Social CRM

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Social CRM (Customer Relationship Management) is use of social media services, techniques and technology to enable organisations to engage with their customers. As an emerging discipline, interpretations of Social CRM vary, but the most frequently quoted definition is from Paul Greenberg:[1]

Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workflow, 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's the company's response to the customer's ownership of the conversation.

Applications of Social CRM[edit]

Social CRM has applications in marketing, customer service and sales, including:

  • Social Engagement with prospects: SocialCRM tools allow businesses to better engage with their customers by, for example, listening to sentiments about their products and services.
  • Social Customer Service: Ownership of social media is shifting away from Marketing and Communication as engagement increasingly relates to inbound customer service-based topics. Rather than social being seen purely as a space for companies to deliver outbound marketing messages, it is the inbound customer queries that allow for meaningful points of engagement and the building of brand advocacy.[2]

Traditional CRM and Social CRM[edit]

Traditional Customer Relationship Management focuses on collecting and managing static customer data, such as past purchase information, contact history and customer demographics. This information is often sourced from email and phone interactions, commonly limited to direct interactions between the company and the customer.

Social CRM adds a deeper layer of information onto traditional CRM by adding data derived from social networks like Facebook, Twitter, LinkedIn or any other social network where a user publicly shares information. The key benefit of Social CRM is the ability for companies to interact with customers in a multichannel retailing environment (commonly referred to as omnichannel) and talk to customers the way they talk to each other. [3] Social CRM enables companies to track a customer's social influence and source data from conversations occurring outside of formal, direct communication.

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