1. For a more comprehensive look into Digital Marketing and Social Influence Marketing view my PowerPoint on SlideShare:
From Monologue to Dialogue, Digital & Social Influence Marketing
Social CRM
Martin Walsh
Digital Marketing Director
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First created: January 2009
Last updated: February 2010

2. Social CRM
A process to monitor, engage and manage conversations and
relationships with existing and prospective customers and
influencers across the Internet, social networks and digital
channels.
Or another way to look at it:
Social CRM is the process of converting content into
conversations and extending these conversations into
collaborative experiences and then transforming those
experiences into meaningful relationships.
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3. Social CRM Benefits
• Sales teams can now be equipped with significantly more relevant information about their
customers through an integrated view of their customers online conversations combined
with digital analytics (website, search, mobile, email etc) and existing CRM activity history.
• Marketing teams can now meet prospects at their point of need, connecting much earlier in
the buying process with real-time listening and monitoring of online conversations.
Marketers can also gain a greater insight into the behaviour, sentiment and effectiveness of
their marketing and communication efforts which in turn can help them define and refine
their creative, messages and channels.
• Product development teams can engage and collaborate directly with customers throughout
the development phases from the simple generation of ideas through to design, prototyping
and testing which can build significant advocacy and positive word of mouth. Companies like
Dell actually encourage, facilitate and solicit new product ideas directly from their customers
and ask other customers to rate these ideas. Ducati designs and develops motorcycles in
collaboration with its customers and fans via forums, communities, contests and polls.
• Customer service teams are now empowered to provide a memorable service by proactively
responding to customers on the customers terms, equipped with an integrated view of their
entire interaction, engagement and conversation history.
• Community and social media teams are provided with context for their outreach and
engagement efforts.
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4. How does Social CRM work?
• Social CRM is achieved through the integration of digital analytics (web, email, mobile,
search, video etc), social media / conversational analytics and other CRM relationship
management analytics to determine and articulate social media ROI. *For example Radian6
with WebTrends and SalesForceCRM.
• Marketing, community, social media, customer service and sales teams can now map their
word of mouth or social media initiatives directly to success events (customer navigates to
fulfil a need – click on a video, click on click to chat, download whitepaper etc) and end
actions (customer fulfils a need – register for event, downloads, subscribes to newsletter,
makes purchase) on a website or other digital channels. They can then view a customers
online activity and performance through the lens of social media.
• Organisations will be able to:
– Compare which types of social media and communities are most effective in generating positive
word of mouth, resulting in desired actions on your website or other digital channels
– Measure the direct benefits of customer advocacy and quantify the value of engaging customers and
influencers online and through digital channels
– Calculate the ROI of content marketing and outreach efforts by connecting associated social media
conversations to website traffic, downloads, conversion or sale or other desired actions.
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5. Social CRM More Broadly
I believe that Social CRM and traditional CRM should be called Individual Lifecycle
Marketing (ILM) and these disciplines should be closely associated with Customer
Experience Management.
The world has now shifted from an era of information asymmetry to a new era of
information democracy. In the era of information asymmetry customers were mainly
educated by companies and organisations, their solution providers, partners, retailers,
analysts and the media. These companies and organisations were able to tightly control the
information and image about themselves, their products, brands and services as the
channels were simply broadcasting the marketing monologue. Marketing was command
and control.
But in todays era of information democracy customers can educate themselves over the
Internet and digital channels, through their connections in social networks, blogs, micro
blogs, discussion forums, chat and much more. Marketing is now a dialogue.
Prospective customers can now talk with existing customers and customers are now so well
educated that the influence from traditional sales, advertising and marketing has become
more negligible.
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6. We have seen the rise of information democracy
From information asymmetry...
• Information was scarce
• Customers were ill-informed
• Exchanges were monologues
• Marketing was “command-and-control”
… To information democracy
• Information is ubiquitous
• Customers are well-informed
• Exchanges are conversations
• Marketing is “connect-and-collaborate”
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7. Why Social CRM?
• Traditional CRM - typically a one dimensional corporate interaction that
provides processes, services and technology to customer facing departments
like sales, marketing and customer service is no longer a viable discipline.
• Customer expectations and behaviour have fundamentally shifted as the
world moved from the era of information asymmetry to information
democracy with the advent of the Internet and other digital channels.
