social crm - myths & realities

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Social CRM: Myths and Realities PREPARED BY: Dean Westervelt Metrics Marketing Group 905 Corporate Way Westlake, Ohio 44145 877.332.9222 March 17 th , 2011 www.metricmarketing .com CONFIDENTIAL © Metrics Marketing 2010

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Like “optimization” before it, “social CRM” (sCRM) is the latest catchphrase that has marketing and customer intelligence professionals abuzz.Broadly, social CRM is the application of emerging social technologies, strategy, and data to traditional customer relationship marketing (CRM) practices. Core sCRM components to consider when extending traditional CRM approaches are strategy, data, and underlying technology used (e.g., text mining).Learn to separate the myths about sCRM from the realities. This presentation will highlight current realities and challenges facing each of these three foundational aspects of sCRM.

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Medical Mutual of Ohio

Social CRM:

Myths and RealitiesPREPARED BY:Dean WesterveltMetrics Marketing Group905 Corporate WayWestlake, Ohio 44145877.332.9222

March 17th, 2011

www.metricmarketing.com

CONFIDENTIAL Metrics Marketing 2010122010 Metrics Marketing Group | All Rights Reserved Webcast HousekeepingAsk questions throughout the presentation using the Questions button at the top of the screen

All questions will be answered at the end of the presentation

Please report any technical difficulties to [email protected]

232010 Metrics Marketing Group | All Rights Reserved Todays Presenter: Dean Westervelt

Dean Westervelt works as a consultant in Metrics' consulting and analytical services group, with a focus on both interactive and traditional marketing.

Dean's career includes more than 12 years in database marketing analytics and strategic consulting with a particular focus on social media marketing analytics and strategy. His work on synthesizing traditional marketing measurement with digital and social media metrics has made him particularly acquainted with concepts like social CRM.Prior to joining Metrics Marketing, Dean was on the management team for a social media analytics firm, managing the client services group and providing thought leadership in terms of measuring and quantifying social media marketing analytics. Dean also worked for ten years for a leading marketing services firm in the database marketing analytics group, providing strategic recommendations based on predictive analytics.

Dean enjoys creating webcasts and occasional blogging about social media and marketing analytics.

3About Metrics Marketing GroupMeasurable Marketing Success Analytics-Driven Database Marketing & Interactive Services Firm

Focused on improving marketing ROI through customer insights and implementation of personalized, multi-channel communications

Founded in 1998Stable, consistent growthLocations in Cleveland, Chicago, San Francisco, Portland and Dallas

45the companys programmatic response to the customers control of the conversation Paul Greenberg (July, 2010)

a back-end process and system for managing customer relationshipsa component for developing a social or collaborative business Social Media Examiner (November, 2010)

A fully integrated solution, combining real-time Listening, Engagement and Measurement to effectively collaborate with your customers, prospects, influencers and employees in an ever-evolving socially connected world Don Springer, Collective Intellect (February, 2011)2010 Metrics Marketing Group | All Rights Reserved Social CRMDefinitions

5by connecting social media to the customer database and informing customer strategy through this information, customer intelligence professionals will find the benefits of social CRM Forrester (January, 2011)

6social CRM (sCRM) is simply the application of emerging social technologies and data to traditional customer relationship marketing (CRM) strategy which is both an extension and a cultural shift in the way companies interact 1:1 with their customers Dean Westervelt (today)

2010 Metrics Marketing Group | All Rights Reserved Social CRMDefinitions - MINE

672010 Metrics Marketing Group | All Rights Reserved Social CRMCRM Solution Ecosystem

CRM Solution Ecosystem: key technologies that support the business processes for targeting, acquiring, retaining, understanding, and very importantly collaborating socially with customers

Source: Forrester, Social CRM Goes Mainstream (January 2011)

7CI: Social MaturityComponents span these categories, as conceptualized by CI. Customer insight and basic analytics through CRM and targeting and workflow82010 Metrics Marketing Group | All Rights Reserved Social CRMSocial Maturity Curve

Source: Collective Intellect, Social Business Process Management, (February 2011)8CI: Social MaturityComponents span these categories, as conceptualized by CI. Customer insight and basic analytics through CRM and targeting and workflow92010 Metrics Marketing Group | All Rights Reserved Social CRMComponents9Strategy: what do you want to do? 102010 Metrics Marketing Group | All Rights Reserved Social CRMMyths and RealitiesStrategyCustomer ServiceProduct DevelopmentMarketing or CRMTechnologyPlatformSocial Media Monitoring (SMM)WorkflowDataDatabase EnhancementSourcesData Management Platforms (DMP)10112010 Metrics Marketing Group | All Rights Reserved Social CRM StrategyCustomer ServiceSocial as new channel; empower customers

sCRM strategy starts with an organization placing importance on social data about customers as a fundamental aspect of marketing mix

Current reality

Future state

Product DevelopmentCrowdsourcing

MarketingCollaborative, data-driven, capitalizing on traditional CRM approaches to customer insight

Organizing strategic methods such as Forresters Technographics and POST and Attensitys LARA help frame your social approach

