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Greenberg (2009, p. 34) defines SCRM as: '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 programmatic response to the customer’s control of the conversation'.
In essence, SCRM is the fusion of social media and customer relationship management. It combines the conceptual elements of social media and CRM: social networks, communication technology, communities, strategy, customer value, and relationships.
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.
- Personalized Marketing Strategy: The ability to create custom content is increasingly dependent on access to reliable, qualitative social user data to facilitate precise audience segmentation. Furthermore, dynamic audience segments, built on both social data and demographic data, allow for more accurate measurement of campaign KPIs.
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. Social CRM enables companies to track a customer's social influence and source data from conversations occurring outside of formal, direct communication. Social CRM also allows companies to keep a full audit history of all customer interactions, regardless of social channel they choose to use, available to all customer care employees.
Social CRM metrics in applications
Metrics for building awareness:
- web traffic
- search volume trends
- volume of followers
- social mentions
Metrics for increasing sales:
- website traffic
- social mentions
- volume of followers
- repeat visits
- social content acceptance rate
Metrics for assessing changes environment in an industry:
- Share of Voice: how much of the overall voice a single brand consumes.
- Customer experience management
- Natural language processing
- Sentiment analysis
- Social analytics
- Social Selling
- Text analytics
- Text mining
- Unstructured data
- Voice of the customer
- "Why integrating social data is essential for a single view of your customers". 2015-07-01. Retrieved 2015-07-01.
- Greenberg, Paul (2009). CRM at the speed of light: Social CRM strategies, tools and techniques. New York, USA: McGraw-Hill.
- Swarts, Kevin M.; Lehman, Kim; Lewis, Gemma K. (2016-01-27). "The use of social customer relationship management by building contractors: evidence from Tasmania". Construction Management and Economics. 34 (4–5): 302–316. doi:10.1080/01446193.2015.1133919. ISSN 0144-6193.
- "The Definitive Guide to Social Customer Service".
- "Social CRM Brand Embassy".
- "Sentiment Social CRM".
- Castronovo, C. and Huang, L. (2012). Social Media in an Alternative Marketing Communication Model. Journal of Marketing Development and Competitiveness, 6(1), pp.117-131.