Managing Customer Relationships in the Social Media Era: Introducing the Social CRM House
TL;DR: The convergence of social media and CRM creates pitfalls and opportunities, which are explored in this article, where the authors discuss how social media engagement affects the house's core areas (i.e., acquisition, retention, and termination) and supporting business areas (e.g., people, IT, performance evaluation, metrics and overall marketing strategy).
About: This article is published in Journal of Interactive Marketing.The article was published on 2013-11-01. It has received 638 citations till now. The article focuses on the topics: Social CRM & Customer relationship management.
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TL;DR: In this article, the authors present a framework for research in digital marketing that highlights the touchpoints in the marketing process as well as in marketing strategy process where digital technologies are having and will have a significant impact.
749 citations
TL;DR: In this article, a framework of social media's impact on brand management is introduced, arguing that consumers are becoming pivotal authors of brand stories due to new dynamic networks of consumers and brands formed through social media and the easy sharing of brand experiences in such networks.
682 citations
Cites background from "Managing Customer Relationships in ..."
...These findings illustrate that brand and customer relationship management (see Malthouse et al. 2013 in this special issue) are conceptually linked in a social media environment....
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TL;DR: In this article, the authors examined the effect of firm-generated content (FGC) in social media on three key customer metrics: spending, cross-buying, and customer profitability.
Abstract: Given the unprecedented reach of social media, firms are increasingly relying on it as a channel for marketing communication. The objective of this study is to examine the effect of firm-generated content (FGC) in social media on three key customer metrics: spending, cross-buying, and customer profitability. The authors further investigate the synergistic effects of FGC with television advertising and e-mail communication. To accomplish their objectives, the authors assemble a novel data set comprising customers’ social media participation data, transaction data, and attitudinal data obtained through surveys. The results indicate that after the authors account for the effects of television advertising and e-mail marketing, FGC has a positive and significant effect on customers’ behavior. The authors show that FGC works synergistically with both television advertising and e-mail marketing and also find that the effect of FGC is greater for more experienced, tech-savvy, and social media–prone custom...
614 citations
Cites background from "Managing Customer Relationships in ..."
...In the social media era, the term “social CRM,” in which firms engage in managing customer relationships through social media, is gaining prominence (Malthouse et al. 2013)....
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TL;DR: The researchers were able to provide an overview of the main themes and trends covered by the relevant literature such as the role of social media on advertising, the electronic word of mouth, customers’ relationship management, and firms’ brands and performance.
602 citations
TL;DR: The effectiveness of engagement marketing arises from the establishment of psychological ownership and self-transformation as discussed by the authors, and the authors provide evidence in support of the derived tenets through case illustrations, as well as a quasi-experimental field test of the central tenet.
Abstract: Customer engagement marketing—defined as a firm’s deliberate effort to motivate, empower, and measure customer contributions to marketing functions—marks a shift in marketing research and business practice. After defining and differentiating engagement marketing, the authors present a typology of its two primary forms and offer tenets that link specific strategic elements to customer outcomes and thereby firm performance, theorizing that the effectiveness of engagement marketing arises from the establishment of psychological ownership and self-transformation. The authors provide evidence in support of the derived tenets through case illustrations, as well as a quasi-experimental field test of the central tenet of engagement marketing.
602 citations
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TL;DR: A classification of Social Media is provided which groups applications currently subsumed under the generalized term into more specific categories by characteristic: collaborative projects, blogs, content communities, social networking sites, virtual game worlds, and virtual social worlds.
13,932 citations
"Managing Customer Relationships in ..." refers background in this paper
...We consider social media as a group of Internetbased applications that allow the creation and exchange of user generated content (Kaplan and Haenlein 2010)....
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...They can also include this information in models predicting churn....
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...Keywords: Customer relationship management; Social media; Engagement; Information technology; Customer insight; Employees; Key performance indicator...
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Journal Article•
TL;DR: Big data, the authors write, is far more powerful than the analytics of the past, and executives can measure and therefore manage more precisely than ever before, and make better predictions and smarter decisions.
