Social CRM and Social Business

18 02 2010

Last week had the privilege of attending the CRM Seminar on “Social CRM for Business” organised by BPT Partners, where Paul Greenberg managed to attract a large number the world’s thought leaders on Social CRM and market players during a two-day event in a snowed-in Westin Hotel in Washington DC. To the members of the #SCRM Accidental Community it felt like the culmination point (hence the term #scrmsummit😉 ) after many, many months of tweet conversation, blogging and commenting, skype chatting that have helped us shape our ideas of what a Social CRM Strategy could look like as well as the promise it holds concerning how business can be changed for the benefit of all parties involved. It was great to meet in person finally!

I won’t go and repeat the ideas that have already been put forward by other participants (you can find the links below), but I’ll cut through the chase and give you my takeaway.

The Social Customer is now a given (even though I believe the degree of which she is may vary per country…), and basically always has been around. Contrary to the past, these customers now have the ability to find, reach out and converse with like-minded souls from around the globe, it has exploded. They’re abe to join and leave such tribes and communities provides them with great flexibility to create firm or loose ties as they so please. They are starting to become more and more aware of their power they can bring to bear when they act as a group and are able to bear more pressure as a group, leaving many companies in disarray.

Stop shouting

Rather than turn to your company for their information needs about your product or services, they now turn to their peers who they overwhelmingly trust more than they do you. It is the End of Business As Usual (cf The Cluetrain), no more only Outbound Marketing (some would say “shouting”…), you now have to pay closer attention to what is being said about you, where it is being said, why it being said and strive to anticipate where the conversation is going: The new Marketing Logic is Customer centricity through engagement and collaboration, but on the customers’ terms. Authenticity and trust is what matters – more than even the “consistency” of the message.

What really stuck with me was the idea about the Collaborative Value Chain which extends the Enterprise Value Chain of Company, partners/channel, vendors/suppliers, external agencies to include the Customers. The Customer Experience is central, and the whole ecosystem contributes to providing one that is superb, and that includes “knowing what the customer thinks and involving her in your thinking on a systematic, ongoing basis”.

The main question for me following Paul’s seminar is how to organise our companies for Social CRM. As I’ve stated in my Twitter bio since I opened the account, I am excited about Social CRM as an organisational change agent. I believe it is the compelling reason for Enterprise 2.0 implementation whose mantra is to get people to collaborate across the width and breadth of the company. But all to often I get the feeling that the pitch has been about the tools and that people are asked to collaborate for the mantra’s sake (I will follow up on this in a later post).

Social CRM makes Enterprise 2.0 a necessity for “responding to the customer’s control of the conversation” (P.Greenberg) and extends it to include the whole Collaborative Value Chain. This brings me to Social Business, on which Esteban Kolsky tried to explain in this post on The Social Customer I commented that my idea is as follows : “Social Business is the optimisation of the Collaborative Value Chain for customer-centric business.”. Esteban said that there were too many fancy words, so we settled on it being when Customers, Organizations, Suppliers, and Partners work together to optimize the value of doing business together”.

This leads me to the last bit, the why of going down the Social CRM / Social Business Strategy route. If there is only compelling reason it is to ultimately to run your business more efficiently, leverage the customer experience to increase your customer base and ensuring that everyone involved is able to optimize the value they extract and exchange so they will continue to want to collaborate.

Products can be built in the World’s Factory at short notice. Services are easily imitated. Your competitive advantage will be your Customer Base and their ability to advocate your company and persuade their peers to do business with you.

So what do you think, is the idea of Social Business disruptive on the organisation, or a natural evolution?

Once again, thank you to Paul Greenberg for providing us with a platform that has finally allowed us to meet and exchange. It really felt like it was a defining moment for Social CRM as a Practice. Merci!

If you would like some additional points of view on the event, I suggest you take a look at the posts byattendees  Mitch Lieberman,  Michael Krigsman, Brent Leary, Kevin Paschuck, Mike Fauscette, Dr Natalie Petouhoff, Prem Kumar, Brian Vellmure, Kathy Herrmann, Mike Boysen

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10 responses

18 02 2010
Mike Boysen

Those graphics are exactly what I’m talking about!!!!

18 02 2010
Harold Jarche

If you look at your customers as learners (and teachers) and consider marketing as a way to enable learning, then you create an environment that welcomes openness, learning from each other and creativity. Of course, the key is giving up control and being able to accept the new power relationship. This is tough for many people who have historically been successful with competitive skills such as climbing the corporate ladder.

18 02 2010
Mark Tamis

Hi Harold,

Thank you for your comment and I do agree with your point of view! (I did a post about it here actually).

This approach does indeed require a mindshift and change in culture. It will be interesting to see what the uptake will be and where it will lead us.

18 02 2010
brianvellmure

Good stuff Mark – love the graphic.

19 02 2010
Esteban Kolsky

Mark,

Thanks for the shoutout, there were too many fancy words — but you certainly have the right definition and the right concept.

nice post

19 02 2010
lebensbeschreibung, mit crm » Blog Archive » social crm und competitive advantage in einem satz

[…] wie soll social crm und social media wirklich angewandt werden und warum? diese frage stellt sich einem im gespräch immer wieder. und die antwort bisher war immer recht ausufernd. jetzt habe ich einen satz gefunden von mark tamis, der mir sehr gefällt: Products can be built in the World’s Factory at short notice. Services are easily imitated. Your competitive advantage will be your Customer Base and their ability to advocate your company and persuade their peers to do business with you. (link) […]

19 02 2010
Ed Sullivan

Mark, The cartoon is 100% spot on. All companies and brand marketers need to understand that the shift has happened, like it or not.

21 02 2010
Prem Kumar Aparanji

Way to go Mark! Great cartoon!😀 Didn’t realize at first it was your own creation!😉

And yes … you hit the mark (pun unintended) about the Social Customer/CRM/Business thingamajigs!🙂

21 02 2010
Larry Irons

Nice post Mark. And NO, Estaban, there weren’t too many fancy words. I actually did a post last year that aligns with the position Mark points to, and that Harold outlines. Harold is right on target in assuming we can shape, but not determine, the flow of learning in directions that create strategic value.

Regarding social business, I noted some time ago that, “The common goal of the ongoing discussion involves transforming business practices to incorporate social relationships into the value proposition to customers and other stakeholders.”

http://skilfulminds.com/2009/08/18/shaping-social-business-ecosystems-as-learnscapes/

Notice, I said practices, not processes. The two are not the same, and the former is not typically determined by the latter. Many people seem to think that if a bureaucratic process is automated that exceptions to the processes cease to exist. This is not the way organizations work since social practices are often the bases for their operation.

Regards,

Larry

20 04 2010
social crm: quando il crm diventa social | webmarketing | e-xtrategy

[…] social CRM punta tutto proprio sull’engagement, sul coinvolgimento, sulla capacità di ascolto e su una partecipazione libera che non compete più […]




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