Conventional CRM

v/s

Social CRM

Why Social CRM above Conventional CRM?

*A survey on internet users by IBM

Trust – 78% Social Media

recommendations vs.

14% conventional ads

Forum peer /on-line

discussion vs. 26%

direct promotion

Influence – 74%

Decide – 38%

Read negative opinion >

changed mind

Verdict:

Social media is the 1st

choice for customers to:

Obtain information

Express

Give opinions, both positive and negative

78% 74%

38%

Personalized

Marketing

Mass

Marketing

Push Collaborative &

Interactive

...to relational and conversational

Quality of customer Relationship Management

often throughout the life cycle

Continuous contact

Increase in the number of relationships

maintained by the brand

From Transactional.....

Quality of customer Relationship

Management often measured as the

operational quality of the transaction

Internet contact with customer

Conventional CRM to Social CRM

Stra

teg

y

Approach

General Social Tools – How they do it

Social CRM – Myths Busted

MYTH N°1: SOCIAL CRM IS NOT HERE TO STAY Social CRM is the answer to changing consumer behavior

Advanced tools with customer data that can be increasingly exploited

40% increase in market value compared with 2010 and more than 20% extra in 2012 (Gartner)

40% rise in budget spending

MYTH N°2: SOCIAL CRM = FACEBOOK + TWITTER + (GOOGLE+) These social media are not the only scope for action

First prioritize Social CRM integration on the corporate site of the company

“Fish where the fish are”: casting a wider net on social media, where most of the brand consumers are brought together

Extending out to the preferred social media of influencers

MYTH N°3: SOCIAL CRM STOPS AT CUSTOMER SERVICE It impacts on all departments of a company

Priority departments at present: Marketing, Sales and Customer Services

Once a certain level of maturity has been reached there is internal collaboration and co-creation.

MYTH N°4: ONLY THE COMMUNITY MANAGER CAN BE TASKED WITH SOCIAL CRM Maturity analysis of the organization is needed to determine team requirements, i.e. composition

and training

Social CRM

Present Scenario

According to a survey conducted by IBM , nearly 80 % of companies

have a social media presence and most use social media for Customer

Relationship Management purposes.

Social media usage by companies

- Communicate with customers

- Respond to customer questions

- Promote events

- Generate sales leads

- Sell products / services

- Solicit customer reviews

- Capture customer data

- Brand monitoring

- Customer research

- Recruit employees

- Employee-to employee interactions

- Solicit customer ideas

- Provide support

- Expert insights / thought leadership

- Training / Education

- Customer-to-customer interactions

- Vendor or partner communications

Social Media Maturity scale of a Company

Each company can have its own Social CRM policy relevant to its internal characteristics (organization, culture,

resources, targets, global Communications and Marketing strategy, etc.) and external ones (expectations,

conversations, support, etc.). There is no such thing as a single practice that can be applied to all companies

and no set rules in terms of organization

These companies

have managed

to exploit social

media on an

industrial scale in

a coordinated and

integrated

approach

to augmented

Customer

Relationship

Management,

involving

customers in all

the key

departments

of the company,

i.e. Sales,

Marketing and

Customer

Services.

Start of relational

and

conversational

usage of Social

Media

The Social CRM

model is

integrated

as an information

silo into the

different

functions of a

company with a

limited level of

industrialization

Transition to a

phase of active

communication,

although it is still

not conversational

and lacks an

overall

strategic vision

Some

experimentation

with main social

media, Usage

focuses mainly on

communication

using the push

and

passive approach

No Move

towards

Social Media

Pre - Social

Experimental

Connected

Engaged

Strategic

Social CRM – Need of the time

Why Social CRM?

Customers are increasingly located in social media.

The companies, therefore, need to be where the customers are.

Why it can’t be ignored?

