Login or Join

Social CRM: The Social Media Plugin To Make Businesses Customer-Centric

mboysen

Social CRM: The Social Media Plugin To Make Businesses Customer-Centric

comment count 8 comments | 2294 reads
Posted by Mike Boysen on Mar 05, 2010

“Sure, we’re customer-centric”, I hear you saying. “Now, this new social stuff…how can we use it to promote our products?”

One of the big dangers, each time a new term is introduced to the world, is the “latching on” that takes place. People and companies latched onto the term CRM and sucked it dry until it really had no meaning left – and it had been commoditized. The term SCRM is also in grave danger – already. While it has been clearly defined (and a stake put in the ground), social media gurus and consultancies are trying to lay claim to a concept that has little or no cross-over into their specific skills and experience. Sorry for being blunt, but it has to be said (repeatedly).

Whether you like the term Customer Relationship Management or not, the underlying concept is important to understand before you start running out the door waving your CRM or SCRM flag for the world to see. Nothing against software vendors (including social media solutions), but they do it. I get why they do. But when social media consultants do it, I have to draw a line. CRM is about changing business cultures to focus on customer needs and design experiences that add value and reduce friction. The process derived from these strategic changes is supported by both people and technology. Somehow, we allowed the term to be tightly associated with the technology.

I think we’re prepared to fight this battle on the SCRM front. The social extension to CRM is really a means to expand something customer-centric businesses already do – listen to their customers, understand their needs and adapt to fulfill them in a way that creates value. SCRM has more roots in technology, yes. But, it doesn’t change what we’re really talking about here. So, if we’ve already licked this software is the solution problem – after a decade of death spiral – what is the new danger we’re facing?

Enter the Social Media Consultant

Social media is media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). ~Wikipedia

imageThe next time a social media consultant tells you that you can’t run your business without social just keep in mind that the only tool in their arsenal is social media. You can’t just plug in a piece of technology and transform your business.  Read the definition above- written, no doubt, by a social media person.

At first glance, this appears to be a definition for a new SPAM channel. But then it moves on to many-to-many, so maybe that’s a little bit harsh.  I have this bad habit of assuming that certain types of people believe if you make something (like an email) look pretty enough, it’s effective – and not spam. Unfortunately, too many graphic designers have taken over marketing departments – it’s all about touchy feely with them. But do they really understand customer relationships?

Darren Roanoke: How can you be the Love Guru if you’ve never been in a relationship?
Guru Pitka: Well, there is someone I like. But until I learn to love myself, I can only go out with three girls named Ann.
Darren Roanoke: Three girls named Ann?
Guru Pitka: Yeah. Ann Visible, Ann Flatable, and Ann Job.

Let’s be frank, social media gurus are popping up all over the Internet and also in your local business clubs (maybe your board rooms) – trying to use the momentum of SCRM to jump start their consultancies. Maybe they actually believe this is a new market, and that this market will transform a business by simply adopting solutions in their arsenal. And let’s be honest, these solutions didn’t transform any businesses to customer-centric, or improve the customer experience, before the term SCRM, so why would we believe it to be the case now? Where’s the track record to back it up?

Don’t get me wrong, I would never pretend to be an expert in social media. If it becomes a component in a CRM strategy I’m working with, then I will bring an expert in soc med onto my project team. But, what I won’t do is come on board a project that started with a social solution and tries to work itself backwards to a comprehensive customer-centric business strategy. Or worse, it never even attempts to work backwards as it’s seen as the complete solution. In these cases, businesses will simply leverage the solution more and more until it’s simply abused. Gotta get results, right?

Sounds too much like the good old days of CRM failures. Leave CRM to the CRM people, even if there’s an “S” on the front. We’ve been there and done that.. Mariska Hargitay everybody!



Republished with author's permission from original post .

4
Average: 4 (5 votes)
 
Mike Boysen
Mike Boysen, founder of effective-crm-consulting.com, has been a CRM consultant and developer for over 15 years. He became tired of the "software is the solution" mentality in the middle market and has dedicated himself to promoting the true meaning of CRM. CRM starts with a customer focused strategy and ends with software. Anything else is simply backwards.
About Mike Boysen   |   Follow on:
  • Twitter
  • Facebook
  • LinkedIn
  • RSS
Categories:
8 comments »
wimrampen

wimrampen

Don't leave CRM to the CRM people alone

Hi Mike,

Could not agree more. I have a caveat though..

Leaving Social CRM to the CRM people is not enough. We need fresh thinking and ideas to get the best out of social crm. Like you said it yourself. CRM fell into the technology trap and we run the same risk on Social CRM. Just take a look at the Altimeter 18 use cases for Social CRM. They are not bad cases, but it is mainly technology focused.

