Here are five steps for companies to define and execute the right channel strategy to meet the demands of the social customer.

1. • Cognizant 20-20 Insights
Five Steps for Succeeding with Social Media
in a Multichannel World and Delivering an
Enhanced Customer Experience
Executive Summary heart of the company, where customers become
the focal point and the key driver of business
The emergence of social media as a mainstream
operations.
phenomenon is placing a great deal of stress
on existing marketing channels. Customers The social component in the CRM model facili-
tolerate traditional media channels, but they tates communication and collaboration between
are also looking for ways to truly engage with brands and customers to solve business problems,
brands through digital means. Presented with shape better experiences, build customer rela-
these digital media options, customers are no tionships and garner brand advocacy. Through
longer at the mercy of companies’ communication social network integration with traditional CRM
choices and procedures. Other than being choosy systems, companies can better monitor, facilitate
and demanding, customers often and leverage relationships with their customers.
Social CRM places have very little attention span in The integration of social in a traditional CRM
the digital world. system allows companies to gather additional
the customer at customer data and insights to proactively manage
the heart of the Social media is not simply a
and implement action plans.
fad. Customers have grown
company, where to rely on multiple sources of While it is now common knowledge that busi-
customers become digital information and expect nesses want to “engage” and “communicate”
the focal point and a seamless, easy and proactive with their customers through social channels,
communication experience with why are so many of their social efforts misaligned
the key driver of companies every day. Therefore, with corporate objectives? Some companies
business operations. it is not enough to engage make the mistake of jumping on the social media
with customers on a one-to-one bandwagon without first establishing a business
basis. Customers desire multiple sales and support objective. Because they lack a strategic plan, they
outlets, and they want to review product and don’t allocate resources to adapt to the tools and
company information through third-party venues, engagement methodologies that their customers
such as social media sites and online forums, are utilizing. Before implementing a social CRM
rather than through brand-controlled channels, strategic roadmap, there are two things to keep
which makes managing and tracking messages a in mind: determining what your company’s social
challenge. Social CRM places the customer at the intent is and crafting a channel strategy.
cognizant 20-20 insights | march 2011

2. The Importance of a Channel Strategy Social CRM is a business-wide strategy for
managing real-time enterprise communications
So where should companies start? With new
with customers, partners, prospects and vendors
applications, tools and social networks continu-
to gather and optimize business processes that
ally appearing in the digital landscape, a swirl of
span various functions to increase customer sat-
noise and chaos threatens to distract companies
isfaction. We will start by identifying the two sets
from planning and implementing their strategies.
of channels and their differences.
Companies will need to mine intelligence from the
data chaos and create actionable insights in order Channel Types
to keep abreast of the competition.
• Individual Channel: Traditional CRM is opera-
tionally and internally focused with a client-
While many businesses are starting to invest in
centric approach. This channel focuses on
monitoring tools, many fail to derive any real
a one-to-one relationship with customers,
value from the data or gain insightful intelligence
while providing the company with an overall
from their investment. Companies need to have
viewpoint of the customer’s interaction with
a strategic process in place before executing
service tickets, e-mail communication and
social efforts that are aligned with their goals and
telephone tech support. For example, escalated
objectives.
customer concerns are routed to the appropri-
Customers are increasingly participating in commu- ate department and key contact to assist the
nities, forums, blogs, various social networks and customer with her query. Metrics and measure-
digital mediums. By having a social CRM strategy, ments used to gather customer data in this
companies can learn how to obtain direct feedback channel consist of click-through rates, number
from customers and transform this unstructured of service calls, direct mail, responses, leads,
data into actionable insights. Social CRM can sales revenue and e-mail. Data is relatively
zero-in on customer conversations online through easy to track and depends only on information
listening tools to pinpoint what customers are that the customer provides.
