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HP Social customer relationship management


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Viewpoint Paper: engage …

Viewpoint Paper: engage
your most valued customers with responsive,
productive, and social conversations.

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  • 1. Social Customer RelationshipManagementViewpoint paper engage your most valued customers with responsive, productive, and social conversations. The rapid adoption of social media has shifted the balance of power away from the selling enterprise and toward the customer.
  • 2. Table of contentsUnderstanding social customer relationshipmanagement (SCRM)................................................1State of the market. ..................................................1 .Challenges and opportunities.....................................2A social CRM solution...............................................3Why SCRM makes sense. .........................................5 .Partnering for SCRM.................................................6How HP can help.....................................................7Conclusion..............................................................8About the author......................................................9
  • 3. HP believes companies must integrate socialmedia strategies into existing CRM structures tobetter engage customers, draw clearer insights,and drive measurable value. By listening,analyzing, and engaging with customers acrossmultiple channels, organizations can open morehelpful and profitable conversations. Understanding social customer State of the market relationship management (SCRM) Customer relationship management was traditionally Across the commercial spectrum and across the world, seen from the perspective of the selling organization. customers are changing. Depending on their specific objectives, companies, agencies, and other organizations worked to shape Today’s buyers are better informed and more and measure those customer interactions. That top- demanding, increasingly mobile, ubiquitously down concept of CRM worked well for generations. connected, and amazingly social. Consumer and business customers continue to adopt social But times have changed. In an era when they can no networking at accelerating speeds, connecting with longer control customer interactions, forward-looking others, creating communities … and rapidly changing sellers now strive to enable and support this new user the very nature of customer relationships. experience. Astute organizations now embrace the emerging Social CRM model—and the reality that the End users are more often self-educated, and willing to customer increasingly owns the conversation—as a research products and services to stay informed in a way to extend and enhance those relationships. rapidly changing world. They tap into social media at any time, in any location, and from a dazzling array Given the emerging nature of this model, it may help of devices. In this “always-on” environment, consumer to better define the term. IDC describes social customer demand is shaped on a globally networked stage, where relationship management in a 2010 report.1 opinions can be influenced by uncontrollable forces. “Social networking is the process of using an online Decisions are often instantaneous and customer (Internet) community (e.g., Facebook and Twitter) expectations unforgiving. Once-loyal customers are to network and communicate between consumers sampling and moving to new venues and products. and businesses and includes user-generated forums Aggressive new competitors emerge with ease. Scale such as blogs, YouTube, and other online public and brand images—built over decades—can be forums. Social CRM is defined as the combination of seriously damaged by an overnight viral sensation, customer relationship management efforts with social whether true or not. networking, oftentimes used as an additional channel for customer care.” The reality of social media now affects virtually every business sector across the globe. The pace of these changes is accelerating, and organizations are struggling to keep up. In this viewpoint paper, HP offers a perspective on how organizations can better understand, deploy, and leverage customer relationships in the emerging social marketplace. 1 IDC, Social Media Services Trends in Customer Care Outsourcing, 2011. 1
