Social CRM in the Swiss Banking Sector

Social CRM in the Financial Sector > A Framework for Swiss Banking

12/06/27 Natalie Huong

June 27, 2012 2 D-MTEC / Strategic Management and Innovation / Natalie Huong

“Markets are conversations” The Cluetrain Manifesto (Levine et al. 2001)


Swiss Banking Sector > Challenges

§  Loss in loyalty and trust §  The new generation customer §  Competitive strategy §  Decreasing entry barriers


Agenda

§  Theory > Social Media | CRM | Social CRM > Research Question

§  Research Design > Variables | Sample | Method

§  Analysis > Example: Social networking sites

§  Results > Social CRM framework

§  Conclusion > Filling the gap > Managerial implications > Limitations & Future Work

Theory Design Analysis Results Conclusion


Theory


(Greenberg 2009) CRM focus

Marketing

Sales

Service

Traditional CRM Social Media

(Kietzmann, et al, 2011)

Presence

Relation-ships

Repu-tation

Groups

Identity

Conver-sations

Sharing

Social Media experiences

enha

nces

impa

cts

Value chain

Swiss Banking Sector

(Faase, Helms, and Spruit 2011)

Customer retention & involvement

Infrastructure

Information

Customer management

Customer engagement

Maturity layers of social CRM

creates

constitutes emerges to

Social CRM


Theory > Research Question

How can Social CRM add Value in the Swiss Banking Sector?


Communication Social media platforms

Regulations

Risks

Financial Sector Enterprise Customer

Case comparison


Research Design


Swiss Banking Sector Social Media CRM Social CRM Banks Platforms

Scope Variables Sample

Data collection

Data analysis

Theory generation

Expert Interviews Multiple Case Studies Desk Research

Case analysis

itera

tion Research Data

enfolding

Social Media CRM Social CRM


S o c i a l C R M c o r e t o p i c s S o c i a l C R M d i m e n s i o n s

Marketing Sales Service

Know-ledge

Branding PR Pre-sales Sales After-sales

Support Feed-back

Improve-ment

Theory Design Analysis Results Conclusion I

nt

er

ac

tio

n l

ev

els

Ente

rpris

e

Corporate

Leadership

Employee

Soci

al w

eb

Community

Target groups

Customer

Design> Variables and Framework

Customer

Target groups

Community

Corporate

Executive

Employee

Social Web Enterprise


S o c i a l C R M d i m e n s i o n s


Know-ledge

Branding PR Pre-sales Sales After-sales

Support Feed-back

Improve-ment

In

te

ra

ct

ion

le

ve

ls

Ente

rpri

se

Corporate

Leadership

Employee

Soci

al w

eb

Community

Target groups

Customer

Design> Sample



Own illustration according to Kaplan and Haenlein (2010)

Design > Sample > Classification of Social Media Platforms

S o c i a l p r e s e n c e / M e d i a r i c h n e s s

Low Medium High

Self

-pre

sen

tati

on

Hig

h

Blogs

Social networking sites

Virtual social worlds

Low

Collaborative projects

Content communities

Virtual game worlds



Data analysis > Social networks > Case Study


Case Study : ASB Virtual Branch on Facebook

Best practices (Simpson, 2010) §  Chat for interactive consulting and sales > Real time communication §  Initiative raised awareness by more than 10% §  Increase in user engagement §  Increase in reach §  High media presence

Screenshots taken from ASB Virtual Branch on Facebook,, accessed on May 30,2012

Arguments

Mar

ketin

g Knowledge +

Branding ++ Raise brand awareness and reputation

Public Relations ++ Customer experience > Customer engagement

Sale

s

Presales ++ Dialogue +support > Increase loyalty > customer acquisition

Sales -

Aftersales ++ Real time interaction > cross- and up-selling opportunities

Serv

ice

Support +

Feedback +

Improvement 0

++ best fit + suitable 0 less suitable - not suitable

Arguments

Mar

ketin

g Knowledge + + ++ Info on company, products services

Branding ++ + 0 Raise brand awareness and reputation

Public Relations ++ 0 ++ Customer experience, acquisition and engagement

Sale

s

Presales ++ 0 ++ Dialogue +support > Increase loyalty

Sales - - ++ Online community is more secure than networks

Aftersales ++ - ++ Provide cross- and up-selling opportunities

Serv

ice

Support + - ++ Increase customer lifetime value and engagement

Feedback + - ++ Reach and visibility, customer retention and engagement

Improvement 0 - ++ Feedback Product improvement and product design

++ best fit + suitable 0 less suitable - not suitable


June 27, 2012

12 D-MTEC / Strategic Management and Innovation / Natalie Huong

Results > Social networking sites> Field of application

Results > Social networking sites > Social CRM framework


June 27, 2012


S o c i a l C R M d i m e n s i o n s


Know

ledg

e

Bran

ding

PR

Pres

ales

Sale

s

Afte

rsal

es

Supp

ort

Feed

back

Impr

ovem

ent

In

te

ra

ct

ion

le

ve

ls

Ente

rpris

e

Corporate

Leadership

Employee

Soci

al w

eb

Community

Target groups

Customer

Assumption 1 Correlation between confidentiality and security Assumption 2 Correlation between complexity and interactivity Assumption 3 Communication is most efficient on equal level

