1. Social CRM in the Financial Sector
> A Framework for Swiss Banking
12/06/27
Natalie Huong
2. “Markets are conversations”
The Cluetrain Manifesto (Levine et al. 2001)
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3. Swiss Banking Sector > Challenges
§ Loss in loyalty and trust
§ The new generation customer
§ Competitive strategy
§ Decreasing entry barriers
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4. Theory Design Analysis Results Conclusion
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
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5. Theory Design Analysis Results Conclusion
Theory Maturity layers of social CRM
(Faase, Helms, and Spruit 2011)
Customer retention & involvement
Customer engagement
Customer management
Information
Infrastructure
creates
Social
Social Media Traditional CRM
constitutes CRM emerges to
impacts
Presence
Relation-
Sharing
Value chain Marketing
enhances
ships
Identity
Conver- Repu-
Sales
sations tation
Groups Service
Social Media experiences CRM focus
(Kietzmann, et al, 2011) Swiss Banking Sector (Greenberg 2009)
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6. Theory Design Analysis Results Conclusion
Theory > Research Question
How can Social CRM add Value in the Swiss Banking Sector?
Social media platforms Enterprise Communication Customer Financial Sector
Risks
Regulations
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7. Theory Design Analysis Results Conclusion
Research Design
Scope Variables Sample
Swiss Banking Sector Social Media CRM Social CRM Platforms Banks
Data collection
Expert Interviews Multiple Case Studies Desk Research
Data analysis
Case analysis Research Data
iteration
Case comparison
enfolding
Theory generation
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8. Theory Design Analysis Results Conclusion
Design> Variables and Framework
S o c i a l C R M d o mee n o ipoi n s
c i r ts c
Marketing Sales Service
Know- Branding PR Pre-sales Sales After- Support Feed- Improve-
ledge sales back ment
Corporate
Enterprise Social Web
Enterprise
Leadership
Corporate
l e ve l s
Employee
Customer
Executive
Community
I n t e ra c t i o n
Social web
Target groups
Target groups
Employee
Customer
Community
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9. Theory Design Analysis Results Conclusion
Design> Sample
Social CRM dimensions
Marketing Sales Service
Know- Branding PR Pre-sales Sales After- Support Feed- Improve-
ledge sales back ment
Corporate
Enterprise
Leadership
l e ve l s
Employee
Community
I n t e ra c t i o n
Social web
Target groups
Customer
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10. Theory Design Analysis Results Conclusion
Design > Sample > Classification of Social Media Platforms
Social presence / Media richness
Low Medium High
Blogs Social networking sites Virtual social worlds
S e l f- p re s e nt at i o n
High
Collaborative projects Content communities Virtual game worlds
Low
Own illustration according to Kaplan and Haenlein (2010)
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11. Theory Design Analysis Results Conclusion
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
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12. Theory Design Analysis Results Conclusion
Results > Social networking sites> Field of application
Arguments
Knowledge + + ++ Info on company, products services
Marketing
Branding ++ + 0 Raise brand awareness and reputation
Public Relations ++ 0 ++ Customer experience,> Customer and engagement
experience acquisition engagement
Presales ++ 0 ++ Dialogue +support > Increase loyalty > customer acquisition
Sales
Sales - - ++ Online community is more secure than networks
Aftersales ++ - ++ Provide cross- and up-selling opportunities opportunities
Real time interaction > cross- and up-selling
Support + - ++ Increase customer lifetime value and engagement
Service
Feedback + - ++ Reach and visibility, customer retention and engagement
Improvement 0 - ++ Feedback Product improvement and product design
++ best fit + suitable 0 less suitable - not suitable
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13. Theory Design Analysis Results Conclusion
Results > Social networking sites > Social CRM framework
Social CRM dimensions
Marketing Sales Service
Improvement
Knowledge
Aftersales
Feedback
Branding
Presales
Support
Sales
PR
Corporate
Enterprise
Leadership
Assumption 1 Correlation between confidentiality and security
l e ve l s
Assumption 2 Correlation between complexity and interactivity
Employee
Assumption 3 Communication is most efficient on equal level
I n t e ra c t i o n
Community
Social web
Target groups
Customer
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14. Theory Design Analysis Results Conclusion
Results > Consolidated Social CRM Framework
CRM dimensions
Marketing Sales Service
Improvement
Knowledge
After-sales
Feedback
Branding
Pre-sales
Support
Sales
PR
Corporate
Enterprise
Leadership
Levels of interaction
Employee
Community
Social web
Target groups
Customer
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15. Theory Design Analysis Results Conclusion
Conclusion> Implications for management
§ 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.
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16. Theory Design Analysis Results Conclusion
Conclusion> Filling the gap
How can Social CRM add Value in the Swiss Banking Sector?
Banking value chain
Social CRM framework Platform Social CRM dimensions
... ......
Level of interaction Conversation
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.
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17. Theory Design Analysis Results Conclusion
Conclusions> Limitations and Future Work
Limitations
• 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
Fu t u re Wo r k
• 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)
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18. Theory Design Analysis Results Conclusion
Conclusions> The Bottom Line
“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)
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19. Theory Design Analysis Results Conclusion
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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