L4: Customer Experience and CRM in the digital age Flashcards
What is Costumer Journey?
the process a customer goes through, across all stages and touch points, that make up the customer experience.
What is customer experience?
a multidimensional construct focusing on a customer’s cognitive, emotional, behavioral, sensorial, and social responses to a firm’s offerings during the customer’s entire purchase journey.
Which 4 social media touchpoints in social media?
Brand-owned, partner-owned, customer-owned, social/external
Why is social media important for customer experience management?
Customers now interact with firms through myriad touch points in multiple channels and media, resulting in more complex customer journeys.
· More complexity; Explosion in potential customer touch points and reduced control of customer experience
· Omnichannel-management of different touchpoints (e.g., different social media platforms)
More social: Customer-to-customer interactions through social media customer experiences are more social in nature, and peer customers are influencing experiences as well.
What is CRM?
CRM is an ongoing process that involves the development and leveraging of market intelligence for the purpose of building and maintaining a profit-maximizing portfolio of customer relationships.
What is difference between effort aimed acquisition and retention?
In allocating marketing effort, distinguish between effort aimed at acquisition (building relationships) and effort aimed at retention (maintaining relationships)
Describe CRM as a process
CRM is a macro-process that encompasses all the activities for pursuing a long-term, profitable, and mutually beneficial customer relationships; from a narrower perspective, it is a process limited to the management of customer interactions to establish and maintain durable worthwhile relationships.
Describe CRM as strategy
Firms should design and prioritize the investment of resources on relationship building and maintenance in line with the customer’s lifetime value.
Describe CRM as a philosophy?
Customer loyalty, and thus profitability, requires a continuous understanding of customers’ evolving needs for the best value delivering.
Describe CRM as capability?
The potential, additional competitive advantage that CRM can provide is tied to the capacity of gathering knowledge on current and prospective customers, and to act upon it, for instance by proactively reshaping customer interactions.
Describe CRM as technology?
Technologies for managing knowledge and interaction, linking front- and back-office functions, play a non-negligible role in firms’ relationship management efforts.
What is social CRM?
A social CRM strategy is a form of collaborative interaction, including firm– customer, inter-organizational, and intercustomer interactions, that are intended to engage and empower customers, so as to build mutually beneficial relationships with the firm and lead to superior performance.
Why is social media important for CRM?
- Connection: Social media enable firms and customers to connect in ways that were not possible in the past.
- Interaction and Influence: Social media have transformed the way firms and customers interact and influence each other. Social interaction involves “actions,” whether through communications or passive observations, that influence others’ choices and consumption behaviors.
Data: Social media data has made it increasingly possible for companies to better manage customer relationships and enhance decision making in business important source of customer analysis, market research, and crowdsourcing of new ideas
Which challenges are there in online CRM?
· Lower search costs
· global competition
· anonymity due to a lack of interpersonal interactions
· Very complex relationships
Customer spreading their dissatisfaction and complaints through social media
Evolution of online CRM
· Seamless relationships
· Networked relationships
· Omnichannel relationships
· Personalized relationships
Anthropomorphized relationships
Seamless relationsship
· Online relationships aim to provide customers with a seamless experience.
· Eliminates constraints related to time and geographical distance.
· Purchasing and communicating with seller firms has become more seamless than offline interactions, facilitating stimulating flow experiences.
Seamless online experience can enable flow states and foster long-term relationships (especially desirable in the purchase phase).
Omnichannel relationships
Channels differ in benefits and costs
· Customers differ in their preference and usage of channels
· Channel choices are affected by one another because of lock-in effects and crosschannel synergies.
Social Media plays crucial role
Networked relationsships
· In online relationships, more so than in offline relationships, individual customers’ decisions and behaviors are affected not just by the focal seller’s actions but also by the quality, breadth, and composition of their customer-to-customer networks and networks with other firms.
In online contexts, relationship marketers need to understand individual customers’ roles in their network, identify key influencers among this network, and limit negative network effects to keep problems with single customers from spreading across a larger network è complex network of relationships
Personalized relationsship
· In online relationships, more so than in offline relationships, the collection and analysis of big data incurs mixed effects on online RM performance.
· The collection and analysis of big data facilitates individual customer personalization, which enhances online RM effectiveness through increased relevance.
The collection and analysis of big data spurs privacy concerns, representing a substantive dark side of online RM that may act as an existential threat to online RM performance
Future of personalization - facebased personalized marketing
· Face Technology: Marketers use our reflection in ads, extreme form of personalization, powerful tool to generate attention, makes ads more realistic and compelling
· Cocktail Party Effect: You’re at a crowded party in the middle of a conversation, oblivious to the chatter of voices in the background. Then all of a sudden, 20 feet behind you, you hear it: your name. Ten seconds ago, you had no idea what that person was talking about, but now your ears are glued to their conversation.
· Similar effect when you see your face online (e.g., in a social media ad or in a personalized face swap video)
Face technologies are already used: Example: FaceApp owns the faces of over 150 million FB users, Apples FaceID
Anthropomorphized relationship
· In online relationships, more so than in offline relationships, anthropomorphized, embodied virtual agents exert differential (positive and negative) effects on online RM performance.
· Anthropomorphized, embodied virtual agents stimulate psychological processes (e.g., commitment, trust, gratitude, reciprocity) similar to those evoked by human relational partners in customers and thereby enhance online RM performance.
Anthropomorphized, embodied virtual agents foster negative customer responses (e.g., threat, discomfort, eeriness) and thereby impede online RM performance
