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Success and failure in the time of social


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To understand success with Social CRM, we should look at the broader context of CRM itself. This presentation was given at the CRM Evolution 2010 conference in New York, on August 2, 2010.

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Success and failure in the time of social

  1. 1. Success and Failure in the Time of Social Michael Krigsman Esteban Kolsky Asuret, Inc. thinkJar 617‐905‐5950 913‐256‐5759 Twitter: @mkrigsman Twitter: @ekolsky #crm #scrm #itfail
  2. 2. What is Social CRM? “Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It is the company's programmatic response to the customer's control of the conversation.” ̶  Paul Greenberg
  3. 3. What is Traditional CRM? Definition of CRM (from Mitch Lieberman):  Core contact management  Name, address, phone, email  Place to store transactions and history  Orders, invoices, issues, communications  Place to manage future business/pipeline  Prospects, Leads, Opportunities, Campaigns
  4. 4. Key Differences Exist… Traditional CRM Social CRM Operational Relationship-based Controlling the customer Customer is in control Hierarchical Collaborative
  5. 5. Plus ça change, plus c'est la même chose  The more things change, the more they stay the same  History repeats itself  Social CRM builds on traditional, operational CRM  Failure persists and lessons must be learned  Examining the past helps explain and predict the future Social CRM CRM
  6. 6. Understanding CRM failure
  7. 7. Traditional CRM failure rates  Gartner 2001: 50%  Butler Group 2002: 70%  Selling Power, CSO Forum 2002: 69.3%  AMR Research 2005: 18%  AMR Research 2006: 31%  AMR Research 2007: 29%  Forrester Research 2009: 47% .
  8. 8. Failures persist despite millions  invested in prevention. Why?
  9. 9. It’s easy to ignore warning signs
  10. 10. CRM Success Environment People and project – not technology © Copyright 2010 Asuret Inc. All rights reserved. © Copyright 2010 Asuret Inc. All rights reserved.
  11. 11. Devil’s Triangle Dysfunctional industry structure creates overlapping and conflicting agendas
  12. 12. Devil’s Triangle Conflicts of interest are embedded in the enterprise  software industry (including CRM)  Confused buyers Silos and internal disputes Wacky system integrators Customer success vs. consulting revenue Schizophrenic software vendors Loyalties split between customers and integrators
  13. 13. People talk about stopping CRM failure
  14. 14. Talk is cheap
  15. 15. And creates… Train wrecks of business  disruption and waste
  16. 16. Social CRM is Different
  17. 17. Mostly, because as we evolve…
  18. 18. …this does not work anymore.
  19. 19. Social media is about conversation…
  20. 20. ...listening carefully...
  21. 21. …engaging…
  22. 22. …and collaborating together.
  23. 23. Failure: Poor engagement with customers  Transition from operational to engaged metrics  Need to change measurement, incorporate Social KPI  Goals, objectives are still CRM‐driven, but accommodate Social x  Social projects require engaged conversation  Lack of engagement drives other problems  Difficult to measure “Return on Engagement”  Disengaged companies do not create trust  Trust creates long‐term loyalty, return business  Trust does not facilitate success; traditional failure points remain  Social business means evolution  Openness, transparency, trust, conversations  Not mandatory, but desirable
  24. 24. Social CRM success environment Feedback Engagement Transparency Brand Equity Conversation Collaboration © Copyright 2010 Asuret Inc. All rights reserved.
  25. 25. Examples of Social CRM success  MySpace  Faced with failing customer service, rebuilt based on communities  Recognized that listening to customers is mission critical  Nike  Nike+ built a community for sharing data and info, create buzz  Flexible on goals and plans essential  Starbucks  Several ongoing projects aimed to spread brand, build loyalty  Coordination among stakeholders critical to success  Levi’s  Using multiple channels to leverage “ambassadors” (advocates)  Bridging gap between social culture and social technology was key
  26. 26. Achieving SCRM success Is easier said than done
  27. 27. Key Lessons  Engage, internally and externally  Gather feedback and opinions  Listen, learn, grow  Keep goals in mind  Kumbaya feels good but doesn’t further business  People don’t want relationships, they want engaged commitment  Social is about people  Not about technology  Not about processes  Not about measurement (but business‐oriented metrics are important)  Don’t Replace CRM, Extend it with Social  Stand‐alone, siloed Social CRM means failure before starting  Add social objectives, goals, needs, and wants to CRM
  28. 28. For more information contact: Michael Krigsman, CEO Esteban Kolsky Asuret Inc. thinkJar Email: Email: Web: Blog: Blog: Twitter: Twitter: +1 (913) 256‐5759 + 1 (617) 905‐5950 All slides © Copyright 2009 Asuret Inc. and thinkjar LLC. All rights reserved.