The Ultimate Social CRM Resource Guide – 1st Edition

Yesterday morning at Gartner’s CRM conference, it was said that Social CRM will be a $1 Billion market by 2011. (That’s right around the corner folks).

All of a sudden, there is a lot of noise in the marketplace about Social CRM. In a sure sign that Social CRM is racing towards the mainstream, Chris Brogan even recently named Social CRM as one of the three hottest trends to look for in 2010.

Below are the best resources to get you up to speed on Social CRM as quickly as possible, and capture first mover advantage in your market niche.

Number One:
Start Here: The Author of the “CRM Bible”, Paul Greenberg, recently authored what will soon be known as the “Social CRM Bible” in his 4th edition of CRM at the Speed of Light. Spending $20 and a bit of time in this treasure will go a long way towards helping your organization embrace the opportunities emerging now and in the future.


CRM at the Speed of Light - 4th Edition

Want to know who Paul reads and listens to? Check out his recent blog post on “Social CRM: The Conversation” on ZDNet – “Following on More than Friday: The Ones who teach me”

Number Two:
This one is a must read and there is plenty to chew on and ponder how these changes will effect your business. Graham Hill’s – A Manifesto for Social Business outlines 15 key mega-themes of changes happening to the corporate landscape and how businesses must evolve. Take note. This is almost too much insight for just one blog post and triggered some great back channel discussion between many of us several months ago.

Number Three:
A great list of conversations and posts from the Social CRM Accidental Community who have been actively participating in the seminal discussions of Social CRM “industry” for the past 18+ months. This list has been largely curated by Prem Kumar Apraranji. This is a great resource list in and of itself.

Number Four:
Mitch Lieberman, Jacob Morgan, and Connie Chan did a nice job on their recent white paper, Chess Media Group’s “Guide to Understanding Social CRM”, which speaks about the evolution of CRM to Social CRM, and how corporations should look to adjust their business model(s) to engage with the Social Customer.

Guide to Understanding Social CRM

Number Five:
Jeremiah Owyang and Ray Wang of the Altimeter Group did a fantastic job bringing structure to a fragmented conversation and laying the framework for assessing where the market opportunities are now, and where they’ll be as we journey forward. Use this document to frame your conversations about leveraging Social CRM tools in your organization. Where will you start, and what are the greatest opportunities for your organization now and in the future?

Number Six:
Ready to start looking at vendors? Jim Berkowitz has assembled a comprehensive list of Social CRM vendors broken down by their specialty. Start your vendor research here.

Best Damn Social CRM List Ever

I have a thought or two, too!

If you are interested in reading some of my musings, click here for some of my articles on the topic of Social CRM

Join the Social CRM conversation


Want to join the real time conversation as it happens?

Here are a few ways to participate:

1. On Twitter

Follow the #scrm hashtag.

Looking for a list of people to follow on Twitter? Here are a few places to look.

2. Social CRM Pioneers Group
Get involved in the Social CRM Pioneers discussion group

3. Share your thoughts below or send me a private note

Have some other suggestions for the list? Please feel free to add them below.

Oh, and if you found value in this post, don’t forget to tell your friends!

Circles: The Real Driver behind Social Business

We were all born into a circle. At one time in human history, our circle never extended beyond our family. The circles then extended to our tribe, and then our village. Circles then extended outward. They were drawn around common languages, common religious beliefs, and then nation states. Advances in technology have helped enable the extension of these circles. Our circles now have the capability to nearly encompass the whole earth.

It’s too much.

So, we begin to draw narrower circles that are more manageable. We apply filters that help us to find those people and things that are most interesting to us, those that will help us accomplish our need. We have the ability to include other people in the circles we have created or joined.

This process is innate. We did it in school growing up. We do it in our neighborhoods. We do it professionally.

We join or create a circle called an organization. Within that circle are many other circles. The one around your physical location. The one around your department. The one around those that you call work friends.

Advances in technology enable us to draw more circles, more often. Circles that transcend traditional boundaries. The ability to draw more creative circles has evolved with the mass adoption of phone, email, and the internet.

Social technologies have allowed us unmatched freedom to create these circles. The biggest circle now encompasses the whole planet. We know increasingly more about existing circles (communities, groups, customers, organizations, and the individuals within those circles).

It is becoming easier to build a circle around a single purpose.

There has been increasing debate and discussion about Social Business, Social CRM, Enterprise 2.0 and the definitions of each.

The truth is that the change happening around us is simply about rapidly creating circles around a need.

There is someone out there right now that is trying to do something. They need your help. Social technologies have afforded us the ability to find, listen, and engage with them. You have the ability to quickly create a circle of folks who can work together to help them solve their problem. If that person with a need is “outside of your organization”, and your circle can provide something of value in exchange for currency, we call them a customer.

If you are able to do this over and over, circles containing multiple customers are created. They can, in turn, create their own circle or circles. They can tell stories about your circle to other circles they belong to. Some might label this process Social CRM.

If the same scenario happens behind the veil of corporate walls, we label this collaboration. We call it Enterprise 2.0. The ultimate value exchange might look a little different as currency might not be exchanged. But we’ve done the same thing. We’ve created a circle of collaboration to solve a problem – a purpose. The only difference is that the focus of goal was to solve a need within our existing circle.

The dynamics of these circles aren’t new. Humans have organized in this fashion for eons.

Here’s what is new, and is rapidly changing the fabric of society and business:

  • We can now create circles with unlimited amounts of people in them
  • We know increasingly more about these circles because of the data we are collecting, and the analytical capabilities we have
  • Any conversation within one circle can be shared with an unlimited number of circles
  • Circles are increasingly dynamic – they can be drawn, erased, and/or reconfigured almost instantaneously

Could all the complexity of this world really be wrapped up in… Circles?

