Social CRM is not about media but a new approach to customer relationship

Summary : everyone has an idea, even a rough one, of where social CRM is taking us but no one exactly knows what will be the levers. A common mistake is to keep on managing customers the old way, as a passive target whose only function is to buy in a system where value is created to his detriment. The whole by using new channels. This way of doing things does not improve anything and even harms those who practice it. So we need go step back to basics and manage the customer relationship instead of managing the customer. It forces us to rethink, point by point, the components of this relationship : its subject, the exchanges, stakeholder identities, its follow-up and its exploitation. Social CRM is not a matter of media but a new approach to a customer that has become a stakeholder and an active player of a value co-creation processus.

I had the opportunity to talk with Paul Greenberg, during the last Lotusphere. We shared our opinions about what social CRM was, wasn’t and the state of the art.

Our first acknowledgement was that, even if nearly everybody agree on the big picture, everyone has his own definition and vision. Is it a problem ? Not at all since it’s obvious that, as for enterprise 2.0, so many cultural, organizational and even industry-related factors play a role what makes that’s there’s not a single SCRM model but an SCRM concept that has to be adapted to each organization.

Our second point of agreement was about the “social channel”. Moving from CRM to SCRM does not only mean using new channels to replicate old behaviors. For instance using Twitter of Facebook to push the same special offers as with the old emailings. At best it’s social marketing, at worse it’s spam and, even more, it gets on people’s nerves because they are bombed with useless information while they get no answer when they try to use the same channel to talk to the enterprise. (Yes…it’s a two-ways channel, contrary to email that always mention “do not reply”…strange way to envision customer relationship isn’t it ?).

Consequence of these two points : social crm is rather an approach to customer relationship than a matter a channel. I’d even go further : people can do social CRM “face to face”, by phone, on any channel. What matters is to consider the customer as a stakeholder and draw all the consequences.

So, I suggested Paul what would be, in my opinion, a minimalist social CRM program :

• Segmentation of the audience and delivery of a message, of information and contents, and even specific services for each segment. Contrary to received ideas, enterprises don’t talk a one community but to many communities they don’t own. For instance, an airline will have its own fans, the Airbus A380 fans, those who love travels, their “high contribution” customers, those who are stranded in a far country. Each category expects something different : some want to dream, some “insider information”, some special ofers, some service. Some will never be customer but contribute to establishing the brand online, some are good customers that have to be engaged and retained, some need to be convinced to be acquired.

• Organization a customer case management system that makes that, whatever is the channel that’s used, the message goes inside the organization, is handled by the right person (what would look like the junction of advanced case management and social networking) then goes back to the customer without any break in the flow. (Keeping in mind that it’s not the perfect answer to everything).

It’s a little bit light and minimalist but that may be a good start. In fact, like we agreed with Paul, so few organizations have reached this point that it’s better than nothing for a start.

But, since it appears that it’s about a new vision of the relationship between organizations and their customers, here’s how I’d see things point by point. [Read more...]

Customer service : avoid being the victim of you social media success

Summary : while some businesses are puzzled towards the lack of success of their customer service initiatives on social media, others are trying to find solutions to face the increase of contacts and interactions. Hence the hasty conclusion that social media don’t scale. That’s a big mistake. The only fact that the point of contact is overloaded shows that the media scale. What does not is the bandwidth of the system that prevents from processing all customers requests. This limit is not peculiar to the media but to the processus it supports and that can only be removed by organizational actions. The capacity of the point of contact, should it be called community manager or anything else, can be improved by adding more resources, improving the system, redefining people’s tasks and, most of all, refocusing on exception management.

I often say that organizations that use social media for customer relationship purposes split in two groups : those that won’t take any benefit from it and those that will be overwhelmed with their success. In both cases, things have to be made to improve the situation.

• Those that don’t benefit from their initiative : poor understanding of customer expectations, interaction refusal,  absence of a service logic in communication activities.

• Those that are victim of their success : their understood what was the good positioning, had the right proposition of value for their customers…and were so successful that they can’t keep up with the load, what prevent them for keeping their promises and, then, creates a deceptive feeling among their customers that spreads and harm their reputation.

Today, I’d like to focus on this second group.

To find themselves in such a situation that can be described as a “rich people problem”, these businesses understood that beyond community management they had to have a processus approach. Since they offered an actual added value, they met their audience. But, either because of an exceptional event or a linear increase of the workload, they can’t keep up with their commitment anymore.

I’ve been observing something for a couple of months : many organizations that are successful with external facing social media initiatives realize that the internal organization has to be aligned too. Community managers (or whatever you call them) need to interact with internal resources to find solutions to customer problems what implies they can identity and mobilize them. So it’s an expert location issue. If tools and organization don’t make these actions possible, community management becomes a bottleneck where problems pile up without being solved. In conclusion, a scalable channel was used to replicate the same kind of bottlenecks that exist on the traditional channels they were supposed to make up for.

Should iy be executed in a linear or networked way, a processus has a constraint : its bandwidth, determined by the step that at the lowest processing capability. In our example, community management is the constraint of the processus. Said in other words, improving anything in the customer service processus will be without any effect and won’t change anything for customers since the limit is the community manager(s).

Like many airlines, British Airways is using twitter to solve customers problems. Everything works well in normal times but when snow begins to block european airports the switchboard explodes, as this tweet from R. Ray Wang mentioned :

In fact I think that this conclusion is a mistake : this is not the media that doesn’t scale but there a bottleck that limits the scalability of the processus it supports. The only fact that they can’t keep up with tweets is a proof that the media scale, since the amout of incoming messages exploded. What does not scale is the processing.

