CRM 2.0. Supervisors: Professor Matti Rossi. Dr. Risto Rajala
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1 Supervisors: Professor Matti Rossi Dr. Risto Rajala CRM 2.0 The influence of CRM 2.0 on the organization in the dynamic ecosystem: Its Value and Risk
2 CRM 2.0/Social CRM Traditional CRM and CRM 2.0 Research motivation Benefits of CRM 2.0 Impact of CRM2.0 Research Questions
3 Social CRM Social CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It s the company's response to the customer s ownership of the conversation." ~ Paul Greenberg, Author of CRM at the Speed of Light
4 Evolution
5 Some Facts The fastest growing sector for internet use is communities (+5.4% in a year) (Nielsen, Global Faces on Networked Places ) Member communities reach more internet users (66.8%) than (65.1%) (Nielsen, Global Faces on Networked Places ) By 2010, over 60% of Fortune 1000 companies will have some form of online community deployed for CRM purposes (Gartner Group, Business Impact of Social Computing on CRM) By 2010, more than half of companies that have established an online community will fail to manage it as an agent of change. Rushing into social computing initiatives without clearly defined benefits for both the company and the customer will be the biggest cause of failure. (Gartner Group)
6 Research Motivation Strategic CRM : Enterprise wide strategy Analytical CRM : Analysis of the master data Operational CRM: Contact centers Collaborative CRM: Communication with the customer. Giving a level of ownership TRENDS, TOPICS AND UNDERRESEARCHED AREAS IN CRM RESEARCH; International Journal of Public Information Systems, vol. 2009:3
7 Research Motivation CRM 2.0 as a fully integrated strategy and system remains immature, though the integration of CRM traditional technologies with social networks is ongoing and increasingly coexistent. CRM 2.0 thus must be seen as strategically maturing but technologically immature. Any company that understands that their customers are demanding something more and different will adopt CRM 2.0 strategies to gain greater insight into their customers and to support creation of mutual value. -The impact of CRM 2.0 on Customer insight by Paul Greenberg While "Social CRM" solutions have captured the imagination of decision-makers at many organizations, it is the tried-and-true technologies that offer the most certain return on investment. The business value of social solutions is yet to be proven. Interest in "Social CRM" solutions is growing rapidly. But, mainstream companies are watching for evidence of success by the early adopters. -The Extended CRM Application Ecosystem: Value, Risk and the Future of Social CRM Posted by William Band on August 13, 2009
8 Benefits Sales teams Integrated view of their customers online conversations combined with digital analytics and existing CRM activity history. Marketing teams Real-time listening and monitoring of online conversations. Product development teams Can engage and collaborate directly with customers throughout the development phases. Customer service Empowerment to provide a memorable service by proactively responding to customers on the customers terms.
9 Impact Procter & Gamble: Connect and Develop -In1999, before the Connect and Develop program was introduced, less than 10% of P&G technologies were being used in products (Sakkab,2002). -As a result of its Connect and Develop strategy, P&G aims to drive new innovation through collaboration with external partners in at least 50% of cases. A number of organizational initiatives have been introduced to assist the process (Sakkab, 2002). Dell IdeaStorm -Dell IdeaStorm community was launched in 2007 to help Dell more effectively listen to customers and implement their direct feedback into the company s products. A 60,000-strong community generates thousands of conversations and ideas about Dell products and how the company can make them better. Starbucks -the site has received over 80,000 ideas and 50 + new ideas have been launched based on the input. However, there are indications that some users feel Starbucks only uses the forum to take ideas that fit into their corporate agenda and that this has led to some alienation and disillusionment within the community. -Opinion Piece Integrating social into your business Graeme Foux
10 Research Questions To investigate what is the Impact of Social CRM on Organization (ROI, decision making and its limitations). What are the challenges that managers face for Social CRM acceptance and adaptation?
11 Your Valuable Thoughts And Comments -Thank you
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