Three New Required Roles for your company: (#3) Media Mogul

Longer ago than I’d like to mention, I started a series called “Three New Required Roles for your company”. As the business landscape changes, shifts in business models and design require new roles and adjustments to traditional thinking. New opportunities emerge, and businesses who understand the greater trends can profit from seizing these gaps in market awareness and efficiencies.

In the first first two posts of this series, I advocated incorporating two new roles into your organization. These were:

(1) The CIA Operative, which highlighted the importance of listening to what folks are saying about your company, your products and services and other key topics that are relevant to what your organization is interested in.

(2) The Social Anthropologist, which highlighted a rapidly growing requirement for a skill set that has previously been relegated to studies of remote people groups, but now has potential ground breaking applications for forward looking organizations. Know your customers (and their network).

If you haven’t read those, or you need to refresh your memory, please (re)read those at your convenience, as I’d love to hear your thoughts, feedback, criticism (or praise).

Now, let’s take a look at the third and final critical role necessary for you to compete in the new business landscape: Your company’s very own Media Mogul.

I’m not talking about a web designer. I’m not talking about the Director of Marketing who comes up with good campaign ideas and glossy slicks to hand out at trade shows. I’m not talking about Press Releases.

I’m literally asking you to think about figureheads like Rupert Murdoch, Michael Bloomberg, Oprah Winfrey, Steve Forbes, Ted Turner, etc. Get those people in your mind. Imagine them working for your company. Think about how they’d corral attention in your business domain. Keep them there and let that image frame this conversation. We’ll come back to those folks later.

Oprah

Ted Turner

Ted Turner

There are at least 5 reasons why we need to consider this strategic hire:

(1) Time is the most elusive resource for all of us. We increasingly only seek media that we want and need. Filters play an increasingly important role in our daily lives. Your customers, prospects, partners, influencers, and vendors in the same boat. If you’re not providing something that they want or need, it’s not getting through.

(2) EVERYONE (including you and I) now has access to content creation tools AND significant media distribution channels. More and more individuals and organizations are hopping into the pool everyday.

(3) Traditional company centric messaging is increasingly ignored, less effective, and more expensive

(4) The makeup of Internet content is rapidly moving:
—> AWAY from text TO rich media
—> AWAY from computer based interaction TO mobile device interaction
—> AWAY from unidirectional communication and information consumption TO multi-directional annotated sharing, conversation, and feedback

(5) Valuable Content is being syndicated at exponential reach through newly formed and evolving “Communities of Trust”.

Look at points 1 and 2. Merge them together. Time is the most elusive resource for all of us and EVERYONE has access to content creation tools AND significant media distribution channels.

There is an absolute collision happening right now. Blogs, Microblogging, Video Production, and other Interactive Media Production is now essentially open to everyone. A huge majority of new media distribution is on “free” channels. There is a rush to participate.

People who were already faced the challenge of time management, are now faced with an increasing complex dilemma of what to read, who to listen to, who to talk to, etc., and every day there are more entrants competing for our time and attention… for your customer’s and prospect’s time and attention.

In short, there is chaos. And, where there is chaos, there is opportunity.

With the inability to filter, we look for others to help us with our decisions of what media to consume. Who do we trust? People we like. People we trust. People we admire. People…like us. This is one reason why Valuable Content is being syndicated at exponential speed and reach through newly formed and evolving “Communities of Trust”.

There is a heated battle happening for attention.

Those that are able to capture it, provide something extraordinary while they have it, and enable those that engage to share with their trusted circle have a huge advantage. Once you gain pole position, you have a great chance to stay there. (Hat tip to Tom Foremski at Every Company is a Media Company who provided this analogy and seems to have very similar thinking on this)

For a moment, let’s bring those media moguls we referenced earlier back to the forefront of this conversation. What is the common thread for each of them? There are probably dozens, but here’s a key one: They have consistently created (bought, or curated) compelling and interesting content consistently over time that attract people AND keep their attention. Many of them have also bought distribution channels so that they could control the content on each respective channel.

Who else is doing this, and what benefits have they reaped?

Wine Library

Gary Vaynerchuk grew his family’s local New Jersey liquor store into a $60 million dollar a year business by creating a daily video blog Now he’s written a book, has signed a multi-book deal, has joined the speaker circuit, and his company is growing even more as he rides the media wave.

Blendtec – a blender manufacturer

Created one of the most successful viral marketing campaigns ever and increased their retail sales by more than 700% because of it! Read the case study. Perhaps many of you can relate.

They’ve since parlayed their initial success of that “media” into the production of 96 videos capturing the attention of millions of would be customers.

In another recent stroke of genius, they leveraged the recent hype and publicity of the iPad to create this cameo appearance on YouTube, which oh, by the way, has garnered more than 6 MILLION views in just a few weeks. Here’s the video:

BluDot

Here’s another example from BluDot, a chair manufacturer who observed a community culture in SoHo of those who liked to find interesting things on the street and take them home. In response, they came up with a creative experiment, and subsequent video:

But, it doesn’t have to be video.

Read this article posted on the American Express OPEN site about how a university differentiated themselves by giving their prospective attendees (prospects) something useful that helped them achieve what they are trying to do.

The Altimeter Group recently produced a framework for Social CRM which has garnered nearly 40,000 views at the time of writing this post, which by the way, is a very good starting point if you are considering a Social CRM initiative.

You get the idea. Think along these lines. Think outside the realm of your traditional thinking. You are now a media company.

And if you want to get a glimpse of where this all is heading so you can be ahead of the curve, here’s a VERY interesting glimpse into the future of publishing:

And finally, if you’re still not convinced, check out what’s happening over at salesforce.com.

