Download social crm and digital marketing communication in b2b relationships

UNIVERSITY OF JYVÄSKYLÄ
School of Business and Economics
SOCIAL CRM AND DIGITAL MARKETING
COMMUNICATION IN B2B RELATIONSHIPS
Marketing
Master’s Thesis
December 2011
Author: Marjo Himanen
Instructor: Heikki Karjaluoto
JYVÄSKYLÄ UNIVERSITY SCHOOL OF BUSINESS AND ECONOMICS
Author
Marjo Himanen
Thesis Title
Social CRM and Digital Marketing Communication in B2B Relationships
Major Subject
Object of the Study
Marketing
Master’s Thesis
Month and Year
Number of Pages
December 2011
85 + appendices
Abstract
The growing importance of the Internet as an everyday communication channel has
transformed the marketing environment. Digital channels and the expansion of social
media have produced several new tools which organizations can use for their marketing
efforts. Yet, it still remains somewhat unclear how companies can utilize digital
marketing communication in their customer relationship management and what it
actually contains.
This study investigates what meanings B2B companies give to digital marketing
communication and social CRM. In particular, the study aims describing the means,
moderators and outcomes of digital marketing communication in B2B relationships. In
addition this study attempts to shed some light on the meanings of social CRM and its
application elements. The empirical study comprises of eight interviews with managers
responsible for managing key account relationships. Both the buyer side and the seller
side were investigated, in order to form a coherent representation of the phenomenon.
The findings of this study indicate that communication content and frequency are
the means of digital marketing communication. Interestingly, the study reveals that the
form of a message matters in B2B digital marketing communication as short and visual
messages are more desirable for the receivers. Along with channel preferences, the
importance of the right sender and receiver of messages were found to be moderators of
digital marketing communication. In contrast to prior studies, the results suggest that
the outcomes of digital marketing communication include value co-creation. No support
was found that digital marketing would enhance trust, commitment or loyalty.
The findings of the study also revealed that the elements of social CRM might have
some influence on the digital marketing communication. The results suggest that online
customer listening, responding, connecting and collaborating could provide inputs to
the digital marketing communication process. Nevertheless, the study demonstrates
that companies do not use social CRM activities at the fullest potential.
Keywords
Digital Marketing Communication, Social CRM, Business-to-Business relationships
Place of Storage
Jyväskylä University School of Business and Econom ics
FIGURES
FIGURE 1 Structure of the study ................................................................................. 5
FIGURE 2 CRM process ................................................................................................ 8
FIGURE 3 Traditional CRM and social CRM in business context ........................ 11
FIGURE 4 Digital marketing ...................................................................................... 21
FIGURE 5 The proposed research model of DMC.................................................. 22
FIGURE 6 DMC model based on the results ........................................................... 66
TABLES
TABLE 1 Traditional CRM vs. social CRM .............................................................. 12
TABLE 2 CRM and social CRM activities of marketing ........................................ 15
TABLE 3 CRM and social CRM activities of sales .................................................. 17
TABLE 4 Social media categories .............................................................................. 27
TABLE 5 The case firm and its customers................................................................ 37
TABLE 6 List of interviews ........................................................................................ 37
CONTENTS
1. INTRODUCTION ...................................................................................................... 1
1.1 Changes in the marketing environment ........................................................... 1
1.2 Theoretical background and research questions ............................................ 2
1.3 Structure of the study .......................................................................................... 4
2.
SOCIAL CUSTOMER RELATIONSHIP MANAGEMENT IN B2B
RELATIONSHIPS .......................................................................................................... 6
2.1 Customer relationship management (CRM) ................................................... 7
2.2 Social CRM definition ......................................................................................... 9
2.3 Traditional CRM vs. Social CRM .................................................................... 10
2.4 Customer data collection and analysis ........................................................... 12
2.5 Social CRM in B2B relationships .................................................................... 14
2.5.1 Social CRM and marketing ....................................................................... 14
2.5.2 Social CRM and sales ................................................................................. 16
2.5.3 Social CRM and digital marketing communication .............................. 17
3. DIGITAL MARKETING COMMUNICATION ................................................... 20
3.1 Digital marketing communication .................................................................. 20
3.2 Proposed elements of digital marketing communication ............................ 22
3.3 Communication means ..................................................................................... 23
3.3.1 Communication frequency ........................................................................ 23
3.3.2 Communication content ............................................................................ 23
3.4 Moderators of digital marketing communication......................................... 24
3.4.1 Channel preference..................................................................................... 25
3.4.2 Interactivity ................................................................................................. 28
3.5 Outcomes of digital marketing communication ........................................... 29
3.5.1 Value co-creation ........................................................................................ 29
3.5.2 Trust .............................................................................................................. 31
3.5.3 Commitment................................................................................................ 32
3.5.4 Loyalty.......................................................................................................... 33
4. EMPIRICAL STUDY ............................................................................................... 35
4.1. Case study design ............................................................................................. 35
4.2 Data collection .................................................................................................... 38
4.3 Data analysis ...................................................................................................... 39
5. RESULTS AND ANALYSIS ................................................................................... 41
5.1 Communication frequency ............................................................................... 41
5.2 Communication content ................................................................................... 43
5.3 Channel preference............................................................................................ 47
5.3.1 Personal communication ........................................................................... 47
5.3.2 Channels for information search .............................................................. 48
5.3.3 Other channels of communication ........................................................... 50
5.4 Interactivity ........................................................................................................ 52
5.5 Value co-creation ............................................................................................... 52
5.6 Trust, commitment and loyalty ....................................................................... 55
5.7 New determinants outside the research model ............................................ 57
5.7.1 Form of message ......................................................................................... 57
5.7.2 Sender and receiver of the message ......................................................... 58
5.8 Social CRM activities ......................................................................................... 60
5.8.1 Listening....................................................................................................... 60
5.8.2 Responding .................................................................................................. 61
5.8.3 Connecting ................................................................................................... 63
5.8.4 Collaborating ............................................................................................... 64
5.9 DMC model based on the results .................................................................... 66
6. DISCUSSION ............................................................................................................ 66
6.1. Theoretical conclusions .................................................................................... 67
6.2 Managerial conclusions .................................................................................... 70
6.3 Validity and reliability ...................................................................................... 72
6.4 Limitations for the study .................................................................................. 74
6.5 Suggestions for further research...................................................................... 75
REFERENCES............................................................................................................... 76
APPENDIX 1a: The original topic guide for sellers in Finnish ............................. 86
APPENDIX 1b: The translated topic guide for sellers in English ......................... 89
APPENDIX 2a: The original topic guide for customers in Finnish ...................... 92
APPENDIX 2b: The translated topic guide for customers in English .................. 95
1. INTRODUCTION
The Internet has become a significant channel for companies to communicate
and maintain relationships with their customers. Development of digital
channels and expansion of social media have produced several new tools which
organizations can use for marketing efforts. Yet, it still remains unclear what
digital marketing actually contains and how it can be used for attracting new
customers and serving existing ones.
1.1 Changes in the marketing environment
In the last few years, the marketing environment has changed significantly.
Technology is the biggest reason for this dramatic change, where the customers
have started to use power in the markets. The technology has not only
transformed the practice of marketing, but also what we think about marketing.
(Wymbs 2011.) The change has many reasons. First, the communication
channels have changed. The use of the Internet has exploded, partly due to
social networks and communities. In Finland almost half of the population that
is 42% of 16-74 year olds, have signed in at least one social network such as
Facebook, Twitter, LinkedIn and so on. Social networks are the most popular
among 16-24 year olds, where 83% have signed in a social network. (Official
Statistics of Finland 2010.) However, the change not only concerns social
networks. The Internet has become a common source of information during a
buying process. A total of 74% of the population have used the Internet for
searching information about goods and services. The information is not only
searched, but also shared. In fact, already 40% of Finnish population has read a
blog at least once within the last three months and 42% have created content in
a social network. (Official Statistics of Finland 2010.)
It is not only the channels that have changed, but also the ways how we
communicate. An individual can now freely communicate with other
individuals or groups online. Customers have the control of what they read,
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hear or watch (Weber 2009, 29-33). This has transformed the information
sharing on the Internet as everyone can say his or her opinion. Thereby trust in
peers, “the customer like me”, has increased (Greenberg 2010a, 98-101).
For marketers this has brought new challenges. Companies need to listen
to their customers, engage in conversation with them, be transparent and
communicate with the customers in an open and human-like way. Marketing’s
role has changed from being a broadcaster pushing out messages to an
aggregator, who brings content together, enables collaboration and
participation in communities. Marketing activities now also include building up
online communities, generating leads from online environments and
collaborating with customers, in order to gain customer insights and better
customer understanding. (Weber 2009, 22-25). Nevertheless, the main functions
have remained the same. Marketers still need to define target markets,
communicate with prospects and build customer loyalty. (Weber 2009, 36.)
How have these changes in the marketing environment affected businessto-business (later on B2B) companies? Li and Bernoff (2008, 101) give a simple
answer: as companies do not interact with each other, it is the people in the
companies who do (Li & Bernoff 2008, 101). The same communication trends
are seen in the business markets. According to Forrester (Ramos & Young 2009)
91% of business buyers read blogs, watch user generated videos or participate
in other social media. Already in 2009 around half (55%) of the decision-makers
used social networking services and 43% created some kind of content on social
media, such as blogs, videos or articles (Ramos & Young 2009).
The change in the marketing environment acts as a basis for this study. It
seems that the old models of marketing do not apply in this new technological
era. The fundamental change in people’s behavior has forced marketers to
adapt and keep up with the evolution in marketing practice. However, it is still
unclear what marketing in digital channels really is. This is why this research is
conducted: to understand what digital marketing communication is in B2B
relationships and what are the best uses of it.
1.2 Theoretical background and research questions
The theoretical background of this study reflects the current marketing
environment. The increasing use of digital marketing has speeded up the need
for academic research in digital environments. There is no clear theory of digital
marketing communication (Mulhern 2009), nor clear understanding about its
impact on customer perceptions. This is why digital marketing communication
acts as one of the theoretical foundations for this study. Furthermore, the use of
digital channels in customer relationship management has developed a new
academic research branch, social customer relationship management (later on
social CRM). This new branch has gained more and more attention recently.
Furthermore, Forrester predicted in 2008 that social media would be the leading
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way for CRM strategies in the future (Karpinski 2008). The literature suggests
that social CRM can, in fact, have influence on digital marketing
communication (Wilson 2010). Therefore, social CRM acts as the second
theoretical foundation for this research.
Social CRM is a relatively new research field in the marketing arena.
Writers like Paul Greenberg, Brian Solis, Dave Evans and Jake McKee
introduced the term in the practitioners’ literature. However, there is little
academic research done in the field of social CRM (Mohan, Choi & Min 2008).
Research articles have examined social CRM only as a technology (Mohan et al.
2008) or as a tool (Askool & Nakata 2010; Deng, Zhang, Wang & Wu 2009).
Until now the research has tried to explain what social CRM is (Acker, Gröne,
Akkad, Pötscher and Yazbek 2011) and not what it is actually used for. Only the
publications from Greenberg (2010a, 2010b) have attempted to explain the
impacts of social CRM on customer insights. He has emphasized that the new
communication channels have not only changed the way companies and
customers interact, but in fact, added more sources for customer related data
and customer insights (Greenberg 2010b).
One element of social CRM is tight communication with customers with
the help of the new technologies. As the customers are spending more time in
digital environments, the firms are sensing that they need to use digital
marketing to respond to customers’ demands (Wymbs 2011). However, many
companies are uncertain which elements are essential in the digital marketing
process and which digital route they should follow (Wertime & Fenwick 2008,
27). Previous studies have found out that at least frequency (DuFrene,
Engelland, Lehman & Pearson 2005; Godfrey, Seiders & Voss 2011) and content
could be essential parts of digital marketing communication. Chaffey (2010)
argues that the different customer personas, preferences and needs are the ones
which need to be considered when forming a digital channel strategy. It has
also been proposed that interactivity is a component of digital marketing
communication. Srinivasan, Anderson and Ponnavolu (2002) state that the level
of interactivity in marketing communication can have impact on e-loyalty and
therefore the interactivity used in marketing communication should be
considered.
Previous research has also investigated the impact of digital marketing
communication on value co-creation. For instance Golik Klanac (2008) studied
web site’s effects on customer value. Digital marketing has also been discussed
with the components of trust (Wagner, Coley and Lindemann 2011) and
commitment (Huang, Cheng and Farn 2007). Previous studies have also shown
that there could be a link between digital marketing communication and
customer life time expectancy. Reinartz and Kumar (2003), for instance, have
found out that the number of the mailing efforts of a company is positively
related to profitable customer lifetime duration. Also Merisavo (2008, 37-38)
claims that digital marketing communication has great potential for positive
interaction with loyalty.
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The research in the field of digital marketing communication is disjointed.
Consequently, there is a need for further research within this new marketing
discipline. Mulhern (2009) states that there is a need for a theoretical framework
for marketing with digital media. Constantinides and Fountain (2008) call for
research on how customers experience these new marketing efforts and how
the new tools have an effect on customers’ perceptions, needs and behavior.
They argue that more research is needed around the effects of the new tools on
customers’ retention as well (Constantinides & Fountain 2008). Also Kerrigan
and Graham (2010) believe that there is a need for more research in order to
understand the interaction quality of seller buyer relationships in social media
spaces. It is also unclear how much and to what extent customer equity can be
influenced by social media, for example by YouTube campaigns (HennigThurau, Malthouse, Friege, Gensler, Lobschat, Rangaswamy & Skiera 2010).
Foster (2005) emphasizes the need to understand how the Internet is used as a
marketing communication tool to create value for the customers. Parasuraman
and Zinkhan (2002) point out that more research needs to be done from the B2B
perspective within this field.
The aim of this study is to investigate how companies can utilize digital
marketing in their customer relationship management. This study examines the
meanings the companies give to the means, moderators and outcomes of digital
marketing communication. In another words, it investigates how respondents
perceive the digital marketing communication they use and receive (frequency
and content of messages), which elements can have an effect on it (channel
preference, interactivity) and how it is perceived (does it affect value cocreation, trust, commitment, loyalty?) in customer relationship management. In
addition this study examines the new marketing research field of social CRM.
This study focuses on existing buyer-seller relationships and the
communication in them.
This research aims to fill the research gap by examining the elements of
digital marketing communication in B2B context. The research questions are
targeted to study the means, moderators and outcomes of the digital marketing
communication as well as the meanings of social CRM. Based on the existing
literature the research questions are formulated as:
Research Question 1: What meanings B2B companies give to means, moderators and
outcomes of digital marketing communication?
Research Question 2: What meanings B2B companies give to social CRM in connection
with digital marketing communication?
1.3 Structure of the study
This research is divided into six chapters (Figure 1). In the first chapter the
background and the motivation of this research are presented. In the second
5
chapter, social CRM is examined in the context of B2B relationships. In chapter
3 digital marketing communication is introduced as well as its means,
moderators and outcomes. In the fourth chapter the case study design and
research methodology are presented including the description of data collection
and data analysis. The fifth chapter comprises the results and analysis. In
chapter 6 the theoretical as well as the managerial conclusions are presented,
together with limitations and further research suggestions.
Figure 1 Structure of the study
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2. SOCIAL CUSTOMER RELATIONSHIP
MANAGEMENT IN B2B RELATIONSHIPS
The goal of marketing has always been to build and leverage relationships
between the company and customer (Weber 2009, 21). In the last decades there
has been a convergent view in the marketing arena that co-operation in buyerseller relationships brings major competitive advantages for a company (Ulaga
& Eggert 2006). This is why many researchers in recent years have studied the
relationship between buyer-seller interaction and company’s overall returns.
Many studies have tried to show that building a long-lasting and collaborative
relationship has a positive influence on firm profitability (Reinartz & Kumar
2003).
In buyer-seller relationships collaborative relationships can be established
through customer relationship management (CRM). CRM has been considered
as a form of relationship strategy. It determines how well a firm will relate to its
customers via channels, messages, products and services. (Richards & Jones
2008.) By using CRM systems, the customer data can be used for selling and
marketing purposes. It has been said that CRM aligns business processes with
customer strategies to build customer loyalty and increase profits over time
(Rigby, Reichheld & Schefter 2002).
The main focus of CRM has been in managing the relationships from the
seller’s perspective. However, this more top-to-down view has been challenged
by the new social customer, demanding companies to collaborate and act more
like peer-to-peer in customer relationships. This demand combined with the
rise of the new technology has changed the look of CRM when companies are
moving towards integrating social strategies and operations into current CRM
systems (Mohan et al. 2008). Social media is becoming an accepted digital tool
used by companies with CRM to improve customer-firm relationships (Askool
& Nakata 2010). More relevant customer insights can be mined from digital
environments and communities into the existing CRM systems with different
techniques and tools (Greenberg 2010b).
The combination of the Internet in CRM activities is not a new
phenomenon. Zeng, Wen & Yen (2003) already stated that CRM and B2B e-
7
commerce share similarities and could be integrated to produce benefits in
marketing, sales and customer service. This integration is now called social
CRM. With the help of customer listening tools more customer data could be
mined from the web. Social media has helped uncovering new information that
was once difficult to find (Davis Kho 2008). For instance Wilson (2010)
proposed that using clickstream data and web analytics more information
about buyers could be inserted in CRM system. However, social CRM is not
only about the tools; it is said to be a new paradigm that aims to create
meaningful conversation and high value relationships between a company and
its customers (Greenberg 2010b).
In what follows, the fundamentals of social CRM are presented. First the
concept of customer relationship management is explicated as a foundation for
social CRM. Then the term social CRM is conceptualized and compared with
the traditional CRM. It is also illuminated why customer data is collected and
what kind of customer data is used in social CRM. Also the social CRM
functions are presented in the light of traditional CRM classification: marketing
and sales. Finally, it is briefly discussed how social CRM could be used in
digital marketing communication.
2.1 Customer relationship management (CRM)
Social CRM has its foundation in customer relationship management (CRM).
Over a few decades there has been interest of using CRM in company’s
operations in enhancing customer value and, as a result, shareholder value. The
term CRM has been around from the mid-90, but for long it was used to
describe technology-based customer software solutions, such as sales force
automation (SFA). (Payne & Frow 2005.) Some IT professionals define it still
strictly as a technology or specialized collection of technological tools.
However, others say CRM is a set of business processes that focus on managing
the customer experience, while some CRM practitioners say it is a
comprehensive strategy for customer retention. (Zablah, Bellenger & Johnston
2004.) The definitions vary substantially between researchers (Payne & Frow
2005). For instance, Zablah et al. (2004) found five distinct ways to define CRM:
as a process, a strategy, a philosophy, a capability and a technology.
Payne and Frow (2005, 168) define CRM as “a strategic approach that is
concerned with creating improved shareholder value through the development
of appropriate relationships with key customers and customer segments”. It has
said to combine marketing strategies and IT to enhance opportunities to use
customer data and information in building long-term relationships and cocreating value with them (Payne and Frow 2005). Recently, the Internet has
been influencing more and more the CRM literature. The Internet and wireless
technologies have made CRM real time and constantly operating. Goldenberg
(2008, 3) states that “CRM increasingly leverages the Internet to provide
8
seamless coordination among all customer-facing functions.” These definitions
imply that the core of CRM is to collect and use customer data in customer
relationships, and to leverage technical tools, such as the Internet in these
actions.
Researchers and practitioners have stated that there are many benefits of
using CRM. The most important one has said to be the benefit of getting better
sales and marketing information (Goldenberg 2008, 4) that improve the ability
to target the profitable customers and improve sales force efficiency (Richards
& Jones 2008). Another proposed benefit is that CRM can improve productivity
by customizing the products and services with the help of targeted market
identification. CRM helps also to enhance customer care by individualized
marketing messages and improving the customer service efficiency.
(Goldenberg 2008, 4; Richards and Jones 2008.)
As a process, CRM includes a knowledge management process as well as an
interaction management process (Figure 2). Knowledge management is an
organizational process that is concerned with the creation, storage, retrieval,
and application of knowledge. There are three micro processes: data collection,
intelligence generation and intelligence dissemination. Data collection focuses
on capturing information about the customer and markets. Intelligence
generation tries to convert data that has been compiled into operational
intelligence. Last the intelligence needs to be disseminated throughout the
company. (Zablah et al. 2004.) The knowledge management process is highly
dependent on the people using it. In addition to the tools which need to be in
place for collecting, generating and disseminating knowledge, the
organizational members have an extensive influence on the process (Zablah et
al. 2004). Whether the process is efficient or not, depends on the level
employees use the systems.
Figure 2 CRM process (partly adapted from Zablah et al. 2004)
9
The interaction management process leverages this available intelligence to
build and maintain customer relationships. The relationships consist of
exchange episodes where the buyer and seller engage in. These episodes can
include the exchanges of products and services for money, which is defined as
core benefits exchange. An episode can also include information exchange as
planned (direct mail, a newsletter) or unplanned communications (email
answer). In relationship management the social exchange is often occurred in
meetings such as business lunches. (Zablah et al. 2004) These above mentioned
exchanges reflect the content of the interactions between a buyer and a seller in
CRM process.
