THE PHILIPPINES, AUGUST 23, 2012: The rise of social media and the constant change of the digital landscape have also changed how customer relationship management is being done.
These days, consumers are getting their information from the Internet and social media. Online recommendations drive up purchase of a product and consequently increase their market share. “Brands and agencies have to adapt and work on building relationships with their customers,” Lucy McCabe, vice president of consulting services in the Asia Pacific OgilvyOne Worldwide, said.
The 2000s definition of social CRM goes beyond the one-on-one approach of the 1990s. With Facebook, Twitter, Pinterest, and other social networking sites available, CRM is now a “one to many to many relationship”.
With over 12,000 brands in Facebook, a social bond with consumers needs to be established. According to data from IBM, only 50% of Facebook users have liked a brand but 80% of those who like a brand’s page only do so when they expect a discount. A vast majority of people who have liked a brand’s Facebook page would only engage for a while and then either unlike the page or stop visiting it because “there’s nothing engaging going on in that page,” McCabe said.
According to McCabe, less than 1% engage with a brand’s page once a month compared with a 5% rate which is already considered very good. McCabe, quoting David Ogilvy, said, “You can’t bore someone into buying your product.”
An example of this is the campaign Ogilvy has done for KFC, positioning KFC as a snack time option with KFC Crushers. The idea was expressed as “Sip into the Chill Zone” .The idea, when applied to the online world had two strong opportunities. First, was the opportunity to create the stage where teens could document their ability to transform places into their own chill zone, launching a photo promotion.
The second opportunity was gaining their permission to bring Krushers into their digital escapes. Teens’ primary hang out online was Facebook. So Ogilvy used a Facebook fanpage to promote the contest as well as start dialogue with consumers about Krushers. The result was Krusher sales were up 154% compared with the pre-campaign period.
“Social bond creates a value exchange between brand and consumer that wouldn’t exist without involving the social network,” McCabe said.
