Simplifying Social Business(and the Promise of Social CRM)

www.kathyherrmann.com©2010 Kathy Herrmann

The Social Business model focuses

on engagement and collaboration with customers, partners, and employees.

Paul Greenberg - The

intent is to create mutual value in a transparent business environment.

It’s very much a customer-centric model.

Social Business is a return to a

village mentality.

So interactions within social channels is part of the model.

Modern spin - A company’s village outposts can occur anywhere in the world, thanks to electronic

& mobile connectivity.

Managing social business initiatives requires you to…

It puts more power into the hands of socially demanding customers.

Social Business a paradigm shift.

Social business benefits -

The only two that really matter are

higher revenue generation and profitability

(a.k.a., higher cost savings).

Leading indicators of Revenue generation include:

• Extended influence or impact with prospects and customers.

• Improved branding.• Heightened customer

loyalty.• Better insight into

customers and their needs so you can more responsive to them.

Leading indicators of cost savings include:

• Agent deflection ─ Fewer opened incidents.

• Faster incident resolution with fewer contacts per incident.

• Increased agent productivity.

• Expansive ideation.• Accelerated product

development.

The social business model recognizes the need

to engage in different types of conversations between customers and

partners with your company.

Many to many

conversations

Unstructured convos but a rich source of intel about your products and services, as well as your

competitors.

Technology helps you monitor, collect, and analyze these conversations.

Many to many conversations

One to one conversations

One to one conversations

Traditional 1-to-1 convos are still important interactions but now occur across diverse

communication media.

Challenge - To gather customer-specific communiqués across multiple channels and store

them by contact in your CRM system so your employees can view activity history.

Let’s talk about the

way real people work……or the problem with CRM systems

People use complex and often fuzzy thought, impacted by group input, to navigate through the world, make decisions, and do work.

CRM systems are

so doggone transactional and

linear and require people to force-fit themselves to the system rather than working naturally.

11 22 33 44 55CRM

SCRM

Or said another way…

Making sense of social interactions

Social data is a series of

overlain patterns that need unraveling to make sense of.

It’s a pattern recognition challenge.

Reminds me of geology…

…yes, really.

Look at a cross-section of the earth …

…and you see a variety of geologic events overlain one on top of the other, mushing

together in ways that sometimes (oftentimes) hide the discrete events.

Geologist’s challenge is to unravel the mush and piece together the history of individual

events.

Each geologic event had an impact on the critters in the region. Understand the geologic history and you also gain insight into why some critters

thrived while others extinctified.

And it’s not just about rocks.

Uh huh.

And how is geology like social business?

Unravel the patterns in the network so you can apply them to the benefit of your company.

Go back to the social network diagram.

All those interlocking connections mean

something insightful and valuable to your business.

How to start applying SCRM

Start with people.

Become a corporate geologist and unravel your corporate culture and processes. Determine where your company already has social-centricity and what’s getting in your way.

Prepare your strategic plan.

These will center on culture, processes and technology, in that order.

Stimulate and embrace the changes needed to make the adoption of social business a success.

Expect to re-engineer some processes.

Implement social technology to complement or replace your existing technology platforms.

Remember to show your execs the money.

That’s where economic valuation (ROI) comes into play.

1.Cash flow analysis of gains and costs,

2.Net present value (NPV) or time-value of cash flows, and

3.Return on Investment (ROI).

Psst. Valuation =

Yes. Valuation means doing economic math but there’s good news.

Higher the NPV and ROI =

accelerated adoption of your initiative.

Do social business the smart way. Think it through. Then go forth and do it in the way that

makes the most sense for your company.

• Leading expert on social business and change management. 

• Practice centers on business process design and definition, valuation, and the user experience.  

• Valuation expert and designer of the ValueRight methodology and tool for social business valuation (and ROI) determination. 

• Active participate in the SCRM Accidental Community on Twitter, a premier group of social business thought leaders.

www.kathyherrmann.com

Thanks!