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The	  role	  of	  social	  media	  in	  customer	  rela2onship	  management	  Dr Ana Isabel CanhotoSenior Lecturer in Mark...
Who	  I	  am,	  What	  I	  do…	  Marke2ng	  Informa2on	  Systems	  Customer	  profiling	  Dark	  side	  Customer	  data	  C...
3©	  Ana	  Isabel	  Canhoto	  2013	  0267257x.2013.777355.fp.png_v03 525×889 pixels
The	  age	  of	  the	  social	  customer	  4©	  Ana	  Isabel	  Canhoto	  2013	  
5©	  Ana	  Isabel	  Canhoto	  2013	  The	  age	  of	  the	  social	  customer	  
6©	  Ana	  Isabel	  Canhoto	  2013	  The	  age	  of	  the	  social	  customer	  
7©	  Ana	  Isabel	  Canhoto	  2013	  The	  age	  of	  the	  social	  customer	  
8©	  Ana	  Isabel	  Canhoto	  2013	  Strategic	  use	  of	  SM	  plaGorms	  by	  customers	  to	  influence	  outcomes	  Us...
9©	  Ana	  Isabel	  Canhoto	  2013	  Social	  network	  Support	  Social	  Capital	  Theore2cal	  lens	  
10©	  Ana	  Isabel	  Canhoto	  2013	  Table 1 Forms of social networksCriterion Dimension Selected referencesHierarchy Hor...
11©	  Ana	  Isabel	  Canhoto	  2013	  •  Support	  Theore2cal	  lens	  
12©	  Ana	  Isabel	  Canhoto	  2013	  Theore2cal	  lens	  •  Lack	  of	  empirical	  research	  on:	  – The	  role	  of	  ...
13©	  Ana	  Isabel	  Canhoto	  2013	  	  Social	  Network	  	  Support	  Theore2cal	  lens	  
Research	  ques2ons	  •  What	  types	  of	  online	  rela2onships	  are	  most	  valued	  by	  social	  media	  users?	  ...
Research	  approach	  •  Social	  capital	  is	  a	  subjec2ve	  process	  (Ibarra,	  Kilduff	  et	  al.	  2005):	  focus	 ...
Data	  collec2on	  16©	  Ana	  Isabel	  Canhoto	  2013	  •  Source	  of	  valid	  responses:	  
Data	  collec2on	  17©	  Ana	  Isabel	  Canhoto	  2013	  Access	  to	  users	  in	  dispersed	  geographic	  loca2ons	  	 ...
18©	  Ana	  Isabel	  Canhoto	  2013	  0	   2	   4	   6	   8	   10	   12	  U2li2es	  Telecoms	  Sport	  equip	  &	  prod	  ...
19©	  Ana	  Isabel	  Canhoto	  2013	  Data	  collec2on	  
Data	  analysis	  •  Manual	  •  Deduc2ve	  categorisa2on	  •  Emerging	  dimensions	  •  Inves2gate	  frequency	  20©	  A...
21©	  Ana	  Isabel	  Canhoto	  2013	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
22©	  Ana	  Isabel	  Canhoto	  2013	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
23©	  Ana	  Isabel	  Canhoto	  2013	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
24©	  Ana	  Isabel	  Canhoto	  2013	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
25©	  Ana	  Isabel	  Canhoto	  2013	  Criteria	   Dimension	  -­‐	  Descrip0on	   %	  Membership	  Formal	   -­‐	   Firms	...
26©	  Ana	  Isabel	  Canhoto	  2013	  Tangible	   Informa2on	   Emo2onal	   Effec2ve	   Social	  •  Benefits	  focused	  on	...
27©	  Ana	  Isabel	  Canhoto	  2013	  Tangible	   Informa2on	   Emo2onal	   Effec2ve	   Social	  •  Role	  of	  emo2on	  on...
28©	  Ana	  Isabel	  Canhoto	  2013	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  ...
29©	  Ana	  Isabel	  Canhoto	  2013	  Tangible	   Informa2on	   Emo2onal	   Effec2ve	   Social	  Role	  of	  social	  bondi...
30©	  Ana	  Isabel	  Canhoto	  2013	  Criteria	   Dimension	  -­‐	  Descrip0on	   %	  Tangible	  High	   –	   Problems	   ...
Conclusions	  •  What	  types	  of	  online	  rela2onships	  are	  most	  valued	  by	  social	  media	  users?	  •  Custo...
