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Posted by James Kobielus on April 29, 2010
Customer relationship management (CRM) has always been a multichannel discipline. You should connect and bond with your customers through whatever mix of channels they use or prefer. That has traditionally meant that existing channels be supplemented and extended by whatever new technologies come along. Hence, any enterprise serious about multichannel CRM has begun to add social media to a strategy that includes point of sale (PoS), direct postal mail, agent-assisted telephony, interactive voice response, e-mail, portals, and text messaging—at the very least.
Social CRM is the newest craze in this arena. It refers generally to the convergence of social media with CRM. However, in the minds of some observers it seems to imply that social media will somehow become the most important CRM channel of all, marginalizing or obsoleting others. I take issue with that perspective, which threatens to turn social media, in all their billowing multiplicity, into a big new overstuffed silo in the CRM world.
I don’t deny that social-networking interfaces are all the rage in the CRM space. One obvious case in point is salesforce.com’s Chatter collaboration platform, which looks and feels so Facebook-y that, navigating through it, I half-expect my cousins to be posting new vacation pictures to the community.
And I don’t deny that social media are the most fruitful new source of real-time intelligence on customer awareness and sentiment, feeding the sales and marketing functions at the core of CRM. In fact, Attensity’s announcement yesterday that it is acquiring social media monitoring vendor Biz360is just the latest sign that social media are a core technology not just in modern CRM, but also in content analytics, process analytics, and business intelligence (BI).This announcement follows the recent acquisition by BPM vendor Pegasystems of Chordiant, one of the pioneering providers of social CRM suites.
If you want to see how truly hot social media are in CRM, follow the upward trajectory of the social media monitoring platform market, also referred to as “listening platforms.” A good place to start is to check out last year’s excellent Forrester Waveby my Marketing and Strategy colleagues Suresh Vittal and Zach Hofer-Shall, which I understand they’ll soon be updating.
As Forrester’s social CRM analyst in the Business Process orbit, I’m seeing more clients take a keen interest in these and other applications, tools, and platforms—including BPM, BI, data mining, and predictive analytics--to support seamless integration into their multichannel initiatives. What I advise them is to ramp up the automation of more and more social CRM functions while hubbing their multichannel initiatives around customer data integration (CDI) initiatives, including enterprise data warehouses (EDWs) and master data management (MDM) processes.
The benefits of integrating and automating social CRM within a multichannel strategy are as follows:
To realize these benefits, you require a multichannel CRM platform that supports:
What do you think? As Forrester deepens our coverage of all things social CRM, we very much want to know what projects you’re undertaking or contemplating.