It seems that marketing and business visionary Marc Benioff also sees things the way that I do. In addition to Salesforce.com’s recent acquisitions of Jigsaw and launch of VMForce, he just hired his own Media Mogul, Steve Gillmor, away from TechCrunch.

March Madness: Timeless Business Lessons from the Greatest Coach of All Time

The Final Four tips off tomorrow to determine who will play in the NCAA Men’s National Championship Game.

Every March, 65 basketball teams are given an admission ticket for a chance to play their way into a dream – competing for a National Championship. It’s my favorite time of year. It’s a time where most dreams are never realized, and some dreams are shattered when attainment is just inches from their grasp.

Not unlike the social landscape, the NCAA Tournament (aka March Madness) is a great equalizer. It’s a place where the small guys get to face the giants and see how good they really are. It’s a place where undiscovered stars emerge under a giant spotlight to take center stage and sometimes, just sometimes, this is where magic happens. Schools like Texas Western defeat legends like Adolph Rupp’s Kentucky. Little schools like Northern Iowa conquer untouchable top ranked giants like the University of Kansas.

Fans and observers across the USA simply love the excitement and adrenaline rush of buzzer beaters, agonizing near misses, and the thrill of the “win or go home” environment. Well, at least most fans do…

This March was a little different for me. Number one, I regrettably didn’t get to watch many games. (On a positive note though, as referenced above, I did fare better in my pool than Brent.) Secondly, I suddenly found myself witnessing a different kind of “March Madness” unfold. Use of the word “Social CRM” has absolutely exploded. A relatively small conversation between a few of us a year ago is currently experiencing “hockey stick” interest and discussion.

Social CRM Search Volume

Now this growth and interest is a good thing. I firmly believe that Social CRM has the potential to reshape modern day commerce. If you’re just getting up to speed, check out a great compilation of valuable discussions curated by Prem Kumar.

But, boy have I seen the term misused, misinterpreted, and all of a sudden there is a rush of new definitions, new models, and anything related to social media is now being called Social CRM. Some are arguing that the term shouldn’t even be used, and trying to rename it to align it with their own agenda. Many posts and discussions have become misleading, misguided, and in many cases, myopically focused on the latest social tools with absolutely no real context, strategy, purpose, or value behind them.

STOP THE MADNESS!

Over the course of NCAA basketball history, there is one coach who stands far above the rest.

His all time coaching record was 885-203.
In more than 40 years as a player and a coach, he NEVER WAS ON A LOSING TEAM.
He won 10 National Championships.
He won an unbelievable 38 STRAIGHT NCAA tournament games, leading to 7 STRAIGHT NATIONAL CHAMPIONSHIPS.

His name is John Wooden.

While he applied his principles to coaching young men to play a game, he could have applied them anywhere and had a similar track record. He was (and still is) simply a remarkable leader.

For a stretch of 12 years in a row, Coach Wooden navigated the UCLA Bruins successfully through March Madness, defeating countless adversaries on their way to appearing in a championship game. During the course of his tenor, opposing coaches and players devised new schemes, new defenses, innovative offensive plays, fancy tricks, and spiced the game up with a little “razzle dazzle” for the entertainment the crowd. Wooden never lost his focus.

Ironically, he never focused on winning. He identified 12 key principles, and he pushed his players to give everything they had to try be the best they could be. He believed the results would take care of themselves.

To Wooden, winning was the result of focusing on just three things: Fundamentals, Conditioning, and Teamwork. He was and is, at the vivacious age of 99, a man of profound simplicity. To tie the 3 things to the business world, conditioning equates to simply striving to increase your competence everyday. An oft used term right now for Teamwork is “Collaboration”.

In this fast changing landscape of new toys, schemes, tools, and ideas, we can probably heed some things from Coach Wooden. I urge business leaders and those who are advising them to capitalize and leverage new opportunities brought about by emerging technologies and strategies to not lose sight of the core business fundamentals critical to their success.

For each organization, these core fundamentals will likely be slightly different. But there are many that can and should apply across the board.

What are the core business fundamentals YOU believe organizations should be focusing on today?

Please share them in the comments section. I’ve taken the initial stab with a short list below. I look forward to your additions.

  • Align your entire value delivery chain around customer needs
  • Constantly measure and improve your customer experience
  • Draw talent, customers, and partners to your organization by constantly doing something that others can’t, or won’t
  • Build loyalty (with customers, partners, suppliers, and employees) by exceeding expectations and offering an unbelievable value proposition
  • Execute: Do what you say you are going to do

And, before we go, in this rapidly emerging world where “reputation management” is becoming more and more relevant, here are some valuable parting words from Coach Wooden:

“Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are.” – John Wooden

Thanks Coach for getting us back on track.

Three New Required Roles for your company: (#2) Social Anthropologist

In the first post of this series, we talked about listening for what people are saying about you, your brand, your market, your products and services, or market needs that your organization has an answer for. I intentionally didn’t dig into all the things you can do with that data – some are passive and some are active. The important part was listening. Turning that data into actionable insight is where the real magic can happen, but that’s a post for a different day. ;)

A couple of weeks ago, well known social superwoman blogger Amber Naslund sent this surprised tweet out:

Amber Naslund Tweet

It is very interesting indeed. But I think I have a good idea of where that hiring company is going.

Today, I’m going to turn our attention to the second required role for your company: The Social Anthropologist.

I don’t know about you, but when I hear that phrase, it immediately brings to mind sleepy images of some British guy talking slowly and methodically on a Sunday afternoon about some displaced nomads in the bush of Botswana.

African Tribe

But that’s not what I am talking about here. I’ve said it once and I’ll say it again. Know your customer.

Today, most companies are doing a good job of profiling their customers based on transactional data.

