Search results

The purpose of this paper is to present the augment of the authors, who are IBM consultants, that companies need to meld social media programs with customer relationship management (CRM). This new paradigm – Social CRM – recognizes that instead of just managing customers, the role of the business is to facilitate collaborative social experiences and dialogue that customers value.

Social media holds enormous potential for companies to get closer to customers and, by doing so, increase revenue, cost reduction and efficiencies. However, using social media as a channel for customer engagement will fail if the traditional CRM approaches are not reinvented,

According to IBM research, there is a large perception gap between what the customers seek via social media and what companies offer. Consumers are far more interested in obtaining tangible value, suggesting businesses may be confusing their own desire for customer intimacy with consumers' motivations for engaging.

To reinvent the company's CRM strategy it is important to recognize social media is a game changer and the customer is in control; make the customer experience seamless – across social media and other channels; start thinking like a customer – if one isn't sure what customers value, they should be asked; and monetize social media, if that is what customers want.

Social CRM is a new approach that recognizes consumers have strong opinions about relationships as customers being managed in a social media context and that their willingness to engage with companies should not be assumed or taken for granted.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

New phenomena come and go on a frequent basis. But every now and then something with true game‐changing potential comes to the fore. The business world is rarely immune to any reverberations that ensue. Few would argue that social networking is the latest addition to this category. The unrelenting global expansion of Facebook and Twitter is testimony to that fact. User numbers for these platforms alone are now measured in hundreds of millions. As a result, massive scope exists for organizations to exploit social media as a means of productively engaging with consumers. Given the size of the captive audience, many firms have not surprisingly jumped on the social networking bandwagon. A fear of being left behind is also a motivating factor. However, simply establishing a presence on key sites provides no guarantee of success. Making it fruitful demands significant effort on a company's part, together with the realization that traditional approaches to customer relationship management (CRM) are all but redundant in this online world.

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.

The paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.

The paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.

Companies focused on fully reshaping the operating model optimize all elements of the value chain around points of customer engagement.

The article explains how companies with a cohesive plan for integrating the digital and physical components of operations can successfully transform their business models.