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...]

Are customers more reliable than employees ?

Some call it crowdsourcing, open innovation, participative innovation, distributed innovation, sometimes (and that how things should end) it’s a part of an ongoing improvement approach, or of a social crm one but one thing is sure : businesses are aware they have to co-built, invent et reinvent things with their wider ecosystem : clients, employees etc, even if many questions remain as for implementation.

In practical terms, there a some usual questionings like  :

- I’ve 30 000 employees who know my company and my products so why should I take the risk of opening to the outside world ? We are numerous enough like that.

- do I have to make internal and external work together ? Should I put them in watertigh bubbles ?

The truth is while businesses that adopt such strategies do it with a purpose, participants, regardless to their sincerity, may  unconsciously be pursuing personal goals that may differ from the corporate ones. It does not matter as long as companies are aware of that and act in the proper way.

[Read more...]

Enteprise 2.0 : real benefits for whom makes efforts

McKinsey recently issued a new report in the line of what they already published these last months. It’s about the benefits enterprises can take from enterprise 2.0. After having focused on what makes successs possible, McKinsey is now starting to evaluate concrete beenetids. As often, I’d say that those who are closely following the “E2.0 state of the art” won’t learn anyting new here but will the the confirmatin of what manyt experts already wrote on this subject. The main interest, once again, is the McKinsey label that will help internal evangelists to convince skeptical managers.

I let you read the report, there is nothing to add to it. Just let me bring a few insights.

- some enterprises see significant benefits. That’s an essential point without which all our arguments are pointless.

- enteprises that see the more tangible benefits are located…in India, then in North América, Europe and Asia being left behind. I don’t know India at all but this ranking is the evidence that culture really matters in adoption and change processes.

- the most obvious benefits are about access to knowledge and experts. This seems to be consistent with process socialization and problem solving as a routine

- benefits are more easy to emerge in companies that generate more $ 1 billion revenue. Certainly because large businesses are those that developed the more structural inertial throughout decades, so the place where there are the most wasted or unemployed resources. Another explaination coild be that large businesses often explore new things long before small and medium ones, so they begin to see benefits first.

- in order to see benefits, social media have to be fully integrated into worklows and people’s daily activities. I would not like to be seen as endlessly repeating the same things, but I’m convincend that this point is largely neglected. Enterprise 2.0 is not about bringing conversations into the digital workplace without any link with daily tasks and activities but to focus on these activities. Implementing such a project without asking the question of rethinking what people are doing in their daily routine, to bring some existing information flows to new medias is a guarantee of failure (or of no success). Neglecting this point causes situations when community managers push information, hoping someone will read it, waiting for (rare) reactions to come, wondering why conversations don’t start. This is very far away employees’ actual situation, who have nothing to do with conversational communities that don’t help them in their day to day job. 75% companies who see tangible benefits integrated social medias in people’s “day to day work”. Don’t try to find anywhere else what is the difference between success and failure (or maybe we don’t have the same defintion for success).

- making executive use social media tools is essential. Logical since we’re talkong about daily business tools. There are fields where community managers can’t replace those who have an operational legitimacy. If have more insights on this subject, which I’ll share in a future post.

- 2.0 projects go beyond the enterprise’s walls. There is no internal or external logic anymore but a an “extended company” scope from the start : employees, partners, clients are concerned. That confirms the social CRM trend and a new scope for stakeholders.

- to my surprise, innovation is not one the domains where significant benefits were seen, even if it has been one the enterprise 2.0 discourse’s cornerstone from the start. Do we have to make the conclusion that the 2.0 approach is not relevant to innovation, that open innovation logics are very hard to implement because of their internal impact ? Maybe non-specialized approaches, tools and adoption methodologies are not enough ?

- this report left me unsatisfied. Ok there are tangible benefits, but we may expect to know more, how do they materialize, how they are measured…

To  be continued…

My Webcom 2009 in a few words

You may have a few ideas of what I liked at webcom if you followed my twitts yesterday, but before going deeper into each topic into future posts, here’s what I found really interesting. Some thoughts, ideas, favorites in a jumble

• Don’t refuse abnormality because it’s tomorrow’s normality. Cycles from the one to the other are getting shorter and shorter. Companies have to understand what something that is abnormal today means. It’s, once again, a matter of culture and its impact on decision making and organizational performance.

