CRM - February 2008 - (Page 30)

THE DIGITAL CLIENT 53 years old, anyway—and unless AAA intends to go into the retirement-home business, the time has come to reach out to a younger generation. While most of us know AAA as “the tow-truck company”—which is still the principal reason members join—times have changed: The company has acknowledged the need to move away from tra- SOCIAL MEDIA WILL TRANSFORM EVERY INTERACTION A COMPANY HAS—NOT JUST WITH CUSTOMERS, BUT WITH EMPLOYEES, PARTNERS, AND SUPPLIERS AS WELL. ditional marketing techniques to begin experimenting with new and innovative ones—including social networking and user-driven content (known as “member communities” in AAA parlance). In 2005, AAA Southern New England, a regional AAA unit based out of Rhode Island, launched the INsider program, a marketing promotion targeted at 13-to16-year-olds, and designed to increase teenagers’ awareness of the benefits of AAA membership. The program is marketed through various channels, and communicates information on a regular basis through direct mail, Web pages, email messages, a quarterly newsletter—and on a soon-to-be-announced AAA-member community where members can share their user-driven content with other members and non-members. Participants receive a membership card providing numerous benefits, such as discounted admission to amusement parks, movies, and sporting events. Additional benefits include automatic entry for sweepstakes and raffle prizes, along with free driver-education information. AAA Southern New England has committed to spending five times as much of its marketing budget on the teenage population as it did 20 years ago. The executive team feels confident that the increase will be more than offset by additional AAA memberships and long-term revenues. And so far the results look bright: Spending by INsiders at AAA Southern New England branches is up tenfold over the past two years and annual spending by INsider parents rose more than 15 percent in each of the past two years. The Dos and Don’ts of Web 2.0 W ith the understanding that mastering Web 2.0 capabilities is no easy task, we’ve put together 10 steps that will help you create your business-in- an-instant, digital-client roadmap. (This is an expanded version of the list that appeared in “Web 2.0 and the Digital Client,” November 2007, page 8.) • Immerse yourself in the Web 2.0 culture to understand it. Learn about search-engine marketing and optimization, investigate blogging and other social networking techniques, or hire a professional to ensure that your blog/social network site is compliant, catchy, and fun. • Ramp up your knowledge of social networking through participation. Join a few social networks, create a blog, start downloading podcasts, or have fun producing your own online videos. • Track developments outside of your industry. Study new Web 2.0 companies such as Yellowikis, a Wikipedia-like site for open business listings. This new site has the potential to shake up the $22 billion Yellow Pages industry. • Conduct research regarding clients’ Web 2.0 desires. Are they digital clients? What Web 2.0 applications are they interested in? What is their profile? What do you need to do to keep them as customers? • Understand executive tolerance. Each company’s executive tolerance for Web 2.0 technologies will differ. Figure out the best way to secure approval for potentially disruptive behavior brought on by Web 2.0 technologies. The BT Group case study mentioned in this feature is a good read: Securing Web 2.0 acceptance within BT’s executive ranks was not easy. • Consider partnering with or purchasing a Web 2.0 company in your industry. This may make better sense to jump-start your efforts and secure executive approval. • Ensure that all information is accessible via mobile devices. Mobile devices are central to the digital client’s lifestyle. • Hire Generation Y employees (and put at least one on your Board of Directors). This will help propel digital-client, business-in-an-instant thinking. • Don’t neglect security. Many of the technologies are new and not necessarily proven. Be sure to have a well-thought-out Web 2.0 security plan. • Carefully protect the brand. Good information travels fast on the Internet; bad information travels faster. So you’ve got to be careful and protect the brand as you expand your Web 2.0 efforts. If, for example, a social networking experiment does not work out for your organization, you must know when and how best to pull the plug so as to minimize any damage to the long-term value of your brand. ALWAYS ON, ALWAYS CONNECTED— AND ALWAYS MARKETING Over the next decade, as the always-on, always-connected digital clients join the workforce, individual interconnectivity will blossom, and self-publishing will explode both inside and outside the workplace. The impact of social networking on business, particularly marketing, will be tremendous, offering entirely new branding opportunities. Marketers will www.destinationCRM.com 30 CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2008 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2008

CRM - February 2008 Contents Front Office Reality Check Customer Centricity The Tipping Point The Loyalty Riddle CRM Drives Down-Market Out of the Gate: Marketers Rate ’08 Traits The Pulse Consultants Adapt to CRM’s Changing Landscape Required Reading Cover Story: CRM Gets Serious Contact Center Solutions Always On Rumble in the Office The Smallest Slice Tying Up Cable’s Loose Ends Burning Up the Paper Trail Sunny Skies for Knology No More Bumps for BlueRoads Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2008

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