User Tools

Site Tools


crm:concepts:social_crm
  • Bookmark "Social CRM" at del.icio.us
  • Bookmark "Social CRM" at Digg
  • Bookmark "Social CRM" at Furl
  • Bookmark "Social CRM" at Reddit
  • Bookmark "Social CRM" at Ask
  • Bookmark "Social CRM" at Google
  • Bookmark "Social CRM" at Netscape
  • Bookmark "Social CRM" at StumbleUpon
  • Bookmark "Social CRM" at Technorati
  • Bookmark "Social CRM" at Live Bookmarks
  • Bookmark "Social CRM" at Yahoo! Myweb
  • Bookmark "Social CRM" at Facebook
  • Bookmark "Social CRM" at Newsvine
  • Bookmark "Social CRM" at Yahoo! Bookmarks
  • Bookmark "Social CRM" at Twitter
  • Bookmark "Social CRM" at myAOL
  • Bookmark "Social CRM" at Slashdot
  • Bookmark "Social CRM" at Mister Wong

Social CRM

Social CRM is Customer Relationship Management advanced by communication with customers through social media, especially social networking platforms, blogs and communities.

According to market research firm eMarketer, by the end of 2012 worldwide about 1.5 billion internet users are active in online social networks like Facebook and Twitter1). In such networks, they share their experiences and opinions, recommend products and supplier, or warn their network of certain products. This information and knowledge is invaluable to the providers. Therefore they want to participate in this knowledge exchange and dialogue to get the data from relevant people and attract them to their products and brands. The company could also get new ideas for product development directly from the people who use these products2).

Definition

A definition of Social CRM that is often cited today is by Paul Greenberg3) – one of the key figures on this subject since the turn of the millennium:

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

Challenges

According to Prof. Dr. Goetz Greve, social media offers will establish themselves as the dominant communication platforms in the Internet. The proliferation of mobile Internet will encourage this trend. For businesses, this means strengthening the efforts to implement a systematic social CRM in the future. However, this significantly challenges companies in terms of system integration, the growing customer contact channels and calculating the associated return on investment.4)

Success factors

Vendors of Social CRM solutions are differentiated by their offered functions5).

The following four functions currently dominate the social CRM offering:

  • Hosting communities
  • Monitoring of social networks
  • Managing contacts in communities
  • Management of product announcements in communities to prepare for online sales success.

The more of these functions, a provider can offer today, the more successful it will be in the market.

Other success factors are therefore:

  • A seamless integration of public social networks and internal working groups
  • Integration of classical CRM processes
  • Analysis tools to determine the return on investment
  • Affiliate programs with system integrators, agencies and consultants.

Adam Sarner, research director at analyst firm Gartner stated: „To be successful with social CRM, organizations need to be much less focused on how an organization can manage the customer, and much more focused on how the customer can manage the relationship. Without any benefit for the customer to participate, communities and social networks die resulting in no benefits to the organization using the social CRM applications.“6)

That means, Social CRM should go beyond a pure social media monitoring.

Data Security

With the integration of social media companies must meet even more data protection guidelines as these personal data is particularly worthy of protection. With the adapted Data Protection Law in Germany, effective 1st September 2012, companies always have to document the consent of the customer to use their personal information in their CRM applications and have to demonstrate it accordingly upon request. For further information, please refer to Privacy and Data Protection or Online Fraud Protection.7)

  • Mosadegh, Mohammad Javad, and Mehdi Behboudi. “USING SOCIAL NETWORK PARADIGM FOR DEVELOPING A CONCEPTUAL FRAMEWORK IN CRM.” Australian Journal of Business & Management Research 1.4 (July 2011): 63-71. (<http://web.ebscohost.com>)
  • Pavicic, Jurica, Niksa Alfirevic, and Kresimir Znidar. “CUSTOMER KNOWLEDGE MANAGEMENT: TOWARD SOCIAL CRM.” International Journal of Management Cases 13.3 (Sept2011): 203-09. (<http://web.ebscohost.com>)
  • Woodcock, Neil, Andrew Green, and Michael Starkey. “SOCIAL CRM AS A BUSINESS STRATEGY.” Journal of Database Marketing & Customer Strategy Management 18.1 (Mar2011): 50-64. (<http://web.ebscohost.com>)
1) “Where in the World Are the Hottest Social Networking Countries?” - EMarketer. N.p., n.d. Web. 10 Dec. 2012. <http://www.emarketer.com/Article.aspx?R=1008870>.
2) “Wolkig, Sozial Und Mobil: CRM Wird Vielfältig.” Computerwoche 20 Feb. 2012, 08th ed.: n. pag. Wiso. Web. 09 Dec. 2012. <http://www.wiso-net.de>.
3) Greenberg, Paul. “Time to Put a Stake in the Ground on Social CRM.” 'PGreenblog' N.p., 06 July 2009. Web. 09 Dec. 2012. <http://the56group.typepad.com/pgreenblog/>.
4) Greve, Goetz, Prof. Dr. “Social CRM – Ganzheitliches Beziehungsmanagement Mit Social Media.” Marketing Review St. Gallen May 2011: 16-21. Wiso. Web. 09 Dec. 2012. <http://http://www.wiso-net.de>.
5) Sarner, Adam, and Et All. “Gartner Magic Quadrant Social Crm- 2011.” Magic Quadrant for Social CRM. Gartner Inc., 25 July 2011. Web. 09 Dec. 2012. <http://de.slideshare.net/fred.zimny/gartner-magic-quadrabt-social-crm-2011>.
6) Sarner, Adam. “Social CRM Means Business in 2012.” Forbes. Forbes Magazine, 16 Feb. 2012. Web. 09 Dec. 2012. <http://www.forbes.com/sites/gartnergroup/2012/02/16/social-crm-means-business-in-2012/>.
7) Huhndorf, Michael. “Unstrukturierte Daten Im Marketing Einsetzen.” Fokussiertes CRM. Computerwoche.de, 27 Nov. 2012. Web. 10 Dec. 2012. <http://www.computerwoche.de/software/crm/2508043/index3.html>.
  • Bookmark "Social CRM" at del.icio.us
  • Bookmark "Social CRM" at Digg
  • Bookmark "Social CRM" at Furl
  • Bookmark "Social CRM" at Reddit
  • Bookmark "Social CRM" at Ask
  • Bookmark "Social CRM" at Google
  • Bookmark "Social CRM" at Netscape
  • Bookmark "Social CRM" at StumbleUpon
  • Bookmark "Social CRM" at Technorati
  • Bookmark "Social CRM" at Live Bookmarks
  • Bookmark "Social CRM" at Yahoo! Myweb
  • Bookmark "Social CRM" at Facebook
  • Bookmark "Social CRM" at Newsvine
  • Bookmark "Social CRM" at Yahoo! Bookmarks
  • Bookmark "Social CRM" at Twitter
  • Bookmark "Social CRM" at myAOL
  • Bookmark "Social CRM" at Slashdot
  • Bookmark "Social CRM" at Mister Wong
crm/concepts/social_crm.txt · Last modified: 2012/12/10 20:58 (external edit)