Archive

Posts Tagged ‘SocialCRM’

Very Detailed Thoughts on Social CRM and the Value it Provides

June 14, 2010 3 comments

“Social CRM is based on the simple premise that you are able to interact with your customers based on their needs, not your rules. It is an extension of CRM, not a replacement, and among the important benefits is that it adds value back to the users and customers.  It is the one part of the social business strategy which addresses how companies need to adapt to the social customer and the expectations these customers have with respect to companies they do business with. With a focus on strategy, customer engagement and relationships, Social CRM moves beyond management of customers, transactions, and money.

Social CRM is a strategy first, but it will not be successful if it is not supported by people, processes and technology with defined goals and objectives. The way customers are interacting with companies and a companies’ brands is changing and this poses a challenge; a challenge of volume of new data, scale and speed.  Social customers are now in control of a significant part of the business ecosystem, not just as purchasers, but as influencers.  Individuals are influenced by friends, friends’ friends and friends’ friends’ friends. For Social CRM to be successful, and by extension the businesses who employ the strategy, we must recognize the power of social networks.”

A balanced approach is a critical success factor

We believe that one of the most important extensions that Social CRM adds to traditional CRM is the inclusion of a business strategy (maybe even a Social Business Strategy), specific to customer engagement and customer experience, beyond just an implementation strategy. Traditionally, CRM has been thought of as just a technology framework, thus Social CRM is often discussed as simply new tools on top of that framework. We work hard to build the case that Social CRM has value beyond simply social technology. Yes, social technology is a big big part in many instances, but it is more about how you, as an individual, and as a company, interpret information and communicate. If Social CRM goes the way of CRM and simply becomes a technology platform with bolt-on utilities and some new channels, I will personally be disappointed. I do not believe that is the way it is going.  Social CRM is not only about strategy either, it is about a balanced approach to modern business problems – modern problems are driven by modern customers, who are hyper-connected and smart (in other words, they started using the technology first).  The balance includes many many elements, and as an organization you should make active decisions on what to use and when to use it. Choosing not to do something is different from simply not doing it.

A Social Business will likely begin at the department, or even individual layer within an organization, the tools and technology will aid the executive office in adding cohesion to the strategy.  It would be preferable, moving forward, that the Social Business strategy would begin from the top with executive support and from the bottom with a willingness to try new things, working towards the middle, together. Social CRM and online communities might be different from the internal parts of the organization and their collaboration efforts, but as Social Business matures as a practice, the two concepts will continue to merge. Each organization will not need to completely rebuild (retool), but they will be able to build upon the solutions already in place and extend them to meet the demands placed by the consumer, partner or supplier. Important to both, crucial even, are the cultural issues which will likely arise due to a lack of understanding, a resistance to change and the earlier struggles which a more than likely to occur due to uncoordinated efforts to track the connection to revenue (Yes, in all this Social, business do still need to make $).

The Value of Social CRM to the Individual Employee

June 11, 2010 1 comment

I wrote a piece a couple weeks ago  where I referenced Laurence Buchanan’s piece “Measuring the ROI of Social CRM“, now, I am taking a look at it from a slightly different perspective, the value to the employee. How very ‘Inside-out’ of me, I know, but hang in for a moment, there is something here. My favorite quote from his post still stands, and sets the stage:

“The real question in my mind is not whether ROI is measurable or valid (it is), it’s whether ROI is the only metric worth evaluating? I would suggest that ROI as an isolated metric is not enough. In fact nothing like enough.”

Absolutely, ROI is NOT enough. There are lots of ways to look at return, how about employee empowerment? I have suggested myself, on the shoulders of many others that happy customers start with happy employees. Is it then a big leap to suggest that passionate employees might lead to passionate customers? If you are willing to make that leap, as I believe you should, then there is real value to the business!

Reap the rewards of a innovative and passionate organization!

Innovation can seldom, if ever, be measured in the time frame of one quarter. It is like watching your child grow, there in front of you every day, then suddenly, ‘wow, you grew’! If you encourage individual, or small team initiative, what your teams can and will do, if empowered to do it will surprise you. If you sponsor and enable, people within your organization to get closer to the customer through Social means, the payback (Return) will happen.

