Apr 20, 2010

Building relationships Vs Making Transactions

Experience, whether spiritual, physical, mental or emotional refers to a know-how or knowledge respectively. We all know it and recognize it, especially if you are a human resources specialist, where “experience” wins it all…
Let us reside outside our personal and professional resume to reach out to a different perspective: Consumer Experience!









Introduced in 1998 by Pine and Gilmore in their 1998 Harvard Business Review art, Consumer experience is when successful businesses influence people through engaging, authentic experiences that render personal value (Pine and Gilmore 1998). From businesses end, engaging with consumers’ personal values builds relationships and as a result upgrading them from satisfied to loyal ones-customers satisfaction is essential to do business; whereas loyalty is essential to sustain profitability and growth. But what about the other end, like seriously how many times you were kept on hold or stood in the queue that led to dead ends as simple as that. But to be fair, let’s think of the times we felt like premium customers or enjoyed a 1st class engagement with organizations, therefore, meeting our expectations.

The reality is that consumer experience equals expectations, whether it is online or offline. Being a business or a consumer means that you are either creating a sustainable competitive edge or making informed choices regarding the services or brands you are consuming. Both ends strive to meet the expectations, one as a provider the other as a consumer.

Online consumer experience

As companies are increasingly engaging with consumers online, professionals are more and more thinking about how to build successful online consumer experiences through social media marketing campaigns.

In a more interactive and dynamic digital world, the equation would be as follows: organizations and their need to embrace the “Web 2.0” dynamic tools and adapt to the powerful impact of the social media landscape to generate sales or to build successful consumer experiences.

More and more, marketing managers need to shepherd Web 2.0 strategies and techniques as part of their marketing plans, simply because consumers are going online so needless to say that businesses need to get out there utilize those powerful tools and create the “Buzz”.

When we discuss online consumer experience provided by businesses through social networking, it is of importance to keep in mind that it helps striving organizations increase their sales opportunities, build successful relationships with their networks’ followers and members AKA consumers.

Well it all comes down to this: Living in the information age and having the skill and knowledge to interact with “others” through means of "digital" tools, means that to target digital citizens living in a cyber world businesses need to use online communities such as social networking sites, blogs and any other online user generated media for marketing and building successful experiences for their “followers” .

This hinders social media marketing as a tool to build relations ships with prospects. In other words, social media marketing is all about having conversations regarding consumers’ expectations, adding more value to the brand, announcing new offers, ultimately generating leads and building relationships.

BUT, is this entire “buzz” about the social media marketing worth companies efforts?
For companies it might be about answering the following:

1- Are your targeted customers online? If yes, do their online experiences have anything to do with what you’re promoting?

2- Building relationships with you “Followers & Members” is great, but what does really influence them to do the transactions?

From a marketing perspective, companies should provide successful customers experiences whether online or offline. Needless to say that building relationships with online customers can be of great benefit to businesses, giving them an insight into their customers’ trends and expectations.
Simply speaking, any business jumping into the social media marketing channels need to have a clear vision and strategy on how to engage is their “Followers & Members”. Because leveraging communication channels is something and making the transactions is another.

BUT, how efficient would all this be, in terms of generating revenues and direct business value?