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Social CRM By Fabio Cipriani
1.
!
? Social CRM A call for reviewing current CRM Strategy, Processes and Mindset throughout companies Fabio Cipriani November-2008
2.
It all started
with the web 2.0 revolution and its 4C‟s According to Wikipedia (Nov/2008) - Web 2.0 is a term describing changing trends in the use of World Wide Web technology and web design that aims to enhance creativity, secure information sharing, collaboration and functionality of the web. Web 2.0 is enabling: • Collaboration • Community creation • Conversation • Creativity Image source: http://web2.socialcomputingmagazine.com/all_we_got_was_web_10_when_tim_bernerslee_actually_gave_us_w.htm © 2008, Fabio Cipriani. Some rights reserved
3.
Being connected, customers
realized that they could ask more from companies and share opinions about products and services Uses new online channels and new Web 2.0 stimulated communication tools fundamental changes in Trusts in Seeks support advices made to connect consumer behavior by online with like- acquaintances minded peers and strangers Interactions between customer and brands starting earlier and never ending The new Social Reads and New behavior patterns creates Customer product Tends to buy demand a new strategy, reviews, more online better segmentation, new than offline product rankings and channels and targeted blog posts messages and review of current customer facing Wants to business processes provide Expects better feedback customer about the experience product and customer service © 2008, Fabio Cipriani. Some rights reserved
4.
New customer relationship
means more than just mere on demand attention or mass customized products and services Web 2.0 provoked an expansion of the R in the CRM acronym Company / Customer Company / Partner Company / Competitor Company / Company Customer / Partner Customer / Competitor Customer / Customer Partner / Competitor © 2008, Fabio Cipriani. Some rights reserved
5.
Evolution of the
CRM landscape CRM 1.0 CRM 2.0 Customer Customer Customer Customer Customer Customer Customer Customer Customer Customer Competitor Supplier / Partner Competitor Supplier / Partner Customer Customer Customer Customer Your company Your company Customer Customer Customer Customer Customer Customer • Focus on individual relationship (company to customer, • Focus on collaborative relationship (engaging a more company to partner, etc.) complex relationship network) • Limited view of the customer and his community • Multiple connections allow better understanding of the preferences, habits, etc. customer and his community • Targeted messages generate value • Conversation generates value © 2008, Fabio Cipriani. Some rights reserved
6.
Evolution of Customer
Touch Points CRM 1.0 CRM 2.0 • Microblogs • Blogs • Price comparison website • Podcast • RSS • Phone • Phone • Wikis • Fax • Fax • Social Networks • Email • Email • Service • Service • Widgets • Letters + • Video sharing • Letters • Personal contact • Personal contact • Photo sharing • Company‟s website • Company‟s website • SMS • SMS • Forums • Auction website • Instant Messenger • Instant Messenger • Chat • Chat • Slides sharing • Media • Media • Reviews and ratings in retail sites • Wish lists • Social Bookmarking • Single view of the customer based on the interactions • Single view of the customer is far more complex to history, customer profile data residing in the company‟s achieve. Besides internal information, the company must base and data integration with internal systems rely on external information such as customer profiles in social networks and his behavior when participating in a • Company owns the data but it is limited to previous community. interactions • Customer and other web 2.0 sites own part of the precious data © 2008, Fabio Cipriani. Some rights reserved
7.
Evolution of Business
Processes Modeling CRM 1.0 CRM 2.0 Establishing Targeting need impressions Expansion Acquisition Decision Sharing Targeting Expansion Acquisition Retention Experience Retention Support processes Customer Marketing Sales Value Service Operation processes • Company processes developed from the customer • Customer processes developed from the company standpoint (company life cycle for the customer) standpoint (customer life cycle for the company) • Conversation centric – include the conversation factor to • Process centric – adapt and optimize processes to support establish brand community, enable idea capturing and better customer interaction better segmentation • Focused on CRM processes • Focused on the evolution of CRM processes and resulting impacts in the value chain © 2008, Fabio Cipriani. Some rights reserved
8.
Evolution of Technology
CRM 1.0 CRM 2.0 Monitoring / Interconnecting tools Conversation tools Data Customer mining Owned Forums Data RSS Process Support Process Support Account Management Account Management Contact Management Contact Management Activity Management Activity Management Widgets Blogs Lead / Opp Management Lead / Opp Management Campaign Management Campaign Management Sales Management Sales Management APIs Service Management… Service Management… Open Id Podcast Wikis Social Networks Cloud Computing Brand monitoring services • CRM Solutions focused in community creation internal and • CRM Solutions focused in automating and supporting externally internal business processes © 2008, Fabio Cipriani. Some rights reserved
9.
