CRM Project

Impact of Social Media on CRM

IMT to edit Master subtitle style Click(PT) 2010 Group IV Members: Anurag Aggarwal Nitesh Sharma Nikhil Gupta Rajat Wadhwa Rishi Tarar 4/7/12

Introduction
Objective of this project to find information about various social media platforms, its users, business use and its impact on business strategies mainly from CRM point of view.
4/7/12

Research Questions
Questions to which we will try and find answers to are:

What is Social Media? Who is using Social Media? What is the percentage of companies using Social Media? Why consumers interact with companies using Social Media? What is the impact of Social Media on companies and challenges it poses to the traditional CRM strategy its CRM strategy? Does use of Social media by company help improve Customer loyalty? 4/7/12 What are common Social CRM mistakes?

What is Social Media?

Social media includes webbased and mobile technologies used to turn communication into Interactive dialogue. For distinction from mainstream media businesses may refer to social media as
4/7/12

Users of Social Media

Nearly 80 percent of the online consumers have at least one account on a social networking site where they can quickly and easily connect with people. More no. of users from emerging markets (BRIC).

4/7/12

Drivers for usage of Social Media

Social Media still a less preferred medium used by consumers to interact with their brands.

4/7/12

Percentage of Companies using Social Media

Among Fortune 500 companies, 71% have Facebook pages, 59% are on Twitter and 56% accepts importance of social media.

4/7/12

Mapping the Social Internet

4/7/12

Impact of Social Media

As we have seen Social media has already changed the way people meet and interact. People from all over the world gather into a handful of social networks where they 4/7/12 connect, share,

Perception vs Reality

Companies have misperceptions regarding why consumers interact with them via social sites. Clearly, there is a difference between perception of the future of CRM, and reality.

4/7/12

Growth of Social Media

We have seen unprecedented growth of social media platforms Like Facebook Twitter, Linkedin etc. and have become 4/7/12

Traditional CRM vs Social CRM

A widely implemented strategy for managing a companys interactions with customers, clients and sales Social CRM: Traditional prospects. CRM:
A philosophy and a business strategy, with system and technology as its main ingredient with sole objective to improve human interactions in a business environment. That includes sales, marketing , customer service and technical support. In nut shell all customer relationships with the business. 4/7/12 A philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, with focus on a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. Its the companys response to the customers ownership of the conversation.

What companies are doing with Social Media?

Market place is fast changing from passive to active with digital technology enabled Social media. Companies have little option but to adopt new medium to conventional 20th century public relations based relationships. So they have accepted social media as a game changer and they are:

Engaging with their customers about their social media experiences & expectations. Having internal guidelines for social CRM that are consistent with strategic objectives, legal constraints, and brand development, yet allow for authenticity and direct engagement. Creating social media campaigns around 4/7/12 events, milestones, contests, and user content.

Example of network giant Cisco

4/7/12

Conclusion
The communications revolution that was characterized by the proliferation of Internet use and of mobile devices changed the way that people wanted to (and did) interact with each other and with the institutions that they dealt with. In business this was a transformation of how customers dealt with businesses and with each other. This is bringing a major paradigm shift in CRM strategy to customer engagement rather than managing customers. We have recently seen social media emerging as a strong voice which has implications and opinions voiced have far reaching impacts. The impact has not be restricted to businesses, brands or individuals but recent political revolutions are largely driven through these forums. Recent, Arab spring & Anna Hazare movement for Jan Lok pal bill in fact forced Indian Government to come out with diktat for websites questioning the credibility & identity of the social media content / publisher and impact it has on the countrys stability Barack Obama's upcoming re-election campaign is set to be the biggest social media campaign yet said an advisor to the current president, Roger Fisk at the 20th Public Relations World Congress yesterday. "The 2012 re-election will be the largest social media exercise ever conducted. Social media is key to making the campaign personal and empowering people to be the campaign," said Fisk, who currently coordinates diplomatic and trade missions for the US Cabinet and President Obama. According to Fisk, using social media throughout Obama's 2008 campaign was a game changer for the then-candidate. As the National Director of Special Events, Fisk led a grassroots campaign that built up the largest donor base of $100 million in history by mixing social media and online platforms with traditional media. 4/7/12

References

http://en.wikipedia.org/wiki/Customer_re http ://en.wikipedia.org/wiki/Social_media

http ://www.customerthink.com/blog/the_impa

http://www.crmsocialmedia.com/2012/01

http ://www.competitivefutures.com/projects/ http

4/7/12