As Deming said that “Profit of business comes from loyalty customers, customers that praise about your product and service, and that introduce friends and influence their behavior.” Customers become so powerful with information, However, living in a dynamic environment, consumers are more doubting than ever and do not stand firm the way they make purchasing behavior. Therefore, Customer relationship management has become a useful tool to build long-term customers’ loyalty. The consumer’s voice is now much louder and persuasive; there are 80% of customers are willing to believe reviews and post-purchase experiences. It can say that most customers are buying a product through having a trial of a product or based on other customers’ recommendations (92% of customers read recommendations before buying online).
The User-Generated Content has become an intangible asset of companies. Here are some data can back up this opinion. Customer-generated contents are the best communication tools that customers are more likely to make a purchase decision when the reviews and rating are relatively high. Therefore, it is important for marketers to use the intangible asset (User-generated content) to achieve the tangible results (high market share).
However, the user-generated contents still have some weakness that marketers need to overcome. Firstly, as the UGC becomes popular, the marketers may take some actions to influence customers review. For instance, business will give customers a voucher or discount to encourage customers to leave positive reviews to influence the potential buyers and increase sales volume. Therefore, the quality of content might be uncertain at the most of times. On the other hand, businesses aim to gain market share from competitors; marketers may spend money to hire people to leave the unfavorable reviews under the competitor’s official websites. Those contents are highly unreliable and untruthful due to the source is unknown. Here is a strategic solution to help companies to reduce fake reviews. They can encourage customers take photos or videos of their products when leaving a recommendation. Or send an invitation letter to evaluate the products and service to the client who within the customer lists.
The term “Customer Relationship Management” which refers to maintain a long- term customers loyalty through collecting data about customers purchase behaviours and customers lifetime value. The positive word of mouth will leads to increase in company revenue.Therefore, Customer relationship management is a key when people are doing marketing. Satisfying customer needs will further improve customer experience, increased revenues, and reduce costs.
Moreover, here is an application called Reputation management which can efficiently solve negative User-generated contents, then re-build reputation through new company image and high quality of products.
If your run a business, what strategies are you going to take to achieve higher quality customers’ contents?