A call for reviewing current CRM Strategy, Processes and Mindset throughout companies
- Concept
- Comparison with traditional CRM
- Benefits
- Approach for adoption
- How to put it to work
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Social CRM - Concept, Benefits and Approach to adopt
1. ? !
Social CRM
Concept, Benefits and
Approach to adopt
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 4Câs
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:
â˘Collaboration
â˘Community creation
â˘Conversation
â˘Creativity
Image source:
http://web2.socialcomputingmagazine.com/all_we_got_was_web_10_when_tim_bernerslee_actually_gave_us_w.htm
Š 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
Web 2.0 stimulated
fundamental changes in
consumer behavior
Interactions between
customer and brands starting
earlier and never ending
New behavior patterns
demand a new strategy,
better segmentation, new
channels and targeted
messages and review of
current customer facing
business processes
Š 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
Š 2008, Fabio Cipriani. Some rights reserved
5. Lets take a look at the fundamental changes that Social CRM is
introducing to the current, traditional CRM in terms ofâŚ
Landscape Channels Processes
⢠⢠Mi
Customer Customer cro
blo
⢠Price comparison website gs
Customer
⢠RSS ⢠Podcast
⢠Phone ⢠Phone
⢠⢠Fax ⢠Wikis
Fax
Customer Customer ⢠Email ⢠Email ⢠Social Networks
⢠Service ⢠Service
⢠Letters ⢠Letters
⢠Personal contact ⢠Personal contact ⢠Widgets
⢠Companyâs website ⢠Companyâs website
+
Customer ⢠Video sharing
Customer ⢠SMS ⢠SMS
⢠Instant Messenger ⢠Instant Messenger
⢠Chat ⢠Chat ⢠Photo sharing
⢠Media ⢠Media
Competitor Supplier / Partner
⢠Forums ⢠Auction website
Customer Customer ⢠Slides sharing
⢠Reviews and ratings in retail sites
⢠Wish lists
⢠Social Bookmarking
Your company
Customer Customer
Customer Customer
Mindset Technology
Š 2008, Fabio Cipriani. Some rights reserved
6. 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
Š 2008, Fabio Cipriani. Some rights reserved
7. Evolution of Customer Touch Points
CRM 1.0 CRM 2.0
⢠Blogs ⢠Microblogs
⢠Price comparison website
⢠RSS ⢠Podcast
⢠Phone ⢠Phone
⢠Wikis
⢠Fax ⢠Fax
⢠Social Networks
⢠Email ⢠Email
⢠Service ⢠Service
⢠Widgets
⢠Letters
+
⢠Letters ⢠Video sharing
⢠Personal contact ⢠Personal contact
⢠Companyâs website ⢠Photo sharing
⢠Companyâs website
⢠SMS ⢠SMS
⢠Instant Messenger ⢠Forums ⢠Auction website
⢠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 companyâs achieve. Besides internal information, the company must
base and data integration with internal systems rely on external information such as customer profiles in
⢠Company owns the data but it is limited to previous social networks and his behavior when participating in a
interactions community.
⢠Customer and other web 2.0 sites own part of the precious
data
Š 2008, Fabio Cipriani. Some rights reserved
8. Evolution of Business Processes Modeling
CRM 1.0 CRM 2.0
Targeting Establishing
need
impressions
Expansion
Acquisition
Decision
Sharing
Targeting
Expansion
Acquisition
Retention Experience
Retention
Customer Support processes
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 â include the conversation factor to
⢠Process centric â 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
Š 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 comes from one specialized source within the ⢠Innovation is gathered from all employees as they are
company (innovation group) closely connected to the final customer and to each other
via internal web 2.0 tools. Customers are in the center of
⢠Frontline employees communicate targeted messages for
transactional operations the innovation cycle.
⢠Frontline and non frontline employees engage
conversations including new customers in the context and
rerouting conversations. New set of employee skills
needed.
Š 2008, Fabio Cipriani. Some rights reserved
10. Evolution of Technology
CRM 1.0 CRM 2.0
Monitoring /
Interconnecting tools
Conversation tools Data
Customer mining
Owned
Data RSS Forums
Process Support
Account Management
Contact Management
Activity Management Blogs Widgets
Lead / Opp Management
Campaign Management
Sales Management
Service Management⌠APIs
Open Id
Podcast
Wikis
Social Networks Cloud
Computing
Brand monitoring
services
⢠CRM Solutions focused in automating and supporting ⢠CRM Solutions focused in community creation internal and
internal business processes externally
Š 2008, Fabio Cipriani. Some rights reserved
11. 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 companyâs strategy. It
affects thoroughly operations, its value chain and organizational structure
and culture,
⢠Social CRM introduces new value drivers into
the companyâs 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.
Š 2008, Fabio Cipriani. Some rights reserved
12. Putting Social CRM to work: Understand Social Influence in CRM
Building Blocks and transform it...
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
Š 2008, Fabio Cipriani. Some rights reserved
13. To support this transformation, go deeper in the âCompany life cycleâ
from the customer point of viewâŚ
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
Decision Selecting information is now owned by the user via tags, categories
and links. This is new taxonomy is called âfolksonomyâ
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
Š 2008, Fabio Cipriani. Some rights reserved
14. ...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
(monitor buzz, react to (touch points, segmentation, ⢠Train employees and close
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
Š 2008, Fabio Cipriani. Some rights reserved
15. Some foreseen benefits of Social CRM
â
Raise Marketing ROI thanks to better targeting, better product solution, customer
experience and word-of-mouth.
â
Gain insights to explore new market segments and improve marketing effectiveness
â
Identify new business opportunities and improve cross/up-sell abilities through
increasing contact with existing and potential customers
â
Cut sales commissions costs by building community around the brand
â
Increase R&D capabilities and innovation through tapping into the collective
intelligence of your target audience
â
Increase customer loyalty by promoting transparent dialogue and improving employee/
customer interaction efficiency
â
Decrease customer service costs through self-helping communities
Š 2008, Fabio Cipriani. Some rights reserved
16. This presentation has a sequel available on SlideShare.net
ď§ Why Social CRM?
ď§ Functional Architecture
ď§ Flow and Value of Interactions
ď§ What are CRM vendors doing to promote Social experience
ď§ Pre-requisites and business questions
This is what you have seen:
ď§ Concept
ď§ Comparison with traditional CRM
ď§ Benefits
ď§ Approach for adoption
ď§ How to put it to work
Š 2008, Fabio Cipriani. Some rights reserved
17. About me...
Fabio Cipriani
⢠Author:
â âCorporate Bloggingâ â First book about web
2.0 in Brazil â 2nd edition released in 2008.
â Brand new title to be released 1st quarter of
2010 approaching Social Strategy and Social
Media adoption paradox
⢠Academic Background
â Electronics Engineer and Master of Science in
Wireless Systems
â Post-Laurea in Economy and Management of
Small/Medium Businesses
⢠Project experiences
â Customer & Market Strategy developments
and CRM implementations in Latin America
and Europe
â 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-sa/3.0/
Š 2008, Fabio Cipriani. Some rights reserved