  • 4. SCRM does not replace the transaction or the Challenges and opportunitiesquantitative aspects of selling. Instead, social CRMleverages both new and existing systems and With over 1 billion people now using social networks,processes within the context of the social networking and more consumers logging on every day, companiesenvironment. At its best, SCRM gives organizations are struggling just to keep up. Consumers relythe ability to listen to consumers across the vast and increasingly on user forums, review sites, and otherdynamic social media; to collaborate and respond social media when making purchase positive ways; and to open a more balanced, Generations X and Y are particularly likely to gotransparent, and mutually beneficial conversation. online first to find and evaluate products and servicesProperly integrated, the social CRM channels become options, to address technical issues, and to make aa part of an organization’s operating channels. purchase transaction. As familiarity with social media spreads, customers are increasingly willing to nameIn its 2011 survey2, IDC reported a strong and and shame brands for service problems, productgrowing awareness among corporate managers of faults, or other negative experiences.the importance of social media to their businesses.According to that IDC report, more than 70 percent Unfortunately, the sheer volume of traffic, the numberof responding organizations used social networking of sites, and the pace of change make it extremelyto support customer care service, human resources, difficult for companies to monitor and understand whatprocurement, or other key business processes. Most their customers are saying on the social networks.businesses, and particularly manufacturers, worked At this early stage, few organizations have a well-with third-party BPO providers to manage at least defined social media strategy, and fewer still havesome of those social networking activities. developed plans for proactive service delivery or aAccording to a 2011 NelsonHall study3, “Monitoring corporate persona within the social media currently make up the largest segment (of Most need an organized, software-based system toSCRM services), used in order to ascertain potential connect their enterprise to the social web. They maybenefit of other social-media services, as well as to not yet understand how best to empower employees tohelp define social-media strategy and budgeting, connect more directly with customers.through providing insight into buzz, sentiment, While traditional CRM systems and processes are stillsources, and other top-level information.” important, they are insufficient for the more dynamicOf course, customers differ greatly, and not every and complex interactions now happening on theconsumer has or will embrace the emerging social social Some customers are inherently more valuable, As of now, most organizations use social CRM for fivewhile others do not justify the cost of attracting or key activities:retaining them. Even as CRM shifts from a B2B focus 1. Monitor and track social media networks for anyto a customer-centric B2C environment, many clients impact on the enterprisestill need direct assistance, which is why organizationscannot abandon their traditional CRM capabilities. 2. CRM-related cost reduction 3. Customer acquisition, including customer retentionAt the same time, most customers expect and demand and loyalty management effortsa consistent experience across their relationshiplifecycle—whether they are a longstanding client 4. Better manage their brands, including damageor a new prospect, visiting a brick-and-mortar store control and crisis managementor browsing a website, or commenting to a contact 5. Gain consumer and competitive insights and othercenter agent or a blog comment thread. market intelligence2 ibid.3 Targeting Outsourced Social-Media Services, NelsonHall CustomerManagement Services, September 2011 2
  • 5. Of those activities, monitoring is currently the primary Next, data must be mapped to find customer profilesfocus for many organizations. NelsonHall reports on Facebook, LinkedIn, and other sites to matchthat businesses are tracking social media activities those profiles to customer records, and to offer theto gauge the potential benefit of engaging their consumer a more holistic social media experience.customers via social networks, and to help define their Organizations can then manage SCRM, leveragingsocial media strategies and budgets by providing business rules and processes to triage data, and toinsights into buzz, sentiment, and sources. set up systems to handle social network events—both positive and negative.Once a reliable monitoring system is in place,organizations typically leverage SCRM to support Middleware technologies—such as complex eventbrand management, either to minimize the impact of processing, business rules, workflows, data integration,negative social-media commentary, to enhance customer and process orchestration—can be used to betterservice, or to encourage customers to reconnect via a connect the social media world to the corporatemore traditional channel. SCRM can help drive cost environment. Finally, advanced dashboards, business-reduction by allowing organizations to better manage oriented metrics, and other tools can be used toconsumer forums, to encourage consumer-to-consumer measure and understand the social CRM environment.interaction, and to provide knowledge hubs where Listen, filter, actcustomers can share technical information. To improve the payback from social media programs,Social media can be a rich source of market organizations should work to deploy social CRMintelligence, and can provide retailers and other strategies that are supported by strong business cases,organizations with information on consumer attitudes, and that are closely aligned with the organization’semerging trends, and competitor activities. While strategic