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Social CRM,[object Object],Martin Walsh,[object Object],Digital Marketing Director,[object Object],Draft Ver1.3,[object Object],First created: January 2009,[object Object],Last updated: February 2010,[object Object],For a more comprehensive look into Digital Marketing and Social Influence Marketing view my PowerPoint on SlideShare: From Monologue to Dialogue, Digital & Social Influence Marketing,[object Object]
Social CRMA process to monitor, engage and manage conversations and relationships with existing and prospective customers and influencers across the Internet, social networks and digital channels.Or another way to look at it:Social CRM is the process of converting content into conversations and extending these conversations into collaborative experiences and then transforming those experiences into meaningful relationships.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Social CRM Benefits,[object Object],Sales teams can now be equipped with significantly more relevant information about their customers through an integrated view of their customers online conversations combined with digital analytics (website, search, mobile, email etc) and existing CRM activity history.,[object Object],Marketing teams can now meet prospects at their point of need, connecting much earlier in the buying process with real-time listening and monitoring of online conversations. Marketers can also gain a greater insight into the behaviour, sentiment and effectiveness of their marketing and communication efforts which in turn can help them define and refine their creative, messages and channels.,[object Object],Product development teams can engage and collaborate directly with customers throughout the development phases from the simple generation of ideas through to design, prototyping and testing which can build significant advocacy and positive word of mouth. Companies like Dell actually encourage, facilitate and solicit new product ideas directly from their customers and ask other customers to rate these ideas. Ducati designs and develops motorcycles in collaboration with its customers and fans via forums, communities, contests and polls.,[object Object],Customer service teams are now empowered to provide a memorable service by proactively responding to customers on the customers terms, equipped with an integrated view of their entire interaction, engagement and conversation history.,[object Object],Community and social media teams are provided with context for their outreach and engagement efforts.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
How does Social CRM work?,[object Object],Social CRM is achieved through the integration of digital analytics (web, email, mobile, search, video etc), social media / conversational analytics and other CRM relationship management analytics to determine and articulate social media ROI. *For example Radian6 with WebTrends and SalesForceCRM.,[object Object],Marketing, community, social media, customer service and sales teams can now map their word of mouth or social media initiatives directly to success events (customer navigates to fulfil a need – click on a video, click on click to chat, download whitepaper etc) and end actions (customer fulfils a need – register for event, downloads, subscribes to newsletter, makes purchase) on a website or other digital channels. They can then view a customers online activity and performance through the lens of social media. ,[object Object],Organisations will be able to:,[object Object],Compare which types of social media and communities are most effective in generating positive word of mouth, resulting in desired actions on your website or other digital channels,[object Object],Measure the direct benefits of customer advocacy and quantify the value of engaging customers and influencers online and through digital channels,[object Object],Calculate the ROI of content marketing and outreach efforts by connecting associated social media conversations to website traffic, downloads, conversion or sale or other desired actions.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Social CRM More Broadly,[object Object],I believe that Social CRM and traditional CRM should be called Individual Lifecycle Marketing (ILM) and these disciplines should be closely associated with Customer Experience Management.,[object Object],The world has now shifted from an era of information asymmetry to a new era of information democracy. In the era of information asymmetry customers were mainly educated by companies and organisations, their solution providers, partners, retailers, analysts and the media. These companies and organisations were able to tightly control the information and image about themselves, their products, brands and services as the channels were simply broadcasting the marketing monologue. Marketing was command and control. ,[object Object],But in todays era of information democracy customers can educate themselves over the Internet and digital channels, through their connections in social networks, blogs, micro blogs, discussion forums, chat and much more. Marketing is now a dialogue.,[object Object],Prospective customers can now talk with existing customers and customers are now so well educated that the influence from traditional sales, advertising and marketing has become more negligible.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
We have seen the rise of information democracy,[object Object],From information asymmetry...,[object Object],Information was scarce ,[object Object],Customers were ill-informed,[object Object],Exchanges were monologues,[object Object],Marketing was “command-and-control”,[object Object], … To information democracy ,[object Object],Information is ubiquitous,[object Object],Customers are well-informed,[object Object],Exchanges are conversations  ,[object Object],Marketing is “connect-and-collaborate” ,[object Object],Draft Ver1.3,[object Object],Martin Walsh,[object Object]
Why Social CRM?,[object Object],Traditional CRM - typically a one dimensional corporate interaction that provides processes, services and technology to customer facing departments like sales, marketing and customer service is no longer a viable discipline.,[object Object],Customer expectations and behaviour have fundamentally shifted as the world moved from the era of information asymmetry to information democracy with the advent of the Internet and other digital channels.,[object Object],Marketers must recognise that there is now an active participant ecosystem which provides empowered customers - who are interested in making their own choices – the ability to interact with organisations when and how they choose. ,[object Object],Conversely, customers are now more accessible than ever before and companies are able to connect and provide – if they so choose – a remarkable and more personable customer experience by listening to their customers and reaching out to them through online and digital channels.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
The Marketing FunnelIsn’t Linear(hell, it’s not even a funnel),[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Traditional Marketing Models Fail to Model Complex Buying Paths ,[object Object],Traditionally, marketers modeled customers’ decisions as they progressed from awareness through consideration, preference, action, and loyalty — through what is called the marketing funnel. The marketer’s job was to move people from the large end down to the small end. But now it’s time for a rethink, as the funnel has outlived its usefulness as a metaphor. Face it: Marketers no longer dictate the path people take, nor do they lead the dialogue. We must rethink the marketing funnel because:,[object Object],[object Object]
The most valuable customer isn’t necessarily someone who buys a lot.
