Social CRMCustomer Service Goes Social

Mark PuddifootInformation Systems Management

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

Marketing

Sales

Service & Support

Customer

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

Traditional to Social CRM

Company

Customer

Customer

Customer

Customer

Traditional CRMThe Company has control over its relationships with their customers.

Social CRMThe control of the relationship switches to the customer. Business have limited influence of customer to customer communications

Competitor

Partner

Customer Customer

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).

Customer Service goes SocialContinuum of helpfulness (Coyle et al, 2012)

Random acts of kindness via microblogging platforms

Simple acknowledgement of 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’

@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

Self Service(Community

)

Social CRM Overview

Social CRM

Customer Service

Target MarketingIdea

Generation

Co-creation

Events Promotio

n

RecruitmentSales

Customer Research

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

Woodcock, N., Green, A., Starkey, M. (2011, February 9th). Social CRM as a business strategy.Journal of Database Marketing & Customer Strategy Management, Vol. 18 (No.1), p50-64 Retrieved November 6th, 2012 from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=52f1d639-d531-42e4-b923-a843d293b281%40sessionmgr104&vid=2&hid=105

Baird, 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.pdf

Coyle, J, R., & Smith, T., & Platt, G. (2012). “I’m here to help”: How companiesmicroblog responses to consumer problems influence brand perceptions, Journal of Research in Interactive Marketing, 6(1). Retrieved December 17, 2012 from http://www.emeraldinsight.com/journals.htm?issn=2040-7122&volume=6&issue=1&articleid=17035867&show=html

http://www.digett.com/2011/01/11/klm-surprise-how-little-research-earned-1000000-impressions-twitter

http://socialtimes.com/klm-twitter-response_b78650

References