Social CRM: Huge opportunity for IT, BPO Companies

In my previous post titled Rise of Social CRM and how IT & BPO Companies can Profit from it, I have emphasized the importance of Social CRM and how IT and BPO Service Providers can leverage this opportunity. In this post, I want to share statistics that highlight the sheer size of this opportunity.

According to a recent survey by Technology Services Industry Association (TSIA) among its members, it was found that:

  • Only 17% of members have integrated social media channels into the corporate website. Accessing an online community requires a different log-on and password, and uses a different UI than the corporate website.
  • Only 8% of members have integrated the new channels into their CRM/incident management system. After a decade of trying to build the “360 degree view of the customer,” none of the social media interactions are being tracked.
  • Only 8% of members include social media channels in performance dashboards. So if you suddenly start neglecting a social media channel, no alarms or notifications exist.
  • Only 3% of members address social media channels in SLAs. If you aren’t setting customer expectations for service levels, achieving high customer satisfaction will be challenging as traffic via these channels increases.

Also refer to the following presentation titled Effectively Leveraging Social Media as a Support Channel by John Ragsdale. Some note-worthy stats in this presentation are:

  • Slide #12 Low usage of Social Media channels for providing Customer Service & Support
  • Slide #22 By 2011, a significant % of customer issues will be resolved using Social Media and Communities as compared to Self-service, Web-chat, Email and Phone.

IT Service Providers can capitalize on this opportunity by:

  • Development and Maintenance of Engagement Platforms and Communities
  • Integration of “Traditional” CRM apps with Social CRM functionality for 360 degree “view of customer”
  • Master Data Management – A major issue in CRM projects, more so in Social CRM

BPO and KPO Service Providers can leverage this opportunities by providing:

  • Social Media based Customer Support in addition to traditional channels such as Phone, Web and Email
  • Social Media Monitoring, Reporting and Analytics
  • Creation of brand specific Social Media Content
  • Social Network Analysis

Social media are bringing about a dramatic shift in Marketing and Customer Support processes. Those IT and BPO service providers who build competency to address this change and offer services to their clients will benefit. And first movers will benefit the most from it!

What do you think? How should IT and BPO service providers should leverage this opportunity? Please do share your thoughts:

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8 responses to “Social CRM: Huge opportunity for IT, BPO Companies

  1. Great post Harish – I'm glad you point out this opportunity. You are right it's huge. Probably similar to the times when CRM came into the market in the first place. Interesting to see that only 44% put Social Media in Marketing. Great to see that already 9% see it as a cross functional responsibility.Axelhttp://xeesm.com/AxelS

  2. Thanks @AxelS for your comment. Yes, this opportunity is similar to CRM opportunity when it came to market almost a decade back. But the difference this time is that it is much bigger than CRM – because of Social Media and sheer size and scope of online conversations and the necessity to monitor and respond to them in real time. Once marketers realize the Social Media challenge they face, we'll see rapid increase in Social CRM spend.Thanks again for your comment.Harish Kotadia, Ph.D.

  3. “Accessing an online community requires a different log-on and password, and uses a different UI than the corporate website” yes that's always a pain!Nice post. The John Ragsdale presentation shows that (Slide 12) Forums and Blogs dominate the tools used to provide support to customers, with Twitter low and Facebook lowest. Interestingly a recent article at TechFlash discussed how “Facebook, Twitter top Microsoft in traffic sent to Microsoft support”. So inbound is something to consider not just where people are getting support.http://www.techflash.com/seattle/2010/05/facebo…“Our first source is search engines, however the second one is now Facebook. The third one is Twitter,” said (Nestor) Portillo (from Microsoft). “These have become more active than people going to Microsoft.com and then going to (the) support side.”It shows, yet again, the increasing importance of getting the social media mix right.Walter Adamson @g2mhttp://xeesm.com/walter

  4. Thanks Walter Adamson @g2m for visiting my blog and for sharing your thoughts:You are right about important role Social Media plays in generating inbound traffic. Even simple tool such as Like button via facebook can generate lot of clicks and views. As a result, sooner companies integrate Social Media channels into their marketing operations better, because customers have moved to Social Media – marketers should not be “stuck” just with traditional media – else will lose business.Thanks again for your comment and kind words, much appreciated!Harish Kotadia, Ph.D.

  5. Great article Harish. The lack of acknowledgement by organisations will be interesting to watch play-out. Those who continue to ignore the “opportunity/threat”, that Social CRM/Social Media presents, will no doubt be left behind. Whilst you may or may not agree, have you any thoughts how when this surge in uptake may happen?

  6. Thanks @trmcdougall for your comment:I agree that those who continue to ignore Social CRM, Social Media will be “left behind” by competitors who do invest in Social CRM.Regarding uptick in investment on Social CRM, I am already seeing a lot of interests in Social CRM among marketers and expect companies to start spending their marketing/IT budgets on Social CRM tools in the next 6 months. This will pick up pace considerably next year.Thanks again for your comment and kind words.Harish Kotadia, Ph.D.

  7. It is true that Social Media will be left behind because we are now living in a techie generation. The competition now in the market is getting more intense as finding clients is now easy and fast with the help of hi-tech gadgets and outsourced call center services. Call centers help their business partners by assisting the latter’s customers with their needs.

    Businesses today are now updated with the newest marketing strategy. With the help of technology and manpower from virtual call centres , they can reach their clients whenever, wherever.

  8. It is true that Social Media will be left behind because we are now living in a techie generation. The competition now in the market is getting more intense as finding clients is now easy and fast with the help of hi-tech gadgets and outsourced call center services. Call centers help their business partners by assisting the latter's customers with their needs. Businesses today are now updated with the newest marketing strategy. With the help of technology and manpower from virtual call centres , they can reach their clients whenever, wherever.

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