Although CRM is not merely technology, it utilizes information
technology and it unites the new marketing thinking with new technology to
gain and maintain long-lasting relationships. CRM is ultimately about two-way
communication, but which the Internet has improved substantially. (Payne &
Frow 2004). However, the Internet has brought also challenges when customers
have started to use multiple channels to communicate with the firm. This has
led to development of channel management and multichannel integration
(Payne & Frow 2004) and lately social CRM.
2.2 Social CRM definition
As previously mentioned, technological change has transformed our ways to
communicate. Old CRM models have been criticized to be too technology
oriented and have paid only a little attention to the people using them.
Relatively little is known how CRM affects the relationship between an
employee and a customer. However, the new form of CRM, social CRM, has the
potential to focus on the people and their relationships. (Askool & Nakata
2010.) The focus has now changed on socializing the old infrastructure of CRM.
This means that the focus will be in creating an infrastructure that recognizes
the value and input of customers, includes the systems required to connect with
them and contains new feedback loops. Social CRM also contains a shift from
managing customers to listening and engaging with them. Hence, social CRM
includes human interaction and conversations, enabled through technology
platforms, providing experience for the customers. (Solis 2011, 246-247.)
Greenberg (2010a, 34) defines social CRM as:
“a philosophy and a business strategy, supported by a technology platform,
business rules, processes, and social characteristics, designed to engage the
customer in a collaborative conversation in order to provide mutually beneficial
value in trusted and transparent business environment. It’s the company’s
response to the customer’s ownership of the conversation.”
10
Greenberg (2010a, 34) states that the customers now own the conversations.
This fundamental change in customer behavior has forced companies to adapt
social CRM strategies. Customers are already collaborating, sharing reviews,
trusting peers in those reviews, sharing information and seeking transparency.
Social CRM aims to engage the company in these actions, to create meaningful
conversations and valuable relationships with customers. (Askool & Nakata
2010.)
Social CRM is not a replacement for CRM, it is just an extension of it
(Acker et al. 2011; Evans & McKee 2010, 235; Greenberg 2010b; Leary 2008;).
Leary (2008) points out that it is easy to get lost in the excitement of the new
tools of social media. However, social CRM works best if there is a solid
existing CRM foundation, such as a customer database, efficient management of
customer information, keeping track of events, management of sales and
marketing processes (Leary 2008). The importance of CRM groundwork should
not be underestimated and previously presented knowledge and interactions
processes should be used in social CRM as well.
The fundamental goal of any marketing activity is to increase sales. This is
also the main purpose of social CRM. Depending on the specific needs of a
company, the sub goals can be lead generation, new channel creation or testing
ideas. Also brand equity can be enhanced when using social CRM to improve
awareness or creating thought leadership position. (Gillin & Schwartzman 2011,
145.)
In social CRM, companies must have a centralized system, where the
online conversations will link to the existing customer information, helping the
employees to continue the dialogue with the customer. By using social CRM,
the customers do not have to tell all details about themselves. A company can
utilize the information available in social networks or online environments.
(Soininen, Leponiemi & Wasenius 2010, 166-171.) Social CRM application can be
layered on the structured processes of existing CRM to help employees to better
leverage social networks, internal and external data with the existing sales and
marketing content (Mohan et al. 2008). This means that traditional CRM
systems are accompanied with the new social CRM systems. Next the
differences between these two are discussed.
2.3 Traditional CRM vs. Social CRM
Although traditional CRM and social CRM are usually utilized together, there
are some differences between them. The main difference is that traditional CRM
emphasizes automation and software whereas social CRM emphasizes the
conversation and the interaction with the customer. It has been said that with
social CRM the relationship returns to its origin and take a more human form.
(Soininen et al. 2010, 171). Figure 3 presents the social CRM process against the
traditional one. The traditional CRM focuses on the operations and sales in the
11
customer relationship process using marketing and traditional media. It uses
only the customer specific information that the customer gives or what an
organization already has (purchase records etc.). (Evans & McKee 2010, 237.)
Figure 3 Traditional CRM and social CRM in business context (partly adapted from Evans &
McKee 2010, 237)
Social CRM is, on the contrary, a collaborative process. It facilitates customerdriven innovations internally as well as externally using conversations held by
the customers themselves. (Evans & McKee 2010, 237.) Social CRM uses the
information from the social web, converts it through social analytics into
customer knowledge and uses it in developing business processes. This way the
information can be tied together with the business processes allowing the social
web do part of the job (Evans & McKee 2010, 237).
The underlying principles of social CRM are different than its predecessor.
The main differences are illustrated in table 1. Where CRM is aimed at customer
management, social CRM is aimed at customer engagement. A company no
more manages the relationship with the customer, it only enables customers to
collaborate with the company. (Greenberg 2010a, 35-36.) Social CRM is more
related to people and conversations than traditional CRM (Leary 2008). In the
interaction with the customer, the authenticity and transparency are important
determinants (Greenberg 2010a, 35-36) as well as the content of the messages
(Leary 2008). The social media tools are integrated into the customer facing
actions, such as wikis, blogs, networks and communities (Greenberg 2010a, 3536).
The underlying consequence is that in social CRM the company belongs to
customers’ ecosystem. The customer is not seen as a target, but actually as a
source of all company actions. This peer-to-peer thinking labels all functions in
the company, such as marketing and sales. The marketing is no more about
pushing the messages to the customers, it is more related to asking questions
what the customer actually needs. By observing the conversations and engaging
in customers’ activities and discussions, more relevant data can be collected to
support the business processes. (Greenberg 2010a, 36-37.) Collecting the data
12
and listening what the customer actually needs is the central aim of social CRM.
Next the means to accomplish this aim are clarified.
Table 1 Traditional CRM vs. social CRM (Leary 2008; Greenberg 2010a, 36-37)
Traditional CRM
Social CRM
Data-driven
Content-driven
Process-centric
Conversation-centric
Operationally focused
People/Community focused
Customer-facing features as separate marketing,
sales and support departments
Customer-facing features fully integrated into an
enterprise value chain
Integrates social media tools into services, wikis,
blogs, networks and communities
Encourages authenticity and transparency in
customer interactions
Tools are associated with automating functions
Encourages friendly, but institutional relationship
with customers
CRM belongs to customer-focused corporate
business ecosystem
Marketing focuses on processes that send targeted,
highly specific corporate message to customer
Company manages the relationship with the
customer
Company is managing customers – from top to
down view
social CRM belongs to customer ecosystem
Marketing is front line for creating conversation
with customer, engaging customer in activity and
discussion and observing conversations
Customer collaborates with the company
Relationships more peer-to-peer
2.4 Customer data collection and analysis
Customer data can be collected from many sources with different techniques.
The customer conversations, for instance, can be mined, and the conversations
and people behind them, can be pulled to the customer database. This context
related information and the contacts can be integrated with the existing CRM
data. (Evans & McKee 2010, 239.) The web offers a lot of customer touch points
where the customer-generated data can be collected and mined for the CRM.
Ahuja and Medury (2011), for instance, investigated the opportunity of
extracting consumer-related information from the comment posts in response to
a corporate blog. A company can archive these posts or the reactions to the
blogs for further use (Ahuja & Medury 2011).
Greenberg (2010b) points out that CRM was long misnamed as a source
for “360 degree view of the customer”. It contained sales, marketing and
customer service transaction data of a single customer in the specific company.
It actually had little or no connection to the real customer insight. Somewhere
along the way the real conversations with the customer were replaced by
customer insights mined from the databases. (Greenberg 2010b.) However, just
by studying customer records, the true customer insight cannot be obtained.
This is why the new listening tools help companies to tap the real customer
insights, with sentiment analysis and other listening tools.
13
The real customer insights can be generated by combining the traditional
data for instance from surveys, call centers or emails to social insights gathered
from the web (Wollan, Smith and Zhou 2011, 102). Listening tools help a
company to tap information from many sources ranging from social networks
(Facebook, LinkedIn), to discussion forums, communities around special
interest or other knowledge databases (Greenberg 2010b). By combining the
traditional and social information, a more plausible picture of the customer
behavior and insights can be produced. Behavioral data for instance can be
formed from the purchase records, web site visit or click streams, but the
contextual data can be mined from the web in form of feedbacks or opinions.
Combining these two can reveal business shortcomings or opportunities.
(Wollan et al. 2011, 77-78.)
There are at least five components for customer insights: customer data,
sentiment analysis, profiles, customer experience maps and social media
monitoring. Customer data, for instance, consists of purchase records, visits to
sites or responses to marketing campaigns, information from personal profiles,
and data from discussions or blogs. (Greenberg 2010b.) Sentiment analysis
means identifying the overall attitude, either positive, negative or neutral, in a
given text piece. This means that company can mine sentiments from the
opinion rich sites, such as online review sites or blogs. (Ahuja & Medury 2011.)
The sentiment analysis usually measures how positive or negative the
discussion around the company is. If the discussion or sentiment reaches a
certain level, an alert can be trigged in order to take some action. (Greenberg
2010b.) However, the sentiment of a single comment can also be saved to CRM
system connected with the customer profile.
Customer experience mapping means examining customer interactions at
multiple touch points. This means that the expectations of interactions are
mapped, as well as the results of the interaction and actual weight on the
results. Customer experience mapping gives information about what the
customers actually think when they are acting with the company. (Greenberg
2010b.)
With social media monitoring the hot topics, influencers or other trends
can be tracked from the web. (Greenberg 2010b.) Wollan et al. (2011, 76) points
out that investing in such monitoring can be a waste of money for instance in
B2B markets, where the sales are usually done offline. In business markets, the
companies with a narrow customer database, few competitors and high
switching costs, could outsource this kind of monitoring and analysis (Wollan
et al. 2011, 76). In this case social media monitoring would not have to be part of
the essential knowhow, but as an additional source for customer insights.
With the help of customer data and insights the organizations can
formulate better responses that are suited with the customer information or
develop appropriate targeting strategies based on the data (Ahuja & Medury
2011). Not only targeting, but also personalization can be designed on the basis
of the customer insights. Customer data can be used for instance in
personalizing the web content to meet the customer preferences and needs.
14
With data mining and collaborative filtering the business opportunities can be
maximized, when the right content is presented to the right customers at right
time. More and more the customer profiles are combined with real time data
such as clickstream to produce context-driven personalization. (Ho, Bodoff &
Tam 2011.) How the customer data can be used in marketing and sales, is
discussed more detailed in the next chapter.
2.5 Social CRM in B2B relationships
In this chapter, the customer facing actions in the context of social CRM are
discussed in more detailed. There have traditionally been three separate entities
in CRM: marketing, sales and customer service. Greenberg (2010a, 283) points
out that today sales and marketing are closer to each other. Although the fine
lines of marketing, sales and customer service have blurred in online
environments. In the business world sales and marketing still remain two
separate fields, where sales focuses on getting a customer to purchase and
marketing concentrates on getting the attention of a prospective customer.
However, these two teams must work closely together in order to achieve the
goals. (Greenberg 2010a, 283.) In this chapter, only the two parts of social CRM
are presented: marketing and sales.
2.5.1 Social CRM and marketing
B2B marketing differs from what we know as consumer marketing. First, the
markets, customers and products are different than in consumer markets.
Purchase decision making in B2B markets is more complex, includes more
people and various issues can influence the purchase decisions. (De Pelsmacker
et al. 2007, 533.) When designing marketing for B2B companies, the whole
decision or purchase unit must be taken into consideration. Marketing
communication needs to be targeted to each individual of the unit, considering
their personal needs while integrating it with other marketing communication
activities (De Pelsmacker et al. 2007, 549). The most used tools in B2B marketing
communications are personal selling, customer relationship marketing, trade
shows and public relations (Karjaluoto 2010, 22). Other forms of marketing are
exhibitions, telemarketing, direct mailing, catalogues and technical
documentation (De Pelsmacker et al. 2007, 546). With the new technology
companies can improve their marketing performance by reducing their
marketing costs and using digital channels more efficiently (Merisavo 2008,6).
The use of CRM in B2B marketing has many advantages. By using the
customer information, the communication can be directed to the right people,
who might be the possible prospects. CRM helps the company not to overcommunicate and to tailor the messages to fit the customers’ needs. (Dyché
2002, 24.) CRM can also be used as a resource in all marketing activities. In
cross-selling and up-selling, for instance, the importance is in understanding the
15
customers’ business and which product would increase the customer’s
profitability (Dyché 2002, 31). The information for the possible new deals can be
mined from the CRM system using purchase data and other customer related
information. CRM can be used also for the behavior prediction. This means that
using data mining and modeling techniques it is determined what the
customers are likely to do in the future. (Dyché 2002, 33.)
The channel optimization can be done using CRM technologies. It is
important to understand through which channels customers want to interact
with the company. (Dyché 2002, 35.) In B2B relationships, taking care of
customers typically happens in face-to-face settings (De Pelsmacker et al. 2007,
535;549.), but digital channels have facilitated the everyday interactions. It is
still, however, important to remember that the customer does not necessarily
want to use the channels the company wants to use. The information from CRM
analysis can help to determinate the right channels as well as personalize the
messages. Personalization of the marketing communication means tailoring the
messages to a particular customer or customer segment (Dyché 2002, 37.)
Cross-selling, upselling, behavior prediction and personalization have
been the marketing activities in the traditional CRM era. These activities have
not vanished, marketers have just nowadays new activities along with the old
ones. The social CRM activities are, in fact, just a fusion of the old activities
(Evans & McKee 2010, 235). Firstly, data collection around a specific customer
and secondly, the analysis and projection of the next action with the regard to
that customer. For instance listening to the customers online is providing
customer insights and data from various customer touch points (Greenberg
2010b). That means collecting raw inputs from individual profiles, visits to the
web sites, time spend on the sites or response to marketing campaigns.
Listening means also organizing conversational data such as data gathered
from discussions or blogs. This also requires quantifying conversational
measures such as volume or sentiment. (Evans & McKee 2010, 235; Greenberg
2010b.) Listening to the customers online helps the old CRM activities of crossselling, upselling, channel optimization and personalization by providing
deeper customer insights.
Table 2 CRM and social CRM activities of marketing (partly adapted from Dyché 2002, 24-37;
Evans & McKee 2010, 235)
Business function
CRM activities
Cross-selling and upselling
Behavior prediction
Marketing
Channel optimization
Personalization
additional social CRM activities
Listening:
data collection from web
data analysis
develop marketing insights from the
data
Responding:
listening
understanding
responding
asking questions
acting
16
Responding means responding to the need and wishes of the customers. The
customers want to receive information and news they really care about (Weber
2007, 12). To know what the customer wants, the whole participative process
needs to be managed: listening, understanding, responding, asking questions
and acting (Evans & McKee 2010, 235). The participative process needs an
active dialogue with the customers, done both by marketers as well as the
salespeople. Marketing’s role has moved to managing the first line
conversations with the customer. This means that marketing provides the
customer extra knowledge to engage them into conversations. (Greenberg
2010a, 311; 315; 320.) The second line conversations are done by the salespeople.
2.5.2 Social CRM and sales
In B2B relationships it is more often the salesperson that interacts with the
customer the most. Personal selling is the most important tool in B2B
environment, combined with the technical documentation the salesperson has
as a support. (De Pelsmacker et al. 2007, 543.) Salespeople have traditionally
been responsible for managing leads up in the sales funnel. However, the use of
the Internet as a primary information search tool in the buying process has
shifted the role more and more to marketing. (Gillin & Schwartzman 2011, 160.)
However, lead generation still is seen as part of the sales departments job
although marketing and sales are both responsible for the listening and
identifying the prospective customers. Leads can be generated by participating
in expert discussions, without trying to sell the solutions or products
(Greenberg 2010a, 295-297). By listening, following and monitoring
conversations a salesperson can add content value to the discussions and by
staying visible to the group members, the first contact taking requires less
persuasion. Salespeople can also participate into conversation by writing blogs,
creating videos, twitter streams or communities, where they can bring forth
their expertise. (Greenberg 2010a, 295-297.)
Connecting as a social CRM activity means identifying the influencers on
the web and linking them with the listening data (Evans & McKee 2010, 235).
This means searching for the information form profiles and networks on the
Internet (Greenberg 2010b). This data is combined with the data from CRM,
which salespeople use for managing their pipeline, monitor their accounts,
track opportunities and keep their contact list in shape. This activity was
previously called sales force automation (SFA), but is nowadays part of CRM
activities. (Dyché 2002, 79-80.) This sales-focused CRM system can help
salespeople to focus on high revenue and high profit customers in increasing
sales. At the same time, the activity with low revenue and low profit customers
can be reduced. (Raman, Wittmann & Rauseo 2006.)
Responding is a part of salespeople’s activities as well. Listening to
customers, understanding and asking questions are part of the salespeople’s
job, because the customers are no longer expected to be sold to, but they are
expecting to be partnered with (Greenberg 2010a, 286). This is a major change in
the sales process, where the customer needs to be taken into the company’s
17
processes as an active actor. This is also an advantage, since potential for a sale
increases in collaborative environment, where the salespeople get deeper
customer insight (Greenberg 2010a, 306; 309).
Table 3 CRM and social CRM activities of sales (partly adapted from Dyché 2002, 24-37;
Evans & McKee 2010, 235)
Business function
CRM activities
Lead generation
Sales
additional social CRM activities
Responding:
Listening
Understanding
Responding
Asking questions
Acting
Sales force automation
Connecting:
Identify specific influencers
Link more information about them to listening and
business data
Knowledge management
Collaborating:
Tap the ideas of influencers and suggestions of
customers
Manage conversations
By collaborating, the salespeople can tap the ideas of the customers and get
important suggestions about how to improve the products. Collaborating is the
sales departments mean of managing the conversations with the customers.
(Evans & McKee 2010, 235.) When they are managing the conversations, they
are providing information. The knowledge management is a vital part of
salespeople’s work, because the customer needs information to support their
purchase decision. There are various information that a sales representative can
use during a sales process, such as sales presentation slides, expense report
formats, industry and competitor data, trade show material or digitized videos.
(Dyché 2002, 87-88.) The sources of information are actually provided by the
sales and marketing together. Particularly at the information search stage, these
two parts are needed to help the customer to make the decisions. Traditionally,
the salesperson has been in the key role in giving the information. (De
Pelsmacker et al. 2007, 539.) Salespeople are providing the information in
everyday communications, but they are also vital channels for distributing the
impersonal marketing material.
2.5.3 Social CRM and digital marketing communication
As illustrated in the previous chapters, social CRM can help designing and
implementing marketing or sales activities. The real advantage comes when the
social CRM data can be used immediately for instance in the marketing or sales
activities. This can be done when the marketing efforts are in digital form. The
content can be changed quickly or shared rapidly according to the need for that
specific situation (Mulhern 2009).
18
In this study, digital marketing communication is perceived as a mixture
of marketing and sales efforts. Although marketing department designs
marketing campaigns or sales material, in B2B relationships it is usually
salespeople that channel the communication to a right place (De Pelsmacker et
al. 2007, 543). This is why digital marketing communication can be sent by the
salespeople as personal communication or by marketing department as
impersonal communication.
Social CRM and customer listening capabilities can help in focusing the
marketing efforts at the right place. Social analytics, web site analytics and other
measurement activities can direct marketer’s attention to the right objects.
When this information is combined with available CRM data, the customerfocused decisions can be improved (Wollen et al. 2011, 102). For instance, if a
customer is browsing through the company’s web site, he/she leaves traces
where he/she has visited or which links he/she has clicked. With web site
analytics, the clickstream data can be analyzed and collected to illustrate which
pages of the web sites are the most appealing to the visitor (Wilson 2010). This
already gives valuable information for the marketing and sales department to
identify the important sites for the specific customer. The clickstream data can
also be used for evaluating how well the web site is performing and what needs
to be changed in determining the content or the lay out (Wilson 2010).
There are many ways of personalizing web site content to match the
visitors’ wishes. For instance, web site morphing matches the cognitive style of
the web site visitor to web site content. It means that a web site can detect
visitor’s cognitive style from the early clicks and morphs its look and style to
visitor’s style. (Urban, Hauser & Liberali 2009.) Much easier web site
personalization is when the customer data is already known. The most cited
example for this regards is Amazon.com. It uses a recommendation algorithm
that can analyze customer data and preferences, according to their purchase
behavior. It also gives recommendation for further purchases base on the
customer profile information. (Mulhern 2009.)
Optimizing web content to match customers’ needs is not the only benefit
of web site analytics. With the cookie data or log-in information of a closed
community, the customer browsing through the site can be identified. By
linking the identity data to the web analytics the company can have a complete
view of the web site visits of that specific customer over time. If this data is
connected with the CRM system, it can give salespeople and marketing the
information about which products and services are the most relevant to the
customer. This naturally improves cross-selling and upselling activities of the
company. (Wilson 2010.)
