Relationship Selling and Online CRM as Sales Tool Flashcards
difference between relationship marketing and transactional marketing
RM
- orientation to customer retention (not single sales)
- continuous customer contact (rather than discontinuous)
- focus on customer value (not product features)
- long time scale (not short)
- high emphasis on customer service (vs little)
- high commitment to meeting customer expectations (vs. limited)
- quality as the concern of all staff (vs just production staff)
key activities in relationship marketing (cycle)
- new customer acquisition
- existing customer retention
- customer relationship development
- responsiveness to customers’ needs
- build trust
webcare
“[e]ngaging in online interactions with consumers by
actively searching the web to address consumer feedback”
goals/components of webcare
- customer care (satisfaction and customer retention)
- -> solve problems and exceed expectations - PR (reputation and relationship quality)
- -> signal issues and prevent crises - marketing (brand equity and sales)
- -> input r&D enhance eWOM
why engage in webcare?
To build, enhance, and nurture high-quality relationships with
consumers and other key publics in terms of:
• Satisfaction
• Trust
• Commitment
• Control mutuality
describe the idea that “markets are conversations”
Markets are increasingly conversational
environments where brands aim to build collaborative relationships with their (potential) consumers rather than treating them as “targets
why is dialogue better than one-way communication
When consumers observe dialogic communication, this increases perceptions of caring and expense, which in turn favourably affect brand attitudes and purchase intentions
• Dialogue caring / expense Brand Attitude / Purchase Intent
when/why can social media campaigns/presence go awry
- People want to talk to each other, not to brands
- Issues with long vs. short-term strategic outlook
- Faking engagement (“astroturfing”) to save face
- Tempting to control messages & perceptions
**authentic dialogic communication (i.e. two-way symmetrical model) hard to maintain in practice
marketing communication is less a matter of domination and control, and more a matter of ______________
fitting in
Dilemmas of participating in online conversations
▪ By having a presence in social media, brands can engage consumers, and as such, build, maintain,
and nurture relationships
▪ But “[s]imply being present is not, in itself, a recipe for success” (Colliander et al., 2015, p.11)
should you participate online?
• YES, always
Webcare results in …
•
…more positive brand evaluations (Van Noort & Willemsen, 2012)
•
…better evaluations of the company (more reputable) (Lee & Song, 2010)
• Perception of lower degree of responsibility for the service failure (Lee & Song, 2010)
webcare and positive eWOM
- Webcare used to stimulate positive engagement
- Increases customer Surprise on user-generated platforms
- Increases the perception that the brand has a conversational human voice (CHV)
- Both surprise and CHV increase consumer engagement
what is the second strategic choice to do with webcare? If the first is whether to say anything
what to say?
involves the content of the webcare response
what are the types of webcare responses?
- (No response)
- Refutation
- Apology
- Compensation
- Explanation
- Combination of strategies
rank the possible responses from most to least common
explanation - 66%
apology - 10%
refutation - 9.4%
compensation - 2.7%
when do you know what kind of response should you use? Ie what is the general rule
it depends on context how you should respond
the more negative the context, the more effort a company needs to put into recovery attempt
when the balance of conversation online is positive, what do you say
no differential effects between responses
when overall sentiment is neutral (webcare), what should you say?
explanation + apology
will have positive effects
when overall sentiment online is negative, what should you say?
explanation + apology + compensation
will have positive effects
what response is second best for only positive and neutral balances?
no response
when there is a single deviation problem (service failure), how should you respond?
apology or compensation suffices
what is a double deviation
messed up twice
service failure + botched recovery
what to say when there is a double deviation
more effort is required
- apology only leads to more desire for reconciliation
- compensation only leads to less desire for revenge
- *want to combine both**
if can’t do both apology and compensation for a double deviation, what else is somewhat effective?
explanation only
due to its ability to reduce negative inferred motives
how does response differ based on quality of relationship with customer?
- high-quality relationship
- -> apology + small compensation
- low-quality relationship
- -> apology + substantive compensation
how should you say your response online? (how to say it)
want conversational human voice (CHV)
-“an engaging and natural style of communication as perceived by an organization’s publics based on interactions between individuals in the organization and individuals in publics”
what does conversational human voice comprise of
- Being open to dialogue
- communicates in a human
voice - Treats consumers as human
beings - humanizing the brand/anthropomorphism can help
- ->(showing customers who employees are)
what brings about the impression of caring about customers?
• The mere use of social media (Kelleher, 2009):
open to dialogue and to listening to its consumers
(feels approachable)
• Conversational Human Voice
- -> Message personalization (sender (‘Hi Janelle’) and receiver (‘we’)
- -> Informal speech ( non verbal cues such as emoticons)
- -> invitational rhetoric (“let us know what you think”)
what are the effects of personal/human representative in online response?
- trust
- satisfaction
- control mutuality
- commitment
- WOM intention
what are the effects of human voice
- credibility
- attitude
- purchase intention
what is a conclusion about how to say/ speak to customers online?
▪A “human voice” positively affects relational outcomes (satisfaction, trust, commitment & control mutuality)
▪Talk to consumers “in an informal, personal voice, inviting
conversation from the readers” (Henderson & Bowley, 2010, p. 248)
▪CHV prerequisite for true dialogic (two-way) communication
describe the importance of being “human”
- Caring, financial expenses (Colliander et al.)
- Authentic, informal (Henderson & Bowley)
- Personal, conversational human voice (Schamari & Schaefers)
- Warmth (Bernritter et al.)
- All mediate (explain) effects on online engagement
how to address consumers - recent additional evidence?
- Informal address leads to more positive responses for warm brands
- Formal address leads to more
positive responses for competent brands