(1) Who spent the most money with us this year?
(2) Who is forecasted to spend more money with us next year?
(3) What net new opportunities do we have?

We may be breaking this data down by region, SIC Code, etc. We may have history of our marketing campaigns, response rates, phone calls, web form submissions, email interactions, sales person’s notes. We’ve got it all; Mounds and mounds of data about our customers.

With all this data, we may think we know our customers. But we don’t. In fact, we know very little about them.

A more complete customer profile

Harvey Mackay set out decades ago with his Mackay 66 to learn more about his customers. It was a differentiator. This was the next step towards actually knowing our customers. Do something like this, and you’ll be heads and shoulders above most of your competition.

But what if we were to take it even one step further?

What if we were to not just know about our customers, but also about the groups of people that they were part of, who they interact with, how they interact, and why?

Wikipedia defines Social Anthropology the following way:

Social anthropology is the branch of anthropology that studies how contemporary living human beings behave in social groups.

Practitioners of social anthropology investigate… the social organization of a particular people: customs, economic and political organization, law and conflict resolution, patterns of consumption and exchange, kinship and family structure, gender relations, childrearing and socialization, religion, and so on.

Most of our customers don’t live on an island (unless they live in Hawaii, or Australia, or… Suwarrow). No, I’m not talking about that kind of island anyway.

Strive to learn about your customers (and prospects) in the context of their lives.

They (We) all have circles of friendships, professional relationships, patterns, etc. that we live by. We have patterns of decision making, and we all make decisions based on influence of those we know and trust.

Below is an example of the #scrm Accidental Community on Twiangulate compliments of Josh Weinberger

By understanding more about those who influence our customer’s decisions; who they interact with, how they interact, and why they interact, we may discover valuable insights that may help us to meet our customer’s needs better, and if your organization is prepared enough, even co-create solutions with them.

Conversely, we may also begin to understand who our customers influence, and why a successful sale might not only allow us to recognize revenue from that single purchase, but also a chain of purchases based on the influence and recommendation of our customer’s purchase decision.

These insights are not only valuable for each individual prospect or customer, but also in aggregate. By profiling groups or segments of our customer base (or our target market in general), we can potentially gain key insights into who is likely deriving the most value from our products and service offerings.

The internet is compiling a huge amount of data

Feed.ly knows that 65% of my facebook friends are male, their most popular music group is U2, and their most popular movie is Gladiator.

While this may not present immediate opportunity in your mind, the point is illustrated. By knowing who I talk to, what their interests are, when and how we communicate, there are numerous opportunities to know more about me, what my preferences are, and what opportunities exist to help me in my daily life.

IBM recently did a social network analysis project called SNAzzy , to accurately chart and predict lifetime customer value and churn rates in the telecommunications industry.

James Koblieus points out on his blog the huge impact social network analysis will have on data warehouse growth and there are plenty of other challenges that await us as we begin to analyze and make sense of this data, and integrate with our existing systems and processes.

This is a new area for me and something I’ll definitely be spending more time on. If you know of any additional resources, please send them over.

Your customers and prospects are sharing, talking, conversing, and transacting. Get to know them. Partner with them, and find more people like them.

The 5 Stages of Customer Acquisition for the Social Business (Part 3)

This is the third and final of a three part post.

We’ve been talking about the AIPEE Pyramid over the past couple of weeks. I haven’t embedded the full image of the AIPEE Pyramid on this post, but if you’d like to take another look, you can click here to have it open in a new window, or review Post 1 and Post 2 in their entirety by clicking on the links.

In Post 1 we introduced you to the AIPEE Pyramid, and pointed your gaze toward the enchanting Blue Circled R – the icon representative of desired destination our prospect’s journey: the R Value Exchange.

The Mysterious and enchanting Blue Circled R

In Post 2, we took a detailed look at the 5 stages of the journey up the pyramid:

AIPEE Pyramid Simple

In today’s third and final post, we are going to focus on the following:

  • The customer’s response to their journey up the pyramid
  • The Value Exchange Retention Cycles

(1) The customer’s response to their journey up the pyramid

Humans have always been social. We’ve always told our friends, family, acquaintances and business associates about our day, our experiences, our hopes and dreams, who we like and don’t like, etc. Mitch Lieberman expands on this thought in a very worthwhile post titled Social Just Is…

Word of mouth has been around since, well, before words were written. Once upon a time, all communication was word of mouth.

What has changed is how many people we can tell things to in such a short amount of time. Social Technologies are an amplifier. The spreading of ideas, good and bad, and the repercussions of the spread of that information are now exponential.

Good experiences get amplified – an exponential boost to your brand.

Bad experiences, well, can spread like wildfire, and can do significant damage to your brand and reputation in a short amount of time. Here are some of the top negative PR events of 2009.

But really, this isn’t new either. Bad PR stories have been picked up and spread via the press for decades.

What is new is that EVERYBODY is the media. There is no longer a filter. ABC, CBS, and NBC no longer have the control over what is worth hearing about. Our peers do. You do. I do. Ashton Kutcher certainly he believes that he does.

Information and Stories that are worth spreading will be spread.

You: “Great Brian. But, what does all of this have to do with the pyramid?”
Me: “Good point. Let’s try and tie these pieces back together.”

Up to this point in the series, we’ve talked about how each prospect, one by one, makes their journey up the pyramid. There is a specialized craft in designing our sales and marketing efforts so that we can add the most value possible at each stage in the initial journey with our prospect.

But what if there was such value in what we shared that our prospects began to amplify and spread our content across their networks, at each and every stage of their journey with us?

Seth Godin expands upon this point in his blog post titled The Big Drop Off:

We try so hard to build the first circle.