11FORRESTER: all starts with a socially appended database

A social CRM plan should be tightlylinked to business goals, focused on customer benefits, clearly identify the processes andconstituencies that will be affected, and specify the associated information and capabilitiesrequired.10

SERVICE - Empower customers to go beyond 1:1 (impossible to scale up customer service to answer all inquiries)Dell IdeaStorm

LARA = Listen, Analyze, Relate, Act

Marketing in air quotes because no longer one-way communication, although sCRM attempts to capitalize on traditional CRM approaches to customer insight to right-time and right-message offers, just now exists across channels and need to add a fundamental understanding of socially-derived data (about customers and prospects and where they play online)122010 Metrics Marketing Group | All Rights Reserved Social CRM TechnologySocial Media Monitoring Unstructured text analysis = sCRM foundation

Technology supporting any sCRM approach needs to be scalable and flexible to adjust to light-speed changes in the social landscape

Current reality

Future state

PlatformsInternal enterprise, external MROCs

Workflow Organizing, collaborating, delegating, and taking action on socially-driven data

No end-to-end sCRM solution technology exists today for customer intelligence professionals* - automating flow from analysis to coordinated action remains a future state

*Source: Forrester, What Social CRM means to Customer Intelligence, (January 2011)12SMM vendor needs to be part of solution if leaning towards database

WORKFLOW Jive Engage is current darling, Lithium and Collective Intellect

right community technology platform and community facilitation vendor

132010 Metrics Marketing Group | All Rights Reserved Social CRM DatabaseSourcesWeb, communities, online events

By definition, CRM is based on data-driven analytics to distinguish between and among customers sCRM starts with a socially-appended database

Current reality

Future state

Database EnhancementSocial affinity, Twitter handles, LinkedIn

Database Management PlatformsUnified view antithesis of siloed information

Management platforms for data are crucial to the success of sCRM without enterprise organization of the insight foundation, presenting one view to the customer becomes impossible to execute on

13SOURCES: We had also talked about including a slide or two that mention online events. One possible connection could be talking about online events as a tool for companies to talk to and collaborate with customers. Presenters gain insight from their audience through votes, survey responses, questions and feedback. This information can be used to help the presenter know what type of content interests his or her audience and which audience members are the most engaged (asked the most questions or provided the most feedback). By providing information and sharing expertise, presenters can also prompt audience members to become their advocates by giving them the tools to share their content with their networks. Another possible connection to online events could be around syncing the data you gain through online events (number of views, duration, participation in votes and surveys) with data from social networks to create a lead score that triggers an alert to sales if it is high enough.

DB Ehancement: plagued by Facebook turning the spigot off and low match rates (email, etc) and self-reported profile data online

Online Events Can Help Configure & Discover Online events can provide additional customer data Companies can sync the data they gain through online events (number of views, duration, participation in votes and surveys) with data from social networks This creates a lead score that triggers an alert to sales (if customer scores high)

142010 Metrics Marketing Group | All Rights Reserved Social CRM DatabaseSources Facebook and Online Privacy

14Privacy issues remain Facebook is THE sCRM database at this point152010 Metrics Marketing Group | All Rights Reserved Social CRM DatabaseDatabase Enhancement

=Socially appended database15http://www.imediaconnection.com/content/28624.aspone-view for the customer360 degree view of the customer must include not only the relevant interactions between your company and the customer across the networks where they originated, but also internal data from your own CRM system. This data must be rich and actionable, and the system must also retain all these interactions as part of the customer record. This is a win for the customer because she gets a personalized experience and never has to tell her story to three different reps, and a win for the company which now becomes more efficient.

162010 Metrics Marketing Group | All Rights Reserved Social CRM DatabaseSocially appended CRM database Customer Identities & ContactsDemo/Psychographic DataCategorization/Segmentation DataBehavioral DataCustomer PreferencesCustomer ActivitySocial InfluenceSocial InputsThemesIntentionsInterestsSentimentTermsPassionTraditional InputsTransaction HistoryWeb AnalyticsCookieHistoryTargeted CommunicationCustomer PreferredSocial, TraditionalConsumerAnalyticsQualitative/Quant.Research - ScorecardsClient or CRM Data Analytics Partner

16http://www.imediaconnection.com/content/28624.aspone-view for the customer360 degree view of the customer must include not only the relevant interactions between your company and the customer across the networks where they originated, but also internal data from your own CRM system. This data must be rich and actionable, and the system must also retain all these interactions as part of the customer record. This is a win for the customer because she gets a personalized experience and never has to tell her story to three different reps, and a win for the company which now becomes more efficient.

172010 Metrics Marketing Group | All Rights Reserved Social CRM DatabaseDatabase Management Platforms

Source: iMedia Connection, The ABCs of the DMP (March, 2011)

Focus is on information relevant to marketing foundation for sCRMCombines disparate dataMore insights through [brand] information ownershipSupports multi-channel analysis and modelingDrive action Supports execution and one view perception by customerFirst buyers: direct response marketers (CRM)

17http://www.imediaconnection.com/content/28624.aspone-view for the customer360 degree view of the customer must include not only the relevant interactions between your company and the customer across the networks where they originated, but also internal data from your own CRM system. This data must be rich and actionable, and the system must also retain all these interactions as part of the customer record. This is a win for the customer because she gets a personalized experience and never has to tell her story to three different reps, and a win for the company which now becomes more efficient.

