Definition: Social Customer Relationship Management (CRM)

Social Media and Social CRM being so new, one is often asked the question what is Social CRM and how is it different from “traditional” CRM?

Social CRM is the business strategy of engaging customers through Social Media with goal of building trust and brand loyalty. Loyalty is defined as attitude towards a brand that inclines a customer to repurchase it and/or recommend it to others.

Social CRM and Social Media are more about building trust and managing loyalty with customers than about managing relationships or transactions, which are focus areas of “traditional” CRM.

Hope this answers the question. If not, please feel free to leave a comment:

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20 responses to “Definition: Social Customer Relationship Management (CRM)

  1. Isn’t one of the outcomes of a traditional CRM strategy exactly that? Managing loyalty and reducing attrition? Now you have CRM tools to help you manage client relationships : that’s not strategy but technology.
    The “social” part, I haven’t figured out yet. Still in observation, reading what everyone has to say. For now, it sounds more like social marketing, ie how to measure conversion after a campaign on twitter.

    • Thanks for your comments Diana:

      Traditional CRM is more about recording transactions or managing relationship through a 360 degree view of the customer. Social Media helps in bringing the “Human” element back in this relationship. Social Media helps in creating a “personality” for the brand and if managed properly, this will predispose customers to re-purchase the brand or recommend it to others (loyalty). It is like having a friendship between the brand and its customers (through Trust). Hope this helps.

      Thanks again for your comment.

      Harish Kotadia, Ph.D.

  2. Isn’t one of the outcomes of a traditional CRM strategy exactly that? Managing loyalty and reducing attrition? Now you have CRM tools to help you manage client relationships : that’s not strategy but technology.
    The “social” part, I haven’t figured out yet. Still in observation, reading what everyone has to say. For now, it sounds more like social marketing, ie how to measure conversion after a campaign on twitter.

    • Thanks for your comments Diana:

      Traditional CRM is more about recording transactions or managing relationship through a 360 degree view of the customer. Social Media helps in bringing the “Human” element back in this relationship. Social Media helps in creating a “personality” for the brand and if managed properly, this will predispose customers to re-purchase the brand or recommend it to others (loyalty). It is like having a friendship between the brand and its customers (through Trust). Hope this helps.

      Thanks again for your comment.

      Harish Kotadia, Ph.D.

  3. gravitygardener

    Outstanding Customer Service is an evolutionary process that can take months or even years to develop. Improving customer satisfaction has to start with the culture from executive management down through the organization. It must be entrenched within the company so that every decision be focused on what the client needs, wants or demands.From the product line to the receptionist, your customer face should always carry a consistent message of service and quality. If these messages are not conveyed at every level of the organization, your customer will eventually find your competitor and go elsewhere.Here are 3 ideas to improve client satisfaction within your product or service business:1. Listen – A simple step toward satisfying your customer is to listen to their wants and needs. If you believe you know more about what the customer wants than they do, you will be out of business in no time.2. Be Sincere – When you begin listening to customers and focusing on their issues, there will be a time when you cannot perform to their expectations. In some cases, they are going to want something you cannot or will not be able to provide because it does not make business sense. Sincerity goes a long way in delivering the message they do not want to hear. If you the delivery is truly sincere and presented that way, the customer will not like it but will understand if the information is reasonable and the partnership is strong.3. Communication – It is common sense to have a fluid communication between partners and customers expect the same thing. Within every relationship, each partner has responsibility to tell the other if there is something wrong that could lead to a larger problem. Without a strong communication and feedback mechanism, you will assume your customer is doing ok, when in fact they are frustrated and ready to jump ship.Gravity Gardenhttp://gravitygarden.com/build-customer-loyalty

  4. Gravity Garden:Thanks for your comments. You are right in saying Listening, Being Sincere and Communicating are very important for Customer Service and Satisfaction. Social Media can help in a big way in all the three steps.Thanks again for your comment.Dr. Harish Kotadia

  5. Your definition is simple, yet elegant. I like it a lot.

    Glenn

  6. Your definition is simple, yet elegant. I like it a lot.Glenn

  7. Thanks Glenn for saying my #sCRM definition is “simple, yet elegant”. Appreciated.

  8. Thanks Glenn for saying my #sCRM definition is “simple, yet elegant”. Appreciated.

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  14. “Social CRM is the business strategy of engaging customers through Social Media with goal of building trust and brand loyalty”. 
    Social CRM is a powerful business strategy because it aids one to one interaction with a customer unlike traditional CRM and traditional marketing practices (Email Marketing, Direct Mailers, Postcards, ads). 

    For obvious reasons traditional marketing cannot touch each customer. However, a tweet/msg from a brand addressing a particular issue of a customer might just make his day. 

    “Social CRM is the business strategy of engaging customers through Social Media with goal of building trust and converting customers / potential customers to brand advocates”

    Loyal Customers, Brand Advocates – Wats the difference?
    http://blog.zuberance.com/blog/loyal-customers-brand-advocates-what%E2%80%99s-the-difference/

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  17. I do accept as true with all the ideas you have offered
    in your post. They’re very convincing and will definitely work. Still, the posts are very quick for novices. Could you please extend them a bit from next time? Thanks for the post.

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