Evolution of Organizational
Mindset CRM 1.0 CRM 2.0 ! ! ! ! Interaction Conversation Contribution Transaction Feedback Employee Customer Employees Customers • Innovation is gathered from all employees as they are • Innovation comes from one specialized source within the closely connected to the final customer and to each other company (innovation group) via internal web 2.0 tools. Customers are in the center of • Frontline employees communicate targeted messages for the innovation cycle. transactional operations • Frontline and non frontline employees engage conversations including new customers in the context and rerouting conversations. New set of employee skills needed. © 2008, Fabio Cipriani. Some rights reserved
10.
Bottom line
• Social CRM does not replace traditional CRM. It extends current CRM 1.0 capabilities to engage conversations with customers and the market, • Social CRM humanize the company so the customer can see it as a trusted peer (customers trust people like themselves), • Social CRM puts the customer in the core of the company‟s strategy. It affects thoroughly operations, its value chain and organizational structure and culture, • Social CRM introduces new value drivers into the company‟s strategy thanks to customers engaged with the brand, • Social CRM needs a new organizational mindset supported by web 2.0 empowered employees. By connecting employees to themselves and to customers, the Social CRM should enable closed-loop employee recognition based on individual results. © 2008, Fabio Cipriani. Some rights reserved
11.
Putting Social CRM
to work: Understand Social Influence in CRM Building Blocks and transform it... Social Influence Strategy Operations Organization The Social Influence changes the traditional CRM building blocks and requires companies to work towards a Social CRM concept composed by Social Strategy, Social Operations and Social Organization © 2008, Fabio Cipriani. Some rights reserved
12.
To support this
transformation, go deeper in the „Company life cycle‟ from the customer point of view… Social web improves our sense of control and makes us Consumption needs more sensible to ads and willing to participate. This is an open door to understand and establish customer needs Establishing need By sharing experiences, people connect and influence Need by influence each other. Online reviews can be more important than a recommendation from a friend. Call for improved analytics Customer is now empowered with powerful search tools Searching capable of bring back text, pictures, music, video and any Company Life Cycle other digital content. Long tail economics happen here Search results can be frightening. Organization of Selecting Decision information is now owned by the user via tags, categories and links. This is new taxonomy is called „folksonomy‟ Prospect customers can find plenty of opinions in multiple Deciding places or even ask online about your product to compare and finally decide. Connection is seamless and easy Customer Besides traditional price comparison via specialized behavior Buying websites, the prospect customer can now form groups to bargain prices thanks to some specific web 2.0 sites Paypal enabled new ways for paying for products and Paying receiving from customers, but new social networks allows you to lend / borrow money from / to multiple users Experience Better Supply Chain overview by connecting companies Receiving and external parties. CPFR improvement(Collaborative Planning, Forecasting, and Replenishment) Customer support is now offered via web 2.0 channels as Using well. Some virtual communities allow users to support each other using a product or service. Lowering CS costs Based on previous experiences and other customer Comparing descriptions in social networks, blogs, and so on, the customer draws a conclusion about how satisfied he is Sharing impressions Customers share their experience in virtual communities Sharing and other reviewing tools. It can consist of improvement suggestions, faults description or mere opinions © 2008, Fabio Cipriani. Some rights reserved
13.
...and apply findings
into your current CRM foundations following a consistent roadmap. Social Strategy Social Operations Social Organization Implementation Redesign Design and Monitor and Strategy Building Blocks Develop tools Adapt • Understand your public and • Review current CRM building • Design and develop tools • Measure results and adapt current customer behavior blocks (as is) which will support the current Social CRM to meet company in engaging with changes in customer needs • Decide how you will • Realign Social CRM Strategy Social Customers and/or market dynamics engage with the market with current CRM Strategy • Train employees and close (monitor buzz, react to (touch points, segmentation, comments, supply social customer value, etc.) the recognition and reward platform, etc.) loop • Review Processes to • Find out which tools will be operate Social CRM deployed • Establish Social CRM • Build a business case mindset throughout the company © 2008, Fabio Cipriani. Some rights reserved
14.
Some foreseen benefits
of Social CRM Raise Marketing ROI thanks to better targeting, better product solution, customer experience and word-of-mouth. Gain insights to explore new market segments and improve marketing effectiveness Identify new business opportunities and improve cross/up-sell abilities through increasing contact with existing and potential customers Cut sales commissions costs by building community around the brand Increase R&D capabilities and innovation through tapping into the collective intelligence of your target audience Increase customer loyalty by promoting transparent dialogue and improving employee/customer interaction efficiency Decrease customer service costs through self-helping communities © 2008, Fabio Cipriani. Some rights reserved
15.
It‟s over... Go
do something about it! Fabio Cipriani • Author: “Corporate Blogging” – First book about web 2.0 in Brazil – 2nd edition released in 2008. • Academic Background – Electronics Engineer – Master of Science in Wireless Systems – Post-Laurea in Economy and Management of Small/Medium Businesses • Project experiences – Customer & Market Strategy and CRM implementations in all Latin America, Italy and the Netherlands – More than 7 years working as Management Consultant for companies in several different industries such as Consumer Business, Telecom, Technology, Manufacturing and Energy © 2008, Fabio Cipriani. Some rights reserved