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Social CRM - Functional Architecture and Interactions Flow

Building long-lasting links with customer through innovative experience and co-generating value with them

Topics covered:
- Why Social CRM?
- Functional Architecture
- Flow and Value of Interactions
- What are CRM vendors doing to promote Social experience
- Pre-requisites and business questions

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Social CRM - Functional Architecture and Interactions Flow

  1. 1. ? ! Social CRM Functional Architecture and Interactions flow Building long-lasting links with customer through innovative experience and co- generating value with them Fabio Cipriani July-2009
  2. 2. For Social CRM overview and introduction, please browse my previous presentation available on SlideShare.net  Concept  Comparison with traditional CRM  Benefits  Approach for adoption  How to put it to work This is what you’ll see now:  Why Social CRM?  Functional Architecture  Flow and Value of Interactions  What are CRM vendors doing to promote Social experience  Pre-requisites and business questions © 2009, Fabio Cipriani. Some rights reserved
  3. 3. Why CRM should start to think Social? Because we live in a social world… • We are inserted in and surrounded by social communities, • We establish relationships based on conversations, • We struggle to be accepted by other groups, • We share our insights with like-minded peers and friends, • We make decisions based on suggestions from like-minded peers and friends. … and because customers are, more than everything else, PEOPLE “By 2010, more than 60% of Fortune 1.000 companies will have some form of online community deployed for CRM purposes” – Gartner Group 1 © 2009, Fabio Cipriani. Some rights reserved
  4. 4. Social CRM functional architecture Social Media should be seen as a communication channel with customers where Socially- enabled Marketing, Sales and Customer Service processes are performed to generate value Market Types of Market- aimed Social Tools Social Channel Interface Traditional Website Letter Face to face Channel Phone / E-mail Interface SMS Internal Social Tools Fax (Internal blogs, wikis, sharing platforms, social Internal POS Business networks, innovation portal, etc.) Collaboration tools Partner Social CRM Socially-enabled Socially-enabled Socially-enabled Capability Layer Marketing Sales Service Traditional CRM Processes Marketing Sales Service © 2009, Fabio Cipriani. Some rights reserved
  5. 5. Types of interactions in the Social CRM landscape Customer-generated Market reactions on Social CRM brand or industry Social These spontaneous Service interactions happens Market- at the market side centered social Social among customers Sales interactions (C2C), competitors (outside-to-outside) Social and business Marketin partners g Market These interactions includes the company performing Social CRM involved Business- in at least one side of centered social the communication Customer-facing interactions employee flow. They are B2B, Monitoring / (inside-to-outside Data Mining B2C, C2B and inside-to-inside) Internal Social Tools internal interactions (Internal blogs, wikis, sharing platforms, social networks, innovation portal, etc.) Socially-empowered employees © 2009, Fabio Cipriani. Some rights reserved
  6. 6. Business-centered interactions in Social CRM May be exploited by actively generating content Own Social Content consists of social platforms such as a marketing campaigns or creation of created and owned by the company. They can specific pages in existing social platforms, also be branded or unbranded. Content is by being present on these social environments monitored, published and updated by specific to answer market requests or complaints and employees according to the company’s social even by connecting to people in search of new strategy business opportunities Market All interactions and Internal Social Tools brand-related connects employees references are to themselves and is monitored and its an open channel to contents may be share insights and converted in specific stimulate customer experience collaboration. Via / needs reports. This tagging and ranking Customer-facing activity includes not the most valuable employee Monitoring / only interactions information is put in Data Mining resulted from evidence and may Internal Social Tools company efforts, but help to address (Internal blogs, wikis, sharing platforms, social also personal issues and shape networks, innovation portal, etc.) content generated by new strategies, the company’s innovations or even employees in their improve current personal blogs, for processes example Socially-empowered employees © 2009, Fabio Cipriani. Some rights reserved
  7. 7. Market-centered interactions in Social CRM Customer-generated Market reactions on Social CRM brand or industry These social actions are Social These reactions happen triggered by rewards or Service spontaneously and are happen spontaneously. performed by customers They are performed by Social and the market in customers, ex-customers Sales general. The cause of and non-customers these reactions could be helping the company to Social the result of a good or spread market Marketin bad customer experience messages, identify leads g Market with your company or via referrals and support competitors, or could customers on product have no specific cause at issues and questions. all. They serve as basis These actions contribute for very important positively to your customer insights and, company’s reputation depending on the content and results. Company they have, it may affect actions on Social CRM positively or negatively help to amplify the your company’s reverberation of this Monitoring / reputation and results behavior Data Mining Listen. Stay informed about what people are saying and look for trends. By monitoring and analyzing the conversation about your company you can understand why customers are complaining or complimenting you. The next step is to join the conversation and get more insights on your customer’s experience. © 2009, Fabio Cipriani. Some rights reserved
