To understand success with Social CRM, we should look at the broader context of CRM itself. This presentation was given at the CRM Evolution 2010 conference in New York, on August 2, 2010.
2. What is Social CRM?
“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 is the company's programmatic response to
the customer's control of the conversation.”
̶ Paul Greenberg
4. Key Differences Exist…
Traditional CRM Social CRM
Operational Relationship-based
Controlling the customer Customer is in control
Hierarchical Collaborative
5. Plus ça change, plus c'est la même chose
The more things change, the more they stay the same
History repeats itself
Social CRM builds on traditional, operational CRM
Failure persists and lessons must be learned
Examining the past helps explain and predict the future
Social CRM
CRM
7. Traditional CRM failure rates
Gartner 2001: 50%
Butler Group 2002: 70%
Selling Power, CSO Forum 2002: 69.3%
AMR Research 2005: 18%
AMR Research 2006: 31%
AMR Research 2007: 29%
Forrester Research 2009: 47%
.
23. Failure: Poor engagement with customers
Transition from operational to engaged metrics
Need to change measurement, incorporate Social KPI
Goals, objectives are still CRM‐driven, but accommodate Social x
Social projects require engaged conversation
Lack of engagement drives other problems
Difficult to measure “Return on Engagement”
Disengaged companies do not create trust
Trust creates long‐term loyalty, return business
Trust does not facilitate success; traditional failure points remain
Social business means evolution
Openness, transparency, trust, conversations
Not mandatory, but desirable
25. Examples of Social CRM success
MySpace
Faced with failing customer service, rebuilt based on communities
Recognized that listening to customers is mission critical
Nike
Nike+ built a community for sharing data and info, create buzz
Flexible on goals and plans essential
Starbucks
Several ongoing projects aimed to spread brand, build loyalty
Coordination among stakeholders critical to success
Levi’s
Using multiple channels to leverage “ambassadors” (advocates)
Bridging gap between social culture and social technology was key
27. Key Lessons
Engage, internally and externally
Gather feedback and opinions
Listen, learn, grow
Keep goals in mind
Kumbaya feels good but doesn’t further business
People don’t want relationships, they want engaged commitment
Social is about people
Not about technology
Not about processes
Not about measurement (but business‐oriented metrics are important)
Don’t Replace CRM, Extend it with Social
Stand‐alone, siloed Social CRM means failure before starting
Add social objectives, goals, needs, and wants to CRM