I'm convinced that we need new methodologies, not technologies to answer to the social Customer. Traditional CRM specialists will not develop these new methodologies by themselves alone.

Opening up to specialists, fresh thinking and methodologies from i.e. the service design / design thinking "school" might just give a Social CRM strategy the fresh inputs CRM needs to break the silo's, both vertically and horizontally and to break the company centric relationship logic, which still is the bases of many CRM strategies and solutions.

I would say: don't leave CRM to the CRM people alone, if you want the S on the front. They have been there and done that. It is time to bring in fresh thinking.. (and bringing in a Social Media specialist is not enough..)

mboysen

mboysen

Wim, There's something that

Wim,

There's something that I feel I need to share with everyone. My definition of "CRM" consultant has changed dramatically over the past 5-6 years. When I use the term, it's more about where I see myself (even though I'm still in the technology game). You're right, we need more than software implementers.

I'd like to see teams (or people) who have a broad set of perspectives. The point of my post was to challenge "social media" consultants who are branding themselves as Social CRM.

Mike Boysen
Effective CRM

graham_hill

graham_hill

CRM, and SocCRM is about Customers

Hi MIke

I share your sentiments entirely.

SocCRM is being taken over by the vendors, just as CRM was. Its all about marketing, sales and service, just like it was for CRM. Reinvented SocCRM Gurus are popping out of the woodwork right, left and centre, just like they did for CRM. And customers are getting left behind in the rush to implement the latest new fad. Just like they were by CRM.

CRM was really about customers. But the CRM industry never stopped for long enough to recognise that obvious fact. SocCRM is even more about customers. But has the new SocCRM industry stopped to think about customers. And what they want? What they really want? Not a chance!.

I have this awful feeling deep in the pit of my stomach that the problems that plagued CRM are just waiting to strike SocCRM down too.

George Bernard Shaw said that, "The only thing we learn from history, is that we learn nothing from history". This is as true for SocCRM as it was for CRM before it.

Graham Hill
Customer-centric Innovator
Follow me on Twitter

Interested in Customer Driven Innovation? Join the Customer Driven Innovation groups on LinkedIn or Facebook to learn more.

mboysen

mboysen

Thanks Graham

I may not always think through my posts as completely as some. This one came from the deep concern that we obviously share.

Mike Boysen
Effective CRM

Joyce Hostyn

Put people at the center, then design new ways of working

Couldn't agree more with your statement that: "CRM is about changing business cultures to focus on customer needs and design experiences that add value and reduce friction. The process derived from these strategic changes is supported by both people and technology. Somehow, we allowed the term to be tightly associated with the technology." Focusing on the technology leads to failure. And SCRM runs the same risk.

Customer-centricity, collaboration, true two-way conversations with customers and SCRM in the best sense of what it could be can't happen if the organizational culture doesn't shift to put customers (people) first and understand the socio-cultural context in which they live, work, and play.

Bring in the ethnographers. The anthropologists. The designers. The storytellers. Apply design thinking both within the organization to design new ways of working and outside the organization to design new relationships with customers, partners, and suppliers.

mjayliebs

mjayliebs

Vendors are part of the problem...but only part

Mike,

Important post, thanks for putting it up.

@Graham, I wanted to share just a quick note here. While the vendors may in fact be a part of the problem, it is a position that may be enabled by many elements, some not really within our control. Yes, I am with a vendor (I know you knew that, others may not).

If you look at the recent announcements, blogs, shared works, much of what analysts, consultants and others are using to define Social CRM is by traditional magic quadrants and use cases lead by what vendors can provide. Few of the analysts are asking customers, what their customers need.

So, I respect and take very seriously the role of the vendor here - I think it is also about 'follow the money' to which the responsible parties list, is much greater. That said, it does not make the problem any better, nor solve it. Identification is a good first step though...

I agree with Wim's comments as well, we do need more thinkers and leaders outside of the echo chamber. Group think can and will cause as many problems as other issues identified.

Mitch

Mitch Lieberman
http://twitter.com/mjayliebs

mboysen

mboysen

Mitch, I think most of us

Mitch,

I think most of us veterans are aware of mistakes made in the past and you can hear it in vendor messages. But, as Paul Greenberg points out in his latest edition, the day after they've acknowledge it's about the customer, they have to sell their software.

I think the burden is on the consultants to educate businesses better. Many of us have a history of leading with software features. That's changing, maybe too slowly, but some of us are being very vocal about it in our channels. It's good to know someone on the software side "gets it" as I personally know that you do.