  8. 8. Value generation from Social CRM interactions Customer-generated Market reactions on Benefit from spontaneous reactions from the Social CRM brand or industry community by connecting Social like-minded peers Service Improve customer Social intelligence by gathering Sales additional information from the market Social Improve customer education Marketin Improve customer and expertise g experience responsiveness Market Make use of a low-cost Enhance customer needs strategy and wants understanding Stimulate “interest” based marketing & advertising Develop new revenue streams Efficient knowledge Extend your reach within the management Customer-facing social media channel Increase internal employee Monitoring / Attract new talent from the collaboration Data Mining market Establish new business Internal Social Tools connections (Internal blogs, wikis, sharing platforms, social networks, innovation portal, etc.) Encounter internal talent Increase retention through strong morale and commitment Socially-empowered employees © 2009, Fabio Cipriani. Some rights reserved
  9. 9. Vendors’ solutions already started to integrate web 2.0 features and data into their CRM product portfolio. This generates value to several company areas Focused on internal use for collaboration  Use of tags to “label” the customer (e.g. tag=golf for executives who play golf)  Content sharing capabilities (e.g. sales presentations)  Virtual collaboration (e.g. wikis, CEO blogs, teams blogs, micro-messaging)  Rating content (e.g. rating customers, leads, shared content, etc.) Focused on connecting external parties  Idea/Insights capturing (e.g. idea management system platform)  Customer support via forums (e.g. message board platform)  Tagging, rating and reviewing products in companies' e-shops  Blogs for sales force (followed by their customers)  Connection with 3rd party social networks (e.g. convert Facebook friends as contacts, access a Facebook page directly from the application, obtain relevant information provided by the customer itself in Facebook: About me, Activities, Favorite Movies, Favorite Books, Favorite Music, Interests, etc., Amazon’s reviews, ratings, etc.)  Connection with Twitter for running campaigns directly from the CRM platform and listening and support current customers © 2009, Fabio Cipriani. Some rights reserved
  10. 10. But before you decide to go for Social CRM, there are many open questions drawing the line between going with the flow and extracting real CRM value from Social Media. These are just a few of them… Are all of your social Are your social media Do you know how media efforts efforts part of a broader “social” are your integrated with your Social CRM / Social Media employees? CRM system? strategy or is it just an random project? Have your “social” Are your processes and business rules employees received adapted to encourage social behavior? proper training? Is your front line Are you able to track Have you assessed productivity under benefits and return on all Corporate control? investment effectively? Security concerns? © 2009, Fabio Cipriani. Some rights reserved
  11. 11. Becoming Social: Social CRM demands a Social transformation of your business Is imperative to understand the social influence on all CRM Building Blocks … Social influence changes the traditional CRM building blocks, its supporting processes, IT Social infrastructure and demands Strategy influence companies to work towards a Social CRM vision composed by: Operations •Social Strategy, •Social Operations and, •Social Organization Organization “By 2010, more than half of companies that have established an online community will fail to manage it as an agent of change, ultimately eroding customer value. Rushing into social- computing initiatives without clearly defined benefits for both the company and customer will be the biggest cause of failure” – Gartner Group1 © 2009, Fabio Cipriani. Some rights reserved
  12. 12. However, to successfully adopt and generate value with Social CRM, there are a few pre-requisites that should be taken into account • Understand Social CRM and Social tools, its characteristics, risks and business case • Develop a proper Social Strategy comprising tools (wikis, social networks, twitter, etc.) and scope (monitor, engage conversations, get customers to collaborate, spread viral messages, etc.) • Have a effective traditional CRM system in place • Have processes mapped and well documented Strategy • Have a project portfolio management in place to put all social initiatives linked together Operations • Have the CRM philosophy and its objectives already spread and well-known among employees • Evaluate the organization’s readiness to embrace the principles of online collaboration Organization • Executive buy in and support Even though the pre-requisites fulfillment and the current CRM maturity might affect the resulting roadmap to Social CRM deployment, it is always possible to identify quick wins on one or more CRM areas that can be implemented right away © 2009, Fabio Cipriani. Some rights reserved
  13. 13. About me... Fabio Cipriani ● Author: ● “Corporate Blogging” – First book about web 2.0 in Brazil – 2nd edition released in 2008. ● Brand new title to be released 1st quarter of 2010 approaching Social Strategy and Social Media adoption paradox ● Academic Background ● Electronics Engineer and Master of Science in Wireless Systems ● Post-Laurea in Economy and Management of Small/Medium Businesses ● Project experiences ● Customer & Market Strategy developments and CRM implementations in Latin America and Europe ● More than 8 years working as Management Consultant for companies from multiple industries such as Consumer Business, Telecom, Technology and Manufacturing Except where otherwise noted, this work is licensed under http://creativecommons.org/licenses/by-nc-sa/3.0/ © 2009, Fabio Cipriani. Some rights reserved