Abstract: Big data, the authors write, is far more powerful than the analytics of the past. Executives can measure and therefore manage more precisely than ever before. They can make better predictions and smarter decisions. They can target more-effective interventions in areas that so far have been dominated by gut and intuition rather than by data and rigor. The differences between big data and analytics are a matter of volume, velocity, and variety: More data now cross the internet every second than were stored in the entire internet 20 years ago. Nearly real-time information makes it possible for a company to be much more agile than its competitors. And that information can come from social networks, images, sensors, the web, or other unstructured sources. The managerial challenges, however, are very real. Senior decision makers have to learn to ask the right questions and embrace evidence-based decision making. Organizations must hire scientists who can find patterns in very large data sets and translate them into useful business information. IT departments have to work hard to integrate all the relevant internal and external sources of data. The authors offer two success stories to illustrate how companies are using big data: PASSUR Aerospace enables airlines to match their actual and estimated arrival times. Sears Holdings directly analyzes its incoming store data to make promotions much more precise and faster.
3,616 citations
"Managing Customer Relationships in ..." refers background in this paper
...McAfee and Brynjolfsson (2012) argue that “big data” enable companies to make decisions on the basis of evidence rather than rely solely on intuition....
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TL;DR: The authors explored the theoretical foundations of customer engagement by drawing on relationship marketing theory and the service-dominant (S-D) logic, and developed a general definition of CE, and distinguish the concept from other relational concepts, including participation and involvement.
Abstract: In today’s highly dynamic and interactive business environment, the role of “customer engagement” (CE) in cocreating customer experience and value is receiving increasing attention from business practitioners and academics alike. Despite this interest, systematic scholarly inquiry into the concept and its conceptual distinctiveness from other, associated relational concepts has been limited to date. This article explores the theoretical foundations of CE by drawing on relationship marketing theory and the service-dominant (S-D) logic. The analysis also examines the use of the term “engagement” in the social science, management, and marketing academic literatures, as well as in specific business practice applications. Five fundamental propositions (FPs) derived from this analysis are used to develop a general definition of CE, and distinguish the concept from other relational concepts, including “participation” and “involvement.” The five propositions are used in the development of a framework for future r...
2,390 citations
TL;DR: In this paper, the effect of word-of-mouth (WOM) marketing on member growth at an Internet social networking site and compare it with traditional marketing vehicles is studied. But the authors employ a vector autoregressive (VAR) modeling approach.
Abstract: The authors study the effect of word-of-mouth (WOM) marketing on member growth at an Internet social networking site and compare it with traditional marketing vehicles. Because social network sites record the electronic invitations from existing members, outbound WOM can be precisely tracked. Along with traditional marketing, WOM can then be linked to the number of new members subsequently joining the site (sign-ups). Because of the endogeneity among WOM, new sign-ups, and traditional marketing activity, the authors employ a vector autoregressive (VAR) modeling approach. Estimates from the VAR model show that WOM referrals have substantially longer carryover effects than traditional marketing actions and produce substantially higher response elasticities. Based on revenue from advertising impressions served to a new member, the monetary value of a WOM referral can be calculated; this yields an upper-bound estimate for the financial incentives the firm might offer to stimulate WOM.
2,322 citations
Posted Content•
TL;DR: The concept of customer engagement behaviors (CEB) as mentioned in this paper is defined as the customers' behavioral manifestation toward a brand or firm, beyond purchase, resulting from motivational drivers, which includes a vast array of behaviors including word-of-mouth (WOM) activity, recommendations, helping other customers, blogging, writing reviews, and even engaging in legal action.
Abstract: This article develops and discusses the concept of customer engagement behaviors (CEB), which we define as the customers’ behavioral manifestation toward a brand or firm, beyond purchase, resulting from motivational drivers. CEBs include a vast array of behaviors including word-of-mouth (WOM) activity, recommendations, helping other customers, blogging, writing reviews, and even engaging in legal action. The authors develop a conceptual model of the antecedents and consequences — customer, firm, and societal — of CEBs. The authors suggest that firms can manage CEBs by taking a more integrative and comprehensive approach that acknowledges their evolution and impact over time.
2,291 citations