As an organization, you need to be flexible with regards to the return, flexible in what and when. I realize that some might take issue with the flexibility on return, but you might also be flexible on the cost part too – since people are the main cost, there are worthwhile, non-monetary rewards.

What are you doing to reward employees who take initiative?

I previously used the Twelpforce initiative by Best Buy to make my point. Are there others? There must be, what are yours. How do you reward the employees? For businesses of all sizes, employees with passion are a great asset. Allowing these impassioned employees to get close to and help customers get their jobs done builds stronger relationships, and dare I say leads towards loyalty. I had the chance to chat with the smart folks over at SpigIt a few weeks ago, and they have some great ideas on how to reward initiative from a ideation (sharing ideas) perspective, I bet many of the same concepts would work here.

I highlighted this sentiment with a post on ZDNet this past week, with the following ideas:

Innovation, the Kissing Cousin of Initiative
One path to solving this is to make, foster and push people to shine. Innovation is directly related to initiative, and you have everything right there in front of you. If you encourage and empower individuals, or small teams, the results can and will surprise you. Taking it a step further, to sponsor people within your organization, specifically to get closer to the customer through Social means, the value to each side of the equation will amaze you. The return on initiative will pay dividends well into the future, for both you, the employee and the customer.

How to get it done:

Tackling the hard problems Ask people within the organization to focus on their role in the customer experience, they have one, it might be obvious, or a stretch to figure it out. How can they improve that experience? What do they find frustrating? By taking initiative, focusing on, or even directly helping customers, employees will elevate their visibility, and gain personal satisfaction as well.

Taking a chance Do not make it taboo to take risks, calculated risks of course. Do not punish for initiative, or even failure. A Social Business needs passionate employees, ones who do not always wait for their boss. Yes, they must be willing to be accountable for their actions, and have sound business logic behind their ideas.

Voice of the Customer The hope is that as many people as possible are talking to customers as frequently as possible. Within an organization, you are always knowledgeable about your products and services. Add this knowledge along with something you learned about your customer and tell someone, become an advocate for the customer!

Create a Company of Entrepreneurs The best employees are self-starters. Giving them the freedom to do what it takes to get the job done. Using their best judgment in all situations enables them to express their individual creativity. By encouraging and supporting a culture of freedom and trust, employees will naturally assume a feeling of ownership – ownership in delivering a remarkable customer experience.

All initiatives need to be supported by a business case. It is possible to measure return by more than dollars, but cost has only one measure – or does it? As an organization, you need to be flexible with regards to the return, flexible in what and when. If employees are allowed to put a little bit of passion into their own work, the payback is going to be very powerful. They will become the new shiny object.

In a response to the post, Maria Ogneva, of Attensity360 suggested that “companies are starting to realize how important voice of customer is. However, most still fail to realize that voice of employee is just as important.” She also pointed out that barriers are a problem: “Putting red tape in employees’ way, making them feel stifled and unappreciated will definitely not result in any kind of passion or excitement.” What are you doing to make sure that your employees feel empowered?

The Value is still with Customers, but Looking Beyond is OK

I followed up a post written by Brian Solis yesterday, and shame on me, I am doing it again. But, today’s post was not really written by Brian, it was written by Paul Greenberg, not sure that makes it much better. Is this cheating? You know, writing a blog based on a blog, then following up that blog with other one. I happen to know Paul is in Europe for a couple weeks, so, I figured I would put my thoughts here. Brian is asking us to look beyond folks that we have a direct transactional history with, beyond just prospects.

I said yesterday that I believed SRM (Social Relationship Management) felt more like PR 2.0. Brian responded to my post, saying that we were not really talking about different things, but that he does not see SRM as PR 2.0. I am not yet convinced that it is a lot more, BUT I am willing to hold off pushing it too hard until I have a chance to talk with Brian (In real life, phone or some other traditional means like face to face even). I have and will maintain an open mind, willing to bend a bit, if needed. I am looking forward to the conversation

In today’s post Paul bridges the gap between SRM and Social CRM (potay-to v potah-to ) via the work of Dr. V. Kumar, Chairman of Georgia State University’s Marketing Department and the Executive Director of the Center for Excellence in Brand and Customer Management (CEBCM), what he calls CRV (Customer Referral Value). The idea is that you should maintain these relationships, as there is value in the referral, and we can measure it.

