chapter 17: future of crmv. kumar and w. reinartz – customer relationship management 4 popular...
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Chapter 17: Future of CRM
2 V. Kumar and W. Reinartz – Customer Relationship Management
Overview
Topics discussed:
Social CRM
Popular Social Media Channels
Consumer-to-Consumer interaction: A new marketing portal
Social CRM Strategies
Sentiment Analysis
Global CRM (GCRM)
Information Technology Needs
Global Diffusion
Database CRM
Cloud Computing
Privacy Issues and Concerns
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Social CRM
Emergence of the social web and peer-to-peer networks/conversations increasingly
influence how customers interact with each other and how businesses use the social media
tools to manage customer relationships
Popular Social Media Channels
Blog
Social networking Platforms
Podcasts and Internet Radio
Mobile Application
Widgets
Viral Videos
Social Coupons
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Popular Social Media Channels 1/4
Blogs
Increase in number of blogs
300,000 in 2003 to 112 million in 2008
Blogsphere has become a key marketing platform to improve efficiency in
communications, customer service, and brand marketing
Blogs became an important medium that marketers can channel favorably to promote
their products, services, and brands
Most cost-effective marketing tools
High ROI (yield $45.06 for every dollar spent in 2008)
Highest frequency out of all clicking marketing formats
Benefits include timing, accessibility, and customizing
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Popular Social Media Channels 2/4
Social networking Platforms
Substantial growth over the past 5 years
High potential marketing and CRM toll
Studies show a direct positive correlation between the use of social networking for
customer acquisition and growth in revenue
Benefits:
Identifying and targeting micro-segments of consumers
Starting dialogs with consumers
Raising and improving brand awareness
Podcasts & Internet Radio
Useful to marketers in segmenting and
customizing their messages on an individual basis
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Popular Social Media Channels 3/4
Mobile Application
Mobile Applications are gaining a greater share
of users’ time commitment than the web is
Benefit: allows marketers to cater to specific
customer segments with targeted mobile applications
Challenges: marketers need to constantly update
or replace the application with more relevant offerings
Widgets
Gaining popularity from a customer standpoint, but companies are still reluctant to
invest in widgets
Concerns: widgets are experiencing “application burnout”
E.g. Peanut recall widget
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Popular Social Media Channels 4/4
Viral Videos
Emerged as a user-driven method of communicating
Exhibit the potential for marketing and promotions
Many brands use viral videos to strengthen brand awareness and brand
association
Ex) Dos Equis “The most interesting man in the world
Social Coupons
Digital coupon is growing at an exponential rate
Customer acquisition method for business
New product/brand research portal for customers
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Consumer-to-Consumer Interaction 1/3
Social Media outlets are becoming a new marketing portal for
Consumer-to-Consumer(C2C) Conversations
C2C conversations brought customers a new level of autonomy
Provide customers a freedom and accessibility to view, discuss, and judge products
and services
Provide the ability to formulate opinions on products on their own terms
Enable consumers to actively engage and participate
in the development and marketing process of
products and services
Influence their peers in buying decisions
Access information on customers’ own terms
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Consumer-to-Consumer Interaction 2/3
Increasing popularity of these social media tools impact B2C CRM
Companies stop having complete control on the their web-based content
Companies need to constantly participate in the online communications and adapt their
offerings accordingly
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Consumer-to-Consumer Interaction 3/3
Establishing new infrastructure for Social CRM
Listening as a First Step
Increasingly active role of the customer is changing the nature of business
Companies should listen and utilize information collected on customers
Identify the best strategies in addressing customer demands, concerns, and wants
Mutual Purpose and Transparency
Essential to define the “Mutual Purpose” that states the incentives for both
customers and the company
Understand why the company the company is actually going onto social network,
and how it will positively affect them and their customers
Important to stress authenticity, transparency, and relevancy in order to stay
involved in the customers process of obtaining information
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Social CRM Strategies
Social Strategies – Not Social Tools
Need to focus on creating adaptable social platform rather than focusing on available
tools
Social tools evolve and change constantly
Social computing and interactions are becoming more essentia
Implementation: Task-specific
Utilize a social media tool because of a need or a purpose
Social CRM has very few recognized and recommendations to implement
Still in the infant stage of its life cycle
Few successful implantation:
Trial and error and fast follower strategy
We’re on Facebook, in order to achieve ABC, which we will
accomplish by XYZ We are on Facebook
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Sentiment Analysis
Sentiment Analysis help companies uncover the intended meaning behind consumer
opinion and reviews
Text Analytics: Fast growing technologies for automate sentiment analysis
Collect text data on consumer insights from social media platforms, news articles, or
information database
Provide an objective summary of consumer reactions and responses to a company
Ex) MediaVantage by Lexalytics
Web-based application for media relations
Enable firms to implement automated
sentiment analysis of blogs, social medi
Marketers can monitor their company’s reputation,
align their corporate teams and messaging, and
measure the results of their communication efforts
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Global CRM 1/2
Global CRM (GCRM): Strategic application of the processes and practices of CRM by firms operating in multiple countries, or by firms serving customers who span multiple countries Firm level GCRM: production, operation, product portfolio, and firm size
Customer level GCRM: customer expectations, satisfaction drivers, loyalty, profitability
Informational Technology Needs Multinational enterprises are implementing Software as a Service (SasS) models
Integrate customer and company level data across various regions
lower costs in attracting and retaining customers
Increase employee productivity and call center efficiency
Create more accurate sales forecasting for increased customer sales and
satisfaction
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Global CRM 2/2
Global Diffusion
Regional and National Heterogeneity
Companies are challenged on designing and implementing business and
marketing strategies in various cultural environments and global customers
Managers can better understand and align with their partners and clients from all
regions
Facilitating the process of making informed decisions
Adapting appropriately to the economic, culture, and political climates of each
area of business
Applying it as a firm
Essential to develop a uniform outlook on GCRM strategy in order to adapt and
implement it on a regional or national level
Develop a CRM strategy at the highest level of management, but leave room for
needed adaptability
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Database CRM
CRM needs more cost-efficient digital platforms for using, accessing and constantly
updating the databases
Cloud Computing
Allows for more accessible and customizable implementation of CRM pratices
Allows for remote access and real time updating in order to keep up with the dynamic
and evolving nature of databases
Applied easily and are economical without any infrastructure or maintance obstacles
Privacy Issues and Concerns
Accessibillity of web-based platforms cause concern for privacy issues
Online companies place web bugs called „cookies“ in users‘ computer to acquire user
information
Online marketers and researchers should reassure customers and participants about
the security of their personal information
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Summary
CRM is undergoing significant changes with growing trends of social CRM, GCRM, and
cloud computing
Development in speed, reliability and spread of information channels such as Social Media
have effected B2C and gradually influences B2B
CRM database management has grown tremendously from an aggregate level to
individualized and customized level that can be applied globally via cloud computing
Advancement of CRM have given rise to privacy issues and concerns such as identity theft,
privacy right violations, cyber stalking