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2014 University of Cape town seminar speech digital marketing mobile alignment mobile crm professor jarisalo

University of Cape Town seminar speech on digital marketing and how to align with mobile marketing. Highlight the role of mobile CRM and some thoughts on the future of CRM by Jari Salo professor of digital business and marketing

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2014 University of Cape town seminar speech digital marketing mobile alignment mobile crm professor jarisalo

  1. 1. Aligning digital marketing with CRM Jari Salo, Professor of Marketing Adjunct Professor (Aalto University School of Business) Associate Editor of Journal of Information Technology Research Oulu Business School University of Oulu Department of Marketing P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  2. 2. Research: • Industrial marketing (innovation, services, relationships, digitization) • Digital retailing (Facebook in clothing retail, FB addiction) • Role of technology in marketing (e.g. avatar creation, virtual world spending behavior, mobile advertising) • Advertising and branding (industrial/digital context) P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  3. 3. Company references P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  4. 4. Agenda • Digital Marketing Framework • Customer Relationship Management • Mobile Customer Relationship Management • Future of Customer Relationship Management P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  5. 5. Digital Marketing Introduction and Framework P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  6. 6. A working definition for digital marketing • Digital marketing aims at creating, demonstrating, documenting, communicating and delivering value in digitized way to customers (B2C and B2B) and for managing customer relationships in ways that enhance digital joint value creation of customers, organizations and stakeholders. (Journal of Digital Marketing)
  7. 7. Digital marketing landscape
  8. 8. Source: http://internetiseverywhere.wordpress.com/2011/04/09/i nternet-web-2-0
  9. 9. Why DM? • Business to consumer marketing has exploded in recent years (use of Facebook, Instagram, Pinterest, Twitter + measuring compelling customer experience) • BUT… even professional buyers have used and are using digital tools e.g. social media in their daily job – even more than the industrial sellers (see Davis, 2008). • 65 % out of 1000 buyers operating in B2B markets tell that they start search process (new, rebuy, modified buy) with general search engines and after that move to industry specific search engines like business.com
  10. 10. Most popular DM tools today in Finnish companies? Most popular DM tools used in Finnish companies: • Company website • Search engine optimization and advertising = SEM • Newsletters and internet advertising • Social media rising fast Reasons that have influenced to adopt DM: • Cost pressure • Chancing consumer/customer behavior More than 33 % of the Finnish companies that responded have allocated a budget for DM (AaltoEE:Divia report, 2014)
  11. 11. Digital Marketing Framework CRM SCM INNOVATION & NPD Online metrics P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi Business Strategy Customer Strategy Value creation Value co-creation Value capture Performance assesment process a) Shareholder results b) Performance measuring c) KPI Multichannel integration -FB, Instagram Twitter -YouTube -Email & newsletters -Company websites SEO/SEA… Web advertising -Blogs, pods, - Vpods, webcasts -Mashups, widgets -Location based services e.g. tablet computers Information systems - Data storaging & mining - Front & back office applications - Big data and cloud applications Salo ©
  12. 12. Customer Relationship Management P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  13. 13. Context for relationships • There are different ways to organize exchange • Main interest of marketing is in exchange behavior • Exchange can occur in industrial/business markets or in consumer markets which both can be jointly labeled customer markets • Exchange can be organized in two opposite ways that are market (transactions) or hierarchy (within a company) • However, mostly exchange occurs in quasi-forms between markets and hierarchies P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  14. 14. Shift in marketing paradigm Transaction marketing • Focus on a single sale • Orientation on product features • Short time-scale • Little emphasis on customer service • Limited customer commitment • Moderate customer contact • Quality is primarily a concern of customer Relationship marketing • Focus on customer retention • Orientation to customer values • Long time-scale • High customer service emphasis • High customer contact • Quality is the concern of all Zineldin, 2000
  15. 15. The relationship continuum Day, 2000
  16. 16. The relationship continuum Day, 2000
  17. 17. Markets-relating capability Day, 2000
  18. 18. CRM • CRM is the outcome of the continuing evolution and integration of marketing ideas and newly available data, technologies, and organizational forms. CRM • relates to strategy • the management of the dual creation of value • the intelligent use of data and technology • the acquisition of customer knowledge • the diffusion of this knowledge to the appropriate stakeholders • the development of appropriate (long-term) relationships with specific customers and/or customer groups • and the integration of processes across the many areas of the firm and across the network of firms that collaborate to generate customer value Boulding et al., 2005 JM
