Social CRM is the latest and possibly a powerful variation of the traditional CRM. CRM, or Customer Relationship Management systems and processes are an essential part of enterprises. Without the use of this CRM technology and platform, companies can really struggle to meet the needs of their customers, collect the proper information for appropriate interactions, and understand what their customers want and need from the company and its products or services. With proper CRM, however, many of these pitfalls can be avoided. Social CRM is a new niche, but still an integral part ofCRM, and is becoming a significant part of a company’s CRM strategy.

What is social CRM?

Social CRM involves the use of social media platforms to engage with customers. Everything from Tweeting about the latest product release to posting a more detailed product launch description to a Facebook page can fall in this category. So can YouTube videos, pictures on Instagram, and more. Companies that interact socially with their customers may see an increase in customer base, and until they give it a try they will not know what affect in may have on their bottom line.

How is it different from traditional CRM?

In traditional CRM companies would focus on getting information from the customer when there were direct interactions, such as emails and phone calls. This information went into a database, so the customer could be served faster and more easily in the future. However, unless the customer interacted directly with the company very little was known about them or their buying habits. Social CRM adds another layer to the issue, allowing companies to find out much more about their customer and potential customers through the power of online social interaction.

What is it comprised of Social CRM and what is its impact on companies?

Social CRM is comprised of every social media platform, technology, and technique that companies can use, and has a big impact on companies who use it correctly. Companies that fail to understand how to use social CRM correctly can also be impacted, but largely in a very negative way. When a company upsets customers on social media it can spread very quickly and a fast take-down and sincere apology are necessary. Because social CRM has the power to reach so many people at once, it must be handled with care to appease the largest number of customers possible.

What type of companies must consider Social CRM, and how should that paradigm be implemented?

Realistically, all companies that sell to the public, whether they offer products or services, should consider social CRM. Many people look up companies on social media to see what kinds of reviews are present, but also to see what the company is actually saying about itself. When a company offers information on social media sites, customers can reach out to that company much faster, as well. That helps the customers feel more connected and can show them that the company cares about who they are and what they have to say. That bond can provide the opportunity for high levels of customer loyalty.