Best Practices for Social CRM

Best Practices for Social CRM

Fabiana Lorenzi (Lutheran University of Brazil (ULBRA), Brazil) and Stanley Loh (Lutheran University of Brazil (ULBRA), Brazil)
DOI: 10.4018/978-1-4666-4026-9.ch014
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Abstract

This chapter presents a study of integration of traditional CRM systems with new social networking technologies available on the Web, such as Twitter, blogs, and communities, showing a set of the best practices on the use of these technologies to improve business relationships with customers. The authors present a set of best practices with guidance on how social networking technologies can help companies squeeze and improve the relationship with their customers.
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Background

Relationship marketing refers to the attraction, development and retention of customer relationships. Therefore, the main idea is to develop and manage unique relationships with individual customers. For authors like Payne and Holt (2001), Relationship Marketing represents a paradigm shift in terms of orientation and marketing approach.

Customer Relationship Management (CRM) is considered by Srivastava, Shervani, and Fahey (1999) as one of three business processes that create value for the customer. The other two are the management of product development and supply chain management. The CRM is responsible for the consumer identification process, creation of knowledge about the consumer, the construction of a relationship with him/her, and the adequacy of consumer perceptions about the company and its products. CRM is used to describe the process of deployment and management of relationship marketing.

Gummesson (1998) says that, despite that the relationship between a company and a consumer may be commercial, it requires a long-term vision, mutual respect, win-win strategy, and the adoption of the consumer as a partner and co-producer of value--not just a receiver of goods or services. In relationship marketing, the consumer is first recognized as an individual, then as a member of a community or a group of affinity, and finally as an anonymous member of a segment.

Peppers, Rogers, and Dorf (1999) presented four essential steps to implement a program of relationship marketing in the company: consumer identification, differentiation between them, interaction with them, and customization of products or services in such a way to meet individual needs of each consumer. These steps have a particular complexity, but also lead to an increasing level of benefits to the company. These steps are explained in detail:

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