? !
Social CRM
Functional Architecture and
Interactions flow
Building long-lasting links with customer through innovative experience and co-
generating value with them
Fabio Cipriani
July-2009

For Social CRM overview and introduction, please browse my
previous presentation available on SlideShare.net
 Concept
 Comparison with traditional CRM
 Benefits
 Approach for adoption
 How to put it to work
This is what you’ll see now:
 Why Social CRM?
 Functional Architecture
 Flow and Value of Interactions
 What are CRM vendors doing to promote Social experience
 Pre-requisites and business questions
© 2009, Fabio Cipriani. Some rights reserved

Why CRM should start to think Social?
Because we live in a social world…
• We are inserted in and surrounded by social communities,
• We establish relationships based on conversations,
• We struggle to be accepted by other groups,
• We share our insights with like-minded peers and friends,
• We make decisions based on suggestions from like-minded peers and friends.
… and because customers are,
more than everything else, PEOPLE
“By 2010, more than 60% of Fortune 1.000 companies will have some form of online
community deployed for CRM purposes” – Gartner Group 1
© 2009, Fabio Cipriani. Some rights reserved

Social CRM functional architecture
Social Media should be seen as a communication channel with customers where Socially-
enabled Marketing, Sales and Customer Service processes are performed to generate
value
Market
Types of
Market-
aimed Social
Tools
Social
Channel
Interface
Traditional Website Letter
Face to face
Channel Phone / E-mail
Interface SMS Internal Social Tools Fax
(Internal blogs, wikis, sharing platforms, social
Internal POS Business
networks, innovation portal, etc.)
Collaboration tools Partner
Social CRM Socially-enabled Socially-enabled Socially-enabled
Capability Layer Marketing Sales Service
Traditional CRM
Processes Marketing Sales Service
© 2009, Fabio Cipriani. Some rights reserved

Types of interactions in the Social CRM landscape
Customer-generated Market reactions on
Social CRM brand or industry
Social These spontaneous
Service interactions happens
Market- at the market side
centered social Social among customers
Sales
interactions (C2C), competitors
(outside-to-outside) Social and business
Marketin partners
g
Market
These interactions
includes the
company performing
Social CRM involved
Business- in at least one side of
centered social the communication
Customer-facing
interactions employee flow. They are B2B,
Monitoring /
(inside-to-outside Data Mining B2C, C2B and
inside-to-inside) Internal Social Tools internal interactions
(Internal blogs, wikis, sharing platforms, social
networks, innovation portal, etc.)
Socially-empowered employees
© 2009, Fabio Cipriani. Some rights reserved

Business-centered interactions in Social CRM
May be exploited by actively generating content
Own Social Content consists of social platforms
such as a marketing campaigns or creation of
created and owned by the company. They can
specific pages in existing social platforms, also
be branded or unbranded. Content is
by being present on these social environments
monitored, published and updated by specific
to answer market requests or complaints and
employees according to the company’s social
even by connecting to people in search of new
strategy
business opportunities
Market
All interactions and
Internal Social Tools
brand-related
connects employees
references are
to themselves and is
monitored and its
an open channel to
contents may be
share insights and
converted in specific
stimulate
customer experience
collaboration. Via
/ needs reports. This
tagging and ranking Customer-facing
activity includes not
the most valuable employee Monitoring / only interactions
information is put in Data Mining resulted from
evidence and may
Internal Social Tools company efforts, but
help to address
(Internal blogs, wikis, sharing platforms, social also personal
issues and shape
networks, innovation portal, etc.) content generated by
new strategies,
the company’s
innovations or even
employees in their
improve current
personal blogs, for
processes
example
Socially-empowered employees
© 2009, Fabio Cipriani. Some rights reserved

Market-centered interactions in Social CRM
Customer-generated Market reactions on
Social CRM brand or industry
These social actions are Social These reactions happen
triggered by rewards or Service spontaneously and are
happen spontaneously.
performed by customers
They are performed by Social and the market in
customers, ex-customers Sales general. The cause of
and non-customers
these reactions could be
helping the company to Social
the result of a good or
spread market Marketin
bad customer experience
messages, identify leads g
Market with your company or
via referrals and support
competitors, or could
customers on product
have no specific cause at
issues and questions.
all. They serve as basis
These actions contribute
for very important
positively to your
customer insights and,
company’s reputation
depending on the content
and results. Company
they have, it may affect
actions on Social CRM
positively or negatively
help to amplify the
your company’s
reverberation of this Monitoring / reputation and results
behavior Data Mining
Listen. Stay informed about what people are saying and look for
trends. By monitoring and analyzing the conversation about your
company you can understand why customers are complaining or
complimenting you. The next step is to join the conversation and get
more insights on your customer’s experience.
© 2009, Fabio Cipriani. Some rights reserved