• 80% of Internet users use at least one social network

• 80% of consumers want a dialogue with brands on the Internet

• Facebook has 750 million active members worldwide

Expectations:

Blogs & forums: Longer, in-depth conversations and interactions

Social media: Expressions without necessarily expecting a reaction

Social CRM

Ideal Scenario

Understand Get customer insights on

individual‟s profile, history

and environment

Build Create closer relationship

with individual

Influence Encourage brand loyalty

Brand community Advertise

Campaigns: Run launch

offers, events, promotions

Amplify Message spreads via

friends & followers

Measures Analytics on consumer

behavior, source of

pre-purchase information

Impact Interactions with company

sales forces

Explore opportunities New marketing and

sales channel

Social CRM - Usage

Customer Service: Effective handling of customer dissatisfaction

Enriching loyalty programs:

New customer acquisition:

Measure & explore opportunities:

How Social CRM processes are distributed across a company?

Communication Marketing Sales Customer services

Increasing brand

Reputation and visibility

Improving

retention rates

Generating

Qualified Leads

Improving the quality

of services

(speed relevance, etc)

Monitoring

Online

�conversations

Managing

and measuring

e-reputation

Utilizing

brand ambassadors

as word-of-mouth

potential

Online and offline

campaign-mixing

as part of a global

strategy

Encouraging

experience-sharing

and feedback,

rewarding influencers

Monitoring consumer

rections to improve

the effectiveness of

marketing campaigns

Understanding

customers in real time

their precise needs,

based on the social graph

Capturing sales

opportunities by

identifying leads in

community real time

Using

communities

to develop lead

identification programs

Increasing contact

avoidance by

transferring

Knowledge to

communities

Capitalizing on �customer

knowledge to enhance and

correct support services for

customers

Reducing

response time

to crisis situations

and complaints

Companies adopting to Social CRM should remember…

Be original:

Social media customers are often looking for an “authentic” dialogue, as opposed to the scripted

dialogue delivered by contact center agents. So companies will need to adapt their conversations

with customers so that they are more in line with the general tone of an exchange.

Be committed:

Opting for social CRM is without a doubt a long-term commitment as Social CRM should be a daily

and ongoing practice. It is not a series of campaigns that need to be implemented

Be flexible:

Companies need to find the right balance between steadfastness and speed - a balance which is at

odds with firmly entrenched procedures. A flexible approach to social support is essential

Be simple:

In “conventional” customer support processes, a certain number of validation steps are necessary.

With social media, it is vital not to end up with too many steps as this may result in “loss” of a

customer who is expecting greater reactivity than in traditional media

Social CRM

ROI

Evaluating the effectiveness of Social CRM - ROI

• Return on Investment or Return on Objective (ROO) is still very much

dependent on initial strategy. The benefits of Social CRM cannot be

measured uniquely in financial terms (transactional marketing), as the

notion of ROI would suggest.

• Risk Of Non Investment (RONI) - The effectiveness of Social CRM is

measured firstly in terms of the risks incurred by companies who decide not

to use it. Deciding not to adopt a Social CRM approach means refusing to

align with a long-term sociological evolution in consumer behaviors.

• Social Media strategy thrives on potential business opportunities that could

bring fundamental changes to the customer/brand relationship and

increase profitability in the long term.

A stratified ROI concept - DELIVERING THE RIGHT

INFORMATION TO DIFFERENT AUDIENCES

Business Executives Business Metrics

Profit generated,

Reputation

rating, Cost reduction

Assessment etc.

Business stakeholders

(management. employees,

suppliers, investors, etc)

Social Media Analytics :

Information obtained from

comments on social media

Scope of conversation,

Impact of ambassadors,

resolution rate of issues,

etc

Operations

(community managers,

Developers, agencies, etc.)

Customer & Prospect

engagement data

(opt-in, etc)

Number of clicks,

fans, followers, check-ins,

views, re-tweets, etc.

Role Metrics Specific Data

Return on objective (ROO) and key performance

indicators (KPI) to measure

“SOCIAL ROI”

• The Return on Objective helps companies that are genuinely customer focused to improve their operational evaluation of the quantitative and qualitative impact of Social CRM

• Instead of measuring the success of a campaign by focusing only on additional profit generated, ROO allows companies to better anticipate the overall Social CRM gains based on the conversational and relational impact as well

• Four big strategic objective categories (brand perception, effectiveness of marketing, revenue growth, savings)

KPI # 1 - Strategic objectives on brand perception

Brand equity

- Loyalty

- Reputation

- Perceived quality

- Brand associations

- Other assets

Customer experience and satisfaction

- Satisfaction rates compared with other

contact channels

- Likeliness to recommend (Net Promoter Score)

Churn rate

Social CRM is about improving the reputation of a brand, its association with

customer values, buying intentions linked to this, etc.

