CRM's + social networking = success?

Although it has been awhile since we have talked about CRM systems in class, I continue to find them very interesting, and decided to write my blog about a new concept that has just recently been worked into many companies called the social CRM. CRM encompasses all aspects of customer resource management, from initial purchase to the follow-ups, troubleshooting, and repairs. Companies invest millions of dollars in setting up calling centers to help customers who have issues with their product. However, problems have arisen as customers turn to their peers (rather than trained professionals) for help. This is what the article “Social CRM's Point of First Impact” from the CRM Buyer section of the E-Commerce Times addresses.

As young adults, we are all very in touch with what is 'trendy', and an obvious trend on line recently has been social networking sites like Twitter, Myspace, and Facebook. These are sites where we can interact and communicate with our peers and other people who have similar interests. The idea of a social CRM is very similar, but geared towards a specific product. Social CRM's are interfaces where the different users of a product can get together to share problems and solutions that only other day-to-day users of a product would have encountered, and the solutions that they would have attempted that have not worked, along with those that have. It was suggested in the article that agents of the company should also monitor the site to weed out unhelpful comments and post correct responses of their own.

Although there is no denying that this is an innovative idea based on the technological wants and needs of a new generation of consumers, the jury is out on whether this is actually a good idea or not. Chris Bucholz, author of the article, argues that this is the means by which consumers are now comfortable solving problems: after trial and error on his/her own, the consumer turns to either peer evaluation or research of unidentified fellow users who they do not need to call in to talk to (specifically, posts on the topic brought up through Google). Therefore, this type of CRM would fulfill the need of a correct answer, and also keep the consumer in his or her comfort zone. In addition, it might cut calls into the service center, thereby cutting costs for other forms of CRM. Social CRM's would essentially turn everyone into a do-it-yourself man who actually knows the correct way to do it themselves. Costly after-the-sale service would no longer be a nuisance, and customers could get the answers they are looking for with less additional cost to the company. This is important because, in this economy, it is just as important to cut costs as it is to keep customers.

However, I worry about something that was brought up in the article, but not specifically addressed as problems. One of the reasons that Bucholtz claims it is important to have good Customer Resource Management is because “Customers are increasingly taking their service questions to their peers first...causing the company to now be merely the cause of the problem and not part of the solution.” Therefore, a networking site wouldn't address the issue of customer frustration with the company, only the issue of frustration with the product. Once this issue is solved, social CRM's will be a good addition to any arm of customer service.

(1) http://www.crmbuyer.com/story/69520.html

(2) http://www.web-strategist.com/blog/2009/03/22/the-future-of-twitter-social-crm/