The Profound Impact of Social and Mobile on Customer Relationship Management
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- Cleopatra Gibson
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9 Gartner has defined CRM as a business strategy over a decade ago. We stand by that definition. We believe that without this basic understanding, CRM will always be sub optimal, and will not generate the results that firms want. The definition is meant to be flexible so that it works for profits and non-profits alike, is not influenced by industry or geography, and withstands the test of time. The key is to understand that the core of the definition is nothing less than the transformation of a firm from product centric, to customer centric. That is not a trivial exercise. That is a complete transformation, and will only happen via a vision. Page 8
10 Strategic Imperative: Enterprises should use a strategic CRM framework to estimate, plan and promote their CRM initiatives, while building up their capabilities in small, piloted steps. You need capabilities in all these areas for successful CRM: 1. CRM Vision: Building a market position against competitors with defined value propositions based on requirements, personified by the brand and communicated 2. CRM Strategies: Turning the customer base into an asset through the delivery of CVPs, Gives objectives (e.g., development) and how resources will be used in interaction 3. Valued Customer Experience: Ensuring constantly that the propositions have value to customers and the enterprise, achieve the market position and are delivered consistently 4. Organizational collaboration: Involving the changing of culture, structures and behaviors to ensure staff, partners and suppliers work together to deliver what is promised 5 Processes: Managing customer life cycle processes (e.g., enquiry, welcome, complaints and winback) and processes in analysis and planning that build customer knowledge 6. Information: Ensuring the right data is collected, and the right information goes to the right place 7. Technology: Involving data and information management, customer-facing applications and supporting IT infrastructure and architecture 8. Metrics: Involving internal and external measures of CRM success and failure Page 9
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15 Gartner identifies 16 use cases in social for CRM. There are technologies available to support all of these use cases. We follow approximately 150 vendors in the social for CRM space. A lot of the use cases we covered, like the Seattle Sounders or Kia, are about marketing. Examples like what Warby Parker is doing speak to the work being done to improve the customer service experience. Page 14
16 Another issue is the robo-tweet or even templated tweet. The pre-approved company line being delivered time and time again, in line so that everyone can see the post isn't really driven by human sentiment but a machine, or a human operating like a machine. Recently a comedian took to his blog to accuse Progressive Insurance for not paying up after his sister was involved in a life ending accident when a drunk driver hit her. Now Progressive attempted to clear up some facts in an official statement where they noted that they were not the drunk driver's insurer but in the eyes of the public, Progressive's reputation was the one destroyed. Source: Page 15
17 Within the customer buying process, mobile marketing will become highly influential for purchasing decisions. Marketers must plan and execute mobile marketing strategies and technologies along the customer buying process to lead customers toward a purchase. Most marketers are familiar with the five stages of the customers' buying process, around which mobile marketing activities can be planned. The five stages are need-and-want recognition, information gathering, evaluation, purchase and post purchase Within each stage, marketers have the opportunity to improve the customer experience and influence the customer through all stages toward a purchase. Action Item: The mass adoption of the mobile channel among customers means the customer buying process will move from a mostly offline activity to an increasingly online activity. Therefore, marketers must respond with specific mobile marketing techniques that address each stage of the process and seek to influence customers through each stage. Page 16
18 Key Issue: What best practices can we learn from early adopters Strategic imperative: QR/color codes are more than a link to a Web page. Think through the entire campaign and ideally provide unique landing pages for each application of the QR/color code. Quick response (QR) and color codes are high-density, two-dimensional bar codes that are readable by mobile phones and computer cameras with the correct software. Color codes enable the same physical space to encode more information by incorporating color in any pattern or shape, such as a logo, that attracts attention. Users capture the mono or color image, which, after decoding by the device, launches its browser, linking the device to the URL embedded in the code. Relatively advanced in Asia, the use of QR codes is poised to take off in North America once the tipping point a sufficient number of enabled mobile phones balanced by marketing campaigns employing QR codes is reached. QR codes have the potential, when used in an integrated marketing campaign that leverages their unique capabilities, to drive significant revenue by providing the instantaneous response to user queries that enable calls to action that print cannot offer on its own. Page 17
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