Social CRM

Social CRM

A call for reviewing current CRM Strategy, Processes and Mindsetthroughout companies

Fabio CiprianiNovember-2008

? !

Concept, Benefits and Approach to adopt

© 2008, Fabio Cipriani. Some rights reserved

It all started with the web 2.0 revolution and its 4C’s

According to Wikipedia (Nov/2008) - Web 2.0 is a term describing changing trends in the use of World Wide Web technology and web design that aims to enhance creativity, secure information sharing, collaboration and functionality of the web.

Web 2.0 is enabling:

•Collaboration

•Community creation

•Conversation

•Creativity

Image source:http://web2.socialcomputingmagazine.com/all_we_got_was_web_10_when_tim_bernerslee_actually_gave_us_w.htm


Being connected, customers realized that they could ask more from companies and share opinions about products and services

Web 2.0 stimulated fundamental changes in consumer behavior

Interactions between customer and brands starting earlier and never ending

New behavior patterns demand a new strategy, better segmentation, new channels and targeted messages and review of current customer facing business processes


New customer relationship means more than just mere on demand attention or mass customized products and services

Web 2.0 provoked an expansion of the R in the CRM acronym

Company / CustomerCompany / PartnerCompany / CompetitorCompany / CompanyCustomer / PartnerCustomer / CompetitorCustomer / CustomerPartner / Competitor


Technology

Lets take a look at the fundamental changes that Social CRM is introducing to the current, traditional CRM in terms of…

Landscape Channels Processes

Mindset

Your company

Competitor Supplier / Partner

Customer Customer

CustomerCustomer

Customer Customer

Customer

Customer Customer

Customer Customer

Customer Customer

• Phone• Fax• Email• Service• Letters• Personal contact• Company’s website• SMS• Instant Messenger• Chat• Media


• Blogs

+

• Social Bookmarking

• Microblogs

• RSS

• Wikis

• Social Networks

• Widgets

• Podcast

• Video sharing

• Forums

• Wish lists

• Price comparison website

• Reviews and ratings in retail sites

• Photo sharing

• Slides sharing

• Auction website


Evolution of the CRM landscape

• Focus on individual relationship (company to customer, company to partner, etc.)

• Limited view of the customer and his community preferences, habits, etc.

• Targeted messages generate value

Your company


Customer Customer

CustomerCustomer

Customer Customer

Customer

Your company


Customer Customer

CustomerCustomer

Customer Customer

Customer

Customer Customer

Customer Customer

Customer Customer

• Focus on collaborative relationship (engaging a more complex relationship network)

• Multiple connections allow better understanding of the customer and his community

• Conversation generates value

CRM 1.0 CRM 2.0


Evolution of Customer Touch Points

• Single view of the customer based on the interactions history, customer profile data residing in the company’s base and data integration with internal systems

• Company owns the data but it is limited to previous interactions



• Blogs

+

• Single view of the customer is far more complex to achieve. Besides internal information, the company must rely on external information such as customer profiles in social networks and his behavior when participating in a community.

• Customer and other web 2.0 sites own part of the precious data

• Social Bookmarking

• Microblogs

• RSS• Wikis

• Social Networks

• Widgets

• Podcast

• Video sharing

• Forums

• Wish lists

• Price comparison website

• Reviews and ratings in retail sites

• Photo sharing

• Slides sharing

• Auction website

CRM 1.0 CRM 2.0


Evolution of Business Processes Modeling

• Customer processes developed from the company standpoint (customer life cycle for the company)

• Process centric – adapt and optimize processes to support better customer interaction

• Focused on CRM processes

• Company processes developed from the customer standpoint (company life cycle for the customer)

• Conversation centric – include the conversation factor to establish brand community, enable idea capturing and better segmentation

• Focused on the evolution of CRM processes and resulting impacts in the value chain

CRM 1.0 CRM 2.0

Establishing need

Experience

Sha

ring

impr

essi

ons

Decision

Marketing Sales Customer Service

Support processes

Operation processesValue

Exp

ansi

on

Targeting

Retention

Acquisition

Exp

ansi

on

Targeting

Retention

Acquisition


Evolution of Organizational Mindset

• Innovation comes from one specialized source within the company (innovation group)

• Frontline employees communicate targeted messages for transactional operations

• Innovation is gathered from all employees as they are closely connected to the final customer and to each other via internal web 2.0 tools. Customers are in the center of the innovation cycle.

• Frontline and non frontline employees engage conversations including new customers in the context and rerouting conversations. New set of employee skills needed.

