Using Social Media to Enhance Customer Loyalty

Social media is certainly the hot topic in marketing today.  Given the unique nature of social media – it’s viral, scalable, two-way, inexpensive communication – it deserves a lot of hype.  Currently, though, many organizations are using social media as another “push” channel.  In other words, they use social media as a means for one-way dialogue to broadcast the company’s message rather than engage the consumer.  Additionally, many are using social as simply another vehicle to provide discounts and offers.  Nothing wrong with that per se, but it sub-optimizes the potential of the channel.

My perspective is that social media can be a great channel to develop customer loyalty.  Done well, social media can increase consumer engagement, add value beyond a traditional transaction and deepen the brand/customer relationships.  The core of building loyalty through social media is in content, which can be company-generated and user-generated.  In general, the communication goal of content falls into one of two categories: to educate and inform or to entertain.

The most prevalent content is used to educate and inform.  Examples abound across industries, but in general, the goal is to provide relevant information that consumers will seek out and, ideally, forward to others.  For example, home improvement chains can post a number of DIY videos to educate consumers on home projects.  Likewise, sporting goods retails can post how-to videos to help golfers improve their game or provide online yoga classes.  Airlines can provide information on travel delays and other travel information.   Auto manufacturers can post online owners manuals and maintenance tips.  Apparel and fashion retailers can preview new fashions, provide tips on accessorizing outfits, or highlight new designers.  The list goes on and on, but virtually any industry can take content that most likely already exists and repurpose it for social media.  Examples of user-generated content are things like product reviews, travel tips, and user forums (like the Apple users forum which has saved my bacon a few times).

The next form of content is entertaining content.  Entertainment doesn’t preclude other messaging, but the primary function of this content is to amuse.  Entertaining content can take the form of videos, contests and games, photos, polls, et al.  Examples include Budweiser which has a “paint-your-face” feature on Facebook linked to World Cup soccer, as well as information on their music and NASCAR sponsorships.  The Sports Authority posted previews of humorous videos featuring Michael Strahan on YouTube with links on both Twitter and Facebook.  In addition to posting pictures of ships and destinations (company-generated content), Carnival Cruise Lines allows guests to post their own vacation photos (user-generated content).

Using social media to build loyalty is not without its risks as well.  Companies lose a degree of control over messaging.  User-generated content is outside the control of the company.  And the viral nature of social media works both ways – negative comments can be circulated among the masses just as quickly as positive comments.  Therefore, companies that engage consumers via social media need to have personnel and processes set up to quickly respond to any negative feedback.  Social media marketing also requires an investment of resources to create and post content and manage the subsequent dialogue via social channels.  The investment is further confounded by the limitations on measuring ROI (see my 5/25/10 post for more on this topic).  That being said, the upside to social media outweighs the risks.  I am convinced that, when done well, social media holds great promise as an avenue to build customer loyalty.

The missing ingredient to loyalty marketing

It’s been 29 years since American Airlines launched the modern era of loyalty marketing with introduction of the AAdvantage frequent flyer program.  With so much experience in loyalty marketing across industries, you would think that practitioners would have it down pat.  Unfortunately, that’s not the case.  In many loyalty programs, there is one key ingredient that is missing…….emotion.

What I mean by that is loyalty marketers, more often than not, focus on the transactional element to a loyalty program.  In other words, they focus squarely on the exchange of loyalty currency (points, miles, etc.) for customer sales.  Similarly, communications and promotions center around incentives like bonus point offers in order to drive transactions.  In this manner, loyalty programs are merely sophisticated – and expensive – forms of discounting.

The real value of a loyalty program lies in the ability to gain customer data and build a relationship based on customer intimacy.  That is, to know each customer so well that you can anticipate his or her needs and offer the right solution to at the right time.  A solution may be a product or service for which they pay, but it can also be new financing options, new payment terms, expedited shipping, informational content or any number of non-product solutions that meet a need.

Where does emotion come into the equation?  Companies that truly understand their customers know how to build an emotional connection through targeted communications.  For example, a newsletter from a theme park to a retired couple can highlight the wonderful family memories that can be created at the park when family comes to visit.  It can also take the form of a congratulations letter from a mortgage lender that compliments a first-time homebuyer on achieving the American Dream.  Even cross-sell contacts can leverage the power of emotion to create loyalty.  A bank may send an e-mail to young parents reminding them to protect their child’s future by starting a 529 college savings plan.  Done well, the creative will have the customer think “they’re looking out for me and my family” rather than thinking “they’re trying to sell me something”.  The key, though, it to have customer data on their needs, lifestage, and attitudes in order to hit the right emotional triggers for each consumer.

