social crm: a function or a business strategy

Anandan PillaiFPM Research Scholar,

MDI, Gurgaon

Social CRM / CRM 2.0:A Function or a Business

Strategy ?

DefinitionsCRM is a philosophy and a business strategy supported

by a system and a technology designed to improve human interactions in a business environment. (Greenberg, 2003)

Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, processes, and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It’s the company’s response to the customer’s ownership of the conversation. (Greenberg, 2010)

Traditional CRM

Traditional CRM – ‘Operational’

Weaknesses of Traditional CRM Reactive measureTransaction orientedLess involvement with customersLess chances of amending value

proposition

Drivers of SCRMMobile devices & Internet penetrationCustomer’s online purchase behaviorE-commerce / M-commerce / F-commerceSocial network phenomenonIncreasing brand participation in social

networksOpen tendency of people to discuss and

share onlineContent available in various formats – text /

audio / video / games etc.

Gen C

ContentConnected (with

peers)CreativeCollaborative (with

firms)Contextual Communicative

Source: Greenberg (2010)

SCRM Process

SCRM Process

Rich Information CapturedTransaction dataCustomer ProfilesCustomer Experience MapsSocial Network AnalysisUser Generated Content (UGC)

Traditional vs. Social CRMTraditional CRM Social CRM

Focused at the end of value chain

Focused throughout the value chain

Transactional / Operational

Relational

Customer “Management” Customer “Engagement”

Inside – out Outside-In & Engagement oriented

Isolated technologies (Siebel, Oracle, SAP)

Integrative technologies (Database oriented + Social)

One – way communication Dual way communication

Intellectual property owned by firm

Intellectual property shared between firms and stakeholders

Marketing oriented Strategic Management

RoI of SCRM effortsImproved brand experiencesIncreased SalesEnhanced customer knowledgeIncreased number of brand influencers in

marketPositive word of mouthPositive sentiment about brand

SCRM Framework

Woodcock, Green & Starkey (2011)

Case study 1Book- CRM at the Speed of LightAsked questions in communities like

LinkedIn & Plaxo to connect with CRM experts

Asked questions on Twitter, FriendFeed, Facebook

Setup a wiki PbwikiAward winning personal blog PGreenblog Third party blogs on social customer. Community gave suggestions via mail,

phone, wiki, blog, community discussion, Twitter, surveys etc.

Case study 2SheepStopCrowdsource T-shirt designsSelection of designs by polls on FacebookSelling of T-shirts by bids on Twitter

Case study 2SheepStop

Case study 3HP – Project FusionUnstructured data (Amazon.com reviews,

customer surveys,  customer support logs, and other natural-language text)

Structured data (customer support tickets, sales transactions, customer demographics)

Using HP Labs’ new text analytics technology, the team first converted the unstructured data into a structured format

Identify sentiment more granularly than other solutions

Deployed specialized support staff before customers call for help

Case study 4Hippo (Parle product)No vendor management system in placeNo push salesGenerated pull through Twitter“If you don’t find Hippo, Tweet us, we will

reach there”Managing supply chain, product variety

through active listening and engagement on Twitter.

Case study 5Ching’s Secret (Capital Foods Ltd.)Automated alerts setup with the help of

tools to track any conversation about brand on web.

Responded messages within ‘5 minutes’ between 7 am and 11pm (7 days a week!)

36 people monitor their brand – Food technologists, Chefs, Leadership team, Sales, Marketing, etc.

6 months content database is kept ready!!

Challenges24 x 7 listeningDig / store / create & share content Changes in organizational structureChange in organizational culture /

philosophyCombined commitment and enthusiasm

towards a central goalStreamline internal and external processesBuild community around brand

Takeaway ?

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