This is the circle of followers, friends, subscribers, customers, media outlets and others willing to hear our pitch. This is the group we tell about our new product, our new record, our upcoming big sale. We want more of their attention and more people on the list.

Which takes our attention away from the circle that matters, which is the second circle.

The second circle are the people who hear about us from the first circle.

If the first circle is excited about what we do and it’s remarkable enough to talk about, they’ll tell two or six or ten friends each. And if we’re really good, the second circle, the people we don’t even know–they’ll tell the third circle. And it’s the third circle that makes you a hit, gets you elected and tips your idea.

The big drop off is the natural state of affairs. The big drop off is the huge decline that occurs between our enthusiasm (HEY! BUY THIS!) and the tepid actions of the first circle (yawn). Great marketers don’t spend their time making the first circle bigger. They spend all their time crafting services, products and stories that don’t drop off.

GOAL #1: Create and provide maximum value in your content and interactions
GOAL #2: Keep the amplifier in mind. Try and create so much value that people are compelled, almost mandated to share it with their network of friends and associates. Think of it this way: What could you provide to you prospects that would enable them to add value to their network by sharing it?

Hey, I know that most of you are smart savvy innovators – sales, marketing and demand generation geniuses. So let’s fast forward a bit, and assume we’ve done that. We’ve knocked it out of the park. What happens after we get to the R Exchange, and exchange value with our prospect for the first time?

(2) The Value Exchange Retention Cycles

Hopefully the relationship we’ve worked so hard to nurture doesn’t stop there. I’ve highlighted 3 areas where and how further exchange might take place. Let’s briefly touch on each of them.

A. Repeat Transactions

Depending on our business and our previous exchange, we may regularly exchange value in a similar fashion. We may keep getting referrals. We may keep selling the same consumable over and over. The monthly subscription might just keep auto-renewing. It might just take a series of brief, regular “touches” to keep the Value Exchange wheel turning . But remember, in order to keep our customers with us, we need to continue to add value. It’s a post for another day, but access to competitive alternatives has never been broader or easier.

B. Upsell Opportunities (Deeper Commitment)

We’ve had an initial exchange. But, there’s more there. We know it. They know it. There is more dialogue to be had. There are more problems to be solved. You’ll see that the retention circle extends back down into the engagement stage. Deeper dialogue covering Value Discovery, Co-Creation, Deepening of trust are now back in play, and layers of the onion are peeled back as new needs are discovered and new solutions are presented.

C. CrossSell Opportunities (Different Product and Service Offerings)

You’ll notice that this retention circle ventures all the way back down to the permission stage. Perhaps we’ve solved a set of problems for our customer. We’ve added value in a specific area. But perhaps, there are new opportunities for value exchange in areas we haven’t even touched on yet. Areas of our customer’s business that may have different rules, needs, players, politics, budgets, goals, etc. While we’ve exchanged value for one business purpose, we may need to display competency in another area in order to earn permission to engage in dialogue for that need as well.

And that, my friends, brings us to our close.

We’ve taken a look at how to get our prospect’s attention, and facilitate a journey towards a mutual value exchange. We’ve looked at how social technologies amplify everything good and bad, and we’ve taken a brief look at how our relationship with our customers (partners, influencers, etc.) can be retained and nurtured for continuous value exchange.

Now it’s your turn. I’m anxious to hear your feedback:

1. Am I on the mark? How can we adjust this image to more accurately represent how businesses today and in the future can leverage social technologies for exponential revenue growth?

2. What did I forget?

3. Where am I flat wrong?

4. How does this compare with your personal Customer Acquisition efforts today, and your plans for the future?

5. Does the image accurately reflect the concepts and ideas presented in the text?

6. And most of all, I am interested in hearing your unique, unfiltered personal insights, questions, and observations.

Thanks again for your feedback.

- Brian @CRMStrategies

The 5 Stages of Customer Acquisition for the Social Business (Part I)

This is the first of a Three Part Post.

“The purpose of a business is to create and keep customers.” – Theodore Levitt

So then, the next logical question is how do we create customers? And once we get them, how can we keep them? While keeping them engaged and developing them into advocates is vitally important and we’ll touch on that subject slightly in this post, the focus here is: How do we bring new sheep into the flock? This will likely appeal most to the Sales, Business Development, and Marketing types.

But isn’t this an old conversation? Has any of this really changed with the rapid rise of Social Technologies? I believe it has, and will illustrate the point below.

Don’t get me wrong. The fundamentals of business haven’t changed – but the tools and technology available to us, and how we can (and will be forced to) accomplish fundamental business goals like “New Customer Acquisition” have.

I’ve attempted to illustrate my thoughts in the image below – called the AIPEE Pyramid. Click on the link to view the diagram in a higher resolution. Special thanks to Mitch Lieberman and Graham Hill for reviewing my first draft and sharing their valuable feedback which have been incorporated into the current draft.

Before we get too far, here are some parameters to keep in mind as you study the Pyramid:

WHAT THIS ISN’T:

(1) A Comprehensive Social Business diagram – there is far more going on in the Social Enterprise than what is illustrated here. The focus is relatively narrow, specifically on Customer Acquisition. Quite simply, how do you have more conversations with more prospects, and provide enough value so that they participate with you in an R Value Exchange? (What happened to creating Customers you ask? More on that below.)

(2) A “One size fits all” solution: Most companies and business models can find value from this illustration. However, it was primarily built with a solution/consultative sale in mind. For Transactional Sales, the model might look slightly different. I am interested in your thoughts on this.

(3) A perfect image: You’ll notice that the image shows Beta Version 0.5. There will be changes and tweaks – hopefully because of your helpful feedback and critiques. Once the pyramid becomes more defined, the image quality will be better as well. :) Consider this a rough “back of the napkin” sketch.