• Marketers must recognise that there is now an active participant ecosystem
which provides empowered customers - who are interested in making their
own choices – the ability to interact with organisations when and how they
choose.
• Conversely, customers are now more accessible than ever before and
companies are able to connect and provide – if they so choose – a remarkable
and more personable customer experience by listening to their customers and
reaching out to them through online and digital channels.
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8. The Marketing Funnel
Isn’t Linear
(hell, it’s not even a funnel)
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9. Traditional Marketing Models Fail to Model Complex Buying Paths
Traditionally, marketers modeled customers’ decisions as they progressed from awareness through consideration, preference,
action, and loyalty — through what is called the marketing funnel. The marketer’s job was to move people from the large end
down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it:
Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel
because:
• Complexity reigns in the middle of the funnel.
• The most valuable customer isn’t necessarily someone who buys a lot.
• Traditional media channels are weakening.
• Consumers force brand transparency.
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10. Traditional Marketing Models Fail to Model Complex Buying Paths
• Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that
a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But,
in between, other factors such as recommendations from friends or family, product reviews, and
competitive alternatives described by peers influence individuals. The funnel’s consideration,
preference, and action stages ignore these forces that marketers don’t control. Rather than a clean
linear path, the real process looks more like a complex network of detours, back alleys, alternate
entry and exit points, external influences, and alternative resources.
• The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era
in which peers influence each other as much as companies do, good customers can’t be identified
solely by their purchases. Companies also need to track individuals who influence others to buy. For
example, a customer who buys very little from you but always rates and reviews what she buys can
be just as valuable as someone who buys a lot — her reviews might influence 100 other people to
buy your product. Tracking only transactions and loyalty at the end of the funnel misses this
significant element of influence.
• Traditional media channels are weakening. Marketers continue to use mainstream media
messages to move consumers into a consideration frame of mind. But passive consumption of
media is waning. Individuals dismiss or ignore marketing messages in lieu of information available
from an ever-increasing number of resources, such as product review sites, message boards, and
online video.
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11. Today’s Complex Buying Paths
Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique
visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But
traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or
capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or
discussion forums, or the likelihood to recommend to a friend.
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12. Social media – The conversation prism
You must understand the
dynamics of conversations and
how and where they transpire.
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13. Engagement: A New Perspective on Marketing
If the funnel no longer accurately reflects what marketers can influence, why do they still cling to it? Because they can measure
it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of course, there are no useful
alternatives.
We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement —
engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness
and loyalty, and the fuzzy areas in the middle best characterized by social media.
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14. Marketing Needs to Shift Focus from Low Value Broadcast
Campaigns to High-Value Timely & Relevant Programs
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15. Traditional Marketing Approach
Good at:
– Helping you better target your
marketing
– Predicting response rates
– Optimizing spend by reducing
marketing waste
– Understanding buying modalities
Not so good at:
– Answering the “When” question
– Lending itself to automation
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16. Real-Time Marketing Approach
Good at:
– Identifying new sales opportunities and
changes in behavior
– Immediately triggering a marketing
response
– Building program equity through
automation
Not so good at:
– Understanding the entire customer context
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17. No Shrugging Shoulders: Move More Marketing Real-Time
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18. Social CRM – limited examples*
Microsoft Dynamics CRM
*I say these are limited examples because they only offer 2 dimensions of Social CRM
– social media + CRM and miss the integration of web analytics / website behaviour.
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19. Social CRM – limited examples*
Salesforce CRM – Social CRM Tools Application
*I say these are limited examples because they only offer 2 dimensions of Social CRM
– social media + CRM and miss the integration of web analytics / website behaviour.
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20. Social CRM – limited examples*
Salesforce CRM – deeper and broader overview with case studies
*I say these are limited examples because they only offer 2 dimensions of Social CRM
– social media + CRM and miss the integration of web analytics / website behaviour.
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21. Barriers to Effective Social CRM
My own experience:
• The single greatest barrier I come across in my professional life is a lack of understanding and experience
with CRM, Social Media and digital analytics and then the technological barriers.
• I also see organisational barriers with far too many organisations placing analytics within a CIO’s portfolio
of responsibilities and not where it should be which is marketing.
• But when I do see it in marketing, the marketers largely have no knowledge or experience with technology
and often get talked into the wrong tools, technologies or platforms or very costly and under-defined
integration projects which often fail.
