You keep hearing about this social customer relationship management (CRM) thing, right? It’s definitely been a hot topic.
Here are some important points to consider when thinking about social CRM.
CRM is comprised of sales, marketing and service/support–based functions
whose purpose was to move the customer through a pipeline with the goal of keeping the customer coming back to buy more and more stuff.
Traditional CRM was very much based around data and information that brands could collect on their customers, all of which would go into a CRM system that then allowed the company to better target various customers.
PR
now has a very active role in social CRM (in fact, PR typically owns
budgetary control and authority of social initiatives ahead of every
other department). In most organizations, PR departments manage the social presence of brands and handle the customer engagement.
The next change we can see is that advocacy and experience are crucial components of social CRM, which all revolve around the customer. In the first CRM image above, you’ll see that the customer is not really a part of CRM—there’s no collaboration, no relationship.
In social CRM, that has completely changed. The customer is actually the focal point of how an organization operates. Instead of marketing or pushing messages to customers, brands now talk to and collaborate with customers to solve business problems, empower customers to shape their own experiences and build customer relationships, which will hopefully turn into customer advocates.
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.
This is just a small sampling of the available data on the web that shows
how consumers are changing and evolving with the growth of social media.
The challenge for organizations now is adapting and evolving to meet the needs and demands
of these new social customers. What’s shocking from some of the above stats
is that many organizations still do not understand the CRM value of social media.
One of my favorite quotes from Gartner states:
“By 2010, more than half of companies that have established an online community will fail to manage it as an agent of change, ultimately eroding customer value. Rushing into social computing initiatives without clearly defined benefits for both the company and the customer will be the biggest cause of failure.”
Social CRM is about moving from fans and followers to customers and advocates.
By Jacob Morgan
www.socialmediaexaminer.com
Here are some important points to consider when thinking about social CRM.
- Social CRM is first a strategy that is often supported by various tools and technologies. The strategy is based around customer engagement and interactions, with transactions being a byproduct.
- Social CRM is still about CRM (but evolved), meaning a back-end process and system for managing customer relationships and data in an efficient and process-centric way.
- Social CRM will mean different things to different organizations. The key is being able to understand the business challenge you’re looking to solve, and then solving it.
- Social CRM is one component of developing a social or collaborative business, both internally and externally.
Understanding CRM
You can see that CRM has traditionally consisted
of one-way communication between a brand and the customer.
whose purpose was to move the customer through a pipeline with the goal of keeping the customer coming back to buy more and more stuff.
Traditional CRM was very much based around data and information that brands could collect on their customers, all of which would go into a CRM system that then allowed the company to better target various customers.
Understanding Social CRM
In this diagram, you can see many of the same elements as in CRM;
however there are a few differences.
The next change we can see is that advocacy and experience are crucial components of social CRM, which all revolve around the customer. In the first CRM image above, you’ll see that the customer is not really a part of CRM—there’s no collaboration, no relationship.
In social CRM, that has completely changed. The customer is actually the focal point of how an organization operates. Instead of marketing or pushing messages to customers, brands now talk to and collaborate with customers to solve business problems, empower customers to shape their own experiences and build customer relationships, which will hopefully turn into customer advocates.
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.
Why The Evolution Happened
This is just a small sampling of the available data on the web that shows
how consumers are changing and evolving with the growth of social media.
The challenge for organizations now is adapting and evolving to meet the needs and demands
of these new social customers. What’s shocking from some of the above stats
is that many organizations still do not understand the CRM value of social media.
One of my favorite quotes from Gartner states:
“By 2010, more than half of companies that have established an online community will fail to manage it as an agent of change, ultimately eroding customer value. Rushing into social computing initiatives without clearly defined benefits for both the company and the customer will be the biggest cause of failure.”
Social CRM is about moving from fans and followers to customers and advocates.
By Jacob Morgan
www.socialmediaexaminer.com
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