At that time Gartner developed its eight building blocks of CRM which consisted of steps such as vision from the board, implementation of strategy and changes to organisational structures, processes and culture. In this article Davies subscribes to the same approach to ensure that investment in social CRM isn’t wasteful.
"I really got the sense that a lot of companies that are doing social CRM have actually forgotten about the building blocks. They may have had a CRM strategy and metrics and done all that in the past, but now with social they have forgotten about it and instead it’s all about playing with social monitoring platforms."
Applying the Eight Building Blocks of CRM to Social Media
The increase in adoption of social media across media, high-tech, consumer goods and retail sectors has been prolific during the past few years, and is set to expand into other industries during the next three years. Organisations need to embrace this phenomenon as an integral part of their customer relationship management (CRM) strategy.
Our research points to improvements in customer and market responsiveness, product development, sales effectiveness and operational efficiency as key drivers. Success, however, requires the same due diligence in traditional CRM that Gartner has reinforced for the past decade.
CRM is difficult to get right and Gartner estimates that fewer than 10 per cent of organisations have optimised the management of their customer relationships. A decade ago, Gartner created a framework called "The Eight Building Blocks of CRM" to help organisations be more successful. This framework has stood the test of time and is still highly regarded worldwide. Updated versions of the original research have been released over the years to reflect market shifts, but no fundamental changes have been made to the core framework.
The Eight Building Blocks of CRM
Gartner defines social CRM as a business strategy that mutually benefits cloud-based communities and the business by fostering engagement while generating opportunities for sales, marketing and customer service. The key considerations within this definition that organisations need to take heed of are:
Social CRM is a sustainable strategy, not a single project, such as setting up a Facebook page or mining social media.
- Social CRM requires an increased level of openness and a willingness to engage more with customers.
- Social CRM relationships need to be mutually beneficial for them to work.
- Social CRM has to have a positive financial impact on the organisation through the associated impact on sales, marketing and service.
1. Social CRM Vision
2. Social CRM Strategy
3. Social Valued Customer Experience
4. Social Organisational Collaboration
5. Social CRM Processes
6. Social CRM Information
7. Social CRM Technology
8. Social CRM Metrics
"In the meantime, [companies] absolutely should not wait. Because there is going to be value to be had by buying SaaS-based, pay-as-you-go service for a tool that may be acquired in a year’s time or they may not want to use in year or two’s time. So they need to think about it strategically and long-term, but don’t delay investment in the software because they are incumbent and can’t do it yet.