Loyalty currency is not unimportant.  It plays a central role in encouraging program enrollment and ongoing engagement.  And using loyalty currency for promotions to drive short-term behavior is warranted in many cases.  However, customer rewards should not be the only aspect of a loyalty program.  Recognition and relevancy are more important in build sustainable loyalty.  In other words, win – don’t buy – your customers loyalty.

The take-away:  analyze your existing loyalty efforts to determine if  a) you have enough customer data to identify emotional triggers for each segment or individual and b) you are incorporating compelling, relevant, emotional messages into your loyalty communications.

Segmentation in 3D

While there are many different attributes on which to base customer segmentation, I like to think of segmentation based on 3 major dimensions:

   1. transactional data:  indicates category purchases,  frequency and basket size of purchase, seasonal patterns and most importantly, overall customer value

   2. demographic data:  lifestage characteristics like age, marital status, age of children (if any), income, and education

   3. attitudinal data:  activities and interests, technological bias, political leanings, et al.

All three of these dimensions can be useful in defining customer segments and the corresponding marketing programs that will be effective.  Transactional data will help determine when to contact customers and what product category to promote.  Demographic data can give insight into likely consumer needs and possible cross-selling activities.  Attitudinal data will help define the creative style and tone to employ and possibly which media channel is optimal (e.g. direct mail, email, SMS, social media).  Additionally, customer value (a subset of transactional data) can also help determine resource allocation decisions.  In general, you want to allocate more resources towards your highest value customers.

A simple example can illustrate how all three dimensions can affect marketing plans.

Suppose a wireless company looks at their customer base and defines three distinct segments: Road Warriors, Safe & Sounds, and Social Techies. 

Road Warriors tend to be middle-aged . They are highly educated and earn high salaries.  Because they use their handheld device to maximize work productivity, data services and internet access are imperative.  Also, calling plans with high minutes during business hours is important.  Lastly, they tend to be comfortable with technology but use it as a productivity tool and have no emotional connection to their phone.

Marketing application:  Since these are high value customers who focus on productivity, ensure that customer service calls are routed to the best CSRs and issues are resolved within the first call.  Communications should stress efficiency and speed of the carrier’s network.  Communications should also promote data services and other high margin features and should focus emotional appeals on how productivity frees up time to be spent with friends and family.

Safe & Sounds tend to be older customers with lower incomes and very little comfort with technology.  Their mobile phone is a safety blanket of sorts, so they only need basic services.  Correspondingly, their value tends to be low.  Essentially, this group has a low level of engagement with the product.

Marketing application:  Do not overinvest in this group; marketing communications, rewards and service levels should be minimized.  The focus of communications should be on the core features of mobile service and the security it provides.  Likewise, creative should skew towards an older audience in terms of media placement, imagery and tone.

Social Techies are young consumers who view their phone as a lifeline to friends and an active social life.  Text, photo and video sharing, games and other applications are important to this group.  Their value tends to be mid-tier but they are open to incremental upsells like ring tones wireless plans, and unlimited text plans.  Attitudinally, they are extremely comfortable with technology and are looking for ways in which to use their handheld to connect with others.  For them, it’s not a cell phone – it’s their connection to the world at large.

Marketing application:  Creative for this group should correspond to their lifestage and lifestyle.  It should be edgy and delivered through new media (SMS, social).  Product offers can highlight incremental upsell opportunities.  As this segment ages and moves into marriage and family lifestages, the marketing approach should adapt as well.

This example is a simplified version of using 3D segmentation in one industry.  The principles, however, hold across many industries and can useful in defining product offers, creative approach, media placement, and budgets for each of your company’s customer groups.

The New Media Channel Measurement Dilemma

According to the 2010 Omniture Online Analytics Benchmark Survey about marketers’ use of emerging channels, 55% of respondents cannot effectively measure marketing ROI in these channels. When looking at individual channel differences, the numbers can be even more dramatic.  The table below shows the percentage of marketers using three emerging media channels and the proportion of those unable to measure conversion rates.

