The role of Customer Relationship Marketing in the 2.0 world Building more relevant brand relationships in the digitalised lives of customers. A discussion involving Dickens, Eggs, Amplifiers and the way brands should build customer relationships for tomorrow. . . . . . . . BrandZeal .

What I won’t be talking about… What the role of relationship marketing was before web 2.0. e.g. Theodore Levitt, intensifying the relationship, developing a series of valued transactions with the same customer. etc. OR The rise of social media, blogging, price comparison, information tagging and digital communities. Because you know all about this already.

Before Web 2.0, we’d already experienced digital and relationship marketing co-existing for a decade. Long term rewards that maximise customer lifetime value Every contact recorded and measured Existing loyalty programmes extended point collection opportunities Recommendations based on your purchases and the purchases of others Bank customers rarely defect. But this magazine builds the customer relationship and generates cross sales more effectively than DM for RBS/ Nat West 80% of Waitrose profit comes from 20% of customers. All of whom read Waitrose Food Illustrated monthly Email became more personalised over time

“The future is already here, it’s just not very evenly distributed.” So here are some thoughts for the role of relationship marketing in the 2.0 world

Customers are more empowered than ever before. This has given them Great Expectations. Brand relationships don’t always live up to these successfully. So relationship marketing needs to both relate with and market to customers. Be active and interested in customer preferences, rather than simply segment customers by their preferences.

The 20th century was the age of the amplified brand. The 21st century is the age of the amplified consumer. One person no longer only influences their neighbours, they may sway the entire crowd.

It’s about value and values Customers expect savings, but choose who they keep company with.

Authenticity has worked for heritage brands for decades. Now authenticity is also being expressed more in terms of shared social values.

Some relationships are mutually supportive and empowering Others may be controlling and overtly seek to profit from your behaviour

How you respond when something goes wrong reveals the human face of the brand. This is increasingly important to people. Relationship marketing, now extends into PR, Corporate Social Responsibility and Customer Service. Prepare how you respond to customer problems through relationship marketing. Social media monitoring helps identify problems before they become big problem.

It’s also about BIG small

Some brands will treat you in a Big way

Others in a small, but still highly valued, way Shared interests Regular engagement Valued reward for little cost A social cause with editorial voice Real world, with a twist of celebrity glamour Inviting participation Offering trial and reward Sharing views and experiences Securing peer group approval

Being faithful is anti-social Your consumers will want to try something new, so provide the sizzle of the affair, as well as the long term relationship.

Increasingly it involves BUILDING PLATFORMS – things that become really important in the life of the consumer, but aren’t easy for competitors to replicate or own.

Example 2.0 Platform Platforms run on 2.0 networks and hardware. This example platform from Nike demonstrates a role for relationship marketing that wasn't possible before Web 2.0. A customer who buys into the Nike+ platform changes their behaviour; the value of the brand relationship grows, with ongoing use, growing relevance and brand support. Platforms are increasingly becoming more mobile. Apps and browser-based software extend the brand relationship, wherever the customer wishes to access and interact with a brand. Creating new transaction opportunities.

In summary The role of relationship marketing in the 2.0 world Customers have Great Expectations Make the brand active and interested in customer preferences, rather than just segment customers by their preferences. The 21st century is the age of the amplified consumer. It’s about value and values Authenticity is being shared in social values Develop relationships that are more mutually supportive and empowering Prepare how you respond for when something goes wrong Reward Big small as relevant Being faithful to brands is anti-social. So provide the sizzle of the affair, as well as the long term relationship Build Platforms that are highly valued and difficult for competitors to replicate. So that your brand becomes more relevant, recommended and revisited at the next purchase.

© 2010 BrandZeal. All rights reserved. Copyright © 2010 BrandZeal. All rights reserved. You may copy, distribute and reference the content of this presentation. When you reference it, please highlight BrandZeal as the originator. We would appreciate the inclusion of a link to our website: www.brandzeal.com If you have any questions, please contact: kevin.sugrue@brandzeal.com Thank you.