• “Open is the future”. Open stack, open mesh, open social.. But there are cases when, according to me, it can be counter productive. Anyway it’s the best (and only ?) mean to fight against personal fragmentation on many social platforms, private or corporate, and to turn into a platform centric world into a people centric one. Everything can be portable, not everything must be. Toward an “open governance” ?

• Turning the pyramid model into a network. Nice, I wrote about that this morning. But this just don’t happen by luck and a preliminary analysis is desirable. I was really impressed by Jessica Lipnack (Netage) presentations and the use of the l’Orgscope. According to me it’s an essential approach to design an enterprise 2.0 project, knowing that it as to articulate with the actual corporate structure and its purpose which is to produce, deliver processes. But it implies a deep understanding of how things are actually getting done today.

• Then came the “usual suspect”. Companies are facing challenges that will force them to adopt new tools. Even if there’s nothing new for those who know him, Claude’s approach, relying on demographic, sociological elements and cross-generation dynamics is still relevant. More than the “2.0″ dream that relies on unexpected serendipity miracles. Another traditional issue is open innovation about which Innocentive is still relevant according to its deep experience and their record of achievements.

• And a little “family touch to end. The very refreshing presentation made by Cyrille de Lasteyrie (CEO  Hellotipi) had two interests. The first was to show how a strong message could be delivered through storytelling without mentionning a product or service. The second is that he made us think about the sociological dimension of social media, about people’s concerns about privacy an about cross-generations dynamics that are made possible by massive social media adoption within the society. I have no doubt that businesses will have a lot to learn  to what will happen in these family networks because the person that walks though his office’s door is the same than the one who shares pictures of his baby with his family. Beyond constrained behavioral changes, his expectations and fears remain the same in his mind.

A last word about the conference itself. Wifi worked perfectly well what does not happen so often in such events. But it was a pity for all those who couldn’t attend that the streaming didn’t work (but all the videos will be put online soon).

It was my second time at webcom (always in may…I’m affraid of the weather at the november session ;-) ). I attend very few conferences to protect myself from the “bowl” effect : always being with people who think like you often makes you forget the “real enterprise”. Here, a lot of “real” people, looking for answers to their concerns, I really had the impression that something is transmitted instead of self-contragulating among “experts”. Of course, there were the speeches (interesting, no bla-bla that only highlight the speaker without any value for the audience), the business contacts…but also a human contact with the people, the city, I hardly find elswhere. A business event that makes you feel well is so rare…

It’s really worth crossing the ocean. Anyway, we don’t have such a “web, business and enterprise” conference in France. A real pity.

Entreprise 2.0, hiérarchie, innovation participative, montreal, netAge, open innovation, organigrammes, organisation, orgscope, réseaux-sociaux, web-2.0, webcom, webcom2009,décision,performance organisationnelle,

Community management is about business, not claptrap

I recently bumped into a post putting community managers on their guards : if they can’t demonstrate / deliver any ROI they may face very hard times in a near future.

In the one hand I share the idea according to which, “external” community management (that is not the same thing as community management for internal teams), despite many famous successes, is not that fruitful. But I’m far from thinking community managers are responsible for that.

We are forced to assume that when goals are not achieved, the guys at the end of the chain are often the only to be blamed. But statistics show that, generally, when something goes wrong, it’s not individuals that are responsible, nor any external cause, but the system in 90% cases. I don’t think that these figures that date back to Deming’s work in the 80s have changed since then.

I think that the problem is not the community manager himself, even if this new kind of job, still not well defined yet, isn’t given to the right people at the beginning (but it’s also the system’s responsability to identify the right people and make them improve their skills), but very definition of community management.

[Read more...]

The Next Step in Open Innovation

Distributed innovation, collaboration with clients and partners are becoming central in companies’ strategic reflexion.

To learn more about this subject I often discuss here, it’s at McKinsey’s.