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Social CRM: Tips for effective customer relationship management in a Web 2.0 world
Customer relationship management has changed both from a technical and a management perspective with newer Web 2.0 technologies. In considering CRM in relation to Web 2.0, first it is important to understand that CRM is first and foremost a management solution, not a technical solution. Web 2.0 technologies are making CRM far more efficient, and allow CRM implementers to have many more strategies and tactics at their disposal.
Web 2.0 applications-blogs, podcasts, wikis, social media tools, etc.-help promote good customer relationship management in many ways. The idea behind bringing Web 2.0 into CRM is to engage the customer to a greater extent than was previously possible, typically delivering multiple channels for customer interaction. This in itself has always been a tenet of good CRM, as is giving the customer more than one channel for interaction has always been good business. Social CRM-the merging of CRM and Web 2.0 technologies-builds on that concept, and offers boundless benefits.
Take, for example, a blog: a very basic Web 2.0 technology. Traditional CRM revolves around a more formalized set of customer interactions, and while the blog is casual, it can be an excellent CRM supplement. The blog has become an essential customer communication tool, and most companies now have an official corporate blog, which is used to communicate information to customers and potential customers. And what’s more important is that a blog is a two-way device for communication, and that’s where it’s real CRM value comes in. Because customers and potential customers can easily respond to the blog posts, management gains a valuable tool for getting customer insight and feedback on their products, services and initiatives. Informal social networking devices like the blog promote an informal, free flow of information and interaction, which is of tremendous value to the company.
Going beyond the two-way communication of the blog, which promotes communication between customer and company, an even broader level of communication can be facilitated with other tools such as online forums, where customers can also communicate with one another. Many companies have implemented user groups with great success, which not only serve the purpose of allowing customers to communicate with one another, they also can be monitored by the company to get valuable feedback.
Social networking too, has evolved beyond being purely leisurely in nature, and many forward-thinking companies are making good use of social tools such as Twitter, Facebook, and YouTube. Using these channels to create online communities and promotional outlets, companies can keep customers informed, receive feedback, and communicate important messages in an informal manner that is more likely to be easily received.
If you treat you customers as individuals rather than as a part of a buying unit, they are more likely to make repeat purchases and recommend your company to their friends. Social CRM is all about increasing loyalty by communicating with customers on a more personal level, and you can’t afford to miss out!
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