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Social CRM By Fabio Cipriani
- 1. !
?
Social CRM
A call for reviewing current CRM Strategy, Processes and Mindset
throughout companies
Fabio Cipriani
November-2008
- 2. It all started with the web 2.0 revolution and its 4C‟s
According to Wikipedia (Nov/2008) - Web 2.0 is a term describing changing trends
in the use of World Wide Web technology and web design that aims to enhance
creativity, secure information sharing, collaboration and functionality of the web.
Web 2.0 is enabling:
• Collaboration
• Community creation
• Conversation
• Creativity
Image source:
http://web2.socialcomputingmagazine.com/all_we_got_was_web_10_when_tim_bernerslee_actually_gave_us_w.htm
© 2008, Fabio Cipriani. Some rights reserved
- 3. Being connected, customers realized that they could ask more from
companies and share opinions about products and services
Uses new
online
channels and
new
Web 2.0 stimulated communication
tools
fundamental changes in Trusts in
Seeks support
advices made
to connect
consumer behavior by online
with like-
acquaintances
minded peers
and strangers
Interactions between
customer and brands starting
earlier and never ending
The new
Social
Reads and
New behavior patterns creates
Customer
product Tends to buy
demand a new strategy, reviews, more online
better segmentation, new than offline
product
rankings and
channels and targeted blog posts
messages and review of
current customer facing
Wants to
business processes provide
Expects better feedback
customer about the
experience product and
customer
service
© 2008, Fabio Cipriani. Some rights reserved
- 4. New customer relationship means more than just mere on demand
attention or mass customized products and services
Web 2.0 provoked an
expansion of the R in the
CRM acronym
Company / Customer
Company / Partner
Company / Competitor
Company / Company
Customer / Partner
Customer / Competitor
Customer / Customer
Partner / Competitor
© 2008, Fabio Cipriani. Some rights reserved
- 5. Evolution of the CRM landscape
CRM 1.0 CRM 2.0
Customer Customer
Customer
Customer
Customer Customer
Customer Customer
Customer
Customer
Competitor Supplier / Partner
Competitor Supplier / Partner
Customer Customer
Customer Customer
Your company
Your company
Customer Customer
Customer Customer Customer Customer
• Focus on individual relationship (company to customer, • Focus on collaborative relationship (engaging a more
company to partner, etc.) complex relationship network)
• Limited view of the customer and his community • Multiple connections allow better understanding of the
preferences, habits, etc. customer and his community
• Targeted messages generate value • Conversation generates value
© 2008, Fabio Cipriani. Some rights reserved
- 6. Evolution of Customer Touch Points
CRM 1.0 CRM 2.0
• Microblogs
• Blogs
• Price comparison website
• Podcast
• RSS
• Phone
• Phone • Wikis
• Fax
• Fax • Social Networks
• Email
• Email
• Service
• Service • Widgets
• Letters
+
• Video sharing
• Letters
• Personal contact
• Personal contact
• Photo sharing
• Company‟s website
• Company‟s website
• SMS
• SMS
• Forums • Auction website
• Instant Messenger
• Instant Messenger
• Chat
• Chat • Slides sharing
• Media
• Media
• Reviews and ratings in retail sites
• Wish lists
• Social Bookmarking
• Single view of the customer based on the interactions • Single view of the customer is far more complex to
history, customer profile data residing in the company‟s achieve. Besides internal information, the company must
base and data integration with internal systems rely on external information such as customer profiles in
social networks and his behavior when participating in a
• Company owns the data but it is limited to previous community.
interactions
• Customer and other web 2.0 sites own part of the precious
data
© 2008, Fabio Cipriani. Some rights reserved
- 7. Evolution of Business Processes Modeling
CRM 1.0 CRM 2.0
Establishing
Targeting
need
impressions
Expansion
Acquisition
Decision
Sharing
Targeting
Expansion
Acquisition
Retention Experience
Retention
Support processes
Customer
Marketing Sales Value
Service
Operation processes
• Company processes developed from the customer
• Customer processes developed from the company standpoint (company life cycle for the customer)
standpoint (customer life cycle for the company)
• Conversation centric – include the conversation factor to
• Process centric – adapt and optimize processes to support establish brand community, enable idea capturing and
better customer interaction better segmentation
• Focused on CRM processes • Focused on the evolution of CRM processes and resulting
impacts in the value chain
© 2008, Fabio Cipriani. Some rights reserved
- 8. Evolution of Technology
CRM 1.0 CRM 2.0
Monitoring /
Interconnecting tools
Conversation tools Data
Customer mining
Owned
Forums
Data RSS
Process Support Process Support
Account Management Account Management
Contact Management Contact Management
Activity Management Activity Management Widgets
Blogs
Lead / Opp Management Lead / Opp Management
Campaign Management Campaign Management
Sales Management Sales Management
APIs
Service Management… Service Management… Open Id
Podcast
Wikis
Social Networks Cloud
Computing
Brand monitoring
services
• CRM Solutions focused in community creation internal and
• CRM Solutions focused in automating and supporting
externally
internal business processes
© 2008, Fabio Cipriani. Some rights reserved
- 9. Evolution of Organizational Mindset
CRM 1.0 CRM 2.0
!
!
!
!
