1. D S i g n 4 C h a n g e
D i g i t a l T r a n s f o r m a t i o n
Social Business - SCRM
2. Product Value
What do customers really value ?
3. The objective of Customer
Relationship Management is to
enable companies to build deeper,
more profitable, long term
relationships by reaching
customers with the right message
at the right time by providing
superior customer service
Customer Relationship Management
4. Business Model Stories
Segment the market Identify the conflict
Identify customer needs Portray the needed skills
Design the processes Paint the vision
Measure the results Provide the happy end
6. Stan Maklan and his co-authors offer us a view of the past and
potential future of customer relationship management in their
Sloan Management Review article, Why CRM Fails — and How to
• How do the authors’ describe the problem of Customer
Relationship Management, and how do they present the solution?
• Why to they suggest that managers need to to invest in both
resources and capabilities ?
• Describe the framework presented to develop their CRM resources
and capabilities as well as how it applies to BMV and Flutter
• Which key insights emerge from the authors’ work?
• new conditions. What other examples confirm this contention?
Why CRM Fails
7. Traditional Marketing CRM
Goal: Expand customer
base, increase market
share by mass marketing
Goal: Establish a profitable,
relationship with customers;
understanding their needs,
Product oriented view Customer oriented view
Mass marketing / mass
Mass customization, one-to-
Transactional relationship Relational approach
8. • For CRM to be truly
effective, an organization
must first decide what kind
of customer information it is
looking for and must decide
what they intend on doing
• 75% of CRM projects fail
within their first year
• It can result in lost of
productivity and waste
corporate investment in
software and time
9. • Is the process of building and
maintaining profitable customer
relationships by delivering superior
customer value and satisfaction
• Think of multi-channel service
delivery, the ways in which customers
can interact with a business
• Three components:
Sales force automation
Customer service and support
Marketing campaign management
10. Why Study CRM?
• “Today’s businesses compete with
multi-product offerings that are often
assembled or simply outsourced.
• The product/service offer is created
and delivered by networks, alliances
and partnerships of many kinds.
• Sustainable competitive advantage
depends upon nuturing long-term
relationships with internal and
11. "Experience is knowledge,
everything else is information"
-- Albert Einstein
• Service economy – value comes from
services embedded in the product
• Pine and Gilmore argued that
differentiation today comes from creating
• Starbucks, Michelin, Hermès, Apple
• Companies provide “stages”, managers
are “actors”, customers are active
12. • Alvin Toffler in Future Shock (1971) talked
about the “experiential economy”
• Four phases – agrarian, industrial, service
an now experience
• Examples of Walt Disney, AOL, Starbucks,
• Tranformational “Memory” itself
becomes the product — the "experience".
Pine and Gilmore
13. Where does value come from - mass production, personalization, activities,
Pine and Gilmore
14. • “Social CRM is a business strategy
designed to engage the customer in a
collaborative conversation in order to
provide mutually beneficial value in a
trusted & transparent business
• It's the company's response to the
customer's ownership of the
Thousands of « friends »
partners in the co-creation of value?
15. • How would you define "social business"?
• Which functions of the company are impacted
by social business?
• The article argues that technology does not
change the value of social interactions. With
what "currency" do we measure social input?
• Which four categories of technology are
associated with social business? Give an
example of each.
• How would a "social chief financial officer"
contribute to our understanding of finance?C’est quoi le social CRM ?
The Business of Social Business
The Business of
16. • The three most important factors that
influence consumer behavior are :
• personal experience (98%)
• company’s reputation or brand (92%)
• recommendations from friends and family
• 41% of customers believe that companies
should use social media tools to solicit
feedback (Cone Business in Social Media
• 43% of consumers say that companies
should use social networks to address
• Only 7% of organizations understand the
CRM value of social media, according to
the Brand Science Institute, European
Perspective, August 2010
17. • Social CRM is a business strategy
rather than technology, tools or
• Social CRM is all about engagement –
drawing customers into the
• Social CRM enhances rather than
replaces “traditional” CRM
• It’s by defintion customer centric - the
ultimate goal of Social CRM is building
trust and the brand
Harish Kotadia, Ph.D..
18. The Happy End
Challenges Skills Roadmap
• A story begins with
problems are we trying
•Transform a conflict
• Why does this situation
•What knowledge and
skills are missing?
• Who are the heros of
• How does changing
the roles move this story
•Is it a question of
people, process or
•What is the next step?
19. • Disti Engagement
• Disti PAM
• SMB Engagement
Sources ? Results ? Metrics ?
Where does this story start?
• Where does value
•Do your sponsors
believe in people ,
process or technology?
•This is your value lever
• Where are they
looking for proof of
•With individuals, with
teams or with
•This is where you need
• How do they qualify
•This is your happy end
The Business Value
20. • Customers are not listening to
what you have to say
• Customers know more about your
business than you do
• Customers create their own
• Customer interactions are complex
• Customer communities are where
the knowledge is.
21. • Planning – “Listen to Learn”
• Presence – “Stake Our Claim”
• Engagement – “Dialog Deepens
• Formalized – “Organize for Scale”
• Strategic – “Becoming a Social
• Converged – “Business is Social”
“The Evolution of Social Business: Six Stages of
Social Media Transformation.”
Social Business Transformation
22. • KLM has sought to differentiate itself
by offering a superior customer
• Strategy of “Circle of Contacts” to
make its customer relationships as
intimate as possible
• Facebook + Twitter = KLM Surprises
• Staff of 16, 230 000+ fans, wide press
23. • Finnish maker of fine cutting tools
• Customer communities of crafting
enthusiasts have transformed the way
this 300-year-old company does
• Brings customers into the product
• Fiskars also leverages these groups of
advocates to market to small retailers
• Virtual + Real events – 6000 members
24. • The Guardian- founded in Manchester over
150 years ago
• Threat of the Internet – consistently lost
money over the last decade
• The Internet itself serves as a metaphor in
helping consumers make better decisions
• “The real measure of our success is what the
industry can create. Not what we can cut.”
Open Platform Case Study
25. • Moving from design to the store front
in less than three weeks
• Benneton, H&M, Topshop, Wet Seal,
• Collaborative design, social CRM,
electronic store fronts
• Fast fashion retailer Wet Seal used
their technology platform to help
their customers create 50 000
garment designs over the past two
26. • Why are users are failing to complete proposed
• Monitor conversion rate using unique visitors and
• Landing pages provide the biggest challenge to
• Reduce number of steps to facilitate engagement.
• Reduce the number of fields that require user input.
• Check for leaks: visitors might not be dropping
completely but using other routes.
Cian O' Sullivan
27. • What aspects of your app are influencing the
mindset of your users?
• Monitor the « stickiness » of your message
through number of visits, time spent per
visit, citations and redirects.
• What customer challenges/opportunities are you
• What skills and knowledge are you targeting?
• How does your application fit into the story that
your customers are trying to tell?
28. • Why your user base does what it does?
• Tracking time and location to map out the
spaces where "what's going on" happens.
• Context is a means of measuring the extent
to which a vision (product, service, idea) can
• Social spaces are constructed from a vision,
“actors”, repeatable events, and outcomes.
29. • How does your data elucidate user
• Social graphs are the global mapping of
your customer base and how they're
• Capture and monitor identity, quality and
structure of relationships with others
• Emergent behaviors – what new business
opportunities might be explored?