This is a draft document to try and explain the concept of Social CRM, it's benefits and how it fits into the overall marketing discipline. This is still a work in process so please feel free to contact me with suggestions!

1. Social CRM Martin Walsh Digital Marketing Director Draft Ver1.3 First created: January 2009 Last updated: February 2010 For a more comprehensive look into Digital Marketing and Social Influence Marketing view my PowerPoint on SlideShare: From Monologue to Dialogue, Digital & Social Influence Marketing

2. Social CRMA process to monitor, engage and manage conversations and relationships with existing and prospective customers and influencers across the Internet, social networks and digital channels.Or another way to look at it:Social CRM is the process of converting content into conversations and extending these conversations into collaborative experiences and then transforming those experiences into meaningful relationships. Martin Walsh Draft Ver1.3

3. Social CRM Benefits Sales teams can now be equipped with significantly more relevant information about their customers through an integrated view of their customers online conversations combined with digital analytics (website, search, mobile, email etc) and existing CRM activity history. Marketing teams can now meet prospects at their point of need, connecting much earlier in the buying process with real-time listening and monitoring of online conversations. Marketers can also gain a greater insight into the behaviour, sentiment and effectiveness of their marketing and communication efforts which in turn can help them define and refine their creative, messages and channels. Product development teams can engage and collaborate directly with customers throughout the development phases from the simple generation of ideas through to design, prototyping and testing which can build significant advocacy and positive word of mouth. Companies like Dell actually encourage, facilitate and solicit new product ideas directly from their customers and ask other customers to rate these ideas. Ducati designs and develops motorcycles in collaboration with its customers and fans via forums, communities, contests and polls. Customer service teams are now empowered to provide a memorable service by proactively responding to customers on the customers terms, equipped with an integrated view of their entire interaction, engagement and conversation history. Community and social media teams are provided with context for their outreach and engagement efforts. Martin Walsh Draft Ver1.3

4. How does Social CRM work? Social CRM is achieved through the integration of digital analytics (web, email, mobile, search, video etc), social media / conversational analytics and other CRM relationship management analytics to determine and articulate social media ROI. *For example Radian6 with WebTrends and SalesForceCRM. Marketing, community, social media, customer service and sales teams can now map their word of mouth or social media initiatives directly to success events (customer navigates to fulfil a need – click on a video, click on click to chat, download whitepaper etc) and end actions (customer fulfils a need – register for event, downloads, subscribes to newsletter, makes purchase) on a website or other digital channels. They can then view a customers online activity and performance through the lens of social media. Organisations will be able to: Compare which types of social media and communities are most effective in generating positive word of mouth, resulting in desired actions on your website or other digital channels Measure the direct benefits of customer advocacy and quantify the value of engaging customers and influencers online and through digital channels Calculate the ROI of content marketing and outreach efforts by connecting associated social media conversations to website traffic, downloads, conversion or sale or other desired actions. Martin Walsh Draft Ver1.3

5. Social CRM More Broadly I believe that Social CRM and traditional CRM should be called Individual Lifecycle Marketing (ILM) and these disciplines should be closely associated with Customer Experience Management. The world has now shifted from an era of information asymmetry to a new era of information democracy. In the era of information asymmetry customers were mainly educated by companies and organisations, their solution providers, partners, retailers, analysts and the media. These companies and organisations were able to tightly control the information and image about themselves, their products, brands and services as the channels were simply broadcasting the marketing monologue. Marketing was command and control. But in todays era of information democracy customers can educate themselves over the Internet and digital channels, through their connections in social networks, blogs, micro blogs, discussion forums, chat and much more. Marketing is now a dialogue. Prospective customers can now talk with existing customers and customers are now so well educated that the influence from traditional sales, advertising and marketing has become more negligible. Martin Walsh Draft Ver1.3

6. We have seen the rise of information democracy From information asymmetry... Information was scarce Customers were ill-informed Exchanges were monologues Marketing was “command-and-control” … To information democracy Information is ubiquitous Customers are well-informed Exchanges are conversations Marketing is “connect-and-collaborate” Draft Ver1.3 Martin Walsh

