IBM Institute for Business Value has released the second of their two part series “From social media to Social CRM“. Just by the title alone, you might have guessed that IBM does not quite agree that the epitaph has been written, nor spoken regarding Social CRM. After reading, and re-reading, this, the second in the series IBM report, I find it a rather bold approach to both social media as well as Social CRM. The study actually ties the two closer together than anyone has to date. While there are a few ideas and conclusions I might alter, there are some really interesting points as well and it is worthwhile for you to read directly.
The report surfaces some really interesting ideas about Social CRM and social media, which at first blush, I can almost guarantee that many of the regulars who read my blog will at first, disagree with. I can say that because I did at first as well. Frankly, I wanted not to like the paper, with some of my own thinking progressing beyond Social CRM; but that is not where I ended up. The diagram above, and the messages in the report paint a picture where the maturity of social media will only be realized by a progression to Social CRM.
“If companies want to unlock the potential of social media to reinvent their customer relationships, they need to think about CRM in a new light while building a strategic and operational framework that provides both structure and flexibility.”
I found this to be quite refreshing actually; suggesting that Social CRM is the strategy end-point of social media. Whether it is ‘the’ strategy end-point or ‘a’ strategy end-point is to be determined, but IBM makes a strong case. My perspective is, and has been, that Social CRM is not one thing, but many different things, which is why it is hard for people to use it as a label. Sometimes, labels allow us to put things in buckets and sometimes they get in the way. Again, the jury is out on that one too. Just look at the term ‘social’ it meant one thing for the past 50 years in business, only in the past 5 has it become something different.
Where I believe thinking went astray, by those who believe Social CRM has run its course, is by associating only ‘Social’ to CRM where it should be ‘Social Media’ – but, SMCRM is an acronym that would never stick. The nuance is that social media encompasses both the technology (channel) and culture, where ‘social’ is just one part. But, what to call it is not really as important as what it does and how to accomplish your business goals. Among the issues preventing the maturation might be where social media resides within the organization. The place where customers would expect the convergence is an integrated contact center, the problem is that few companies have one. As the IBM report states, typically, 52% of the time, Marketing is responsible for social media strategy, and only 20% of the time Customer Service is responsible. With respect, we are asking one department, in isolation, to manage a continuum of experiences.
How does Social CRM fit with(in) Customer Experience?
Are we talking about Customer Experience, Customer Service Experience or Social CRM? Customer Experience is quite big (more in a minute) and cannot be managed any more than relationships can be managed. I would also suggest (and I have) that Customer Service Experience is a subset of Customer Experience; I believe Social CRM to exist in the same way, it is a subset of the solution, not the whole solution.
A Peter Drucker quote comes to mind: “Quality in a service or product is not what you put into it. It is what the client or customer gets out of it. With this in mind, I would like to extend these great words and suggest that ‘a Customer Experience is not what you design it to be, it is what a customer perceives it to be’. I would also add that managing experiences or perceptions is very difficult (Hollywood and Disney can manage perceptions, most businesses cannot).
The maturation of social media to Social CRM can and will help by providing “integrated insights to improve customer experiences”, as stated in the IBM report. Reading Kerry Bodine’s recent blog and referenced Forrester report on Customer Experience in parallel with the IBM report was quite fun (geek fun, of course). In Kerry’s report, CEM is described as a very broad and important topic – which it is! The far-reaching impacts of CEM include all of the customer communication touchpoints, which includes Social CRM engagement, as well as many many other touchpoints?
“Customers interact with companies across hundreds of discrete touchpoints as they discover, evaluate, buy, access, use, and get support for a company’s products and services” and “customers interact with a company’s employees and partners either directly or via some intermediating technology”
CRM (Social or not) does not include a display ad, the coffee cup, the shower curtain in a hotel room, all important to CEM, though not to CRM. Where CRM comes into play is when a human contacts a human – period. Trying to tie the two together, if there is an intermediating technology, CRM is not likely to be involved. If a company is speaking directly to a person, and the channel of communication is public; aka social media, then the term Social CRM makes sense. Per the IBM research, social media, when used correctly is about engagement, thus needs to be part of a broader Social CRM strategy. Proper CEM strategy is bigger than CRM and Social CRM but needs to include both if the approach is to be considered complete.
The constant debate of trying to separate out people and process from technology is tough, but important. “Service excellence is achieved by an almost harmonious dance between the people, processes and technological components.” I believe this can be stated for both Social CRM and Customer Experience – but that is just me. Just because a vendor is making a statement, does not make the statement wrong – nor right.
If you made it to this point, you might be interested my post earlier this spring called “The Perception Gap in Social”, based on data from the first IBM report in the series. Full disclosure, IBM is a Sword Ciboodle Partner, and Sword Ciboodle is certified on IBM’s insurance framework