Harnessing the Full Power of Social

Media to Drive Customer Loyalty

Marc Steiner, Principal

Clay Walton-House, Senior Manager

Antje Helfrich, Manager

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Social CRM Strategy for Loyalty Marketers

Defining Social CRM Strategy

Deliberate integration of social media into

a comprehensive multi-channel CRM

strategy, taking advantage of social media’s

unique characteristics to maximize

customer loyalty.

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Social Media Requires Special Focus

from Loyalty Marketing

Social represents a large opportunity for driving loyalty, but…

Is often underutilized by loyalty marketers:

• Historically a channel focused on brand and acquisition

• An organizational function often separate from Loyalty Marketing teams

• Often integrated with loyalty strategies on ad hoc basis

Converting on the opportunity presented by social media requires an

intentional approach.

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The Opportunity at HandWhat Social Media Presents to Loyalty Marketers

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The Social Media Landscape

Continues to Mature

65% of consumers use social to

connect with brands and research

products

One in five customers engage with a

brand on social media after a purchase

to make sure they are getting as much

value out of their purchase as possible

Brand fans are 11% more likely to

continue using the brand, and spend

43% more than non-fans!

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The Social Media Landscape

Continues to Mature

65% of consumers use social to

connect with brands and research

products

One in five customers engage with a

brand on social media after a purchase

to make sure they are getting as much

value out of their purchase as possible

Brand fans are 11% more likely to

continue using the brand, and spend

43% more than non-fans!

Social is the second fastest

growing marketing channel

(after Mobile)

Social Media spend expected to

double by 2016

40% of “leader” companies

prioritize incorporating social

media touch points into CRM

(compared to 26% of “follower”

companies)

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As a Channel, Social Media Presents Unique

Advantages for Loyalty Marketers

NEAR REAL TIME PROVIDES IMMEDIACY

PEER TO PEER

ENABLES TWO-WAY CONVERSATION

CUSTOMERS OWN AND INFLUENCE THE

EXPERIENCE

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As Functional Disciplines, Social Media &

Loyalty Marketing Intersect in Three Key Areas

ENGAGING & BUILDING RELATIONSHIPS WITH THE BASE

Retention & loyalty optimized content

Exclusive offers

Loyalty program integration

Peer to peer engagement: building a community around the brand

INTERCEPTING DETRACTORS & MITIGATING CHURN

Identify at-risk customers

Mitigate low engagement / churn risk

Mitigate detrimental brand impact

LEVERAGING PROMOTERS

Identify influential promoters

Amplify promoters’ voices programmatically

Leverage promoters for acquisition

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A Social CRM Strategy Framework

Helps Define Key Activities for

Leveraging Social in Loyalty Marketing

DRIVE CUSTOMERS

TO SOCIAL

CHANNELS

ENGAGE &

SUPPORT BASE

INTERCEPT

DETRACTORS

LEVERAGE

PROMOTERS

BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM

2 3 4

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“Pillars” 2, 3, and 4 in the framework represent the primary focus of loyalty

marketers in developing and executing a defined Social CRM strategy.

The ChallengesWhat Prevents Loyalty Marketers from Harnessing

the Full Power of Social Media

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Many Companies Face Significant

Challenges in Harnessing Social Media

Only 52% of companies have executives that are

informed, engaged, and aligned with social strategy

Only 48% of companies state that they have a clear

vision of how social media will improve customer

relationships

Only 34% of companies have clear metrics that associate

social activities with business outcomes

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Challenges Fall within Three Key Areas

#1 – LACK OF ORGANIZATIONAL ALIGNMENT

#2 – LACK OF CUSTOMER INSIGHTS RELATED TO

SOCIAL MEDIA

#3 – TECHNOLOGY & DATA LIMITATIONS

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Challenge #1: Lack of

Organizational Alignment

Social media functionally siloed or highly matrixed

Social KPIs not aligned to overarching business objectives

Executive skepticism

Unknown ROI

Weariness over less controlled conversations & properties

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Challenge #2: Lack of Customer

Insights Related to Social Media

Customer Desires for Social Engagement are Unknown

Customer Social Usage Behaviors are Unknown

Types of social properties used

Type of devices used

Types of conversations customers have in social channels

Who they talk to, and how often

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Challenge #3: Technology & Data Limitations

Social Media Technologies have not Reached Scale

Social Listening

Tracking, Measuring, & Reporting

Automation

Data is Distributed & Difficult to Leverage

Social media data is separate from other customer data sources

Difficult to append data from social properties to broader customer data

Difficult to identify and match customers to social media profiles

Test & Learn Capabilities Lack Scale

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From Opportunity to StrategyDeveloping a Social CRM Strategy to Harness the

Full Power of Social for Loyalty

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4 Steps to a Develop a Social CRM Strategy

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4. Prioritize & Plan Implementation

1. Confirm Customer Base Marketing Goals

2. Assess Current State

3. Identify Opportunities & Required

Investments

1. Confirm Customer Base Marketing Goals

REDUCE

CHURN

NPS

Key Drivers

Renewal

Save/Winback

DRIVE

SAVINGS

Care Call

Deflection

INCREASE

REVENUE

X-Sell /

Upsell

Referred

Subscribers

BUSINESS OUTCOMES

KPIs

Loyalty objectives will vary by company / product / industry –

e.g.: Subscription business with high cost of care (telecom, cable, SaaS)

KPIs should tie to measurable business outcomes that drive bottom-line impact; though

seemingly obvious, this is a common misstep that companies make; e.g. using number

of Facebook fans as desired business outcome.18

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2. Assess Current State

Understand your

audience

Loyalty insights

Social media technographics

Social media coverage

Behavioral data

Assess programs

and capabilities

Social footprint

Programs, campaigns, content

Teams, agencies

Operating model, processes, governance

Data, systems, tools

Survey the

landscape

Internal: executive support, social competencies

Competitors

Best practices

Once overarching desired business outcomes have been established, a

comprehensive understanding of the Current State must be achieved.

