Quite recently, the Journal of Interactive Marketing has published our special Issue on Social Media and Marketing. As a result of our thought leaders’ summit, leading researchers from all over the world present in seven articles the best of social media knowledge. In one of them, Malthouse et al. propose a framework, called “Social CRM House”, that is used to illustrate how the emergence of social media going along with highly empowered customers challenges the three core processes of traditional CRM – customer acquisition, retention, and termination. The article is addressed to all those who want to recognize pitfalls emerging at the intersection of CRM and social media early to be better able to address them. If you are currently thinking about restructuring your CRM strategy, this article is a must read. For years, Malthouse et al. are the leading researchers when it comes to CRM strategy.
The authors suggest to determine a company’s CRM strategy not just according to the aspired financial objectives but also to the degree of engagement (lower vs. higher) that customers will probably show. Customers who are highly engaged in company-related activities through social media channels are more likely to generate and disseminate brand-related content that might not be preferred by the company. Therefore, they require another social media strategy than customers who reveal lower levels of engagement. One of the key insights is that strategies related to acquisition and retention can no longer be separated. Furthermore, in such a highly interactive environment, the Customer Lifetime Value (CLV) as traditional performance measure of CRM is no longer sufficient enough to describe a customer’s value contribution to the company. What are other measures that have to be considered? How should the social media communication strategy look like? And even more important, how to deal with a company’s employees being at the core of success to reap off the full potential of CRM in social media?
If you want to find answers to all those questions, here are the details:
- Malthouse, Edward C., Michael Haenlein, Bernd Skiera, Egbert Wege, Michael Zhang (2013):
» “Managing Customer Relationships in the Social Media Era: Introducing the Social CRM House”,
Journal of Interactive Marketing – Special Issue Social Media, 27, 270-280.