Social media prompt rethinking of customer value
The rise of social media has required companies to reevaluate the way they determine customer value, which in turn can reshape customer engagement strategies, according to a new report from the Economist Intelligence Unit.
Measures of customer value that focus solely on transaction activity capture only a fraction of an individual's behavior and potential value.
The report also identifies a clear need for technology to help organizations maximize social media efforts.
Organizations are now starting to think about the value of influence and collaboration – particularly given the growth of social media -- instead of focusing on revenue or profit associated with an individual's or household's transactions.