Social CRM

Traditional CRM

• Business Strategy supported by business and technology, designed to improve interactions in a business environment.

• Customer Value creation-– CLV– Customer retention– Interaction with SCM– Optimal utilization of resources– Cost reduction

Customer Social Needs

• Participation• Openness• Conversation• Community• Connectedness

22 % SocialNetworking

21%Searches

20% ReadingContent

19% Emails/Communication

13% Multi-Media Sites

5% OnlineShopping

Customer Evolution

Ch

an

nels

of

SM

Video Sharing Sites Blogs Content Management Systems

Email Newsletter Campaign

Social Networks & Networking Tools Microblogging News Sharing & Social

Bookmarking Sites Virtual Worlds

Augmented Reality Photo sharing Content Sharing Podcasting

Customer Service Sites Crowd Sourcing or Wikis

Social Media Press release

CRM Social Media

Social CRM

Social CRM• It is a business strategy supported by a technology platform,

business rules, workflow, processes and social interactions, designed to engage customers in a collaborative conversation in order to provide a mutually beneficial value in a transparent environment.

CRM SocialCRM

• Specific Departments• Company-Centric

Approach• Defined Channels• Set Business Hours• Transaction• Message Flow Outside

• Everyone• Customer-Centric

Approach• Customer-Driven

Dynamic Channels• Customer-Set Hours• Interaction• Message Comes Inside

Why more influential?

• Proactive approach• New ways to interact• Feedback Solicitation• Effective problem Solving• Entertainment• Specialized Marketing

Benefits of SCRM

• Market research-Listening and hearing to the customers via social platforms.

• New Feature Development: Understanding the customer need gap in improving product features.

• Marketing and Sales: Focus is on relationship marketing and word of mouth sales Customer Retention.

• Support: Immediate online feedback reply, one-to-one customer dialogue.

Benefits of SCRM• Finding the things that people are talking about on social

networking sites and introduce a product that will fill that void. The recent e-commerce companies like Flipkart, Snapdeal, Jabong, etc. led to the shift of a lot of people shopping online. But buying clothes online was difficult for loads of people as they did not know what would suit their body type and style by just looking at pictures. The customer is asked for size and choice details and a range of few products are sent to the customer to choose from. This has reduced a lot of hassle to the customers and the return rate of the products has also reduced to a great extent. They personalise everything giving the customer a very good service experience.

Benefits of SCRM

• Customer Acquisition: This can be done through social media to a large extent by building relationships with the customers that converts into sales. After Steaz an organic tea manufacturer, they started by just stating how on Facebook and Twitter about how beneficial organic tea is and also why it is important. The people just like and share the comments and tweets but they also started buying their products on a large scale. Eventually, the company started offering downloadable coupons on the social networking sites, which resulted in 2, 50,000 downloads and 2,830 tweets in just a matter of an hour. Thus created a buzz and good PR activity.

• Customer Retention: On the social platform it would be concerned with immediate online feedback reply, one-to-one customer dialogue, etc. Some companies like JetBlue, Best Buy, Red Box, etc. have adopted Social CRM to their advantage. Consider the example of JetBlue Airways. They have moved onto social platforms to answer queries and receive feedback to a great extent. Their response time is excellent and customer satisfaction is at its peak. Therefore, there is no surprise to find that it has more than 1.7 million followers.

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• New feature Development: New feature development is basically understanding what the customer requires or finding the gap. Harley Davidson, the well-known cruiser bikes manufacturer, created a community for the Harley owners called HDtalking.com, where they can interact with one and other and also give feedback and address queries. The owners exchange photos, share maintenance tips and videos on servicing, they upload trip videos, advice on where to find spare parts or a mechanic in any given area, etc. A similar concept is also implemented in India by TATA motors where they created a community of TATA Safari owners called S.O.U.L (Safari Owners United League.