University of Cape Town seminar speech on digital marketing and how to align with mobile marketing. Highlight the role of mobile CRM and some thoughts on the future of CRM by Jari Salo professor of digital business and marketing

1. Aligning digital marketing with CRM
Jari Salo,
Professor of Marketing
Adjunct Professor (Aalto University School of Business)
Associate Editor of Journal of Information Technology Research
Oulu Business School
University of Oulu
Department of Marketing
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

2. Research:
• Industrial marketing (innovation, services, relationships,
digitization)
• Digital retailing (Facebook in clothing retail, FB addiction)
• Role of technology in marketing (e.g. avatar creation, virtual
world spending behavior, mobile advertising)
• Advertising and branding (industrial/digital context)
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

3. Company references
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

4. Agenda
• Digital Marketing Framework
• Customer Relationship Management
• Mobile Customer Relationship Management
• Future of Customer Relationship Management
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

5. Digital Marketing Introduction and
Framework
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

6. A working definition for digital
marketing
• Digital marketing aims at creating, demonstrating, documenting,
communicating and delivering value in digitized way to customers (B2C
and B2B) and for managing customer relationships in ways that enhance
digital joint value creation of customers, organizations and stakeholders.
(Journal of Digital Marketing)

7. Digital marketing landscape

8. Source:
http://internetiseverywhere.wordpress.com/2011/04/09/i
nternet-web-2-0

9. Why DM?
• Business to consumer marketing has exploded in recent years
(use of Facebook, Instagram, Pinterest, Twitter + measuring
compelling customer experience)
• BUT… even professional buyers have used and are using digital
tools e.g. social media in their daily job – even more than the
industrial sellers (see Davis, 2008).
• 65 % out of 1000 buyers operating in B2B markets tell that they
start search process (new, rebuy, modified buy) with general
search engines and after that move to industry specific search
engines like business.com

10. Most popular DM tools today in Finnish
companies?
Most popular DM tools used in Finnish companies:
• Company website
• Search engine optimization and advertising = SEM
• Newsletters and internet advertising
• Social media rising fast
Reasons that have influenced to adopt DM:
• Cost pressure
• Chancing consumer/customer behavior
More than 33 % of the Finnish companies that responded have
allocated a budget for DM
(AaltoEE:Divia report, 2014)

11. Digital Marketing Framework
CRM
SCM
INNOVATION & NPD
Online metrics
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
Business
Strategy
Customer
Strategy
Value
creation
Value co-creation
Value capture
Performance
assesment
process
a) Shareholder
results
b)
Performance
measuring
c) KPI
Multichannel
integration
-FB, Instagram
Twitter
-YouTube
-Email &
newsletters
-Company
websites
SEO/SEA…
Web advertising
-Blogs, pods, -
Vpods, webcasts
-Mashups, widgets
-Location based
services
e.g. tablet
computers
Information systems
- Data storaging & mining
- Front & back office applications
- Big data and cloud applications
Salo ©

12. Customer Relationship Management
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

13. Context for relationships
• There are different ways to organize exchange
• Main interest of marketing is in exchange behavior
• Exchange can occur in industrial/business markets or in consumer
markets which both can be jointly labeled customer markets
• Exchange can be organized in two opposite ways that are market
(transactions) or hierarchy (within a company)
• However, mostly exchange occurs in quasi-forms between markets
and hierarchies
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

14. Shift in marketing paradigm
Transaction marketing
• Focus on a single sale
• Orientation on product features
• Short time-scale
• Little emphasis on customer
service
• Limited customer commitment
• Moderate customer contact
• Quality is primarily a concern of
customer
Relationship marketing
• Focus on customer retention
• Orientation to customer values
• Long time-scale
• High customer service emphasis
• High customer contact
• Quality is the concern of all
Zineldin, 2000

15. The relationship continuum
Day, 2000

16. The relationship continuum
Day, 2000

17. Markets-relating capability
Day, 2000

18. CRM
• CRM is the outcome of the continuing evolution and integration of marketing
ideas and newly available data, technologies, and organizational forms.
CRM
• relates to strategy
• the management of the dual creation of value
• the intelligent use of data and technology
• the acquisition of customer knowledge
• the diffusion of this knowledge to the appropriate stakeholders
• the development of appropriate (long-term) relationships with specific
customers and/or customer groups
• and the integration of processes across the many areas of the firm and
across the network of firms that collaborate to generate customer value
Boulding et al., 2005 JM

