January 10, 2011
Social Customer Relationship Management is a hot topic at the moment. It has been claimed by many that it will transform the way marketers work and it seems only a matter of time before it forms a fundamental part of all marketing strategies.
What is Social CRM?
Let’s deal with the most fundamental question first – what exactly is Social Customer Relationship Management (CRM)?
Put most simply, Social CRM is still about CRM (the system for managing customer relationships through the collection of customer data in order to successfully target them) but social media has changed this process in a very significant way – from being one way communication to a focus on relevant and tailored messaging.
Traditional CRM has allowed businesses to gather data about the customer and track customer transactions. However, it provides only one way communication, with customer service, sales and marketing pushing messages out to the customer. Social CRM has completely transformed this relationship between brand and customer. The client is now king and must be the focal point of all activity. This means that instead of sales and marketing dictating messages, Social CRM is a collaborative process – a combination of marketing/PR, sales and customer service coupled with advocacy and customer experience.
This multilayered relationship makes use of a range of dynamic channels and places the customer experience at the heart of the brand. It’s a complex process – the ability to track conversations and engage with customers on social platforms requires 24 hour monitoring and is only useful if you have in place a flexible and adaptable strategy to ensure you are providing the best service possible.
Opportunities
The good news is that if you get it right the opportunities Social CRM presents are staggering. The unique benefits and insights it offers – understanding what people are saying about your brand, where they are saying it and engaging with them in conversation – explains why Social CRM is seen as such a powerful engine for change and building relationships with customers. Social media is changing the rules of customer engagement, providing brands with a comprehensive, personalised and real-time understanding of customers’ habits and preferences and how they interact within social spaces.
However, the point also needs to be reiterated that Social CRM doesn’t replace CRM, it simply alters how it is done. This means that for any business contemplating Social CRM it’s vital to have comprehensive CRM practices in place already. Coupled with this is the fact that for Social CRM to be effective you must be active in these social spaces so that you are in a position to track and report on anything tangible.
Indeed, with people increasingly consuming information through social channels and learning about products and brands through sites such as Facebook and Twitter, it is vital that companies are tracking what’s being said and being active in these social spaces. Brands must adapt to the needs of these social customers by developing a Social CRM strategy which outlines a clear path for success. The result will be more effective customer interaction and a greater bond between brand and consumer.
Customers have been given an influential voice and now expect brands to interact and engage with them. Brands have to be aware of this power social media has offered consumers and show that they are reacting accordingly. (Gap having to revert to their old logo after public outcry shows the power consumers’ voices have). Social CRM, then, is much more about engagement than management.
It is this engagement which is the game changer. Social CRM is unique because it is not simply about metrics but about understanding and creating personalised relationships. Conversation is at the heart of Social CRM and the reason it engenders real customer engagement. By putting the customer at the centre of your company’s strategy you create meaningful relationships, gain unique insights and boost brand perception.
Social CRM in practice
How can this work in practical terms? The travel crisis brought on by the snow recently is a perfect example. Airports such as Gatwick and train services such as Eurostar used social media platforms to respond directly to customers. Twitter in particular, as well as Q&As, was utilised to manage the crisis by answering customer enquiries and easing concerns about journeys. This real time reaction to an event shows how brands can engage with customers, creating a humanised view of the brand and turning negatives into positives.
By their very nature social media channels are very much customer service channels and with a well planned Social CRM strategy in place brands are perfectly positioned to engage with consumers at all stages of the Buying Cycle. Social CRM allows you to gather meaningful data and track key performance indicators for your business throughout the cycle. For example, you can track which platforms provide the most leads and measure which campaigns are offering the most opportunities.
This information will allow you to put a successful strategy in place for customer engagement. Interacting at key times within the Buying Cycle means you are able to maximise brand consideration and maintain a relationship with the customer post purchase.
As growth of social media continues, social networks and communities will increasingly influence CRM. It’s vital for brands to be part of this process and for consumers not just to rely on advice from their peers. The opportunity to develop a clear strategy to understand customers and prospective customers, engage with them in real time and create more intimate and enduring relationships is one that brands cannot miss out on. So, watch this space – or, rather, listen and engage with your customers.
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