really saying in the digital space and to apply this
knowledge from a business standpoint. Companies
• Community Channel: Voyeuristic in nature,
this channel allows companies to listen and
can also communicate with their customers in real dive into meaningful and insightful conversa-
time to solve immediate issues. tions in the social ecosystem through different
channels such as forums, blogs, social
Here are the many benefits that companies can
networks, instant chat, etc. This channel can
obtain by implementing a channel strategy that
be tricky for companies attempting to (effec-
comprises corporate strategies coupled with
tively) maneuver through millions of conver-
social technology platforms:
sations and social data. Unlike its traditional
CRM counterpart, the community channel
• Marketing: Companies can reach their targets
more consistently, develop better products and is built on a customer-centric model, where
create better customer experiences. Because customers need to be able to find companies
of this, companies can increase return on in any channel they choose.
investment, reduce traditional marketing costs Types of customer information that can be
and improve marketing effectiveness. derived from this model include ratio of
positive vs. negative sentiments, keyword
• Customer Service/Sales: By having a com-
mention trends, number of views, number of
munication process in place, a company’s
rapid response to social media events can lead brand mentions, etc. Due to its viral nature,
to effective crisis management, proactive lead companies will need to ensure that they
generation and higher customer satisfaction. conceptualize and execute various types of
strategies to adapt to the social customer.
• Research & Development: Companies can
Communities present an easy way for
co-create/innovate with their customers
customers to connect with other members
through direct feedback and collaboration to
who share similar interests and viewpoints. The
ensure that better products are being made.
community channel has no ties to a specific
• Customer Loyalty: By effectively engaging company/brand. Social consumers utilize these
with customers through various channels, channels and participate in conversations with
companies can foster long-term relations with other consumers in a natural and unrestricted
their customers and increase customer loyalty. way. The channels are not controlled or owned
cognizant 20-20 insights 2

3. by the company. Negative comments about • Example #1: If your company’s social intent is
companies are widely accepted and, at times, to effectively manage brand reputation, you can
nurtured. derive insights and participate in social channels
that consist of: Forums and review sites, blogs,
For companies to really understand their
listening and monitoring, text mining, Facebook,
customers’ social behavior, they will need to
LinkedIn and Twitter for real-time
embark on a data integration and scalability
conversations and comments For companies to
exercise to build a comprehensive view of multi-
channel social behavior. It is simply not enough
about your brand. really understand
to rely on individual traditional channels or • Example #2: If your company is their customers’
social channels as a silo to understand customer looking to increase R&D involve-
dynamics but rather an integration of the two. ment with customers (and reap
social behavior, they
Customers are still engaging with traditional CRM the benefits of decreasing R&D will need to embark
channels such as e-mail, mobile media, Web sites, costs), you want to form online on a data integration
phone/call centers and search engines, as well communities that foster col-
as participating in social communities, forums, laboration and direct feedback
and scalability
blogs, social networks and chat sessions. management. Participation on exercise to build a
social networking sites such comprehensive view
What companies need to understand is that
as Facebook can foster co-
capturing an overview of relevant customer data
creation, identify focus groups
of multichannel
and deliver feedback through social behavior.
can deliver very positive outcomes. However,
customers are more likely to pledge their loyalty
interactive contests, surveys,
to companies when they effectively engage
location check-ins and reward points. Participa-
with them in the customer’s preferred channel.
tion on Twitter serves both as a broadcasting
Business use cases and strategies executed
tool, as well as a channel for real-time customer
through traditional and community channels
engagement and sentiment analysis.
will need to be integrated and fully supported
by this universal goal. It is important, therefore, Another part of this step is to Create an audit/
for all companies to understand the differenc- define and develop specific
es between the two channels and be ready to social CRM use cases and discovery of your
implement separate strategies (that share the channel strategies for these company’s current
same corporate objectives) to ensure across-the- organizational functions: internal social
board customer satisfaction. • Internal audience: Employees, strategies, identify
partners, contractors, vendors.
