SCRM Bottom-Line Potential: Profits at Many Points
How does SCRM contribute to the bottom-line nature of CRM? It does so in a less direct way than CRM. Hillel, for example, is not a seller of goods or services, but it depends on donations, and its donors love the fact that the organization can now present them with quantifiable, granular data on the engagement of students with Hillel -- data pulled from SCRM.
CRM is a business tool. Like any business tool, its objective is tied to money -- either making more of it through increased sales, or saving it through greater efficiency.
Perhaps because CRM is rooted in sales force automation and hard sales, the customer's path through CRM has mirrored the customer's path through the sales funnel. The objective is to get the customer to the end of the funnel and conversion -- and then to start applying marketing and service muscle to make sure that customer stays in the fold.
When you see visual representations of this, they're very linear. They're either a funnel or a pipeline, mirroring the visual metaphors of sales, or they're circular in design, borrowing from marketing's visual lexicon.
Social CRM (SCRM) can and often does fit into these representations and helps businesses cross the "finish lines" they contain. However, part of the confusion around SCRM stems from the fact that it allows its users to apply customer data in many places along the path to sales, service and retention, often in nontraditional ways, to help reach the ultimate goal of increased revenue.
The value of SCRM can insinuate itself into the way the seller works in multiple segments of the sales path, and it can do so while offering new and useful benefits to both the customer and the seller.
Real-World Examples
For example, a major insurance house uses SCRM tools as part of its processes to prepare inside sales staff for calls. The old, linear process would have been to acquire a lead, distribute it to an agent, call, then use the data provided by the customer to prepare a quote. Research would have been done on an ad hoc basis.
The new process is acquire-distribute-research-call -- the technology enables sales staff to research their prospective customers and prepare quotes ahead of time, allowing them to make the customer experience better and to save them time so they can get more calls accomplished in a day.
Another great example is Hillel, the Foundation for Jewish Campus Life. It uses a social CRM model to track its relationships with students -- what activities they attend, where they are along their journeys as Jewish students, and so on. Facebook and Twitter are key components of the program -- as is the fact that it's speaking to young people through a communications medium they understand.
Back to the Bottom Line
So, how does this relate to the bottom-line nature of CRM? In true SCRM fashion, it does so in a less direct way than CRM. Hillel's not a seller of goods or services, but it depends on donations, and its donors love the fact that the organization can now present them with quantifiable, granular data on the engagement of students with Hillel -- data pulled from SCRM.
In other words, it can connect donor dollars to the effectiveness of the program in a way that it never has been able to in the past -- thus helping to keep the dollars coming to sustain the program. Meanwhile, students are better served as well. By the end of the 2011 academic year Hillel was tracking more than 88,000 students -- and the organization has more effective ways of alerting them about events and opportunities.
In the Hillel example, SCRM provides a means to add to the bottom line right now -- but it also builds a better relationship for the organization with students, who will grow into donors with time.
The real bottom line is always about dollars. That's a given. But how SCRM contributes to the bottom line must now be understood as something that's up to each organization to define and to measure accordingly, and those contributions should come in multiple parts of the customer lifecycle. It's not whether SCRM rings the cash register -- it's how it does so.
Research & Comment;
Do you agree with this type use of data and information? Why or why not? SCRM is the focus of many companies. Provide an example with some factual information to back –up their use of the CRM process?
I agree with this type of data and information because being a user myself of social networks, I am able to keep up with what is going on in their lives faster than just sending an email. Also as they mentioned in the article, it is easier to track how the service is being utilized and what benefits the public are getting out of using the product. Some of the examples of this type of service is forum like facebook, twitter, MSN, etc. These and other service s that are similar have 100's to 1000s of people on them a day doing all forms of business, chatting, and yes even playing games just inorder to socialize. The factual information is how many people recorded that are utilizing a CRM or SCRM in their homes, offices, and network cafes. I believe these services are going to be around for quite some time as long as people want to communicate with other people.
ReplyDeleteSCRM and CRM are important aspects of doing business online, though it is important that your customers know that their information and activities are being tracked. Information that customers would display on their social networking profiles can be very beneficial to companies who have a vested interest in that particular market. As well, simply offering customers the opportunity to "like" your business or website gives you a way of communication with that customer as well as all their friends will see that they "like" you. Free advertising potential.
ReplyDeleteIn addition to my previous comment about SCRM's or CRM's, I would certainly encourage my customers to speek to me freely about what holistic healing cna accomplish for them in changing their views on how reflexology can help their lives. Plus I would be able to inform them of further promotions upcoming and provide them with information on the recent information that has been released about reflexology and how much it is now being accepted as a service that work along side your general practitioner. I would also get valuable feedback on how many people are interested in holistic healing because this is a service that is key on customer input.
ReplyDeleteYes I agree with this type of information because when using CRM you want to be able to maintain relationships with your current and future customers. This will help your business generate revenues, help you understand what your customers want and what they need from your business in the long run as well as getting information for your business so you can keep your customers happy. I think that both the SCRM and CRM are both crucial to any business because you always need to capture your audience and customers because if you don’t, you won’t make any money. I think that some examples of factual information are the use of Face book and Twitter. There are many people that use this type of social networking which could be very beneficial to each business. This lets businesses look at what consumers are interested in and makes their jobs easier for which they target their products to.
ReplyDeleteI do agree with this system. It is very important for people to keep in contact with their customers and to do it in a modern day way. It no longer makes sense to contact your customers by mail or phone. Almost everyone is using social networking sites and it makes it easier to advertise that way. I know for myself I "like" several business's on facebook, simply because its easy and they often offer deals. This is a great way for business's to keep in contact with their customers and maintain a good relationship, which is important in money making.
ReplyDeleteOn Facebook I like the business Applebee's. They always have little quizzes for people to fill out and let you know of deals and specials going on. This way they are not only interacting with many of their customers, they are also forcing their customers to interact with eachother. This is a great way for them to promote for free and also a great way to keep customers in tune with what's going on.
I think this is a great way to communicate with customers. It's important to know your customers wants and needs and this is a definite way to do so. It is a quick and easy way to get the information you need and you would not be able to get that same information as efficiently by say mailing out a survey asking the questions you think will help you to understand your customers. I think the SCRM system will in turn help generate revenue for your company, especially when something like Facebook is free and easy. For example, i "like" the Empire Theatre link on Facebook. I was invited by a friend to enter a contest for free movies for a year, so I liked the page to be entered. Now I get updates on which movies are coming out on the weekend. So if I have forgotten about a movie I wanted to see, here they would be reminding me to come see it.
ReplyDelete