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

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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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