Success and Failure in the Time of Social

Michael Krigsman Asuret, Inc. 617‐905‐5950 mkrigsman@asuret.com Twitter: @mkrigsman

Esteban Kolsky thinkJar 913‐256‐5759 esteban@thinkJar.net Twitter: @ekolsky

#crm

#scrm

#itfail

What is Social CRM?
“Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. It is the company's programmatic response to the customer's control of the conversation.” ̶  Paul Greenberg

What is Traditional CRM?
Definition of CRM (from Mitch Lieberman):  Core contact management

Name, address, phone, email Orders, invoices, issues, communications Prospects, Leads, Opportunities, Campaigns

 

Place to store transactions and history

Place to manage future business/pipeline

Key Differences Exist…
Traditional CRM Operational Controlling the customer Hierarchical Social CRM Relationship-based Customer is in control Collaborative

Plus ça change, plus c'est la même chose

The more things change, the more they stay the same
 

History repeats itself Social CRM builds on traditional, operational CRM Examining the past helps explain and predict the future

Failure persists and lessons must be learned

Social CRM CRM

Understanding CRM failure

Traditional CRM failure rates
      

Gartner 2001: 50% Butler Group 2002: 70% Selling Power, CSO Forum 2002: 69.3% AMR Research 2005: 18% AMR Research 2006: 31% AMR Research 2007: 29% Forrester Research 2009: 47%

.

Failures persist despite millions  invested in prevention. Why?

It’s easy to ignore warning signs

CRM Success Environment
People and project – not technology

© Copyright 2010 Asuret Inc. All rights reserved. © Copyright 2010 Asuret Inc. All rights reserved.

Devil’s Triangle
Dysfunctional industry structure creates overlapping and conflicting agendas

Devil’s Triangle
Conflicts of interest are embedded in the enterprise  software industry (including CRM) 
Confused buyers Silos and internal disputes

Wacky system integrators Customer success vs. consulting revenue

Schizophrenic software vendors Loyalties split between customers and integrators

People talk about stopping CRM failure

Talk is cheap

And creates… Train wrecks of business  disruption and waste

Social CRM is Different

Mostly, because as we evolve…

…this does not work anymore.

Social media is about conversation…

...listening carefully...

…engaging…

…and collaborating together.

Failure: Poor engagement with customers

Transition from operational to engaged metrics
 

Need to change measurement, incorporate Social KPI Goals, objectives are still CRM‐driven, but accommodate Social x Lack of engagement drives other problems Difficult to measure “Return on Engagement” Trust creates long‐term loyalty, return business Trust does not facilitate success; traditional failure points remain Openness, transparency, trust, conversations Not mandatory, but desirable

Social projects require engaged conversation
 

Disengaged companies do not create trust
 

Social business means evolution
 

Social CRM success environment
Feedback Transparency Engagement Brand Equity

Conversation

Collaboration

© Copyright 2010 Asuret Inc. All rights reserved.

Examples of Social CRM success

MySpace
 

Faced with failing customer service, rebuilt based on communities Recognized that listening to customers is mission critical Nike+ built a community for sharing data and info, create buzz Flexible on goals and plans essential Several ongoing projects aimed to spread brand, build loyalty Coordination among stakeholders critical to success Using multiple channels to leverage “ambassadors” (advocates) Bridging gap between social culture and social technology was key

Nike
 

Starbucks
 

Levi’s
 

Achieving SCRM success Is easier said than done

Key Lessons

Engage, internally and externally
 

Gather feedback and opinions Listen, learn, grow Kumbaya feels good but doesn’t further business People don’t want relationships, they want engaged commitment Not about technology Not about processes Not about measurement (but business‐oriented metrics are important) Stand‐alone, siloed Social CRM means failure before starting Add social objectives, goals, needs, and wants to CRM

Keep goals in mind
 

Social is about people
  

Don’t Replace CRM, Extend it with Social
 

For more information contact: Michael Krigsman, CEO Asuret Inc.
Email: mkrigsman@asuret.com Web: http://asuret.com Blog: http://blogs.zdnet.com/projectfailures Twitter: http://twitter.com/mkrigsman + 1 (617) 905‐5950

Esteban Kolsky thinkJar
Email: esteban@thinkJar.net Blog: http://www.estebankolsky.com/ Twitter: http://twitter.com/ekolsky +1 (913) 256‐5759

All slides © Copyright 2009 Asuret Inc. and thinkjar LLC. All rights reserved.

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