7. Why Social CRM? Traditional CRM - typically a one dimensional corporate interaction that provides processes, services and technology to customer facing departments like sales, marketing and customer service is no longer a viable discipline. Customer expectations and behaviour have fundamentally shifted as the world moved from the era of information asymmetry to information democracy with the advent of the Internet and other digital channels. Marketers must recognise that there is now an active participant ecosystem which provides empowered customers - who are interested in making their own choices – the ability to interact with organisations when and how they choose. Conversely, customers are now more accessible than ever before and companies are able to connect and provide – if they so choose – a remarkable and more personable customer experience by listening to their customers and reaching out to them through online and digital channels. Martin Walsh Draft Ver1.3

8. The Marketing FunnelIsn’t Linear(hell, it’s not even a funnel) Martin Walsh Draft Ver1.3

10. The most valuable customer isn’t necessarily someone who buys a lot.

11. Traditional media channels are weakening.

12. Consumers force brand transparency.Martin Walsh Draft Ver1.3

13. Traditional Marketing Models Fail to Model Complex Buying Paths Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences, and alternative resources. The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers influence each other as much as companies do, good customers can’t be identified solely by their purchases. Companies also need to track individuals who influence others to buy. For example, a customer who buys very little from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of the funnel misses this significant element of influence. Traditional media channels are weakening. Marketers continue to use mainstream media messages to move consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as product review sites, message boards, and online video. Martin Walsh Draft Ver1.3

14. Today’s Complex Buying Paths Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or discussion forums, or the likelihood to recommend to a friend. Martin Walsh Draft Ver1.3

15. Social media – The conversation prism You must understand the dynamics of conversations and how and where they transpire. Martin Walsh Draft Ver1.3

16. Engagement: A New Perspective on Marketing If the funnel no longer accurately reflects what marketers can influence, why do they still cling to it? Because they can measure it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of course, there are no useful alternatives. We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement — engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness and loyalty, and the fuzzy areas in the middle best characterized by social media. Martin Walsh Draft Ver1.3

17. Marketing Needs to Shift Focus from Low Value Broadcast Campaigns to High-Value Timely & Relevant Programs Draft Ver1.3 Martin Walsh

19. Predicting response rates

20. Optimizing spend by reducing marketing waste

22. Lending itself to automationDraft Ver1.3 Martin Walsh

24. Immediately triggering a marketing response

26. No Shrugging Shoulders: Move More Marketing Real-Time Draft Ver1.3 © 2009 Martin Walsh

27. Social CRM – limited examples* Microsoft Dynamics CRM *I say these are limited examples because they only offer 2 dimensions of Social CRM – social media + CRM and miss the integration of web analytics / website behaviour. Martin Walsh Draft Ver1.3

28. Social CRM – limited examples* Salesforce CRM – Social CRM Tools Application *I say these are limited examples because they only offer 2 dimensions of Social CRM – social media + CRM and miss the integration of web analytics / website behaviour. Martin Walsh Draft Ver1.3

29. Social CRM – limited examples* Salesforce CRM – deeper and broader overview with case studies *I say these are limited examples because they only offer 2 dimensions of Social CRM – social media + CRM and miss the integration of web analytics / website behaviour. Martin Walsh Draft Ver1.3

30. Barriers to Effective Social CRM My own experience: The single greatest barrier I come across in my professional life is a lack of understanding and experience with CRM, Social Media and digital analytics and then the technological barriers. I also see organisational barriers with far too many organisations placing analytics within a CIO’s portfolio of responsibilities and not where it should be which is marketing. But when I do see it in marketing, the marketers largely have no knowledge or experience with technology and often get talked into the wrong tools, technologies or platforms or very costly and under-defined integration projects which often fail. Here are some critical insights from the Econsultancy‘CRM 2.0 Report 2009’. The main factors holding back most companies are: The inability to link web activity to a specific individual customer The lack of integration between different databases Data limitations and lack of relevant information/actionable data from web analytics packages Lack of time and resource to understand and analyse the data Lack of skills and knowledge to understand the data Martin Walsh Draft Ver1.3

