The Evolution Of Social CRM
What is social CRM?
- Short for customer relationship management, CRM is a company's strategy for overseeing clients and sales prospects.
- Social CRM is a philosophy business strategy designed to engage the customer in a mutually beneficial relationship. It's supported by social technology, business rules, workflow and processes.
Who is the social consumer?
- Consumers information and learns about breaking news through sites like Twitter and Facebook.
- Learns about new products through social channels and networks.
- Is wise to unsolicited promotions and trusts only relevant information.
- Desires a conversation with the brand rather than one-way ad messages.
- Expects brands to be active in the same social media sites he/she hangs out in.
- Wants brands to listen, engage and respond quickly.
Old guard traditional CRM
- #1 Collected customer information.
- #2 Sales, marketing & service support.
- #3 Customer: Traditional CRM is based around information that companies could collect on their customers and then input into a CRM system that allows them to better target various customers.
- "It's very important to keep in mind that social CRM is not a new "thing" that replaces CRM, it's simply an evolution of what CRM has always been" - Social mEdia Examiner.
Old guard traditional CRM
- #1 Customer engagement.
- #2 Customer supplied information, support, criticism and ideas.
- #3 Sales, marketing, service & support.
- #4 Customer. Social CRM's key changes: 1) CR Department. In most organizations today, the Customer Relations department will play a bigger role by taking charge of the brand's social presence, while handling customer
engagement online; 2) Advocacy and experience. Rather than sending passive messages to customers, companies are now actively engaging with them to incorporate them into the system as advocates. Now, there is collaboration
amongst both parties to solve business problems.
How CRM evolved into social CRM
- Who: 1) CRM (specific departments); 2) Social CRM (everyone).
- What: 1) CRM (company-centric process); 2) Social CRM (customer-centric process).
- Where: 1) CRM (defined channels); 2) Social CRM (customer-driven dynamic channels).
- When: 1) CRM (set business hours); 2) Social CRM (customer-set hours).
- Why: 1) CRM (transaction); 2) Social CRM (interaction).
- How: 1) CRM (messages flow outside); 2) Social CRM (messages come inside).
Why social CRM is more influential
- Modern consumers are changing and evolving with the growth of social media.
- When deciding to engage with brands via social media, users look for: 1) Incentives (77%). Examples (coupons, free offers); 2) Effective problem solving (46%). Examples (customer service reps); 3) Feedback solicitation (39%).
Examples (polls); 4) Entertainment (28%). Examples (access to good, premium content); 5) New ways to interact (26%). Examples (widgets, online games, mobile apps); 6) Specialized marketing (21%). Examples (targeted banners).
- American consumers who: 1) Go online to verify purchase recommendations - 81%; 2) regularly interact with companies on a social media site - 60%; 3) Read user reviews - 55%; 4) Search ratings on web sites - 43%;
5) Say companies should use social networks to help customers - 43%.
How it's used correctly
- Companies are beginning to figure out that social CRM adoption must be company-wide in order for peak efficiency. Some are also finding that adding more "community managers" helps greatly.
- Big names that do it right: 1) Dell; 2) Intuit; 3) H&R Block; 4) ComCast.
- "Innovation is matching adoption and it's going to happen very rapidly in the next few years" - Jeremiah Owyang, Forrester Research, Inc.
How it's used incorrectly
- According to Gartner.com, by 2010 more than 50% if companies will have created an online community but will fail to manage it effectively, instead driving customers away.
- "Rushing into social computing without clearly defined benefits for both the company and the customer will be the biggest cause of failure" - Gartner.com.
Satisfaction - www.getsatisfaction.com | Sources: Social Media Examiner; Cone Business In New Meadia Study, 2010; Gartner.com; Chess Media Group; Mycustomer.com; Mitch Lieberman.