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July 06, 2009

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Dynamics CRM Training

Pretty much CRM is just following the same movement as traditional media uses are moving to online/the internet. And SCRM is just the evolution which keeps a firm tab on the strength and value of relationships

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systems that will rely on Social CRM but be lots more. And they are coming in the next 5-8 years (before you laugh, remember that I wrote about collaborative customer service, social-powered customer service, and real-time customer service some 5-6 years ago Sección Amarilla

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I think that the trying to choose what I have phoning it. I also think that I arrived at the position that though there is no one perspective, there is a common strategy of what I have.

Rick Bellefond

Hey Paul,

Great post! I especially like your short definition of what sCRM is. I think it is important to do this since it seems like if you ask 10 people to define what CRM is you get 10 definitions.

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that's really a fantastic post ! added to my favourite blogs list.. I have been reading your blog last couple of weeks and enjoy every bit. Thanks.

louis

Here is my attempt to be short. I think you have nailed the definition and the current state, and the state in the next 2-3 years, of CRM. Social CRM is as good a term as any (I never liked CRM 2.0, albeit in my recollection of the Gartner days we should be at 6.0 or something by now). And it clearly defines where we are going for the next 2-3 years.

patrickdh

Well said - it's a good time to move on, and I agree from your definition that SCRM is not CRM. SCRM has already morphed some basic principles of CRM, but the paradigm shift has yet to happen. Just as Cloud computing was a paradigm shift from mainframe to client–server technologies, in this case, scrm send us the message that we may not have to wait for vendors, the enterprise or Gartner's Magic quadrant, to actually determine how we manage interactions to the customer's influence outside of traditional boundaries. MIB anyway?

Paul Sunny Park

I have the opinion that CRM gathers customer information from customer transactions, but SCRM takes customer information from customer interactions. This means SCRM has the wider and deeper information source than CRM.

Derek Major

I find it really interesting how a lot of people are so intent on tying Social Media to CRM. This might come down to CRM vendors biting off more than they can chew is what I am thinking.

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I think that is not the the real problem, after all theres more important thing in this situation.

Intelestream Inc

SocialCRM is definitely gaining ground. Intelestream just published a whitepaper that deals with Social CRM in the context of small businesses. Read it at http://www.intelestream.net/en/whitepapers/the-power-of-social-crm.html

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CRM should be implemented in all companies, should be a general rule ...

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Here is my attempt to be short. I think you have nailed the definition and the current state, and the state in the next 2-3 years, of CRM. Social CRM is as good a term as any (I never liked CRM 2.0, albeit in my recollection of the Gartner days we should be at 6.0 or something by now). And it clearly defines where we are going for the next 2-3 years.

GoldMine Software

Hi Paul,

Interesting post. Social CRM is a fascinating topic.

Thanks for you insight. It is very helpful for those of us trying to help our clients plan for the future.

Microsoft CRM Implementation

Social CRM arise after evolution of Web 2.0 social networking sites. I guess it is more useful for e-commerce sites rather than b2b...

marco ten vaanholt

Paul how is Social CRM different from Network Relationship Management ? I would like to have a deep discussion with you about this if possible

Marco ten Vaanholt
SAP Community Network

David Beard


Exquisite post, Paul ...

I'm a firm believer in the "art of CRM" - into the business models under execution, linked across to the social psychology of company & the people to whom they sell.

To me, it's obvious. Any CRM strategy needs to be company-wide & have employees at its' heart. Anything less just dilutes strategic effort & spend.

-= David
http://dpp.sagecrm.com/blogs/talking_about_customers/

Mickey Brazeal

Excellent post. Shortest and clearest explanation to date.

Graham Hill

Hi Paul

Really great post.

A few supporting comments, based on your numbering:

2. Customers have always talked to other customers about their experiences with companies’ products and services. The internet and particularly, the mobile internet have simply turbocharged what has been going on all along.

3. Social CRM provides companies with tools to listen-in on some of these conversations and to harness customers for marketing, sales and service. It extends CRM from being something predominantly inside-out, to something that extends out into the conversations that customers are having between themselves.

5. Marketers haven’t helped this by continuing to spam customers with increasingly irrelevant communications. This ‘tragedy of the marketing commons’ means that marketers have to try even harder to reach a dwindling audience with communications no-one believes. No wonder that customers prefer to trust their friends and family.

8. If we want to engage customers we need to really understand what they need. And I don’t mean VoC programmes. Evidence suggests VoC doesn’t work. I mean understanding the jobs customers are trying to do and the outcomes they are trying to achieve by doing them. This is best practice in understanding customer needs today.

10. Once we understand what customers need, we can innovate around delivering exactly that using customer-centric innovation approaches such as that developed by Strategyn. And we can use service-dominant logic to provide experience platforms that allow customers to co-create value together with companies. Co-creating value with customers is the modern definition of customer-centricity.

13. Once companies start to think about co-creating value with customers, they must also think about improving their customers’ knowledge so that they can co-create more value and also, embedding skills and experience in the design of products and services themselves so that they are much easier to use. This is where Design Thinking comes in.

15. Just as in traditional CRM, information about customers is key. That obviously includes the usual Social CRM sources like blogs, tweets and what not. But more importantly, it also includes information about customer social networks. Mobile telcos have been working with SNA analysts like Xtract to identify the most influential customers and their calling communities. And to greatly increase the effectiveness of retention campaigns and new product introductions.