Conclusions	  •  What	  support	  do	  social	  network	  users	  perceive	  they	  derive	  from	  interac2ng	  with	  or...
Conclusions	  •  Empirical	  inves2ga2on	  of	  the	  effect	  of	  the	  Internet	  on	  social	  capital,	  as	  per	  We...
Conclusions	  •  Empirical	  evidence	  for	  the	  type	  of	  social	  networks	  that	  emerge	  in	  the	  online	  en...
The	  role	  of	  social	  media	  in	  customer	  rela2onship	  management	  Dr Ana Isabel CanhotoSenior Lecturer in Mark...
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Canhoto 2013 Social Media and CRM

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Presentation to PhD students at the London School of Economics, on 30 April 2013. Part of the module "Information Systems PhD Seminar Series and Workshops".

Based on the paper: Customer Service 140 Characters at a time: http://www.tandfonline.com/doi/abs/10.1080/0267257X.2013.777355#.UX7n7aWLqgE

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Canhoto 2013 Social Media and CRM

  1. 1. The  role  of  social  media  in  customer  rela2onship  management  Dr Ana Isabel CanhotoSenior Lecturer in Marketing & Director MSc MarketingOxford Brookes Universitywww.anacanhoto.comTwitter: @canhoto  ©  Ana  Isabel  Canhoto  2013  
  2. 2. Who  I  am,  What  I  do…  Marke2ng  Informa2on  Systems  Customer  profiling  Dark  side  Customer  data  Customer  Management  2©  Ana  Isabel  Canhoto  2013  
  3. 3. 3©  Ana  Isabel  Canhoto  2013  0267257x.2013.777355.fp.png_v03 525×889 pixels
  4. 4. The  age  of  the  social  customer  4©  Ana  Isabel  Canhoto  2013  
  5. 5. 5©  Ana  Isabel  Canhoto  2013  The  age  of  the  social  customer  
  6. 6. 6©  Ana  Isabel  Canhoto  2013  The  age  of  the  social  customer  
  7. 7. 7©  Ana  Isabel  Canhoto  2013  The  age  of  the  social  customer  
  8. 8. 8©  Ana  Isabel  Canhoto  2013  Strategic  use  of  SM  plaGorms  by  customers  to  influence  outcomes  Users  view  SM  plaGorms  as  private  areas  where  they  can  interact  with  friends  Firms  should  enter  online  dialogues  with  customers  New  set  of  expecta2ons  require  new  mind  sets  and  approaches  to  customer  management  The  age  of  the  social  customer  
  9. 9. 9©  Ana  Isabel  Canhoto  2013  Social  network  Support  Social  Capital  Theore2cal  lens  
  10. 10. 10©  Ana  Isabel  Canhoto  2013  Table 1 Forms of social networksCriterion Dimension Selected referencesHierarchy Horizontal vs. Vertical (Putnam 2000, Adler and Kwon 2002)Membership Informal vs. Formal (Wellman, Carrington et al. 1988,Fukuyama 1999)Ties Strong vs. Weak (Granovetter 1973, Wellman, Carringtonet al. 1988)Similarity Bonding vs. Bridging (Putnam 2000, McPherson, Smith-Lovinet al. 2001)•  Social  network  Theore2cal  lens  
  11. 11. 11©  Ana  Isabel  Canhoto  2013  •  Support  Theore2cal  lens  
  12. 12. 12©  Ana  Isabel  Canhoto  2013  Theore2cal  lens  •  Lack  of  empirical  research  on:  – The  role  of  online  technology  in  crea2ng  social  capital  – How  Internet  interacts  with  other  forms  of    communica2on  – The  type  of  SNs  that  emerge  in  online  environments  – What  support  SN  users  obtain  from  interac2ng  online    
  13. 13. 13©  Ana  Isabel  Canhoto  2013    Social  Network    Support  Theore2cal  lens  
  14. 14. Research  ques2ons  •  What  types  of  online  rela2onships  are  most  valued  by  social  media  users?  •  What  support  do  social  network  users  perceive  they  derive  from  interac2ng  with  organisa2ons  online?  14©  Ana  Isabel  Canhoto  2013  
  15. 15. Research  approach  •  Social  capital  is  a  subjec2ve  process  (Ibarra,  Kilduff  et  al.  2005):  focus  on  the  (posi2ve)  experiences  of  individuals  •  Focus  on  specific  ac2vity  to  deepen  the  understanding  of  the  social  2es  (Williams  and  Durrance  2008):  customer  feedback  •  Data  collected  via  SM  plaGorms  •  Snowball  sampling  15©  Ana  Isabel  Canhoto  2013  
