES
Do you ALWAYS
complain when a product/service
does NOT perform
to your expectations?
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6-29
Situational factors
Interpersonal factors
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6-30
Theory of Exit, Voice and Loyalty (Hirschman, 1970)
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6-31
Hirschman’s (1970) framework explains why some dissatisfied customers seek redress from firms (i.e. they voice their complaints) while others just silently vow never to shop there again and take their business elsewhere (i.e. these customers exit).
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6-32
Value of voicing the complaint (i.e., product importance)
Probability that the complaint will be successful (i.e. likelihood of success)
The ability and willingness to take up the voice option (i.e. attitude toward complaining)
Exit: Last resort after voice has failed
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6-33
Consumers who are dissatisfied with a product of high importance, who perceive that their complaint will be successful, and who exhibit a general willingness to seek redress are likely to voice their complaints.
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6-34
If voice (i.e. redress seeking) is not successful (and consequently the complainant perceives a lack of justice) other types of behaviour (i.e. negative word-of-mouth and exit) are likely to follow.
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6-35
Attribution Theory: Perceived Justice
Social psychology
Organisational behaviour
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6-36
Individuals who are involved in conflicts or disputes base their perceptions of justice on several factors:
the perceived fairness of …
Tangible outcome or decision (DJ)
Procedures used in arriving at the outcome (PJ)
Manner in which they were treated throughout the conflict resolution process (IJ)
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6-37
There is evidence that if consumers do not receive the desired outcome they may still be satisfied if they perceive that the procedures used in arriving at that outcome were fair and if they perceive the interaction to have been positive.
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6-38
Perceived justice is a critical factor that determines whether a complainant will stay loyal to an organisation or engage in negative word-of-mouth behaviour and exit.
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Questions?
References
Blodgett, J. G., Granbois, D. H. and Walters, R. G. (1993) The Effects of Perceived Justice on Complainants’ Negative Word-of-Mouth Behavior and Repatronage Intentions. Journal of Retailing, 69 (4), pp. 399-428.
Hirschman, A. O. (1970) Exit, voice, and loyalty: Responses to decline in firms, organizations, and states, Cambridge, MA: Harvard University Press
Oliver, M. L. (1980) A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions, Journal of Marketing Research, 17 (November), pp.460-469
Zendesk Consultancy Company (2018) Providing great social media customer service https://www.zendesk.com/resources/customer-service-through-social-media/ [Accessed: 23 November 2018]
Zendesk Consultancy Company (2018) How to Provide Great Facebook Customer Service, https://www.zendesk.com/resources/tips-providing-great-customer-service-facebook/ [Accessed: 23 November 2018]
Zendesk Consultancy Company (2018) How to Provide Great Twitter Customer Service, https://www.zendesk.com/resources/tips-providing-great-customer-service-twitter/?_ga=2.89392348.672337057.1499294195-880826155.1493935375 [Accessed: 23 November 2018]
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References (Continued)
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.
Dalziel, N. & Hontoir, J. (2016). A Tale of Two Banks: Customer Services on Facebook in “Analysing the Strategic Role of Social Networking in Firm Growth and Productivity”, Edited by Benson, V., Tuninga, R. and Saridakis, G., IGI Global:USA, pp.136-156 (Chapter 8)
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
Patterson, P.G., Cowley, E. and Prasongsukarn, K. (2006) Service failure recovery: The moderating impact of individual-level cultural value orientation on perceptions of justice International Journal of Research in Marketing, 23(3), 263-277
Smith, A. K.; Bolton, R. N. and Wagner, J. (1999) A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery. Journal of Marketing Research, 36 (3), pp. 356-372.
Solomon, M. R., Surprenant, C., Czepiel, J. A. & Gutman, E. G. (1985) A Role Theory Perspective on Dyadic Interactions: The Service Encounter, Journal of Marketing, 49 (1), pp. 99–111
Tax, S. S., Brown, S. W. and Chandrashekaran, M. (1998) Customer Evaluations of Service Complaint Experiences: Implications for Services and Relationship Marketing. Journal of Marketing, 62 (2), pp. 60-76
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