Very Detailed Thoughts on Social CRM and the Value it Provides

“Social CRM is based on the simple premise that you are able to interact with your customers based on their needs, not your rules. It is an extension of CRM, not a replacement, and among the important benefits is that it adds value back to the users and customers.  It is the one part of the social business strategy which addresses how companies need to adapt to the social customer and the expectations these customers have with respect to companies they do business with. With a focus on strategy, customer engagement and relationships, Social CRM moves beyond management of customers, transactions, and money.

Social CRM is a strategy first, but it will not be successful if it is not supported by people, processes and technology with defined goals and objectives. The way customers are interacting with companies and a companies’ brands is changing and this poses a challenge; a challenge of volume of new data, scale and speed.  Social customers are now in control of a significant part of the business eco-system, not just as purchasers, but as influencers.  Individuals are influenced by friends, friends’ friends and friends’ friends’ friends. For Social CRM to be successful, and by extension the businesses who employ the strategy, we must recognize the power of social networks.”

A balanced approach is a critical success factor

We believe that one of the most important extensions that Social CRM adds to traditional CRM is the inclusion of a business strategy (maybe even a Social Business Strategy), specific to customer engagement and customer experience, beyond just an implementation strategy. Traditionally, CRM has been thought of as just a technology framework, thus Social CRM is often discussed as simply new tools on top of that framework. We work hard to build the case that Social CRM has value beyond simply social technology. Yes, social technology is a big big part in many instances, but it is more about how you, as an individual, and as a company, interpret information and communicate. If Social CRM goes the way of CRM and simply becomes a technology platform with bolt-on utilities and some new channels, I will personally be disappointed. I do not believe that is the way it is going.  Social CRM is not only about strategy either, it is about a balanced approach to modern business problems – modern problems are driven by modern customers, who are hyper-connected and smart (in other words, they started using the technology first).  The balance includes many many elements, and as an organization you should make active decisions on what to use and when to use it. Choosing not to do something is different from simply not doing it.

A Social Business will likely begin at the department, or even individual layer within an organization, the tools and technology will aid the executive office in adding cohesion to the strategy.  It would be preferable, moving forward, that the Social Business strategy would begin from the top with executive support and from the bottom with a willingness to try new things, working towards the middle, together. Social CRM and online communities might be different from the internal parts of the organization and their collaboration efforts, but as Social Business matures as a practice, the two concepts will continue to merge. Each organization will not need to completely rebuild (retool), but they will be able to build upon the solutions already in place and extend them to meet the demands placed by the consumer, partner or supplier. Important to both, crucial even, are the cultural issues which will likely arise due to a lack of understanding, a resistance to change and the earlier struggles which a more than likely to occur due to uncoordinated efforts to track the connection to revenue (Yes, in all this Social, business do still need to make $).

I have had the great opportunity to work during the past few weeks with Connie Chan and Jacob Morgan putting together the details our perspective on just what Social CRM is, and the value which can be achieved by understanding it. I am looking forward to continued work with Chess Media Group, and mutual customers as we work to put our words into practice. We hope you enjoy our work!