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Articles : Creating your own social media CRM system and loyalty programme ...by nick tadd ![]() If you think about it, customer loyalty schemes are very clever. I know that my wife Vanessa will search out a BP gas station just to collect a few extra Nectar points, ditto shopping in Sainsbury's. But in reality, it is the company that benefits far more than the customer. However, the loyalty scheme keeps the customer "locked into" that product or service very effectively! Social media engagement should be seen is a way for you to create your own on-line loyalty scheme for your customers. It is a way for you to stay connected with them, an easy interface to engage and let them know your latest news, products, services etc. A way to keep them coming back for more, to remain in the forefront of their mind, to be the first port of call when they need what you are offering. Think about it: * How would it be if your customers came to you of their own choice, without you going to them? * How would it be if your customers remained connected to you 24/7 and you can connect with them and therefore react to their needs in real time? * How would it be if your customers spoke about you and spread your messages in their own networks - in other words became your FREE brand ambassadors? * How would it be if your influence extended beyond your local area and onto a global platform? * How would it be if your marketing budget was zero? (Mine is and has been for the past three years!). * How would it be if your business had the same influence and reach as a global brand? * How would it be if your website was constantly up-dating with real-time feeds like Twitter, facebook, blogs - keeping it fresh and engaging? (Mine does ...). Social media engagement, whether that be a blog, Twitter, Facebook, YouTube etc, is a two-way channel of communication, meaning that you are accessible to your customers and can have direct conversations with them about what they need, how you can serve them. They in turn can amplify those conversations through their own networks, spreading your messages for you. It enables you to build a community around your business that will fuel your business for the future. The bigger the community, the more successful your business will appear, and the more people will want to know you and follow you. In a "networked" economy such as we are entering now, success breeds more success. That makes sense, doesn't it. To quote a fantastic blog "How to change the world using social media": Social media is all about users deciding what's worthwhile instead of relying on mass media or advertising to dictate to us. But the real issue is that users often decide to give a message a chance based on initial indicators that have nothing to do with the actual quality of the content. What we're talking about is called social proof. Here's how Wikipedia defines social proof, which is pretty spot on: Social proof, also known as informational social influence, is a psychological phenomenon that occurs in ambiguous social situations when people are unable to determine the appropriate mode of behavior. Making the assumption that surrounding people possess more knowledge about the situation, they will deem the behavior of others as appropriate or better informed. Social proof is also known as herd mentality or the bandwagon effect. People tend to follow the crowd without evaluating the true merits for themselves, especially when the merits are ambiguous. In a more positive sense, social proof can be the proverbial foot in the door. It can be the difference that leads to attention and acceptance, which turns a message into a movement. A recent survey found that word of mouth recommendations from on-line "friends" was more effective than advertising. In other words, building a strong community around your business enables you to build trust in your network. Where there is trust, business flourishes. Great examples of CRM through social media are Zappo's, Blendtech, and Ford to name but a few. Oh, and that chap named Barack Obama. So, in reality, if you get it right, socialised media can actually turn into a Customer Relationship Management system and loyalty programme all rolled into one! But be very clear - it is not anything to do with "selling" in the traditional sense. It is about giving value, sharing information, keeping your followers informed of things that might be of interest to them, giving extra value via special offers, being available, conversing with customers, letting them know you care. Humanise your business. All the tools are free to use. All you need to do is invest your time, personality, and share your knowledge in your area of expertise. I think you will find a return on that investment to be very profitable. At this Sunday's Guildford ecademy meeting, I will be speaking more about how to build a CRM system via socialised media. Book your place here. I am also offering a free ten minute social media consulting session to any ecadmists who attend on Sunday to help you understand how you can get the best out of social media engagement in your business. Remember that if you keep on doing what you have always done, you will keep on getting what you always got! There are MASSIVE changes taking place in the business world and you need to be aware of them, and take advantage of them. Ecademy is at the forefront of this new thinking and way of doing business, so make sure that you get going with this asap as you are definitely ahead of the curve if you do. If you would like to understand more about how to use Twitter in your business to help make the right connections, please join us on our Twitter Tactics training in the Surrey Hills on the 5th August. It's a half day of training followed by a netwalk in the inspiring Surrey Hills. We guarantee to show you how to build your following and connect with your customers. Full details can be found here. ![]() ![]() ![]() ![]() socialmediagraffiti - the club [ < Previous ] [ Next > ] [ nick tadd's blog ] [ 7 comments ] [ comment likes (2) ] [ More Like this ] [ # ] [ report spam ] or Login to submit your own content and comments.
