Area

Old (Web 1.0)

New (Web 2.0)

Business Philosophy

IT-enabled relationship marketing

IT-enabled relationship marketing

Technology base

Web 1.0 technology(static pages, file system, communication via E-Mail separated from website)

Web 2.0 technology/Social technology (user-generated content, usability, interoperability)

Digital part of business processes

Transaction based: one-to-one interaction

Interaction based: dynamic, many-to-many interaction

Interaction place

Defined channels: E-Mail, phone calls, websites, stores, etc.

Dynamic customer-driven touch-points realized in social media

Segmentation of users and participants

Traditional demographics

Dynamic, flexible and temporary segmentation if at all

Broadcast message flow

Push-based, inside-out

Pull-based, outside-in

Control

Firms and established organizations

Social customers

Design/analysis scope

Internal focus: one (part of an) organization

Value chain through total organization or group of organizations

Data store

360° customer transaction data

All interactions or conversations across all touch points; user contributed contents

Data analysis

Subject-oriented analysis

Network analysis

Metrics

Transaction based:

Customer life-time value (CLV), share of market, RFM analysis measures (RFM = Recency, Frequency, Monetary)

Interaction based: Customer referral value (CRV), share of voice, size and engagement of communities, sentiment

Viral marketing (information is spread like a virus)

Not possible

Can easily develop a viral marketing campaign

Crowd sourcing

Not possible

Integral part of SCRM strategy (SCRM = social media CRM)

Customer loyalty

Static, repeated patronage

Dynamic, eWoM (electronic Word of Mouth), advocacy