31. Barriers to Effective Social CRM Other report highlights: Companies were asked to what extent they had implemented attributes of a CRM 2.0 strategy within their organisation. A third of companies (34%) say that they definitely (i.e. “very much so”) put their customers at the heart of their decision-making, while half (49%) say that this is only “somewhat” true for their organisation. Email platforms (66%), web servers (64%) and online surveys (63%) are the most common sources for data collection relating to the online channel. In terms of how online data is collected, web analytics tagging is overwhelmingly the most commonly used approach, adopted by 87% of company respondents. On-site search data (49%), and traditional log analysis (42%) are the next most frequently used methods for collecting data. The majority of companies collect data related to geography (80%), the type of content viewed (74%), and transactional data (66%), including frequency (70%) and recency (67%) of purchase. The vast majority of companies surveyed say they have a central repository for storing customer data (70%). Only a fifth of companies (20%) say that they are definitely able to link data from the online channel with back office systems, compared to 45% who report that they are somewhat able to do this. However, 28% of organisations do not have the capability to link the online channel to their internal back office systems. Martin Walsh Draft Ver1.3

32. List of Companies Providing Social CRM Offerings Here is a great online list and categorisation of companies offering Social CRM solutions from Jeremiah Owyangwho is a leading voice in the digital strategy space (he is currently a Partner, Customer Strategy with the Altimeter Group and he is an ex Senior Analyst at Forrester): List of Companies Providing Social CRM Offerings December 8th, 2009 Martin Walsh Draft Ver1.3

33. Social CRM – more reading Here are some other resources about Social CRM which you might find useful: The World Changed while CRM slept (Social CRM Manifesto) Using Social Software to Reinvent the Customer Relationship Social CRM: The Conversations The Year of the Shift to Enterprise 2.0 Finding Social CRM Vendors don’t Walk the Talk Martin Walsh Draft Ver1.3

34. About Martin Martin is currently leading Digital Marketing for IBM and from 2005 to late 2009 he was the Head of Digital Marketing at Microsoft defining, developing and executing Microsoft’s B2C and B2B global digital marketing and social influence marketing strategies & disciplines. Martin is also the Producer of the critically acclaimed and award winning The Battle of Long Tan documentary Prior to Microsoft, Martin successfully led and grew the ecommerce division of a large Australian media & entertainment company from less than AUD$22 million in annual sales to more $AUD700 million in annual sales. Martin has worked in senior marketing roles across radio, film, music, games, entertainment and the technology industries for companies such as News Corporation, Village Roadshow / PBL, Austereo, Telstra, BMG (Bertelsmann), Sydney 2000 Olympics, Tabcorp & Microsoft. He specialises in B2C & B2B digital & traditional marketing, social influence marketing, social CRM, search engine marketing and online analytics. Martin has also advised organisationssuch as Australian Rugby Union, Cricket Australia, UNHCR, film distributors, games publishers, media and government on how to engage with consumers, commercially exploit their content and enhance their digital marketing capability & strategies. In parallel to Martin’s professional marketing career, he established Red Dune Films in early 2004 and acquired the film, documentary & story rights to the Battle of Long Tan from the seven Australian Long Tan combat commanders. In 2006 he produced the ASTRA award winning & TV Week Logie award nominated Battle of Long Tan documentary for The History Channel (FOXTEL) which was narrated by Sam Worthington (Terminator Salvation, Avatar & Clash of The Titans). Born In Melbourne but now living in Sydney, Martin originally began his career serving with Australian Army Special Forces - 2 Commando Company, 1st Commando Regiment and then studying innovation at Swinburne University earning a Master’s Degree and Graduate Diploma in Entrepreneurship and Innovation.

35. Thank you! twitter.com/martinwalsh Sources:Radian6, Trucast, WebTrends, Responsys, Omniture, CRM 2.0 wiki, Econsultancy, Forrester, Brent Leary, Brian Solis Martin Walsh Draft Ver1.3