Merging Experiential and Relational approaches

Josep Alet
President Marketingcom

Main points

1. Relationship Marketing contains ECM 2. Main differences between RM and CEM 3. Main contributions of CEM to RM 4. Some thoughts about customer, experiences and relationships

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Relationship Marketing contains CEM

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1.1

RM integrates CEM from a strategic framework

1. RM exist within a global marketing philosophy wit a broad perspective from strategy to detail in action 2. RM integrates the different stakeholders more than the customer, although it is the main one. 3. LTV is the main indicator that drives action from a long vision, considering inputs of sales, margin and the loyalty 4. CEM is in a more operational level and its temporal focus is shorter. The centre of its attention is in the contacts in each channel and how the customer perceives the quality of services.
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1.2

RM coincides with CEM

1. The customer is the subject of interest and who really acts 2. The real value delivered is what really matters and not the product or service per se 3. Interaction between stakeholders and the firm is key and each touch point must be integrated into a subset of interactions and in the whole relationship

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1.2

RM integrates CEM from a strategic framework

Source: Paul Greenberg, CRM at the speed of light, page 30.

As in this figure is shown, relationship marketing integrates strategy, customer intelligence, the technology to enable the customer process and the interaction management to improve the customer experience
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Main differences between relationship marketing and customer experience management

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2.

Main differences are in emphasis, not in essence

RM Stakeholders Strategic Manage customers Customer life cycle More rational, thoughts LTV, loyalty Internal metrics Customer data base Customer Insight Customer community Customer - Firm CEM Customers Operational Customers manage Interactions More emotional, feelings Brand experience External perceptions Scenario design Results / expectations Employees customers Channels

Criteria Subjects Focus Focus 2 Phases Key criteria Mainstay Metrics

Diagnosis Source

Key area Relationship focus

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Main contributions of CEM to RM

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3.1

Main contributions of CEM to RM

1. Scenario design:
1. how interaction well designed improves efficiency, sales and loyalty from a transaction within a relationship point of view.

2. Brand experience:
1. customers and brands are the source and end of transactions and relationships. The brand mirrors the customer from identity to image. 2. different senses participate in the buying and use process affecting clearly in satisfaction and value perceived and, therefore, loyalty.

3. Social interaction:
1. experiences and relationships are lived within a social framework that influences the buying process and the outcomes from it. Dime con quien vas y te dir quien eres 2. sometimes is the experience the key issue in the consumption process and the driver of the relationship:
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1. Harley Davidson, Starbucks

3.2. CEM enriches the value and comprehension of interactions in the relationship
Experiential marketing offers a higher insight in how the customer lives the interactions It has integrated the different human senses in the perception It has developed the integration of the emotional side of perceptions with feelings and personal attitudes, Driving the co-creation side in the customer firm relationship From the well known brand experience term that translates the attributes of the brand through any detail in the interaction with the customer

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3.2. CEM enriches the value and comprehension of interactions in the relationship
You

Your customer Your competitor

Source Navision

Your problem

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Relationship Marketing -and specially CRM - have given too much emphasis on managing customers, when it has to be considered that its the customer who really decides with whom wants a relationship. June, 13th, 2006

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Some thoughts about customer, experiences and relationships

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Customers are not targets

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Un reality with two very different perceptions

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One example from Spain: Which is the brand that better understands the youth
MARCA DE REFRESCOS QUE MEJOR ENTIENDE A LA JUVENTUD(I)
P.4. Cul es la marca de bebidas refrescantes que mejor entiende a la juventud actual?

78% 6% 6% 4% 3%
Base total: 393 10

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Personal communication is fully possible and relevant..

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...but relevancy can not play with the high sensibility on privacy issues

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Each contact must have the opportunity to show that we care and listen although sometimes...

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Procter case of a real dialog

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The real relationship with a mutual desire and common experience is what we must look for
You

Your customer Your Competitor

Source Navision

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