objectives.relatively few organizations are using SCRM in actual For organizations that hope to engage and managesales situations, online chat and other alternatives can social conversations with their customers, HP recommendsbe used to shift leads to viable sales channels or to an approach based on listening, analyzing, and thenbetter handle inbound customer queries. engaging. An SCRM program should incorporate necessary organizational and business processA social CRM solution improvements, and should be implemented using anOnce they recognize the promise and necessity iterative improvement methodology.of conversing with customers via social media, This approach accelerates SCRM time-to-value byorganizations must select and deploy a workable capitalizing on available industry expertise andSCRM solution. Industry observers have identified five technologies. It is designed to allow executives tokey activities that define the journey along the social quickly and quantitatively assess the impact of socialmedia maturity curve. media on their enterprise, while minimizing the needMonitoring is the first step, during which sellers to invest in software licensing or additional staff. Thislearn to see and hear what is being said about method has been shown to help companies betterthem. Organizations can leverage brand monitoring attract and retain customers, to reduce costs andsoftware to monitor and scrape social websites and operational risks, and to grow revenue.tightly scoped keywords to filter out extraneous noise. 3
  • 6. Figure 1A “conversation hub” approach supports enterprise-class social CRM. End-user engagement— proactive and reactive People Process Listen Integrated Report Monitor “Conversion Hub” Respond (CC command center) Enriched and Analyze End-user centric deeper Evaluate End-user directed “conversations” TechnologyAs illustrated in Figure 1, HP envisions the creation of In most organizations, contact centers and associateda “conversation hub” that combines the people, infrastructure must evolve to integrate new SCRM toolsprocesses, and technology needed to invite and and processes. Those changes are primarily designedorchestrate dialogue in the social media setting. to give end users broader access to the knowledgeEmerging technologies are used to provide end-user and people skills needed to meet their sales orresearch, networked opinions and input, tracking, and support requirements.reporting. HP will offer additional insights on this concept Powerful SCRM toolsin an upcoming “Conversation Hub” white paper. Specific SCRM toolsets may incorporate both physicalIdeally, this process should support phone, web, text, and virtualized assets, including:and other channel interactions. It should provide Technology-basedconsistent advice and guidance across those channels, • Automated, software-based listening technologies toand support decision-making based on appropriate monitor social media networksbusiness rules and delegated authorities. Agents areengaged from roles and teams across the enterprise • Advanced analytics to identify patterns, trends,to ensure the best person is used to address the developing problems, and opportunitiescustomer’s requirement. • Presence information and workload distribution capabilities to identify and utilize the mostReporting and metrics no longer focus on the needs of appropriate resource for every conversationthe organization (as are the traditional contact centermeasures of cost and efficiency), but rather on the • Alerts and leading-indicator analysis to support(customer-oriented) measures of resolution, satisfaction, more dynamic outbound engagements, offers,and delivered value. Analytics are tuned to user- campaigns, and escalationsoriented variables, such as patterns, experience, and • Mobile applications and location-based services thatcommunities. Market communications, promotions, deliver real-time value to end usersand segmentation focus more on user values than onthe features of a product or service. 4
  • 7. Agent-based Ideally, a fully capable SCRM program would• The unique skills, experience, language, and work closely with existing CRM capabilities, such cultural insights needed to engage more complex as multichannel ACDs, inbound IVR and speech customer conversations recognition systems, CTI, voice analytics, and voice• The ability to present information based on mail support. Agent desktop, workforce management, segmentation, history, and user profiles—to enable knowledge management, quality monitoring, warmer, richer, more intimate dialogues performance management, and eLearning systems should also be fully integrated with the SCRM systems.Process-based• Decision-making business rule support to delegate Where appropriate, social CRM solutions may also be authority at the first point of contact closely integrated with consumer direct capabilities, outsourced contact center services, warranty, software• Robust change management capabilities publishing, and other CRM managed services.