Social CRM - Functional Architecture and Interactions Flow

Social CRM

Building long-lasting links with customer through innovative experience and co-generating value with them

Fabio CiprianiJuly-2009

Functional Architecture and Interactions flow

? !

© 2009, Fabio Cipriani. Some rights reserved

For Social CRM overview and introduction, please browse my previous presentation available on SlideShare.net

Concept Comparison with traditional CRM Benefits Approach for adoption How to put it to work

Why Social CRM? Functional Architecture Flow and Value of Interactions What are CRM vendors doing to promote Social experience Pre-requisites and business questions

This is what you’ll see now:


Why CRM should start to think Social?

Because we live in a social world…• We are inserted in and surrounded by social communities,• We establish relationships based on conversations,• We struggle to be accepted by other groups,• We share our insights with like-minded peers and friends,• We make decisions based on suggestions from like-minded peers and friends.

PEOPLE more than everything else,

… and because customers are,

“By 2010, more than 60% of Fortune 1.000 companies will have some form of online community deployed for CRM purposes” – Gartner Group 1


Social CRM functional architecture

Marketing Sales Service

Face to facePhone /SMS

E-mailLetter

Fax

Website

BusinessPartner

Traditional CRM Processes

Traditional Channel Interface

Socially-enabledMarketing

Socially-enabledSales

Socially-enabledService

Social CRM Capability Layer

Social Channel Interface

Social Media should be seen as a communication channel with customers where Socially-enabled Marketing, Sales and Customer Service processes are performed to generate value

Internal Social Tools(Internal blogs, wikis, sharing platforms, social

networks, innovation portal, etc.)POS

Types of Market-aimed Social Tools

Market

Internal Collaboration tools


Types of interactions in the Social CRM landscape


networks, innovation portal, etc.)

Market

Customer-facingemployee

Socially-empowered employees

Monitoring / Data Mining

These interactions includes the company performing Social CRM involved in at least one side of the communication flow. They are B2B, B2C, C2B and internal interactions

These spontaneous interactions happens at the market side among customers (C2C), competitors and business partners

Market-centered social

interactions

Business-centered social

interactions

Social Marketin

g

SocialSales

Social Service

Customer-generated Social CRM

Market reactions on brand or industry

(outside-to-outside)

(inside-to-outsideinside-to-inside)


Business-centered interactions in Social CRM



Market



May be exploited by actively generating content such as a marketing campaigns or creation of specific pages in existing social platforms, also by being present on these social environments to answer market requests or complaints and even by connecting to people in search of new business opportunities

All interactions and brand-related references are monitored and its contents may be converted in specific customer experience / needs reports. This activity includes not only interactions resulted from company efforts, but also personal content generated by the company’s employees in their personal blogs, for example

Own Social Content consists of social platforms created and owned by the company. They can be branded or unbranded. Content is monitored, published and updated by specific employees according to the company’s social strategy

Internal Social Tools connects employees to themselves and is an open channel to share insights and stimulate collaboration. Via tagging and ranking the most valuable information is put in evidence and may help to address issues and shape new strategies, innovations or even improve current processes




Market-centered interactions in Social CRM

Market

These social actions are triggered by rewards or happen spontaneously. They are performed by customers, ex-customers and non-customers helping the company to spread market messages, identify leads via referrals and support customers on product issues and questions. These actions contribute positively to your company’s reputation and results. Company actions on Social CRM help to amplify the reverberation of this behavior

Listen. Stay informed about what people are saying and look for trends. By monitoring and analyzing the conversation about your company you can understand why customers are complaining or complimenting you. The next step is to join the conversation and get more insights on your customer’s experience.

