to the age o Social CRM, a dierent way o thinking aboutcustomer relationship management that ocuses on using social media to enhancecustomer engagement. How prepared are companies to make this shit? Despite wide-spread adoption o social media, or most, Social CRM is still in its early stages,execution is patchy and concerns about ROI remain. To ully exploit the power o socialmedia to connect with customers, organizations need to move beyond isolated projectsto integrated programs and, ultimately, a Social CRM strategy.
According to the IBM 2010 CEO study, getting closer tocustomers is the overwhelming top priority or CEOs.
It’s no wonder then that the pressure to exploit social media is soerce. It is ideally suited or customer collaboration and oersopportunities or reach, access and immediacy that simply don’t exist with other channels. By the end o 2010, nearly 80percent o the companies we surveyed, anxious to interact withcustomers where they are congregating virtually, had apresence on a social networking site and were aggressively launching social media initiatives. But do companies have thestrategies needed to make these eorts fourish? As the next generation or customer relationship management,Social CRM is gaining momentum. Traditional CRM strategy ocuses on management solutions or channels such ascorporate Web sites, call centers, and brick and mortarlocations. With Social CRM, these strategies now take intoaccount the dynamics o the community-based environmentthat denes social media – an environment in which control o the relationship has shited to the customer, who has the powerto infuence others in his or her social network.
By Carolyn Heller Baird and Gautam Parasnis
To gauge companies’ current Social CRM progression andtheir ability to provide the value customers seek in a socialplatorm, the IBM Institute or Business Value conducted twoonline surveys. One went to 351 executives rom unctions where the responsibility or social media typically resides. Theother was issued to more than 1,000 consumers to shed lighton why they engage with businesses and how these interactionsaect their eelings o brand loyalty (see Appendix or study methodology). When we evaluated consumers’ responses against those romexecutives, we uncovered some surprising perception gapsbetween the two groups. As highlighted in the rst paper o this series, “From social media to Social CRM: Whatcustomers want,” the search or tangible value – coupons,discounts, etc. – is what triggers most consumers to seek out acompany via social media. Executives, on the other hand, say this is the least likely reason customers interact with them; andthey signicantly overestimate consumers’ desire to engage sothey can eel connected to the company or brand. Additionally, while 70 percent o businesses believe social media willincrease customer advocacy, only 38 percent o consumersagree, suggesting businesses are more optimistic than perhapsthey should be.