In my previous blog post I touched on SRM (social relationship management) or, as others call it, social CRM- a hybrid of social media marketing and traditional customer relationship management techniques and measures. I believe that this is something that marketers must consider; thousands of customers are reachable via social networking websites thus these pages are a viable channel to build and enhance customer relationships.

I recently read a piece by Baird & Parasnis (2011) who carried out research on the practicality of social customer relationship management. The pair suggest that companies are not prepared for the shift over to social media unless they understand user’s behaviour online and tailor campaigns and approaches towards customers’ needs.

The difference between what customers seek through social media and what companies are offering is huge, and so organisations need to close the gap to obtain real value from their social media marketing. This would be to enhance relationships, increase revenue and become more competent within the virtual world (Baird & Parasnis, 2011).

So, to effectively take advantage of social media, customer experiences that carry concrete value must be thought out to obtain customers’ time, endorsements and their data. However, as discussed by Baird & Parasnis (2011), businesses are failing to deliver relevant experiences as firms are mistaking the need to build customer relationships with users’ incentives for engagement.

This is an interesting point. Many firms display adverts and sales on our timelines in an attempt to market a brand, but this alone will not build customer relationships or be an efficient SRM tool. As a consumer, we are looking for something more from the firm. The odd promotional tweet may encourage impressions to a website, but a constant feed of advertisements is not usually the users’ incentive to engage with a firm online.

Taylor (2012) backs this up with the suggestion that a common mistake amongst businesses is that they tend to overkill their ‘fans’ or ‘followers’ with excessive marketing. Click through to examine his aesthetically pleasing infographic on this topic. Images, ads and videos are all useful to attract customers’ attention online, but do they deliver value and meet our needs? Taylor (2012) suggests otherwise (see figure 1) as consumers demand alternative conversations from the brands they follow.
Figure 1
Are customers getting what they expectSource: Taylor (2012)

 

Marketing is fundamentally used within business to satisfy consumer needs by creating a ‘want.’ This shouldn’t be any different when shifting traditional methods to online channels; if brands do not meet expectations they will fall behind.

Baird & Paransis (2011) do make a valid point about closing the gap between companies and consumers perceptions. Nonetheless, they do not consider the difficulty of this. Figure 1 demonstrates that 67% of Facebook ‘fans’ decided to ‘like’ a particular page with the impression that they should be eligible for exclusive offers. But how far can firms satisfy this want? As consumers we are not easy to please! I may join an online community by becoming a fan of a brands page, payment will cost me one ‘like’ and for that I expect to receive money off vouchers, the eligibility to enter competitions and gain special rewards. To fulfil these wishes takes time and technologies to perform in social listening and social engagement (Dan, 2013). But loyal customers are profitable, and 49% of customers ‘like’ a Facebook page because they are loyal to the brand so are valuable users (Taylor, 2012) -see figure 2, so perhaps this is worth the investment.

Figure 2
Does likes mean loyal customer
Source: Taylor, 2012

Baird & Parasnis (2011) and Taylor (2012) consider a similar problem within marketing on social media and meeting consumer needs. It is essential to be aware of this complication in an attempt to perform better online, however is not a simple task and both do not take this into thought. It will take time and money to invest into the right social monitoring software and design creative campaigns to build a bridge between what consumers want and what companies can offer via their social media pages. However, as Dan (2013) proposes, the outcome allows for improved brand health and relationships thus increasing sales and revenue.

 

Aisha Merrick

#bbsdigmarket

 

References

Baird, C. and Parasnis, G. (2011) From social media to social customer relationship management. Strategy & Leadership, Vol 39, No 5, p30 – 37

Dan, A. (2013) ‘When It Comes To Social Media, Consumers Tell Brands To Speak Only When Spoken To’ Forbes, 31st March 2013 [Online] <http://www.forbes.com/sites/avidan/2013/03/31/when-it-comes-to-social-media-consumers-tell-brands-to-speak-only-when-spoken-to/> [accessed 09 February 2015]

Taylor, J. (2012) ‘Do Facebook ‘Likes’ Mean Loyal Customers?’ Our Social Times, 4th May 2012 [Online] <http://oursocialtimes.com/do-facebook-likes-mean-loyal-customers-infographic/> [accessed 09 February 2015]