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Potential programs and tactics

should be informed by:

Competitors

Best Practices

Internal Inventory

Opportunity assessment includes

review of investments needed:

No New Capabilities

Required

Requires Realignment

of Existing Capabilities

Requires Net New

Capabilities

3. Identify Opportunities & Required

Investments

Audience Insights

Current State understanding then informs identification of potential Social CRM

programs and required resources needed to deliver results.

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3. Identify Opportunities & Required

Investments

Identification of new Social CRM programs and tactics can be facilitated by

use of the Social CRM Strategy Framework; e.g. what tactics will best

address “pillar” #2—engaging and supporting your customer base?

DRIVE CUSTOMERS

TO SOCIAL

CHANNELS

ENGAGE &

SUPPORT BASE

INTERCEPT

DETRACTORS

LEVERAGE

PROMOTERS

BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM

2 3 4

5

1

POTENTIAL PROGRAMS & TACTICS

REQUIRED CAPABILITIES

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SOCIAL KPIs & METRICS

REDUCE

CHURN

NPS

Key Drivers

Renewal

Save/Winback

DRIVE

SAVINGS

Care Call

Deflection

INCREASE

REVENUE

X-Sell /

Upsell

Referred

Subscribers

• NPS among Followers / Non-followers

• Correlation with Engagement

• Renewal Offers by Channel

• Content Views x Topic

• Call Volume x Topic

• Campaign/ Offer

Performance

• Offer Shares

• Referrals

4. Prioritize & Plan Implementation

New Social CRM programs and tactics should be prioritized based on how

effectively they support the desired business outcomes and KPIs established

earlier in the strategy development process.

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Following this Process to Define a Social CRM

Strategy Delivers Significant Business Value

CLEAR “CHARTER” FOR HOW SOCIAL MEDIA CAN DRIVE LOYALTY

ALIGNMENT OF FUNCTIONAL RESOURCES WITH CLEAR MAPPING

TO OVERARCHING BUSINESS OBJECTIVES

IMPROVED CUSTOMER EXPERIENCE

IMPROVED CUSTOMER INSIGHTS

About Lenati

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Who We Are

Lenati partners with clients to develop innovative sales and marketing strategies, elevating customer

experience and transforming how companies go to market. We help organizations build stronger

customer connections.

Our ExpertiseLenati’s services address four broad areas of

customer need:

Select ClientsLenati works with a variety of Fortune 500

companies:

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What We Do

Tailored to the unique needs of our clients, we provide deep expertise centered

on creating customer connections through four primary solution areas:

Helping clients confront common

challenges:

New product introductions & product revitalization

Expansion to new markets and new channels

Customer acquisition, retention & growth

Marketing and sales execution, optimization &

measurement

Sales team creation, transformation & enablement

Loyalty and retention strategies and programs

Channel partner selection, on-boarding &

management

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Customer Retention & Loyalty Services

Loyalty Insights & Analytics – Develop a 360° profile of your customers

Customer Research

Segmentation & Modeling

Data Mining

Retention & Loyalty Strategy – Build the vision to improve customer engagement

Strategy Definition

Segment-Specific Models

Business Valuation

Loyalty Program Design – Build, launch, enhance or retire a program

Program Design

Program Optimization

Re-launch or Retirement

Streamlined CRM Operations – Get the most out of your people & process Organizational Design

Process Improvement

Program Integration & Consolidation

Technology Platforms – Evaluation & selection of supporting technologies

Mobile Strategy

Social CRM Strategy

CRM & Marketing Automation Platforms

Loyalty Program Platforms27

About the Authors

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Clay Walton-House, Senior Manager

Retention & Loyalty Services

As the leader of Lenati’s Customer

Retention & Loyalty Team, Clay helps

Fortune 500 companies create and

implement new and interesting

customer engagement strategies that

accelerate growth and build loyalty. His

expertise lies in understanding

consumer behavior and translating it

into actionable customer insights. Clay

has a proven track record of successful

program design & optimization and

CRM operations, helping uncover ways

to build retention and loyalty strategies

into a company’s broader business

model.

Marc Steiner, Principal

Customer & Product Strategy Services

Marc leads Lenati’s Customer &

Product Strategy Team, and has a

passion for combining his 20 years of

management consulting expertise with

insights from fields as diverse as

demography, anthropology, military

strategy, and religious studies to help

rethink fundamental approaches to

product and customer strategy. Marc

has been an advisor to companies

across numerous industries, including

leading brands like Starbucks, T-

Mobile, Microsoft, and Adobe.

Antje Helfrich, Manager

Social Media Marketing Services

Antje has over 15 years of experience

working in the intersection of business,

technology and consumers, both inside

corporations and as a consultant. She

has an extensive track record in

strategic planning, market and

customer research, and marketing and

program management. As head of

Lenati’s Social Marketing practice,

Antje has recently developed a Social

Marketing Operating Model and a

Social Measurement Framework for a

Fortune 50 global company, and a

Social CRM Strategy for a leading

wireless carrier.

Connect with Us

Headquartered in Seattle

1300 Dexter Ave N. #100

Seattle WA 98109

Phone: (800) 848-1449

Email: info@lenati.com

Lenati.com

Twitter.com/LenatiLLC

LinkedIn.com/company/Lenati-LLC

Facebook.com/LenatiLLC

www.lenati.com/blog

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