Success and failure in the time of social
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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.
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Success and failure in the time of social
- 1. Success and Failure in the Time of Social Michael Krigsman Esteban Kolsky Asuret, Inc. thinkJar 617‐905‐5950 913‐256‐5759 mkrigsman@asuret.com esteban@thinkJar.net Twitter: @mkrigsman Twitter: @ekolsky #crm #scrm #itfail
- 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
- 3. What is Traditional CRM? Definition of CRM (from Mitch Lieberman): Core contact management Name, address, phone, email Place to store transactions and history Orders, invoices, issues, communications Place to manage future business/pipeline Prospects, Leads, Opportunities, Campaigns
- 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% .
- 9. It’s easy to ignore warning signs
- 10. CRM Success Environment People and project – not technology © Copyright 2010 Asuret Inc. All rights reserved. © Copyright 2010 Asuret Inc. All rights reserved.
- 11. Devil’s Triangle Dysfunctional industry structure creates overlapping and conflicting agendas
- 12. Devil’s Triangle Conflicts of interest are embedded in the enterprise software industry (including CRM) Confused buyers Silos and internal disputes Wacky system integrators Customer success vs. consulting revenue Schizophrenic software vendors Loyalties split between customers and integrators
- 14. Talk is cheap
- 21. …engaging…
- 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
- 24. Social CRM success environment Feedback Engagement Transparency Brand Equity Conversation Collaboration © Copyright 2010 Asuret Inc. All rights reserved.
- 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
- 28. For more information contact: Michael Krigsman, CEO Esteban Kolsky Asuret Inc. thinkJar Email: mkrigsman@asuret.com Email: esteban@thinkJar.net Web: http://asuret.com Blog: http://www.estebankolsky.com/ Blog: http://blogs.zdnet.com/projectfailures Twitter: http://twitter.com/ekolsky Twitter: http://twitter.com/mkrigsman +1 (913) 256‐5759 + 1 (617) 905‐5950 All slides © Copyright 2009 Asuret Inc. and thinkjar LLC. All rights reserved.