internet strategy

Presented by David Placier, VP of Marketing, Disney.com

Definition of CRM – Customer Relationship Marketing

Differentiating marketing treatment and/or service level for an individual or group
Differentiating in order to optimize customer value to company
ROI based
Targeted effort, not mass

Customer value = income you receive from an individual – expenses acquiring, servicing and marketing to individual

When CRM started isn’t clear – Local shops use CRM by giving you different suggestions and service depending on what they know about you from past purchases and visits.

Direct mail credit card acquisitions change their offer based on your credit score, your assets, your zip code, public data about you. They change their investment and marketing treatments based on this information.

Airline customer loyalty programs give premium seats and have separate lines for their best customers.

Online

Advertising – display location – where you surf may define which treatment group you get, but site experience is not differentiated by customer value or characteristics.

Search advertising is differentiated by treatment group – what you are saying, where you are landing, what you are searching for.

Product recommendations are characterized by previous choices, but maybe not by value and this experience is available to anyone.

With social media, find opinion leaders to treat differently and they will buy more, say more and influence more.

Future of CRM

Personalization
Optimization
Addressability
Commonly available data
Cross device/platform continuity

Technorati Tags: social media, crm, customer relationship marketing, internet strategy summit forum

Presented by Charlene Li, VP & Principal Analyst, Forrester Research

The ease of posting anything on the Internet means that negative messages about your company may be higher in the search results than your own messages (ex. comcast technician sleeping on my couch – see YouTube). This gives individuals enormous power, but it also means individuals help each other.

What can companies do about this? Should this be something to fear? It’s important for companies to have clear objectives about what they’re trying to achieve by using social media. Think about relationships instead of technologies.

In the book, Groundswell, the following methodology is recommended:

P – People – Who is your audience? What are they doing online? How do they do it and when?
O – Objectives – What are you trying to accomplish for your business?
S – Strategy – Plan for how relationships with your customers will change.
T – Technology – Once all the other steps have been examined, take a look at what tools make sense to accomplish your goals.

People – Different types of people have different levels of online participation. You can profile your customers at groundswell.forrester.com to see where they are on the participation ladder: inactives, spectators, joiners, collectors, critics, creators. Age is a major driver of participation, but as more content becomes available online, there has been more participation.

Objectives – Different departments in your company will have different objectives for social media:

Market Research – Listening
Marketing – Talking (have open-ended conversations)
Sales – Energizing (activating your most passionate customers)
Support – Supporting (your customers can help support each other)
Development – Embracing (customer ideas and feedback can speed up and provide higher quality development which better meets the market needs)

Strategy – Start small because you will make lots of mistakes. Think big about how this can transform your organization. Control is an illusion – the conversations about your brand will happen whether or not you participate. Understand what motivates people to participate – very rarely is monetary – they want to help, make a difference, be heard, and be part of a community.

Technology – This will depend on where the people you want to reach are already. It may make more sense to participate in an existing community than to start your own.

Technorati Tags: social media, social network, social media strategy, internet strategy summit forum