1. Social Customer Service and CRM
Chapter 7
Social Customer Service and CRM

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Figure 7.1 The Elements of Social CRM

10. 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

11. 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

12. 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

13. 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

14. 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)

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

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

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

18. 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 slideshare.net/fhcipriani/social-crm-presentation
(accessed January 2012). Used with permission.

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

20. 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

21. Figure 7.7 The Characteristics of the Social Customer

22. 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

23. 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

24. How to Serve the Social Customer
Automated Response to (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

25. Figure 7.8 An Intelligent Autoresponder

26. 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

27. 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

28. 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?

29. 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?