2. What is Social CRM
Traditional CRM (Customer Relationship Management) is a
business model for managing a company‟s interactions with
existing and potential new customers
Customer Loyalty Cards
Recognition Cards
User registration on websites.
Traditional CRM is typically a business to consumer relationship
Sales
Marketing Customer
Service &
Support
3. What is Social CRM
Social CRM (SCRM) or CRM 2.0 as it is sometimes known is an
extension of Traditional CRM to incorporate and influence
consumer activity that occurs in virtual communities generated
as a result of Social Networking
Not technology but a business strategy
The aim of SCRM is to build a more collaborative relationship
with „social‟ consumers in which there are perceived benefits
for both parties
Co-creation of solutions, products, services
Crowdsourcing for ideas
Customer Service/Support
4. Traditional to Social CRM
Competitor
Customer Customer
Customer Company Customer
Customer Customer
Traditional CRM Social CRM
Partner The control of the relationship
The Company has control
over its relationships with switches to the customer.
their customers. Business have limited
influence of customer to
customer communications
5. Why use Social CRM?
Social Networking has grown exponentially in the last decade
becoming a primary means of communication in society
1bn + Registered Facebook users
500mn + Registered Twitter users
WOM marketing is proliferated through the use of social
networking. Negative brand exposure is a concern for
businesses
“Consumers are much more trusting of friends and colleagues
than they are of TV advertising or corporate communications”
(Woodcock et al, 2011)
Social Customer Service - 70 percent of consumers turn to
social media to ask questions about a product, brand, or
company and 49 percent of these consumers use the
information they gather to make a purchasing decision (Coyle
et al, 2012).
6. Customer Service goes Social
Continuum of helpfulness (Coyle et al, 2012)
Random acts of kindness via Simple acknowledgement of
microblogging platforms customers problems or concerns.
Gave customers personalised gifts when boarding
their flights through using Social media
„A man traveling to Mexico to build houses for the
homeless was given a care package of muscle
ointment and adhesive bandages‟
7. @twelpforce Best Buy Customer Service
Best Buy adopted a „Networked Hive‟ approach to Customer
Service
This took advantage of the wealth of knowledge in the staff of
Best Buy and empowered them to answer any customer
queries channelled through @twelpforce
Estimated $5mn savings in call center deflection
8. Social CRM Overview
Self Service
(Community)
Co-creation
Customer
Customer Service
Research
Social CRM
Recruitment
Sales
Target
Idea Marketing
Generation Events
Promotion
9. Summary
Social CRM is an extension of Traditional CRM
The shift of the relationship between the business and its
consumers switches to consumer in their ability to influence others
in their network
The aim of Social CRM is to increase customer engagement an
build more intimate collaborative relationships
Social customer service is a necessity for businesses to engage in
due to consumer demand for interaction through social
networking
Customer Service is but a small part of Social CRM strategies
10. References
Woodcock, N., Green, A., Starkey, M. (2011, February 9 th). Social CRM as a business strategy.Journal of Database Marketing &
Customer Strategy Management, Vol. 18 (No.1), p50-64 Retrieved November 6th, 2012 from
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=52f1d639-d531-42e4-b923-
a843d293b281%40sessionmgr104&vid=2&hid=105
Baird, C. H.,& Parasnis, G. (2011, June).From social media to Social CRM. Retrieved October 31st, 2012 from http://www-
935.ibm.com/services/uk/cio/pdf/social_media_Part_Executive_Report.pdf
Coyle, J, R., & Smith, T., & Platt, G. (2012). “I‟m here to help”: How companiesmicroblog responses to consumer problems influence
brand perceptions, Journal of Research in Interactive Marketing, 6(1). Retrieved December 17, 2012 from
http://www.emeraldinsight.com/journals.htm?issn=2040-7122&volume=6&issue=1&articleid=17035867&show=html
http://www.digett.com/2011/01/11/klm-surprise-how-little-research-earned-1000000-impressions-twitter
http://socialtimes.com/klm-twitter-response_b78650
Notas del editor
Reminder on existing theory of Customer Relationship Management (CRM)Important to first start with Traditional CRM methods because social CRM does not work in isolationTraditional CRM is typically a business to consumer relationshipRelationship is pushed by the business not by the consumer.Consumer does benefit however business drives the relationship- Giving up data/information, spending patterns, contact details, etc.
Social CRM is an extension of Traditional CRMNot a standalone solution or method, but complements existing CRM strategiesSocial CRM is more of collaborative relationship between a business and its consumersHave to be seen to be helpful or engaging in a way that is beneficial to both partiesIf benefits are only seen to the business then Social CRM strategies will not be successful-
This diagram emphasizes the new relationships created through Social Networking and Social CRM.Customers have the ability to talk directly with the businesses they have an interest in, however what is said (and more importantly how it is dealt with) is visible to their communities.Customers have new channels (social networks) from which they can communicate and engage with other businesses (competitors and partners)In social networking businesses loss an element of control in a customers ability to influence their virtual communities
Viral Marketing is a marketing technique that is used to create brand awareness through word of mouth (WOM)Prior to social networking these were just discussions you would have with a few peopleNow status’s and tweets go out to hundreds if not thousands of users at a time proliferating the rate at which viral spreads.These views are not always positive!!! Therefore there is sometimes a need for businesses to intervene with social conversations in order to ensure that the end result is positiveCustomers are demanding engagement through Social mediaSocial CRM is sometimes seen as an opportunity to build more intimate relationships with customersHowever statistics like this suggest it is more of a necessity
KLM (Dutch Airliner) used Twitter to communicate with its customers during the ash cloud crisisMost customers saw this as really helpful and appreciated the effort that KLM had shownLive reply – personalised responses via video using KLM staff streaming live.May ask what are the benefits in this – However as mentioned before this is personalised customer service and will proliferate through networks of people very fast through social media- Not only through networks but media catch wind of things quicker through social networking which creates brand buzz
More typical approach to customer service than KLMNetworked Hive approach to Customer ServiceEmpowered employees to answer questions, 2900 of them signed up to answerBenefit in terms of cost is always something that concerns managers when concerned with Social CRM – hard to measureHowever here the estimated cost savings show that there is money to be made/saved in utilising social networks to engage with customers