17. Customer value obviously changes in a networked world. The customer’s own CLV is supplemented by their Customer Referral Value. But a customer’s CRV has only a weak relationship to their CLV. And there is an even weaker relationship between referred customers and incremental value. Take note all you NPS promoters. And that’s not the whole story. CLV and CRV are also supplemented by the value of the network to attract other customers and sellers to it. Especially in today’s multi-sided markets.

As I said at the beginning. Great post. I look forward to continuing the conversation. Through Social media of course, what else.

Graham Hill
Customer-centric Innovator

Anthony Nemelka

Great post Paul. We know what it is and we know what it's called. Now we can put all our collective energy into making it work!

Esteban Kolsky

I am going to try to be short, but will probably fail. I read your post three times, took notes, and made comments on my notes. Yes, I am that geeky -- and yes, this is a defining moment for SCRM the way I see it. You are one of the most influential minds in this small world of enterprise apps, your word carries more weight than you can probably imagine (although I am certain you know that already).

Now, let me tell you where you are wrong (just kidding).

Here is my attempt to be short. I think you have nailed the definition and the current state, and the state in the next 2-3 years, of CRM. Social CRM is as good a term as any (I never liked CRM 2.0, albeit in my recollection of the Gartner days we should be at 6.0 or something by now). And it clearly defines where we are going for the next 2-3 years.

However, I am trained and always think a little bit ahead of that. Five years. Why? I am a strategist, that is what I do. I don't know why, I always start focusing on the 5+ years.

And it is at that time that I see some cracks on this. Let me explain. I see lots of changes happening, in societies, in world economies, in culture, in the way we act, talk, and conduct ourselves. All this is leading to a Paradigm Shift in the world, demonstrated by three trends.

Trend one is the change in societal models. In the early 1800s we had the industrial revolution, which brought the ability to work more with the same or less effort. Then in the early 1900s we had the manufacturing revolution, which made all that work better focused and easier to produce mass products cheaper, easier, faster. Of course, with mass production we also had the coming of Customer Service - assisting customers that had extraordinary problems that manufacturing could not solve. LAter, in the late 1970s, early 1980s we had the Service revolution, where products were no longer relevant, the service that accompanied them was. This is the time when mega-corporations grew to control the world, globalization started (yes, the financial meltdown that we are experiencing today started then as well - but no relation). Technology has been progressing along with each of these revolutions. Then the internet became massively adopted (1995-1996), which culminated with three key things: aggregate knowledge, universal access, and group-think. Which brings us to where we are today: a dying service economy, or at least one we mastered, with great technologies and in need of cultural changes to take advantage of that.

Which brings us to Trend two -- the cultural and generational shift happening right now. In the late 1980s we saw the first people who had been trained in college with computers enter the workforce. That changed the nature of business ever since. Productivity has been increasing for the USA since then, even through recessions, wars, and other disasters. Which is quite amazing considering the decline of productivity during WWII and Vietnam wars. Similar progress has been seen since then across the world, as measured in GDP growth for some of the poorer countries in the world. That was part of the Gen-X / Gen-Y generational shift. Today we are starting to see the first digital citizens enter the workforce (people who grew up their entire conscientious life with access to technology and the internet). These digital citizens will change the nature of business ever more rapidly and more dramatically than the previous generations - if anything by the nature of the Internet. They are used to the things that the internet brought about: knowledge, access, community-mentality. This is a very important shift in culture that brings us to trend number three.

Trend three is a shift in business and commerce models. The old one-to-one merchant-customer relationship no longer exists. It is being replaced with a many-to-many model that relies on communities, knowledge, influence, trust, reputation -- and the individual power aggregated multiple times (a community mentality). It is this community mentality that will span a brand new set of systems that will rely on Social CRM but be lots more. And they are coming in the next 5-8 years (before you laugh, remember that I wrote about collaborative customer service, social-powered customer service, and real-time customer service some 5-6 years ago).

So, I think that the Social CRM model is a great model for the interim that is going to take to go from today's management of relationships, to tomorrow's community interaction. Alas, once we get to that, the data models we have today, the systems, the way they work won't be that good anymore. I do have a model in mind, a Community Enablement Platform, but that is fodder for another dicussion - not on Social CRM.

I really like the way you rationalized the transition, and I think you make great points along the way (point #2, the customer does not own the organization, point #5, regarding trust). And I am not going to argue the definition or berate you for participating or not in it. I am fine, as I said, with you being the flag-bearer on this as you are more qualified than most other people.

I am trying to focus more on the "what we need to do make this happen" thing you mentioned in your blog. I think that we need to take a longer-term view of what it means to be social, and focus a little bit more on the community.

Thanks for posting this, and for providing the platform for my ramblings (feel free to delete if you don't like it).

Paul Ward

Social CRM acknowledges that company equity is created or destroyed by processes outside of the traditional corporate boundaries. Have I shown you my Five Forces of Customer Experience? The takeaway is MIB: Manage what you can, influence what you cannot directly manage, and balance what you can neither manage nor influence. These three need to be core corporate competences (management, partner and customer attitudes and beliefs often using social media tools, and crisis communications).

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