Interaction
Conversation
Contribution
Transaction
Feedback
Employee Customer Employees Customers
• Innovation is gathered from all employees as they are
• Innovation comes from one specialized source within the
closely connected to the final customer and to each other
company (innovation group)
via internal web 2.0 tools. Customers are in the center of
• Frontline employees communicate targeted messages for the innovation cycle.
transactional operations
• Frontline and non frontline employees engage
conversations including new customers in the context and
rerouting conversations. New set of employee skills
needed.
© 2008, Fabio Cipriani. Some rights reserved
- 10. Bottom line
• Social CRM does not replace traditional CRM. It extends current CRM
1.0 capabilities to engage conversations with customers and the market,
• Social CRM humanize the company so the customer can see it as a
trusted peer (customers trust people like themselves),
• Social CRM puts the customer in the core of the company‟s strategy. It
affects thoroughly operations, its value chain and organizational structure
and culture,
• Social CRM introduces new value drivers into
the company‟s strategy thanks to customers
engaged with the brand,
• Social CRM needs a new organizational
mindset supported by web 2.0 empowered
employees. By connecting employees to
themselves and to customers, the Social CRM
should enable closed-loop employee
recognition based on individual results.
© 2008, Fabio Cipriani. Some rights reserved
- 11. Putting Social CRM to work: Understand Social Influence in CRM
Building Blocks and transform it...
Social
Influence
Strategy
Operations
Organization
The Social Influence changes the traditional CRM building blocks and
requires companies to work towards a Social CRM concept composed
by Social Strategy, Social Operations and Social Organization
© 2008, Fabio Cipriani. Some rights reserved
- 12. To support this transformation, go deeper in the „Company life cycle‟
from the customer point of view…
Social web improves our sense of control and makes us
Consumption needs more sensible to ads and willing to participate. This is an
open door to understand and establish customer needs
Establishing need
By sharing experiences, people connect and influence
Need by influence each other. Online reviews can be more important than a
recommendation from a friend. Call for improved analytics
Customer is now empowered with powerful search tools
Searching capable of bring back text, pictures, music, video and any
Company Life Cycle
other digital content. Long tail economics happen here
Search results can be frightening. Organization of
Selecting
Decision information is now owned by the user via tags, categories
and links. This is new taxonomy is called „folksonomy‟
Prospect customers can find plenty of opinions in multiple
Deciding places or even ask online about your product to compare
and finally decide. Connection is seamless and easy
Customer Besides traditional price comparison via specialized
behavior Buying websites, the prospect customer can now form groups to
bargain prices thanks to some specific web 2.0 sites
Paypal enabled new ways for paying for products and
Paying receiving from customers, but new social networks allows
you to lend / borrow money from / to multiple users
Experience
Better Supply Chain overview by connecting companies
Receiving and external parties. CPFR improvement(Collaborative
Planning, Forecasting, and Replenishment)
Customer support is now offered via web 2.0 channels as
Using well. Some virtual communities allow users to support
each other using a product or service. Lowering CS costs
Based on previous experiences and other customer
Comparing descriptions in social networks, blogs, and so on, the
customer draws a conclusion about how satisfied he is
Sharing impressions
Customers share their experience in virtual communities
Sharing and other reviewing tools. It can consist of improvement
suggestions, faults description or mere opinions
© 2008, Fabio Cipriani. Some rights reserved
- 13. ...and apply findings into your current CRM foundations following a
consistent roadmap.
Social
Strategy
Social Operations
Social Organization
Implementation Redesign Design and Monitor and
Strategy Building Blocks Develop tools Adapt
• Understand your public and • Review current CRM building • Design and develop tools • Measure results and adapt
current customer behavior blocks (as is) which will support the current Social CRM to meet
company in engaging with changes in customer needs
• Decide how you will • Realign Social CRM Strategy
Social Customers and/or market dynamics
engage with the market with current CRM Strategy
• Train employees and close
(monitor buzz, react to (touch points, segmentation,
comments, supply social customer value, etc.) the recognition and reward
platform, etc.) loop
• Review Processes to
• Find out which tools will be operate Social CRM
deployed
• Establish Social CRM
• Build a business case mindset throughout the
company
© 2008, Fabio Cipriani. Some rights reserved
- 14. Some foreseen benefits of Social CRM
Raise Marketing ROI thanks to better targeting, better product solution, customer
experience and word-of-mouth.
Gain insights to explore new market segments and improve marketing effectiveness
Identify new business opportunities and improve cross/up-sell abilities through
increasing contact with existing and potential customers
Cut sales commissions costs by building community around the brand
Increase R&D capabilities and innovation through tapping into the collective
intelligence of your target audience
Increase customer loyalty by promoting transparent dialogue and improving
employee/customer interaction efficiency
Decrease customer service costs through self-helping communities
© 2008, Fabio Cipriani. Some rights reserved
- 15. It‟s over... Go do something about it!
Fabio Cipriani
• Author: “Corporate Blogging”
– First book about web 2.0 in Brazil – 2nd edition
released in 2008.
• Academic Background
– Electronics Engineer
– Master of Science in Wireless Systems
– Post-Laurea in Economy and Management of
Small/Medium Businesses
• Project experiences
– Customer & Market Strategy and CRM
implementations in all Latin America, Italy and
the Netherlands
– More than 7 years working as Management
Consultant for companies in several different
industries such as Consumer Business,
Telecom, Technology, Manufacturing and
Energy
© 2008, Fabio Cipriani. Some rights reserved