“CRV is a measure of advocacy and positive business value that an influencer brings. It fundamentally acknowledges the existence of the social customer that Social CRM deals with.”

To really build a well rounded picture of the impact of CRV, the introduction of one more TLA is required. I will be brief, but Paul does a more thorough job here, a post from August 2009. NPS (Net Promoter Score) is a large topic, which has issues all its own, and not something I am going to dive to deeply into today. Dr. Kumar, in his work actually expands/extends NPS to make it more meaningful and useful (ie, one question just is not going to cut it, sorry). Let me explain: NPS asks a customer one simple question “Do you intend to recommend this product or service to someone you know?”, while that question is interesting, the study shows little correlation with the really important question: “Did you actually recommend this product or service to someone you know”. For now, take my word for it, then feel free to read the article referenced.

They are still customers, or are they?

The studies done to date refer to customers, and struggle to put a stake in the ground on the actual value of influencers, who are not customers. That said, as Brian suggests, we need to look beyond the customers, or at least look within more closely.  While Customer Lifetime Value is a more direct measure of what a customer spends and their direct value to the bottom line, we need to look beyond these people and understand better those who are engaged, advocates and otherwise bullish on your products and services.  The extreme case here is that they are not actually a customer,  but there is value to the organization to have a relationship with this person.

Do you know who those people are? If you have an idea, do you actively manage the relationships, or are the relationships managed externally? In a response to his first post Brian makes an interesting (valuable interesting) statement:

“..how do you move something beyond the literal interpretation when the infrastructure (technology, process, and methodologies) works again much of what you’re attempting to implement?”

Do your current processes or technology prevent you from reaching this goal, if it is a goal? If so, what are you going to do about it?

Relationships need to have Meaning

Last week, I wrote a post where I was not very nice to an author who focused on data, and not trust as the ‘tie that binds’ regarding relationships. You can agree, or disagree, but the current thinking is that engagement builds trust, trust is the basis for a relationship and a relationship is the basis for…hmmm, for what? Why do I need a relationship? For one, a relationship is valuable if we want to have a drink, play golf, maybe even do some business together. That said, if one side, or the other is not gaining anything of value out of the relationship, then what is it worth? Value itself is an interesting word, as it is a totally perceived concept, meaning, what something is worth is based on the value I assign to it, no more, no less. Back to the relationship, it needs to be mutual, not one sided. OK, what is my point, where am I going and who cares!

Social Relationship Management is PR 2.0

I have read, and reread a series posts that bring up the topic of Social Relationship Management (SRM). The latest was written by Brian Solis, a brilliant strategist and professional, for whom I have a lot of respect:

“At a minimum, SRM focuses beyond the social customer and escalates the promise and potential of sCRM across an entire organization, not just customer service. Equally, SRM zooms in to evaluate the various stages of decision making and the channels and people that influence outcomes.”

I do not see eye-to-eye with Brian, I commented respectfully and he responded (I will get into details in a moment). I want to take a quick moment and highlight the importance of engaging. A willingness to respond and engage is critical to building your own trust. Thanks, Brian, I appreciate it. There were a few other posts which touched on the topic, and I find it frustrating that on such a topic the companies would not engage. There was one written by John Bell a strategist for Ogilvy. They call it Social IRM (Influencer Relationship Management). To write in a blog format about the importance of the way YOU believe relationships should be managed, yet do not respond, is well, NOT very social is it. Sounds rather like advertising, not being social; ‘I will broadcast my message, and it is what it is, no engagement’. How then could someone trust you to engage with their customers and/or influencers?

