By Mark Tamis, associate, social CRM and social business consultant, NET-7

Thursday, February 18, 2010

Last week, I had the privilege of attending the CRM Seminar on “Social CRM for Business.” The two-day event near was organized by BPT Partners‘ Paul Greenberg, who managed to attract a large number the world’s thought leaders on Social CRM and market players to convene at a snowed-in Westin Hotel near Washington, D.C.

To the members of the #SCRM Accidental Community, it felt like the culmination point (hence the term #SCRMsummit  ) after many, many months of tweets, blogs, comments, and Skype chats that have helped us shape our ideas of what a social CRM strategy could look like, as well as the promise social CRM holds concerning how business can be changed for the benefit of all parties involved. It was great to meet in person finally!

I won’t repeat the ideas that have already been put forward by other participants (you can find the links below), but I’ll cut to the chase and give you my takeaway.

The social customer is now a given (even though I believe the degree of which she is may vary per country…), and basically always has been around. Contrary to the past, these customers now have the ability to find, reach out and converse with like-minded souls from around the globe, it has exploded. They’re able to join and leave such tribes and communities provides them with great flexibility to create firm or loose ties as they so please. They are starting to become more and more aware of their power they can bring to bear when they act as a group and are able to bear more pressure as a group, leaving many companies in disarray.

Rather than turn to your company for their information needs about your product or services, they now turn to their peers who they overwhelmingly trust more than they do you. It is The End of Business As Usual (cf The Cluetrain Manifesto): No more only-outbound marketing (some would say “shouting”…), you now have to pay closer attention to what is being said about you, where it is being said, why it being said and strive to anticipate where the conversation is going: The new Marketing Logic is customer centricity through engagement and collaboration, but on the customers’ terms. Authenticity and trust is what matters – more than even the “consistency” of the message.

What really stuck with me? Find out after the jump.

What really stuck with me was the idea about the collaborative value chain (CVC) which extends the enterprise value chain (company, partners/channel, vendors/suppliers, external agencies) to include the customers. The customer experience is central, and the whole ecosystem contributes to providing one that is superb — an effort that includes “knowing what the customer thinks and involving her in your thinking on a systematic, ongoing basis.”

The main question for me following Paul’s seminar is how to organize our companies for social CRM. As I’ve stated in my Twitter bio since I opened the account, I am excited about social CRM as an organizational change agent. I believe it’s the compelling reason for Enterprise 2.0 implementation, the mantra of which is to get people to collaborate across the width and breadth of the company. But all to often I get the feeling that the pitch has been about the tools and that people are asked to collaborate for the mantra’s sake (I will follow up on this in a later post).

Social CRM makes Enterprise 2.0 a necessity for “responding to the customer’s control of the conversation” (Paul Greenberg’s phrase) and extends it to include the whole CVC. This brings me to Social business, on which Esteban Kolsky tried to explain in this post on The Social Customer I commented that my idea is as follows : “Social business is the optimization of the CVC for customer-centric business.” Esteban said that there were too many fancy words, so we settled on it being when Customers, Organizations, Partners, and Suppliers work together to optimize the value of doing business together.”

[Editors' Note: We've taken the liberty, for aesthetic purposes, of reordering the Tamis and Kolsky quartet of collaborators to spell out "COPS" instead of "COSP," as it originally did.]

This leads me to the last bit, the why of going down the Social CRM / Social Business Strategy route. If there is only compelling reason it is to ultimately to run your business more efficiently, leverage the customer experience to increase your customer base and ensuring that everyone involved is able to optimize the value they extract and exchange so they will continue to want to collaborate.

In the global factory, products can be built at short notice. Services are easily imitated. Your competitive advantage will be your customer base and its collective ability to advocate your company and persuade peers to do business with you.

So what do you think? Is the idea of social business disruptive on the organization, or a natural evolution?

Once again, thank you to Paul Greenberg for providing us with a platform that has finally allowed us to meet and exchange. It really felt like it was a defining moment for Social CRM as a practice. Merci!

If you would like some additional points of view on the event, I suggest you take a look at the posts by attendees Mitch Lieberman,  Michael Krigsman, Brent Leary, Kevin Paschuck, Mike Fauscette, Dr Natalie Petouhoff, Prem Kumar, Brian Vellmure, Kathy Herrmann, Mike Boysen,

[Editors' Note: This blogpost first appeared on Mark Tamis's own blog. The editors appreciate his generosity in allowing us to mirror it here. Tamis can be found on Twitter as @marktamis.]