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