Back to the concepts of SRM, which at a conceptual level I do not disagree with, but it feels like the direction which Public Relations needs to go, not CRM (remember, Social CRM is an extension of CRM). What I do believe is that if you spend the time to cultivate a relationship, it should be easy to quickly understand how each side gains value from the relationship. Some are customers, some are prospect, influencers, partners, suppliers, etc.,…The focus should remain on understanding what the relationships brings, not simply the relationship itself. Do we need another TLA to define these activities? If an agency needs to help their clients to manage these people differently, then maybe. For the company, I do not think so, for the agency, maybe.

Understanding Jobs to be done is the Critical Element

If you are not focused on what the customers needs to do with your product, or the service you are offering, what is the value of the relationship? In his article, John Bell makes the following statement:

“But until we connect all that great data to the actual sales data for said customers, I don’t think its wise to label it ‘Social CRM.'”

I am not going down the path of the ROI debate, which is an important conversation to have. But it sounds like Ogilvy does not believe in tying the numbers to Sales data, so what exactly should it be tied to? Again, the label game is not the critical point here, the critical point is who are the customers and what are they trying to achieve? You can and should have relationships with recommenders, influencers and the like, but how are they helping you to understand the job the customer is trying to get done. Whether you call it Social CRM, SRM, Sales or Marketing is not the question, the relationship is not the answer either – the value exchange enabled by the relationship is the answer.

The following from Brian’s post is important, but I believe it needs to be extended:

“I believe at the heart of sCRM methodologies, the recognition that customers are only part of the new equation, sets the stage for long-term and advantageous change.”

The heart of Social CRM is the simple recognition that companies are going to focus on the needs of the customer, not their own rules. Customers are not only central to the theme, they are the heart and focus. If companies spend too much time and effort focusing on influencers they will take their ‘eye off the ball’ and lose focus. There are certain parts of the organization which need to focus on the influencers and decision makers, and it would of course be advantageous to have a developed understanding of these people, whether I would call that a relationship is open for interpretation.

The Value of Social CRM for Small Business – Take One

May 31, 2010 1 comment

I had the opportunity to speak on the Vermont Business Expo 777 panel last week,  to a full room of 80+ smart folks gathered to learn about Social Business. The panel covered a wide range of topics, the focus was on what it means to be a business, in this new age, call it the Social Web, or Web 2.0. The panelists, listed below all had great insights, from Social and  Mobile to Legal and from Cloud to Geo Location. My focus was on Social CRM and what that really means, specifically to a small/Vermont business. We each had 7 minutes, before a scoreboard buzzer (think NCAA basketball type buzzer) sounded.

The Highlights:

  • Social CRM is an extension of CRM, the biggest change is a Focus on your customers, not a focus on you
  • Organizations are not properly aligned, any Social CRM strategy must include strong guidelines for alignment (around the customer)
  • Social CRM is based on the principle that you will invite your customer into the ecosystem and interact with them based on their needs, not your rules.

For Departments:

  • Service and Support: Keep the ordinary, ordinary; Social includes public channels; include more personality in your interactions,
  • Sales: The value-add of you and your company’s expertise, not just your product are important, show your knowledge beyond just your product,
  • Marketing: Learn to listen, engage and create with your customers, highlight facts and value along with personality

Finally, Social CRM can and will go beyond technology. For small businesses, think about the clerks who work the check-out line, delivery personnel, finance who speak to customers about invoices. All these people represent your business and represent a Social Network.

The Panel included: Karen O’Niell, Gravel and Shea, Rachel Carter, Rachel Carter PR, John Burton, Network Performance Inc., Jessie Angus, Angus Media Services, Tom Jaros, Empower Mobility, Me, Comity Technology Advisors and Joe Mescher, http://www.joemescher.com/

A CRM Lesson Learned, from a Gardener

(Trying something different – this is a cross post from one done earlier this week on CRMOutsiders. The idea is to incorporate some feedback from comments on the post and discussions I have had to enhance the topic)

So, what exactly did I learn from my Gardener? (Gardener not Gartner) And, how in the world can I apply it to CRM, or further, a CRM implementation? In a nutshell, I learned that proper planning for application development, deployment and just many initiatives seems to be a lost art. This seems to ring especially true for Social Media initiatives.