19. Managing customers for profit
Kumar, 2008
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

20. To reiterate - So what is CRM about ?
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

21. One definition for CRM
• CRM is a strategic approach that is concerned with creating improved
shareholder value through the development of appropriate relationships with
key customers and customer segments. CRM unites the potential of
relationship marketing strategies and IT to create profitable, long-term
relationships with customers and other key stakeholders. CRM provides
enhanced opportunities to use data and information to both understand
customers and co-create value with them. This requires a cross-functional
integration of processes, people, operations, and marketing capabilities that
is enabled through information, technology, and applications.
Payne and Frow (2005)
JM

22. Mobile Customer Relationship
Management
-Developing database
-Initiating mobile CRM
- Using mobile for CRM purposes
-Examples of mCRM
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

23. CRM, database development
Seven steps to develop a customer database
1. Define the database functions
2. Define the information requirements
3. Identify the information sources
4. Select the database technology and hardware platform
5. Build applications to access and process information
6. Populate the database
7. Maintain the database

24. Developing a customer database
On-going One-off
Maintain the
Database
Select the Database
Technology and
Hardware Platform
Populate the Database
Build Applications
to Access and
Process Information
Identify the
Information Sources
Define the
Database Functions
Define the
Information
Requirements
O´Connor & Galvin, 2001

25. Basic outlay of a customer
database
Customer
Database
- Customers
- Suspects
- Prospects
Planning Systems
Financial Systems
Sales Systems
Customer Service
Systems
Marketing Systems
From Analytical to Operational

26. A simple mCRM system
Sinisalo et al., 2005

27. mCRM frame
•CRM System •Mobile Devices
•Server •Number •Gateways •Campaign logic •Billing
•Media mix •Permission Database
•Regulatory
•Consumer Acceptance
•Mobile Infrastructure
•Technology
•Marketing
•Marketing Enviroment
(Sinisalo et al., 2005)

28. mCRM
•mCRM is defined as an application of CRM system,
which utilizes any form of marketing, advertising, or sales
promotion activity aiming at building and maintaining a
profit-maximizing portfolio of customer relationships by
taking advantage of the mobile channel.
Sinisalo et al., 2005

29. Mobile marketing
• Mobile Marketing Association (2009): Mobile marketing is the
use of wireless media in the delivery of integrated content and
as a direct response vehicle in integrated media campaign or in
marketing communication campaigns
• Mobile advertising refers to a form of advertising in which
advertiser communicates with the target group via a mobile
device
• Mobile media refers to portable devices and services

30. Mobile marketing process
Salo et al., 2008

31. Salo & Karjaluoto, 2007
Why mobile medium is effective ?

32. Location based mobile marketing
Salo & Tähtinen, 2004

33. Context / location awereness
• Apple's iBeacon technology - in-store
Bluetooth location trackers designed to
interact with smartphones - enables
retailers and app publishers to identify
people individually the moment they
enter a shop
• iBeacon available with many vendors
• Similar to iJack service developed by
TeliaSonera in early 2000 which they
abandoned in 2004
Sales/deals
80%
Content relevant to interest/
Location 62%
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi
Swirl 2013

34. Future of Customer Relationship
Management
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

35. Future areas
• Instead of CRM – Customer experience
management (CEM)
• Social CRM for customer insight
• Social login for retailing
• Linking big data insights to CRM
• Cloud / open CRM
• Mobile – location specific and real time CRM
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

36. References
Tähtinen, J. & Salo, J. (2004). Special Features of Mobile Advertising and their
Utilization. Proceedings (CD-ROM) of the 33rd European Marketing Academy
(EMAC) conference Worldwide marketing, Murcia, Spain. May 18th-21st, 2004,
p.1-8.
Sinisalo, J., Salo, J., Karjaluoto, H. and Leppäniemi. M. (2007). Mobile Customer
Relationship Management – Underlying Issues and Challenges. Business
Process Management Journal, 13, (6), 771-787, ABDC B).
Salo, J. and Karjaluoto, H. (2007). Mobile games as an advertising medium:
towards a new research agenda. The International Research Journal Innovative
Marketing, 3, (1), 72-83.
Salo, J., Sinisalo, J. and Karjaluoto, H. (2008). Intentionally Developed Business
Network for Mobile Marketing: A Case Study from Finland. Journal of Business
& Industrial Marketing, 23, (7), 497-506. (SSCI 0.53 impact, ABDC A).
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

37. jari.salo@oulu.fi
jari.salo@aalto.fi
Comments?
Questions?
P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi