3 Reasons why you should provide Customer Support on Social Media

3 Reasons why you should provideCustomer Support on Social Media by Harish Kotadia, Ph.D. Twitter: @HKotadia http://HKotadia.com/

Trend Reason No. 1: Numbers Stupid ! 1: Cloud Computing/SaaS CRM • Social Media channels (like Twitter and Facebook) generate tremendous volume of • user generated a recentcreated by millionsby users.Nielsen Company, CRM systemspend According to content research study of The Not possible for “Americans to import/store the data “locally”. This is unlike “traditional” CRM, where data up from nearly a quarter of their time online on social networking sites and blogs, was generated by few usersyear stored–ina “local” database. increase in the last it possible 15.8 percent just a and ago” whopping 43% SaaS Model makes one to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand” see this link). year (for more, please • • Social if % time spent on Social Networking sites Very difficult, if not its current And Media space is changing and evolving rapidly. continues to grow at impossible, for any soon it vendor to incorporate all new50% of time spent “locally” meaning Social rate, CRM CRM account for morethe SaaS model, it is feedsdifficult –to for every will system. Under than channels and not online add new installation of Social Media will become the to the “hosted” (Social)and Social Networking willit Networks channels/feeds dominant force “online” CRM application and make available to users “on-demand” internet. become synonymous with the© Harish Kotadia, 2011 Twitter: @HKotadia 2

Trend 1: ReasonComputing/SaaS CRM Cloud No. 2: It is Social !! • Social Media channels (like Twitter and Facebook) generate tremendous volume of • user generated equate Social Networking with communicatingpossible for CRM system they Many People content created by millions of users. Not via Chat or Email. Well, to import/store the data “locally”.ItThisimportant to“traditional” CRM, where data was and cannot be farther from truth. is is unlike note “Social” in Social Networking generatedisby few users and stored in “local” on Social Media channelsmakespublic – visible that it not just networking. Conversations database. SaaS Model are it possible totostore And customers the “cloud” (shared space) discussing aboutfrom (Social)issues with all. information in and potential customers are and access it problems or CRM application and brands on Social Media channels whether the marketer is participating in products “on-demand” the discussion or not. • • Social Media space is changing to participate rapidly.discussion and providenot impossible, It is important for marketers and evolving in the Very difficult, if Customer Support for any CRM vendor to incorporateemailnew chat, interaction on Social Media channels is on Social Media channels as unlike all or channels and feeds “locally” for every installationlimited to customer and the the SaaS model, visiblenot difficult tocustomers and not just of CRM system. Under marketer, but is it is to all other add new Social Mediaand they can participate “hosted” (Social) CRMand benefit from make it prospects, channels/feeds to the in the discussion as well application and it. Any available to resolution of an issue is visible to all and can contribute to building of brand favorable users “on-demand” equity and loyalty.© Harish Kotadia, 2011 Twitter: @HKotadia 3

Trend 1: Cloud3:Computing/SaaS CRM Reason No. It can dramatically reduce cost of customer support !!! • Social Media channels (like Twitter and Facebook) generate tremendous volume of • user isgeneratedknowledgecreatedindustry thatofcost of providing customer supportsystem to It common content in the by millions users. Not possible for CRM is highest import/store thetransactions, followed by unlikeof“traditional” CRM,over phone. After the in face-to-face data “locally”. This is cost providing support where data was generated revolution in ’90s, storedcompanies started offering online “self-service” customer internet by few users and many in “local” database. SaaS Model makes it possible tosupport information inreduce cost of providing support drastically. from (Social) CRM store This helped the “cloud” (shared space) and access it • application “on-demand” Social Media channels can help companies further reduce cost of Customer Support over providing support as on Social Networks, brand advocates/loyal customers help other • Social Mediaout by answering their questions or suggesting solution, rather than company customers space is changing and evolving rapidly. Very difficult, if not impossible, for anytrying to answer all the question. new channels and feeds provide necessary Reps CRM vendor to incorporate all Role of marketer is to “locally” for every installation of CRM for support. the SaaS model, it is not difficult to add new platforms and tools system. Under • Social Media as support center outsourced to other customers! applicationdramaticallyit Think of it channels/feeds to the “hosted” (Social) CRM This can and make available costusers “on-demand” support. reduce to of providing customer© Harish Kotadia, 2011 Twitter: @HKotadia 4

Trend 1: Cloudthis out to learn more: CRM Check Computing/SaaS • • Social Media channels (like Twitter(CRM) – Explained! Social Customer Relationship Management and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was • generated by few usersit and stored in “local” database. SaaS Model makes it possible Why CRM ain’t CRM if isn’t Social to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand” • CRM Paradigm Shift • Social Media space is changing and evolving rapidly. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every • installation ofThe Newsystem. Under the SaaS model, it is not difficult to add new Social Media: CRM Front End of CRM System Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand” • How Customer Engagement will determine winning brands in Social Era© Harish Kotadia, 2011 Twitter: @HKotadia 6

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3 Reasons why you should provide Customer Support on Social Media

by Harish Kotadia

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