Social Marketin

g

SocialSales

Social Service

These reactions happen spontaneously and are performed by customers and the market in general. The cause of these reactions could be the result of a good or bad customer experience with your company or competitors, or could have no specific cause at all. They serve as basis for very important customer insights and, depending on the content they have, it may affect positively or negatively your company’s reputation and results




Value generation from Social CRM interactions



Market




Social Marketin

g

SocialSales

Social Service



Benefit from spontaneous reactions from the

community by connecting like-minded peers

Improve customer intelligence by gathering

additional information from the market

Improve customer education and expertise

Make use of a low-cost strategy

Improve customer experience responsiveness

Enhance customer needs and wants understanding

Stimulate “interest” based marketing & advertising

Develop new revenue streams

Extend your reach within the social media channel

Attract new talent from the market

Efficient knowledge management

Increase internal collaboration

Establish new business connections

Encounter internal talent

Increase retention through strong morale and

commitment


Vendors’ solutions already started to integrate web 2.0 features and data into their CRM product portfolio. This generates value to several company areas

Focused on internal use for collaboration Use of tags to “label” the customer (e.g. tag=golf for executives who play golf) Content sharing capabilities (e.g. sales presentations) Virtual collaboration (e.g. wikis, CEO blogs, teams blogs, micro-messaging) Rating content (e.g. rating customers, leads, shared content, etc.)

Focused on connecting external parties Idea/Insights capturing (e.g. idea management system platform) Customer support via forums (e.g. message board platform) Tagging, rating and reviewing products in companies' e-shops Blogs for sales force (followed by their customers) Connection with 3rd party social networks (e.g. convert Facebook friends as

contacts, access a Facebook page directly from the application, obtain relevant information provided by the customer itself in Facebook: About me, Activities, Favorite Movies, Favorite Books, Favorite Music, Interests, etc., Amazon’s reviews, ratings, etc.)

Connection with Twitter for running campaigns directly from the CRM platform and listening and support current customers


But before you decide to go for Social CRM, there are many open questions drawing the line between going with the flow and extracting real CRM value from Social Media. These are just a few of them…

Is your front line productivity under

control?

Have your “social” employees received

proper training?

Are your social media efforts part of a broader

Social CRM / Social Media strategy or is it just an

random project?

Do you know how “social” are your

employees?

Are your processes and business rules adapted to encourage social behavior?

Are all of your social media efforts

integrated with your CRM system?

Are you able to track benefits and return on investment effectively?

Have you assessed all Corporate

Security concerns?


Becoming Social: Social CRM demands a Social transformation of your business

Social influence changes the traditional CRM building blocks, its supporting processes, IT infrastructure and demands companies to work towards a Social CRM vision composed by:

•Social Strategy,

•Social Operations and,

•Social Organization

Socialinfluence

Is imperative to understand the social influence on all CRM Building Blocks …

“By 2010, more than half of companies that have established an online community will fail to manage it as an agent of change, ultimately eroding customer value. Rushing into social-

computing initiatives without clearly defined benefits for both the company and customer will be the biggest cause of failure” – Gartner Group1

Strategy

Operations

Organization


However, to successfully adopt and generate value with Social CRM, there are a few pre-requisites that should be taken into account

• Understand Social CRM and Social tools, its characteristics, risks and business case

• Develop a proper Social Strategy comprising tools (wikis, social networks, twitter, etc.) and scope (monitor, engage conversations, get customers to collaborate, spread viral messages, etc.)

• Have a effective traditional CRM system in place

• Have processes mapped and well documented

• Have a project portfolio management in place to put all social initiatives linked together

• Have the CRM philosophy and its objectives already spread and well-known among employees

• Evaluate the organization’s readiness to embrace the principles of online collaboration

• Executive buy in and support

Even though the pre-requisites fulfillment and the current CRM maturity might affect the resulting roadmap to Social CRM deployment, it is always possible to identify quick wins on one or more CRM areas that can be implemented right away

Strategy

Operations

Organization


About me...

Fabio Cipriani• Author:

– “Corporate Blogging” – First book about web 2.0 in Brazil – 2nd edition released in 2008.

– Brand new title to be released 1st quarter of 2010 approaching Social Strategy and Social Media adoption paradox

• Academic Background– Electronics Engineer and Master of Science in

Wireless Systems– Post-Laurea in Economy and Management of

Small/Medium Businesses

• Project experiences– Customer & Market Strategy developments

and CRM implementations in Latin America and Europe

– 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 underhttp://creativecommons.org/licenses/by-nc-sa/3.0/