WHAT THIS IS:

A baseline road map of how to successfully find, attract, and engage prospects leveraging Social Technologies so that you may provide something of use to them, and therefore participate in an exchange of value.

What’s our Target Destination?

Before we start breaking down each stage, let’s focus our eyes on the first box under the heading Interaction Medium towards the top right of the image – this is where we’d like to ultimately go.

You’ll notice a blue R with a circle around it. No, this isn’t a tribute to the boy wonder. This is my uber creative symbol for the R Value Exchange. This is our target destination. If possible, we’d like to have as many of our interactions with new folks ultimately end up here.

This doesn’t necessarily always mean that we get money in exchange for the value that we’ve provided. We may receive money (ie. Revenue). We might also receive something of less quantifiable or transferable value – a Referral to someone who might find more value in what we are offering than the prospect we are currently engaged with, or a Recommendation, something that we may use as social proof that we are indeed a provider of value in the marketplace. In the ideal scenario, we’ll receive all 3 – over and over and over.

With that in mind, let’s breakdown each stage, starting at the bottom, since this is where things (generally) start. While I’ll lay this out in a perfect linear approach, it’s important to remember that in real life;

a. There are multiple entry points on the pyramid.
b. Most will abandon their journey before they get to the Circled R for a myriad of reasons.
c. Many could move up and down the pyramid in a non-linear sequence before they reach the Circled R.

This is a baseline. A framework from which to build a basic strategy, and a template from which to facilitate dialogue. In my mind, I have at least a dozen iterations of the the pyramid – but in all of them, this is at the core.

So without further adieu, let’s examine the first stage of the pyramid:

ATTENTION
For marketers, here is where we are casting our net far and wide. The key difference versus what we’ve traditionally done is that companies can no longer rely on “shouting” a message. Ads are less effective than they’ve ever been and trust in companies is about as low as it has ever been. The new goal is to provide something of value…something so valuable that folks who have never even heard of you or your brand want to share it with their friends. The most successful viral campaign in recent history is one from Blendtec. Google this to see what they did. There are dozens of other examples as well.

The content that you provide might be a public webcast, podcast, video, white paper, etc. It might be funny, proprietary and valuable research, or something else that will resonate with your target demographic. The idea is to get something interesting and valuable in front of the eyes of some key influencers within your demographic.

Side Note: While I haven’t created a visual yet, also visualize the LIPEE pyramid (where Listening is substituted for Attention). Instead of the company creating compelling content to attract attention, it “listens” to and monitors the socialsphere for mentions of their brand, their core competency, or other key words which might be a signal to engage in “interaction” through Social Channels.

Tomorrow, we’ll look a little closer at the additional stages, and on Friday, we’ll wrap things up with a summary. I look forward to your thoughts, comments, questions, and critiques along the way.

The New (Social) Customer Advocate

Over the past few months, the #scrm Accidental Community has had several conversations about who should “own” social media and Social CRM within an organization. Though we’ve had a lot of productive conversation, I believe we’ve collectively come to the conclusion that there is no definitive answer other than “it depends”. You can find some links to some of these conversations at the end of this blog post.

But don’t fear, dear readers. The dialogue has not been in vain. There have been a number of insightful takeaways, and the journey of those conversations has arguably been more valuable than the originally mapped destination.

In the end, some corporate Social Media initiatives will be unmistakeably intertwined with corporate DNA, being touted and driven throughout the organization from the top. Zappos is the first company to come to mind.

In other organizations, a groundswell will rise from within, starting slowly with one or two internal advocates who see real opportunity, and then spreading as small “wins” are accomplished and shared. The most likely areas from which this groundswell will emerge today are marketing and/or customer service.

At Comcast, just a few people have ultimately changed the corporate culture of a company 100,000+ strong. Brian Roberts, CEO of Comcast, one of Social Media for Business’s poster children recalls Comcast’s journey with Twitter. From Frank Reed’s Story over on Marketing Pilgrim:

“It has changed the culture of our company,” Roberts said.

Comcast has for a while now been using Twitter to scan for complaints and engage with customers. The idea was not his, but rather rose organically when someone in the company realized that a lot of public complaints were being sent over Twitter.

Well, since we are talking about Twitter, let me share a little slice of my life from yesterday. Mitch Lieberman, John Moore, Josh Weinberger, Kathy Herrmann, Mike Muhney, Valeria Montoni , Russ Hatfield, Glenn Ross and I had the privilege of participating in another “accidental” conversation that was a slightly different iteration of this “Who should now own Social Media?” question. Wim Rampen showed up a little late, so he’ll just have to weigh in below (along with all the others where they’re not limited by 140 characters.) :)

The topic being discussed by was essentially “Who should carry the front line conversation?” At first blush, this seems like a very similar question. However, I view it as significantly different. It’s different because it changes the conversation from “Who decides what the organization will do with Social Media?” to “Who actually does it?”. The conversation is moving from ideation to implementation, and that, my dear friends, is exciting.

(Speaking of implementation, after you are done reading this post, head over to Esteban Kolsky’s blog to read an excellent ongoing blogpost series titled “The Roadmap to SCRM”)

Valeria Montoni wrote a great article titled Twitter, Customer Service, and good Brand Management which speaks to the value of monitoring Twitter to hear what people are saying about your brand. Valeria shares both explicitly and implicitly that the traditional worlds of customer service, brand management, and marketing as a whole must be intertwined in the context of the Social dialogue.

If Social CRM is “…designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment…the company’s response to the customer’s ownership of the conversation.”, then I submit that it makes perfect sense that the team or individual responsible for interacting with customers and prospects be FULLY EQUIPPED AND EMPOWERED to engage with the customer in whichever direction they’d like to take the conversation.