As presented in this chapter digital marketing communication can be
changed according to the wishes of the customers. In addition, social CRM and
web site analytics give valuable information for the salespeople and marketing
to improve their performance. However, web analytics cannot always give
comprehensive understanding what the customer needs. This is why in this
study digital marketing communication is viewed in the eyes of the customer as
19
well as the salespeople. In the subsequent section, the definitions and proposed
elements of digital marketing communication are explained more detailed.
20
3. DIGITAL MARKETING COMMUNICATION
Social CRM literature underlines the importance of collaborative conversation
in the buyer-seller relationships supported by a technological platform such as
the Internet or mobile phone (Greenberg 2010a, 34). Therefore in this chapter
one element of social CRM, digital marketing communication, is described in more
detailed. First, the digital marketing communication concept is defined and
clarified. Then the proposed research model of digital marketing
communication is described briefly. Finally each of the proposed elements of
digital marketing communication is presented shortly.
3.1 Digital marketing communication
Digital marketing is used for describing the marketing activities and content in
digital form, e.g. on the Internet. Digital Marketing Institute has defined digital
marketing as “the use of digital technologies to create an integrated, targeted
and measurable communication which helps to acquire and retain customers
while building deeper relationships with them” (Smith, 2007). Similar definition
is being used by Merisavo (2008, 20) as he defines digital marketing
communication as “communication and interaction between a company or
brand and its customers using digital channels (e.g. the Internet, email, mobile
phones, and digital TV) and information technology.” Besides the digital
channels, the definitions usually emphasize the two-way, personalized dialogue
with each customer (Wertime & Fenwick 2008, 30).
Digital marketing communication (later denoted as DMC) is a close term
for e-marketing that is used to describe the real-time dialogue mediated by
information technology (Coviello, Brodie, Brookes & Palmer 2003) Also the
terms like “interactive marketing,” and “one-to-one marketing,” are close to
digital marketing definition (Merisavo 2008, 6). Wymbs (2011) say that, in fact,
these terms are included in digital marketing. However, he points out that
marketing is increasingly using other digital forms as well, not just the Internet
21
solely as a technology. This is why the term digital marketing is better than the
previous concepts such as e-marketing or Internet Marketing. (Wymbs 2011.)
There are two distinct things defining DMC. The first one is the channel
used in DMC, which is purely in digital form. This means that digital marketing
does not exclude channels outside the Internet, but take into account also other
means and tools, by which digital marketing communication can be
transmitted. (Karjaluoto 2010, 13.) This means that all digital channels that are
in digital form, can be used as communication tools for DMC.
The main driver of digital marketing is the business returns of gaining and
maintaining customers. It is not the technology that enables digital marketing.
(Wymbs 2011.) This is the second defining element of DMC. Digital marketing
is referred to the personalized and participatory media that is used for
communicating with the customers. The customers are, in fact, creators and
contributors of the marketing communication, not just passive targets.
(Wertime & Fenwick 2008, 26-31.)
Figure 4 Digital marketing (partly adapted from Wymbs 2011)
Digital marketing can be understood as a bridge bringing the customer touch
points and firm’s conversation interfaces together (Figure 4). The customer
touch points are for example the social networks, search, mobile applications, ecommerce and email. Firms’ conversation interfaces can be for instance digital
advertising, email, channel integration, search engine optimization and content
development. Digital marketing can provide through these touch points and
interfaces the relevant content to the customer when it is needed. (Wymbs
2011.) Digital marketing is therefore a mix of customer perspectives as well as
firm perspectives.
22
3.2 Proposed elements of digital marketing communication
Communication channels are essential part of DMC. What else belongs to the
means, moderators or outcomes of DMC? Many companies are uncertain which
elements are essential in the digital marketing process and which digital route
they should follow (Wertime & Fenwick 2008, 27). The following research
model is proposed to illustrate the DMC process supported by social CRM
(Figure 5). The research model is partly adapted from a study of Merisavo
(2008, 7) on the interaction between digital marketing communication and
customer loyalty. The model is completed with contemporary research findings
from the marketing research on value co-creation (Vargo & Lusch 2008; Vargo
2009; Grönroos 2011; Ballantyne & Varey 2008) and trust (Morgan & Hunt 1994;
Pavlou & Gefen 2003). The elements of social CRM were added to the model,
because it has been proposed that they give significant inputs to DMC (Wollen
et al. 2011, 102; Wilson 2010).
Figure 5 The proposed research model of DMC (partly adapted from Merisavo
2008, 7; Evans & McKee 2010, 235)
The research model of DMC has three parts: communication means, its
moderators and the outcomes of the communication. To the means, by which
the marketing is implemented, the model includes communication frequency
and communication content. To the factors that could have an influence on the
digital marketing include channel preference and interactivity. Finally, it is
proposed that the outcomes of DMC are value co-creation, trust, commitment
and loyalty. Next these elements are presented more detailed.
23
3.3 Communication means
3.3.1 Communication frequency
Frequency of the communication is an important aspect when using digital
marketing tools. Balancing with the right amount of messages is a difficult task
for marketers. Up to some point communication is perceived positively, but
after the ideal point is exceeded, the customers react negatively (Godfrey et al.
2011). There is a genuine risk of losing your customer due to overcommunication. Cone’s (2010) Consumer New Media Study found out that 58%
of the customers stop following the company via new media, when a brand
over-communicates (e.g. too many messages or spam). Excessive
communication or overt advertising can even lead to a user abandonment of the
whole social media site. However, academic literature is still lacking empirical
support of the effects of over-communication in social media environment.
(Taylor, Lewin & Strutton 2011.) Yet, there is evidence from traditional media
environments that the positive effects of repetition of a message start to
diminish after a certain level of repetition. Godfrey et al. (2011) defined this
level as an ideal point and they argue that there is for each channel an ideal
level of communication volume.
However, frequent communication has shown to have positive effects on
customers’ brand loyalty. Merisavo (2008, 38) demonstrates that regular digital
brand communication had a positive impact on customer loyalty. Also a study
of email advertising in Finland indicates that the frequency of email advertising
has an influence on purchase visits to the store (Martin, van Durme, Raulas &
Merisavo 2003.) This means that regular contact with customers has a positive
effect on customer loyalty. Hence, frequent communication is an essential part
of the means of DMC.
3.3.2 Communication content
Goodman and Dion (2001) suggest that it is not the quantity but quality of
communications that further commits the distributor to the manufacturer and
creates loyalty. In this light, the content of the communication is more
important than the frequency. The content of communication can be divided
into two dimensions: promotional and relational communication. Promotional
communication includes e.g. price and product promotions and persuasive
letters. Relational communication however focuses on improving customer’s
attitudes in the long run. These include information about new products, usage
tips or invitations to events held within a business arena. (Merisavo 2008, 11.)
Relational communication is more than just advertising products or
services. It is meant to communicate about specific themes around the product,
keeping the customer engaged and active. As Merisavo points out (2008, 11),
24
relational communication can be perceived as a service rather than an
advertisement. Where non-loyal customers want promotional offers, loyal
customers appreciate news, invitations and usage tips (Martin et al. 2003;
Merisavo 2008). Hence, the relational communication is something more than
information about the product or service, it has some extra value for the
customer.
Promotional content, however, seems to have a negative effect on loyalty.
Mela, Gupta & Lehmann (1997) demonstrated that promotional content in
communication, such as price promotions, has an impact on price sensitivity.
This means that the more advertisements with price related content are shown,
the lower the barrier of changing the product or brand becomes. The same
results have reported Reibstein (2002) noting that price-sensitive customers are
less loyal also in the online environment.
The recent social media literature emphasizes the meaning of the
relational content (Weber 2009, 21; Halligan & Shah 2010, 29; Forsgård & Frey
2010, 22-24). Forsgård and Frey (2010, 22) describe relational content and
exclusive topics as social objects. Social objects are the forces that draw people
together to discuss and share. To be able to draw some attention and promote
discussion organizations need to understand customer’s opinions, attitudes and
values. (Forsgård & Frey 2010, 22-24.) The content in new marketing does not
contain only professional generated content that is controlled by marketers. The
content of the communication is now a mix of professional and user-generated
content. A company can freely impress their thoughts and views, but usergenerated content continues the dialogue by letting you know whether
customers agree or disagree. (Weber 2009, 34; 40.)
Communication content is the second substantial means of DMC. Taken
together, the study proposes the following:
Proposition 1: The means of DMC for B2B companies include communication
frequency and communication content.
3.4 Moderators of digital marketing communication
The communication initiatives, their content or frequency, are not the only
influencing factors affecting customer experience. In order to succeed in
marketing, certain moderators need to be taken into consideration. There are
factors that influence on the marketing’s effectiveness and the outcomes and
these factors are not entirely in a company’s control. A careful investigation and
research on these factors and utilizing moderator information can, however,
enhance the effectiveness of the marketing activity. In this research channel
preference and interactivity are proposed as the main moderators of DMC.
25
3.4.1 Channel preference
In buyer seller relationships, the communication is mediated through a certain
channel. In B2B relationships, these channels can be such as email, phone, the
Internet or a social network. Channel choice decision is not trivial since it is
possible to increase profits by matching the channel of communication with
customer preferences (Venkatesan and Kumar 2004).
Cano, Boles and Bean (2005) note that media choice decision is influenced
by three main things. First, the medium needs to have capacity to bear the
richness of the message. Second, the social influence of the others influence on
individual’s evaluation of a medium. Third, the economics of the sales process
affects the media choice in B2B setting. Especially the cost effectiveness has
influenced the adoption of computer-mediated communication channels in
business interactions. So far, the most used digital channels have been email
and extranet, but latest technology and cultural development have enabled
social media adaptation into the sales process. It is argued that leveraging social
media can enhance brand awareness and ultimately increase sales (Barwise &
Meehan 2010).
Cano et al. (2005) found out that in buyer seller relationships different
mediums are preferred at various stages of the sales process. Overall the faceto-face interaction is still the most appealing communication medium, but at
certain stages of the selling process also computer-mediated communication
can serve a low cost option for interaction (Cano et al. 2005). Next, the aspects of
both traditional digital channels and social media channels are introduced.
Traditional digital channels
Company’s web site is the most important tool for online marketing activities. It
can be used for communicating with target groups, interacting with them,
sharing information and delivering customer facing applications (De
Pelsmacker et al. 2007, 496). Hence, the web site is an important marketing tool
for appealing customers, delivering service or facilitating transactions (Song &
Zinkhan 2008). Web sites can be built for the purpose of service or information
sharing. They need continuous traffic-generating efforts, such as online
advertising, search engine optimization, offline advertising and other corporate
media for leading the traffic towards the site (De Pelsmacker et al. 2007, 496).
The web site can operate as a communication channel in both ways in the
buyer-seller relationship. Web sites give information about the brand, products
or services. Corporate web sites can also offer insights to the markets or user
tips for the products. Customers can give feedback on the web site or ask the
representative to connect. Web sites can be designed as an active
communication channel. Although Usunier and Roulin (2010) found out that
B2B web sites are often designed as a one-way communication channel, where
the content is primarily designed by the sender with relatively little (or none)
feedback from the receiver.
26
As a part of web site design, extranets have been for long used for
customer communication. Extranets are closed web applications designed for
customers, partners or suppliers (e.g. specific third parties) to access selected
parts of the internal corporate information (Baker 2000). Baker (2000) identified
four functions of extranets: information sharing, strategic communication
between companies, providing access to key information and safeguard the
information and the way it is communicated. In recent years, the extranet term
has been partly replaced with the terms of closed community or brand
community.
Companies have also started to introduce interorganizational systems to
their daily operations. The key goal of these systems is to improve the
coordination between buyers and suppliers through integration. (Grover &
Saeed 2007.) Interorganizational systems can have instant messaging features
(chat), global network possibility and open content and delivery platforms. The
information sharing in buyer-seller relationships is one of the major advantages
of an interorganizational system, but it may also generate concerns about how
the information is used. However, free information flow can create efficiencies
within the supply chain. (Grover & Saeed 2007.)
However, in this new technological era still the majority of B2B interaction
is done by email. It is a low cost medium, which offers ability to target and
personalize communication. Emails are used in marketing purposes for instance
in sharing product information, building brands or guiding them to web sites.
Emails are used in cross- and upselling purposes to increase purchase activity.
(Merisavo & Raulas 2004.) Emails are used in such intensity that it has formed a
counteraction, when customers are directing emails straight to spam inboxes.
The problem has been that emails usually focus on the promotional offers,
instead of interpersonal characters (Hosford 2011). However, email marketing
can still be used as a medium for increasing customer loyalty by providing a
tool for frequent and active interaction with customers (Merisavo & Raulas
2004).
Social media channels
Social media channels offer several tools for reaching customers,
communicating with them and measuring their online actions (Hennig-Thurau
et al. 2010). The new Internet tools and channels can be defined in many ways.
Here, in this research, the social media concept is used. In literature the terms
social media and web 2.0 are used as synonyms (Constantinides & Fountain
2008). However Lehtimäki et al. (2009, 12) specify that social media refers to a
new information channel where web 2.0 tools are applications to use that
channel. In other words web 2.0 tools are technologies that enable users to
communicate, create and organize content and content sharing between
communities and social networks (Lehtimäki 2009, 7-12). The user generated
content is a key element in social media and is only made possible by the active
participators in online communities (Lietsala and Sirkkunen 2008, 18).
27
In table 3 the different social media categories are specified and illustrated
with examples. Social media categories include blogs, social networks,
communities, content communities, forums and content aggregators
(Constantinides & Fountain 2008). All of these channels can be used in B2B
marketing communication. Some channels suit better for information mining
and monitoring, and others for maintaining the conversations with customers.
(Gilling & Schwartzman 2011, 161-162).
Greenberg (2010a, 124) argues that what is said to be social media depends
on the level of sophistication the tools are applied. Social media can be tools,
such as blogs or wikis. Some are organized around user generated content, such
as social bookmarking, comments, pictures or videos. (Greenberg 2010a, 124.)
The relevancy lies behind the fact that it is not the tools that make interaction
social, but the way the tools are used. This is why a blog can be one way
marketing channel or two-way interaction channel.
Table 4 Social media categories (Constantinides & Fountain 2008; Lehtimäki et al. 2009, 14)
Category
Blogs and podcasts
Social networks
Communities
Content communities
Forums
Content aggregators
Focus
Informing of current events and
novelties
Maintaining
relationships,
content sharing, networking
Member-initiated
Members’ mutual interests and
reciprocal interaction
Examples
blogs, video-blogs, podcasts
Facebook, LinkedIn, MySpace
Aukea.net, community around
photography
Organization-sponsored
Business transactions, brand
building, interaction between
organization and customers, cocreation of products
Dell, Salesforce.com
Third-party established
Enable
communication
and
transactions between buyers and
sellers
Content sharing
eBay, covisint.com, bolero.net
Discussion of mutual interests
Categorizing and customizing of
web content
YouTube, Flickr, Picasa,
Wikipedia, organization wikis
B2Bexchanges, Suomi24
Delicious, Yahoo, Widgets
There are several online channels for marketing communication: web sites,
extranets, interorganizational systems, emails and different social media tools.
There can be many reasons why some channels are chosen over the other.
Foster (2005) points out that also the degree of value creation can influence the
choice of channels in buyer-seller relationships, where the channel has to ensure
that the value can be not only taken out, but also put in. Chaffey (2010) states
that the different customer personas, preferences and needs are the ones which
need to be considered when forming a digital channel strategy.
28
Nevertheless, not only do the individuals’ own attitudes explain the
channel choice, but also the environment has an effect on the adaptation of
some channels. In B2B relationships, the firms have to make decisions which
channel they want to use in collaborating with business partners (Asare,
Alejandro, Granot & Kashyap 2011). Ambrose, Marshall, Fynes & Lynch (2008)
found out that communication media is affected by the stage of the relationship
development. They suggested that the communication media is chosen on the
basis of the needs of the participants and the stage of the relationship
development.
The channel preference is a complex phenomenon, but needs to be
investigated profoundly, while researchers believe that marketing is only
effective when using the channels customers prefer (Merisavo 2008, 18).
Personalization of the communication to meet the right channels can be
influential in the DMC process. Therefore, it is proposed that channel
preference is a moderator of DMC.
3.4.2 Interactivity
Interactivity can be defined as the degree to which two-way communication is
facilitated. It can mean the availability of different customer support tools or
communication tools.
(Srinivasan et al. 2002.) According to Sundar,
Kalyanaraman and Brown (2003) there are three different views to perceive
interactivity: functional view, process view and perception view. The functional
view of interactivity is the interface’s capacity to carry out a dialogue or
information exchange between the user and the software (Sundar et al. 2003.)
This means that the interactivity can be measured by the number of functional
features in a given communication tool. These features can be email links,
feedback forms, chat rooms or other commenting possibilities. These functions
should enable the mutual conversation and interconnection of messages
(Sundar et al. 2003).
The process view of interactivity underlines the interdependency of
messages. In this view, the interactivity is seen as a process where the messages
are contingent upon previous messages (Sundar et al. 2003). This means that a
company has to learn from the previous messages to be able to continue the
conversation with the customer. The importance of continuing conversation
and learning from the customer is underlined in the concept of social CRM,
where the company must engage in the process of interactivity (Greenberg
2010a, 34-37). The perception view of interactivity underlines the fact that the
level of interactivity is always perceived by the customer. This mean that
interactivity actually is in customers’ eyes, not in the systems. (Song & Zinkhan
2008.) Therefore it is actually about customers’ attitudes towards a
communications tool or web site.
Interactivity between a customer and a company increases the number of
brand contacts and time spend with the brand or company. If a company uses
interactive media and interactive tools, it can enhance customers’ service
perceptions and contribute to value co-creation. (Merisavo 2008, 21) Venkatesan
29
and Kumar (2004) found out that a customer who made contact through an
online channel of communication had higher involvement and a higher
purchase rate. In addition Srinivasan et al. (2002) showed that interactivity had
a significant impact on eloyalty. Hence, the level of interactivity can have
influence on the effectiveness of the messages and the overall perceptions of the
marketing communication. Both channel preference and interactivity can
mediate or moderate the effect of digital marketing communication. Therefore it
is proposed:
Proposition 2: The moderators of DMC for B2B companies include channel preference
and interactivity.
3.5 Outcomes of digital marketing communication
In this chapter, the possible outcomes of the digital marketing communication
are examined. A literature review revealed four possible outcomes of digital
marketing communication: value co-creation, trust, commitment and customer
loyalty. These outcomes are traditionally studied in the offline context. For
instance, Caceres and Paparoidamis (2007) state that relationship marketing is
based on the fundamental principles of value creation, commitment and trust,
which will lead more likely to customer satisfaction, which in turn will indicate
the likelihood that the customer will stay loyal to the company. In this chapter,
these fundamental principles are examined in more detailed in the context of
digital marketing and online channels.
3.5.1 Value co-creation
Traditionally, value has been studied as a property of a product. Customers
have been seen to get value from purchasing and using a product. For instance
Sweeney and Soutar (2001) suggested that there are four dimensions of
customer value: emotional value, social value, functional value related to price
and functional value related to quality. Emotional value is described as utility
which is derived from the feelings that a product generates. Social value is the
utility derived from the product’s capability to enhance social self-identity.
Functional value as price is the utility from the reduction of short and long term
cost and functional value as quality is the utility derived from the perceived
quality and performance in the customer’s hand. (Sweeney & Soutar 2001.)
In recent studies, value is no longer seen as the property of goods, which
is created by the firm. The firm can only give value propositions and then
collaboratively create value with the customer. (Vargo 2009.) This idea was
created by Vargo and Lusch (2004) as they introduced a service centered
dominant logic, which implies that a customer is always a co-producer of
services. Later they specified their theory around a concept of service-dominant
(S-D) logic, which is based on nine foundational propositions (Vargo & Lusch
30
2008). In service-dominant logic, the service is the fundamental basis of
exchange. The theory focuses on the process of collaborative and reciprocal
value creation. S-D logic stresses the fact that a company should always
maximize customer involvement in customization to fit customer needs. (Vargo
& Lusch 2004; 2008; Vargo 2009.) Suppliers are crafting value propositions to
consumers on the basis of their needs, matching their offerings to customers’
processes and practices. In a way, they are providing a service when
customizing their offerings. Therefore it is said that all companies are ultimately
service businesses. (Grönroos 2011; Vargo & Lusch 2004.)
Value, according to this S-D logic, can only be created with the support of
a supplier. In B2B relationships, the product or service is often created and
produced with the customer, since the business solutions need almost every
time specialized features or adjustments. Therefore the roles of producer and
consumer are not distinct. As the company gives only value propositions, the
perceived value of the service is value-in-use rather than value-in-exchange.
(Lih‑Bin & Hock‑Hai 2010.) In B2B relationships, the value-in-use can be,
according to Grönroos (2011), increased revenue and business growth
generating capacity such as new market opportunities or better customer or
market penetration. B2B value can also be derived from customers’ decreased
cost levels, because of the lower operational or administrative costs. Hence,
decreased costs mean higher margins. Last but not least, value can be derived
from the effects on perceptions, such as increased trust and commitment to the
partner and increased comfort in the interactions. (Grönroos 2011.)
Company’s marketing activities and customer’s purchasing and usage are
seen to be interlaced and intertwined with value creation. In this respect
supplier-customer interactions are in a strategic position in marketing.
