Social CRM: How companies can link into the social web of consumers

Abstract

Social networking and other new technologies have given rise to the 'social consumer', who now has the means to share reviews and opinions about virtually every kind of product and service. As a result, the days of the one-to-one relationship between companies and their customers are over. Now companies must contend with the huge and growing social web, where customer experiences and opinions are shared on a massive scale, and corporate reputations can be ruined almost instantaneously. Navigating this new world requires a new way of approaching customer relationship management, commonly called social CRM. In addition to their traditional CRM tools and processes, companies must rethink their product, channel and customer strategies in order to build an entirely new relationship with their customers through greater transparency. This new relationship will have two goals: to develop the credibility needed in the social web and to use this web to boost sales. This effort will require a major shift in the corporate mindset towards collaboration and transparency. But if it is done right, the resulting benefits in terms of reputation and a more valuable relationship with customers can be significant. Companies should begin simply by listening to the social web to get a better sense of where they stand in this world, and building a team of employees who are familiar with how this world works. This will serve as a basis on which to build true social CRM capabilities, including the ability to manage the companys reputation, increase sales and monitor the results. © 2011 Macmillan Publishers Ltd.