Managing Customer Relationships: A Strategic Framework
Chapter 8
Customer Insight, Dialogue, and Social Media
Course Title Instructor
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
1
Chapter 8 Preview
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Review IDIC Framework: Interact
Role of Social Media in Interaction
Bottom-Line Benefits of Social Media
Four Ways to Use Social Media to Build Customer Relationships
Listening to the Customer
Crowd Service
1-9-90 Dynamic
Transparency and Trust
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Action
Analysis
…customers as unique addressable individuals
…by value, behavior and needs
…more cost -efficiently and effectively
…some aspect of the company’s behavior, offerings, or communications
Identify
Differentiate
Interact
Customize
Review: IDIC Framework
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Role of Social Media in Interaction
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Recall from Chapters 1 and 2: customer relationship is the goal, and technology is a means to that goal
Customers are human beings, and human beings prefer conversing with other human beings – social media is one cost-effective way to make that happen
The key question: how can social media help an enterprise interact with customers and prospects in order to create and manage profitable, mutually beneficial relationships with them?
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Bottom-Line Benefits of Social Media
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Increased online buzz around a brand, product, or service, increasing product sales across channels
Improved search results from customer conversations about the organization, increasing Web site traffic
More influence from customer recommendations in social networks and online communities than offline referrals, which leads to more deal closings
Deeper insight into customers’ uncensored preferences, needs, and behaviors
Customers helping other customers online, decreasing service costs
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Four Ways to Use Social Media to Build Customer Relationships
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
To engage and activate the enterprise’s most enthusiastic supporters to spread the word about the brand
To empower customers to defend the enterprise’s brand in times of stress and help it recover from missteps or disasters
To listen in on customer conversations that involve the enterprise and/or its competitors
To enlist the company’s own customers to help provide service for other customers
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Listening to the Customer
What to listen for: brand and customer
Brand monitoring
Who is talking about the brand?
What are they saying?
Where are they talking?
Customer monitoring
What pain points are being highlighted?
What is the emotion or sentiment being shared?
What information is being shared about various customer experience touchpoints?
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Crowd Service: Customers Helping Other Customers
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
When creating an online community to encourage crowd service (myfico.com example):
Invite super-users to join the community.
Market and advertise the community.
Deploy community platform technology that allows users to rate the answers the super-users provided.
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1-9-90 Dynamic of Social Networks
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
Like the Pareto principle, the 1-9-90 is a power law:
1 percent post
9 percent respond to posts
90 percent just read the posts
Two important implications:
Must invite the 1 percent to your online community
Don’t mistake lack of actual conversational input as lack of interest – 90 percent may not post at all, but they’re still using the information. 10 percent response is typical.
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Transparency and Trust
Managing Customer Relationships: A Strategic Framework, Second Edition
Don Peppers and Martha Rogers
The all-pervasive requirements for social media effectiveness:
Honesty
Straightforwardness
Transparency
Traditional marketing and the two realities
Did not require trustworthiness, only believability
Social media and speed of connectivity quickly exposing scandals and cover-ups
Reveals the two realities of traditional marketing spin: the genuine reality, and a separate, created reality
Building genuine relationships with customers requires transparency at all levels
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