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Service Logic – a new Dominant Logic for the Social Customer Relationship Marketerby WimRampen,[object Object],image courtesy: http://www.flickr.com/photos/stuartslimp/3936066556/in/pool-crowded_multitude,[object Object]
Goods dominant logic:,[object Object],value is created at the moment of exchange, after that, the Customer is on his own,[object Object],value exchange: when money and ownership or rights change hands,[object Object],image courtesy: http://www.flickr.com/photos/mithril/2764675971/,[object Object]
The new dominant logic: Service Logic,[object Object],is not about selling services,[object Object],image courtesy: http://www.flickr.com/photos/ptrktn/3801479228/,[object Object]
Service Logic: value co-creation happens AFTER value exchange,[object Object],image courtesy: http://www.flickr.com/photos/viriyincy/3594764008/ ,[object Object]
Value for customers means that, after they have been assisted by a self-service or full-service process, they are – or feel – better off than before,[object Object],image courtesy: http://www.flickr.com/photos/yalcin_arsan/4055973255/in/pool-crowded_multitude,[object Object]
Whether a Customer is – or feels – better off is determined by the Customer,[object Object],image courtesy:: http://www.flickr.com/photos/yalcin_arsan/4001627189/in/pool-crowded_multitude,[object Object]
Value is co-created when customer desired outcomes are met,[object Object],in other words: when the Customer’s job is done to his satisfaction,[object Object],image courtesy: http://www.flickr.com/photos/cassandrasarmanho/4006047824/in/pool-crowded_multitude,[object Object]
Fact: most Customers can use some help in creating value,[object Object],image courtesy: http://www.flickr.com/photos/cleopatra69/4033747792/in/pool-crowded_multitude,[object Object]
If value for the Customer is dominantly created after value exchange, i.e. IN USE, both scope and content of marketing strategies should shift from dominantly focused on creating momentum for value exchange to a continuum of interactions in networks of relationships aimed to support customers’ value creation ,[object Object],image courtesy: http://www.flickr.com/photos/beeteeoh/3298373727/,[object Object]
The “new” goal for marketing is to support (and improve) customers’ value creation “in use”,[object Object],image courtesy: http://www.flickr.com/photos/msdm/3491968596/,[object Object]
Value “in use” is determined by Customer outcomes of experiences during the lifetime of consumption of products & services,[object Object],image courtesy: http://www.flickr.com/photos/seasonalplume/2607760460/,[object Object]
Touch-points and interactions (in networks) of relationships are the building blocks of personalized experiences in a socially networked eco-system,[object Object],image courtesy: http://www.flickr.com/photos/rakustow/3942156152/,[object Object]
The firm (marketing) should strive for engagement in interactions and relationships with its customers’ (net)work or process to create value,[object Object],image courtesy: http://www.flickr.com/photos/caribb/185905926/,[object Object]
5 Questions for today’s marketers,[object Object],image courtesy: http://www.flickr.com/photos/downingstreet/3386080464/,[object Object]
1. Do you understand how and to what extent your customers are meeting their desired outcomes when using (experiencing) your product or services (over its lifetime)?,[object Object],image courtesy: http://www.flickr.com/photos/amirjina/2282812623/,[object Object]
2. What interactions with your product, services, partners, employees, touch-points, their networks and relationships influence and shape customers’ experiences in use?,[object Object],image courtesy: http://www.flickr.com/photos/laughingsquid/383433646/,[object Object]
3. What opportunities do you see to engage in the customer’s value-creation process?,[object Object],image courtesy: http://www.flickr.com/photos/defaultbb/3753829500/,[object Object]
4. What opportunities do you see to pro-actively help the customer meet their desired outcomes through (new ways of) interacting (in & via networks) and building relationships?,[object Object],image courtesy: http://www.flickr.com/photos/vorticeassurdo/167001806/,[object Object]
5. Who do you need to collaborate with to purposefully design & execute experiences over a lifetime of use to exploit these opportunities?,[object Object],image courtesy: http://www.flickr.com/photos/marcelgermain/3956114555/in/photostream/,[object Object]
