CRM and Social Media: Maximizing Deeper Customer Relationships

Transcription

1 Seattle Office: 2211 Ellitt Avenue Suite 200 Seattle, Washingtn, A glbal IT cnsultancy dedicated t using the Micrsft platfrm t help enterprises achieve prfitable grwth. Additinal infrmatin can be fund at Fr mre infrmatin n this study and Avanade s CRM expertise, please visit CRM and Scial Media: Maximizing Deeper Custmer Relatinships Attracting and retaining custmers, and grwing custmer relatinships, have always been tp pririties fr business. But in a glbalized ecnmy it is mre critical and challenging than ever t build vibrant custmer relatinships acrss gegraphies, industries and at all levels thrughut rganizatins. An independent market research firm recently cmpleted a grundbreaking glbal survey f cmpanies and hw they use scial media technlgies t attract and retain custmers. Several key themes emerged: Scial media technlgies have the ptential t transfrm the way cmpanies build and manage relatinships with their custmers. Apathy, fear and uncertainty mre than csts are preventing cmpanies frm frmally adpting scial media technlgies. Scial media technlgies are invading the wrkplace undetected. Cmpanies knw this, but mst have n frmal plan t manage them. Cmpanies that understand the impact f these trends can imprve their cmpetitive psitin in the market. Thse that d nt adapt t rapid changes r mve fast enugh t respnd t thse changes will lse custmers and fall behind in the market. Scial media technlgies are reaching a turning pint n lnger lingering utside the dmain f IT departments. Facebk, LinkedIn, blgs, wikis, instant messaging, live Web chat, shrt-text blgging such as Twitter, and user cmments such as prduct reviews and submissins t sites such as Digg have cmbined t create a pwerful means f cmmunicatins, cllabratin and knwledge sharing fr large and small businesses. The study by Cleman Parkes Research revealed the fllwing data: Mre than 75 percent f cmpanies wrldwide admit that scial netwrking will cme int the business undetected if nt practively managed. Apprximately 60 percent f respndents say integrating scial media technlgies is nt n the agenda. Only 18 percent f respndents have any kind f strategy in place t integrate these technlgies within the cmpany fr emplyees. This White Paper cntains statements that may be related t the future develpment and directin f Avanade Inc. These statements may represent nly current plans r gals f Avanade as f the date f publicatin and are subject t change withut ntice based n ur technical and business judgment. Any reference t third party cmpanies des nt imply any invlvement with r endrsement f r by Avanade Inc. Other cmpany, prduct, and service names mentined in this dcument are registered trademarks r trademarks f their respective wners.

2 The key barriers t adptin f scial media technlgies are: Cncerns abut security (76 percent). Senir management apathy (57 percent). Fear f using unprven technlgies (58 percent). Half f cmpanies fear a negative impact n prductivity. 58 percent f cmpanies agree that senir managers d nt understand the ptential that scial netwrking ffers bth fr emplyees and custmers. Tw-thirds f cmpanies see imprved custmer satisfactin frm the adptin f scial media and 64 percent reprt an imprved reputatin in the marketplace. Already 2 in 5 cmpanies can directly assciate an increase in sales with the mve t using new frms f media. The full findings f the study, cnducted by Cleman Parkes Research n behalf f Avanade, underscre the unprecedented cnfluence f scial media and custmer relatinships. The CRM and Scial Media: Creating Deeper Custmer Relatinships study examines fundamental factrs shaping the impact f scial media n cmpany perfrmance and custmer relatinships, including user adptin, custmer engagement, barriers t deplyment and emplyee retentin. The full reprt cvers three majr areas f scial media technlgies in a business setting: Scial Media Technlgy Use by Emplyees fr Business Cmmunicatins Scial Media Technlgy Use by Custmers with Cmpanies Cmpany Use f Scial Media in Custmer Relatinship Management This study was cnducted in May 2008 and includes 541 phne interviews with tp executives that include senir management, lines-f-business management, IT managers and custmer service, sales and marketing executives at the tp 500 cmpanies in each cuntry. Cuntries that tk part in this research include: Western Eurpe: Italy, Netherlands, Spain, Britain ASG: Germany, Switzerland Gallia: France, Belgium Nrdics: Denmark, Sweden, Nrway, Finland Nrth America: Canada, United States Asia Pacific: Australia, Japan, Singapre 2 Avanade White Paper 2008 Avanade Inc. All Rights Reserved.