Plant a $5 shrub in a $10 hole

When I am not in front of a computer screen, (which seems to be a little too often) I long to use some of the handy skills, which my dad taught me when I was young. Build it, fix it, rinse and repeat. About as close as I come is reading my monthly issue of Popular Mechanics, looking at all the cool things I should be doing, or getting some advice on topics such as gardening. The inspiration for this post is the May 2010 issue, page 126 (yes, I bet it is online somewhere). The simple statement, in bold above, “Plant a $5 shrub in a $10 hole” really just sunk in (bad pun, sorry). The small blurb goes on to say: “In other words, your extra labor will be repaid with vigorous trees and shrubs.”

I hope that you, the reader are able to make the leap. If the focus is too heavily skewed towards technology and not the planning, requirements gathering, analysis, design and then implementation – not too mention people, culture, process changes and role changes – then how can you expect success in deploying a new system of any kind? Spend the time, up front figuring out what you need to do in order to make the project a success.

Mark Tamis had this to say about the topic:

Not only is the problem not understanding the problem you are trying to solve, the problem is also in thinking that the technology will solve the problem. This is like trying to fit a square peg in a round hole. The shiny object may look nice, but if it doesn’t get your job done and lad to your desired outcome, why waste the time and the effort?

This is not only about something new

The article referenced above is not only about a new ‘hole’ for a new ‘plant’, it actually starts with a question about what to do if a plant does not seem to be doing well after a long hard winter. Hmmm, I wonder if I can get away with calling the economy we experienced during the past 2 years a ‘long hard winter’ – yeah, I think I can. So, in this scenario, do I just say ‘out with the old in with the new’? I am not only talking about CRM, I am talking about technology of nearly any type. Extending the metaphor just a little further, if I simply swap the plant, without checking the soil, making sure there is enough water, or proper drainage, putting in another plant will likely lead to the same end result.

When I shared these thoughts with Reem Bazrari from SugarCRM, she  offered the following as important to the conversation:

More importantly, the provider should sell its technology with that understanding as well:
1- Educate the customer on standard or industry process that would help them improve their business
2- Provide the technology with a ramp-on plan and explain how it will tie with those processes
3- Continuously monitor the customer’s feedback

Simply replacing technology with newer technology often seems like the easiest solution. But ask yourself, and your team, what is the real reason we need to do this? I have read from many highly respected sources, that technology is rarely the problem, it is properly preparing for the technology that is the problem. Again, I am not talking about net new here, I am talking about ‘rip and replace’ because of that new shiny object in the corner over there.

Social, brought to you today by the letter ‘C’

If Social CRM, Social Networking, Social Media or Social Business had the sponsor of a letter, it would be the letter ‘C‘. The reason however is not what you think, of course you need to be Customer Centric, but this post goes beyond that. This post aggregates and builds upon the work of others, who highlight this wonderful letter, as you should as well.

(note, this is my first post since starting Comity Technology Advisors)

Generation C (your customer, now or in the very near future)

Generation C – Cross-generation (source: Springwise and Paul Greenberg) Generation C spans from Boomers through Gen X and Gen Y right up to Millennial. From a customer perspective, this represents change, highlights peer influence and alters who I trust. Generation C is:

  • Content-driven – We are producers; blogs, text, images, audio and video, etc.,…
  • Connected – Phone, Email, Messaging, Twitter, Linkedin, Facebook, RSS
  • Creative – We are able to choose the form of Content that allows us to express our thoughts
  • Collaborative – We like working with Friends, Peers, Mentors, Partners…Oh, and Customers
  • Contextual – What we say, do and think is highly dependent upon where and when we are
  • Communicative – Sometimes without a filter, we say what we say

Organizations need to act, react or just prepare

In his book, (RE)(ORGANIZE) FOR RESILIENCE, Author Ranjay Gulati uses the following to describe the “resilience tool kit”. The book is a worthwhile read, an important theme is centered around why organizations are having trouble keeping up with the pace of change displayed by their customers. The following is my interpretation of the author’s “5 Cs”:

  • Coordination – The alignment of people, process and technology within the organization
  • Cooperation – Focus on breaking down silos, addressing cultural and behavioral issues
  • Clout – Decentralizing power and allowing front facing individuals to act
  • Capabilities – Education and training of all individuals to be, or become customer facing
  • Connections – Create internal social networks which extend outward to partners and customers alike

My own additions to the list

During the course of my reading, implementations, discussions and writing, there are few more which you might want to add to the list. These do not represent a strategy, maybe not even an objective or goal, but focusing your time and energy around what these points mean to you, is time well spent.