Medium	% using	% unable to measure conversion
Social media	69%	41%
Mobile	23%	70%
Video	43%	70%

Coming from a direct marketing background, this lack of accountability is troublesome.  Is the answer to simply ignore marketing through social media, et al.?  No.  These emerging channels offer a wealth of opportunities for companies to engage consumers and build loyalty.  The answer lies in devising better metrics and measurement tools in order to quantify the impact of new channels.  But ignoring entire media channels due to limited measurement may sacrifice a long-term, strategic opportunity in order to justify a short-term, tactical approach. 

Until new measurement methodologies are widespread, companies should continue to invest some level of resources into new media.  The resource allocation can be made based on marketplace benchmarking, anecdotal results, or good old gut feel.  While I strongly believe in data-driven decision-making, sometimes one must take a leap of faith – particularly with emerging technologies.  Ideally, though, the leap of faith coincides with a safety net of proven marketing efforts with quantifiable return on investment.  In this manner, one can invest in the future while still delivering cash flow today.

Customer Segmentation for Small Business

Recently, I have had the opportunity to talk to a number of small business customers about how to drive retail traffic and sales.  One suggestion I invariably give to them is to segment their customer base in order to be more relevant with communications.  The typical response is that segmentation is just for big companies with big budgets.  But it doesn’t have to be.  Small companies can and should use segmentation strategies as well.  They don’t need to be complicated or expensive.  But how to get started?

It all starts with customer data.  Many small business have little or no customer data.  My recommendation is to start small and grow the database over time.  Basic information like name, address, email address and purchase history is the bare minimum to capture.  The transaction information you collect should be as detailed as possible.  Drill deeper than simply product category to also include manufacturer, style and other data. For example, would you rather know that Jill Smith bought a $150 handbag or that Jill Smith bought a $150 Kate Spade Gramercy Park Collection handbag.  With the detailed knowledge, it will be easier to provide Jill Smith with relevant information and sales promotions in the future.

Small business should also capture additional data points on demographics, lifestage and attitudes.  If 3rd-party data appends are too expensive, try to get self-reported data from your customers.  For example, a birthday program (e.g. 10% off, free dessert, etc.) allows you to capture age data.   Simple surveys can also be a good source of customer data.  You might ask customers about their preferences.  For example, a sporting goods store might ask customers to rank their top three interests from a list of sporting activities.  This information will allow them to provide runners with relevant information about shoes, races, injury prevention while providing golfers with relevant information on tips and techniques, course info, events, and equipment. Please note, however, that you need to give customers a reason to voluntarily divulge personal information.  So completion of a survey may need to be rewarded with a discount, entry into a contest, or some other promotion.

Once a small business has customer data, they can then begin to segment their customer base.  Segmentation doesn’t need to be based on multivariate regression models or other complex statistical techniques. It can be as simple as business customer vs. individual consumer.  Or high-end customer vs. low-end customer.  A simple approach that makes sense for your business and is manageable is a great starting point.  For example, a restaurant might segment its customers based on lifestage.   Subsequent, products, promotions, and communications can be tailored accordingly.  A mid-week family meal deal from 6:00-8:00 might be targeted to the busy working moms highlighting value and convenience.  The same restaurant might promote live music happy hours to its young clientele and a Thursday night upscale, candlelight dinner and wine package to its empty-nest customers. 

The last piece of the puzzle is executing campaigns and tracking results.  As the earlier restaurant example shows, campaigns (direct mail, e-mail, other promotions) should be tailored to each segment based on their needs and attitudes.  These campaigns can be measured against pre-determined metrics to gauge success.  If the segmentation and creative execution is sound, the result will be increased sales and ROI.

Does customer segmentation require time and effort?  Yes.  Does it also require some degree of financial commitment?  Yes.  But as many businesses, both large and small, have discovered, the investment can pay dividends many times over.

A Tale of Two Dealers

We’re a two-car family. And unfortunately, both cars received recall notices within the last two months.  One car is a Toyalta Camry, the other a Jeep Liberty.  This tale is a lesson in how to (and how not to) build loyalty in a service recovery situation.

A safety recall is not welcome news under any circumstances.  No other way to put it, it is a service recovery situation.  Upon receiving both notices in the mail, the initial step of the customer experience was making an appointment.  I emailed the Toyota dealership with a requested day and time range.  They promptly emailed back with a time that accomodated my request.  My Jeep exerience was different.  I sent an email (via online Contact Us form) with a requested day and time for an appointment.  An auto-response email was sent to me assuring me that I would hear back from the service department soon.  Two days later and still no reponse.  So I sent another email to the person listed in the auto-response email.  Again, no response.  Finally, I get the hint and pick up the phone to call…on a Monday at 8:00 am.  No answer and no voicemail.  I call again at 10:00 and finally get a response.  Drop the car off Thursday “in the morning”. 

The next step in the process was checking in the car.  The Toyota people get my information and promptly set expectations on the length of the repair.  Three hours isn’t what I wanted to hear, but I was glad to calibrate my expectations.  At Jeep, my check-in was interrupted by a call from a co-worker.  Apparently, none of the other two guys sitting around could take my information; I was beholden to the one guy who had to take an internal call before completing my check-in.  When asked about the timeframe for the repair, I was told it would be done “as soon as possible”.  A little vague for my tastes.

Lastly, the waiting room experience could not have been more different.  Toyota had an immaculately clean, comfortable waiting area, complete with in-home style theater system, oversized chairs and a popcorn machine.  There was a separate, quiter area with a coffee bar and bottled water.  At the Jeep dealership, I was pointed to a customer “lounge” that can be described as spartan and cramped.  Trying to get work done on my laptop, I was interrupted almost immediately with news of the six other maintenence and repair items the service staff recommended that my car needed.  Apparantly, they had time to identify upsell opportunities right away but couldn’t get to the actual repair for which I came for another hour or so.

The two experiences couldn’t have been more different.  Toyota acted as if they really wanted to earn back my trust and loyalty; Jeep acted as if I were a nuisance.  A few disclaimers:  I realize that there is a distinction between the auto manufacturers and their dealers.  But the dealers to a great extent are the brand.  They certainly have a big influence on the brand and subsequent loyalty.  Secondly, I realize that I am generalizing my observations based on one visit to one service department of each brand.  Not exactly a sample size that sticks up to statistical scrutiny.  So the focus should not be on whether Jeep or Toyota do a good job at building loyalty.  The real lesson here is in customer service:

•   set expectations
•  analyze the customer experience and try to enhance each touchpoint
•  make communication quick and painless
•  service recovery is not an appropriate time to cross-sell a customer
•  express genuine appreciation to customers – not disdain

Service recovery can be an opportunity to build loyalty.  Or at least, try to regain some trust that was lost.  But if mishandled, it can make a bad situation worse.

The Dos and Don’ts of Relationship-building

Within marketing circles, there is a lot of talk about CRM – customer relationship management.  Much of it focuses on the “management” side of things and less on the “relationship” aspect of CRM.  This article seeks to explore the parallels between business and personal relationships, highlighting what to do and what not to do at various stages of the customer life cycle.

The analogy between personal relationships and a business/customer relationship is apt.  There are many similarities and the concepts that help build strong personal relationships apply to a business setting as well.  Both types of relationships (personal and business) are built on trust.  Both need to be mutually beneficial.  Both occur over time.  And both typically follow a similar life cycle.

For example, most marriages start with an initial spark of interest and maybe some flirting.  The relationship then progresses to from casual dating to frequent time together to commitment.  The committed stage of a personal relationship, with its ups and downs, can last a lifetime or can end in divorce. Customer relationships follow a similar life cycle:

    Acquisition:  in which a company attracts and acquires a new customer

   Assimilation:  the company reinforces the initial purchase decision and lays a foundation for the future

   Cultivation:  the company learns more about the customer’s needs and builds trust and loyalty

    Reacquisition: if needed, the company wins back a customer who leaves

Here are some “dos” and “don’ts” at each stage of the customer lifecycle.

Acquisition: like initial flirting, it’s OK to put your best foot forward but misleading the prospective customer now will bite you in the behind later.

Don’t….

• mislead the prospect about your capabilities
• overstate the benefits of your product or service
• act condescending or be overly boastful

 Do….

• Put your best foot forward
• Truthfully state the full range of your capabilities and benefits
• Probe for an understanding of the customer and their needs

Assimilation:  Like initial dating, you and the customer are still getting to know each other.  You want to advance the relationship without overstepping your bounds.

Don’t….

• come on too strong, e.g. do not send e-mails every other day
• be overly familiar and act like you know everything about the customer
• push the new customer to buy more from you immediately

Do….

• Thank them for the initial purchase and reinforce
• Set expectations
• Probe for an understanding of the customer and their needs
• Build trust and lay a foundation for a future, long-term relationship

Cultivation:  This stage is where you (hopefully) develop deep, sustainable bonds.  The goal is to foster customer loyalty and create a sustainable relationship.

