12 thoughts on “Definition of Social CRM – Explained!

  1. Don’t agree with your definition. Social CRM does not have to engage customers through social media at all. Your mixing strategy and technology into a definition. Tech is enabler, SCRM is a strategy and can be defined as a portion of social business that helps companies make sense of and act on data that they collect from social customer interactions. This can be via phone, email, feedback forms, or anything else. Social CRM IS NOT ABOUT social media; the channels don’t have to be “social.”

  2. Thanks Jacob for your comment, appreciated!

    I agree with you that SCRM is a strategy and tech is an enabler. I also agree with you that SCRM helps Co.s “make sense of and act on data that they collect from social customer interactions”.

    But that is only part of the equation (Listen and Learn). Social Media is much more powerful than being just a medium for listening and learning. It provides a platform for engaging customers in a meaningful conversation for building Trust and Loyalty, and that is what Social CRM is about. Not just for “recording” or “managing transactions” of Customers’ Social Interactions, but for Engaging Customers in meaningful conversation for building Trust and Loyalty!

    Hope this helps,

    Harish Kotadia, Ph.D.

  3. I agree the “s” in sCRM is a pointer to social media – otherwise sales and customer relationships are social since the first trader roamed the dunes of Egypt 6,000 years ago.

    But I’m not so clear about sCRM being “just” a strategy. sCRM is also a product – now. I posted a sCRM blueprint yesterday here: http://xeesm.com/_/site/index.php/2010/04/17/a-social-crm-product-blueprint/

    But so far – sCRM was indeed just a strategy as the technology hasn’t been there.

    Axel
    http://xeesm.com/AxelS

  4. I think you are missing the future on this. Social CRM is not where it will end up even a year from now. Software vendors are making SCRM the acronym to be using and you are selling the concept short.

    It is Social Relationship Management – SRM.

    It is not about the social side of customers. That is a plan for failure and not how successful social enterprise strategies succeed.

    SRM is the management of all stakeholder relationships and Social CRM is just a cute patch to CRM shortfalls.

    Need to drop the “C” in SCRM.

  5. I also disagree with the 3rd part of the definition -the goal is not always to build brand loyalty and trust. This is maybe what the goal should be, but Social CRM is a means (strategy & technology) to achieve business goals related to interacting with customers / potential customers – whatever those goals may be.

  6. Hi, i’d like to comment your post. As I saw there’s a lot of disagreement in the previuos comments but I think that the real point is that the “social side” of the CRM must be reconducted on what’s the baseline of this all. I mean, the social media are only a new powerful channel of interaction and partecipation that differ from the traditional channels because of its multidirectional way of linking the various actors (customer, prospects, curious, customer care, communication reps, etc.). I don’t believe in a new version of CRM but in a new CRM that involves a new channel with which it’s possible to improve tremendously the corporate opportunities to cope with all the customer and prospect requests (commercial, technical,etc.) reaching the brand engagement objective (which I remember is the REAL objective of all CRM activities). So the real questions, IMHO, are the following: how can the corporate take advantage of the opportunity of engaging users through social media in order to let them perform CRM activities on thier own working as ambassadors? What will be the trend in channels’ usage in the next years? Are we, in the meantime, ready for managing the social media opportunities with strategy, processes, resources and last but not least appropriate technical support integrated with actual Collaborative, Operational and Analytical CRM tools?

  7. Thanks Axel Schultze for your comment:

    You are correct in saying “s” in sCRM is a pointer to social media – otherwise sales and customer relationships are social since the first trader roamed the dunes of Egypt 6,000 years ago.

    Regarding your point as to sCRM being “just” a strategy and not a product – I think over a period of time many products (tools) will be developed and marketed to engage customers through Social Media – and they will be called “Social CRM” products – and eventually, I guess it will become part of “CRM Software Applications” representing tools more than strategy.

    This is what happened almost a decade back with eCRM – it started out with strategy (I vividly remember Bob Thompson’s post on CRMGuru.com about this). And once application vendors like Siebel, PeopleSoft and SAP came out with modules to cater to eCRM – it quickly became part of CRM, and CRM became more of a product than a strategy. I guess history is repeating again – this time with “s”CRM instead of “e”CRM.

    Thanks again for your comment,

    Harish Kotadia, Ph.D.

  8. Mark A Carbone – Thanks for your comment:

    What I have tried to highlight is Social CRM is part of overall Customer Relationship Management for a business and eventually “s” will be dropped and it will just be CRM. This happened with eCRM almost ten years back – see my previous reply.

    Thanks again for your comment,

    Harish Kotadia, Ph.D.

  9. Thanks Scott Saige for your great comment:

    You have a great point that Social CRM is a means (strategy & technology) to achieve business goals related to interacting with customers / potential customers – whatever those goals may be.

    I think overall objective for engaging customers on Social Media is to build Trust and Loyalty. When executing this strategy (plan) – the tactical objective can be creating/increasing awareness or decreasing complaints etc… But the strategic objective has to be to build Trust and Loyalty – because this is what will help achieve overall biz goals for a business.

    It is like saying strategic objective is to win the war and tactical objective is to win the battle. Social CRM is more at a strategic level and when this strategy is executed, tactical goals are set and achieved.

    Hope this helps, thanks again for your comment.

    Harish Kotadia, Ph.D.

  10. Thanks for your comment ANDREA INCALZA:

    You have a great point in calling for a new CRM that involves a new channel with which it’s possible to improve tremendously the corporate opportunities to cope with all the customer and prospect requests (commercial, technical,etc.).

    Social CRM is all about engaging users through social media (and if users so desire, than provide them platforms, tools to let them perform CRM activities on thier own working as ambassadors).

    Regarding your point: What will be the trend in channels’ usage in the next years? I am currently writing a blog post that highlights these details, please check out my blog for the post in the next 2-3 days http://HKotadia.com

    Regarding “are we, in the meantime, ready for managing the social media opportunities with strategy, processes, resources and last but not least appropriate technical support integrated with actual Collaborative, Operational and Analytical CRM tools?”

    Answer is a Very BIG No!!

    Very few CMOs and CIOs have recognized the opportunity and have acted on it. I have tried to highlight this through several of my blog post earlier. I think once CMOs and CIOs recognize the challenge – things will begin to move fast on this front.

    Hope this helps, thanks again for your enlightening comment.

    Harish Kotadia, Ph.D.

  11. Wow – this became a very interesting discussion here. We just did a session on social selling and how it applies in the new world. http://xeeURL.com/A02278

    @Mark Carbon – right on. I guess it would be a good idea to start defining SRM. I started it May last year at http://socialrelationshipmanager.com but I’m not happy with it – still to clumbsy, stiff – happy for any support on that.

    @Harish Excellent job – keep challenging all of us this is a great process!

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