Value generation from Social CRM interactions
Customer-generated Market reactions on
Benefit from spontaneous
reactions from the Social CRM brand or industry
community by connecting Social
like-minded peers Service
Improve customer
Social
intelligence by gathering
Sales
additional information
from the market
Social
Improve customer education Marketin Improve customer
and expertise g experience responsiveness
Market
Make use of a low-cost Enhance customer needs
strategy and wants understanding
Stimulate “interest” based
marketing & advertising
Develop new revenue
streams
Efficient knowledge
Extend your reach within the
management Customer-facing social media channel
Increase internal employee Monitoring /
Attract new talent from the
collaboration Data Mining
market
Establish new business Internal Social Tools
connections (Internal blogs, wikis, sharing platforms, social
networks, innovation portal, etc.)
Encounter internal talent
Increase retention through
strong morale and
commitment
Socially-empowered employees
© 2009, Fabio Cipriani. Some rights reserved

Vendors’ solutions already started to integrate web 2.0 features
and data into their CRM product portfolio. This generates value to
several company areas
Focused on internal use for collaboration
 Use of tags to “label” the customer (e.g. tag=golf for executives who play golf)
 Content sharing capabilities (e.g. sales presentations)
 Virtual collaboration (e.g. wikis, CEO blogs, teams blogs, micro-messaging)
 Rating content (e.g. rating customers, leads, shared content, etc.)
Focused on connecting external parties
 Idea/Insights capturing (e.g. idea management system platform)
 Customer support via forums (e.g. message board platform)
 Tagging, rating and reviewing products in companies' e-shops
 Blogs for sales force (followed by their customers)
 Connection with 3rd party social networks (e.g. convert Facebook friends as
contacts, access a Facebook page directly from the application, obtain relevant
information provided by the customer itself in Facebook: About me, Activities,
Favorite Movies, Favorite Books, Favorite Music, Interests, etc., Amazon’s
reviews, ratings, etc.)
 Connection with Twitter for running campaigns directly from the CRM platform
and listening and support current customers
© 2009, Fabio Cipriani. Some rights reserved

But before you decide to go for Social CRM, there are many open
questions drawing the line between going with the flow and extracting
real CRM value from Social Media. These are just a few of them…
Are all of your social Are your social media Do you know how
media efforts efforts part of a broader “social” are your
integrated with your Social CRM / Social Media employees?
CRM system? strategy or is it just an
random project?
Have your “social”
Are your processes and business rules employees received
adapted to encourage social behavior? proper training?
Is your front line
Are you able to track Have you assessed productivity under
benefits and return on all Corporate control?
investment effectively? Security concerns?
© 2009, Fabio Cipriani. Some rights reserved

Becoming Social: Social CRM demands a Social transformation of
your business
Is imperative to understand the social
influence on all CRM Building Blocks …
Social influence changes the
traditional CRM building blocks, its
supporting processes, IT Social
infrastructure and demands Strategy influence
companies to work towards a Social
CRM vision composed by:
Operations
•Social Strategy,
•Social Operations and,
•Social Organization Organization
“By 2010, more than half of companies that have established an online community will fail
to manage it as an agent of change, ultimately eroding customer value. Rushing into social-
computing initiatives without clearly defined benefits for both the company and customer
will be the biggest cause of failure” – Gartner Group1
© 2009, Fabio Cipriani. Some rights reserved

However, to successfully adopt and generate value with Social
CRM, there are a few pre-requisites that should be taken into
account
• Understand Social CRM and Social tools, its characteristics, risks and
business case
• Develop a proper Social Strategy comprising tools (wikis, social networks,
twitter, etc.) and scope (monitor, engage conversations, get customers to
collaborate, spread viral messages, etc.)
• Have a effective traditional CRM system in place
• Have processes mapped and well documented
Strategy • Have a project portfolio management in place to put all social
initiatives linked together
Operations
• Have the CRM philosophy and its objectives already spread
and well-known among employees
• Evaluate the organization’s readiness to embrace the
principles of online collaboration
Organization • Executive buy in and support
Even though the pre-requisites fulfillment and the current CRM maturity might affect the
resulting roadmap to Social CRM deployment, it is always possible to identify quick wins
on one or more CRM areas that can be implemented right away
© 2009, Fabio Cipriani. Some rights reserved

About me...
Fabio Cipriani
●
Author:
●
“Corporate Blogging” – First book about web
2.0 in Brazil – 2nd edition released in 2008.
●
Brand new title to be released 1st quarter of
2010 approaching Social Strategy and Social
Media adoption paradox
●
Academic Background
●
Electronics Engineer and Master of Science in
Wireless Systems
●
Post-Laurea in Economy and Management of
Small/Medium Businesses
●
Project experiences
●
Customer & Market Strategy developments
and CRM implementations in Latin America
and Europe
●
More than 8 years working as Management
Consultant for companies from multiple
industries such as Consumer Business,
Telecom, Technology and Manufacturing
Except where otherwise noted, this work is licensed under
http://creativecommons.org/licenses/by-nc-sa/3.0/
© 2009, Fabio Cipriani. Some rights reserved