Customer Relationship Management System (CRM) is a system to manage current and potential customers. It usually makes use of the incentive program and membership program to attract customers, thereby enhancing revisit rate and customer loyalty. The system collects data from members and customers to conduct big data analysis. Today it isn’t enough! You have to collect the ‘’Fans’ ‘data as well. We call it Social CRM.
Social CRM-Fans to Customers
‘’Fans’’ is a new keyword which emerges in recent years. Fans are potential customers who have interest in the products or services. The keyword “fans” is closely related to social media. Many merchants start running their own Facebook, Twitter, YouTube, We Chat and etc. Social media allows footprint collection and interaction with fans. You can engage with fans and ‘get likes’ to increase loyal customers.
Social CRM: Low Conversion Rate?
Just recently, I was invited to ’like’ and ‘follow’ a Facebook page by a restaurant. As a return, it offered a cocktail for free. I believe everyone shares the same experience right? Shops offer discounts to induce fans on Facebook, and most people will do that. However how many of you un-follow the Facebook page afterward? The promotion is effective but only work for a while. Only a few fans will keep following the Facebook page. Therefore, the conversion rate is low while the cost can be quite expensive.
’Content’ and ‘engagement’ is the foundation of Social CRM. Fans may leave you once they found your content not interesting. Continued engagement is more important than discounts. Instead of spending money to offer discounts, it is more effective to spend resources to enrich your content.
Social CRM-Big Data
Social Marketing is the trend of the times. Many enterprises reduce traditional media advertising and spend more resources on Social Media. They made videos, info-graphic, text to interact with fans. Fans and visitors response and sometimes even engage with you.
Those engagements from fans are valuable data, which represents the consumption behavior and preference. Don’t waste them! What you need is an automatic CRM system which allows data analysis, data collection, continued monitoring and prediction. Like Google Ads, they collect your footprint and cookies on internet, analysis and then deliver related advertisements. If you search shoes on the internet then you will most likely see a shoe advertisement on Facebook.
Social CRM allows enterprises to engage with fans and customers across multiple channels. This is precious because it understands of customer needs more effectively than more marketing research ever could. Social CRM is redefining customer relationships management and also reshaping long-standing business processes.