Suppliers can engage themselves in customers’ value creation by incorporating
activities in supplier-customer interactions in the marketing process. (Grönroos
2011.) In fact managing communicative interactions are becoming the central
functions of marketers (Ballantyne and Varey 2008). In the same vein, Prahalad
and Ramaswamy (2004) state that value co-creation is about creating an
experience environment where the customers can have active dialogue and coconstruct personalized service experiences.
Ballantyne and Varey (2008) note that value co-creation is more likely in a
web-wired world. Value co-creation can take place in an integrated network,
which can include customers, suppliers and competitors. Present-day
interactive web sites and portals enable them to work together. (Ballantyne and
Varey 2008.) Sawhney and Parikh (2001) agreed that the digitalization of
information has essentially changed the way the work is done and the value is
created in the economy. The customers expect companies to provide them with
the ability to do purchase activities in the channel that is most convenient for
them. In value co-creation process the company must offer channels for
customers to interact with informational content, human resources and
technical resources, where the customer combines physical and online channels
to create value for themselves. For these activities, companies must offer self-
31
service technologies in addition to the traditional web site technologies.
(Lih‑Bin & Hock‑Hai 2010.)
Technological development offers many new business models, platforms
and approaches for online value co-creation. The active, informed and
networked customers use these channels for co-creating value with the
company. This leads to a conclusion that a medium that fosters interactivity
with informational content, human resources and technical resources has a
positive effect on value co-creation. Therefore it is proposed that value cocreation is an outcome of DMC.
3.5.2 Trust
In B2B markets trust is found to be a more important mediating factor of loyalty
than in consumer markets. In the B2B relationships the stakes are higher and
companies must trust the seller to deliver the service performance ordered,
since their own profitability is dependent on that service. (Briggs & Grisaffe
2010.) Pavlou and Gefen (2003, 3) define interorganizational trust as “one
organization’s (trustor’s) belief that the other party (trustee) in the exchange
relationship will behave in accordance with the trustor’s confident
expectations.” Morgan and Hunt (1994) summarize trust to be present when a
party has confidence, or in another words fate, in other party’s reliability and
integrity. Interorganizational trust is bilateral and it is formed by
interorganizational processes, norms and behaviors (Morgan & Hunt 1994).
Trust in B2B relationships can also be institutional trust. Pavlou & Gefen
(2003) describe that institutional trust means that “intentions and behaviors are
generated by the situation that facilitates outcome success”. The secure
situation can be provided through third party actor or by other safety nets or
guarantees. Traditionally, B2B relationships have relied heavily on legal bonds
where trust in relationships has been developed with the help of these
assurances. In online environment the same guarantees are needed. In these
situations, the third party institutional structures are generally used, where a
web site or another community acts as a secure place to take actions. In B2B
world, special online intermediaries like B2B marketplaces offer such structures
to enhance trust. (Pavlou & Gefen 2003.)
Pavlou and Gefen (2003) suggest that there are three dimensions of
interorganizational trust: competence, credibility and benevolence, or in other
words, goodwill. Competence is one’s capability to fulfill promises and
contracts. Credibility refers to one’s reliability, predictability and honesty to
fulfil obligations. (Pavlou and Gefen 2003.) Benevolence is, however, a higher
level of trust than competence or credibility. Because trust is based on goodwill
and not calculations and ability, it can be said that it is significant and focal part
in trust. (Pavlou and Gefen 2003.)
Greenberg (2010a, 317) argues that transparency and authenticity in online
environments are the cornerstones of the establishment of trust in a company
by its customers. Also Weber (2009, 17) points out that transparency is critical, if
a company wants customers to trust them and engage in a dialogue with them.
32
In the social web a company or an employee must tell who they are and what
they represent. Customers are looking for an actual conversation about the
company with the representatives of the company (Greenberg 2010a, 317). Trust
in a company can also be gained through word-of-mouth, where someone close
to you, or in the same position as you, recommends you something (Soininen et
al. 2010, 189).
Wagner et al. (2011) states that it is important to remember that corporate
reputation is closely related to trust and suppliers should consciously develop
good reputations. Trustworthiness and fairness can be included in the value
statements of annual reports, previous customers’ statements, expert opinions
or publishing best practices. (Wagner et al. 2011.) These all can be distributed
and shared online in different communication channels.
In present-day B2B relationships, trust enables both parties to share
internal and market information (Ballantyne & Varey 2008). In turn, sharing
information and communicating valuable market intelligence develops trust
(Morgan & Hunt 1994). Hence, ongoing communication fosters trust. Therefore
it is proposed that trust is an outcome of DMC.
3.5.3 Commitment
Commitment is a strong indicator of relationship durability. The relationship
building and maintaining take time and effort. To build a relationship, the
commitment of both relationship-specific and human effort is needed. (Sharma,
Young & Wilkinson 2006.) Morgan and Hunt (1994) have proposed that
commitment is the most crucial factor in successful relationship marketing.
Also Huang et al. (2007) indicate that customers would stay in a relationship
with a supplier only when they are psychologically and economically
committed. Thus, commitment can ensure the long lasting relationship.
Commitment has been defined by Moorman, Zaltman and Despandé (1992,
316) as “an enduring desire to maintain a valued relationship”. Studies show
that commitment has four components: affective, positive calculative, negative
calculative and normative commitment (Čater & Čater 2010; Sharma et al. 2006).
Sharma et al. (2006, 65; 69) has described affective commitment as “a desire to
develop and strengthen a relationship with another person or group because of
familiarity, friendship, and personal confidence built through interpersonal
interaction over time”. Thus, affective commitment refers to positive feelings
and attitudes towards the relationship partner. Both parties of the relationship
stay in a relationship because they want to. Affective commitment plays a more
important role in maintaining the relationship than other motives (Sharma et al.
2006).
Calculative commitment has a negative association although it also can be
seen in a positive light. Sharma et al. (2006) present that calculative
commitment can be negative as locked in commitment or positive as value-base
commitment. If there is lack of alternatives in the market or switching costs are
too high, commitment can be locked-in. (Sharma et al. 2006). In online
environment locked-in commitment is problematic while the switching costs
33
are low and online users can easily switch to another provider (Huang et al.
2007). Value-based commitment is developed from rational calculation of
benefits that parties get from continuing the relationship. In these relationships,
the parties see that they can get direct or indirect advantages such as
information, referrals or efficiency gains. Whereas normative commitment
derives from what is seen as moral duty or responsibility towards the partner.
In these relationships, parties stay in the relationship because they ought to.
This duty comes from formal or informal rules, such as social norms, traditions
and customs. (Sharma et al. 2006)
In recent literature, the corresponding concept for the first component,
affective commitment, is engagement. Companies try to engage customers in
conversations and activities with the company in order to build stronger and
more successful business relationships. (Solis 2011, 141.) Greenberg (2010a, 321)
points out that providing customer knowledge, instead of marketing
promotion, the willingness to engage increases. Also studies on digital
marketing emphasize the engagement in building the relationship with the
customer. The marketers are trying to get customers to involve in the
consumption of the organizational content, for instance with blogs. (Ahuja &
Medury 2010.)
Commitment is achieved through communication. Morgan and Hunt
(1994) present in their findings that communication has a positive and indirect
impact on the relationship commitment. They point out that communication
that builds trust, indirectly influence relationship commitment. (Morgan &
Hunt 1994). Also results from Goodman and Dion (2001) indicate that effective
communications do in fact play a significant role in the development of
commitment. Anderson and Weitz (1992) show in their results that two-way
communication raises the commitment levels of both the supplier and the
customer. Since digital marketing communication is two-way and interactive
(Merisavo 2008), it is be proposed that commitment is an outcome of DMC.
3.5.4 Loyalty
Generally speaking, loyal customers are more profitable, because they buy
more (Harris & Goode 2004). In the business environment, the determinants of
customer loyalty are still unclear (Caceres and Paparoidamis 2007). Oliver
(1999, 34) defines loyalty as “ a deeply held commitment to rebuy or patronize a
preferred product/service consistently in the future, thereby causing repetitive
same-brand or the same brand-set purchasing, despite situational influencers
and marketing efforts having the potential to cause switching behavior”.
There are two kinds of loyalty indicators: behavioral loyalty and
attitudinal loyalty. According to Caceres & Paparoidamis (2007) behavioral
loyalty refers to the repeated purchase of the brand. They suggest that
attitudinal loyalty refers to “a degree of dispositional commitment (in terms of
some distinctive value associated with the brand)” (Caceres & Paparoidamis
2007, 839). Both can indicate future behavior, but the attitudinal loyalty is more
enduring than behavioral loyalty, which can be affected by the situational
34
factors (Caceres & Paparoidamis 2007). Attitudinal loyalty is close to the term
commitment, but can contain different meaning. A person can be committed
through regulations and other agreements, but “true loyalty” can be attained,
according to Dick and Basu (1994) only through “a favorable attitude that is
high in comparison with potential alternatives”. The attitudinal loyalty is
manifested also through patronage intentions or intentions to increase the share
or volume of the purchases (Briggs & Grisaffe 2010).
Behavioral loyalty can be estimated from the purchase records, but
attitudinal loyalty is more difficult to examine, and typically involves a
customer survey or some other research. Recent studies state that word-ofmouth (WOM) can indicate sender’s behavioral loyalty (Garnefeld, Helm &
Eggert 2010; Briggs & Grisaffe 2010). It is not only an indicator of loyalty; it can
be an accelerator of loyalty. Garnefeld et al. (2010) demonstrate that articulating
WOM has also respectively an effect on sender’s attitudinal and behavioral
loyalty. This means that, not only does the articulation of WOM indicate the
level of customer loyalty, it can also increase sender’s loyalty level. In business
environments marketers can encourage WOM by introducing referral reward
programs and other instruments that would stimulate positive WOM.
(Garnefeld et al. 2010.) In digital environments, the positive WOM can be
articulated through the Internet and social networks sites and other sharing
instruments (Trusov, Bucklin, & Pauwels 2009).
Fostering WOM could be the additional method of increasing customer
loyalty. By offering a chance to make a referral to a colleague, WOM can act as
information source for customers how they feel about the service. If the
customer has not built a strong attitude yet, articulating a referral could
increase their affective commitment. In this light WOM should be considered as
a method in retaining current customers. (Garnefeld el al. 2010.)
MacDonald and Smith (2004) found out that satisfaction with technologymediated communication had a positive and direct effect on future intentions.
This is why it could be proposed that loyalty is an outcome of DMC. The last
proposition can be formed as:
Proposition 3: The outcomes of DMC for B2B companies include value co-creation,
trust, commitment and loyalty.
35
4. EMPIRICAL STUDY
This study is an attempt to clarify what belongs to DMC and which meanings
the companies give to the means, moderators and outcomes of DMC. In
addition, the meanings of social CRM are also examined. The research field of
digital marketing is quite new and there is no explicit theory of marketing in
digital environments (Mulhern 2009). This is why qualitative methods are used,
because the research is done in unexplored and not foreseen area (Hirsjärvi,
Remes & Sajavaara 2009, 81-82). Mason (2002, 2; 3) states that qualitative
research is flexible and sensitive to the context, giving information about how
things work in this particular environment. To investigate a phenomenon that
is in a tight relationship with context, a case study design was chosen. Yin
(2003, 9) states that a case study as a specific research strategy has advantages
when “ a “how” or “why” questions is being asked about a contemporary set of events
over which the investigator has little or no control”. In this research exploratory
design is used to gain more knowledge about the specific phenomenon.
4.1. Case study design
Bonoma (1985) argues that case studies are particularly useful, when the
phenomenon cannot be studied outside of the context. Yin (2003, 2) suggests
that the case study method is the way of understanding real-life events and
complex social phenomena. The phenomenon is not isolated from the context
as, it is actually being investigated because of its relation to the context.
(Johnston, Leach and Liu 1999.) In this study, digital marketing communication
in B2B relationships cannot be investigated outside of inter-firm context, but as
a part of the B2B communication.
The case study design does not usually stress the importance of theory
and especially theory testing in the research. However, some studies (Johnston
et al. 1999; Bonoma 1985; Yin 2003) argue that also in case study design the
theory and hypotheses should be developed prior data collection. Until the
36
theory is described, the operational measures cannot be determined (Bonoma
1985). These measures and defined hypotheses or propositions guide the
research and decisions made in the research design. (Johnston et al. 1999).
Following this approach in case study design, the theory in this study was
developed a priori and the propositions were defined beforehand to guide the
empirical research.
Forming the research model was not an easy task, because prior research
in the area was limited. The research model was formed based on Merisavo
(2008, 7) and few things were changed, such as perceived value was changed to
value co-creation and trust was added to the model. After familiarizing with the
theory, the model was revised, leaving only channel preference, interactivity
and other moderators to the moderators’ part of the model. Then, the social
CRM theory was integrated in the model, placing listening, responding,
connecting and collaborating as a part of DMC model. At the last stage the
other moderators, such as customer characteristics and relationship, were
removed from the model due to the focus of the study. This evolution
demonstrates that the elements in the research model were carefully evaluated
and selected when the theory building proceeded.
After the research model and the theory were carefully described, it was
possible to form the actual research design. In research design there are three
points that should be considered (Johnston et al. 1999): what the unit of analysis
is, which the appropriate cases are and what data and how the data is collected. In this
situation, the unit of analysis could have been the individual, group or the
entire firm in the B2B relationships. However, the communication is always
between individuals, not firms. This is why the unit of analysis was chosen to
be individuals acting in the relationship.
Next, the actual case was chosen. It has been argued that multiple-case
design is more preferable (Johnston et al. 1999), but due to resource and time
limitations, single case study was chosen. In the case study design there are no
sampling units, but only carefully chosen cases. The focus is to choose the case
or cases that are best suited to investigate the theory. (Johnston et al. 1999.) This
is why the case was carefully chosen to represent the theory of CRM in B2B
context.
The context where the research was conducted included five companies
and their relationships. One company acted as a case company, the four others
were its customers. The case company was chosen on the basis of its interest in
the research in digital marketing communication. The case company was a
participant in the DIMAR project that investigates digital marketing
communication in industrial firms. In addition four customer companies were
selected among case company’s customer base. These customer companies were
also selected because of their participation in the same research project. The
case company and the customers were not chosen because of any other defining
attributes. They all represented different sized firms and they were all from
different industries (see table 5).
37
Table 5 The case firm and its customers
Company
Employees
Revenue
(2010)
(2010)
X (case company) 17 097
1 713 million €
A
B
C
D
8 036
6 325
1 333
34
3 535 million €
1 419 million €
719 million €
5,3 million €
Industry
Information technology & data
processing
Paper and cardboard manufacturing
Iron and steel manufacturing
Peat production
Steel product manufacturing
From each customer company one representative was interviewed. On the case
company side four client executives were selected, according to their
participation in customer relationship work with each selected customer firm.
All together eight people were interviewed for the study (see table 6). The case
company helped in finding the right people responsible for the particular
customer companies. These interviewed client executives were therefore
selected by the company itself. However, the representatives of the customers
were selected by the client executives. This small snowball sampling method
was selected, because it secured that the right people are interviewed from
customer firms, leaving out the people who were not active in the relationship
with the case company.
Table 6 List of interviews
Name
Company Participant Details
CE_A
X
Strategic Customer Executive, responsible for one strategic
customer (Tier 1), male,
CE_B
X
Strategic Customer Executive, responsible for a one strategic
customer (Tier 1), male, 22 years in the company, 2 years in this
position
CE_C
X
Customer Manager, responsible for many customers (Tier 2/3),
male
CE_D
X
Customer Manager, responsible for many customers (Tier 2/3),
female
CUST_A
A
Vendor Manager, Tier 1 customer, responsible for 20 vendors,
female
CUST_B
B
Business IT manager, Tier 1 customer, male
CUST_C
C
Chief Information Officer, Tier 2/3 customer, male,
CUST_D
D
Chief Information Officer, VP, Tier 2/3 customer, male
After the case selection, in the data collection phase it was considered how the
data could be obtained and what kind of data suites the research design the
best. To allow for triangulation, the evidence from multiple resources needs to
be collected (Johnston et al. 1999). This is why it was decided to investigate the
relationship from both sides, collecting the evidence from the seller and the
buyer in B2B relationships. The data needed was to get individuals’ meanings
of digital marketing communication. Next, data collection is described more
detailed.
38
4.2 Data collection
Interviews are important sources of case study information (Yin 2003, 89) and
they are extensively used in B2B research (Johnston et al. 1999). With interviews
the perceptions or knowledge of multiple respondents are aggregated (Stake
1995, 65). The data was chosen to be collected through interviews, because a
survey can be a problematic method in the business-to-business context.
Johnston et al. (1999) point out that in B2B situations many context variables can
influence organizational behavior and the respondents of the survey only see
the partial picture of the entire process.
Yin (2003, 90) states that most commonly case study interviews are openended in nature, consisting of both facts and opinions about the events. This
study was conducted as focused interviews, where the interviews still can
remain open-ended, but follow a certain set of questions related to the research
themes (Yin 2003, 90). Hence, the interviews included unstructuredundisguised questions (Churchill 1999, 286) derived from the research themes:
social CRM, communication, channel preference, interactivity, value cocreation, trust, commitment and loyalty. This theoretical background helped
forming the topic guides for the interviews. The themes were selected according
to the research model.
The themes remained the same both in client executive and customer
interviews. These original topic guides are presented in the appendices 1a and
2a (in Finnish). The appendices 1b and 2b are translations of the original topic
guides. The presented questions in the guidelines were not necessarily asked in
that form, but they provided assistance for the interviewer to carry on the
interview, if the respondent was not very talkative. The topic guide also helped
the interviewer to remember to go all the themes through. The themes in the
topic guide were not followed in that exact order, giving the interviewer the
chance to ask questions related to the responds. This method ensured that the
themes were examined comprehensively, not only restricting to the research
topics. This way the respondents were able to express new things and topics,
not included in the predetermined topics.
All eight interviews were carried out during summer 2011 in Finland.
Client executive interviews were carried out on the premises of company x and
three out of four customer interviews were conducted on the premises of each
customer firm. All interviews were held in quiet and peaceful conference
rooms. One interview was conducted through telephone. The interviews were
conducted in Finnish, providing chance for the interviewees to express their
thought in their mother tongue. Before the interview, an email was send to the
respondent to give a narrow view what the interviews concerned. Some
respondents were at first little uncertain to answer the questions, because they
felt that some subjects were not close to them. Every interview was started with
an easy question about their work, to ease out the tension. Some respondents
talked freely while others were more withdrawn to provide information. Some
39
respondents gave very superficial and neutral responses while others freely
expressed their insights and opinions. Some respondents answered shortly to
the questions while others discussed the issues more widely. This had an effect
also on the length of the interviews. The recordings ranged from 1 hour and 9
minutes to the shortest of 32 minutes. The average the length of the interview
was 50 minutes. All the respondents were asked for permission to record the
interview. The interviewer also emphasized the confidentiality of the responses
and explained that no personal information will be presented in the research
report, where the identity of respondents could be identified.
The interviews were transcribed right after the interviews, when the
interview session was fresh in memory and the transcribing easier to make. The
transcription itself was made word to word according to the interviews, with
minor exceptions when the word was not noticeable or considered insignificant
related to the research question. The pauses in the speech were not marked in
the transcription, while only the opinions and thoughts were investigated. The
transcriptions were double checked by listening to the recordings twice. All
together 79 pages of transcription material was collected and used in the data
analysis.
4.3 Data analysis
According to Yin (2003, 109) data analysis is the “examining, categorizing,
tabulating, testing or otherwise recombining both quantitative and qualitative
evidence to address the initial propositions of a study”. In the analysis, the
transcriptions were examined with human-coded content analysis. This method
is usually used to make conclusions or inferences from the text. The idea is that
a text is divided to smaller pieces and classified in the content categories. These
categories can have word, phrases or other units of text, but they have the
similar meanings. (Weber 1990, 10;13.) Yin (2003, 111; 112) states that for
analyzing the data, the preferred strategy is to follow the theoretical
propositions. The research objectives and design are based on the theory and
the propositions, so the case study analysis can be guided by the theoretical
orientation. Yin (2003, 112) argues that propositions help focusing attention on
some data, and ignore others. This is why the data analysis followed the
theoretical propositions, analyzing the transcriptions with the help of the
theoretical background.
In the first phase, each transcript was read through several times making
first notes in a notebook. The aim of the first reading was to get an overview of
the data. After that the transcripts were analyzed from the viewpoint of the
theoretical background. The topic guide and the theoretical themes helped
forming a picture of the content of the responds. In the second phase, the
smaller pieces of content were picked out in the related categories. Here, a data
matrix was used to collect the data into one place. In every row there was data
40
from one respondent and each column included all the phrases from a certain
category or certain topic. The certain topics started to form under each theme
after long and comprehensive analysis. However, to some themes the research
data did not give any entries. This was expected, because the original research
model consisted of numerous entities, which were proposed to belong to the
process of digital marketing communication.