Results > Consolidated Social CRM Framework



C R M d i m e n s i o n s

Leve

ls o

f int

erac

tion


Know

ledge

Bran

ding

PR

Pre-

sales

Sales

Afte

r-sale

s

Supp

ort

Feed

back

Impr

ovem

ent

Ente

rpris

e Corporate

Leadership

Employee

Socia

l web

Community

Target groups

Customer

Conclusion> Implications for management


June 27, 2012


§  Marketing is the key source of generating a sustainable value added.

§  Social Networks are the entering wedge to engage in a conversation. §  Corporate online communities offer the broadest field of application. §  Communication on employee level is the primary source for sales.

§  The right social media mix ensures a competitive advantage.

Social CRM framework reveals which social media platform benefits the dimensions of social CRM and what level of interaction obtains the richest conversation and the best value added.

Conclusion> Filling the gap


June 27, 2012


How can Social CRM add Value in the Swiss Banking Sector?

Social CRM framework Platform

Banking value chain

Social CRM dimensions

Level of interaction

... ... ... ...

Conversation

Conclusions> Limitations and Future Work


June 27, 2012


Lim

itat

ion

s •  Inductive approach

•  Core focus on Social CRM and communication between enterprise and social web

•  View on external use of social media

•  No clear distinction between B2B and B2C

Futu

re W

ork

•  Deductive approach to test theory and propositions

•  Social Media for recruitment and innovation

•  Internal use of social media and collaboration

•  Narrow focus on several topics (financial services, specific target groups, B2B, B2C)

Conclusions> The Bottom Line


June 27, 2012


“Corporate firewalls have kept smart employees in and smart markets out. It’s going to cause real pain to tear those walls down. But the result will be a new kind of conversation. And it will be the most exciting conversation business has ever engaged in.”

The Cluetrain Manifesto (Levine et al. 2001)

References



§  Faase, Robbert, Remko Helms, and Marco Spruit. 2011. “Web 2.0 in the CRM Domain: Defining Social CRM.” International Journal of Electronic Customer Relationship Management 5

§  Fredricksen, Clark. 2010. “Case Study: American Express OPEN Forum Socializes Small Business.” http://www.emarketer.com/blog/index.php/case-study-american-express-open-forum-social-media-small-business/, accessed on May 13, 2012

§  Kaplan, Andreas M., and Michael Haenlein. 2010. “Users of the World, Unite! The Challenges and Opportunities of Social Media.” Business Horizons 53 (1) (February): 59–68

§  Kaplan, Andreas M., and Michael Haenlein, 2011. “The Early Bird Catches the News: Nine Things You Should Know About Micro-blogging.” Business Horizons 54 (2) (March): 105–113. doi:10.1016/j.bushor.2010.09.004.

§  Kietzmann, Jan H., Kristopher Hermkens, Ian P. McCarthy, and Bruno S. Silvestre. 2012. “Social Media? Get Serious! Understanding the Functional Building Blocks of Social Media.” Business Horizons 54 (3) 241–251

§  Lions Share. 2012. “Banking Value Chain.” Lion’s Share Marketing Group. §  Langlois, Christophe. 2011. A Practical Guide to Social Media in Financial Services. Searching Finance Ltd. §  Levine, Rick, Christopher Locke, Doc Searls, and David Weinberger. 2001. The Cluetrain Manifesto: The End of Business as

Usual. Basic Books. §  Messerschmidt, Christian M., Sven C. Berger, and Bernd Skiera. 2010. Web 2.0 im Retail Banking: Einsatzmöglichkeiten,

Praxisbeispiele und empirische Nutzeranalyse. Gabler Verlag. §  Raake, Stefan, and Claudia Hilker. 2010. Web 2.0 in der Finanzbranche: die neue Macht des Kunden. Gabler. §  Simpson, Deborah. 2010. ASB-facebook Advertising Case Study. http://ads.ak.facebook.com/ads/FacebookAds/

ASB_CaseStudy.pdf, accessed on May 9, 2012


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