At this point, student are typically recognizing that marketing practice is much more complicated and sophisticated than they originally thought -- MUCH more than sales and advertising! How long-term consumer retail marketing success is achieved is largely through consumer psychology.This observation is particularly true through the lens of SDL theory and practice (e.g., value co-creation through value-in-use). In order the start understanding basic consumer psychology in retail practices, we can begin by starting to achieve a better understanding of how customer relationshionship management is related to customer engagement and personalization in marketing practices.
Forrester Research (November 25, 2014) predicts the growing influence of preference-driven customer personalization in 2015 (please click here for the article). This prediction reconciles with data on loyalty-driven shopping behaviors during the 2014 holiday shopping season (please click here for the article). Understanding the theoretical relationships between personalization, consumer engagement, and customer relationship management is requisite to effective consumer retail marketing strategy and practice today. Consequently, this case focuses heavily on consumer engagement and its consequent effect on marketing outcomes, particularly relationship outcomes (e.g., consumer loyalty).
An essential component of the critical thinking approach adopted herein is the need for data to support premises developed as part of students' arguments. One hand free online site for data related to digital marketing trends can be found at eMarketer.com. Please bookmark the following page for future reference as you undertake the exercises in this case: http://www.emarketer.com/Corporate/Coverage#/.
An Overview of CRM and Customer Engagement from IBM's Perspective
We begin by looking at these concepts through the eyes of IBM, and how these concepts are driving both the new customer experience as well as the software marketers are using to manage and influence customer behaviors (see the video below).
We next consider an overview of CRM and customer engagement marketing practices from Kevin Bishop, Vice President & General Manager of IBM's Experience One initiative (see http://www-01.ibm.com/software/marketing-solutions/experienceone/). His perspective is particularly insightful as IBM solutions are part of the marketing strategy for over 8,000 brands today!
Best Buy's Perspective of CRM
The strategic marketing managers at Best Buy are well aware of these relationships. This section presents how Best Buy views customer relationship management (CRM) associated with its retail practices. This next video presents Best Buy's general perspective on consumer relationship management.
T he Concept of Consumer Engagement
We specifically explore the concept of "consumer engagement" as a key foundation in CRM strategy and practice. We begin this exploration by reviewing the most current academic marketing thought about consumer engagement in terms of how the concept is best defined. We then discuss how consumer engagement links the minds of consumers to behaviors with desirable (or undesirable) marketing outcomes. Please click here for the pdf file containing this literature review in critical thinking format . Fair warning, there is a lot of evidence emerging helping us to better understand these issues. It will be imperative that you consider this academic evidence in your own critical thinking-related arguments concerning how Best Buy should approach issues related to consumer engagement in their future retailing strategies and tactics.
Personalization as the Basis for CRM Strategy and Practice -- Reconciling with SDL
The basic underlying strategic marketing principle underlying how consumer engagement ultimately influences consumer loyalty relates to the concept of "personalization."
Please click here for an abbreviated literature review of the marketing literature related to the development of the concept of "consumer personalization." Unfortunately, there is recent evidence presented by eMarketer.com suggesting that marketers still have yet to master personalization in marketing practice (see http://www.emarketer.com/Article/Why-Marketers-Still-Havent-Mastered-Personalization/1011220). Fair warning, there is a lot of evidence emerging helping us to better understand these issues. It will be imperative that you consider this academic evidence in your own critical thinking-related arguments concerning how Best Buy should approach issues related to consumer engagement in their future retailing strategies and tactics.
This next video presents Best Buy's perspective on consumer personalization.