This document discusses the characteristics of social media and its impact on customer relationships. Social media is digital, has no production or distribution costs, allows for user participation and co-creation. It enables both explicit and implicit networks and user generated content that is visible, real-time, and persists indefinitely. For enterprises, social media adoption starts by addressing tasks and problems, and moves to social learning and innovation. The social customer is engaged through acquisition, retention, enhancement, complaints, word-of-mouth referrals, and co-creation. Social CRM aims to understand customers, engage customers through social networks and media, improve the customer experience, and measure customer engagement and outcomes.