Learning Objectives

By the end of this chapter, you will be able to:

  • Define Social CRM and explain how it differs from traditional CRM.
  • Describe how Social CRM enhances customer relationships through listening and engagement.
  • Understand how social data can be used to create a more complete customer profile.
  • Identify the key challenges of implementing a Social CRM strategy.

From Traditional CRM to Social CRM

Social Customer Relationship Management (Social CRM) is the integration of social media channels and principles into traditional Customer Relationship Management (CRM) strategy and platforms. It represents a fundamental shift in how businesses manage their relationships with customers, moving from a company-controlled, transactional model to a collaborative, customer-powered model.

Social CRM integrates social media with customer management Figure 1: Social CRM Concept

The Evolution from Traditional CRM to Social CRM

flowchart LR
    subgraph TRAD["Traditional CRM"]
        T1["🗃️ Transaction Data"]
        T2["📞 Call Center"]
        T3["📧 Email"]
        T4["👤 Company Control"]
    end

    subgraph SOCIAL["Social CRM"]
        S1["💬 Social Conversations"]
        S2["👂 Social Listening"]
        S3["🤝 Engagement"]
        S4["👥 Customer Control"]
    end

    TRAD --> |"+ Social Data"| SOCIAL
    SOCIAL --> VIEW["🌍 360° Customer View"]

    style VIEW fill:#2d5016,color:#fff

Figure 2: Evolution from Traditional to Social CRM

  • Traditional CRM: Focused on collecting and managing transactional customer data (e.g., purchase history, contact information) that the company controls. Communication was typically one-way (from the company to the customer) or through controlled channels like a call center.

  • Social CRM: Acknowledges that the customer is now in control of the conversation. It involves monitoring and participating in conversations that are happening on public social media platforms. The goal is not just to manage a customer, but to engage with them and build a relationship through a two-way dialogue.

How Social CRM Enhances the Customer Relationship

Social CRM uses social computing to enhance the customer relationship in several key ways:

  1. Listening and Engagement The core of Social CRM is listening. Businesses use social monitoring tools to track mentions of their brand, products, and keywords across the social web. This allows them to engage directly with customers where they are having conversations.
    • Example: A customer tweets about a problem they are having with a product. The company’s social media team sees the tweet and responds publicly with a solution or an offer to help, demonstrating responsive customer service.

  2. Proactive Customer Service By listening to conversations, companies can identify potential customer service issues before they escalate. This allows them to be proactive rather than reactive. They can also identify common questions or problems and create content (like a tutorial video or FAQ) to address them.

  3. Building a Fuller Customer Profile Social CRM allows a business to enrich its traditional customer profiles with social data. By connecting a customer’s social media profile to their CRM record, a company can gain insights into their interests, their sentiment towards the brand, and their influence within their social network. This creates a more holistic, 360-degree view of the customer, which can be used for more effective personalization.

  4. Empowering Customers and Building Community Social CRM provides customers with a platform to interact not only with the brand but also with each other. This can foster a sense of community among users. Many companies create online communities or forums where customers can ask questions, share tips, and help each other solve problems. This not only improves customer satisfaction but can also reduce the burden on official support channels.

Challenges of Social CRM

While powerful, Social CRM also presents several challenges:

  • Volume of Data: The sheer volume of conversations happening on social media can be overwhelming to monitor and manage.
  • Loss of Control: Conversations are public and not controlled by the company. A negative comment or review can quickly go viral and damage the brand’s reputation.
  • Response Time Expectations: Customers on social media expect very fast, often near-instantaneous, responses to their queries or complaints.
  • Integration: Integrating unstructured social data with the structured data in a traditional CRM system can be a significant technical challenge.

Summary

Social CRM represents the evolution of customer management, shifting the focus from controlling transactions to engaging in conversations. By integrating social media listening and interaction into their CRM strategy, businesses can provide proactive customer service, build a richer 360-degree view of their customers, and foster a loyal community. However, this strategy requires companies to navigate the challenges of public conversations, high response expectations, and the sheer volume of social data.

Key Takeaways

  • Social CRM is the integration of social media with traditional CRM.
  • It shifts the focus from managing customers to engaging with them in a two-way dialogue.
  • Key benefits include proactive service, enhanced customer profiles, and community building.
  • Challenges include data volume, loss of control, and high customer expectations for response times.

Discussion Questions

  1. Why is a “360-degree view of the customer” so valuable to a business?
  2. Think of a brand that does a good job of Social CRM. What specific things do they do well?
  3. How should a company handle negative comments or a public complaint on its social media channels?