Creating your own social media CRM system and loyalty programmeLikes (0)Then again maybe not, I'm sure more than one person will think of it as a way to add boundaries to a relationship. (Too deep, think how the Exchange Rate Mechanism works) Creating your own social media CRM system and loyalty programmeLikes (0)Rob. Strategic Sell; Interim Management and Consultancy - Strategic Selling, Marketing and General Management in the Technologies, Services and Software Sectors. Creating your own social media CRM system and loyalty programmeLikes (0)In the traditional sense of ROI, your return is infinite, because the tools are free and therefore it didn't cost you anything! What it will cost you is time to get your on-line visibiilty up and running, and to build a "long tail" of content that will attract in followers. I started my blog, for instance, 3 years ago. I now have 30,000 readers, but when I published my first ever blog, only one person read it. But I had to publish X amount of blogs over Y amount of time to build up my following. That is why every day that you are not doing this is a wasted opportunity to build up your web content. With regards to time, it is like launching a space shuttle. It takes a huge amount of time and energy at first, but once the space shuttle is in orbit, it just needs tweaking to keep it on track. It's the same for social media engagement. You need to build groundswell, and that takes time. But once you have built groundswell, then, in a linked economy like this, success breeds success, as mentioned in the original blog. People see that you have a lot of followers, so that suggests you are successful, so that is a signal to them that you are worth following ... so you get even more followers. We are living in an exponential world and social media allows your business to harness the power of that. With regards to "leveraging equity", I am not clear what you mean by that. However, in my opinion, data is currency. If your business is seen to have a huge following (which the transparency of the web shows), then that is extremely valuable to your business. ![]() ![]() ![]() socialmediagraffiti - the club Creating your own social media CRM system and loyalty programmeLikes (0)People hang out on-line in groups, different groups mean different things to different people, like styles, clothes or a language, do you speak twitter ? do you understand ecademy, how it works ? ![]() ![]() Get tweeterized! ![]() Creating your own social media CRM system and loyalty programmeLikes (0)Thanks for the response. If I could take some of your points in order? In the traditional sense of ROI, your return is infinite, because the tools are free and therefore it didn't cost you anything! Cute What it will cost you is time to get your on-line visibiilty up and running, and to build a "long tail" of content that will attract in followers Time has a value, to me anyway and as yet I see none in 'infinity' so if for example we evaluated time to equate to T and Cost we're already in a negative cash position. We then start building content. The relevance of 30,000 'readers' can only be measured in terms of financial return. It took some time for you to do this but I could have hit 30,000 on day one. That is why every day that you are not doing this is a wasted opportunity to build up your web content. Okay, but how has this leveraged revenue for you? People see that you have a lot of followers, so that suggests you are successful, so that is a signal to them that you are worth following ... so you get even more followers. We are living in an exponential world and social media allows your business to harness the power of that. I must be missing something here However, in my opinion, data is currency Data's only valuable when it converts to cash or assets Nick. Try borrowing $100,000 against your data mate. If your business is seen to have a huge following (which the transparency of the web shows), then that is extremely valuable to your business. How? Is it advertising potential? Knowledge? Know-how? By leverage of equity I mean one thing really - money. The net value of the business based on assets, revenues and profitability. If I arrnage to buy your business and it has a turnover of say £50,000 and 10% profit, my offer is 1 x t/o. If you have the same turnover and lose 10%, its customers and order book become the basis (assuming a raft of other favourable ratios) a going concern. How would the data in the business cause me to reverse my lack of interest in buying a potentially loss making business? Rob. Strategic Sell; Interim Management and Consultancy - Strategic Selling, Marketing and General Management in the Technologies, Services and Software Sectors. Creating your own social media CRM system and loyalty programmeLikes (2)Understanding that you need to give before you receive is the foundation of a Human Being. However, always trying to see whats in it for you before any effort is made is the under pinning of a dying dinosaur called corporate life. Clearly your questioning dictates that you are living in this world. This outdated behemoth is causing the damage to society and the world. To understand this you need to give credence to the word "social", and recognise that the world needs to work in this format: 1. Support 2. PR 3. Marketing. 4. Sales Note: Support comes first, hence social media. So if you carry on your current trend of thinking then there is no ROI for you using this method. Oh and by the way I don't need to borrow against my data - I get paid - mate. 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- Posted: 24-Jul-09
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