Maximizing Social Networking Value
CRM, as we see it, is all set to change. The problem is - we just don't know how. The popularity of social websites such as Twitter and Facebook have made many companies jump into the social bandwagon by opening up Twitter or Facebook accounts - for many, it is simply a brand building exercise; for some others, it is a casual attempt at customer relationship management - whether sending updates to followers on marketing events, or responding to sales or service inquiries. Still very few do exceedingly well in the new social sphere; most notable in Twitter are Southwest Airlines, Dell and JetBlue.
Some CRM vendors have already incorporated social networking features into their applications. Oracle, for example, has primarily an "inward" approach, meaning, social networking takes place between team members of an organization and not (externally) with customers/prospects from social networking websites. An interesting feature is called "Sticky Notes", where team members can internally participate in conversations relating to an account that members "follow". Others vendors such as Salesforce.com have taken a bolder "outward" approach; most notable social feature is called "Chatter", that gathers real-time information from conversations in social networks, which can be used for sales or for marketing opportunities.
Notwithstanding the privacy issues arising out of mining data from social networks, it may also be worthwhile for companies to note that social networks themselves are evolving - Twitter and Facebook are increasingly playing the role of a true CRM platform, where customers and companies converge, and traditional CRM applications could end up being backend processors of data feed. Keeping this trend in mind, let's explore how companies can use social networks into true business value:
1. Social networks are great places to find out what others are saying about your company and also what others are saying about your competitors. Twitter has an in-built search that can retrieve all relevant tweets about your company and you can directly respond to any questions or inquiries. Even today, there are situations where responding to inquiries in Twitter have led to direct sales for some companies.
2. Once you have established contact with a prospect or customer, it is OK to take your conversations outside social networks. Many companies provide their sales/service toll free numbers or website information in Twitter or Facebook. However, going by the current trend mentioned above, there is a real possibility that one day customers might use Twitter or Facebook as a one-stop site to lodge a complaint or to create a sales inquiry. Customers may be directed to a third party app. where they can create a complaint, which can then be fed into the company's CRM system. Regular updates on the status of complaint or sales inquiry can be sent as tweets to the customer. Some studies have found that if companies provide relevant information on social networks, contact center traffic gets reduced, resulting in significant operational savings for companies.
3. In order to really serve the customer in social networks, it is important to direct customers to the right forum. For example, Dell has about 80 Twitter microsites for the different geographies that it operates. Whether for sales, service or marketing - geographic personalization in social networks is a must.
4. Companies should consider social networks as a new marketing channel in their CRM tool. Social networks may be used for surveys/market research, marketing campaigns and so on. Responses received may be analyzed and used for generating leads for follow-up marketing efforts or for sales. Some suggest the use of social networks as an "early warning system" after, say, new product launches. Possibly, tweets can be fed into CRM inbox based on pre-defined search criteria or keywords for account managers or agents to see and to analyze.
One word of caution - social networks can help you spread good news fast, and it can also spread bad news just as quickly. If customers want to vent their anger on your product or service, they can use your social network account. Managers need to understand how to handle those situations quickly and effectively.