  • Conversation – Make sure you having conversations,  not one directional monologues
  • Co-Creation – Involve your customers in the process of creating value for each other
  • Consistent – The message and approach should be as similar as possible with all customers
  • Committed – Once you begin to involve the ecosystem, stick with it!
  • Community – The creation of place where your ecosystem feels comfortable enough to hang-out and chat
  • Cross-Channel – Engage with your customers when, where and how they want (and it may change mid-conversation)

Some words which require more thought

There are some words which begin with the letter ‘C‘ which are words to pay attention to, but be cautious about. I am not going to say they are right or wrong, they simply need some paying attention to, to make sure you are aware of their power.

  • Command – no matter what the goal, an approach will likely have unwanted consequences
  • Control – Just think through what it means to you and your organization, and be cautious
  • Conversion – Many people focus on this metric, what does it mean to you and at what cost
  • Convince – Work to create buyers, not convince people to buy your products or services
  • Change – The only constant is change – be ready for it

What would you like to add to the list? Did I leave anything out? (Aside from the most obvious, Customer of course)

Social CRM, Perspective Matters

April 25, 2010 3 comments

When you take a look at the picture below, what do you see? Do you see an older woman, or a younger woman? In case you have not seen this picture before, they are both there, trust me. OK, what is the relevance? The realization I have come to, and it is likely that others are there ahead of me, is that much (not all) of the debate regarding definitions – nit-picking words is simply due to our own myopic perspectives.

When an experienced marketer, social marketer, CMO or someone within traditional public relations looks at Social CRM, what do you/they see? I suspect, based on what I have been reading for the past year, is they see an old school system that is going to suck the life out of modern, cool, hip and social marketing efforts. When the more traditional information technologist, CIO, or 15 year CRM veteran looks at Social CRM and they see the young beauty – something that will finally breath life into what CRM was supposed to be 15 years ago – Customer Centric. There are a spectrum of perspectives, I chose only two, to illustrate my point. We need to bring these perspectives into alignment, and stop trying to prove we are right.

Know Your Audience and Lead them to Success

When someone tries to explain what Social CRM is, it often starts with a definition, followed by a talk about what it is, or does, surrounded by a few examples or case studies. Looking objectively at this, if the audience is mixed, then each person may leave the discussion with a very different idea of what exactly is Social CRM. The unfortunate truth is that within each organization there will be a bit of battle surrounding who should own this new “Social CRM” initiative. Before many people work to understand what is in it for their customers, they are likely going to ask “What is in it for me?”, sorry, tell me I am wrong. Friend and colleague Graham Hill wrote a post about 9 months ago: Who Should Own Social CRM? Graham suggests the following:

“In a business new to social CRM, this may be a disparate social network of individuals doing their own thing across the business. A self-organising group with no formal authority, but a lot of social authority. In a slightly more advanced business it might be a cross-functional team formed specifically to look at Social CRM and containing many of the earlier social network. Further on it might be a formal Social CRM Coordinator given the role, responsibility and authority to promote Social CRM across the business. In some organisations, it might even be the Chief Customer Officer (although organisations have a few hoops to jump through before they get that far!).”

Maybe you should figure out first what Social means to you

Another friend and colleague, Esteban Kolsky spoke about Social Business and specifically, he keyed in on the word ‘Social’.  You can find the full post here, but, my biggest takeaway is that we all need to figure out what Social means to our business, then we can figure out what Social CRM is and who should own it. My favorite line is “Social is not about Kumbayah”, ok, that is what it is not, but, what is it?:

“Social is about leveraging the customer willingness to work with us, as a business, to achieve better products, better services and have better relationships.  Social is about collaborating in a win-win environment where both customer and business achieve maximum value in each and every interaction, regardless of how it was planned and executed.”