Here are some critical insights from the Econsultancy ‘CRM 2.0 Report 2009’.
The main factors holding back most companies are:
• The inability to link web activity to a specific individual customer
• The lack of integration between different databases
• Data limitations and lack of relevant information/actionable data from web analytics packages
• Lack of time and resource to understand and analyse the data
• Lack of skills and knowledge to understand the data
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22. Barriers to Effective Social CRM
Other report highlights:
• Companies were asked to what extent they had implemented attributes of a CRM 2.0 strategy within their
organisation. A third of companies (34%) say that they definitely (i.e. “very much so”) put their customers
at the heart of their decision-making, while half (49%) say that this is only “somewhat” true for their
organisation.
• Email platforms (66%), web servers (64%) and online surveys (63%) are the most common sources for data
collection relating to the online channel.
• In terms of how online data is collected, web analytics tagging is overwhelmingly the most commonly used
approach, adopted by 87% of company respondents. On-site search data (49%), and traditional log
analysis (42%) are the next most frequently used methods for collecting data.
• The majority of companies collect data related to geography (80%), the type of content viewed (74%), and
transactional data (66%), including frequency (70%) and recency (67%) of purchase.
• The vast majority of companies surveyed say they have a central repository for storing customer data
(70%).
• Only a fifth of companies (20%) say that they are definitely able to link data from the online channel with
back office systems, compared to 45% who report that they are somewhat able to do this. However, 28%
of organisations do not have the capability to link the online channel to their internal back office systems.
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23. List of Companies Providing Social CRM Offerings
Here is a great online list and categorisation of companies offering Social CRM
solutions from Jeremiah Owyang who is a leading voice in the digital strategy space
(he is currently a Partner, Customer Strategy with the Altimeter Group and he is an ex
Senior Analyst at Forrester):
List of Companies Providing Social CRM Offerings
December 8th, 2009
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24. Social CRM – more reading
Here are some other resources about Social CRM which you might find useful:
The World Changed while CRM slept (Social CRM Manifesto)
Using Social Software to Reinvent the Customer Relationship
Social CRM: The Conversations
The Year of the Shift to Enterprise 2.0
Finding Social CRM Vendors don’t Walk the Talk
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25. About Martin
Martin is currently leading Digital Marketing for IBM and from 2005 to late 2009 he was the Head of Digital
Marketing at Microsoft defining, developing and executing Microsoft’s B2C and B2B global digital marketing and
social influence marketing strategies & disciplines. Martin is also the Producer of the critically acclaimed and
award winning The Battle of Long Tan documentary
Prior to Microsoft, Martin successfully led and grew the ecommerce division of a large Australian media &
entertainment company from less than AUD$22 million in annual sales to more $AUD700 million in annual sales.
Martin has worked in senior marketing roles across radio, film, music, games, entertainment and the technology
industries for companies such as News Corporation, Village Roadshow / PBL, Austereo, Telstra, BMG
(Bertelsmann), Sydney 2000 Olympics, Tabcorp & Microsoft. He specialises in B2C & B2B digital & traditional
marketing, social influence marketing, social CRM, search engine marketing and online analytics. Martin has also
advised organisations such as Australian Rugby Union, Cricket Australia, UNHCR, film distributors, games
publishers, media and government on how to engage with consumers, commercially exploit their content and
enhance their digital marketing capability & strategies.
In parallel to Martin’s professional marketing career, he established Red Dune Films in early 2004 and acquired
the film, documentary & story rights to the Battle of Long Tan from the seven Australian Long Tan combat
commanders. In 2006 he produced the ASTRA award winning & TV Week Logie award nominated Battle of Long
Tan documentary for The History Channel (FOXTEL) which was narrated by Sam Worthington (Terminator
Salvation, Avatar & Clash of The Titans).
Born In Melbourne but now living in Sydney, Martin originally began his career serving with Australian Army
Special Forces - 2 Commando Company, 1st Commando Regiment and then studying innovation at Swinburne
University earning a Master’s Degree and Graduate Diploma in Entrepreneurship and Innovation.

26. Thank you!
twitter.com/martinwalsh
Sources: Radian6, Trucast, WebTrends, Responsys, Omniture, CRM 2.0 wiki, Econsultancy, Forrester,
Brent Leary, Brian Solis
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