Examples of KPI:

Identifying with the brand

- Volume of online posts and print-offs

- Developments before, during and after Social

-CRM campaigns

Share of Voice

- Number of times the brand is mentioned on

social media

- Comparison with competitors

Propensity to buy

Brand website audiences, the number of links to these sites and how they are

indexed by search engines can all benefit from the Social CRM approach.

Examples of KPI:

SEO

- Development of referencing on search engines

- Volume of traffic on a company website

- Volume of traffic on social media

Scope and development of conversations

- Number (and growth in the number) of followers, fans, subscribers

- Number of connections on third-party software

- Number of interactions

- Audience participation

Number of clicks, shared threads, mentions, responses, assessments, comments,

re-tweets, votes, downloads, participants, favorites

KPI # 2 - Strategic objectives on marketing effectiveness

Many brands have enjoyed fruits of social media activities over the period of

time in terms of revenue.

Examples of KPI:

Lead generated by Social Media:

- Wider audience generated

- Number of contact forms completed on website

- Number of contact forms completed directly on social media

Impact of Social media on online and offline sales:

- Turnover generated through social media

- Rate of differentiated transformation in social media monitoring

- Retention rate compared with other channels

KPI # 3 - Strategic objectives on revenue growth

KPI # 4 - Strategic objectives in terms of savings

This is not the only criterion that allows a “social ROI” to be calculated, but it still

needs to be taken into consideration. It can take the form of either an increase in

sales or a savings on marketing costs.

Examples of KPI:

Cost per lead compared with other

channels

Cost of customer data acquisition

compared with other channels

Creation of community

Content: number of notes and assessments (User Generated Content) - forums, wikis number of issues resolved by customer support services number of issues resolved by the community

Savings on customer support services:

- resolution rate

- cost of using social media support

services compared with other Channels

- rate of contact avoidance on other

more costly channels (e.g., telephone)

Savings on marketing surveys:

- reduced survey, interview and small

group costs

- reduced costs for focus groups and

mystery shoppers, thanks mainly to

the availability of customer data

from social media

Present Market

Offering

HGS SCRM Work Flow

Function

Listening

Collecting

Redirecting

Interacting

Measuring Assessing the performance of CRM KPIs

implemented thanks to data obtained from

social media.

Retrieving information from social media

intelligently and integrating it into the various

existing databases to build an overall picture

of the contact.

Retiring and sorting information to ensure it

is redirected to the adequate group of

people.

Retrieving raw data from people who

have registered on identified sites.

"Listening" to information on social media as a way of

becoming better acquainted and adapting strategies offline

(understanding how customers/prospects perceive the

company or new products/offers marketing campaigns -

without retrieving customer data.)

"Listening" to social media

for offline analysis and

responding in non-real time.

Enhancing the database for

offline analysis and

responding in non-real time.

Using data from the right

people for offline analysis and

responding in non-real time.

Enabling online reactions

(in real time) and using

intelligence in the selected

channels.

Adapting CRM KPIs that have

already been implemented.

Objectives Description

HGS Social Offering – Functions & Objectives

Maturity Strategy Functions Objectives

Listening, measuring and

analyzing the information

retrieved from social media Managing KPIs on

a single channel

Listening / Collecting /

Measuring

Managing KPIs continuously

and in an integrated manner

on different channels

Listening / Collecting /

Redirecting /

Measuring

Obtaining an overall

picture of the contact.

