Impact of Social CRM is very interesting on the society, with the ever-growing social media penetration into the life of commoners. The merger of the latest technologies with the strategy to assess customers’ needs by accessing their demographics, interest, and network through effective marketing has changed the course of the CRM industry.
Social CRM (Customer Relationship Management) in simple words is the amalgamation of CRM strategies with omnipresent social media channels. Organizations are using Social CRM in wide scale nowadays and not just as a nice-to-have implementation. With this, the benefits they reap out of SCRM is incredible like global presence, easy reach to consumers (read end users). The impact caused by Social CRM in society and over end users is worth noting.
Advantages of Social CRM
Customer is the epicenter
SCRM has introduced ‘customer-centric processes’ rather than sales-centric, means the focus has shifted mainly from sales to the customer relationship. Hence, the end users have become a sort of partners with the organizations while leveraging the services and the products for their best benefits. The 24X7 presence of call centers, online grievance portals, and chat apps help customers to raise their concerns almost immediately. And as the social media is an open platform, even a single complaint cannot go unnoticed. Hence, customers are getting improved services.
Time and Cost effective
The easy reach of the products market at the fingertips owing to the smartphones can save lots of time for the consumers. The handy availability of easy services and reviews about the products help end users make decisions faster. Also, since the customer’s data and last interaction calls/info are stored by the SCRM software easily, the customers don’t need to explain their details and pain points repeatedly to the call centers.
Customers have the choices to compare the products and services on social media. The reviews and the ratings help consumers make better decisions. Also, when a customer clicks on one product in social media, they are automatically prompted for such similar products. This gives them a chance to compare quickly and easily gathering reviews and enjoy after-sales service. This helps customers feel being focal and involved in their own decisions.
Improved Relationship and Trust
Social CRM is complimentary to traditional CRM. But the added benefit is transparency for the customers in services and product descriptions. SCRM makes the organizations to have a fair deal with the customers. Due to improved services in all dimensions, customers have better trust in the organizations and their products and services. Customers are also being heard almost real time with quick action.
Due to the enhanced analytics capabilities coupled with SCRM, the research and development wings of the organizations get a peek into the sentiments and expectations of the customers which lead to faster and improvised development of the products and services. This, in turn, is a benefit for the customers. Improvised products determine and influence the Impact of Social CRM to a greater extent.
These days, referral benefits have become common. When an end user refers to their connections for some products or services, they reap referral awards due to brand advocacy.
Proven Benefits in various industries
Apart from improved customer services and faster resolution of issues, there are many industry wise benefits for the end users.
- In the Financial and Banking industry, SCRM has aided to overcome transparency problems. Customers have a better insight of the banking products, their pros and cons and this has considerably increased the customer satisfaction.
- Many Telecom giants have reaped the benefits of SCRM and have improved their services via feedback originating from social media interactions.
Cons of Social CRM
SCRM’s soul lies in the open platform of social media. So the information about customers is also open for the organizations. There can be some disadvantages of the SCRM too alongside the amazing advantages like every technology.
Socially integrated CRM systems keep track of each move of the customers like job changes, major events of life and even some personal demographics which users share unknowingly. Though this is not a major threat, it raises a concern about identity theft and data being stolen and misused.
In a nutshell, Social CRM has shifted customers from endpoints to the focal nodes in a network of business and marketing. Consumers have a big power wand called social media which can either elevate and alleviate a company’s business.