• Virtualized contact models, work-anywhere specialists, and other relevant resources Few companies currently have these unique SCRM tools, and many would consider alternatives toA new generation of intelligent data technology building the internal infrastructure needed to sustain aallows companies to access, manage, and understand social CRM program.customer feedback in powerful new ways. Thisinnovation gives organizations a scalable, cost- Why SCRM makes senseeffective way to see and grasp customer vast amountsof customer feedback from a variety of sources— Across industries and segments, customer-orientedbecause now every call center recording, survey organizations can leverage social CRM to realizeresponse, mobile or email contact, chat or web-based these measurable advantages.log, and Facebook post are immediately searchable Customer Engagementfor key concepts and relationships. • Increase customer intelligence by gleaningBy instantly extracting valuable insights, this intelligence from social networksapproach allows businesses to spot and take actions • Open more personal, intimate conversationson emerging trends, to address issues before they with customersbecome serious web-fueled problems, and to amplify • Ensure consistent customer experiences across stores,customer success stories. contact centers, online venues, and other channelsBroader integration • Enhance customer relations, service, support,Those innovative social CRM tools should be and retentionintegrated smoothly with traditional enterprise CRM • Gain actionable feedback on customer perceptionscapabilities to form a single, holistic approach. and satisfaction 5
  • 8. Enterprise Many customer-oriented organizations are turning• Understand and quantify social media data to to experienced partners to more quickly deploy the create improvement and opportunity for the business talent, processes, and technologies needed in the• Drive up-sell, cross-sell, and other revenue opportunities social CRM setting.• Leverage proactive communications to deflect calls The good news is outsourced providers can now deliver toward more helpful or cost-efficient resources robust and mature SCRM capabilities, including• Create marketing programs that better suit actual automated monitoring applications, knowledge support customer needs and interests and workflows, and the advanced analytics needed to engage in intelligent, often free-flowing conversations.• Spot and address emerging threats to brands and The best of these solutions have the ability to take corporate images an incoming contact, to sort and analyze that conversational opening, and then to extrapolate andPartnering for SCRM connect the consumer to a resource that can answerIn the emerging social media environment, customer the question, fix the problem, or close the sale.engagement will be a more balanced conversation When evaluating potential SCRM approaches, HPbetween organizations and consumers. Rather than believes that organizations should seek solutionsdirecting that relationship, astute organizations will that leverage technology to reduce complexity inseek to orchestrate a more equal dialogue that creates the always-on, always-connected world. Simplypositive and valuable outcomes for both businesses hiring more people will not work, since the numberand consumers. of consumers on new social channels is growingTo do that, however, requires organizations to seek new exponentially. To succeed, companies need ancustomer-oriented tools, processes, and capabilities. organized SCRM approach that uses enterprise software that connects business units to the socialTraditional contact centers and customer service units web, and that enables the organization to respond infocused on the use of workflow automation, service a coordinate, near real-time way.level agreements, labor arbitrage, and self-servicetechnologies to improve efficiencies and reduce Customer and consumer expectations are rising. Bycosts. Those capabilities are still relevant, but to learning to open and orchestrate a socially intelligentsupport more socially oriented engagements, retailers dialogue, companies can drive customer service,and others must learn to manage vast amounts of retention, and growth today and into the future.information across multiple channels, to filter out thenoise, and to connect and enable more active anddemanding customers. 6
  • 9. Figure 2HP links the contact center to social media Client Marketing Social Media Monitor/Maintain Client Sales Social Networks Contact Center Collaborate Client Analyze Route Product Report Development Listen Respond Client Public Relations Client PartnersHow HP can help HP then works with the organization to further assess its maturity and to develop a social mediaHP is uniquely qualified to assist in the creation or transformational roadmap. Enterprise SCRM maturitymanagement of an enterprise-grade social CRM levels include:program. The company currently provides social CRM • Aware—aware of the value of social media but hascapabilities to globally successful customer-oriented not developed capabilities.organizations, and operates its own SCRM program tolisten, learn, and connect with HP customers worldwide. • Developing—developing social capabilities along the four capabilities described above.Clients trust HP to design, develop, and deliver • Practicing/at Parity—practicing