  16. 16. Data  collec2on  16©  Ana  Isabel  Canhoto  2013  •  Source  of  valid  responses:  
  17. 17. Data  collec2on  17©  Ana  Isabel  Canhoto  2013  Access  to  users  in  dispersed  geographic  loca2ons          Wri]en  responses  –  no  need  for  recording  and  transcrip2on  Can  offer  neither  confiden2ality  nor  anonymity          Limited  levels  of  interac2vity      Answers:  short  and  using    abbrevia2ons  and  emo2cons  
  18. 18. 18©  Ana  Isabel  Canhoto  2013  0   2   4   6   8   10   12  U2li2es  Telecoms  Sport  equip  &  prod  Retail  Restaurant  Media  IT-­‐serv  IT-­‐hard  Insurance  Hotel  Food  &  drink  Automo2ve  Airline  Men2ons  per  industry  sector:  Data  collec2on  
  19. 19. 19©  Ana  Isabel  Canhoto  2013  Data  collec2on  
  20. 20. Data  analysis  •  Manual  •  Deduc2ve  categorisa2on  •  Emerging  dimensions  •  Inves2gate  frequency  20©  Ana  Isabel  Canhoto  2013  Dimensions  Structural  Elements  Social CapitalOnline socialnetworkrelationshipsHierarchyMembershipTiesSimilaritySupportavailable to socialmedia users frominteracting withorganisationsonlineInformationalEmotionalTangibleSocial
  21. 21. 21©  Ana  Isabel  Canhoto  2013                                                            www.anacanhoto.com  Membership  Formal  Informal  •  Mirrors  findings  from  the  literature  regarding  offline  interac2ons  with  firms  (e.g.,  Kumar  and  Worm  2003).  •  The  characteris2cs  of  the  nodes  (and  associated  behavioural  expecta2ons)  determine  the  pa]ern  of  interac2ons,  not  the  technology.  Findings:  type  of  interac2on  
  22. 22. 22©  Ana  Isabel  Canhoto  2013                                                            www.anacanhoto.com  Membership   Characteris2cs  Formal  Informal  Reliability  •  Not  men2oned  in  the  SC  literature  •  Related  to  concept  of  ‘expecta2ons’  (e.g.,  Batjargal  2003).  •  Determines  percep2ons  of  quality  in  Internet  based  interac2ons  with  firms  (e.g.,  Liao  and  Cheung  2008)  Findings:  type  of  interac2on  
  23. 23. 23©  Ana  Isabel  Canhoto  2013                                                            www.anacanhoto.com  Membership   Characteris2cs   Hierarchy  Formal  Informal  Reliability  Ver2cal  Horizontal  •  Preferences  influenced  by  personal  characteris2cs,  cultural  factors  rela2ng  to  trust,  pre-­‐exis2ng  rela2onships,  etc…  Findings:  type  of  interac2on  
  24. 24. 24©  Ana  Isabel  Canhoto  2013                                                            www.anacanhoto.com  Membership   Characteris2cs   Hierarchy   Personalisa2on  Formal  Informal  Reliability  Ver2cal  Horizontal  High  Low  •  Not  men2oned  in  literature  •  Permission  marke2ng  (e.g.,  Pe]y  2000)  Findings:  type  of  interac2on  
  25. 25. 25©  Ana  Isabel  Canhoto  2013  Criteria   Dimension  -­‐  Descrip0on   %  Membership  Formal   -­‐   Firms   approach   social   media   interac2on   in   a  structured  way  33       Informal    -­‐  Interac2ons  don’t  follow  set  rules   3  Characteris2cs  Reliability   -­‐   Certainty   of   being   able   to   access   the  organisa2on,  the  assurance  of  gekng  a  response,  or  the  consistency  in  service  levels  expected  30  Hierarchy  Ver2cal   –   Interac2ng   with   an   authorised,   empowered  representa2ve  of  the  organisa2on  12      Horizontal   –   Dealing   with   another   human   being,   not   a  corpora2on  12  Personalisa2on  High   –   Direct   interac2ons   that   reveal   knowledge   of   the  customers  and  their  circumstances  9       Low  –  Effec2ve  interac2ons  that  do  not  feel  too  personal   1  Findings:  type  of  interac2on  
