CUSTOMER RELATIONSHIP MANAGEMENT…. NOWADAYS, A MUST IN COMPANIES SOCIAL MARKETING STRATEGIES

Currently social networks in particular and the environment in general 2.0 have shown that users do an increasingly widespread , use of alternatives to traditional ways to present their complaints, their feelings toward a brand , their concerns, or needs.

The basis of the social media is the participation and power of consumers. Users of content generators, and also emit reviews or opinions about products or services of companies. Given the warnings on the participation of companies in the social media, people are communicating and talking about your company, if you are not have a big problem (Kerpen, 2011).

It is an evolution of the marketing based on the 4 P’s ( product, price , promotion and distribution) to the 4 C ‘s, primary functions of social software : communication, cooperation and liaison and collaboration, and hence arise 4C ‘s of social media marketing : content, context , and community connections (Chaffey and Smith, 2008).

In this context, the deployment of current marketing strategies with a fundamental role of information technology and communication, the management of customer relationships has led to a new concept: CRM (Customer Relationship Management). Decision making cannot rely solely on intuition, but must be based on current and accurate about every customer; their information needs and behavior. This will be a critical factor in the pursuit of success (Evans, O’Malley and Peterson, 2004). Therefore, CRM is diversely understood as customer relationship marketing and/or customer relationship management. Although in relation with relationship marketing, the aim of CRM is based on the technology which tries to manage all customer contact points in order to simplify the incorporation of various database systems to provide a single picture of the customer.

SOCIAL CRM, THE NEW TREND.

For every company, the CRM represents the development of business activities necessary to identify, acquire, investigate and retain loyal customers and profitable to deliver the right product or service to the right customer through the right channel, at the right time and the right cost. Hence, CRM integrates sales, marketing, service, resource planning and enterprise management functions of the supply chain through automation of business processes, technology solutions and information resources in regards to maximize contact with each customer or user (Galbreath and Rogers, cf. Law, 2003).

In the other hand, we have that the CRM for customers which represents simplicity and confidence to shape complete their transactions, regardless of the means by which the interaction of. (Gulati and Garino, 2000 cf. Chen and Popovich 2003). The managing relationships with them effectively and efficiently influence the satisfaction and retention thereof. (Reichheld, et al, 1993 cf. Chen and Popovich, 2003). The CRM also provides good results for companies such as increase sales and reduce costs in their operations (Chen and Popovich, 2003).

In this sense, to “really learn of the user or customer”, nowadays we need to listen to: the social and active listening is the basis of all this strategy. Something that does not differ too much from traditional CRM, which is formed as the result of Social CRM, trying to complement what is already collecting and analyzing the client file. Thus, a good Social CRM solution is one that not only integrates Twitter, Facebook, and LinkedIn, but also contact information, email services, communications and historical information residing in the company CRM systems (Kerpen, 2011).

CONCLUSION…. WHY DO WE HAVE TO APPLY IT IN OUR COMPANIES?

According to PGreenblog (2009), Social CRM is ” a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s response to the customer’s ownership of the conversation”.

Consistently uses Social Media evolve and increasingly what Social is adopted by users at an extraordinary rate , a clear example is to listen daily phrases like ” Find me on Facebook “, ” I read it on Twitter ,” “Question on Twitter or Facebook ” ” you’re already on Google+ , ” among many others.

Today we know that people are most of their time online on social networks and prefer to be contacted via these new media.

We also know that many companies are already making efforts to respond to the market needs through social networks, allocating resources to administer accounts and interact. But the evolution of social networks expands used as Marketing, Sales, and Service customer among others and in addition, it is common to see brands with over 50,000 fans and followers or a resource assigned to service all those user accounts.

If we analyze the relationship of company resources to the use of social media and the number of users by brand or company that is going to be winning over time, definitely the effort in social networks must evolve to not only pond in just generating Presence and Promotion for the company without obtaining clear and tangible benefits across the Social Media. In this sense, companies must evolve, defining internal and external strategies supported by a technology platform to support them to achieve their goals.

 

REFERENCES:

  • Chen, I. J. and Popovich, K. (2003) ‘Understanding customer relationship management (CRM): People, process and technology’. Business Process Management Journal 9 (5): 672-688.
  • Chaffrey , D. Smith, PR, 2008. Emarktingexcellence.3rd ed. Oxford. Linacre House.
  • Gulati, R. and Garino, J. (2000) ‘Get the right mix of bricks & clicks’, Harvard Business Review, May-June, pp. 107-14
  • Kerpen, D, 2011. Likeablesocialmedia. US. The Mc Graw-Hill companies.
  • O’Malley, L. and Mitussis, D. (2002) ‘Relationships and Technology: Strategic Implications’, Journal of Strategic Marketing, 10, pp. 225-38.
  • Pine, J.B. II, Peppers, D. and Rogers, M. (1995) ‘Do you want to Keep Your Customers Forever?’, Harvard Business Review, March-April, pp. 103-14.
  • Ryals, L. and Knox, S. (2001) ‘Cross-Functional Issues in the Implementation of Relationship Marketing Through Customer Relationship Management’, European Management Journal, 19(5), pp. 534-43

 

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One thought on “CUSTOMER RELATIONSHIP MANAGEMENT…. NOWADAYS, A MUST IN COMPANIES SOCIAL MARKETING STRATEGIES

  1. Dear Alberto,

    Thank You very much for “warning” businesses of the importance of constantly maintaining their Social Networking sites to ensure that negative posts made are dealt with diplomatically.
    Firstly, as stated most customer complaints are now carried out on Social Networking sites, in agreement was an article posted on OutSocialTimes (2014) stating that venting negative feelings about customer service occurred mainly on Social Networking Sites. However it would have been useful to have had more information on why this would be the case for example: flexibility of being able to post, the customer being able to remain confidential or perhaps that the customer finds it easier to make a complaint online than face to face. You have also discussed the another perspective to negative comments which really shows that you have assessed both the positive and negative of such a situation, by mentioning that negative comments on social media can be turned into a strength: that it is better to have comments than no comments at all. To add to this negative comments can be turned into an opportunity if the complaint is handled successfully (Helpscout, 2014).

    Secondly, you discussed the evolution of the Four Ps of marketing to the Four Cs of content, context and community connections (Chaffrey & Smith, 2008). Wollan et al., (2011) however still believes that the that the traditional Four Ps of marketing are still applicable to Social Media however with the addition of one more P: People in the argument that People is needed to express the customer company relationship of two way communication made possible by Social Media. It would have been nice to have compared these two concepts into more detail.

    Thirdly, you have expressed the emergence of CRM yet outlining mainly the advantages of CRM such as “retaining loyalty” (Galbreath and Rogers, cf. Law, 2003) and “increasing guest satisfaction” (Reichheld, et al, 1993 cf. Chen and Popovich, 2003). However I would have liked to have understood more to this in regards to how CRM results in these outcomes. Additionally are there any negative factors to CRM?

    Lastly, in your conclusion you have made a bold statement; “today we know that people are most of the time online on social networks and prefer to be contacted via this new media.” This statement has not been referenced, I would like to know if you have found any statistical evidence of this statement?

    Overall thank you very much for this insightful blog post Alberto!

    Best Regards
    Julia Harker-Mortlock

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