Page 239 - Introduction to Electronic Commerce and Social Commerce

Case 7.2: EC Application: iRobot Uses Social Media for Multichannel CRM 223

Figure 7.3 The elements of Characteristics
social CRM
Social
Customer Drives Social Networks, Environment
New Communication Listening Tools
Channels Interacts with
Like-Minded
Peers
Social
Customer Creates
Product Reviews, Customer
Rankings, Blog Spots, Trusts Advice
Other Content of Peers,
Other Customers
Customer Needs,
Expectations
Customer Controls
Process
Two-Way
Communication
With Vendors

Vendors, Social Social
Employers CRM CRM Media

Social CRM offers the following potential benefits to cus-
tomers (“c”) and enterprise (“e”): • Decreases overall customer care costs (e.g., through
Note: Several of these are illustrated in Case 7.2 (iRobot, self-helping communities) (e).
presented later in this chapter). These benefits to iRobot are • Enables salespeople to find sales leads quickly and
marked with an [i]. easily (e).
For additional benefits, see Fagan (2014). • Develops new revenue opportunities and turns new
customers into repeat customers (c).
• Increases CRM staff productivity by teaching them
• Drives quick resolution of customers’ problems (c). to use analytics and collaboration 2.0 techniques (e).
• Provides for effective and efficient business- customer
• Improves employee performance by benefiting from
collaboration (c), (e). knowledge sharing gained in social networks (e).
• Improves the reputation of companies (e), (i).
• Improves customer satisfaction by providing them
• Provides better understanding of customer needs with opportunities for engagement using social media
and wants (e).
platforms (c), (i).
• Provides focused, intuitive, and easy-to-use CRM • Converts leads to opportunities with more effective
applications (e).
campaigns (e).
• Provides better marketing, better targeting, and
improved products/services due to customers’ cre-
ation of content, and WOM (e).
• Provides customer input for market research at a
quicker rate and at a low cost for improving prod-
ucts and customer service (e). CASE 7.2: EC APPLICATION
• Provides customers with more information about iROBOT USES SOCIAL MEDIA
products/services quickly (c), (i). FOR MULTICHANNEL CRM
• Increases trust and loyalty (e).
• Provides a more complete view of the customer than iRobot (irobot.com), which was founded in 1990 by three
what traditional CRM can provide (e). roboticists at MIT with the vision of making practical robots a
reality, designs and builds some of the world’s most important