  26. 26. 26©  Ana  Isabel  Canhoto  2013  Tangible   Informa2on   Emo2onal   Effec2ve   Social  •  Benefits  focused  on  users’  needs  •  Some  appreciated  access  to  product  trials  and  showed  readiness  to  provide  feedback  to  the  organisa2on  •  Support  is  not  restricted  to  B2C  exchanges  •  Visibility  of  interac2ons  increases  social  capital  within  the  network  (Wellman  and  Gulia  1999)  Findings:  support  
  27. 27. 27©  Ana  Isabel  Canhoto  2013  Tangible   Informa2on   Emo2onal   Effec2ve   Social  •  Role  of  emo2on  on  consumer  behaviour  and  customer  experience  documented  in  the  literature  •  Posi2ve  eWoM  influenced  by  iden2fica2on  with,  and  commitment  to,  the  organisa2on  (Brown,  Barry  et  al.  2005)  Findings:  support  
  28. 28. 28©  Ana  Isabel  Canhoto  2013                                                              Tangible   Informa2on   Emo2onal   Effec2ve   Social  •  Not  men2oned  in  literature  •  Concept  of  ‘ability’  (Adler  and  Kwon  2002):  nodes’  competencies  magnify  the  resources  available  to  the  network  Findings:  support  
  29. 29. 29©  Ana  Isabel  Canhoto  2013  Tangible   Informa2on   Emo2onal   Effec2ve   Social  Role  of  social  bonding  in  commitment  and  long  term  rela2onships  (Baron,  Conway  et  al.  2010)  Findings:  support  
  30. 30. 30©  Ana  Isabel  Canhoto  2013  Criteria   Dimension  -­‐  Descrip0on   %  Tangible  High   –   Problems   solved,   financial   benefits   obtained   and  access  to  perks  27  Informa2on   High  –  B2C,  C2B  and  C2C  exchanges   24  Emo2onal  High   –   Feeling   listened   to,   cared   for,   a   focus   on   long   term  rela2onships,  able  to  express  oneself,  etc.  24  Effec2ve  High   –   Speed   with   which   users   can   access   support,   rela2ve  superiority   of   social   media   over   alterna2ve   channels   and  ability  to  avoid  future  problems  15  Social  High  –  Engagement  with  the  organisa2on,  other  users  and  the  community,  and  feeling  part  of  a  group  10  Findings:  support  
  31. 31. Conclusions  •  What  types  of  online  rela2onships  are  most  valued  by  social  media  users?  •  Customers  expect  firms  to  interact  with  them  and  to  offer  support  across  an  array  of  plaGorms,  even  those  not  tradi2onally  thought  of  as  a  business  channel,  for  example  Facebook  •  Integra2on  with  other  channels  of  communica2on  •  Differen2ated  approaches  31©  Ana  Isabel  Canhoto  2013  
  32. 32. Conclusions  •  What  support  do  social  network  users  perceive  they  derive  from  interac2ng  with  organisa2ons  online?  •  The  effec2ve  channel  to  interact  with  the  firm  •  Huge  poten2al  in  customer  service  and  CRM  •  Requires  investment  in  processes,  HR  and  informa2on  through  the  value  chain  (Clark  and  Baker  2004)  •  Possible  perverse  incen2ves  and  counter-­‐produc2ve  behaviours  (Schrage  2011)  32©  Ana  Isabel  Canhoto  2013  
  33. 33. Conclusions  •  Empirical  inves2ga2on  of  the  effect  of  the  Internet  on  social  capital,  as  per  Wellman  and  Gulia  (1999)  •  As  far  as  SM  is  concerned,  Internet  technology  amplifies  social  capital  •  It  amplifies  the  tangible,  informa2onal,  emo2onal  and  social  support  available  to  members  of  online  social  networks  33©  Ana  Isabel  Canhoto  2013  
  34. 34. Conclusions  •  Empirical  evidence  for  the  type  of  social  networks  that  emerge  in  the  online  environment,  as  per  Lee  (2009)  •  Specifically  considers  the  interplay  between  individuals  and  firms,  as  per  Ibarra  and  colleagues  (2005)  34©  Ana  Isabel  Canhoto  2013  
  35. 35. The  role  of  social  media  in  customer  rela2onship  management  Dr Ana Isabel CanhotoSenior Lecturer in Marketing & Director MSc MarketingOxford Brookes Universitywww.anacanhoto.comTwitter: @canhoto  ©  Ana  Isabel  Canhoto  2013  

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