*** Let me restate that ***

The team or individual responsible for interacting with customers and prospects must be FULLY EQUIPPED AND EMPOWERED to engage with the customer in whichever direction they’d like to take the conversation.

Take a step back and consider the implications of that statement for a moment.

- How many different reasons are there for your organization have a conversation with your prospects and customers today? and subsequently…

- How many people within your organization can effectively lead or participate in each of those conversations in a manner which aligns with your organizational goals, vision, and strategy?

I am assuming your mind didn’t jump to a picture of your latest intern, or an entry level customer service rep. Most likely, your mind jumped to Director level and above type personnel. Every company has a couple of them – someone who just “gets it”. Someone who carries “juice” across departments, teams, org structure, and one of the few that is the living lifeblood of the organization.

Meet your new “Social Customer Advocate”; a big picture thinker, enthusiastic about the company’s vision and mission, in tune with marketing/branding strategy, with a genuinely caring and transparent attitude, a leader and manager, who is, oh by the way, savvy enough to look for opportunities to sell your company’s new product and service offerings.

They are customer service, marketing, and sales. They are the face of the organization, and their face and their written word are going to be well known across the interactive landscape of your customer and prospect base(s).

Here’s the Understatement of the Day: This type of thinking is a MAJOR SHIFT for many organizations.

For smaller companies, this actually may not be that difficult to imagine. Entrepreneurs across the country have lived in this multi-faceted role for decades. But for the Fortune 1000, is this possible? Can this scale?

I know what your thinking…

Companies have just spent the last couple of decades trying to minimize customer service costs. IVRs, offshoring, outsourcing, and entry level workers have become the first line of defense for corporations across the globe, and important/critical issues get escalated up the chain to the high paid knowledge workers only when necessary.

Yes. However, unfortunately for companies for who have spent gazillions building a corporate culture and infrastructure around minimizing the cost of each customer interaction, the customer now can not only yell about how unhappy they are with their poor experience to the gals at the salon, or the fellas at the local watering hole, but their disdain can be spread and amplified across the globe in days, if not hours.

I submit that as culture and society becomes more technologically social, organizations will need to change the way they interact.

Enter the Social Customer Advocate.
They will act as the funnel for corporate interactions through social channels. They will choose to engage directly, or distribute the customer or prospect requests to an appropriate resource within the organization. They are the brand’s representative to the world for anything that a prospect or customer may desire to dialogue about.

Today, they may be Directors, VPs, or even C-Level Execs. Ultimately, they will lead and quarterback the team to success, and the makeup of these folks will be darn hard to find, and even harder to duplicate.

Someday down the road, this role may be automated and replaced by technology like so many other key roles from yesteryear. But we are just journeying into this new frontier, and we are a long way from being able to successfully automate genuine conversations with customers..

So then, my questions for you:

1. Is it feasible for mid sized or large organizations to find and leverage the Social Customer Advocate?
2. What are the keys to finding, duplicating, and leveraging Social Customer Advocates?
3. What primary cultural challenges await this shift in customer engagement?
4. Who do you know that have already used a Social Customer Advocate or Advocate(s) in their organization?
5. What are your top arguments against using a Social Customer Advocate?

More Social CRM Reading:

Who Owns Social Media? by Brian Solis
Q: Who Should Own Social CRM – A: Not who you think by Graham Hill
Unleashing the Value of Social CRM: Where to find the biggest return
Social CRM: Overhyped Fad or Transformational Solution

One Secret for CRM Success: Understanding the heart, mind, and soul of a sales person


“Anything that helps me sell more effectively, I will employ, but not at the expense of ineffectiveness” – Mike Muhney

Last week, I had the opportunity to have one of many conversations with industry pioneer Mike Muhney, co-founder of ACT! Software, and the sales person’s advocate in the conversation about CRM.

In our conversation, Mike makes a number of thought provoking statements that challenge the conventional thought process leading up to the beginning or advancement of a CRM initiative. Some of the topics you’ll hear include:

- Sales people are the “untethered element” of the organization

- Who does a sales person really work for? The customer or their company?

- CRM software is traditionally too complicated for sales people

- Technology isn’t always unencumbering

- Why sales people sabotage CRM deployments

- CRM needs to revert backwards to less functionality

- What to do when your top sales people refuse to use the system

Each of these topics could be a blog or podcast on their own. While I don’t necessarily agree with some of Mike’s opinions, he makes some great points and brings a convincing voice for those venturing into, or deeper into, the world of CRM systems.

While CRM failure can ultimately stem from a number of strategic, procedural, or organizational factors, end user adoption (and more specifically end user adoption by the sales team) is one of biggest hurdles to overcome.

Michael Krigsman’s ZDNet blog post “Three Big Reasons CRM Initiatives Fail” expand on this thought:

Paying insufficient attention to user needs and benefits.

Engaging users is critical to the success of any enterprise software deployment, but particularly so in the case of CRM, where users can sometimes sidestep the technology and still accomplish their job function.

A research note from AMR Research explains why this aspect of CRM is different from other enterprise software categories:

In applications such as ERP, supply chain, or financial management applications, the users have much less flexibility or choice in whether or not to adopt an enterprise application standard. And when was the last time you heard someone question why financials were implemented?

A quick search reveals that many observers believe poor user adoption is a key driver of failed CRM projects. In a SearchCRM interview, SugarCRM’s former CEO, John Roberts, links adoption to end-user perception of value (emphasis added):

“In a lot of cases, companies deploy CRM, and there’s a lot of euphoria over it for the first couple of months. Then, people stop using it. They look at it as ‘Big Brother’ watching them. CRM is sold as a tool to make an organization more effective and efficient; but the end user doesn’t see CRM as making them more efficient and effective.”

