Social CRM - Customer Service Goes Social

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University presentation on Social CRM taking specific focus on its impact on customer service through social media.

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Social CRM - Customer Service Goes Social

  1. 1. Social CRMCustomer Service Goes Social Mark PuddifootInformation Systems Management
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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).
  6. 6. 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‟
  7. 7. @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
  8. 8. Social CRM Overview Self Service (Community) Co-creation CustomerCustomer ServiceResearch Social CRM RecruitmentSales Target Idea Marketing Generation Events Promotion
  9. 9. 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
  10. 10. 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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