Don’t….

• Take the customer for granted
• Chase after every new customer and ignore the existing ones
• Assume customer needs will stay the same throughout the relationship

Do….

• Show appreciation and say ‘thank you’
• Tailor your products and communications to the customer’s preferences
• Continue to assess wants and needs and any changes in the relationship
• Ask what you can do better and act accordingly

Reacquisition:  Hopefully, it won’t come to this, but you may have a trial separation.  In this case, you want to repair the relationship before a permanent divorce takes place.

Don’t….

• Be vindictive or petty
• Make it hard or awkward to rejoin the relationship

Do….

• Remind the customer why they liked you in the first place
• Welcome them back with open arms
• If warranted, say ‘I’m sorry’

Companies, like couples, often need to be reminded of simple tips to build stronger customer relationships.  Often, they are inexpensive, quick, and easy to implement.  The upside – in terms of revenue and loyalty – can be tremendous.

Loyalty Leaders

There are a number of companies – big and small – that do a good job of building customer loyalty.  I would like to highlight five of them that are top-of-mind loyalty leaders based on my experience as a consumer and student of loyalty marketing.  There is nothing scientific about this list….it’s simply one person’s perspective.

Without further ado, here are the five loyalty leaders:

Apple: Apple has created an intensely loyal consumer base through its branding, product innovation, and design aesthetic.  Brand messaging has consistently portrayed an edgy, hip brand that resonates with its target customer.  Likewise, Apple stores are the retail embodiment of the brand persona.  Second, product innovation has been a hallmark of Apple. The Mac platform, iPhone, iTunes & iPod, and iPad are examples of strong innovation.  Their first-to-market position, coupled with a hip brand, incites loyalty among early adopters.  Product innovation is reinforced by Apple’s unyielding commitment to design, which in turn, reinforces the brand identity.  Apple’s loyal following is demonstrated by the large, active online communities devoted to Apple.

REI: REI is not just a retailer or brand; REI is a lifestyle.  If you’re not familiar, REI is a retailer of outdoor sporting equipment such as hiking, biking, skiing, and mountain climbing gear. The brand stands for an active, outdoor lifestyle.  Rather than a traditional loyalty program, REI has a member co-op program.  A lifetime membership costs $20, which entitles someone to a 10% annual dividend (cash back or applied to purchases), member-only sales, and other benefits.  Another way in which REI cements customer loyalty is through superior service.  Sales associates are not just knowledgeable but are true enthusiasts in outdoor activities.  Store associates bring an expertise and enthusiasm to their jobs that is rare in retail.  Lastly, REI provides information, tools, events, and other content which allow customers to maximize enjoyment of their activities.  Examples include in-store demos (such as a climbing wall), seminars (e.g. snowshoeing 101), tools (e.g. hiking trail maps) which are supplemented by online content.  REI creates strong loyalty through brand affinity, service, and value-added information.

Starbucks: Despite their recent travails, Starbucks still has a large group of loyal followers. Starbucks is a model of product quality and consistency, as well as innovation. In addition to its core product – coffee, Starbucks offers espresso, Frappucinos, smoothies, and teas which have expanded the breadth of their appeal.  Starbucks also engenders loyalty through the store atmosphere.  The furniture, music, and Wi-Fi have created a bohemian coffeehouse feel.  Lastly, the Baristas are well-trained, generally affable and efficient.  Starbucks has created a blend of business tactics to create on-going loyalty.

Enterprise: To many people, the rental car industry is a commodity business. But Enterprise has differentiated themselves through exceptional service and convenience.  Enterprise puts heavy emphasis on employee selection and then promotes from within based to a great degree on customer survey scores.  This formula has created a staff of dedicated front-line employees who provide consistently outstanding service.  They are fast, friendly, and efficient.  Additionally, at non-airport locations, Enterprise lives up to their “we’ll pick you up” tag line, adding ease and convenience to the car rental experience.  The Enterprise approach has garnered praise in The Loyalty Effect (Reichheld) and earned a cadre of loyal customers.

Google:  Through sheer ubiquity, Google has created loyalty.  Beyond their leadership as a search engine, Google has created online functionality that is valuable and easy-to-use for techies and novices alike.  For consumers, Gmail, Google maps, news, books, and calendar features are great, free resources.  For businesses (large and small), Google AdWords provides a highly targeted, cost-efficient method to reach consumers.  Additionally, Google Analytics provides a valuable tool for measuring on-line behavior allowing businesses to track site traffic, improve conversion rates and increase sales.