social CRM but atthe holistic “conversation hub” model needed to parity with competitors.orchestrate a dialogue and to engender customerengagement through the social media. The company • Leading—practicing social CRM, competitivehas the infrastructure and processes needed to advantage relative to competitors.monitor, engage, and manage conversations and • Best-in-Class—recognized as a clear leader withinrelationships with existing and prospective customers, its competitive peer, competitors, and influencers across the HP Labs has been researching and exploring the socialInternet, social networks, and digital channels. use of computing for more than three years and hasHP has developed a proprietary methodology published approximately 100 papers exploring thedesigned to support world-class social media various aspects of social media and communications.capabilities. That process starts by assessing In fact, HP has developed its own sentiment analyzerorganizational capabilities on four levels: and live analytics social CRM capabilities.• Level I—Sentiment Analysis. Monitoring the market for commentary about your brand• Level II—Brand Defense. Putting the human and automated processes in place to respond to and engage consumers who have issues with the brand.• Level III—First Contact Resolution. Resolving real service issues in both human and self-service channels.• Level IV—Service to Sales. Crossing from service to sales with highly targeted offers. 7
  • 10. The recent acquisition of Autonomy further strengthens Traditional CRM methods and tools cannot manageHP data analytics, information management, and the complexity of rapidly evolving channels andcloud capabilities, and complements existing consumer-to-company conversations. As thoseHP storage, networking, software, services, and relationships evolve away from one-to-one transactions,enterprise server offerings. and toward many-to-many interactions, the balance of power is shifting from sellers to the customer.Those unique SCRM capabilities extend and enhancemore traditional HP capabilities. The company has To survive and thrive, organizations across the30-plus years of experience providing contact center industrial spectrum are moving to integrate socialservices to more than 450 clients worldwide. HP has media into their traditional CRM programs.more than 30,000 agents from 112 global contact HP has refined a proven approach to SCRM thatcenters in 34 countries, supporting 51 languages and allows organizations to monitor, engage, and manageproviding domain expertise in all major industry and today’s more complex relationships. Companies24 specific segments. can use this approach to orchestrate conversationsNamed outsourcing services leader by CRM with existing customers, new prospects, partners,Magazine for six consecutive years, HP brings a influencers, and others across web and digitalcommitment to quality, productivity, and security to the channels, and through current and emerging socialevolving world of social CRM. media networks. By connecting CRM to the social media, organizationsConclusion can open customer conversations that are broader,In the emerging world of social media—in which more helpful, and more productive.consumers utilize emerging networks to connect,communicate, and buy—organizations are falling behind. 8
  • 11. About the authorDennison J. DeGregorDennis DeGregor is the CRM Portfolio lead for HPEnterprise Services. His responsibilities includeworking with HP clients to create world-class,customer-centric, integrated business models thatgive our clients competitive advantage in acquiring,growing, and retaining customer relationships inthe age of social media. Since joining HP in 2011,DeGregor has led the development and launch ofan end-to-end Customer Engagement Managementsolution offering that has positioned HP as a clearthought leader in the customer engagement space.DeGregor is an industry-recognized pioneer andinnovator in the Customer Engagement Managementsector. He is known as a transformation leader andchange agent in the conversion of large, complexmultichannel enterprises to the customer-centric model.Prior to HP, he has held the positions of SVP/chiefCRM officer at Bank of America, VP/chief CRMofficer at Allstate, VP of CRM at Merrill Lynch, VP ofEnterprise CRM at Qwest Communications, and VP ofDatabase Marketing at Citigroup. Over his career,DeGregor has personally implemented $800 millionin customer-centric solutions that have positivelyimpacted the operating metrics and net present valueof these companies.DeGregor holds an MBA from the University ofChicago and a bachelor of science degree from theUniversity of Illinois. He has served on the Committeefor Economic Policy Studies at Princeton and ascustomer strategy and operations advisor to the CEOsof publicly held companies. 9
  • 12. Share with colleagues Get connected Get the insider view on tech trends, alerts, and HP solutions for better business outcomes© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The onlywarranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing hereinshould be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.4AA4-0470ENW, Created March 2012