3 Tp-Line Findings Scial media is strming the wrkplace, ften undetected, thrugh a grassrts mvement by emplyees. While business management is aware f the trend tward scial media, mst have n plan in place t manage the frmal adptin f these technlgies. With respect t the appraches being taken t integrating scial media technlgies in the cmpany fr access and use by emplyees, there is a clear message that things are nly just starting (Figure 1). Over half f cmpanies (59 percent) have yet t put scial media n the crprate agenda. Figure 1 It is nt n the agenda at all at the mment 7% 23% 7% 4% 59% We are interested in using scial cmputing bth t enhance business prcesses and fr emplyee s business use We have a strategy fr integrating scial cmputing fr use by emplyees, but it is nt fully dcumented We have a fully dcumented strategy fr integrating scial cmputing fr use by emplyees and it is fully implemented We have a fully dcumented strategy fr integrating scial cmputing fr use by emplyees, but it is nt fully implemented The survey highlights apathy at the executive level, particularly prevalent in Western Eurpe, t utilize scial media within rganizatins. Mrever, the results suggest that IT staff fear a lss f cntrl and security risks t their infrastructure. Fear at the IT level is especially strng in Germany and Switzerland. Finally, cncerns ver prductivity lss due t scial netwrking are highest in Asia Pacific cuntries and Nrth America (see Figure 2). Tgether, these factrs apathy, fear and cncerns ver prductivity have caused rganizatins t turn a blind eye t the nging invasin f scial media in the enterprise. Hwever, early adpters are reprting imprved custmer relatinships, better crprate reputatin and increased sales. Businesses face cmpetitive risks if they fail t embrace the technlgy ging frward in a cntrlled and strategic manner. Figure 2 Barrier (all figures in percentages) All NA WE ASG Gallia Nrdics APAC The cst Fear f using unprven technlgy Fear f a negative impact n prductivity We are waiting fr better technlgies I d nt understand hw we can benefit frm them Cncerns abut security Senir management apathy they d nt understand it Key Data: The Business Impact f Scial Media Technlgies Althugh tday s use f scial media technlgies is limited, there is evidence that cmpanies see great benefit in their use, which will drive better use f the technlgies ging frward. Overall, the main benefits mentined by custmers (see Figure 3) include imprved feedback (78 percent verall); creating a perceptin f the cmpany as frward lking (75 percent verall); and, the reductin in time t reslutin fr supprt issues (71 percent verall). Additinally, 40 percent f cmpanies (47 percent in Nrth America) can already assciate an increase in sales with the mve t using new frms f media. 3 Avanade White Paper 2008 Avanade Inc. All Rights Reserved.

