Vesta Digital Blog

How is Social Media Changing Customer Relationship Management?

Posted on: November 9, 2010

Social customer relationship management is the evolution and progression of customer relationship management. It is a strategy that uses social media to engage with customers, with increased sales being a side effect from these interactions.

How Has CRM Changed?

Traditional CRM is a combination of sales, marketing and advertising, and support based business tools that work as one-way communication with the goal of completing a transaction with the customer, and keep that customer coming back to buy more.

The difference between traditional CRM and social CRM is the fact that the customer has the ability to communicate his or her wants and needs to the company. As Jacob Morgan of Social Media Examiner wrote in his review of Social CRM:

“Instead of marketing or pushing messages to customers, brands now talk and collaborate with customers to solve business problems, empower customers to shape their own experiences and build customer relationships, which will hopefully turn into customer advocates.”

Why Does This Work?

Using social media to genuinely engage with customers and solve business problems works because the average customer is changing. More and more people actually want to see brands on social media sites, providing product and service information.

60% of Americans already regularly interact with companies on social media sites (Cone Business in Social Media Study, 2008).

Consumers are using social media to discuss products and services, empowering themselves with information that used to come from the one-way communication provided by marketing and advertising services.

Social media is also all encompassing in a sense because you have an almost unlimited reach when it comes to your potential customer base. With 500 million members on Facebook alone, exposure is your greatest tool as a business.

So use social media marketing to your advantage, but instead of simply just providing information on your product or service, talk to your customers. See who they are and what they like and what they need from you. Collaborating with your customer base to improve products and services will not only gain you customer loyalty, it will increase your visibility, credibility, and brand equity all together.

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