[Read more...]

Social is a substitute for quality and customers don’t care about you

Summary : Lots of things are being said about the revival of the customer relationship made possible by social media and that’s a good thing, a more human way of doing things, less mechanized, aiming a building a richer and fruitful relationship for everybody. But businesses should be careful of too easy things and smoke and mirrors. We hear lots of things about “fans”, “passionate”, “engagement”, suggesting that if a business shows as much interest to its customers as they show to the brand, a positive impression is generated, the company improves its image and sells more. But thinking that it’s all about communication and good feelings is a dead end. Most of customers are not passionate nor fans but…simple customers. In the same way, internauts who try to pick brands up on the web are not always potential customers but only people in search of recognition and favors. In short, customers expect businesses to keep their promise and use the web as a channel to remind it to them. Keeping communication and service separated, thinking that there’s no link between communication and quality programs is a big mistake. The lower quality is the more the web is stragic to gather feebacks in order to improve quality.

Bringing good feelings and more intensity in a relationship is good but should not make overlook what matters : the product, its quality and its appropriateness to the demand.


It’s mpre and more said that customers have to be considered as partners, stakeholders, and have to be involved in co-building and co-decision programs what aim at maximizing what all parts take from the relation. Customers love brands and want a strong relationship with them…and brands should give them as much love in return because their purpose is to make customers happy. So everything seems to be perfect in a world where love and respect are getting the upper hand on basely material and financial concerns.

Ok. Now let’s top kidding. Even if the final result will be the same, we should not mistake ourselves about the mechanisms at stake.

1°) Customers are a business partners that have an impressive nuisance potential…

Collaboration between customers and suppliers is nothing new? What is new is that, now, it can apply to small individual customers, not only to B2B relationships. Why did the customer become that worthy of attention ? Because he can spend more money than before ? Not at all. Only because he’s now able to shout louder that before its love or hate…and even to gather with others to make even more noise .

Is business becoming more human ? No. It’s just about a more balanced relationship. And those who can harm always deserve more consideration.

2°) Some customers are true lovers…

Some brands have real fans, people they must capitalize on. Their paradox is that they seldom expect anything in return : they never complain and ask for few interactions. A simple “thank you” is enough and they feel as is they were vested with a mission. They talk a lot around them and spread the word.

3°) But the wide majority only expects you to keep your promises [Read more...]

Engage with customers. And then ?

Summary : It’s obvious that the use of social media within companies and between companies and customers are not compartmentalized but complementary disciplines. If the “internal” company is more and more trying to get in touch with customers, the world of marketing struggles to make his way toward internal departments. As communication is becoming service, initiatives that target customers can’t be separated from those that aim at reversing communication flows inside the organization, redefining roles  and realigning the whole organization with the needs of employees who are directrly in touch with customers. To demonstrate its value, social and community makerting will have to replace “push” with “pull” not only in its interactions withn customoers but also in the way the whole organization works.

Even if the external/marketing/communication part has never been my prefered one, it has become obvious that it’s impossible to dissociate the evolution of work from what’s happening outside the corporate walls. First, because no company creates value on its own et a high level of internal performance is useless when a business is not as efficient with its external partners and clients that it is internally (theory of the limiting factor or bottlneck…as you prefer), second because the internal shift from push to pull logically leads to consider customers.

The time when 2.0 was either about marketing or collaboration but not both at the same time is over. Yet, the concept of enterprise 2.0 evolved overtime and everybdoy finds logical to include all external stakeholders into it, what is confirmed by the rise of social crm. But even if enterprise 2.0 is heading down toward customers, marketing struggles to head up toward internal activities.

I recently found this interesting deck about the failure of social media initiatives. It tells us that

- there’s a lack of strategy (81%) and most marketers don’t undestand the value of interactions…and how all these things work.

- consequently, businesses invest more on technology than on people and relationships.

I’d like to go a little bit further and sum it up in one sentence : when marketing and communication people use social media to communicate better and differently, there are two possibilities:

- either they (or their company) don’t get it and that doesn’t work.

- Or they understand how to make a good use of social media and…they deceive their customers.

[Read more...]

Community management and processes by the example

Some weeks ago I promised to illustrate my “community management and processus” post with a fictitious but credible example. So, here it comes…

Jack and John are community managers (or, at least, in charge on figuring things out on social media on behalf of their employer). Both are working for an airline (what was a trendy and volcanic topic at the time I thought about the case). Jack is working at AirShy and Paul at AirSocial.

AirShy knows things have to be done one on Twitter, Facebook and all these new medias but is not comfortable with that. The company is used to keeping everything under control, to avoid any kind of risk. On the other hand, people at AirSocial think that if they don’t dive into the pool they have no chance to learn how to swim.

So AirShy decided to occupy the field in the only purpose to have a presence. They asked to someone who likes these new media to deal with this work : Jack. he reports to the communication department but could have reported to any department that would have taken the leadership on this subject.

At AirSocial, people wondered what these medias could be used for. Half of the answer was in que question : things are worth when they allow to serve the customer in a better way. So how could they serve their customers better with new medias ? Deliver information to eveyone, but also to people with individual concerns. That means the company should engage in conversations…about what, with what tone, to what extent ? And what should not be tackled ? Confidential issues of course ! But also what people don’t want to read in such channels. The communication department is in charge but they quickly realized that they had in their hands a pipe that can be used by anyone in the company. Even if it’s still quite vague they decided to start and learn from their own experience. John is told to deal with these media, on the operational side.

At first sight, Jack has less constraints than John. There’s no doubt he’ll achieve better results. Not that sure…

[Read more...]