In the third phase, the transcripts were analyzed once again in order to
look for other themes that were not on the original theme list. The attention was
paid to certain themes that many respondents referred. These new topics were
added in the columns of the table as “additional” themes. This was done,
because the aim was to elicit respondents’ subjective construction of the
phenomenon, not just to present the findings which suited the theoretical
framework. Two new themes emerged from the data analysis.
These new themes as well as the themes supported by the theory are
presented in the result chapter. In order to express the findings in exact and
coherent way, direct quotes are used. In the results, the respondents are marked
with codes, CE meaning client executive and CUST meaning customer. By
separating the customer statements from the client executive statements, the
credibility of certain statements is higher. Customers provide their own feelings
and opinions, where client executives might provide an answer how they think
the customer would feel. Each code has a suffix that indicates the specific
customer relationship. For instance CE_A and CUST_A means that A is a
customer company that CE is responsible for and where CUST is working in. In
the direct quotes there are square brackets […] where the clarifying words are
marked, if the respondent have used “it”, “that” or someone’s direct name.
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5. RESULTS AND ANALYSIS
First, an interpretation and analysis can be conducted to determine whether the
case study confirms the initial research hypotheses. Then, independent
evaluation criteria should be employed to further examine the results and
interpretations. (Johnston et al. 1999) Some researchers argue that the findings
of a case study research should never be thought of as confirming theory
because the analysis is interpretive and subjective. This should be remembered
when reading through the results and analysis. The idea was to collect the
meanings and perceptions the interviewees give for DMC, and what they
considered important. The aim was also to collect the meanings of social CRM
in connection with digital marketing. Next the results are presented followed
by the theoretical guidelines.
5.1 Communication frequency
In B2B relationship it is hard to make a distinction between marketing
communications and so-called every-day communication. When asking about
communication as a whole, every respondent referred to a structured
governance model between the companies. This model is built in mutual
agreement between the buyer and the seller, to ensure the minimum
communication frequency in face-to-face settings. In the governance model
there are operational, tactical and strategic levels, which define the
communication frequency and the meeting schedules.
“There are operational level, tactical level and strategic level. The basic idea is
that we meet regularly and right people talk with the right people.” (CUST_A)
“There are strategic, tactic and operative levels. They build the structure for the
meeting schedules and the content, which subjects are dealt in different forums.”
(CE_A)
42
When the concept of communication was limited to marketing communication
and explicit to the promotional and relational communication, three customers
out of four answered that they get “fairly little” or “unusually little” marketing
communication. One respondent said that he gets marketing communication
“not so much that it would disturb”.
“In my opinion it [marketing material] comes fairly little.” (CUST_A)
“About the products they advertise unusually little.”(CUST_C)
“There come invitations to some seminars… But not so much that it would
disturb.” (CUST_D)
These findings could indicate that there is, in fact, an accepted frequency level
for marketing communication. If an answer is that it is “unusually little”, it
could indicate that there is an average where the respondent compares his
observations. In this respect the frequency of promotional or relational
communication is expected to be at a certain level. The reason for this can lie
behind the fact that the promotional content is considered an important
information source during the buying processes (Deeter-Schmelz & Kennedy
2002). This is why the business buyers are expecting certain amount of
marketing messages during a certain time period.
One customer said that the frequency depends on the activity of the
customers themselves. The information was said to be on the web sites
nowadays and if a customer wants direct emails about the product and
services, he or she can join a mailing list. If the frequency of the emails starts to
be too high, the customer can delete herself from the mailing lists.
“In my opinion it [marketing material] has moved to the web sites and from
there the information comes to emails… If it starts to be too much, you can get
rid of it. Many times if you get it [too much] to your email, you can delete
yourself from the lists. It depends on your own activity level, if it comes or not.”
(CUST_A)
The results show that there is a certain level of accepted frequency in DMC.
However, the customer can nowadays at some cases determine the level of
frequency by themselves. This way the ideal level point of communication
volume can be better suited for the preferences of the customer and risk of over
communicating diminishes (Godfrey et al. 2011). However, it can also be
argued that customers do not always know how to ask for more marketing
communication. There can be a danger that receptive customers do not get
enough DMC and all possibilities of sales growth are not utilized.
The results indicate that frequency of communication seems to include in
the means of DMC. Moreover, it can be perceived from the statements that for
every customer, there is an ideal level of communication. This point was not
exceeded in this case.
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5.2 Communication content
Communication content was mentioned being in the central of the DMC. Both
promotional and relational content were mentioned in the interviews and
suggested to be also needed in the DMC. Promotional content was referred to
content about the products and services a company can offer, like product
presentations or other delivery information. Relational content was referred to
reference cases and event invitations. In this case both customers and client
executives mentioned that there was fairly little promotional content in marketing
communication. The content was mostly said to be relational, such as event
invites or such. However, in this case the amount of promotional content was
not necessarily at perfect level. One customer said the company could tell more
about what the company can offer. Also a client executive pointed out that the
product and service offerings could be more on display. He said that the
company is seen as a “lump” and the service and product offerings do not
stand out. He wished more service descriptions and service models, all in all
precise service content.
“In my opinion they could tell little bit more about what can be found in their
company and what they can do.” (CUST_C)
“We are shown as a one big lump there. I think the advantage could be that we
would present our offerings through the social media. More than just who we are
and what we do. More about the product offerings and service offerings to
display. … More service descriptions and service models, and precise service
content.” (CE_B)
The wish for more promotional content or information about different products
can be the reflection of the diversity of product range. In this context, the case
company was a large firm with many product choices and options. In this
situation, the customers can feel that they do not know what the company can
offer or what choices there are available. This came clear from the client
executives’ comments, where they emphasized the fact that the variety of
product offering is sometimes as a surprise to many customers. One client
executive said that he has heard many customers saying that “you have also
this kind of service” or “you have done also this kind of solutions. Another
client executive said that he had noticed that he hears comments like “oh, you
do this kind of stuff too”.
“I have heard many customers saying that it has been surprise to them that “you
have also this kind of service” or “you have done this kind of solutions”.” (CE_C)
“If you talk with a person that deals with smaller details, you often hear that “oh,
you do this kind of stuff too”. “(CE_A)
44
The results show that there is not enough promotional content in the marketing
communication, if the customers do not know what the company can offer. The
lack of promotional content can be a conscious choice. The marketer might want
to minimize the information flow for the customers. This is why more and more
information has been moved to the web sites, where the product offerings and
service details are presented. However, it is unclear how well this information
reaches the customer. One customer said that the company’s web site is not
useful for him, because he thought that the need is so special what he is looking
for. Another customer said that he would prefer catalogues over web sites. He
said that at some point there were these catalogues, where the products were
presented in different categories. He said that such catalogues could be useful
for him although he pointed out that the information is now on the web sites.
The comment can show that the information that he needs is now actually
scattered in different places on the web sites, and he could prefer more
aggregated information sources.
“There are no use for me from their web site. The need is so special what I need.”
(CUST_B)
“At some point there were these catalogues, where the products were in software
categories… Those could be useful. Of course they are nowadays searched in the
web. If someone would maintain such catalogue, it would be great.” (CUST_C)
The information search is a central activity in a purchase process. It is important
to understand how and where the customer searches the information to be able
to respond to customers’ needs. This is why information search is discussed
more in the channel section, where the channels are presented in more detailed.
Relational content was referred to reference cases where the company’s
products or services have been used or the event invites the marketing
department sends out. References were seen as valuable and important
communication content. In industrial buying process the risks are higher due to
the high prices of products or services. This is why the business buyers or
purchase decision makers need to hear reference stories, how well the product
or service has functioned, to be able to be completely sure about the product or
service quality. Both parties, customers and the client executives, thought
references are important content and should be used during the purchase
process. One interviewee pointed out that there is help from the references,
since the wheel doesn’t have to be reinvented, just applied. With the reference
cases, the salespeople can easily show some ready cases where the service or
product is used. With the reference case it is also easier to show which
advantages using the product or service really gives. The references are so
important for the salespeople that another client executive stated that references
are the reason for the sales even happen.
“When we have done something and we want to have references how the things
were done there or how things worked out there, what advantages they had…
45
It’s kind of… you don’t need to reinvent the wheel but to apply it to your
situation.” (CE_A)
“In my opinion where we get the euros are our service excellence and the
references.” (CE_B)
A customer pointed out that references are not necessarily used as efficiently as
possible at the moment, but they would be useful in evaluating the products or
services. He emphasized the direct communication between the customers,
where he said that customers can talk with each other differently. He said that
customers can share the experiences freely and say honestly how the
implementation of the product or service has really worked. The reference cases
can therefore help the customers to do their job.
“A whole lot of useful than a “conversation club” would be when they would for
example find references for us and shows us something interesting that “here it
is, that is what we have done”. … It would be the best way to get the customers
to talk for them. It is important, because you can talk way differently [with other
customers], because you see in practice how the company has used the service in
their business, what has been the need, how they have implemented it. And they
can honestly tell how it went and what advantages they got.” (CUST_B)
As you can see from the previous comment, reference cases were hoped to be
presented even more. The reference cases can be seen as important content in
the marketing communication. Customers need information from the other
customers and they value the experiences the others can give. However, as the
previous comment shows, the customer usually expects the seller to present the
references suited in the sales process. However, salespeople have also
difficulties in finding the best reference cases. A client executive wished a
reference bank or such, where the reference cases could be found in one place.
He expressed a difficulty of finding the suitable references for request for
proposals. Although the need is described in the proposal, the client executive
found it hard to find the best cases.
“For example in such situation, when the request for proposal comes, where the
need is described, but then to start to dig references, where you could find
references. … There’s lot to do in categorizing the references that the public and
open references could be found somewhere, for example in reference bank. “
(CE_C)
One client executive pointed out that a project for collecting references is on the
way. Some reference stories are already on the web sites in public use, some are
being collected and stored in “delivery portfolio”. However, the collecting was
on the process. The effective use of references can be important, because in
DMC process the references act as value propositions for the customer and they
work as an example of what value the customer can get using the product or
46
service. In this light, the references cases can be seen as essential marketing
content.
Along with references, the event invites were said to be part of the
marketing communication. The invitations to different seminars are usually
sent by email. Customers thought that the event invitations were useful and
they were perceived positively. The events themselves were said to be useful
for staying up to date what the company can offer. Even if the customer did not
attend these seminars, the invitation was solely considered an important source
of information, what was going on.
One customer said that seminars are useful because you can meet people
from the same industry. She said that these seminars have been good
experiences and she thought that by participating in such a seminar helps her to
stay up to date with the supplier’s product and service offerings. The positive
attitude towards the seminars can influence the positive reaction to the event
invitations themselves. Another customer also expressed this positive attitude
by saying that event invites give the customer a big picture what is going on
and it is useful for him to know what is going on.
“Of course the company organizes seminars, like half day or day long seminars,
where we participate. We see and meet other people too from this industry. … I
have good experiences from those where I have been in. They have been good. …
There you stay up to date with the suppliers’ products and services.” (CUST_A)
“There come invitations to some seminars… then you see in the big picture,
whether you go there or not, you see what is going on. And what the company
does. It is useful to get that information what is going on.” (CUST_D)
Interesting is that the client executives did not see the event invitations as
positively as the customers. One client executive even referred to the events as
“nonsense parties”. Another client executive said that invitations are not
marketing. This attitude from the client executives can derive from the fact that
the events are not really interesting for them, so they don’t see that it might
interest the customer. Another explanation can be that there are so many events
organized that they do not know to whom to send the invitations to.
“All kinds of events or “nonsense parties” are organized. They ask me who
might participate. The invitations are sent by email.” (CE_C)
“I think we don’t send a lot of marketing material. We send invitations to events.
But is that marketing? I don’t think it’s marketing if we send invitations to
events.” (CE_A)
As the results show, both promotional and relational content seems to be
central elements of marketing communication also in digital environments.
Hence, the communication content seems to include in the means of DMC. It
was also discovered that reference stories are important content for B2B
customers and event invitations are perceived positively. Earlier it was also
47
previously suggested that in addition to communication content, the
communication frequency includes in the means of DMC. This is why it can be
concluded that the proposition 1 (the means of DMC include communication
frequency and communication content) is fully supported.
5.3 Channel preference
Channel preference in digital marketing communication can act as a moderator
and it can have a positive or negative effect on DMC. Negative effect may occur
if a receiver does not use the same channel as the sender of the messages. A
positive effect may occur if the channel acts as an accelerator for the message,
for example in using Instant Messaging, where the messages can be sent
quickly. In this chapter, the results of channel preference are presented in three
categories: personal communication, channels for information search and other
channels of communication.
5.3.1 Personal communication
Channels that are mostly used for personal communication are still offline
channels like phone and face-to-face meetings although the digital channels are
being increasingly used in every day communication. It was mentioned that
face-to-face meetings are used when the person is unknown or the issue is
complicated. However, when the people acting in the relationship come more
familiar with each other, the digital channels are more often used. These
channels include email, LiveMeetings (meetings held over the Internet, using
phone, camera and other sharing equipment) and Instant Messaging/Chat.
Emails and LiveMeetings didn’t create any significant responds or
comments. However, the chat was mentioned many times in the interviews
accompanied with a positive response. Two of the companies had opened the
gateway for using the same chat tools as the case company, enabling them to
chat over the company’s boundaries. The chat was mentioned being a useful
tool for interaction and quick communication. Respondents also emphasized
the chat feature where it can be seen when the person is available and when
not. Chat was also said to be an easy way to communicate and it had partly
replaced emails. However, not all relationships had this interaction
opportunity, but there was a wish for establishing the chat connection to other
customer relationships as well.
“We have the chat and LiveMeeting opportunities with them. … This extra
opportunity like chat I have started to use and to follow when the person
available, when the light is on. … The chat, or the online lamp, brings little help.”
(CE_A)
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“There is this real time chat, where you can take contact with certain suppliers. It
is very useful, you can make contact easily.” (CUST_A)
“We have visibility to their chat, we have integrated these services that we can
write instant message, and it is really good. I see them same way like our
colleagues.” (CE_B)
“This instant messaging, this chat, lot of people have started to use it and there
have come a lot of good feedback that you can quickly chat with a person in the
house and you can see if the user is active or passive.” (CUST_D)
“Chat is in everyday use. It has partly replaced emails. When you have a quick
question, it is easier to ask through it than to put it in their email flow. … But we
don’t have it with our customer.” (CE_C)
“We have many times discussed that why don’t we have the same chat tools with
our customers like we have in house, because it would speed up things.” (CE_D)
As the comments present, chat was praised by many respondents. Even if the
gateway was not opened between the customer and the supplier, chat was used
internally within the companies. In the personal B2B communication, chat is a
relatively new tool. Many companies have started to use interorganizational
systems which enable the employees to interact with each other by real-time
chat. Chat is almost like real conversation with the same speed. This could have
some influence on the effectiveness or speed of the communication. This,
however, was not being investigated in this study. It can be only stated that the
interviewees perceived chat positively and it was accepted as a communication
channel.
Although chat has strengthened its position as a personal communication
tool, the majority of business messages are still send by email. For instance in
this case event invitations were sent by email. Also important messages such as
request for proposals or responses to them were sent by email. This finding is
consistent with the results of Friedl and Verčič (2011) as they discovered that
traditional channels, such as emails, are preferred to other channels when the
information is considered strategic. The traditional channels seem to be favored,
but other communication channels, like chat, are introduced gradually.
5.3.2 Channels for information search
Business buyers and purchase decision makers use multiple information
sources during the buying process. In this case customer said that they are
using from the digital sources corporate web site of the case company, other
web sites, blogs and search in Google for gathering information. However, if
they know what they want and they know the company is providing the
service, they will not search online. For instance, the case company’s corporate
web site was not the first place for search information about certain products or
services. In these situations, they preferred a direct contact with client
49
executives. One customer said that it is easier to just send client executive an
email and ask him or her to search the information needed. Another customer
stated that client executive is the one who finds the right people to contact with
in different situations.
“On other hand, it is easier, when you send client executive an email that now we
need this kind of information, so you get it from there. I get more information
straight from the contact.” (CUST_A)
“In this case I know one name. If I have something, I know that he will find me
the right person. But is it efficient that I know one name or one email address? …
I don’t use [corporate] web sites for the information search.” (CUST_C)
Customers will not search for the information for themselves, if they know the
company provides the service. However, if customers are looking for
something new, like solutions for their problems, then Google is used.
Customers search information about products and services, companies that
could offer these products and general information about the companies’
backgrounds. A customer said that if he has a clue that some firm provides the
service he needs, then he searches on the web sites. If he does not know the
provider, he uses Google to search the information. Another customer said that
he sometimes searches on the web sites right people to do the work. Again he
said that he does not use the corporate web sites for this. It was clear that if the
customers “have to search” from the web sites information, it means that they
do not have a direct contact with this particular firm.
“Google is the only search. … It is not surprising that Google is the most used
and you would hope to find there [information]. … Overall, I try to find from the
web sites, if we have a clue that there is this firm or this kind of product, and we
have heard something about this.” (CUST_C)
“One choice is that you start to search yourself. … Not straight from the
[corporate] web sites, but it is possible that I look for experts to something, who
they are and who would do something like this and what kind of firms there are.
“ (CUST_B)
This means that buyers can search information from a third-party location, such
as Google and other web sites. This finding is consistent with research findings
from Deeter-Schmelz and Kennedy (2002) as they found out that third-party
location information was the most important source of information for
organizational buyers and purchasing managers. In this particular case it is also
central that Google is used for searching new products or solutions, even
though the customers are considered as new customers. It was already noted in
chapter 5.2 that customers do not always know what the company has to offer.
This is why in this case it would be important to appear in the search engine
results for the existing customers as well.
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It is important to understand the customers’ ways of searching
information. In this case it seems that corporate web site is not the place for
information search. This can have many reasons. First, it is easier to call or
email the client executive and ask him to search the information for them.
Second, it may be that the web sites are not build in a user friendly way. Or
third, the content of the web sites are not what they are looking for. The
customers can think that they get better information and in an easier way from
the client executive. This is an important fact when designing the channels for
DMC.
5.3.3 Other channels of communication
Social media was mentioned as an alternative channel for communication. The
importance of social media as a new communication medium was understood,
but it was not used in work related situations. Only LinkedIn was approved as
a professional channel, but it was still not used in communicating in the
relationship or collecting data from the customers. LinkedIn was seen more as a
site for linking people and recruiting new employees. One client executive said
that she links with people in LinkedIn and nothing more. She said it is not the
place for real communication but a networking place for experts. The value for
her to be in LinkedIn was the networking. A customer said the same. She said
that she has a small network there and she sees certain things there such as
when someone has a new job. She also uses LinkedIn to see the work history of
people.
“Every time you link with people, but nothing else. You are found in the
network, but it is not about real communication. … I see LinkedIn as a
networking place for experts. But I don’t know if it is a place for the company to
be in. Of course there is a company behind all persons, but I see it more like a
place for knowing who knows who.” (CE_D)
“For now it is for me a place where I have my small networks of people. And
maybe you can search a job there or you can see right away if some friend or
colleague has changed a job. Of course you can see the work history there. It is
sometimes important that you understand how people know some things.”
(CUST_A)
These comments show that LinkedIn is not used for communicating with
people in B2B relationships. It is just for linking and networking. The real
conversations are held elsewhere. Therefore, it seems that social media channels
have a certain purpose of use. Not only does the purpose of use guide the use of
the social media channel, but also the attitudes have an effect on the use. Some
respondents had a negative attitude towards social media or social media
channels. One of the interviewees was against Facebook, but was using
LinkedIn. Another interviewee was just in LinkedIn, but leaving, because he
thought it was a “pretty awful tool”. Attitude towards the different kinds of
51
social media channels was diverse. One interviewee told that a person’s age can
have an effect on the attitudes.
For many middle aged it [social media] is a red flag. It is like cool to say that
“why should I be there”.” (CE_B)
This supports the assumption that customers have channel preferences and not
all channels are perceived similarly. Hence, the channel choice in this case may
have an effect on the penetration of the messages as well as how the message is
perceived. If the attitude was seen as a determining factor in social media use,
time was seen the restricting factor in blog use. Blogs were seen generally as a
good thing, but time was mentioned being a limitation to reading the blogs.
One client executive said that the company should probably have blogs in order
to build an image of being opinion leaders in the field. She also said that it
could be a fast channel for sharing the information. A clear contradiction to the
suggestion of blog being a fast channel emerged, when one client executive said
that he does not read blogs, because he does not have time. Blogs can therefore
be seen also as time consuming.
“We should probably have [blogs], where we could be opinion leaders… And
experts could tell there where the world is going. … It could be fastest way to
share the information and be a forerunner in a way. At least I think it would be
good.” (CE_D)
“Let’s say that the time is the issue, why I don’t read blogs. Well, okay, I read
sometimes at work if colleagues have written something, our own blogs. But
relatively little for now.” (CE_B)
Channel preference can have an effect on whether the message reaches the
customer or not. Although LinkedIn could be a very useful channel for
communication, in reality it is not used in that purpose. Choosing the right
channel for DMC, the use purpose of the channel needs to be considered. If the
message is in contradiction to the channel environment, the message might not
be effective. Channel preference seems to influence attitude towards the
channel. A negative attitude can have an effect on the message itself. Time
limitation was also one reason why for instance blogs are not read. Blogs are
seen as time consuming channels for information. Channel purpose, attitude
and time limitation seem to influence channel preference and affect reasons
why some channels are used over the others. This is why it seems that channel
preference is a moderator of the DMC.
