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CRM at the Speed of Light: SoCiaL CRM StRategieS, tooLS, and teChniqueS foR engaging YouR CuStoMeRS
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This is a big picture chapter I need to set some expectations here Don t expect tons of granularity this is the overview of the elements of strategy and a case study that is meaningful The details will be in s 18 through 21, so bear with me Please And thank you
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At its broadest, a Social CRM strategy is one focused around customer engagement It differs from more traditional CRM strategies because the primary concern is not managing relationships that are based on understanding a customer s transaction history and behavior, but instead is founded on treating the customer as a partner who will, in return for benefits of some kind, provide value to your company CRM 10 strategy was operational and tactical but was at its core a strategy for actually managing corporate transactions with customers and at its best a strategy for managing the interactions with customers The software associated with it was based on process efficiencies and interaction effectiveness Pretty much the best you could expect from it was a greater knowledge of a customer via the 360-degree view of the single customer which still is in woeful short supply at the companies that claimed CRM in their portfolios A McKinsey study placed it at 38 percent On the other hand, the February 2009 Speed Trap/ Econsultancy Social CRM study (a slideshow summary is available at wwwslidesharenet/econsultancy/speedtrap-crm-20-survey) found that 70 percent of their respondents had at least centralized storage for customer data which isn t the same as a single customer record but at least shows some promise of progress But that was CRM 10 Social CRM is widely recognized as a strategy for encouraging the customer to participate with your company in making decisions that affect the particular customer What it does is take CRM 10 and extend it far beyond its original bounds Social CRM as a strategy (less so as a technology) is actually maturing as more and more companies are adopting at least some facets of it But to do it successfully, the implications need to be clearly recognized by the companies embarking on developing the strategy For example, it assumes the existence of a social customer who controls their own interactions with other customers and with the company, which CRM 10 strategy did not In fact, the fundamental idea behind Social CRM strategy is that the customer will engage with the company in a way that provides mutually beneficial value, rather than a
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strategy for the optimal extraction of value from a customer in exchange for, at best, a delightful experience Not that there s anything wrong with that it just limits what the customer and the company can do In a Social CRM strategy, the company s skin in the game is to be honest and straightforward with the customer (authenticity is the buzzword du jour), to be open with the customer and reveal more of the inner workings of the company to the customer so that they have the information they need to make intelligent decisions on how they are going to interact with the company in the context of their personal agenda This doesn t mean giving away every secret the company has Transparency doesn t mean slutty behavior In the electronic chapter called Honestly, I Want This to Be on Privacy, but if I Wrote It, I d Have to Blog About You, there ll be more on transparency Suffice it to say, what it means for strategy is at least an understanding that the customer needs to know more than they have traditionally in order to have a great enough personalized experience to want to continue to do business with you at a minimum Optimally, your KPIs will be around advocacy, not just retention But we ll see about that, won t we The Social CRM definition from the CRM 20 wiki (http://crm20 pbwikicom) bears repeating: 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 s the company s response to the customer s ownership of the conversation Increasingly, companies are incorporating customer engagement strategy into their efforts to develop customer value There are an increasing number of companies, large, medium and small, using blogs, providing podcasts (both audio and video), developing communities, and participating in communities not built by them, such as Facebook or more specific communities that cater to the company s interests What does that mean It s recognition that the customer is now not only the owner of the business ecosystem but is controlling the chatter going on What they don t control is the traffic flow and that s where engagement comes in
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