Customer relationship management (CRM) tools were created to help companies interact with their customers more efficiently and better understand their customers’ needs.
This infographic from Eloqua teaches about social CRM as a way for businesses to use technology to engage customers. According to Paul Greenberg, social CRM is, “The company’s response to the customer’s control of the conversation.”
More than ever, the general consumer trusts other consumers more than they trust brands and organizations. When a consumer either praises or trashes a product on a social media platform they positively or negatively influence their network’s perception of that product.
The increasing use of massively connected social platforms means that businesses must engage with their audience on these platforms. These platforms are not just connected – they’re also instantly accessible. So the emotional moments that occur while a customer is buying a product have the potential to end up on social networks moments after they occur in real life. It’s therefore vital for CRM efforts to extend from an analysis of transactional data to a real time conversation with customers combined with exceptional value delivery and world class customer service.
Eloqua advises businesses to first understand their various customer segments and identify which communication methods they prefer. However, they also advise businesses not to leap without looking. Just because a channel is social does not make it valuable to a business. Nor is “social” the same as “inexpensive.” Often times, the value of social CRM comes with a high price tag.
The ultimate goal of social CRM is to improve customer loyalty by providing exceptional customer service. This means improving the way your customers buy and use your product; it also means making sure that your customers feel valued. It is more than implementing software – it is an attitude of authentic engagement.
It’s as Paul says, the only way to stay on top of the consumer empowerment trend is to keep your head in the game and your voice in the conversation. Brands are people now (and many people are brands). You have to act like a member of the community and a company who is truly invested in the success and happiness of its consumer base.
Hi Brad,
Thanks for commenting. I like your idea of business as community. The key to any social interaction, of course, is balancing the needs of individuals against the needs of a larger collective.
So too, organizations must carefully consider how to balance their own interests against their customers’ interests. Thanks to advances in technology that goal is at once easier and more complicated to reach.