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An often overlooked tool when developing a customer loyalty strategy is social media. This presentation describes how you can develop your social media CRM strategy to enhance and maximize customer loyalty.
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Harnessing the Full Power of Social Media to Drive Customer Loyalty
Marc Steiner, PrincipalClay Walton-House, Senior ManagerAntje Helfrich, Manager
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Social CRM Strategy for Loyalty Marketers
Defining Social CRM Strategy
Deliberate integration of social media into
a comprehensive multi-channel CRM strategy, taking advantage of social media’s unique characteristics to maximize customer loyalty.
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Social Media Requires Special Focus from Loyalty Marketing
Social represents a large opportunity for driving loyalty, but…
Is often underutilized by loyalty marketers:• Historically a channel focused on brand and acquisition
• An organizational function often separate from Loyalty Marketing teams
• Often integrated with loyalty strategies on ad hoc basis
Converting on the opportunity presented by social media requires an intentional approach.
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The Opportunity at HandWhat Social Media Presents to Loyalty Marketers
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The Social Media Landscape Continues to Mature
65% of consumers use social to connect with brands and research products
One in five customers engage with a brand on social media after a purchase to make sure they are getting as much value out of their purchase as possible
Brand fans are 11% more likely to continue using the brand, and spend 43% more than non-fans!
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The Social Media Landscape Continues to Mature
65% of consumers use social to connect with brands and research products
One in five customers engage with a brand on social media after a purchase to make sure they are getting as much value out of their purchase as possible
Brand fans are 11% more likely to continue using the brand, and spend 43% more than non-fans!
Social is the second fastest growing marketing channel (after Mobile)
Social Media spend expected to
double by 2016
40% of “leader” companies prioritize incorporating social media touch points into CRM(compared to 26% of “follower” companies)
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As a Channel, Social Media Presents Unique Advantages for Loyalty Marketers
NEAR REAL TIME PROVIDES IMMEDIACY
PEER TO PEER
ENABLES TWO-WAY CONVERSATION
CUSTOMERS OWN AND INFLUENCE THE EXPERIENCE
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As Functional Disciplines, Social Media & Loyalty Marketing Intersect in Three Key Areas
ENGAGING & BUILDING RELATIONSHIPS WITH THE BASERetention & loyalty optimized contentExclusive offersLoyalty program integrationPeer to peer engagement: building a community around the brand
INTERCEPTING DETRACTORS & MITIGATING CHURNIdentify at-risk customersMitigate low engagement / churn riskMitigate detrimental brand impact
LEVERAGING PROMOTERSIdentify influential promotersAmplify promoters’ voices programmaticallyLeverage promoters for acquisition
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A Social CRM Strategy Framework Helps Define Key Activities for Leveraging Social in Loyalty Marketing
DRIVE CUSTOMERS TO SOCIAL CHANNELS
ENGAGE & SUPPORT BASE
INTERCEPT DETRACTORS
LEVERAGE PROMOTERS
BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM
2 3 4
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“Pillars” 2, 3, and 4 in the framework represent the primary focus of loyalty marketers in developing and executing a defined Social CRM strategy.
The ChallengesWhat Prevents Loyalty Marketers from Harnessing the Full Power of Social Media
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Many Companies Face Significant Challenges in Harnessing Social Media
Only 52% of companies have executives that are informed, engaged, and aligned with social strategy
Only 48% of companies state that they have a clear vision of how social media will improve customer relationships
Only 34% of companies have clear metrics that associate social activities with business outcomes
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Challenges Fall within Three Key Areas
#1 – LACK OF ORGANIZATIONAL ALIGNMENT
#2 – LACK OF CUSTOMER INSIGHTS RELATED TO SOCIAL MEDIA
#3 – TECHNOLOGY & DATA LIMITATIONS
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Challenge #1: Lack of Organizational Alignment
Social media functionally siloed or highly matrixed
Social KPIs not aligned to overarching business objectives
Executive skepticism
Unknown ROI
Weariness over less controlled conversations & properties
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Challenge #2: Lack of Customer Insights Related to Social Media
Customer Desires for Social Engagement are Unknown
Customer Social Usage Behaviors are Unknown
Types of social properties used
Type of devices used
Types of conversations customers have in social channels
Who they talk to, and how often
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Challenge #3: Technology & Data Limitations
Social Media Technologies have not Reached Scale
Social Listening
Tracking, Measuring, & Reporting
Automation
Data is Distributed & Difficult to Leverage
Social media data is separate from other customer data sources
Difficult to append data from social properties to broader customer data
Difficult to identify and match customers to social media profiles
Test & Learn Capabilities Lack Scale
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From Opportunity to StrategyDeveloping a Social CRM Strategy to Harness the Full Power of Social for Loyalty
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4 Steps to a Develop a Social CRM Strategy
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4. Prioritize & Plan Implementation
1. Confirm Customer Base Marketing Goals
2. Assess Current State
3. Identify Opportunities & Required Investments
1. Confirm Customer Base Marketing Goals
REDUCE CHURN
NPSKey Drivers
RenewalSave/Winback
DRIVE SAVINGS
Care Call Deflection
INCREASE REVENUE
X-Sell / Upsell
Referred Subscribers
BUSINESS OUTCOMES
KPIs
Loyalty objectives will vary by company / product / industry – e.g.: Subscription business with high cost of care (telecom, cable, SaaS)
KPIs should tie to measurable business outcomes that drive bottom-line impact; though seemingly obvious, this is a common misstep that companies make; e.g. using number of Facebook fans as desired business outcome.