In my view, poor user adoption is not the direct cause of CRM project failure. Rather, it’s a symptom the organization has not anticipated obstacles that may interfere with users embracing the new system.

Adoption may lag for many reasons, including:

  • Software that is complicated or difficult to use
  • Sales people that don’t see adequate value in the new system
  • Poor communication of benefits to users

Get users to adopt a new CRM system by focusing on the WIFM (What’s In It For Me) factor. I asked independent analyst, Erin Kinikin, for her thoughts on engaging users:

“The sales person is quarterback for the customer team. Give the sales people good reasons to login and use the system. If the sales person feels the system saves time, makes money, or helps ‘keep score’, he or she will be much more likely to use the system — and enter customer data.”

One banker involved with CRM efforts told me:

Frontline users, particularly the most effective “top-producers,” will adopt the system only on the basis of real or perceived value.

Engage users early and often during the system planning and implementation phases, so they understand what’s in it for them. When users do not adopt a system as planned, seek their honest feedback on how to make it more usable, helpful, and valuable.

Have a listen. Share your thoughts. I’d love to hear from sales people, executives, consultants and CRM vendors.

Also, which of the bullets above would you be most interested in discussing or hearing about on future blogs and podcasts? Sound off!

Social CRM: Overhyped Fad or Transformational Solution

Last month, I wrote  “Unleashing the Value of Social CRM: Where to Find the Biggest Return”.

Towards the end of the article, I posed this question: “Which functional area do you think will be able to leverage Social Media and Social CRM the most, and provide the greatest impact to the profitability of an organization?”

The comments section and some referring posts provide some great discussion from some of the greatest minds in the world of CRM including Graham Hill, Natalie Petouhoff, Brent Leary, Esteban Kolsky, and a host of other minds much smarter than mine.

In the end, I walked away with the following conclusion: We collectively don’t know yet. Social Media and Social CRM are still in their relative infancy in delivering solid, proven value. However, there seems to be the strongest argument (and early data from companies like Helpstream, and Lithium) from those in customer service and support functions, and I can’t really argue with them.

In my closing blog comment, the last question I ended with was: “How do you justify the investment – time and money- in Social Media? Where do we have the greatest chance of success (profitability) starting out?”

Yesterday, Bill Band of Forrester Research asked a similar (and very important) question on Twitter: “CRM Evolution Conf. all about social phenom. But, my data shows less than 10% of companies have customer communities now. Too much hype?”

This, undoubtedly sprung from his recent research shared in his recent blog post: “The Extended CRM Application Ecosystem: Value, Risk and the Future of Social CRM”.

Band draws the following conclusions in his article:

“While “Social CRM” solutions have captured the imagination of decision-makers at many organizations, it is the tried-and-true technologies that offer the most certain return on investment.”

“The business value of social solutions is yet to be proven. Interest in “Social CRM” solutions is growing rapidly. But, mainstream companies are watching for evidence of success by the early adopters. Although enterprise feedback solutions, customer community platforms, and customer forums are viewed positively by the respondents in our survey, none of these three are considered “critical” to success. Therefore at this time, business value discounted for uncertainty is low.”

Many, at this point, recognize the potential for using Social Media to transform customer relationships, but the uncertainty factor still weighs heavily.

A study by Russell Herder and Ethos Business Law titled “Embracing the Opportunities: Averting the Risks” found that Social media  can be critical to company growth and sustainability.

  • 81% believe social media can enhance relationships with customers/clients
  • 81% agree it can build brand reputation
  • 69% feel such networking can be valuable in recruitment
  • 64% see it as a customer service tool
  • 46% think it can be used to enhance employee morale

However, 51% percent of these executives fear social media could be detrimental to employee productivity, while 49% assert that using social media could damage company reputation.

Much of senior management’s direct experience with social media appears to be reactive versus proactive, concludes the report. 72% of executives say that they, personally, visit social media sites at least weekly:

  • 52% to read what customers may be saying about their company
  • 47% to routinely monitor a competitors’ use of social networking
  • 36% to see what their employees are sharing
  • 25% check the background of a prospective employee

There clearly needs to be much more education. That’s where those of us who regularly interact on Twitter following the #scrm hashtag come in.

Society is making a giant transitional shift because of Social Media. This “change” transcends the conversation of Social CRM and even business as a whole. The world is changing, and rapidly. For some staggering statistics that will make your brain spin, watch the video below:

For the enterprise and business community, things  are still really just beginning. Early adopters will (and some already have) capture the first mover advantage. However, they will also face the obvious risks of venturing into this new frontier first. InfusionSoft has literally saved millions by adopting a Social CRM strategy.

David Alston, Radian6′s VP of marketing and community said in a recent PR week interview:

“We are just scratching the surface in terms of how social media will transform the (PR) agency and the enterprise. The nature of social media – its accessibility, transparency, and its ability to build relationships – is challenging the processes and structures within companies, many that have become too rigid and siloed to react to the new Web 2.0-empowered consumer. I believe we are where CRM was 10 years ago.”

Change is upon us. The question is not whether Social Media and Social CRM will become an important strategy/tool/channel for your organization, but rather, when?

So what should you do now?

1. Learn as much as possible related to Social Media and Social CRM

2. Talk with your best customers, and most importantly, LISTEN

  • What are they doing with Social Media?
  • What do they wish you did better as an organization?
  • What can you do to improve your value offering to them?

3. Begin to experiment with  Social Media for your business

  • Blogs
  • Wikis
  • Twitter
  • Community Platforms and Forums
  • Social Networking (Facebook, LinkedIn, etc.)
  • Social Media Monitoring

Perhaps best-selling author and Founder of the The Altimeter Group Charlene Li said it best:

“Mistakes in social media are inevitable – after all, you’re building relationships and what relationship is perfect?”

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