Reminder on existing theory of Customer Relationship Management (CRM)Important to first start with Traditional CRM methods because social CRM does not work in isolationTraditional CRM is typically a business to consumer relationshipRelationship is pushed by the business not by the consumer.Consumer does benefit however business drives the relationship- Giving up data/information, spending patterns, contact details, etc.
Social CRM is an extension of Traditional CRMNot a standalone solution or method, but complements existing CRM strategiesSocial CRM is more of collaborative relationship between a business and its consumersHave to be seen to be helpful or engaging in a way that is beneficial to both partiesIf benefits are only seen to the business then Social CRM strategies will not be successful-
This diagram emphasizes the new relationships created through Social Networking and Social CRM.Customers have the ability to talk directly with the businesses they have an interest in, however what is said (and more importantly how it is dealt with) is visible to their communities.Customers have new channels (social networks) from which they can communicate and engage with other businesses (competitors and partners)In social networking businesses loss an element of control in a customers ability to influence their virtual communities
Viral Marketing is a marketing technique that is used to create brand awareness through word of mouth (WOM)Prior to social networking these were just discussions you would have with a few peopleNow status’s and tweets go out to hundreds if not thousands of users at a time proliferating the rate at which viral spreads.These views are not always positive!!! Therefore there is sometimes a need for businesses to intervene with social conversations in order to ensure that the end result is positiveCustomers are demanding engagement through Social mediaSocial CRM is sometimes seen as an opportunity to build more intimate relationships with customersHowever statistics like this suggest it is more of a necessity
KLM (Dutch Airliner) used Twitter to communicate with its customers during the ash cloud crisisMost customers saw this as really helpful and appreciated the effort that KLM had shownLive reply – personalised responses via video using KLM staff streaming live.May ask what are the benefits in this – However as mentioned before this is personalised customer service and will proliferate through networks of people very fast through social media- Not only through networks but media catch wind of things quicker through social networking which creates brand buzz
More typical approach to customer service than KLMNetworked Hive approach to Customer ServiceEmpowered employees to answer questions, 2900 of them signed up to answerBenefit in terms of cost is always something that concerns managers when concerned with Social CRM – hard to measureHowever here the estimated cost savings show that there is money to be made/saved in utilising social networks to engage with customers
Social CRM - Customer Service Goes Social
Social CRMCustomer Service Goes Social Mark PuddifootInformation Systems Management
What is Social CRM Traditional CRM (Customer Relationship Management) is a business model for managing a company‟s interactions with existing and potential new customers Customer Loyalty Cards Recognition Cards User registration on websites. Traditional CRM is typically a business to consumer relationship Sales Marketing Customer Service & Support
What is Social CRM Social CRM (SCRM) or CRM 2.0 as it is sometimes known is an extension of Traditional CRM to incorporate and influence consumer activity that occurs in virtual communities generated as a result of Social Networking Not technology but a business strategy The aim of SCRM is to build a more collaborative relationship with „social‟ consumers in which there are perceived benefits for both parties Co-creation of solutions, products, services Crowdsourcing for ideas Customer Service/Support
Traditional to Social CRM Competitor Customer Customer Customer Company Customer Customer CustomerTraditional CRM Social CRM Partner The control of the relationshipThe Company has controlover its relationships with switches to the customer.their customers. Business have limited influence of customer to customer communications
Why use Social CRM? Social Networking has grown exponentially in the last decade becoming a primary means of communication in society 1bn + Registered Facebook users 500mn + Registered Twitter users WOM marketing is proliferated through the use of social networking. Negative brand exposure is a concern for businesses “Consumers are much more trusting of friends and colleagues than they are of TV advertising or corporate communications” (Woodcock et al, 2011) Social Customer Service - 70 percent of consumers turn to social media to ask questions about a product, brand, or company and 49 percent of these consumers use the information they gather to make a purchasing decision (Coyle et al, 2012).
Customer Service goes Social Continuum of helpfulness (Coyle et al, 2012) Random acts of kindness via Simple acknowledgement of microblogging platforms customers problems or concerns.Gave customers personalised gifts when boarding their flights through using Social media„A man traveling to Mexico to build houses for the homeless was given a care package of muscle ointment and adhesive bandages‟
@twelpforce Best Buy Customer Service Best Buy adopted a „Networked Hive‟ approach to Customer Service This took advantage of the wealth of knowledge in the staff of Best Buy and empowered them to answer any customer queries channelled through @twelpforce Estimated $5mn savings in call center deflection
Social CRM Overview Self Service (Community) Co-creation CustomerCustomer ServiceResearch Social CRM RecruitmentSales Target Idea Marketing Generation Events Promotion
Summary Social CRM is an extension of Traditional CRM The shift of the relationship between the business and its consumers switches to consumer in their ability to influence others in their network The aim of Social CRM is to increase customer engagement an build more intimate collaborative relationships Social customer service is a necessity for businesses to engage in due to consumer demand for interaction through social networking Customer Service is but a small part of Social CRM strategies
ReferencesWoodcock, N., Green, A., Starkey, M. (2011, February 9 th). Social CRM as a business strategy.Journal of Database Marketing &Customer Strategy Management, Vol. 18 (No.1), p50-64 Retrieved November 6th, 2012 fromhttp://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=52f1d639-d531-42e4-b923-a843d293b281%40sessionmgr104&vid=2&hid=105Baird, C. H.,& Parasnis, G. (2011, June).From social media to Social CRM. Retrieved October 31st, 2012 from http://www-935.ibm.com/services/uk/cio/pdf/social_media_Part_Executive_Report.pdfCoyle, J, R., & Smith, T., & Platt, G. (2012). “I‟m here to help”: How companiesmicroblog responses to consumer problems influencebrand perceptions, Journal of Research in Interactive Marketing, 6(1). Retrieved December 17, 2012 fromhttp://www.emeraldinsight.com/journals.htm?issn=2040-7122&volume=6&issue=1&articleid=17035867&show=htmlhttp://www.digett.com/2011/01/11/klm-surprise-how-little-research-earned-1000000-impressions-twitterhttp://socialtimes.com/klm-twitter-response_b78650
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