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5.4 Interactivity
Interactivity was not mentioned being a significant moderator of the
communication. However, it was mentioned that the channel is chosen based
on the level of interactivity or possibility to interact. Florenthal & Shoham
(2010) point out that customers mismatch between their preferences for the
channel interactivity and their perceptions how well the channel provides the
desired interactivities. This can be the reason why the channel preference stood
out in the responses, not the actual cause for the channel preference. For
instance one interviewee told that he uses chat because he can see when it is a
good time for interacting with the customer.
“That chat, seeing the online lamp that if she or he is free… You can see, if you
can interact or not. Or at least ask easily when can we talk. So there it brings
help.” (CE_A)
The lack of evidence that interactivity is a moderator of DMC can also mean
that low interactivity channels are rarely used in B2B relationships or the
channels used nowadays are generally highly interactive. De Pelsmacker et al.
(2007, 544) point out that in B2B environments the business communication is
always interactive and it is important that the customers can respond to the
communications. This can be the reason why the interactivity was not clearly
mentioned in the interviews, but it still may have an importance in the digital
marketing communication. However, in this study the interactivity was not
seen to be a moderator of DMC. As a result, proposition 2 is not fully
supported. Channel preference can have an effect on the digital marketing
communication, but there is no clear evidence that interactivity is a moderator
of DMC.
5.5 Value co-creation
The results indicated that value co-creation seems to be an outcome of DMC. In
fact, the process of value co-creation seems to start already before the actual
communication. As social CRM theories present, listening and responding are
vital activities in the management of relationships. Listening what the customer
needs has an effect on the response the salespersons or marketing department
creates. Thus, responding means giving value propositions to the customer.
Also giving customers information content as well as human and technical
resources, the customer is able to create value for themselves (Lih‑Bin &
Hock‑Hai 2010). In the business environment, the value can be increased
business capacity, finding the best solutions, new market opportunities or
decreased costs (Grönroos 2011).
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In DMC process the value is co-created through collaboration. In this case
the value usually comes when the new solutions are developed together.
Generally, these solutions cannot be bought ready anywhere, but they are
custom made. Digital channels help people to collaborate and innovate together
creating the solution. Building such a solution is always connected to the
customers’ business performance and it aims to add value. A client executive
pointed out that at the end of the day it is all about increasing the customers’
revenue, by delivering the suited solutions. She also suggested that delivering
such solution always needs collaboration. The same stated another client
executive and added that the best case scenario would be an innovative
network, which would break down the company’s silos and help people to
innovate together. These comments suggest that digital collaboration and
jointly innovating in a network are strongly connected with value co-creation.
“At the end, it is from the customer’s point of view increasing revenue. If we
summarize, than that what it is. … The starting point is that we deliver a
solution, but we search it in co-operation so that we all the time know where we
are going. … And we get enough people involved, because it requires intense
collaboration from both sides.” (CE_D)
“In best case scenario it would be innovating in a network. … In those company’s
silos there are not enough knowhow to carry out tasks, but you need something
more and it could be found in these networks.” (CE_A)
Not only better solutions can be created by using digital channels for
collaborating, but also the costs can be decreased. Digital channels have said to
save time and money when the people do not have to be met face-to-face. Cost
reductions can come from time saved from travelling, arranging meetings or
conference rooms. One client executive said that for instance chat helps that
one-to-one meetings do not have to be arranged. Cost savings can also come if
“things go faster forward”, like one client executive said. This efficiency is also
important fact for another client executive. He thought that instead of arranging
a meeting, a video could be used for giving the same information in shorter and
more efficient way.
“So that we don’t have to do it one-to-one or make someone else to arrange a
meeting. In this case the chat, or seeing the online lamp, if the person is free or
not, it helps. You can see whether you can interact or not. Or at least ask easily
when we could talk.” (CE_A)
“We have many times discussed that why don’t we have the same chat tools with
our customers like we have in house, because it would speed up things that you
don’t need to write an email or call up for a meeting. That you could quickly ask.
… And if those boundaries would disappear, it would help a lot. A lot of things
could go faster forward.” (CE_D)
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“Instead of searching for and arranging for a meeting. Or using any other
traditional methods, you could do the same thing when it suits for you and when
you want to do it, for instance [by watching] 1,5 minute video. You’d rather do it
that way. These are on the different levels if we think about the overall
efficiency.” (CE_A)
Not only costs can be saved but the work load can be decreased. The client
executives are said to be an important source of information for customers.
They search and give the information needed for them. This requires a lot of
work, so help is clearly needed from videos or other “self-service” tools. This
would ease up their daily work by reducing meetings and other information
search. Client executives saw digital channels, such as videos or chat, as tools
for making the information sharing more efficient. At the same time the time
used for requiring information is also reduced on the customer side. This
efficiency can bring value as decreased costs.
References use in the DMC process can help the companies to co-create
value together. Reference cases can help both parties to create the solution
needed. Client executives want to show examples, or value propositions, to
customers in order to get sales transactions. At the same time, customers want
to hear more information about the product or service from other customers, in
order to minimize the risks. If the references are easily accessible, for instance in
web sites or a reference bank, the time can be saved from the reference search.
This is where digital channels can be useful in the value co-creation process.
One customer felt that there was a need for a network of customers, where
they could freely talk about the products and services, without the salespeople.
There they could share their experiences and learn from other people’s
mistakes. Another customer confirmed this statement and said that usually they
want to hear if there have been some negative things during the project. Not
only negative, but also positive experiences can be shared between customers.
A client executive noted that benchmarking is important to see how others have
done the same things. The information sharing includes also emphasizing the
advantages of the product and service. In the best case scenario it is the
customers who sell the solutions to each other.
“To bring people together and get them to network. And really to discuss. And it
means that it is being said openly what people think about the [supplier] and
what is good and what is bad. There would be a big advantage that you wouldn’t
have to do the same mistakes again; that you could learn.” (CUST_B)
“If we are interested in some system, then we search a reference. Usually then we
ask experiences about the supplier and the project. Usually we try to check if
there’s something negative, because we try to [minimize] the risks.” (CUST_C)
“How things have been done there or how this was managed in some other
project and what kind of advantages it had. If these things would be presented
easily and helpfully, for example as client statements, which are short, efficient
and easily accessible. … This kind of benchmarking and making use of the
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previous experiences. Always when you do something new, you want to be sure
that everything is ok.” (CE_A)
Using DMC the information can be distributed and shared easily. The value cocreation is made easy with the new technological tools where the value
propositions, or solutions for the problems, can be presented quickly and
efficiently for the customer. The messages can also be consumed when it best
suits for the customer, freeing time from the face-to-face meetings. The power
of networks provides the advantage for the customer to utilize the knowledge
of other customers, minimizing their risks and innovating new solutions.
These findings are consistent with the study of Golik Klanac (2008, 141) as
she found out that the end-states of customer value in using web sites are
convenience, efficiency and competence. Web sites were considered flexible and
save effort (convenience). Web site communication was also said to save time
(efficiency) and it helped gaining understanding and get inspired as well as
support workflow (competence). Supporting these findings, it can be said that
value co-creation is an outcome of DMC.
5.6 Trust, commitment and loyalty
There was no clear evidence that trust, commitment or loyalty are outcomes of
digital marketing communication. These outcomes were mentioned in the
interviews, but not in any connection with DMC. In fact, they were often
mentioned in connection with value co-creation. However, in this study a clear
connection could not be stated while the study design did not support the
investigation of this connection. This is why great caution should be used in
analyzing the results.
Trust was seen formed through competence (fulfilling promises and
contracts) and credibility (reliability, honesty). There was no evidence that
competence or credibility would be outcomes of DMC. In fact, it was suggested
that communication cannot create trust. A client executive pointed out the trust
is not “created by talking”, but in fact with results.
“It is an outcome of long and persistent work, these thing are not created by
talking. We have shown our strengths with the results.” (CE_A)
There was also no evidence that commitment is an outcome of DMC.
Commitment was seen in these B2B relationships mostly through negative
calculative (locked in, no other option) or positive calculative (value based). In
B2B relationships, the contacts and agreements build barriers to the supplier
change. Therefore commitment seems not to be an outcome of DMC, but it is
actually artificially built with long agreements. A client executive straightaway
said that his goal is to make as long agreements as possible, in order to keep the
customers committed.
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“[Commitment] with long agreements, it is my goal. That you build the trust
with the customer and then you try to make a long agreement as possible. ”
(CE_B)
There was also no evidence that loyalty is an outcome of DMC. In fact, it was
argued that there are no loyal customers at all. A client executive mirrored his
own behavior in retail stores with the behavior of any customer. He said that
customers are not loyal to a specific store, even if they go there every day. They
might go to the next store as well. This mindset reflects the attitude in the
business environment. In the interviews, the customers and client executive all
said that customers do not easily change the suppliers. However, suppliers
cannot depend on it. They have to do their best, in order to keep the customer
happy.
“If you start to think that a customer is loyal, then there’s something wrong.
Customer is not loyal. You know it from your experiences how you act as a
buyer. You’re not loyal to K-market even if you go there every day. You can go to
Prisma the next time as well.” (CE_B)
Although there was no evidence that trust and commitment are outcomes of
DMC, there was a slight indicator that value co-creation could be a predecessor
of trust and commitment. It was said that trust is there if there are the right
human, information and technical resources in place. Client executives also said
that if the services run against the service level, it weakens the trust. These
comments indicate that if the customer feels that the company provides the
resources needed in the value creation process, the trust is there.
“Let’s say that if we can do with such mechanism, with such model and with
those people. Then the trust is there.” (CUST_C)
“There’s sometimes things that shouldn’t happen, some service runs against the
agreed service level. These things weaken the trust.” (CE_B)
Value co-creation could be also a predecessor of commitment. If the customer
doesn’t feel like getting the right value, it can have an effect on commitment.
One customer indicated that sometimes the company has resources problems
and they are not able to do the tasks needed. In this situation, the customer was
considering having another supplier on the side, as a backup. This might
indicate that insufficient value co-creation can have an effect on commitment.
“In fact we would like to have another supplier on the side, because from time to
time they have a resource problem. That is problem for our timetable.” (CUST_C)
The results show that proposition 3 (the outcomes of DMC include value cocreation, trust, commitment and loyalty) is only partly supported. It seems that
for the outcomes of DMC includes only value co-creation. There was no
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evidence that the proposed outcomes of trust, commitment and loyalty had any
connection to the DMC. These proposed outcomes cannot be fully ignored,
while there was some evidence that they can be outcomes of value co-creation.
However, in this study only value co-creation is acknowledged to be an
outcome of DMC.
5.7 New determinants outside the research model
The interviews suggest that there are at least two new supplemental factors that
could be added the original research model: the form of a message and
importance of relevant sender and receiver. These new factors are closely
connected to the B2B environment, where there are more actors in the
marketing communication process and where there is shortness of time, due to
the limited working hours. The original research model of Merisavo (2008) was
designed for the B2C customers and did not take these elements into
consideration. Next the new elements are presented and the reasons for
including them in the model explicated.
5.7.1 Form of message
The importance of message form appeared in the interviews several times. It
was argued that the message ought to be in a right form in order to reach the
receiver. Interviewees mentioned that time pressure and rush at work places
are the reasons that long and time consuming things are not read or watched.
The message should be in such form that it can be consumed during a break or
on the way to work. A customer emphasized that we are all in information
overload and this is why the message content should be summarized to a few
main points. If the message is not summarized, the whole message can stay
untouched and unread. A client executive said that there could be only five
minutes to a next meeting and this is why the messages should be short and
summarized. Therefore one respondent mentioned that message should be in
that form that they can be consumed as “a snack”.
“We are in the information overload. Emails and information comes so much that
you have to be able to summarize the message. You can have many dozens of
pages of information, but when introducing the main points, they have to be in
few pages quickly to be found. If you don’t summarize, it is somehow wasted,
you’ll never read it.” (CUST_B)
“These days, if people want to read something, it should be interesting. Because
there’s not enough time, calendars are fully booked, and if there is a five minutes
time to move next thing.” (CE_D)
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“Time management is that you try to fit lot of things [in one time frame], and
when you start to eliminate, you eliminate those that take lot of time. And those
short things you can fit in more than those big things. … They do not go as a
snack that you can watch on the way to work or in a pause.” (CE_A)
This snack metaphor is descriptive for the needed form. A snack is usually
consumed quickly, in just a few minutes. It is easily accessible and acquiring it
doesn’t require any extra effort. Having a snack is a convenient way of fulfilling
the need. It is consumed during a break or during other pause, where a specific
time does not have to be arranged. Thus, this snack metaphor suggests that
message form is hoped to have the same features.
Not only the shortness of the message is a significant attribute of message
form, but the visualization seems to be an important factor as well. A client
executive wished very directly that the company would visualize the products
and services. He thought that the visual form would give customers concrete
understanding what the products and services are all about. Again, visual
experiences should be short, packed only in three or four minutes. Another
client executive acknowledged the same need for visual experiences. He said
that for instance videos are “efficient stuff” and they can be powerful. Yet, he
noted that the videos need to be easily accessible, in order to be efficient.
“What I have been thinking, from the marketing and sales point of view, is that
we definitely need to visualize our services and give the customer a feeling…
They cannot be long, it has to be packed, 3 or 4 minutes.” (CE_B)
“For example customer stories, which are short, efficient and easily accessible
and integrated to other working. If it’s combined with efficient stuff, like pictures
or videos or like talking heads. Instead of calling a meeting, you can do it when
you want. For example one and half minute video. You’ll do it rather that way.
… I think video is pretty effective and powerful, if it is easily accessible.” (CE_A)
The comments suggest that summarizing and visualizing the marketing
messages, they would be more efficient. It is also implied that videos, for
instance, save time. Customers can watch them when they feel like it. Overall
the message form seems to be quite important in B2B marketing
communication. There is clearly a wish for short and visual communication.
The metaphor of a snack is descriptive and it gives marketers a thought, how
the DMC should be presented in B2B environments. In this respect, message
form seems to be part of the means of DMC.
5.7.2 Sender and receiver of the message
In B2B relationships there are several people involved in the communication
processes. Finding the right people to send out or receive the messages could be
a determinant whether the message ever reaches the right target. The
importance of a message sender was indicated in the interviews. One client
executive argued that if the sender is unknown or who the receiver is not
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familiar with, the message could remain unopened. It was argued that it is
totally a different thing if the message is sent by someone the receiver knows or
someone they work closely with. This sender choice was said to be a problem in
the company’s marketing communication. It was indicated that the company
should not send out impersonal communication but to channel the
communication through the people working closely with the customer
representatives.
“I see as a problem in our communication that if a message is sent to clients by
our company or someone who they do not know, it can be that they don’t even
open the message. But if the message comes from someone they know, it is
totally different thing. Let along if the message comes from someone they work
closely with all the time. There’s a big difference.” (CE_A)
It was also suggested that the message sender can be another customer. A
customer pointed out that they feel that they talk different language with other
customers than with salespeople. He also noted that a satisfied customer is the
best mannequin or model for a company to sell its products. This is why the
company should use customers in promoting their products and services. This
commentary indicates that a good sender for the marketing messages is, in fact,
another customer.
“They talk different language than we do, when customers talk to another
customer. We talk differently than some salesperson. [Company’s] best
mannequin is a satisfied customer. … It is definitely the best way to get
customers to talk for them.” (CUST_B)
In B2B relationships it is not only hard to decide the right sender for the
message but also finding the right receiver can be problematic. In big firms
there are a numerous people acting towards a supplier. This is why an interest
group for certain messages is hard to define. This may have the danger that the
targeted message will never reach the right target itself. A client executive
stated that it is hard for him to decide to whom to send the message. He said
that it is a big challenge to know who the right receivers are. Finding the right
receivers is something that he wished to be developed somehow. He suggested
later in the interview that additional information is needed, such as specific
interests or position change information, in order to identify the right people.
“There comes strongly the thing which needs to be developed: what is the
difference between network and the traditional mailing list and an interest
group. These things are pretty hard to decide. Do you put [the message] to 100
guys you remember or those who you have in you register, or those who it
supposed to be. … I think it is a big challenge. It is all about the updating [the
list] and how you find the right targets. “ (CE_A)
The problem in identifying the right receiver was not only one sided. A
customer also stated that they do not always know who to contact in the
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company. He indicated that this is a problem with all big companies including
the specific supplier. It was argued that the message could be lost in the way if
it does not reach the right receiver at the beginning. As an example he used a
case where they would want to send a request for a proposal and they don’t
know the correct receiver, it might be that the message never reaches the right
place.
“We have had a challenge with [this] company that if we want to send a request
for a proposal of something that we could find the right group it needs to be send
to. The group that can do that. Because, if it goes to the next room, it doesn’t
necessarily end up [to the right place]. It is a problem with big companies.”
(CUST_C)
According to the interviews, the relevance of a sender or receiver could have a
moderating effect on the DMC. If the message does not reach the right receiver,
marketing efforts are lost. Also when the communication is directed to a wrong
person, the effects of DMC can diminish. Finding the right people who have the
interest and certain need for the targeted communication is essential in B2B
relationships. In other way around it is also important that sender is the one
working closely with the customers. It was indicated that the effects of the DMC
can be increased if the message is send by the person working closely with the
customer. The results indicate that relevance of the sender and receiver of the
communication is a moderator for DMC.
5.8 Social CRM activities
There was some evidence that the elements of social CRM can support DMC.
Listening, responding, connecting and collaborating in the digital environments
are giving inputs to the difference phases of DMC process. For instance by
gathering customer data online, more relevant content can be communicated to
the right people at the right time. Connecting people and finding the opinion
leaders from the web can also help in finding the relevant receiver for the
message. The results show, however, that these social CRM activities were not
efficiently used. The interviews revealed that companies do not know how to
use the new opportunities.
In the interviews, all proposed elements of social CRM were mentioned.
Next these supporting elements are examined in the case context. More
precisely it will be clarified why these activities could support DMC and how it
could be done in this case context.
5.8.1 Listening
Listening in social CRM means listening to and collecting the customer data in
online environments. With listening tools more data can be collected from the
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web and more market insights can be developed based on this data (Evans &
McKee 2010, 235). In this case there was no indication that customer listening
tools were used for collecting the data from the web sites or networks.
However, the need for them was clear. One client executive said that all
customer signals did not come to utilization and more information should be
obtained. He suggested that the company could have a “funnel” or a “net bag”,
which would capture all the signals that are useful in the customer
relationships. He also said that the company should have a “sensor” ready if a
specific person expresses a wish or an interest via social media. This sensor
would indicate in this situation that this person should be in their interest
group and part of the relationship interaction.
“All those signals, which are out there, they don’t come to utilization. All those
signals do not come at the right time through these processes. It is not in people’s
mind that these things need to put forward. … If we look inside our company,
those signals and listening, do we listen enough, we would need a big funnel, a
big net bag wide open, so open as it can be.” (CE_A)
“That we would have the context knowledge, from some outside source also. If
the person haven’t had chance to tell us, but he/she tells it to the social media
that we should have sensor ready that the person is in our interest group right
away.” (CE_A)
These comments imply that there is a need for customer listening tools. The
interviewees could not phrase directly what could help them in the customer
listening, but some kind of data collector or sensor would be useful. There were
no direct comments that data could be gathered from the web. Analyzing the
data for future predictions or behavior forecasting was either not mentioned.
The reason can be that it is not yet clear that data even can be mined from the
web or that this data could be in any way useful.
Yet, it is clear that salespeople need more customer information for
supporting the sales activities. Like the client executive said, all the signals that
are out there, should come to utilization. These signals can be indications of
upselling or cross-selling activities. The signals can also help the salespeople to
determine what kind of product and service is needed. Therefore it can be said
that it seems like the listening activity of social CRM gives essential and
relevant inputs to DMC.
5.8.2 Responding
Responding to the customers was also mentioned several times. Interviews
indicate that responding means usually responding to the customers’ requests
and needs. A customer said that the response should be something that mirrors
to their need, in other words a solution to their needs. Another customer
pointed out that the case company is actually responding quite nicely. He said
that the company reacts if there is something that can be done and they search
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what can be done in the situation. All in all, client executive said that according
to the customer satisfaction surveys they know how to respond to the
customers’ requests.
“They need to understand what is our need and they need to find something
what mirrors to our need.“ (CUST_B)
“It is nice that they are actively present and they listen, and if there are new
things that can be done, they react, find out, search, keep workshops and go
through, what can be done.” (CUST_D)
“If we look at the customer satisfaction surveys, the customer feels that we listen
and know how to respond to their requests.” (CE_B)
However, it is unclear to what extent this responding is due to the online
interaction channels. It may be that all responding in this case context is
happening in offline environments, such as face-to-face or telephone settings.
