Success and failure in the time of social

Michael KrigsmanAsuret, Inc.617‐905‐[email protected]: @mkrigsman

Esteban KolskythinkJar913‐256‐[email protected]: @ekolsky

#crm #scrm #itfail

Success and Failure in the Time of Social

“Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It is the company's programmatic response to the customer's control of the conversation.”

  Paul Greenberg

What is Social CRM?

What is Traditional CRM?Definition of CRM (from Mitch Lieberman): Core contact management

Name, address, phone, email

Place to store transactions and history Orders, invoices, issues, communications

Place to manage future business/pipeline Prospects, Leads, Opportunities, Campaigns

Key Differences Exist…Traditional CRM Social CRM

Operational Relationship-based

Controlling the customer Customer is in control

Hierarchical Collaborative

The more things change, the more they stay the same History repeats itself Social CRM builds on traditional, operational CRM

Failure persists and lessons must be learned Examining the past helps explain and predict the future

Plus ça change, plus c'est la même chose

CRM

Social CRM

Understanding CRM failure

.

Traditional CRM failure rates Gartner 2001: 50% Butler Group 2002: 70% Selling Power, CSO Forum 2002: 69.3% AMR Research 2005: 18% AMR Research 2006: 31% AMR Research 2007: 29% Forrester Research 2009: 47%

Failures persist despite millions invested in prevention. Why?

It’s easy to ignorewarning signs

© Copyright 2010 Asuret Inc. All rights reserved.

CRM Success EnvironmentPeople and project – not technology

© Copyright 2010 Asuret Inc. All rights reserved.

Devil’s Triangle

Dysfunctionalindustry structure creates

overlapping andconflicting agendas

Devil’s TriangleConflicts of interest are embedded in the enterprise software industry (including CRM) 

Confused buyersSilos and internal disputes

Wacky system integratorsCustomer success vs.

consulting revenue

Schizophrenic software vendorsLoyalties split between

customers and integrators

People talk aboutstopping CRM failure

Talkischeap

And creates…Train wrecks of business disruption and waste

Social CRM is Different

Mostly, because as we evolve…

…this does not work anymore.

Social media is about conversation…

...listening carefully...

…engaging…

…and collaborating together.

Transition from operational to engaged metrics Need to change measurement, incorporate Social KPI Goals, objectives are still CRM‐driven, but accommodate Social x

Social projects require engaged conversation Lack of engagement drives other problems Difficult to measure “Return on Engagement”

Disengaged companies do not create trust Trust creates long‐term loyalty, return business Trust does not facilitate success; traditional failure points remain

Social business means evolution Openness, transparency, trust, conversations Not mandatory, but desirable

Failure: Poor engagement with customers

Social CRM success environment

Engagement

Conversation Collaboration

Feedback

Brand EquityTransparency

© Copyright 2010 Asuret Inc. All rights reserved.

Examples of Social CRM success MySpace Faced with failing customer service, rebuilt based on communities Recognized that listening to customers is mission critical

Nike Nike+ built a community for sharing data and info, create buzz Flexible on goals and plans essential

Starbucks Several ongoing projects aimed to spread brand, build loyalty Coordination among stakeholders critical to success

Levi’s Using multiple channels to leverage “ambassadors” (advocates) Bridging gap between social culture and social technology was key

Achieving SCRM success

Is easier saidthan done

Key Lessons Engage, internally and externally

Gather feedback and opinions Listen, learn, grow

Keep goals in mind Kumbaya feels good but doesn’t further business People don’t want relationships, they want engaged commitment

Social is about people Not about technology Not about processes Not about measurement (but business‐oriented metrics are important)

Don’t Replace CRM, Extend it with Social Stand‐alone, siloed Social CRM means failure before starting Add social objectives, goals, needs, and wants to CRM

All slides © Copyright 2009 Asuret Inc. and thinkjar LLC. All rights reserved.

For more information contact:

Michael Krigsman, CEOAsuret Inc.Email: [email protected]: http://asuret.comBlog: http://blogs.zdnet.com/projectfailuresTwitter: http://twitter.com/mkrigsman+ 1 (617) 905‐5950

Esteban KolskythinkJarEmail: [email protected]: http://www.estebankolsky.com/Twitter: http://twitter.com/ekolsky+1 (913) 256‐5759