Businesses have been leveraging social media to generate leads and interact with customers since sites like Facebook, Twitter and LinkedIn first appeared on the scene in the early 2000’s. Some early attempts to use social media to improve the customer base were clumsy, at best. But techniques have evolved significantly since 2003, with customer relationship management (CRM) technology improving by leaps and bounds in the past decade.
And now social CRM is poised to make a big impression on the market. The global market is expected to top US$13 billion by 2019, growing at a CAGR of 38.10 percent.
Social CRM is an advanced form of customer relationship management that uses social media services, techniques and technologies to enable organizations to interact with their target customers.
This business strategy is supported by technological platforms, business processes, and social networks to help engage customers in a collaborative manner to provide mutual benefits to both parties. The applications for social range from marketing, sales and customer services to social engagement with prospective customers, and social support for customers.
In a social CRM process, an organization uses specific tools to integrate all the social networks and improve its vendor-client relationship. The process also helps an organization collect and understand users interested in the products or services of the company.
Types of Social CRM
Social Media Monitoring
Social media monitoring, also referred to as social media listening, is the process of identifying and tracking news and information about a company, individual, product, or brand on social media.
Social Mapping
The social mapping tool is used to show the relative location of households and the distribution of different types of groups together with the social structure of an area. Social mapping is based on socioeconomic factors such as status, skills, property, education, and income. The tool helps determine households benefiting from the assessment and whether they belong to the target group of customers.
Social Media Measurement
The social media measurement tool helps measure the ROI generated from social media interactions. At times, social media can be challenging, and it can even be impossible to measure ROI. Digital measurement is dependent on customer experience, response, and subsequent behavior.
Social Engagement
Social engagement, also known as social involvement or social participation, refers to the degree of an individual’s involvement in a community. It is the ability to reach out and obtain a response from a company (as a consumer) or an audience (as a company).
Social Middleware
Middleware is computer software that connects software components or applications. Social middleware is composed of social software technology that supports individual interactions and usage patterns of customers. It also provides an insight into the future of an industry.
Key Leading Countries
US
The US was the leading country in the Global Social CRM Software market, accounting for a 52-54 percent share in the market in 2014. The US market is seeing an increased focus from organizations on investing huge capital to promote customer retention and enhance the customer experience. Key organizations in the US are increasingly interested in new technologies that encourage the development of customer communities and social networks.
UK
In 2014, the UK accounted for 14-16 percent share of the Global Social CRM Software market. Demand from sectors such as retail, finance, utilities and travel is the primary driver for market growth in this area.