The channel of the response was not stated in the interviews. More important
was that the response is delivered to them rapidly or at least in the same week.
One customer stated that he needs clear contacts that he can trust that someone
will answer him in reasonable time. This is why impersonal email address like
“sales@something” was not preferred.
“Then clear contacts that it doesn’t go to sales@something, where you never
know what happens. But there would be a place that, if I put there, then I can
expect that this week someone will answer me.” (CUST_C)
If the customer is using the Internet, he or she is without guidance. For
example, on the web sites there is no one to tell where to find information or
what kind of information could be useful. On the Internet, a direct response is
also very important. This is why one client executive suggested human assisted
guidance for the web sites. He thought that some kind of guide could help the
customer the information he needs. He referred human assistance on a web site
to a store visit where the salesperson is usually very quickly providing the
assistance. This human assisted guidance would be the additional source of
getting response on the web sites.
” If we think how much business is happening today in the Internet and what it
would be in ten years. If we think about a situation that you go to a store, there’s
a salesperson pretty quickly asking how may I help. But in the Internet, you are
alone there. Okay, now there are these chat things and such, but this human
assisted guidance. I see there a lot of connections to marketing and sales.” (CE_B)
The previous comment shows that getting a response is important in any
chosen channel. Marketing communication should always respond to
customers’ needs. This is why listening and responding can help designing the
communication content in the DMC process more accurate and appealing.
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5.8.3 Connecting
Connecting as a social CRM function means identifying specific influencers and
linking more information about them to the listening or business data (Evans &
McKee 2010, 235). In this case identifying the right people was said to be a
problem. When the employees are dealing with large companies, they face
difficulties finding the right people or the right influencers. Connecting could in
this light give a support for the salespeople to find the right people. One client
executive gave an example that when he is sending out a message to a customer
firm, he doesn’t know to which emails the message should go. He pointed out
that it can be the 100 people which he remembers or only those who he has in a
register or someone else. These receiver lists should be updated regularly that
the right targets are in the interest group. He finally pointed out that LinkedIn
could be a useful place for identifying the right receivers.
“These things are pretty hard to decide. Do you put [the message] to 100 guys
you remember or those who you have in you register, or those who it supposed
to be. … I think it is a big challenge. It is all about updating it and how you find
the right targets. … In these situations this kind of LinkedIn, although I said
badly about it, if there’s some professional interest that you want to take part in
your own network of expertise, it can be on source or input channel.” (CE_A)
The previous comment showed that social networks or other network of
expertise can help the salespeople to find the right targets and collect more
information about them. However, these networks are not used efficiently to
data gathering and analyzing. A customer pointed out that, for instance,
LinkedIn is a place where she only has her network of people. However, she
doesn’t know how to use the connections or networks for business use.
“For now, I have been there such a short period of time that so far I haven’t used
it [for business use]. But of course I have some network there that I guess at some
point I should figure out how to utilize it.” (CUST_A)
One significant result of this research was that the customers and client
executives were hoping that the case company could offer a community to
connecting people. A customer though that there could be a chance for the
company to build a place where the people could network. He pointed out that
the customers could find each other and talk peer-to-peer in such network. This
he said to bring advantages in finding the relevant references and direct
channel for communicating about the products and services with the other
customers. Not only did the customer see this chance, a client executive also
pointed out that such a digital forum could offer customers a place to talk about
hot topics. They, as a seller, could only be the enabler for such forum.
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“If we think about the case company, here could be a chance for them to build
connections and bring people together from these big firms together and
network.” (CUST_B)
“We have organized events where customers come and talk about hot topics.
Why couldn’t it be also digital forum, where they could come and talk and throw
their own acute things into the conversations. We could be the enabler.” (CE_D)
In addition to the customer to customer conversation, the customers could also
ask for guidance or expert opinions. This means that customer could find right
connections also from product or service specific departments on the seller side.
A client executive said that getting such an expert forum to your use could be a
really significant thing for many people. He referred to the fact that in such
forum the customer could ask quickly for an advice and they would get the
answer they needed also easily.
”If you get such an expert forum for your use or some kind of network, it would
be a really good thing for many people. If I ask for an advice now, I’ll get the
answer. “ (CE_A)
For many people, LinkedIn represents a place where such questions could be
asked from the experts. There were no clear reasons why they are not used in
this context. Maybe there are not clear groups for this kind of discussions or
there are no experts answering the customer questions. It could be that
LinkedIn is not seen as a communication channel and therefore not used.
Having such a closed community could offer an additional place for
customer data gathering. Even if the company does not have their own
community where the data could be gathered, the other established networks
can be used for identifying the influencers. Collecting more data about them
can give valuable information for the DMC process, where the receiver of the
message could influence the outcomes of the DMC. The wish for a customer
community raises many opportunities for developing the digital marketing
communication. These opportunities are discussed more detailed in the
managerial conclusions.
5.8.4 Collaborating
Collaborating is probably the most important element in the B2B relationships
while the collaborating environment gives the chance for value co-creation.
However, when the collaboration between the customer and company is
considered as a standard practice in B2B relationships, collaboration between
customer-to-customer is much newer thought. In the interviews, the need for
customer-to-customer collaboration came visible. In the business markets the
purchase processes are more complex and decision makers need great amount
of information in order to evaluate the different solutions. Customers’
experiences are one of the most valuable information sources. One customer
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pointed out in the interviews that companies usually have the same problems.
If they could together discuss the same things and same problems, it could help
them. He said that in this kind of situation there would be many advantages
that people would network.
“There are a lot of advantages that people network. It is the same if a forum is
organized and the things are discussed together. The companies have the same
problems. There’s big advantage in that.“ (CUST_B)
Previously, it was suggested that a community could help customers to
network and share experiences. It was also pointed out that not only customers
could collaborate more efficiently through networks, but also the employees of
the supplier. A client executive said that in a company there are silos and in
these silos there are not enough knowledge how to accomplish the task. In this
kind of situations networks could help people to innovate together. A customer
referred to similar situation where people could do something together in social
media. He said that there is a lot of potential when people get excited to do
something together. However, he also pointed out that companies do not
efficiently utilize this opportunity yet.
“In best case scenario it would be innovating together in a network. … In those
company’s silos there are not enough knowhow to carry out the task. But you
need something more and it could be found in these networks.” (CE_A)
“There’s lot of potential there [in social media]. If people get excited to do
something together it is like power. It is totally different thing. But I think
companies are still learning to do it.” (CUST_B)
The results show that there is a wish for communities or networks, which could
be used for business use for collaborating or innovating together. The same
mindset that people use in free time by sharing and keeping contact with
people could be applied to work situations. It is still unclear how these
networks could be built and how would they really work. However, it can be
stated that collaboration could help the value co-creation process of DMC, by
giving inputs or channels for creating value together.
All elements of social CRM were seen to bring inputs to the DMC process.
In this research the direct effects or connections were not examined. This is why
it cannot be said that there is a clear connection between social CRM and DMC.
However, it can be stated that the interviewees mentioned them several times
together. More research is clearly needed to confirm this relationship.
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5.9 DMC model based on the results
The results show that DMC seems to include some of the previously suggested
elements. The means of DMC include from the predefined elements both
communication frequency and communication content. An additional element, form
of message, was added to the means of DMC. The moderators of DMC are the
predefined element channel preference and a new element found in the case
study, relevance of the sender and receiver. The outcomes of DMC include only
value co-creation. The functions of social CRM were the predefined elements
listening, responding, connecting and collaborating. They also seem to support
DMC by adding inputs to the process. However, a clear relationship cannot be
stated based on this research. Figure 6 illustrates the empirically grounded
research model.
Figure 6 DMC model based on the results
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6. DISCUSSION
6.1. Theoretical conclusions
The objectives of this study were to understand what elements are included in
the DMC process and what meanings companies give for these elements. The
aim was also to examine what meanings are given to social CRM. The research
questions were:
- What meanings B2B companies give to means, moderators and outcomes
of digital marketing communication?
- What meanings B2B companies give to social CRM in connection with
digital marketing communication?
The research problems were assigned through an extensive literature research.
On the basis of the literature analysis, a research model was built to illustrate
the possible elements of DMC and social CRM. The empirical research revealed
that some of the proposed elements were not mentioned being part of the DMC.
For instance, contrary to prior research conducted mainly in traditional
marketing environments, there was no evidence that the proposed outcomes
trust, commitment or loyalty are outcomes of DMC. For instance MacDonald
and Smith (2001) suggest that technology-mediated communication has
positive and direct effects on future intentions, which in turn was partially
mediated by trust and commitment. Considering that the research was done a
decade ago, further up-to-date research is needed to examine the possible
outcomes of DMC.
The empirical research also indicated that interactivity was not part of
DMC. As discussed already in the results, it was mentioned that the channel is
chosen based on the level of interactivity or possibility to interact. This result is
supported by Florenthal & Shoham (2010) as they have suggested that
customers mismatch between their preferences for the channel interactivity.
Customers choose their channels based on their perceptions how well the
channel can provide the desired interactivities (Florenthal & Shoham 2010).
This can be the reason why the channel preference stood out in the responses,
not the actual cause for the channel preference. The reason why interactivity
was not addressed as a significant factor in the DMC can also be that
interactivity is taken for granted. Business communication is always interactive
and in B2B environments customers have the opportunity to respond to the
communication (De Pelsmacker et al. 2007, 544).
The empirical research did support the rest of the proposed elements. The
results showed that the means of DMC are communication frequency and
content. The results indicate that there is a certain level of communication
frequency that is considered as an average or as a preferred level. The
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respondents compared their observations with some an undefined average
level of communication frequency, while they were able to formulate their
response as “low” or “little”. This finding is consistent with the findings from
Godfrey et al. (2011) as they found out that there is an ideal volume of
communication and after the ideal point is reached, additional communication
generates reactance. In this case, the ideal point was not reached while
reactance did not occur.
Communication content seems to be included in the means of DMC. The
results show that both relational and promotional content were important for
the respondents. This finding is consistent with the research of Martin et al.
(2003) and Merisavo (2008, 37). In this study only relational and promotional
content was examined although organizational content could be also one
category of DMC. For instance, in blog entries the communication can
sometimes include some organizational content. (Ahuja & Medury 2010.) More
research is needed to understand its value to the customer.
Based on the results, the form of message was added to the means of
DMC. It was repeatedly mentioned that the form of communication and
particularly the form of an individual message is important for B2B
respondents. Both the message shortness and visualization were mentioned
being important. Visualization of the message is in line with the research from
Lurie and Mason (2007) as they found out that visual representations in
marketing are likely to offer new insights and increase customer satisfaction.
The rush in the work places influences the fact that messages should be short. A
study supporting this finding was extremely hard to find. One explanation can
be that the message shortness has not been studied in the context of digital
marketing. Another explanation can be that shortness of the message could
have been examined within some studies but they were not easily found.
However, the results indicate that the form in which the communication is
presented has an influence on the reach of the DMC.
The results show that channel preference is a moderator of DMC. Channel
preference can have an effect on whether the message reaches the customer or
not. The attitude towards the channel as well as the economics of the channel
can affect the channel choice. This finding is in line with the research from Cano
et al. (2005) as they propose that the channel is chosen on the basis of three main
areas: channels capacity to bear richness, the social influence of others and
economics. The social influence of others came clear especially in connection
with social media channels, where the negative attitude can be socially
constructed.
The empirical research also revealed that that offline channels such as
face-to-face meetings were preferred at the beginning of the relationships but as
the relationship got older, digital channels were used more. This remark is
consistent with the research findings of Ambrose et al. (2008) as they found out
that communication media is affected by the stage of the relationship
development. These findings are also supported by Cano et al. (2005) as they
suggest that face-to-face interaction is still the most appealing as
69
communication medium in B2B relationships, but at certain stages of the selling
process computer-mediated communication can serve a low cost option for
interaction (Cano et al. 2005).
A new element that was added to the DMC model was the relevance of
the sender and receiver of the DMC. It was stated that there are many actors in
the B2B relationships and deciding whom to send the marketing
communication can sometimes be a problem. Specifying the relevant message
receiver is naturally an aim of targeting the marketing message. Deeter-Schmelz
and Kennedy (2002) suggest that by developing buyer profiles the relevant
receivers can be found more easily. In the results it was also indicated that the
sender of the communication can have some effect on the DMC. It was stated
that if the sender is unknown the message may never be opened. This finding is
supported by the study of Levine et al. (2011). They found out that the sender,
and more precisely the actions of the sender can have an influence on the
believability of the communication. This is why the sender of the message can
also act as a moderator for the DMC. Hence, it seems that sender-receiver
relevance is a moderator for the DMC.
Based on the research the outcomes of DMC seem to include only value
co-creation. There was no evidence that trust, commitment or loyalty could be
the outcomes of DMC. It was mentioned that DMC can reduce costs, increase
collaboration and reduce risks. This is in line with the suggestions by Grönroos
(2011) that collaboration can produce value for the customer including
increased revenue and business growth capacity. B2B value can also be derived
from customers’ decreased cost levels (Grönroos 2011), which in this study
were suggested coming when digital channels ease the workload and save time
from arranging meetings. The results also show that value can be created on the
customer-to-customer level. This finding is consistent with the suggestion by
Ballantyne and Varey (2008) that value co-creation can take place in an
integrated network, which can include customers, suppliers and competitors.
Last but not least, the results strongly support the findings from Golik Klanac
(2008,141) as she found out that the end-states of customer value in using web
sites are convenience, efficiency and competence. These values are applicable to
other forms of DMC as well.
Finally, the elements of social CRM were analyzed. The results show that
the functions of listening, responding, connecting and collaborating are part of
social CRM. The results show that listening includes collecting and analyzing
online customer data. By collecting online customer data, more precise
communication could be designed (Wilson 2010). However, this research
cannot make further theoretical conclusions of social CRM while there is no
robust or solid theoretical research background. It can only be stated that the
proposed functions of social CRM were found in the research results, but
further and more detailed theoretical examination of these elements should be
conducted.
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6.2 Managerial conclusions
The results of this study give a theoretical frame which could be used in
designing marketing actions in the case context. The description of the means,
moderators and outcomes can help managers in designing digital marketing
communication to meet the salespeople’s and customers’ expectations.
Furthermore, this study gives managers information where the attention in
designing DMC should be directed at.
As the results confirm there is an ideal point for the marketing
communication frequency. In this case, the ideal point is not reached and
communication volume could be increased. There is a chance for increasing
sales as Godfrey et al. (2011) point out that up to the ideal point, the spending
increases when the communication frequency gets higher. Therefore managers
should optimize the communication frequency to meet the customers’ ideal
volume. It should also be considered to which point the communication
frequency should depend on the customer activeness, where the
communication comes only when the customer asks for it. In this case,
customers were getting marketing messages if they had joined in a mailing lists.
Managers should also remember those business buyers who do not actively ask
for communication by joining a mailing list, but could be interested in the
marketing content of the company.
Communication content in DMC should be something that the customers
value. The content can be promotional or relational content. In this case, the
needed communication content was said to be both: information about the
products and services or product offerings (promotional) and information
about the references cases and upcoming events (relational). It was pointed out
that the promotional communication was not at the perfect level and could be
increased. Marketers should pay attention to the fact that not all customers
want to search information from the web sites. Instead, they are expecting
direct communication about the products and services.
In addition to promotional content, managers should also pay attention to
the relational content. The reference cases were said to be a major information
source for decision makers. In this case, the relational communication could be
improved while the customers did not get enough information about
references. A solution could be a reference bank, where the public references
could be collected. This would also help the salespeople to find the relevant
references for the customer. Reference cases could also work as social objects,
which draw people together to discuss and share (Forsgård and Frey 2010, 22).
In addition to reference cases, the event invitations were perceived positively.
Managers are recommended to continue to arrange seminars and events, where
the invitations are send out to targeted customers.
Managers should also pay attention to the form of the message. It was
repeatedly said that there is a rush in the workplaces and there may be only five
minutes pause between meetings. This is why the message should be short, like
71
a snack, which could be consumed on the way to work or in a pause. The
messages should be summarized into a short form and included with a link for
further information. The attention must also be paid for the visualization of the
messages. Videos were said to be powerful tools of communication. But they,
again, need to be comprised in a snack form.
Choosing the best channel for DMC can be demanding. Managers should
optimize the channels depending on the customer preference. For personal
communication chat was mentioned being an quick and easy channel to
communicate although emails are still the most used ones. Nevertheless,
managers could consider extending chat use to all customer relationships. In
designing the channel strategy, it should also be remembered that traditional
channels are still preferred over social media channels. This finding is line with
the research from Friedl & Verčič (2011). They found out traditional channels,
such as emails, are preferred to other channels when the information is
considered strategic.
The results show that in information search Google is the most used one.
This is why appearing in the search results should be emphasized in this case,
while the customers do not know what the company can offer. Placing
company or product information on third party sites could also be effective,
while customers said they do not necessarily search information from the
corporate web sites. Customers also pointed out that they usually do not search
information in the company by themselves, but expect client executives to do
this for them. This is why managers could pay attention to how client
executives could be supported in information sharing and knowledge
management.
Finding the right people who the DMC should be targeted to, is essential
in marketing. Managers should therefore consider whether the sender of the
message should be the employee working closely with the representative of the
customer. Developing buyer profiles could help finding the relevant receivers
of the DMC. Information for such buyer profiles could be collected by listening
tools or web analytics.
Consequently, managers should pay attention to the possibilities of social
CRM. The online customer data is not yet collected as efficiently as possible.
Collecting and analyzing customer data, clickstreams or other related
information in the Internet could bring major advantages to DMC. The
marketing communication content could be designed more efficiently and
targeted more precisely with the help of social CRM. In this case, the customer
listening tools could help gathering the online data and give salespeople more
context information about the customers.
It came clear that there is a need for a new network or community.
Managers should pay attention to connecting the customers as well as the
people in the B2B relationships. In this case, the solution could be a community,
where the customers, references and experts would be found easily. The
comments show that B2B communities need to be closed groups, while business
people do not want to share their information in open forums. This kind of
72
restricted place would offer a channel for sharing the reference information
only those customers who could really use them. In such community, the
customers could find other customers easily and make connections with them
or network. They could freely share their opinions about the products and
services if the communication between the two customers would be hidden.
Such a closed community could offer for DMC process a new communication
channel, where the new relevant content could be shared according to the
customers’ profiles. Also important customer data and clickstream data could
be collected and analyzed, where the data could easily be connected to the
customer profiles.
6.3 Validity and reliability
The value of a research depends on the researcher ability of showing how well
the research was conducted and how credible the findings are (LeCompte &
Goetz 1982). In an academic research, the trustworthiness and quality of the
study can be ensured using various methods or research actions. However, it
has been argued that case studies lack the rigor in terms of validity and
reliability. (Gibbert, Ruigrok & Wicki 2008.) Bonoma (1985) states that ideally
researcher applies triangulation strategies for high data validity and
generalizability. However, he points out that this is rarely the case in withinproject use (Bonoma 1985). This is why other methods are used to present the
credibility of the findings. The research quality in case studies can be estimated
with internal validity, construct validity, external validity and reliability
(Gibbert et al. 2008; Yin 2003, 34). General validity concerns the judgments
whether a researcher is really measuring the things he or she claims to be
measuring. (Mason 2002, 188). Reliability is how reliable, accurate and precise
the research tools are. Data generation, meaning the tools, should be
standardized, neutral and non-biased (Mason 2002, 187.)
Internal validity can be verified in the data analysis phase, where many
case study tactics can be used. Here the researcher must provide plausible
arguments and reasoning those defend the research conclusion (Gibbert et al
2008). Mason (2002, 191) states that validity of these interpretations can be
difficult for the researchers. Interpretations must include a demonstration how
that interpretation was reached and it must be explained how the data is
combined to produce a such interpretation. This way a researcher can
demonstrate that efforts have been made to read the data form alternative
interpretive perspectives. (Mason 2002, 192.) Here, it is important to provide a
clear research framework that clearly describes the variables used in the
research. (Gibbert et al 2008.) A researcher can also use pattern matching with
previous studies or address rival explanations (Gibbert et al. 2008; Yin 2003, 34).
In this study, the plausible arguments are derived from the earlier studies,
73
defending the conclusions. A clear research framework was also created to
support the research.
Construct validity can be controlled in case study research by using
multiple sources of evidence (Yin 2003, 34). The case study design indicates,
after all, researcher’s interpretations of the events, information and reality. It is
not an objective reality, but a perception about the meanings. This is why in
case study design the data is gathered from many resources to support these
perceptions. (Bonoma 1985.) In this study multiple sources of evidence was
used, while both sides of the relationship were interviewed and the same
phenomenon was investigated from two sides. Gibbert et al. (2008) states that a
researcher must triangulate, hence, adapt different angles to examine the
phenomenon using multiple data sources.
