Few modern marketers dispute the value of social media and customer relationship management (CRM) technology. So, it no surprise that the two concepts have been combined to form social CRM.
Don’t groan. Social CRM is more than just a buzzword. Mitch Lieberman, Vice President, Strategic Solutions at SugarCRM provides an excellent definition:
“Social CRM is about bringing me [the social customer] into the ecosystem… It is not just about the technology, it is about the people, process and cultural shifts necessary to support and grow a business.”
Social CRM is not some completely new concept; it is about enhancing CRM to include customer’s social data as a core component of your marketing strategy. Social CRM is about building deep relationships. Social CRM is about putting the customer at the core of your company’s strategy.
Given the almost universal industry consensus that embracing social CRM (strategy, process and technology), it’s a little surprising that the MarketingSherpa’s social media benchmark survey of over 3,300 marketers found that 38% of respondents had not even began planning a social CRM initiative.
What’s keeping these marketers from embracing a concept they know to beneficial? It’s likely one of the many social CRM myths. These myths, while prevalent, have no more validity than schoolyard gossip. If one of these misconceptions has been holding you back, fear no more.
Myth 1: Social CRM = Social Media
Many organization do not adopt social CRM because they believe they are already doing it. However, social CRM requires more than installing a CRM package and setting up a profile on Facebook. Social CRM may leverage social media, but social media alone does not constitute social CRM adoption. Social CRM focuses on how you run your business. It is as Paul Greenberg, author of “CRM at the Speed of Light: Social CRM Strategies, Tools and Techniques for Engaging Your Customers,” said,
”the company’s response to the customer’s control of the conversation.”
Companies no longer own their brand image, customers do. If customer has a bad experience, they may post in on their Facebook wall or share it globally on Twitter. Most companies are simply not prepared to respond. However, with social CRM organizations are better prepared for the dialogue and have a deeper understanding of the social customer. Social CRM can speed the process of communicating, determining appropriate actions and executing those actions.
Myth 2: It’s Impossible to Measure ROI for Social CRM
In today’s financial environment, few companies are willing to invest in initiatives without justification, and calculating the return on investment (ROI) from social CRM can be challenging. In fact, it can sometimes seem impossible. There is no universally accepted approach to measuring social CRM ROI, but approaching it from a business strategy perspective can make the process a little clearer.
Your social CRM initiative (and any other initiative for that matter) should begin with defining concrete goals, identifying key performance indicators (KPIs) and determining current baseline metrics. KPIs can be traditional measures like the quantity of sales leads via social, the cost per lead and conversion rate. However, keep in mind that the measures may not represent the complete value of social CRM. You should also consider taking more ephemeral measures like customer loyalty and retention into account, which you can measure indirectly by calculating costs associated with getting or losing new customers.
Myth 3: Social CRM Is Just Another Software Package to Buy
Social media software providers that have rebranded themselves as social CRM software mavens dominate many social CRM conversations. However, as I’ve stated previously, social CRM is a business strategy, not a technology solution. Social CRM may be supported by tools, but ultimately it is about transforming how you do business to better engage your prospects and customers.
Have any of these myths been holding you back? Are there any other misconceptions you’ve discovered about social CRM? We would love to hear from you.