Mike Boysen
Effective CRM

Gravity Gardener

Outstanding Customer Service

Outstanding Customer Service is an evolutionary process that can take months or even years to develop. Improving customer satisfaction has to start with the culture from executive management down through the organization. It must be entrenched within the company so that every decision be focused on what the client needs, wants or demands.

From the product line to the receptionist, your customer face should always carry a consistent message of service and quality. If these messages are not conveyed at every level of the organization, your customer will eventually find your competitor and go elsewhere.

Here are 3 ideas to improve client satisfaction within your product or service business:

1. Listen - A simple step toward satisfying your customer is to listen to their wants and needs. If you believe you know more about what the customer wants than they do, you will be out of business in no time.

2. Be Sincere - When you begin listening to customers and focusing on their issues, there will be a time when you cannot perform to their expectations. In some cases, they are going to want something you cannot or will not be able to provide because it does not make business sense. Sincerity goes a long way in delivering the message they do not want to hear. If you the delivery is truly sincere and presented that way, the customer will not like it but will understand if the information is reasonable and the partnership is strong.

3. Communication - It is common sense to have a fluid communication between partners and customers expect the same thing. Within every relationship, each partner has responsibility to tell the other if there is something wrong that could lead to a larger problem. Without a strong communication and feedback mechanism, you will assume your customer is doing ok, when in fact they are frustrated and ready to jump ship.

Gravity Garden
http://gravitygarden.com/build-customer-loyalty/improve-customer-satisfa...

Post new comment

The content of this field is kept private and will not be shown publicly.
 
  • Allowed HTML tags: <a> <br> <img> <em> <i> <b> <u> <hr><strong> <table> <tr> <td> <th><ul> <ol> <li> </li><font><blockquote><sup> <colspan> <rowspan>
  • Lines and paragraphs break automatically.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Images can be added to this post.
  • You can use BBCode tags in the text, URLs will automatically be converted to links.

More information about formatting options

You can change the default for this field in "Comment follow-up notification settings" on your account edit page.
CAPTCHA
Are you human? (This question helps prevent automated spam submissions.)

MarketPlace

Global Customer Experience Management Certification Program

[August 19-20, Johannesburg] Learn cutting-edge CEM methods from a team of international gurus. This 2-day course applies CEM essentials, strategies and methodologies on Marketing, Sales and Services; provides a framework with relevant guiding principles and tools for designing the best experience to your customers.

Customer Experience Management (CEM) Certification Program

[Oct 5-7, Scottsdale; Nov 15-16, London] Innovate, Differentiate, Execute–Learn how from the leaders who did it. Packed with 200 templates, tools and fast affordable ideas, this 2-day workshop is your path to execution. Money Back Guarantee.

Lessons in Loyalty: How Southwest Airlines Does It - An Insider's Point of View

Southwest Airlines recognized long ago that they were in the customer service industry, they just happened to fly airplanes. They built and maintained one of the most faithful customer bases in existence today. Read this white paper to discover how to boost the level of customer loyalty in your organization.

Empower Mobile Salesforce.com Users to Close More Deals

The economy may be recovering, but is your sales force prepared to capitalize on increased demand? Learn how to empower on-the-go sales reps with innovative mobile sales tools and electronic signature solutions to increase sales productivity.

Social Media Customer Service: Show Me the Money (or the Gold)

Hundreds of millions of engaged consumers have flocked to social media sites, with companies rushing to mine this new opportunity. Learn how the winners have approached this early "gold rush" by incorporating social media in cross-channel conversations, using social media analytics and engaging customers.

Social Business Executive Summit: How to Win in the Social Economy

This virtual Summit featured thought leaders in Social CRM, Enterprise 2.0 and Social Media Marketing. View recordings and download slides from six sessions on social business strategy, customer communities, employee collaboration... and how social computing will transform marketing, sales and customer service. Recorded May 25-27, 2010. Sponsored by InsideView, Genesys, Jive, Marketo and RightNow.

Using Social Media To Enhance Your Customer Feedback Program

Traditional Voice of Customer programs rely on survey techniques. Now the Social Web provides an additional source of customer feedback data. Learn how to use social media to listen, analyze, and act on vital feedback from your customers.

Featured Links

Salesforce CRM

The leader in customer relationship management and cloud computing.

CEM Training and Certification

Patent-pending methodologies combine the art and science of Customer Experience Management.

On-Demand CRM Software

Use RightNow solutions to create the best possible customer experience while reducing costs.

Get your event or resource listed in the MarketPlace, reaching 300,000 business leaders monthly.
For more information, contact CustomerThink advertising sales.