Social media is maturing and becoming an important part of the supply chain for many businesses. In areas like the media it is clearly a strong communication channel between content creators and their customers, but in other industries there has been an even deeper use of the technologies.
Take retail as a good example. For decades retailers have combined loyalty cards with CRM technologies to try predicting customer behaviour and to drive loyalty to certain products. There are many examples of retailers knowing individual customers better than their own family because of the data collected during their shopping trips.
A famous example is the US retailer Target sending discount coupons for products a new mother might want to a teenage girl. Her father was outraged, but he apologised to the retailer when his daughter confessed that she was in fact pregnant. The CRM system knew it before the father.
But traditional CRM has always relied on actual purchases and visits to the store. There had to be an actual interaction with a retailer to generate data that could then be analysed. With social networks and social media uploads customers provide information on their likes, desires, and preferences without even visiting the store.
This is a fantastic opportunity for retailers who can integrate social channels into their existing CRM. In addition to actual purchases, discounts and offers can be tailored to include preferences and the general sentiment of an entire group of customers.
It does require a different approach. Some kind of community management is usually needed for the retailer areas – such as the corporate Facebook page – and new software capable of ‘buzz monitoring’ other areas of the Internet has to be applied. But the opportunity for retailers of knowing their customers even better through the use of better technology systems is clear.
The same opportunity exists across all sectors – try searching for online discussions about your company name or products today. I’m sure you will find people talking about them. Now the question is, are they saying good things and if not, what do you do next to engage those customers?