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2. Assess Current State
Understand your audience
Loyalty insightsSocial media technographicsSocial media coverageBehavioral data
Assess programs and capabilities
Social footprintPrograms, campaigns, contentTeams, agenciesOperating model, processes, governanceData, systems, tools
Survey the landscape
Internal: executive support, social competencies CompetitorsBest practices
Once overarching desired business outcomes have been established, a comprehensive understanding of the Current State must be achieved.
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Potential programs and tactics should be informed by:
Competitors
Best Practices
Internal Inventory
Opportunity assessment includes review of investments needed:
No New Capabilities Required
Requires Realignment of Existing Capabilities
Requires Net New Capabilities
3. Identify Opportunities & Required Investments
Audience Insights
Current State understanding then informs identification of potential Social CRM programs and required resources needed to deliver results.
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3. Identify Opportunities & Required Investments
Identification of new Social CRM programs and tactics can be facilitated by use of the Social CRM Strategy Framework; e.g. what tactics will best address “pillar” #2—engaging and supporting your customer base?
DRIVE CUSTOMERS TO SOCIAL CHANNELS
ENGAGE & SUPPORT BASE
INTERCEPT DETRACTORS
LEVERAGE PROMOTERS
BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM
2 3 4
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POTENTIAL PROGRAMS & TACTICS
REQUIRED CAPABILITIES
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SOCIAL KPIs & METRICS
REDUCE CHURN
NPSKey Drivers
RenewalSave/Winback
DRIVE SAVINGS
Care Call Deflection
INCREASE REVENUE
X-Sell / Upsell
Referred Subscribers
• NPS among Followers / Non-followers• Correlation with Engagement• Renewal Offers by Channel
• Content Views x Topic• Call Volume x Topic
• Campaign/ Offer Performance
• Offer Shares• Referrals
4. Prioritize & Plan Implementation
New Social CRM programs and tactics should be prioritized based on how effectively they support the desired business outcomes and KPIs established earlier in the strategy development process.
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Following this Process to Define a Social CRM Strategy Delivers Significant Business Value
CLEAR “CHARTER” FOR HOW SOCIAL MEDIA CAN DRIVE LOYALTY
ALIGNMENT OF FUNCTIONAL RESOURCES WITH CLEAR MAPPING
TO OVERARCHING BUSINESS OBJECTIVES
IMPROVED CUSTOMER EXPERIENCE
IMPROVED CUSTOMER INSIGHTS
About Lenati
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Who We AreLenati partners with clients to develop innovative sales and marketing strategies, elevating customer experience and transforming how companies go to market. We help organizations build stronger customer connections.
Our ExpertiseLenati’s services address four broad areas of customer need:
Select ClientsLenati works with a variety of Fortune 500 companies:
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What We Do
Tailored to the unique needs of our clients, we provide deep expertise centered on creating customer connections through four primary solution areas:
Helping clients confront common challenges: New product introductions & product revitalization
Expansion to new markets and new channels
Customer acquisition, retention & growth
Marketing and sales execution, optimization & measurement
Sales team creation, transformation & enablement
Loyalty and retention strategies and programs
Channel partner selection, on-boarding & management
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Customer Retention & Loyalty Services
Loyalty Insights & Analytics – Develop a 360° profile of your customers Customer Research Segmentation & Modeling Data Mining
Retention & Loyalty Strategy – Build the vision to improve customer engagement Strategy Definition Segment-Specific Models Business Valuation
Loyalty Program Design – Build, launch, enhance or retire a program Program Design Program Optimization Re-launch or Retirement
Streamlined CRM Operations – Get the most out of your people & process Organizational Design Process Improvement Program Integration & Consolidation
Technology Platforms – Evaluation & selection of supporting technologies Mobile Strategy Social CRM Strategy CRM & Marketing Automation Platforms Loyalty Program Platforms
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About the Authors
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Clay Walton-House, Senior ManagerRetention & Loyalty Services
As the leader of Lenati’s Customer Retention & Loyalty Team, Clay helps Fortune 500 companies create and implement new and interesting customer engagement strategies that accelerate growth and build loyalty. His expertise lies in understanding consumer behavior and translating it into actionable customer insights. Clay has a proven track record of successful program design & optimization and CRM operations, helping uncover ways to build retention and loyalty strategies into a company’s broader business model.
Marc Steiner, PrincipalCustomer & Product Strategy Services
Marc leads Lenati’s Customer & Product Strategy Team, and has a passion for combining his 20 years of management consulting expertise with insights from fields as diverse as demography, anthropology, military strategy, and religious studies to help rethink fundamental approaches to product and customer strategy. Marc has been an advisor to companies across numerous industries, including leading brands like Starbucks, T-Mobile, Microsoft, and Adobe.
Antje Helfrich, ManagerSocial Media Marketing Services
Antje has over 15 years of experience working in the intersection of business, technology and consumers, both inside corporations and as a consultant. She has an extensive track record in strategic planning, market and customer research, and marketing and program management. As head of Lenati’s Social Marketing practice, Antje has recently developed a Social Marketing Operating Model and a Social Measurement Framework for a Fortune 50 global company, and a Social CRM Strategy for a leading wireless carrier.
Connect with Us
Headquartered in Seattle
1300 Dexter Ave N. #100Seattle WA 98109
Phone: (800) 848-1449Email: [email protected]
Lenati.com
Twitter.com/LenatiLLCLinkedIn.com/company/Lenati-LLCFacebook.com/LenatiLLCwww.lenati.com/blog
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