Social CRM- Wrap Up

Over the past few years we have seen a monumental change in the way consumers behave, the way they interact with brands and the way they find out about the brands. Customer relationship management is no longer one dimensional it is multi-dimensional. It has moved from phone calls, to various social media channels across the internet.
In today's even more connected internet world it of utmost importance that companies manage their customer interactions even more effectively. 

In a recent interview with the owner of Wooster Street Social-a tattoo shop in New York, where the popular TV show "NY INK" is based, the owner mentioned how important CRM. A customer at the shop overheard one of the staff members saying "this is not the place for me to work" and in a matter of time he put it on his social media accounts. This news in a matter of seconds became viral about how "Wooster Street Social is not a good tattoo shop". 

The above mentioned example illustrates the importance of customer relationship management offline and online and the inter-relatedness of the two. 

Social CRM tools similar to the ones developed by www.salesforce.com are helping companies manage the chatter online, guide the conversation in a more streamlined way and try and identify the source of bad chatter. 

Amongst other things the tool also helps calculate the ROI on the investment. This is also important because companies who spend money on this tool want to know whether it was worth it or no. 

Hence, as we have seen over the last few weeks SCRM is a very important tool that companies will have to deploy if the want to if not be on top but at least try and be on top of their customer interaction. 

Each day there are millions of tweets send out, millions of status updates and thousands of blog updates..if you were the CEO of a company don't you think it is important to try and manage customer interactions more effectively? 

Overcoming Social CRM Risks in 3 STEPS

Switching to Social CRM can be a hassle for the company and if it is not done properly it can take a toll on valuable resources such as time and money.  Even though the idea of gaining intimacy with their customers through Social CRM might seem attractive it can also be overwhelming if not done properly.  Among the main challenges that many companies have faced when implementing Social CRM we can find: time consuming to implement, slow time response, overloading with irrelevant information, software and business incompatibilities, taking interaction personal, lack of training and/or shift in customer oriented approach, customers do not see results from interactions. 

Instead of eating the whole pie in one bite (which can be overwhelming!!!), it will be easier to eat it if you cut the pie into three pieces.  Just like the cutting the pie, we propose three steps on how to overcome the main challenges mentioned above:

1. Adapt: Social media channels are constantly changing and customers are constantly adapting to them and may be hard to keep up with this changes.  So the company has to be flexible enough to constantly seek how this client-customer interaction is evolving.  This means that companies will have to go out of their comfort zone and tap other into communication channels not previously explored by the company such as Twitter, Facebook, MySpace.  The company needs to adapt to a new two-way communication channel where it is important to interact constantly. Moreover, the shift into a customer approach has to be engrained to the company's vision and culture.

2. Set the stage: If the company is not used to managing clients or is ready to upgrade to Social CRM this may take some time.  Sometimes softwares may be hard to use and setting stages for implementation may be helpful.  In addition you may need to consider training for employees, collecting data and help your clients learn this new communicating channel.

3. Keep it simple and relevant: The company will have tons of information available and may be overwhelming to sort everything out.  It is important to have a clear understanding on what information is relevant that will help the company improve their customer service and ultimately positively influence their bottom line. Also, the simpler the company can keep communication with their clients the company will get a higher quality of information.  Lastly, it is important for the company to seek for a Social CRM program that will blend in ecologically with the company's culture, a very sophisticated and advance software will not blend in very well with a company who is starting to shift focus on Social CRM.  

Social CRM in the banking and insurance industry

Social CRM has boomed in recent times and plays an increasingly important part on everyone’s screens both private and professional ones, particularly when it comes to mitigating complaints on FMCG, technological appliances, flights, holidays and the like.

But what about industries that are bound by professional secrecy? How does social CRM fit into the banking sector and in how far have insurance companies started to adopt this new paradigm of engaging with their clients?

In the financial services industry, particularly in the banking sector, social CRM seems a touchy subject to start off with. Banks fear about their reputation and clients about their privacy. Nevertheless, social CRM can lead to significant competitive advantages when implemented correctly. Particularly their younger customers, the “generation Y”, will have a tendency to relate to banks in as much as they relate to other brands. Hence, it will be crucial to offer these customers the two-way-communication platforms they will soon expect to be part of their client service experience.

What is crucial however is the determination of the bank’s strategy in this respect:

-        What exactly are our goals in this respect?

-        How much do we plan to invest?

-        What ROI do we expect?

-        Who are the customers we are trying to target and how do we satisfy their needs?

-        How do we implement our social CRM initiative and which channels do we use?

The latter could for instance refer to a blog about special deals or providing on-the-spot-customer-assistance. Additionally, the bank could provide trainings or particular advertising campaigns via YouTube and the like.

 

Additionally, it is important to assess any risks the new initiative could bring about:

 

-        How do we test the new system for security purposes?

-        What are the requirements to be fulfilled in terms of regulations and controls?

-        How can we audit the effectiveness of the social CRM initiative?

Finally, the bank will have to clarify some organisational matters, such as:

-        How to communicate the initiative to the market?

-        Does our corporate culture actually support this new paradigm/ are employees sufficiently committed and sociable?

-        Who will be the key staff actively engaging in social CRM?

-        How will the new platform be tested?

-        Has staff received sufficient training to engage in social CRM with confidence, whilst being aware of limitations regarding privacy and confidentiality?

 

In the wake of the financial crisis, rebuilding customers’ trust is key in the banking industry, requiring out-of the-ordinary initiatives to restore clients’ loyalty and to gain market share. Subject to careful implementation, social CRM can provide a competitive edge, as several institutions such as Bank of America, Deutsche Bank and Caja Navarra have already experienced.

Like any other firms, insurance companies can of course focus on social CRM in order to target their campaigns in a more specific manner following pre-defined measures, again particularly applying to the “generation Y”, the upcoming key market for insurance services relating to life, property, profession and the like. Furthermore, they will be able to analyse how the target market reacts to the launch of new campaigns. Does the web community talk about it/ like it/ joke about it or is there no noise at all?

Additionally, insurance companies can however also browse the social networks for particular statements made by their (prospective) customers. As such it could be interesting for instance to see who is looking forward to the imminent birth of their child. Let’s say Mum-and-Dad-to-be-Smith may indeed be interested in an accident insurance for their new family member or in an additional general liability insurance, in case Grandma-and-Grandpa-to-be are worrying a bit about their Ming vases, when junior undertakes their first attempts of walking. Furthermore it could be worthwhile taking note of our family Smith and reverting back with interesting offers whenever key events relating to the child’s age occur, such as getting a driver’s license/ buying a car, graduating or moving out. The continuous engagement of the Smiths and soon also their child’s, in the web will provide additional spontaneous occasions of promoting insurance services, e.g. when it comes to messages posted on decisions to be taken where to spend the annual holiday. Surely, the Smiths have not yet considered travel health insurance coverage…

On the other hand, the increased focus on social CRM also requires policy owners to be careful what to post, twitter and comment on in social media. Joking about how their car got stolen because they forgot to lock it and later on claiming at the insurance company for theft through sophisticated intrusion, might not be such a clever move in view of compensation or even liability.

Many insurers have already taken a stand towards social CRM: Years ago, Generali France already pioneered “Kontsurnous” a virtual community of up to 15 people benefitting from advantageous car insurance deals, for which they even received a CRM award. Farmers and Northwestern Mutual among others have implemented the Hearsay Social Platform to deepen existing customer relationships and encourage new ones. Accordingly, there seems to be a lot of potential to be unleashed in social CRM for insurance companies. Again, as outlined for banks, subject to carefully designed concepts and the according implementation.