Social Customer Service and CRM Chapter 7 Social Customer Service and CRM

Learning Objectives Define CRM, and social CRM (SCRM) Describe the major types of customer interactions with companies Describe the evolution of CRM to SCRM Define social customers and describe how they can be served Describe how social CRM works inside the enterprise Describe unique and innovative applications of SCRM Describe social CRM strategy and implementation issues.

Opening Case: Sony Uses Social Media for Improved CRM The Problem Strong competition during economic slowdown Competition is mostly on service Solution: created social community site Hub for customer support: idea board, blogs, discussion groups, consumer-generated content Twitter feeds are also used

Opening Case: Sony Uses Social Media for Improved CRM Sony Europe – Social Activities Created brand communities for consumers and employees YouTube products’ training videos Monitoring and analyzing customers’ communications Support networks: Facebook, Twitter, Pinterest and YouTube

Opening Case: Sony Uses Social Media for Improved CRM The Results Increased ‘clicks’ on products Increased trust in the company Increased page view and conversion rate Combine marketing promotions and customer service

Lessons Learned from this Case Using social media for outstanding customer service It can be strategic differentiator Social media used: social network pages, blogs, Twitter, etc. Improve communication and interactions Supported conversation-based communication

Definitions and Concepts of CRM, e-CRM, and Social CRM How Social Networks Empower Customers Example: How Facebook’s Chorus Ended the Instrument Luggage Ban at Qantas Airways of Australia Video: “United Break Guitars” at youtube.com/watch?v=5YGe4zOqozo Defining CRM and e-CRM

Definitions and Concepts of CRM, e-CRM, and Social CRM Defining CRM and e-CRM Customer relationship management (CRM)* Electronic customer relationship management (e-CRM)* or CRM 1.0* Social customer relationship management (SCRM)* or CRM 2.0* The Elements of Social CRM

Figure 7.1 The Elements of Social CRM

Definitions and Concepts of CRM, e-CRM, and Social CRM The Benefits of Social CRM For Customers Quick problem resolution and better information Better collaboration, satisfaction, and engagements For Vendors Improve vendors’ reputation Rapid collection of feedback for products’ design and customer service Improve marketing effectiveness and sales The Projected Growth of Social CRM

Definitions and Concepts of CRM, e-CRM, and Social CRM Characteristics of Social CRM Engage customers in collaborative conversations Support optimization of customers’ experiences Help in building trust and loyalty Mostly one-on-one relationship Provide benefits to sellers Customer- driven new communication channels Customers create content (e.g., reviews, recommendations) Customers control the process

A CRM Model for Customer Interactions The Patricia Seybold Group Model for Customer Interactions Customer-facing applications Customer-touching applications Customer-centric intelligence applications Online networking applications

A CRM Model for Customer Interactions Customer-Facing Applications Customer Interaction Centers (CIC)* Customers Interaction Centers Example: iRobot (multichannel interactions) Using social media for multichannel CRM Serving the customers while learning from them Specific social media activities Benefits to the customers and the company

The Evolution of Social CRM Cipriani’s Multidimensional Presentation Landscape differences: Structure, focus, relationship with the community (Figure 7.2) Touch points: Additional interaction by CRM 2 (Figure 7.3) Different Business processes: In CRM 2, start from customers’ needs (Figure 7.4) Different technology: Tools for better interactions (Figure 7.5) Different organizational Mindset (Figure 7.6)

Figure 7.2 The Landscape of CRM vs. SCRM Source: Courtesy of F. Ciprianni, Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (accessed January 2012). Used with permission.

Figure 7.3 Touchpoints of CRM vs. SCRM Source: Courtesy of F. Ciprianni, Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (accessed January 2012). Used with permission.

Figure 7.4 The Evolution of Business Processes in SCRM Source: Courtesy of F. Ciprianni, Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (accessed January 2012). Used with permission.

Figure 7.5 The Evolution of Technology from CRM to SCRM Source: Courtesy of F. Ciprianni, Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (accessed January 2012). Used with permission.

Figure 7.6 The Organizational Mindset for SCRM Source: Courtesy of F. Ciprianni, Social CRM: Concept, Benefits, and Approach to Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (accessed January 2012). Used with permission.

How to Serve the Social Customer Social customers* The social customer (Figure 7.7) has particular needs and characteristics More knowledgeable uses social networking and shares opinions Can use the power of the crowd (e.g., United Break Guitars) New behavior patterns of customers (Figure 7.7) New vendors’ strategy is needed

Figure 7.7 The Characteristics of the Social Customer

How to Serve the Social Customer Implementation of Social Customer Service and CRM Several models and vendors exist Extensive use of communities Example: How Safeway Provides Social Customer Service Customers club Dissemination of information Discounts Facebook presence Video: ““Safeway Just for U™ Shopper Tip: Easy Sign Up” at youtube.com/watch?v=VaRnJCZVBtw&list=PL2D85D3BE900AA5CB&index=2

How to Serve the Social Customer How Social CRM Works—Problems and Solutions Improving the Websites Some Social CRM Tools Video: “Social CRM: Business Technology Whiteboard” at youtube.com/watch?v=8ZbPqyzlC_0

How to Serve the Social Customer Automated Response to E-Mail (Autoresponder) Improving the Call Center Automated Live Chat Live chat (with human, or avatar, Twitter) and other tools Using Microblogging Product review sites Monitoring and Analyzing Social Media Reviews

Figure 7.8 An Intelligent Autoresponder

Social CRM in the Enterprise Social CRM in the Enterprise and B2B Environments Salespeople Benefit from Social Media Challenges Facing Salespeople Today The Contribution of Social CRM Sales Force Automation and Chatter of Salesforce Inc. Sales force automation (SFA)* Field Service Automation

Special Applications and Issues in Social CRM Social Networking Helps Customer Service in Small Companies Customer-Touching Applications Personalized Web Pages and Blogs Web Self-Service Self-Configuration, Customization, and Co-Design Provide for co-design (e.g., using crowdsourcing) Customer-Centric Applications Analytics Tools

Strategy and Implementation Issues of Social CRM Social CRM Strategy Complex issue depended on many variables How to integrate social media into traditional CRM? Managing reactive versus proactive customer service How to handle negative comments?

Strategy and Implementation Issues of Social CRM Use in small enterprises: Get feedback from customers, encourage customer-to-customer discussions How to conduct CRM analysis? Justifying social CRM How to deliver mobile CRM? How to select vendors and products?