Creating community

platforms

Listening / Collecting /

Redirecting /

Measuring

Proactively engaging customers

and monitoring them on

different channels

Managing KPIs and responses

in real time on different

channels, whilst integrating

customer participation

Listening / Collecting /

Redirecting / Managing

/ Measuring

Creating interactive

platforms

HGS Specialist Social Tools – Methodology

Social CRM

Case Studies

Hinduja Hospital: Monitoring & Engagement

Key objectives: • Community building on prominent social networking sites – Facebook, twitter, foursquare, YouTube

and LinkedIn

• Brand monitoring

• Reputation Management

• Generating conversations about new initiatives of hospital, i.e., first lung transplant in India, etc.

A phase-wise development strategy was developed wherein brand presence on social networks was

built with profiles and sections, with listing of services and information. Developed a content approach

which is similar to a health magazine, and develop interactive tools and calculators.

Regular monitoring of on-page & off-page interaction is assessed and reverted to in real time,

channelized via escalation to Hinduja Hospital. The hospital is gaining popularity on social networks

with average rise of 20% per week; currently the weekly reach is over 103,129 people with 1,164

weekly impressions.

P. D. Hinduja National Hospital & Medical Research

Centre is an ultra-modern tertiary care hospital,

internationally acclaimed for its world class medical

services, covering all specialties and diagnostics.

Dish Hospitality: Aurus

Key objectives: • Translate and transmit event experience via social media platforms, and channelise it to enhance

brand image & identity.

• Generate buzz about event & increase footfalls to the event.

The strategy for Aurus was to engage, create innovative concepts to showcase the brand, build

interaction and channelise cross promotion, while increasing footfalls. Technology integration for Artist

section created a unique brand identity for the artist and brand.

Generated user interest by content dissemination, while monitoring and responding to the online

community and their reviews and comments.

Fan response was overwhelming, from a revert rate of 5 RSVP‟s; it soared to 450-500 attendees.

Strategic cross linking resulted in 5000+ followers for Aurus Sunday Sundown's Twitter page, with

effective bookmarking reducing the impact of negative reviews.

Located in Mumbai, Aurus – a fine dining restaurant, is a part

of Dish Hospitality, a group that is focused to conceptualise, build

and manage innovative hospitality and lifestyle concepts.

Christened „The Aurus Sundown‟, the restaurant featured

international award winning electronica acts every week during

Sunday Sundown.

Dish Hospitality: Sancho's Restaurante & Cantina

Key objectives:

• Keep patrons updated on social

networks about restaurant

events, menus, and other

activities throughout the year

• Deliver brand essence on social

networks & enhance brand image

• Campaigns to increase footfalls

• Offers & deals promotion

• Reputation management

• Brand monitoring

Ideated and executed engaging campaigns to maintain

positive brand sentiment, these included successful

campaigns like Friday Night Campaign and Women‟s Day

Cocktail campaign which resulted in a 50% rise in page

views.

Proactively inviting community (social influencers) to get

involved with brand communication (food bloggers meet).

Monitored and responded to the online community and their

reviews and comments, this included extensive Twitter and

Facebook brand reputation management. The number of

unique people reached via campaigns 3,98,868.

Sancho's Restaurante & Cantina is one of Mumbai‟s major

standalone Mexican restaurant in Mumbai. Sancho‟s serves

authentic Mexican fare and has been voted the Best Mexican

Restaurant in Mumbai by the Times Food awards 2011.

Tata AIA Life Insurance: Brand Monitoring

1. Monitor conversation on social media relevant to the brand.

2. Scan networks: News, Blogs, Forums, Social Media, Video

3. Perform analysis and tagging of conversations

4. Understand brand sentiment, user perception & pain-points

5. Work alongside TALIC team to define escalation points, departments to contact and

resolve customer queries

6. Recommend response strategy and support for closing critical issues (Prioritizing

comments, drafting reverts, canned responses, etc.)

7. Generate report on sentiment analysis, influencers and reverts

SET-UP & MONITOR

Amplify positive

reviews, revert to

neutral mentions &

act on negative

mentions

ANALYSIS & REACT

React to negative

mentions: Create

buckets, escalation

points & resolve

accordingly

RESPONSE & REPORT

Keyword density,

Sentiments,

Influencers, TAT

Performance report,

Response Trend,

Open Questions

IMPACT & GAIN

Positive brand image,

Target Influencers to

be Brand Advocates

THANK YOU