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How Social CRM is a Shift from Traditional Marketing

April 24, 2012

How Social CRM is a Shift from Traditional Marketing

Would everyone please stop yelling and start conversing?

Would it not be better to talk to people and not at them? Of course, this involves finding out what they like to talk about, where they like to talk and when they are available to chat. Plus, then we have to get their permission to talk to them again. Pretty simple, right?

Throwing the book
In many ways, the foundation for what has become known as social CRM was built in 1999 by direct marketing guru and author Seth Godin.

In his seminal book “Permission Marketing,” Mr. Godin made a powerful case for gaining permission of a prospect before any “selling” was attempted.

However, social CRM takes this concept of permission and combines it with the prospect’s social makeup, resulting in a better buying experience for both the marketer and the customer.

Mr. Godin noted that an advertising message which interrupts a prospective customer’s life – television and radio spots, newspaper ads, unsolicited direct mail – has little chance of persuading them.

The expert became famous for his advice to marketers to build a relationship with a prospect or customer over time, earning the permission to engage and sell to them.

The theory holds that when permission is earned by a marketer, the prospect is not only receptive to the message, but looks forward to receiving it.

The need for opt-in rules, which were first discussed in “Permission Marketing,” were also incorporated in text-based, mobile marketing when it was introduced.

With the highly personalized aspect of social media such as Facebook, Twitter, LinkedIn and Google+, this demand for marketers to obtain permission from potential customers was even more pronounced. Social CRM is the next step in this evolution of consumer marketing.

Evolution of CRM to social CRM
According to the Harvard Business Review, customer relationship management (CRM) is a business strategy for managing a company’s interactions with sales prospects, customers and clients.

It involves using technology to organize, automate, and synchronize business processes for sales, marketing, customer service and technical support activities.

CRM’s overall goals are to find, attract and win new clients, nurture and retain those the company already has, encourage former clients back into the fold, and reduce the costs of marketing and client service.

A logical evolution of CRM is social CRM. This combines the database technology of customer relationship management with the individual engagement information that is revealed by social media activities.

Social CRM involves the aggregation of customer information across multiple platforms, including Facebook, LinkedIn, Google+, Twitter, foursquare and other social networks to automatically aggregate better customer profiles.

Different buying and selling experience
In this new marketing paradigm, give-and-take between company and customer is much more important than the old, one-way conversations that traditional media used to broadcast features and benefits of products and services.

Now, successful marketers want to encourage timely and relevant conversations. This is, of course, driven by smart, albeit impatient, consumers who expect marketers to know not only what they are talking about, but when and where to say it.

This translates into a completely different buying and selling experience. Here is why:

• Because there is deeper knowledge about the preferences and activities of the customer, social CRM messages and content are more relevant and compelling

• With social CRM, customers have given the company their choice of the media from which they like to receive particular messages— Facebook, Twitter, LinkedIn, email, text messages and traditional mail

• Customers have given the marketer the time and frequency that they prefer to receive relevant messages and content, further confirming permission

• A customer’s recommendations to friends are incorporated in social CRM and this enhances the understanding of his or her preferences

• As the company/customer relationship continues, the customer profile is enhanced by the addition of buying patterns, product preferences and other publically available data from social networks

• This ensures that subsequent marketing messages and campaigns are customized to the customer and this leads to lower customer acquisition costs, more favorable response rates and higher click-throughs

SOCIAL CRM IS a fundamental shift from traditional, one-way marketing.

When done correctly, it eliminates much of the waste that is found in tactics that are based on interrupting the prospect with irrelevant information.

Finally, when a brand or marketer understands the social makeup of a potential customer, better decisions about messaging, timing and delivery media can be made.

- Daniel Wagstaff, VP of Development

This article was originally published in Mobile Marketer on April 24, 2012.

Photo credit: Flickr user soukup

Timing is Everything

December 21, 2011

It seems that throughout the 16 years of marriage my loving wife and I have continually had to refocus on timing. I mean timing as in when, where, why and how we exchange that everyday information that comes up through two people trying to keep careers, kids, projects, a house, two dogs, family, friends and some sort of a social life all juggling in harmony.

When we first got married, I worked out of the house when I was not traveling. My wife was a nurse, so there were days when she would be off and I would be in my home office toiling over a days work. I loved how she would come in and get in the chair across from my desk and we would share calendars and thoughts. Slowly though, I found myself feeling distracted and asking her if we could talk about it later. I would say things like “honey, would you get in your car and drive down here just to talk to me about this? If not, can it wait until later?”

Technology and chaos continued to evolve. We started using email and online calendars trying to make the everyday task of talking easier. Those all became hindrances to what was more important or pressing at the time. Then the holy grail of marital communication came our way; texting. What would we do without it? Right?

Wrong. The issue remains in my marriage that remains between brands and their audiences. I am stubborn and easily distracted. I don’t like interruptions but I want information at my fingertips. I want to know what my wife needs me to do; pick up the kids, get the prescriptions from the doctor, be at the soccer practice at 7, etc., but heaven forbid she provide me that information when I am not looking for it. Then it is a distraction.

Brands distract and annoy their audiences. “Would you drive all the way down here just to tell me that?” is something all audiences say when being bombarded with advertising and marketing. But when that audience is hungry for Chinese food, they want to know the best one within the closest two miles ASAP. They want that critical information now that 10 minutes ago was a distraction.

Technology changes. It evolves and new tools and toys come along every day. They do not change the fact that information delivered at the wrong time in the wrong context is a distraction. That same information provided when and where the audience wants it is coveted. Which is your strategy?

- Jeff Kilman, CEO
Photo credit: Horia Varlan

Social CRM: A Prescription for Patient Satisfaction

Social CRM

 

Hospitals are not known for their customer service. Think about it. The last time you had to go to the emergency room or deal with the accounting department at a hospital was the experience good or bad? How about that hospital food?

In the past, about the only things patients could do about a bad experience with a healthcare provider was to feel angry, vent to friends and then write a check for the damages. However, in October 2012, things are going to change.

As a part of the federal government’s healthcare reform act, patient satisfaction rates will affect the hospital’s federal reimbursement. This will likely get the undivided attention of the people who worry about the hospital’s cash flow and since they usually run the place, it will trickle down to the people who deal with the day-to-day patient services – doctors, nurses, janitors, food service staff and business office personnel.

Aside from the need for better staff training and more patient safety procedures (can everyone say “more hand washing!?”), the new reality for healthcare facilities will involve actually listening to patients. While this is a pain in the gluteus maximus for the hospital or clinic, it is the ideal scenario for Social CRM programs.

When properly designed and executed, Social CRM programs can build positive engagement between patients and facilities. They can also help correct poor practices and extinguish patient dissatisfaction before this has a chance to turn into an epidemic. But wait, there’s more!

  • Since the hospital maintains the patient information and contact information, there is no potential for HIPAA (privacy) violations.
  • Using email, texting and social networks such as Facebook and Twitter to monitor patient complaints and then responding to them on a timely basis will work wonders on patient satisfaction. These media can also help build patient loyalty.
  • Using mobile media to schedule appointment will save patient time and result in better satisfaction ratings.
  • Giving physicians and nurses the latest technology tools to do their job better will speed up the recuperation process, saving the patient time and money.

Healthcare has been slow to respond to the customer service lessons that every other business has had to learn. However, when there’s money on the line customer satisfaction will cure all ills.

That’s what I think. What about you? Let us hear from you. You can contact me at art.young@pocketstop.com.

- Art Young, Client Development