Posts Tagged ‘customer profiles’

A Social Enterprise view on Klout

Posted on: January 3rd, 2012 by Fransgaard 15 Comments

This article is the first in a series of blog posts I will be writing on The Social Enterprise here as well as on the Capgemini technology blog Capping IT Off.

The blog battles of Klout is raging on and probably will continue into 2012. But as I have written before I think a lot of people are making the situation much worse, or better, than it is and I think it is because many digital professionals, being social media users themselves, think of social media as a user would rather than a business.

First impressions last

We are all judged from the moment we meet somebody else. What we say, what we look like and how we behave.

We are also measured by companies wanting our customs but using different parameters: The spending power we have, how loyal we are, how well we fit with a specific brand vision and our ability to influence others. The information helps determine who are more valuable and even who should be given special VIP treatments.

As we, the customers, moved online business adjusted these parameters to fit new data such as online behaviour, site loyalty and digital contact opportunities. All this data helps companies understand our needs. No point selling a electrified cow fence to a would-be Britpop star living in the heart of Camden Town, London.

The importance of social customer relationships

With the dawn of social media knowing customers is even more important to be able to provide that elusive personalised service. Social networks also brought a whole new world of influence created instantly from previously unknown sources. Social media allows a girl named Juicystar07 to suddenly can gain millions views simply by voicing her opinion on fashion on YouTube.

How can businesses spot those customers who are influential in the digital social sphere? While not perfect, services like Klout provide measurable and comparable data that can hint to customers’ influential powers online.

Social CRM: The multi-faceted customer profile

But CRM professionals are not stupid. They understand the limitations of Klout and they know better than anyone to interpret a multi-faceted customer profile.

Let’s look at the customers Eva and Paul:

  • Eva’s profile was created in June 2008.
  • Since then she has spend an average of £263 a month.
  • Her husband and oldest son are both registered customers as well.
  • Her Klout is 14.
  • Paul’s profile was created March 2011 when he made his first (and so far only) purchase of £14.99.
  • No other customer profile is attached to Paul’s profile.
  • His Klout is 43.

Apply common sense and Eva stands out as the better customer. Paul’s significantly higher Klout is only a single facet of the complete customer profile which overall is in Eva’s favour.

But if we amend the profiles, things look different:

  • Eva’s profile was created in June 2008.
  • Since then she has spend an average of £263 a month.
  • Her husband and oldest son are both registered customers as well.
  • Her Klout is 14.
  • Paul’s profile was created March 2011.
  • Since then he has spend an average of £98 a month.
  • No other customer profile is attached to Paul’s profile.
  • His Klout is 68.

Suddenly the profiles are much closer in value greatly helped by the Paul’s Klout score.

What do you think?

The above is not theory. In 2011 digital monitoring tool Radian6 teamed up with Klout to incorporate the ability to measure using Klout scores and Radian6 is owned by SalesForce who is a market leader in cloud-based CRM tools.

What are your thoughts on Klout and Social CRM? Can companies really afford not to consider measurement tools such as Klout when creating customer profiles?