Skip to main content

Emotional CRM

CRM as we know it is a glass half full. It assumes that consumers only have a rational relationship with brands. CRM software tends to segment and contact customers based on their purchase behavior. The reality is that feeling comes first. Emotions tend to lead to actions while reason leads to conclusion. So, why not fill the other half of the glass with emotion? Can we humanize CRM to have a more emotional relationship with customers?

Social network platforms and web 2.0 technology have opened the door to this possibility. Consumers are broadcasting their feeling every day through Facebook, YouTube and Twitter. We are living in a naked society where the lines between online and offline expression are blurring. Brands can assess consumers’ emotional states based on their online social behavior and anticipate the link to purchase behavior.

To see how this works, let start with the basics. According to Dan Hill's Emotionomics, there are 7 core emotions that can be grouped in three categories at a high level: positive (happiness), neutral (surprise) and negative (fear, anger, sadness, disgust and contempt). Based on consumers’ posts online, brands can assess consumers’ emotion and link that emotion to behavior. Building on Hill's framework, let’s look at few examples to see how this works in practice.

Positive: A consumer who is happy with a service tends to have a higher risk tolerance at a lower reward. She is likely to make a quick decision. Brands can use this information to cross-sell other solutions.

Neutral: A consumer in a surprised state of mind doesn’t know what to expect between reward or punishment. She is likely to be cautious in her purchase decisions. Brands might want to focus on education rather than selling to gain their trust.

Negative: A consumer in fear tends to have a low risk and reward tolerance. Fear is considered the most important emotion. Fears have been played on prominently in the political sphere, including George W. Bush’s “War on terrorism” or Kennedy’s “Cuban Missile crisis”. Brands can use fear to offer safety (e.g., warranty services).

In summary, social network platforms and new technologies have opened the door for brands to humanize their relationship with consumers. A more human relationship is not only good for business but also for consumers. Brands should look for innovative ways to transform social data into emotional insights that can be put into action.

Comments

  1. I always thought that marketing and customer relationship management should incorporate more human emotion into them, more psychology. We can use these insights into consumers' emotions to sympathize, congratulate, reinforce, or use other actions to get more involved with them. It may have to be a subtle response though, because after all, it is a brand and not their psychologist

    ReplyDelete
  2. Alberto, you are right on target with your comments. This is a brilliant layer we should be including in the way we craft our communications. As you point out, the trick will be finding ways to transform that social data into insight that we can put into action. Right now, too much of what we do, especially for very large clients, is based on general information. We know some consumers are unhappy with our client's products, but we don't necessarily know why? Others are very happy and we don't necessarily know why in that case either. People are letting the world know what they think about the products they use, we just have to find a way to harvest that information - and use it to guide creative.

    ReplyDelete

Post a Comment

Popular posts from this blog

How Cool Brands Stay Hot: Aim for Love, Not Likes

Love is an unconditional emotion while like is a more watered-down version of love. Loving someone means that he or she means everything to you while liking someone implies that you are only happy being with that person. Love involves deeper, stronger emotions, while like is more of a tender feeling towards that special someone. In a world of infinite choices, love is everything. Like is a nice to have.  Today, we live in a world of abundance, where people intent to create content surpass their time to consume it. Video content is much easier and cheaper to produce than at any other time in history. YouTube sees 400 hours of video uploaded every minute. Facebook has more than 250,000 status updates in the same span. We could never read and see everything online.  With unlimited possibilities and limited time, we pay sustainable attention to what we love and divided attention to what we like. We spend hours watching Homeland and give our divided attention to our news feed on Facebook. …

Adidas kills TV. Now, let’s debate

The News: Adidas is ditching TV for digital. The company is looking to boost its e-commerce revenues from $1.06 billion in 2016 to $4.25 billion by 2020 — and Adidas wants to use digital channels to get there. The Rationale: Fish where the fish are. Younger consumers don't watch TV anymore. They spend most of their time on their mobile devices. The Controversy: Why do they want to ditch a medium that is allegedly more "critical" to the brand and that generates more sales than digital? Here we have the Debate between TV and digital: Media Consumption TV: People are watching TV now more than ever.  Digital: People are consuming media more than ever, but mostly through digital devices. The Fact: In 2017, people are projected to spend 6 hours on digital – with the majority being mobile devices - while only spending 4 hours consuming television according to the eMarketer forecast. Younger viewers watch 2.5 times more internet video than TV. Consumers aged 13-24 watch 12.1 hours …

Winter and Summer in Adland

It is winter in Adland.  We have moved from a world of scarcity to a world of abundance and algorithms.  We have lost the power of influence. Trust has been severely damaged.  Consumer attention is the new bottleneck. We no longer decide who sees us. Instead, we get picked.  30 second is not enough anymore. We need to take consumers through a scenic journey to create a long lasting relationship.  Everyone is a publisher. It is easier than ever to create, but harder than ever to make a hit.  The impulse to make has far outrun the desire to consume.  New forces have emerged in the form of sophisticated algorithms.  A new model has surfaced called "pay per play,” which scored everything we do on relevance to feeding the machine. It decides what gets picked, when, and where, based on extreme relevancy.  Mass media has vanished. Precision and personalization have emerged.  It is winter in Adland. The good days are all long gone.  It is Summer in Adland We now have the power to make bra…