We advocate the following five steps to help the existing social-
our clients define and execute the right channel • External audience: Customers,
readiness and
strategy to meet the demands of the social partners and across markets.
customer. examine the steps
• Business functions: R&D, mar-
1. Identify Social Intent. keting, public relations, custom- that your company
The first step for any company to take prior to er service, sales and others. can take to improve.
a strategic implementation is to define and
3. Conduct an Audit and Discover Current
understand their social intent, which comprises
Corporate Strategies, Levels and Resources.
goals, objectives and mission statements.
Examples of social intent include: increasing Create an audit/discovery of your company’s
traffic, instituting a crisis reputation management current internal social strategies, identify the
strategy, increasing lead generation or improving existing social-readiness and examine the steps
brand awareness. The social intent will define the that your company can take to improve. By
planning, roadmap, framework and strategy that creating a roadmap and strategic process, your
span channels and internal/external business company can transition from its current state to a
functions. desired social state.
2. Define Channel Objectives and Choose the Your audit should include:
Right Channel.
• An assessment of your customer-based capa-
The second step involves identifying your compa- bilities, a refinement of company objectives
ny’s social use cases to define channel objectives and an understanding of how these efforts
that are based around your social intent. Here are are currently being integrated into your daily
two examples of this: operations across business functions.
cognizant 20-20 insights 3

4. • Identification of corporate policies, governance • Establish a clear vision of what your company
or regulations that create an opportunity or a is trying to achieve. This means having compa-
roadblock. ny-wide social practices, processes, resources
(staff, technology, budget, etc.) in place.
• Assessment of your digital company culture,
including staff, employees and resource allo- • Create a mechanism to prioritize corporate
cation. assets and resources required to meet your
objectives. Make sure you build clear action
• Integration of corporate operational and
plans and target social channel utilization to
technological CRM tools with existing social
channels for seamless deployment and data achieve maximum results.
intelligence extracting. • Create an actionable roadmap where you
It is important that your company conduct an develop key marketing insights, define projects,
enterprise-wide assessment to help understand identify channel choices and decide on social
corporate readiness relative to social ownership, use cases in terms of their priority.
governance of social CRM and resource allocation
Next, build a social CRM roadmap, but only after
prior to executing your multichannel strategy.
you have your corporate goals and objectives
4. Create a Social CRM Prioritization Model defined.
and Build a Social CRM Roadmap. • Understand the health of your company’s
At the fourth stage, your company will need to current social CRM performance. Is your
identify areas within the organization that are company effectively capturing and tracking
most appropriate for leveraging social CRM in valuable customer information?
order to maximize efficiency
• Establish a clear multichannel mission. What
Creating a social and effectiveness and optimize additional information would need to be
performance across business
CRM prioritization functions. Creating a social leveraged from your customers to ensure
better customer service and data derivation?
model can help CRM prioritization model can
identify your help identify your organiza- • Understand and compare the state of your
tion’s strengths and weaknesses current company’s social CRM initiatives with
organization’s to understand the process and that of your desired state. This will determine
strengths and time it will take to align your how close you are to establishing that goal.
weaknesses to departmental efforts with your • What resources and channels will you utilize?
social goals and implementa- Identify your mission and create a defining
understand the tion. Companies are encouraged
project plan that links a specific social
process and time to ask questions such as: channel to strategic execution. An example is
it will take to align developing a customer community to reduce
• What steps do we take to
the cost and volume of service calls.
your departmental align our strategy with our
efforts with your social intent? • Develop your social CRM business case to
understand how financial assets will be
social goals and • Are we close to meeting
disbursed and how benefits will be measured.
our customers’ demands and
implementation. expectations?
This way, your company can zero-in on
important projects that will help your business
• Can we identify the gap that exists between become more social, without any added cost.
our current social circumstances vs. our
desired outcome? • Identify where and what your customers are
doing online. How are they communicating
Here are a few things to keep in mind prior to online? Why are they communicating in this
building your social CRM roadmap: manner?