18during next two years, 30% of leading companies will extend goals of online community activities to include social CRMmet with significant hype despite limited number of field deploymentslack of broad scale adoption of the supporting technology makes business case more theoretical than provenonly 5% of organizations took advantage of social/collaborative customer action to improve customer service processescommunity peer-to-peer support projects will supplement or replace Tier 1 contact center support in more than 40 percent of top 1,000 companies with a contact center"

2010 Metrics Marketing Group | All Rights Reserved Social CRMFuture is Now: A March 2011 Gartner report statesSource: WebWire, Use of Social CRM for Customer Service will Grow Rapidly Over the Next Two Years, (Gartner, March, 2011)

18http://www.webwire.com/ViewPressRel.asp?aId=133173Most deployments of social CRM are taking place in corporate marketing departments as an exercise in brand management, such as maintaining a presence on Facebook or Twitter. 19Social CRMStartups versus Old GuardSocial CRM vendors have mostly come from one of two directions traditional CRM vendors who are adding Social CRM capabilities and social software startups who center upon customer engagement.

"I don't feel that either category has all the pieces in place yet. Traditional CRM vendors lack the customer community capability; social startups lack the enterprise-level integration capabilities to link the customer community back to enterprise systems. All the big CRM vendors are lagging behind. The social startups are closest to achieving true social CRM- Richard Hughes (director of product strategy and BroadVision)http://www.ecrmguide.com/article.php/11222_3924391_2

Jive Engagehttp://www.jivesoftware.com/products/platform

and Lithium http://www.lithium.com/what-we-offer/social-customer-suite/leading the way, according to Gartner for inbound and outbound collaboration (http://www.ecrmguide.com/article.php/3924391)

also SugarCRM pulling relationship data from LinkedIn feels Oracle CRM on Demand and Salesforce.com too rigid1920Social CRMCollective Intellect Social Business CollaborationDefineKPIsSet GoalsConfigure & DiscoverMeasurementActionSelectSourcesDefineTopicsTagCustomersInfluencersText Mining SystemCentral RepositoryBusinessIntelligenceDash-board 1Dash-board nWorkflowRespondScheduled Data Runs

TeamAnalysts

Bus. Mgmt.

Operations

1234Seed & InfluenceTargetCampaignBuildSocialPlatformsSocialCRM System

Jive Engagehttp://www.jivesoftware.com/products/platform

and Lithium http://www.lithium.com/what-we-offer/social-customer-suite/leading the way, according to Gartner for inbound and outbound collaboration (http://www.ecrmguide.com/article.php/3924391)

also SugarCRM pulling relationship data from LinkedIn feels Oracle CRM on Demand and Salesforce.com too rigid20212010 Metrics Marketing Group | All Rights Reserved Social CRMsCRM ChallengessCRM Data evolution, signal-to-noise, integration, privacy, match ratessCRM enterprise-wide adoption requires buy-in across the organization, traditionally difficultRapidly evolving social network technology and space Second Life from prominence to niche, e.g.Customer experience higher risk of fragmented customer experience

21enterprise-wide:http://mashable.com/2010/05/21/social-crm/

At the end of the day, you must ask yourself if the steps above help you enrich the two-way relationship between the social customer and your social business. - MashableSocial CRMSocialeverythinghttp://www.viralblog.com/social-media/the-evolution-of-social-crm/ - Imagehttp://mashable.com/2010/05/21/social-crm/ 22232010 Metrics Marketing Group | All Rights Reserved Metrics can helpsCRM

Metrics can combine traditional database and CRM experience with digital expertise tohelp build a socially-appended CRM database or analytic workbench for reporting and analysisto understand how far down the 1:1 sCRM path you can go with new data sourcesaugment, or create, traditional or digital (email) segmentation with augmented social datahelp quantify the success of your program by measuring the success at building relationships of value

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24Contact InformationDean WesterveltVP, Strategy and Analytics978.807.0435

[email protected]: @dean_westervelt2010 Metrics Marketing Group | All Rights Reserved 243/16/201125 Strategic AuditCustomized Policies and Procedures GuideCampaign Development and ExecutionMonitoring and custom reporting Blog RelationsSocial Media Asset CreationSocial Media Influencers outreachOngoing Maintenance & ConsultingI've had the pleasure to work with Metrics Marketing Group as one of our key partners. They have strong social media monitoring capabilities and expertise that gives us an in-depth look into the conversations surrounding our brand and messaging for one of our strategic product sets. The monitoring reports enabled us to listen, measure and engage with our viewers online. Ultimately, Metrics Marketing Group provided us with actionable data and real results." - James Miller, VP-Technology Industry, BrightTALK, Inc.

Social CRMMetrics Offerings general SMM and Audit

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Social CRMMetrics Offerings Social Media Integration26