External validity in case studies research is one of the most criticized facts
and this has been the major obstacle in making case studies (Yin 2003, 37). The
external validity means that the findings are generalizable beyond the case
study and the theory must correspond to phenomenon in other cases as well,
not just in the case studied (Gibbert et al. 2008; Yin 2003, 37). However, this is
not the case with case studies. Case studies are actually being used because of
their relation to the context (Johnston et al. 1999.) and therefore case studies
should not be evaluated using statistical generalization where the results are
generalized to a larger universe (Yin 2003, 37). In case study research the
external validity should be weighed on analytical generalization where the
observations are generalized to theory. Here, the multiple case study design can
provide the basis for the analytical generalization. (Gibbert et al. 2008; Yin 2003,
34). In this study, however, the multiple case study design was not applicable,
due to the time and resource limitations.
Reliability refers to the goal of minimizing the errors and biases in the
research (Yin 2003, 37). Research reliability in qualitative research concerned the
overall accuracy in the methods and practices, giving assurance that the
researcher has not been careless in recording or analyzing the data or
misrepresented the data. This is why a researcher must show exactly how the
degree of accuracy was achieved. (Mason 2002, 187.) The research procedures
must be well documented and clarified in the case study protocol to enhance
transparency. (Gibbert et al 2008; Yin 2003, 37.) Earlier in this study the entire
procedure of conducting this case study was reported and clarified to a reader
to judge the reliability. The replication can be made out of the case study
database, if later researchers want to conduct the research they could repeat the
procedures and arrive at the same results. (Gibbert et al 2008; LeCompte &
Goetz 1982; Yin 2003, 37). Here, the database includes interviews, the
observations of the interviews, transcriptions, comments on the transcriptions,
theme matrix from the transcriptions and rough summary of the results. The
research database includes also memos, presentations and timetables.
It can be argued that the research language can have an effect on the
reliability. However, the degree of accuracy of the data was achieved by
gathering and analyzing the data in Finnish, in the mother tongue of both the
74
respondents and the researcher. By using the mother tongue also in the data
analysis phase, the errors were minimized. However, some inaccuracies may
occur in the translations presented in the following results chapter.
6.4 Limitations for the study
Based on a qualitative case study approach, limitations of course exist. The
main limitation is the generalizability of the findings. However, qualitative
research is not meant to be generalized to a larger universe, it can only be
generalized to theory (Yin 2003, 37). In this case, the results cannot be
generalized to all digital marketing communication in B2B relationships.
Johnston et al. (1999) point out that B2B phenomenon usually studied in case
research happens in a context with high levels of complexity. This was the case
also in this research. Therefore it can also be argued that high complexity of the
case can reduce the credibility of the result findings.
Some limitations can be found in analyzing and interpreting the results. In
qualitative research, the risk of being biased is obvious. The same person was
conducting, transcribing as well as interpreting the interviews. Therefore the
results can be biased since there was no external validation on the interaction
between interviews and the final analysis. Similarly, the additional themes were
selected by the researcher, what she thought was relevant. However, all the
actions of validity and reliability were conducted with care.
This study was carried out in the context of a case company, where four of
their employees were interviewed against four customers. This of course brings
limitations to the study, where the views of one company are emphasized more
than the other companies. This is why the results of this study can be
considered distorted. In future studies it would be important to choose the
interviewees from several companies and various B2B relationships. However,
in this research both sides of the relationship were interviewed, decreasing the
level of distorted results. It was important also to hear the customers’
perspectives in order to get the complete picture of the phenomenon.
Study design, such as research questions, progress of the research and
research model were not clear from the beginning. It is typical for qualitative
study that the research approach can change during the research and researcher
constantly evaluates the process. This is why the research model was changed
many times before the actual data gathering. This might have affected the topic
guides, leaving some additional questions in the guide. However, the research
themes stayed the same for all interviews during the data gathering.
At the terminological level it can be stated that there was not clear
distinction between marketing communication and “everyday” communication
in the B2B relationship. It can be argued that salesperson can send marketing
communication even though he or she does not use any ready-made marketing
material. Therefore it was hard to distinguish what part of the communication
75
is actually considered as marketing and should be taken into account in this
research. A much more clearer definition of the concept is needed in order to
get more accurate results.
It can also be argued that this research was not profound enough to
deeply clarify the elements of DMC. However, the aim was not to build a
universal model of DMC, but to collect the meanings the case companies and
their employees give to the phenomenon. Again, these results are not
generalizable in a larger scale to cover all digital marketing communications.
Conducting a research in the area of social CRM is challenging while the
literature is still in early stage. A limitation is that literature used examining
social CRM is managerial in nature. Only a small number of companies utilize
the functions of social CRM today. Also the case company did not apply them
in their operations. This is why the results of social CRM should not be
considered as entirely reliable, because they are founded on the wishes and
expectations of the respondents, not on true experiences. However, on the basis
of these expectations, the future actions in social CRM could be proposed.
6.5 Suggestions for further research
For further research, it would be interesting to investigate the connections
between the different DMC elements. For instance, it would be valuable to
know how different content could influence on the value co-creation. The
results also indicated that value co-creation could be the predecessor of trust,
commitment and loyalty. Further research is needed for the evaluation of this
connection. It could be also useful to test the original research model in another
context, because in this study the elements of trust, commitment and loyalty
were not mentioned as outcomes of DMC, in contradiction to the literature.
For further research, it could also be interesting to dig in deeper to one of
the elements. For instance, it could be useful to investigate the form of message,
in order to see which attributes define whether the message is read or watched
in B2B communication. It might be also important to know which attributes
define the relevance of the sender or receiver of communication in a B2B
context.
Although a connection with DMC and social CRM was faintly seen in the
results, more research needs to be done in this area. Further research could
investigate what inputs social CRM can give to DMC design. It could also be
important for researchers to study how the use of online customer data in
designing DMC could influence the outcomes of marketing efforts. Both
research directions DMC as well as social CRM need more reliable and
scientifically approved research results. These studies are extremely important,
if the researchers wish to keep up with the technological developments in the
near future.
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86
APPENDIX 1a: The original topic guide for sellers in Finnish
Haastattelukysymyksiä (myyjä)
Teemoina:
Kommunikointikanavat
Asiakassuhde
Kommunikoinnin sisältö
Kommunikoinnin määrä
Arvon yhteistuotanto
Luottamus
Sitoutuminen
Uskollisuus
Kysymykset koodattu vastaamaan tiettyyn osaa teoriasta:
SCRM= Social CRM
ComF= Communication Frequency
ComC= Communication Content
CP= Channel Preference
IAFunc= Interactivity Functions
IAPro= Interactivity Processes
IAPer= Interactivity Perceptions
CC= Customer Characteristics
REL= Relationship
ComChan= Communication channels
ValCre= Value co-creation
Tru= Trust
Comt= Commitment
LoyAf= Affective Loyalty
LoyBe= Behavioral Loyalty
Avustavat kysymykset:
1. Kerro mitä teet työksesi
SCRM
2. Miten pidät asiakkaisiin yhteyttä?
3. Mitä näistä kanavista/tavoista tykkäät itse
käyttää? Miksi?
4. Mitä luulet että asiakkaat haluavat
käyttää?
5. Minkälainen _________ on asiakkaana?
6. Miten paljon tai miten usein _______ ostaa
ComChan,CP
CP, IAPer
CP
LoyBe, CC, REL
LoyBe
87
teidän palveluita?
7. Miten kuvailisit yrityksenne suhdetta
________ ?
8. Mistä luulet, että se johtuu?
9. Miten kuvailisit sinun suhdetta _______
henkilöstöön?
10. Mistä se taas johtuu?
11. Miten usein pidät yhteyttä
henkilöstöön/henkilöön?
12. Mistä asioista keskustelette?
13. Tallennatteko tietoja keskusteluista
johonkin?
14. Kerro jotain tyypillisiä kommunikoinnin
sisältöjä.
15. Käytätkö valmiita
markkinointimateriaaleja?
16. Ottaako asiakas teihin päin yhteyttä?
Miten usein?
17. Millaisissa asioissa asiakas ottaa yhteyttä?
18. Mitä kautta tämä yhteydenotto yleensä
tapahtuu?
19. Onko välineillä eroa eri vaiheessa
asiakassuhdetta tai myyntiprosessia?
20. Käytättekö esimerkiksi jonkun projektin
aikana online-tiloja?
21. Koetko, että asiakkaat tekevät yhteistyötä
kanssanne?
22. Miten yhteistyö näkyy?
23. Tuntuuko sinusta, että _______ tai sen
henkilöstö luottaa Tietoon?
24. Miten se näkyy?
25. Luuletko, että ______ vaihtaisi helposti
toimittajaa?
26. Miksi?
27. Oletko kuullut, että _______ olisi
suositellut yritystänne muille toimijoille?
Mitä luulet?
Sosiaalinen CRM:
Osallistuttaminen:
Miten paljon itse käytät sosiaalista mediaa? Mitä
esimerkiksi? Mihin tarkoituksiin?
Miten paljon teidän työntekijät käyttävät hyväkseen sos.
mediaa?
Tulisiko työntekijät kytkeä osalliseksi sos. mediaan? Miten?
Miten asiakkaat saataisiin osallistumaan ja olemaan aktiivisia
SCRM, REL
SCRM, REL
ComF
ComC
IAPro, SCRM
ComC
ComC
ComF
ComC
ComChan,
IAFunc, CP
ComChan
IAFunc,
ValCre
ValCre, SCRM
ValCre
Tru
Tru
Comt
LoyAf
88
sosiaalisen median kautta?
Kuuntelu:
Koetko, että te kuuntelette asiakkaita? Miten se näkyy?
Koetko, että yrityksenne tekemää kuuntelua pitäisi kehittää?
Miten?
Sisällön tuotanto:
Minkälaista sisältöä yrityksenne tuottaa asiakasviestintään
tällä hetkellä?
Minkälaista sisältöä toivoisit lisää?
Miten sisältöä voitaisiin sinun mielestä tuottaa? Kuka, miten
ja missä?
Minkälainen sisältö sinun mielestä voisi olla toimivaa tai
hyödyllistä asiakkaisiin nähden?
Mittaaminen:
Miten luulet että asiakkaiden osallistumista tai aktiivisuutta
voitaisiin mitata?
Mitä asioita sinun mielestä tulisi mitata?
Vaikutus liiketoiminnan arvoon:
Koetko, että sosiaalista mediaa käyttämällä voidaan
saavuttaa liiketoiminnan hyötyjä? Mitä?
Voidaanko sosiaalista mediaa hyväksi käyttämällä kasvattaa
liiketoiminnan tulosta? Miten?
Voidaanko sosiaalinen media kanavana tuoda myynnin
avuksi? Miten?
Riskit:
Mitä riskejä luulet sosiaalisen median käytöstä olevan?
89
APPENDIX 1b: The translated topic guide for sellers in English
Interview questions/ topic guide (seller)
Themes:
Communication channels
Customer relationship
Content of the communication
Frequency of the communication
Value co-creation
Trust
Commitment
Loyalty
Questions coded to answer to certain parts of the theory:
SCRM= Social CRM
ComF= Communication Frequency
ComC= Communication Content
CP= Channel Preference
IAFunc= Interactivity Functions
IAPro= Interactivity Processes
IAPer= Interactivity Perceptions
CC= Customer Characteristics
REL= Relationship
ComChan= Communication channels
ValCre= Value co-creation
Tru= Trust
Comt= Commitment
LoyAf= Affective Loyalty
LoyBe= Behavioral Loyalty
Assisting questions:
1. Please tell, in your own words, what do
you do?
2. How do you keep contact with customers?
3. Which of these channels you like to use?
Why?
4. What do you think the customers want to
use?
5. Please describe _________ as a customer.
6. How often or how much do _______ buy
your services?
SCRM
ComChan,CP
CP, IAPer
CP
LoyBe, CC, REL
LoyBe
90
7. How would you describe your companies
relationship with ________ ?
8. From where do you think it comes from?
9. How would you describe your personal
relationship with _______ employees?
10. And why is that?
11. How often do you keep contact with the
employees of the customer company?
12. About what do you discuss about?
13. Do you save information about the
discussion somewhere?
14. Please tell some typical topics of your
conversations.
15. Do you use ready marketing materials?
16. Does the customer take contact with you?
How often?
17. In what kind of situations or issues?
18. Through where do they take contact?
19. Does the channels differ in different
stages in the relationship or sales process?
20. Do you use online-spaces for instance
during a project?
21. Do you feel that customers are
collaborating with you?
22. How is it visible?
23. Do you feel that _______ or its employees
trust your company?
24. How is it visible?
25. Do you think that ______ would change
the supplier easily?
26. Why?
27. Have you heard that _______ have
recommended your company to others?
What do you think?
Social CRM:
Engagement:
Do you use social media? What for example? For what
purpose?
Do you know how much your employees use social media?
Do you think employees could be engaged in social media?
How?
SCRM, REL
SCRM, REL
ComF
ComC
IAPro, SCRM
ComC
ComC
ComF
ComC
ComChan,
IAFunc, CP
ComChan
IAFunc,
ValCre
ValCre, SCRM
ValCre
Tru
Tru
Comt
LoyAf
91
What about customers? How they can be more engaged with
the company in social media?
Listening:
Do you feel that you listen to the customers? How?
Do you feel that your company could improve its listening
online? How?
Content creation:
What kind of online content your company produces for
customer facing communication?
Do you feel it is enough?
What kind of content could be produced? Who, how, where?
What kind of content could be useful to the customer?
Measurement:
What do you think, how customer engagement or activity
could be measured?
What things you think should be measured?
Business value:
Do you feel that by using social media business value could be
gained? What kind of business value?
Can it increase profits? How?
Can social media be used in sales? How?
Risks:
What risks using social media could have?
92
APPENDIX 2a: The original topic guide for customers in Finnish
Haastattelukysymyksiä (asiakas)
Teemoina:
Kommunikointikanavat
Asiakassuhde
Kommunikoinnin sisältö
Kommunikoinnin määrä
Arvon yhteistuotanto
Luottamus
Sitoutuminen
Uskollisuus
Kysymykset koodattu vastaamaan tiettyyn osaa teoriasta:
SCRM= Social CRM
ComF= Communication Frequency
ComC= Communication Content
CP= Channel Preference
IAFunc= Interactivity Functions
IAPro= Interactivity Processes
IAPer= Interactivity Perceptions
CC= Customer Characteristics
REL= Relationship
ComChan= Communication channels
ValCre= Value co-creation
Tru= Trust
Comt= Commitment
LoyAf= Affective Loyalty
LoyBe= Behavioral Loyalty
1. Kerro mitä teet työksesi
SCRM
2. Miten pidät toimittajiin yhteyttä?
ComChan,C
P
CP, IAPer
3. Mitä näistä kanavista/tavoista tykkäät itse
käyttää? Miksi?
5. Minkälainen _________ on toimittajana?
6. Miten paljon tai miten usein ostatte
toimittajan palveluita?
Miten nämä palvelut auttaa teitä?
LoyBe, CC,
REL
LoyBe
ValCre, REL
93
7. Miten kuvailisit teidän suhdetta _______?
8. Mistä luulet, että se johtuu?
9. Miten kuvailisit sinun suhdetta _______
henkilöstöön?
10. Mistä se taas johtuu?
11. Miten usein pidät yhteyttä
henkilöstöön/henkilöön?
12. Mistä asioista keskustelette?
13. Tuntuuko, että saat aina vastauksen?
14. Tuntuuko sinusta, että ______ kuuntelee
teitä?
15. Kerro jotain tyypillisiä kommunikoinnin
sisältöjä.
16. Miten usein ______ ottaa teihin päin
yhteyttä?
17. Millaisissa asioissa?
REL
REL
SCRM, REL
18. Mitä kautta tämä yhteydenotto yleensä
tapahtuu?
19. Toivoisitko toimittajalta lisää viestintää?
20. Minkälaista?
21. Miten saat tietoa esim. palveluista?
22. Onko yhteydenpitovälineillä eroa eri
vaiheessa asiakassuhdetta tai ostoprosessia?
23. Käytättekö esimerkiksi jonkun projektin
aikana online-tiloja?
24. Koetko, että te teette yhteistyötä
__________ kanssa?
25. Miten yhteistyö näkyy?
26. Luotatteko te __________?
27. Mistä se syntyy?
28. Vaihtaisitteko helposti toimittajaa?
29. Miksi?
30. Oletteko joskus suositellut ______ muille
toimijoille?
31. Minkälaista palvelua te arvostatte?
32. Mikä saa teidät tilaamaan ________
uudelleen?
ComChan,
IAFunc, CP
ComF
ComC
ComChan
ComChan
Sosiaalinen CRM
Osallistuttaminen:
Miten paljon itse käytät sosiaalista mediaa? Mitä esimerkiksi?
Mihin tarkoituksiin?
Miten paljon teidän työntekijät käyttävät hyväkseen sosiaalista
mediaa?
Käytättekö itse sosiaalista mediaa liiketoiminnan tukena
LI
ComC
RE
LI
ComC
SCRM
SCRM
IAFunc,
ValCre
ValCre,
SCRM,
ValCre
Tru
Tru
Comt
LoyAf
ValCre
ValCre/Trus
t/Comt
94
yrityksessänne?
Miten ______ näkyy verkossa?
Oletko käynyt __________ sivuilla?
Kuuntelu:
Seuraatteko itse mitä teidän yrityksestä puhutaan verkossa?
Sisällön tuotanto:
Minkälaista sisältöä te tuotatte verkkoon?
Minkälaista sisältöä ______ tuottaa asiakkaille verkossa?
Minkälainen viestintä auttaa juuri sinua jollakin tavalla?
Minkälaista sisältöä toivoisit lisää?
Entä muiden yritysten viestintä? Ootko saanut? Mitä niissä on
hyvää?
Vaikutus liiketoiminnan arvoon:
Koetko, että sosiaalista mediaa käyttämällä voidaan saavuttaa
liiketoiminnan hyötyjä? Mitä?
Voidaanko sosiaalista mediaa hyväksi käyttämällä kasvattaa
liiketoiminnan tulosta? Miten?
Voidaanko sosiaalinen media kanavana tuoda myynnin avuksi?
Miten?
Riskit:
Mitä riskejä luulet sosiaalisen median käytössä olevan?
95
APPENDIX 2b: The translated topic guide for customers in English
Interview questions (customer)
Themes:
Communication channels
Customer relationship
Communication content
Communication frequency
Value co-creation
Trust
Commitment
Loyalty
Questions coded to answer to certain parts of the theory:
SCRM= Social CRM
ComF= Communication Frequency
ComC= Communication Content
CP= Channel Preference
IAFunc= Interactivity Functions
IAPro= Interactivity Processes
IAPer= Interactivity Perceptions
CC= Customer Characteristics
REL= Relationship
ComChan= Communication channels
ValCre= Value co-creation
Tru= Trust
Comt= Commitment
LoyAf= Affective Loyalty
LoyBe= Behavioral Loyalty
1. Please tell, in your own words, what do
you do for living?
2. How do you keep contact with the
suppliers?
3. Which of these channels you like to use?
Why?
5. Please describe _________ as a supplier?
6. How much or how often do you purchase
the suppliers services?
7. How these services help you?
SCRM
ComChan,C
P
CP, IAPer
LoyBe, CC,
REL
LoyBe
ValCre, REL
96
8. How would you describe your
relationship with _______?
9. From where do you think it comes from?
10. How would you describe your personal
relationship with _______ employees?
11. And why is that?
12. How often do you keep contact with the
employees of the supplier company?
13. About what do you discuss about?
14. Do you feel that you always get an
answer?
15. Do you feel that ______ listens to you?
16. Please tell some typical topics of your
conversations.
17. How often ______ takes contact with you?
18. In what kind of situations or issues?
19. Through where do they take contact?
20. Do you wish more communication from
the supplier?
21. What kind?
22. How do you get information for instance
about products?
23. Is there a difference in communication
channels in different stages of the
relationship or a purchase process?
24. Do you use for example during a project
online spaces?
25. Do you feel that you collaborate with
__________ ?
26. How is it visible?
27. Do you trust __________?
28. Why?
29. Would you change easily your supplier?
30. Why?
31. Have you ever recommended ______ to
other companies?
32. What kind of service you value?
33. What makes you order from ________
again?
Social CRM
Engagement:
Do you use social media? What for example? For what purpose?
Do you know how much your employees use social media?
Do you use social media for business purposes in you company?
REL
REL
SCRM, REL
LI
ComC
RE
LI
ComC
SCRM
SCRM
ComChan,
IAFunc, CP
ComF
ComC
ComChan
ComChan
IAFunc,
ValCre
ValCre,
SCRM,
ValCre
Tru
Tru
Comt
LoyAf
ValCre
ValCre/Trus
t/Comt
97
How ______ is seen in the web?
Have you visited ___________ web site?
Listening:
Do you follow what kind of conversations there are in the web
about your company?
Content:
What kind of content you produce to web?
What kind of contend does ______ produce to its customers in
web?
What kind of communication helps you some way?
What kind of content you would hope more?
What about other companies communication? Have you received
any? What is good in those?
Business value:
Do you feel that by using social media business value could be
gained? What kind of business value?
Can it increase profits? How?
Can social media be used in sales? How?
Risks:
What risks using social media could have?