These five companies provide lessons in how to earn customer loyalty.  A few of the common elements among the five are product innovation, consistency of customer experience, superior service, and the ease and convenience of doing business.  And perhaps most important, there is a commitment from the top to support loyalty-building efforts.  Other companies should apply the lessons from these leaders to their own business in order to create customer loyalty and enhance business results.

Loyalty in a Recession

The current economic climate has made value more imperative in a brand/consumer relationship.  Attitudinally, price has become is more important – or at least more greatly scrutinized – factor in the value equation.  Some marketers, though, have used the recession to treat price and value as the same concept.  They have slipped back into simply marketing tactics like discounts, rebates and other incentives…..at the expense of trying to add non-monetary value to the customer relationship.

My perspective is that consumers are still looking for holistic value.  Price is a factor, but there are other equally important factors in the value equation.  Product quality and performance, variety and selection, brand trust, customer service, ease of interaction are all still critical to value – and customer loyalty.  So while marketers should take a close look at their pricing strategy, and consider incentives to drive short-term behavior, they must not lose site of the need to continue to nurture their customer relationships and seek ways to provide value to customers through service, information, and recognition.

Sustainable loyalty cannot be bought be discounts and incentives.  Gaining a deep understanding of customer needs and then delivering against those needs is the path to true loyalty, in this and any economy.

CRM Myths: Why CRM Initiatives Fail to Live up to Expectations

Customer Relationship Management (CRM) has been in the marketer’s lexicon for over a decade.  Yet, there are still many misconceptions about CRM.  Initially, many people touted CRM as the silver bullet for improving profitability.  Over time, however, CRM initiatives failed to meet their lofty expectations and began to take on negative connotations.  Both points-of-view are erroneous.  Most CRM initiatives are sub-optimal because many organizations misunderstand CRM.

Misconception: CRM is a solution to reduce operating costs and increased cross-selling. 

 While worthy goals, reducing costs and increasing cross-selling are short-term, tactical objectives.  The true goal of CRM should be strategic — building the customer relationship.  In-depth analysis of customer data allows the organization to gain an understanding of each customer.  And the understanding should increase over time as the company gathers more information.  This customer insight allows marketers to tailor products, services, and communications to meet the unique needs of the individual, leading to a strong relationship between customer and brand.  The strong customer relationship leads to long-term loyalty and retention, while also allowing for increased cross-selling, lower operating costs and elimination of unnecessary marketing expenses.  Cross-selling and lower costs are important goals, but customer insight and loyalty are even more critical to organizational success.

Misconception:  CRM is a product.

 CRM software is a product — and a critical component of a CRM strategy.  But CRM is much broader that just the software.  Many initiatives are deemed failures because organizations expect that they can simply install CRM software and the results will come.  CRM has to start with a well-defined strategy: 

• What is the desired customer experience?
• What internal processes need to change to deliver on the customer experience?
• Does the structure and performance management system support the customer strategy?

These questions need to be answered to guide systems requirements as well as internal process changes.  Too often, companies simply automate bad processes rather than eliminating or changing processes to improve the customer experience.  At its best, CRM blends technology with strategy, analytics, creative, and service to develop truly compelling customer experiences.

Misconception:  Technology is the answer.

 Technology is an enabler to improved customer relationships.  It is part of the answer, but not the answer in its entirety.  CRM technology allows an organization to get a singular view of the customer.  However, data is just data.  It is necessary but not sufficient for increasing effectiveness.  Companies need to turn data into understanding through data analysis and supplemental research, and turn understanding into marketing efforts that will change behavior.  Understanding needs to guide not only what to say to customers but also how to say it. 

In general, technology is not lacking in CRM initiatives.  What is lacking is the people side of the equation.  Customers want a positive experience and a genuine connection with the brands they purchase.  By solely focusing on technology, organizations lose the real power of CRM — improving the customer relationship.

CONCLUSION

To conclude, CRM can be an effective business approach when implemented correctly.  It starts with a well-defined strategy and focuses on relationship-building with the customer. It moves beyond technology to incorporate learning and the ability to connect emotionally with the customer.  A successful initiative will require the combination of technology, change management, and a customer-centric philospohy.  Following this roadmap, companies can build long-term loyalty and reap the financial rewards of a CRM initiative.