• Develop an all-embracing analysis of your • Establish baselines, benchmarks and project
company’s internal-external involvement; timelines for both short- and long-term goals
identify road blocks, threats and opportuni- and choose the right channels to deploy the
ties. Categorize these based on their levels of strategy based on your targeted customer
strengths and weaknesses. demographics.
cognizant 20-20 insights 4

5. • Develop both social policies and best practices, Moving Forward: Keeping Pace with
including crisis management, brand reputation Customers’ Social Expectations
management and marketing communication.
With new customer behaviors and heightened
• Create “customer-centric” social governance expectations for engagement in the digital world,
within your internal organization to ensure all companies will need to keep up with consumer
key stakeholders and executives are equally attitudinal shifts to stay ahead of the competitive
informed on social efforts. curve. Social customers expect companies to adapt
to changes quickly. They expect brands/compa-
5. Conduct Proofs-of-Concept and Experiments. nies to be present in whatever social channel they
are participating and demand
that companies listen to their Customers know
How can your organization authenticate the true
value of social CRM? Proof-of-concept tests and
experiments that cover some of the points below questions, feedback, ideas, com- how critical they
can be great starting points: plaints and reviews (and respond are to every brand’s
quickly, of course).
• Define the metrics, measurements and
success, and they
key performance indicators you will use to Customers know how critical they use this as leverage
are to every brand’s success, and
determine the types of customer data to track.
they use this as leverage to direct
to direct and
For example: Is your business tracking the
frequency of complaints filed by customers for and shape marketing messages. shape marketing
a given number of days? Are you tracking user Social CRM allows businesses messages.
satisfaction and time spent on a given section to have a 360-degree view of
of your community? To do this, your company their customers by merging social networking
requires separate sets of measurements tools with existing CRM platforms to manage
and metrics to derive meaningful business interactions and feedback from one centralized
intelligence. location. This allows businesses to effectively
manage (and foster) new customer relationships
• Identify the tools and resources that are best as well as retain existing customers. Through
suited to support your multichannel efforts. active monitoring, listening and engagement with
customers in multiple social channels, companies
• Identify and define the purpose of data
can receive valuable insight into what customers
collection. Your company will need to create a
are saying about products and services in real
process to measure structured vs. unstructured
time without the use of polls or surveys. Social
data (review, sentiments, feedback, etc.).
activities can be tracked, and key data points can
• Establish baselines and benchmarks to be entered and merged into a company’s existing
measure incremental successes. It is highly CRM system.
advisable that efforts are effectively measured
to ensure alignment with the social intent. Businesses can obtain a competitive advantage
and be early adopters of social CRM through a
• Utilize the feedback you receive from the steps general understanding of the steps above. To
above to correct underperforming systems maximize revenue and build long-term relations
and gather information to execute actionable with your customer (while increasing their lifetime
insights based on it. value), you will need to get ready to embrace and
map the digital chaos and be an agile enterprise
• Rinse and repeat.
in this socially-enabled world.
About the Authors
Dileep Srinivasan is an Assistant Vice President for CRM and social CRM in Cognizant’s Customer Solutions
Practice. He specializes in helping organizations across industries apply traditional and emerging social
CRM tools to generate long-term business value. He can be reached at Dileep.Srinivasan@cognizant.com.
Marguerite Anne is a Principal Consultant in Cognizant’s Customer Solutions Practice. She is currently
working on a variety of social media marketing, social CRM, online marketing strategy and content
management consulting engagements. Marguerite can be reached at marguerite.jusuf@cognizant.com.
cognizant 20-20 insights 5

6. About Cognizant
Cognizant (Nasdaq: CTSH) is a leading provider of information technology, consulting, and business process outsourc-
ing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck,
New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and
business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 deliv-
ery centers worldwide and approximately 104,000 employees as of December 31, 2010, Cognizant is a member of the
NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 1000 and is ranked among the top performing
and fastest growing companies in the world.
Visit us online at www.cognizant.com for more information.
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