For many companies, incorporating online social influence into their strategy portfolio is quite difficult for them to take on. They have to face the challenges and obstacles. Just like CRM, it has taken years for organizations to use CRM as a strategy rather than as a set of tools.
For the social web, it actually records customers making explicit ratings, rankings, recommendations or warnings about products in services. Thus, companies must figure out how to embrace their customers and do the right thing for them. They should focus on creating strong customer relationships, taking care of problems quickly when they occur, empowering evangelists and build their own strong community.
In particular, the social web allows brands to actually measure three new types of public data sources, according Web Strategist Jeremiah:
1. Customer Satisfaction: Customers can now provide ratings, reviews, and other critiques in online review sites.
2. Influence: Not all customers are created equal, in fact some customers have have great breadth of reach (like Celebrities on Twitter) or have depth in knowledge (expert blogger in your market).
3. Referral Activity: No need to ask “how likely” they are to refer, you can see them do it live.
In order to get accurate, measure the Total Social Customer Value (TSCV), companies must value both the total customer satisfaction as well as influence and advocacy behaviors in order to provide a holistic example of the modern customer.
According Jeremiah, to develop your Total Social Customer Value (TSCV), there are 6 factorials you need to look into, they are:
1. Net Promoter Score – This is the mainstay of customer satisfaction measurement and shouldn’t go away. It’s easily understood, well documented, and is a useful metric to overall ‘referral intention’. (Intention doesn’t measure actual behavior, just the likelehood you would)
2. Influence (Absolute) – To determine if a customer is influential to others, such as celebrities, top bloggers, analysts and media. This doesn’t necessarily mean however they are trusted by your specific market.
3. Influence (Relative) – These are individuals that are ‘experts’ in your particular market. While they may not have mainstream appeal, they may influence consumers directly. For example, bloggers that write a dedicated blog to your market, or super reviewers that provide detailed reviews about your products in online sites.
4. Advocacy (Intention) – Data that indicates a prospect is ‘willing’ to purchase, but has not yet. The difference here is that they do so in public.
5. Advocacy (Purchase, or Post Purchase) – This is the most key measure, as it measures when customers actually explicitly share with others that they have purchased a product, and may have posted an opinion, influencing others.
6. Referral Activity – The absolute measure if a single individual or community has caused others to buy.
The 6 attributes require modification and customization for each company, as different verticals have higher rates of customer social activity. Read his entire article Enhancing Net Promoter Score (NPS) with Total Social Customer Value (TSCV) towards the matrix in detail.
To define how measurement of customer satisfaction, influence and advocacy have changed due to the social web is challenging, since there are many different factors and elements, to see the final correct results, all the single elements must have their importance relative to the others.
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