  19. 19. Managing customers for profit Kumar, 2008 P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  20. 20. To reiterate - So what is CRM about ? P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  21. 21. One definition for CRM • CRM is a strategic approach that is concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. CRM unites the potential of relationship marketing strategies and IT to create profitable, long-term relationships with customers and other key stakeholders. CRM provides enhanced opportunities to use data and information to both understand customers and co-create value with them. This requires a cross-functional integration of processes, people, operations, and marketing capabilities that is enabled through information, technology, and applications. Payne and Frow (2005) JM
  22. 22. Mobile Customer Relationship Management -Developing database -Initiating mobile CRM - Using mobile for CRM purposes -Examples of mCRM P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  23. 23. CRM, database development Seven steps to develop a customer database 1. Define the database functions 2. Define the information requirements 3. Identify the information sources 4. Select the database technology and hardware platform 5. Build applications to access and process information 6. Populate the database 7. Maintain the database
  24. 24. Developing a customer database On-going One-off Maintain the Database Select the Database Technology and Hardware Platform Populate the Database Build Applications to Access and Process Information Identify the Information Sources Define the Database Functions Define the Information Requirements O´Connor & Galvin, 2001
  25. 25. Basic outlay of a customer database Customer Database - Customers - Suspects - Prospects Planning Systems Financial Systems Sales Systems Customer Service Systems Marketing Systems From Analytical to Operational
  26. 26. A simple mCRM system Sinisalo et al., 2005
  27. 27. mCRM frame •CRM System •Mobile Devices •Server •Number •Gateways •Campaign logic •Billing •Media mix •Permission Database •Regulatory •Consumer Acceptance •Mobile Infrastructure •Technology •Marketing •Marketing Enviroment (Sinisalo et al., 2005)
  28. 28. mCRM •mCRM is defined as an application of CRM system, which utilizes any form of marketing, advertising, or sales promotion activity aiming at building and maintaining a profit-maximizing portfolio of customer relationships by taking advantage of the mobile channel. Sinisalo et al., 2005
  29. 29. Mobile marketing • Mobile Marketing Association (2009): Mobile marketing is the use of wireless media in the delivery of integrated content and as a direct response vehicle in integrated media campaign or in marketing communication campaigns • Mobile advertising refers to a form of advertising in which advertiser communicates with the target group via a mobile device • Mobile media refers to portable devices and services
  30. 30. Mobile marketing process Salo et al., 2008
  31. 31. Salo & Karjaluoto, 2007 Why mobile medium is effective ?
  32. 32. Location based mobile marketing Salo & Tähtinen, 2004
  33. 33. Context / location awereness • Apple's iBeacon technology - in-store Bluetooth location trackers designed to interact with smartphones - enables retailers and app publishers to identify people individually the moment they enter a shop • iBeacon available with many vendors • Similar to iJack service developed by TeliaSonera in early 2000 which they abandoned in 2004 Sales/deals 80% Content relevant to interest/ Location 62% P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi Swirl 2013
  34. 34. Future of Customer Relationship Management P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  35. 35. Future areas • Instead of CRM – Customer experience management (CEM) • Social CRM for customer insight • Social login for retailing • Linking big data insights to CRM • Cloud / open CRM • Mobile – location specific and real time CRM P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  36. 36. References Tähtinen, J. & Salo, J. (2004). Special Features of Mobile Advertising and their Utilization. Proceedings (CD-ROM) of the 33rd European Marketing Academy (EMAC) conference Worldwide marketing, Murcia, Spain. May 18th-21st, 2004, p.1-8. Sinisalo, J., Salo, J., Karjaluoto, H. and Leppäniemi. M. (2007). Mobile Customer Relationship Management – Underlying Issues and Challenges. Business Process Management Journal, 13, (6), 771-787, ABDC B). Salo, J. and Karjaluoto, H. (2007). Mobile games as an advertising medium: towards a new research agenda. The International Research Journal Innovative Marketing, 3, (1), 72-83. Salo, J., Sinisalo, J. and Karjaluoto, H. (2008). Intentionally Developed Business Network for Mobile Marketing: A Case Study from Finland. Journal of Business & Industrial Marketing, 23, (7), 497-506. (SSCI 0.53 impact, ABDC A). P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
  37. 37. jari.salo@oulu.fi jari.salo@aalto.fi Comments? Questions? P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

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