How does “Social” tie into all this?,[object Object],image courtesy: http://www.flickr.com/photos/nycviarachel/507963159/,[object Object]
A. SOCIAL CRM STRATEGY FRAMEWORK STATEMENT (version 2),[object Object],A socialcrmstrategy is aboutunderstandingwho the customer is throughlistening to, engagingwith and collaborationbetweencustomers, employees and partners. It is aimed at developinginnovations, interactions in networks of relationships and communitiesthat support customers in doing the jobs theyneed to do. The means are a personalized design of the service experiencethatempowerscustomers, employees and partners to influencehowwelltheycan meet theirdesiredoutcomes,[object Object]
B. 3 out of 15 new trends driving Social Business,[object Object],Courtesy: Graham Hill,[object Object],image courtesy: http://www.flickr.com/photos/azarov/3279771862/,[object Object]
B#1. From Individual Customers to Networks of Customers,[object Object]
B#12. From Stand-alone Companies to an Ecosystem of Networked Partners,[object Object],image courtesy: http://www.flickr.com/photos/mattsabo17/143172563/,[object Object]
B#15. From Customer Lifetime Value to Customer Network Value,[object Object],image courtesy: http://www.flickr.com/photos/marxpix/471485822/,[object Object]
Implications for Marketing,[object Object],image courtesy: http://www.flickr.com/photos/ahmadnawawi/3808452611/,[object Object]
Marketing’s 1st job is to understand customers’ value creation process (= jobs & desired outcomes) and where in the process Customers fail to meet their desired outcomes. ,[object Object],image courtesy: http://www.flickr.com/photos/berkeleylab/2826536670/in/set-72157606890009024/,[object Object]
Marketing’s 2nd job is to build relationships in communities of individuals with similar desired outcomes and behavior,[object Object],image courtesy: http://www.flickr.com/photos/loveforphotography/457269816/,[object Object]
Marketing’s 3rd job is to support Customers’ value creation process,[object Object],image courtesy: http://www.flickr.com/photos/romec1/3246065362/,[object Object]
Marketing’s 4th job is to design experiences that stimulate company’s engagement through interactions in networks of relationships,[object Object]
Marketing’s 5th job is to engage employees and partners in supporting Customers in their process of value creation,[object Object]
Marketing’s 6th job is to extract actionable insights from 360-degree feedback to foster innovations and to turn them into value propositions that attract new Customers ,[object Object],image courtesy: http://www.flickr.com/photos/ableman/534153791/in/set-72157600321756478/,[object Object]
Marketing’s 7th job is to redesign metrics to capture the network value for the firm and to ensure there is high correlation between these metrics an Customers’ value created.,[object Object],image courtesy: http://www.flickr.com/photos/toastforbrekkie/3440023097/,[object Object]
What about Marketing Laws?,[object Object]
The P’s remain valid, but less dominant. Focus is no longer dominantly on product and value chain towards value exchange. ,[object Object],image courtesy: http://www.flickr.com/photos/jasmic/1472319885/,[object Object]
Segmentation based on demo/sociographics come 2nd, after segmentation based on Customer jobs & (desired) outcomes. ,[object Object],image courtesy: http://www.flickr.com/photos/un_photo/3815987498/,[object Object]
THANK YOU LET’S START THE DEBATELeave a comment or contact me on Twitter:twitter.com/wimrampen,[object Object]
RESOURCES,[object Object],Gummeson, Evert (2007): ,[object Object],Exit Services Marketing – Enter Service Marketing,[object Object],Michael A. Merz & Yi He & Stephen L. Vargo (2008): ,[object Object],The evolving brand logic: a service-dominant logic perspective,[object Object],David Ballantyne & Richard J Varey (2008): ,[object Object],The service-dominant logic and the future of marketing,[object Object],Sara Sandstro¨m, Bo Edvardsson, Per Kristensson & Peter Magnusson (2008):,[object Object],Value in use through service experience,[object Object],ChristiaanGrönroos & AnikaRavald (2009),[object Object],Marketing and the Logic of Service; Value Facilitation, Value Creation and Co-Creation and their marketing implications,[object Object],Graham Hill (2009),[object Object],A Manifesto for Social Business,[object Object]

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Service Logic – a new Dominant Logic for Social Customer Relationship Marketing

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