New measures of value are needed so that organizations know how best to direct engagement efforts; revised engagement strategies can be improved with customer analytics
CARY, N.C.–(BUSINESS WIRE)–Re-envisioning Customer Value, a report from the Economist Intelligence Unit, sponsored by SAS, the leader in business analytics, found that the rise of social media has required companies to reevaluate the way they determine customer value, which in turn can reshape customer engagement strategies. Measures of customer value that focus solely on transaction activity capture only a fraction of an individual’s behavior and potential value. The report also identifies a clear need for technology to help organizations maximize social media efforts.
“Organizations can then assign an average value associated with behaviors like online conversions, or sale of a new product or service”
“Many organizations are questioning how they account for value,” said Jonathan Hornby, Marketing Director at SAS. “Instead of focusing on revenue or profit associated with an individual’s or household’s transactions, organizations are now starting to think about the value of influence and collaboration – particularly given the growth of social media.“
That growth has put the customer in a stronger position. Anyone can have a voice and everyone expects “human” near-real-time responses. Organizations operating without improved customer value metrics are hiring staff to monitor and respond to virtually everything – which is difficult to scale – not only because of the sheer volumes of activity, but the risk of having inconsistent responses or staff that are untrained in the art of risk mitigation. Marketers recognize that handled correctly, these interactions can grow the business, turning critics into champions and improving both customer experience and relevance.
Hornby recommends organizations begin improving that experience by “using technology (in real time) to filter out noise and direct conversations to the most appropriate member of staff – wherever they may be in the organization – not just the staffers in your social media hub.”
That filtering process begins with improved customer value metrics. “We are basically talking about how organizations can better optimize resources to keep customers happy, mitigate risk and grow the business profitably. It all starts with a better understanding of which customers have the potential to grow or constrain profit,” Hornby added.
Social conversations are messy and unstructured. Nonetheless, it is possible to capture social media activity and derive meaningful information from it using analytics.