This description does not force social efforts into one department. The ownership, in my opinion is by the business, for the business. We all need to be able to view the topics from other parts of the organization, as well as here in the blogosphere, other disciplines. What is your perspective? Have you been guilty of looking at this from only one perspective, and are willing to share?

Is Social CRM a house of cards?

April 7, 2010 9 comments

I am not simply going for shock value, I am asking a tough question where one of the possible answers is ‘yes’, and that scares me a bit. If we choose to ignore 20 years of knowledge, experience and best implementation practices, then we are setting ourselves to repeat the same mistakes that gave CRM a bad name. This pushes the answer towards ‘yes’, how can we push it towards ‘no’? Is this post an about face for me personally? No, I do not think so, call it a prequel – something I knew, felt and should have said a long time ago.

There are some great ideas, even some really awesome technology components that can make up the pieces of a solid Social CRM strategy. However, at the core, there needs to be a well architected, flexible CRM application that will serve as the foundation for the Social CRM strategy. There are certain things ‘the basic blocking and tackling’ if you will of CRM which cannot be ignored.

You cannot jump to Social CRM if you do not understand CRM

Without a proper foundation, adding more layers and more cards simply adds to the instability. Recent posts (and some not so recent) are well suited to help me describe my concerns. (They are listed at the bottom, to avoid hyperlink hypnosis). If we first look at Paul’s definition of CRM and then Social CRM it should be clear that Social CRM is an extension – by process, culture and/or technology– of CRM. The change was and is required due to the changing needs of the customer.

Since the customer changed, the companies also need to change. But, If you change the focus (who and how), it is very easy to forget the battle scars of CRM 1.0 implementations. As Esteban points out in his recent post, the ownership of the concepts of CRM have moved from one part of the organization to another. Because of this change, the institutional knowledge regarding what it means to build a holistic customer strategy may not be all there. Some is lost, or worse, some is being ignored.

Social CRM is not simply a set of CRM bolt-on modules

Getting past definitions and focusing on what it is, Michael Fauscette says it quite well: “CRM is a customer strategy and many companies have chosen to use SW [software] and technology as a part of that strategy. SCRM [Social CRM] just extends that customer strategy in a few ways.”

Again, I am not talking about definitions, I am talking about practice. Is technology a part of the extension? Yes, it probably is, but it will not work if you do not make people and process changes first (think attitude!). If you use technology as a part of your CRM strategy, then you will likely need technology to extend it to a Social CRM strategy. If you do not have a well organized technology strategy for CRM (meaning it is not simply email and spreadsheets) then adding new technology for Social CRM will NOT be effective.

The Process of Social CRM is dynamic

It is dynamic because where and how the conversations happen will change. Brian and others speak a bit about ‘changes in centricity’ – I am summarizing, but the sentiment should not be lost. Customer centric versus management centric; Conversation centric versus Process Centric – Centricity, Focus whatever the best name for it is, needs to evolve and meet your business need – what do your customers want. Regardless of what you call it, both sets of data are still important. Can anyone tell me that what I purchased, when I purchased it and my buying patterns have stopped being important? I know Brian was not going there, I am illustrating a point. Please read his post, it is important.

Jacob posted the Social CRM process, is it right I am not sure, actually it is probably wrong – hold on, I am not coming down on anyone! I applaud Jacob because anyone should be able to take his diagram and use it as a baseline model (not a best practice) and move the arrows, fill-in the boxes and make it work for your business. People, Process and all that… Jacob is spot on for highlighting process – look at what you have, and where ‘Social’ should fit into the company. Do not force Social in, just because it is cool.

Ok, maybe a little bit of shock value

If at least made you stop and think, I feel a bit better. I really like Social CRM. I enjoy thinking about, writing about, talking about and even well debating a bit. Here is my mea culpa, I have a CRM application, I use it everyday. To me, thinking of Social CRM as an evolutionary step, not revolutionary as assumed. My apologies. If this seems like a change of course, well the Blog does not have a title for a reason…

This list is not just a WordPress – blogs you might also like to read! These specific people, posts and comments on the posts influenced my own thoughts – what are yours?