4 Figure 3 Benefit (all figures in percentages) All NA WE ASG Gallia Nrdics APAC Imprved feedback Greater custmer satisfactin Reductin in time t reslutin fr supprt issues Imprved/increased sales Creating a perceptin f the cmpany as frward-lking Imprved market reputatin Key Data: Benefits f Scial Media n Custmer Relatinship Management Scial media technlgies have the ptential t transfrm the way cmpanies build and manage relatinships with their custmers. And, in tday s ecnmic climate, it is becming increasingly imprtant fr cmpanies t find new ways f adding value t custmer interactins. Figure 4 shws a high-level f agreement acrss all regins, especially strng in Nrth America, that as we enter a pssible ecnmic dwnturn we need t fcus n new ways f cmmunicating with custmers wh add real value. In additin t prviding a new channel fr custmer cntact, 77 percent f all cmpanies als agree that scial media will allw them t add new value t their custmer interactin a clear indicatin that scial media technlgies play a majr rle in custmer relatinship management. Tw-thirds f cmpanies als feel that scial media technlgies prvide an excellent means f uplifting custmer relatinships. The study clearly shws that scial media technlgies have an imprtant and psitive rle t play in the enterprise. Cmpanies can already articulate sme key benefits and thse that have implemented the technlgies reprt significant business impact. As mre cmpanies begin t implement, the benefits will grw as new ways f using the media cme t light. Figure 4 Statement (all figures in percentages) All NA WE ASG Gallia Nrdics APAC Scial media is the next majr step in cllabrative activities and technlgy fr a business Scial media is simply a yung persns technlgy with limited business appeal Cmpanies that fail t embrace scial media technlgies fr business purpses will be left behind Scial media will becme a key cmmunicatins activity with custmers As we enter a pssible ecnmic dwnturn we need t fcus n new ways f cmmunicating with custmers which add real value Scial media technlgies prvide an excellent means f uplifting ur custmer relatinships Scial media will allw us t add value t ur custmer interactin Key Data: Intrducing Scial Media Int the Enterprise Alng with clear business drivers fr the use f scial media technlgies, there will be added pressure t implement these technlgies t meet emplyee expectatins and needs. Almst all cmpanies (89 percent verall) agree t sme degree that the new generatin f emplyees cming int the business will drive increased use f scial netwrking technlgies within a business cntext. With risk-averse management and an influx f new emplyees bringing these technlgies int the wrkplace, managing the intrductin f these technlgies is critical. Figure 5 reflects bth the pprtunity and challenge facing 4 Avanade White Paper 2008 Avanade Inc. All Rights Reserved.

5 the intrductin and use f scial media technlgies in the enterprise. Mre than three-quarters f all cmpanies agree that scial media will cme int the business undetected if they d nt practively manage it. Hwever, a lack f understanding frm senir managers is creating a challenge t the intrductin and use f scial media technlgies. Nearly 60 percent f cmpanies agree that senir managers d nt understand the ptential that scial media ffers bth emplyees and custmers a typical reactin that has been seen many times ver with the intrductin f new technlgy in a business cntext. If senir management fails t embrace scial media, it will still be used in an rganizatin in an uncntrlled fashin. Figure 5 Statement (all figures in percentages) All NA WE ASG Gallia Nrdics APAC Senir managers in the cmpany d nt understand the ptential that scial media ffers bth fr emplyees and custmers Scial media will cme int the business by stealth if we d nt practively manage it Cllectively, this key data shws the benefits and barriers fr adpting scial media technlgies in the enterprise. Risk-averse management teams are hlding back their businesses, while respndents acknwledge that cmpanies must mdernize r lse ut n staff, and mre imprtantly, custmers and business grwth. And IT s fear ver unprven technlgies and security risks is nt helping the situatin. The drive t adpt these technlgies must cme frm business leaders in rder t achieve lng-term success. Avanade Perspective Traditinally, cmpanies have used CRM technlgies t interact with custmers in a narrw, highly prescribed way that fcuses primarily n transactins: structured prcesses, cntact data, efficiency and cst. As seen in the CRM and Scial Media study, relatively few cmpanies are taking steps t adjust their strategies and technlgies t imprve the custmer experience, fster deeper relatinships, and build brand lyalty at a time where the technlgy exists t fundamentally change the nature and quality f the custmer relatinship in many industries. The emergence f new scial media technlgies gives businesses the pprtunity t change the way they relate t custmers, shifting the fcus frm managing transactins t building deeper relatinships. Businesses can apply scial netwrking and related technlgies t reach a new level f internal and external cllabratin in a variety f business scenaris, including custmer cntact centers, nline marketing and direct sales. Scial media technlgies prvide the ability t cmmunicate immediately with custmers and emplyees and build custmer relatinships acrss gegraphies, industries and thrughut rganizatins. The emergence f new scial media technlgies gives businesses the pprtunity t change the way they relate t custmers, shifting the fcus frm managing transactins t building deeper relatinships. Avanade believes that scial media technlgies will allw cmpanies and custmers t establish a deeper relatinship that empwers the custmer in new ways and pushes bth parties t a mre rewarding level f engagement. Cmpanies that understand the impact f these technlgies can imprve their custmer relatinships, crprate reputatin and increase sales. Thse that d nt make plans t frmally adpt these technlgies can lse custmers and fall behind in the market. 5 Avanade White Paper 2008 Avanade Inc. All Rights Reserved.