CRM - November 2008 - (Page 48)

CONNECT BY PAUL GREENBERG Gather the Tools for Customer Engagement Social media is changing the face of CRM. Are you prepared? S Remember: These are tools—not substitutes for strategy O M E F O R M S of social media are tools—blogs, wikis, podcasts. Some are user-generated content or for engagement with customers. They have their own (UGC)—comments, reviews, social tags and benefits and problems and should be used judiciously. Think that’s an unnecessary reminder? A little history, bookmarks, rankings, ratings, photos, and videos. (There are also more-sophisticated examples, such as so- maestro: The biggest battle CRM vets have had to fight was cial tags used in the creation of folksonomies, organic with our clients. Why? Because the vast majority of those clients saw—and still see—CRM as just a technology. Degroups that simplify categorization.) In early 2008, Forrester Research studied spending lev- spite our protestations that CRM was actually a strategy els among 333 interactive marketers at midsize and large enabled by technology, the myth persisted to the point that corporations. Despite a poor economy, a significant share practitioners would cripple themselves by implementing planned to increase investment in several areas (see chart). CRM before developing a plan for their customers. The problem is that the industry essentially consists of Yet in terms of display ads, only 10 percent are increasing spending and 40 percent will actually cut back. You could software and software-as-a-service vendors; they wanted— infer that we’re in the early stages of an exodus from tradi- and still want—to sell technology wares. Vendors might tional marketing—and to some extent you’d be right. But say, “CRM is not about software; it’s all about people,” but this only means that companies are becoming aware that it wasn’t people they were trying to sell you the next day. You think that mind-set has changed? Nope. Businesses they have to change how they’re interacting with customtend to throw tools and technology at what are essentially ers. They aren’t necessarily doing it. In fact, most of them aren’t. In February, IDC reported human issues, hoping to automate those issues away. Even that only 14 percent of enterprises polled had social net- today, as we recognize that beneficial customer interactions works; by year’s end, though, that number was expected to are governed by trust, transparency, and personalized expereach 41 percent—meaning that white-label social net- riences, the new answer seems to be to throw blogs, wikis, works (and communities) will be entering the main- and social networks at the interactions—perhaps tied to stream. Well, maybe: In May, Kathleen Reidy of the analyst some sales, marketing, and customer service applications. firm The 451 Group polled 2,081 technology and business Companies will be inclined to use these tools because: 1. everyone else is; professionals and found only 24 percent had the tools to 2. they’re really cool and fun to play with; and build or use social media (which the report defined as 3. they seem an easy out for developing a customer enblogs, wikis, and social networks). First, don’t be fooled by that number. If 24 percent were gagement strategy. (That thinking will cost you, big time.) This is, again, the wrong approach. using social media, that’s about 24 percentage points more Take my advice, please. These are than three years ago. And Forrester’s SHARE OF MIDSIZE OR LARGE CORPORATIONS social media tools—and they’re meant research indicates a willingness to INCREASING INVESTMENT IN THE FOLLOWING: to be used as enablers, not drivers. spend on social media—but not by More to the point, they’re not substitechnology departments. tutes for anything. And, like pretty These social tools can be confusmuch everything else in life, the only ing, and they’re not a clear part of a tools worth using are the ones that traditional CRM strategy. The idea is have real value. to get acquainted with them first. Social Networks 48% The social tools most important for User-Generated Content 42% Paul Greenberg is president of The 56 Group CRM (i.e., blogs, wikis, and social Email Marketing 41% (the56group.typepad.com), a strategic CRM consulting networks) deserve more explanaservices firm, and a cofounder of CRM training company Blogging 40% tion, but suffice to say you need to BPT Partners. The fourth edition of his best-selling book, Search Marketing incorporate them into your engage38% CRM at the Speed of Light (McGraw-Hill)—from which Source: Forrester Research ment strategy. this article is excerpted—will be out in early 2009. www.destinationCRM.com 48 CUSTOMER RELATIONSHIP MANAGEMENT | NOVEMBER 2008 http://the56group.typepad.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - November 2008

CRM - November 2008 Contents Front Office Feedback Reality Check Customer Centricity The Tipping Point Working with the Years CRM on Twitter Virtual Spenders Contact Centers Chatting to Success The Complexity Chasm Required Reading Generational Spending: A Special Report Who, What, Where, When, Y The Slackers’ X-cellent Adventure The Boomer Boom The Matures Endure Boosting Productivity North of the Border Changing the Channel Invicta’s Thrill of Victory Secret of My Success Connect Re:Tooling Pint of View

CRM - November 2008

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