Paul Greenberg’s – Traditional CRM v Social CRM: Is There a Difference
Esteban Kolsky’s – Why We Cannot Get CRM (and SCRM) Quite Right
Brian Vellmure’s – Traditional CRM vs Social CRM: Expanded
Michael Fauscette – What makes “CRM” Social
Bob Thompson – Can you do “Social CRM” w/out Social Media/Networks
Jacob Morgan – The Social CRM Process

6 Degrees of Social Interactions

March 26, 2010 5 comments

I penned a post yesterday, on the CRMOutsiders, blog titled Are all Interactions Social Interaction? The post was a little more sarcastic than my usual rants and I think it caught a few folks who do not know me a bit off guard. I start the post with the following:

“SugarCRM is holding its annual customer, developer and partner conference, April 12-14, in San Francisco. The venue is the cool Palace Hotel. It is going to be a great event, with some really great presenters, panelists, as well as an awesome evening event at the California Academy of Sciences.”

I went on further to suggest that I did a little bit of a ‘bait and switch’. I even posed a question to myself: “is what I did appropriate?” My idea was to draw people in with a topic intended to create some conversation, but was it really a marketing message in disguise? – not a very Social thing to do. The post was prompted by a question posed by Bob Thompson, the CEO of CustomerThink. The question is: “Can you do Social CRM without Social Media/Networks?” In order to answer that question, first the question of what determines if an interaction is a Social interaction needs to be answered.

Is every Interaction a Social Interaction?

The conclusion I reached, possibly prematurely, is “No” not every interaction is a Social Interaction.  The post did have some back and forth with people willing to share their thoughts. I may need to retract my conclusion, or at least alter it. It it not really binary, it is a continuum, and there are degrees of social. Phil Soffer, Vice President of Product Marketing at Lithium Technologies wrote a great post which I think gets to the heart of the matter. Phil suggests the following:

“a more rigorous definition of the forms that Social CRM interaction takes. I’m not talking about channels here: Facebook versus Twitter, or whatever. I’m talking more about norms and expectations that govern the interaction.”

Phil went on the discuss the Typology of Social CRM Sociability. I agree with the concept, and even some of the specifics. I would like add a bit to this and state the following, the intent of an interaction speaks much more to the Sociability than the channel used. I can broadcast a commercial on YouTube, do nothing but send spam links on Twitter just as easily as I can pick up the phone or send an email to a group of people – which is Social which is not?

The 6 Degrees of Social Interactions

Here are examples of the 6 Degrees of Social Interactions from the Customer perspective. Since this is a continuum, as you progress from 1-6, the characteristics suggest that the customer is becoming a Social Customer.

  1. I said what I am said, really not hoping for a response, just action – monologue
  2. I am talking, hoping for acknowledgment, not necessarily a response, but might be nice – venting
  3. We are talking, but the conversation is a bit one sided – skewed
  4. I am actively asking for information, will not be happy until I get it – social pressure
  5. We are engaged in a conversation and others may join in to push things forward – objective
  6. A community of conversations Many to Many – icing on the cake

Here are examples of the 6 Degrees of Social Interaction from the Business’s Perspective. Since this is a continuum, as you progress from 1-6, the characteristics suggest that the Business is becoming a Social Business.

  1. Here is my press release, look at me – broadcast
  2. Register and Download my whitepaper – broadcast with bait
  3. We are listening, but I am really waiting to talk – pretending
  4. We are blogging and hoping the message makes it out untarnished – comment, nicely please
  5. The Facebook Fanpage is set up, I hope everyone is nice – <fingers crossed>
  6. A community of conversations Many to Many – objective

Is 6 Degrees enough? Probably not, the title sounded cool though. This is analog, not digital. How does this play into Social CRM and answering Bob’s question? Share your thoughts, mine are still gelling and I will share my thoughts in my next post. The short answer is yes, Social CRM can be done without Social Media/Networks, because Social CRM is as much about culture and other soft – but important – change management ideas.