Traditional media channels are weakening.
Consumers force brand transparency.Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Traditional Marketing Models Fail to Model Complex Buying Paths ,[object Object],Complexity reigns in the middle of the funnel. Awareness is still important; you need to know that a product or service exists in order to buy it. And the marketer’s endpoint is still a transaction. But, in between, other factors such as recommendations from friends or family, product reviews, and competitive alternatives described by peers influence individuals. The funnel’s consideration, preference, and action stages ignore these forces that marketers don’t control. Rather than a clean linear path, the real process looks more like a complex network of detours, back alleys, alternate entry and exit points, external influences, and alternative resources.,[object Object],The most valuable customer isn’t necessarily someone who buys a lot. In this socially charged era in which peers influence each other as much as companies do, good customers can’t be identified solely by their purchases. Companies also need to track individuals who influence others to buy. For example, a customer who buys very little from you but always rates and reviews what she buys can be just as valuable as someone who buys a lot — her reviews might influence 100 other people to buy your product. Tracking only transactions and loyalty at the end of the funnel misses this significant element of influence.,[object Object],Traditional media channels are weakening. Marketers continue to use mainstream media messages to move consumers into a consideration frame of mind. But passive consumption of media is waning. Individuals dismiss or ignore marketing messages in lieu of information available from an ever-increasing number of resources, such as product review sites, message boards, and online video.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Today’s Complex Buying Paths ,[object Object],Marketing complexity means that traditional methods and metrics fail to address and capture the whole story. Online metrics like unique visitors to a Web site, number of pages viewed, and time spent per page mimic offline media metrics of reach and frequency. But traditional marketing and traditional measurement doesn’t address or indicate the engagement of an individual; they fail to address or capture the sentiment, opinion, and affinity a person has towards a brand as manifested in ratings, reviews, comments in blogs or discussion forums, or the likelihood to recommend to a friend.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Social media – The conversation prism,[object Object],You must understand the dynamics of conversations and how and where they transpire.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Engagement: A New Perspective on Marketing,[object Object],If the funnel no longer accurately reflects what marketers can influence, why do they still cling to it? Because they can measure it, which is reassuring, even if it no longer accurately reflects the real buying process. And, of course, there are no useful alternatives.,[object Object],We believe that marketers need a new approach to understanding customers and prospects. This new type of measurement — engagement — encompasses the quantitative metrics of site visits and transactions, the qualitative metrics of brand awareness and loyalty, and the fuzzy areas in the middle best characterized by social media.,[object Object],Martin Walsh,[object Object],Draft Ver1.3,[object Object]
Marketing Needs to Shift Focus from Low Value Broadcast Campaigns to High-Value Timely & Relevant Programs ,[object Object],Draft Ver1.3,[object Object],Martin Walsh,[object Object]
Traditional Marketing Approach,[object Object],Good at:,[object Object],[object Object]
Predicting response rates
Optimizing spend by reducing marketing waste
Understanding buying modalities Not so good at:,[object Object],[object Object]
Lending itself to automationDraft Ver1.3,[object Object],Martin Walsh,[object Object]
Good at:,[object Object],[object Object]
Immediately triggering a marketing response
Building program equity through automationNot so good at:,[object Object],[object Object],Real-Time Marketing Approach,[object Object],Draft Ver1.3,[object Object],Martin Walsh,[object Object]
No Shrugging Shoulders: Move More Marketing Real-Time,[object Object],Draft Ver1.3,[object Object],© 2009 Martin Walsh,[object Object]

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