!InteractionConversationContributionTransaction

Feedback

Employee Customer Employees Customers

CRM 1.0 CRM 2.0


Evolution of Technology

• CRM Solutions focused in automating and supporting internal business processes

• CRM Solutions focused in community creation internal and externally

Process Support

Account ManagementContact ManagementActivity Management

Lead / Opp ManagementCampaign Management

Sales ManagementService Management…

Conversation tools

Monitoring / Interconnecting tools

RSS

Blogs

Wikis

Social Networks

Widgets

Forums

Podcast

Brand monitoringservices

Datamining

APIsOpen Id

CustomerOwnedData

Cloud Computing

CRM 1.0 CRM 2.0


Bottom line

• Social CRM does not replace traditional CRM. It extends current CRM 1.0 capabilities to engage conversations with customers and the market,

• Social CRM humanize the company so the customer can see it as a trusted peer (customers trust people like themselves),

• Social CRM puts the customer in the core of the company’s strategy. It affects thoroughly operations, its value chain and organizational structure and culture,

• Social CRM introduces new value drivers into the company’s strategy thanks to customers engaged with the brand,

• Social CRM needs a new organizational mindset supported by web 2.0 empowered employees. By connecting employees to themselves and to customers, the Social CRM should enable closed-loop employee recognition based on individual results.


Putting Social CRM to work: Understand Social Influence in CRM Building Blocks and transform it...

Strategy

Operations

Organization

The Social Influence changes the traditional CRM building blocks and requires companies to work towards a Social CRM concept composed by Social Strategy, Social Operations and Social Organization


To support this transformation, go deeper in the ‘Company life cycle’ from the customer point of view…

Establishing needConsumption needs

Need by influence

Buying

PayingExperience

Searching

SelectingDecision

Comparing

SharingSharing impressions

Deciding

Receiving

Using

Social web improves our sense of control and makes us more sensible to ads and willing to participate. This is an open door to understand and establish customer needsBy sharing experiences, people connect and influence each other. Online reviews can be more important than a recommendation from a friend. Call for improved analytics

Besides traditional price comparison via specialized websites, the prospect customer can now form groups to bargain prices thanks to some specific web 2.0 sites

Paypal enabled new ways for paying for products and receiving from customers, but new social networks allows you to lend / borrow money from / to multiple users

Customer is now empowered with powerful search tools capable of bring back text, pictures, music, video and any other digital content. Long tail economics happen hereSearch results can be frightening. Organization of information is now owned by the user via tags, categories and links. This is new taxonomy is called ‘folksonomy’

Based on previous experiences and other customer descriptions in social networks, blogs, and so on, the customer draws a conclusion about how satisfied he is Customers share their experience in virtual communities and other reviewing tools. It can consist of improvement suggestions, faults description or mere opinions

Prospect customers can find plenty of opinions in multiple places or even ask online about your product to compare and finally decide. Connection is seamless and easy

Better Supply Chain overview by connecting companies and external parties. CPFR improvement(Collaborative Planning, Forecasting, and Replenishment)

Customer support is now offered via web 2.0 channels as well. Some virtual communities allow users to support each other using a product or service. Lowering CS costs

Com

pany

Life

Cyc

le

Customer behavior


...and apply findings into your current CRM foundations following a consistent roadmap.

Social Strategy

Social Operations

Social Organization

ImplementationStrategy

Redesign Building Blocks

Design and Develop tools

Monitor and Adapt

• Understand your public and current customer behavior

• Decide how you will engage with the market (monitor buzz, react to comments, supply social platform, etc.)

• Find out which tools will be deployed

• Build a business case

• Review current CRM building blocks (as is)

• Realign Social CRM Strategy with current CRM Strategy (touch points, segmentation, customer value, etc.)

• Review Processes to operate Social CRM

• Establish Social CRM mindset throughout the company

• Design and develop tools which will support the company in engaging with Social Customers

• Train employees and close the recognition and reward loop

• Measure results and adapt current Social CRM to meet changes in customer needs and/or market dynamics


Some foreseen benefits of Social CRM

Raise Marketing ROI thanks to better targeting, better product solution, customer experience and word-of-mouth.

Gain insights to explore new market segments and improve marketing effectiveness

Identify new business opportunities and improve cross/up-sell abilities through increasing contact with existing and potential customers

Cut sales commissions costs by building community around the brand

Increase R&D capabilities and innovation through tapping into the collective intelligence of your target audience

Increase customer loyalty by promoting transparent dialogue and improving employee/customer interaction efficiency

Decrease customer service costs through self-helping communities


This presentation has a sequel available on SlideShare.net

Concept Comparison with traditional CRM Benefits Approach for adoption How to put it to work

Why Social CRM? Functional Architecture Flow and Value of Interactions What are CRM vendors doing to promote Social experience Pre-requisites and business questions

This is what you have seen:

http://www.slideshare.net/fhcipriani/social-crm-functional-architecture-and-interactions-flow


Except where otherwise noted, this work is licensed underhttp://creativecommons.org/licenses/by-sa/3.0/

About me...

Fabio Cipriani• Author:

– “Corporate Blogging” – First book about web 2.0 in Brazil – 2nd edition released in 2008.

– Brand new title to be released 1st quarter of 2010 approaching Social Strategy and Social Media adoption paradox

• Academic Background– Electronics Engineer and Master of Science in

Wireless Systems– Post-Laurea in Economy and Management of

Small/Medium Businesses

• Project experiences– Customer & Market Strategy developments

and CRM implementations in Latin America and Europe

– More than 8 years working as Management Consultant for companies from multiple industries such as Consumer Business, Telecom, Technology and Manufacturing

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