The Future of Social Customer Relationship Management

August 17, 2011

Currently there’s a lot of buzz around social customer relationship management (CRM). Social media platforms and technologies like Facebook, Twitter and Foursquare are transforming how companies market their products and engage audiences. But when you’re also concerned about delivering results to your clients, you’ll do well to study the evolution from traditional CRM to sCRM.

Like different forms of intelligence – abstract, practical, emotional – customer data reveals different value traits that help to assess each individual. Then we can develop programs to extract revenue from that data.

While “transactional” value has been a mainstay for decades, the web and its social media platforms have introduced new “relationship” and “influence” measures. The more comprehensive data complements CRM’s traditional indicators:

Transactional: Determines a consumer’s monetary value based on purchase recency, frequency and dollar amount. Database marketers have relied on these attributes for decades

Relationship: Predicated on information sharing activity, the type and depth of information shared by consumers is directly related to their value to the brand.

Influence: Evaluates the consumer’s social potential as an “earned media partner” based on their publishing frequency and social graph responsiveness.

The seamless integration of what we call the “Value TRInity” — transaction, relationship and influence — will be the future of CRM.