As mentioned by Steve Reeves, two new terms are literally “exploding” in the social media sphere – Personal CRM and Social CRM.
You’ll find these concepts heavily discussed on Twitter and Linkedin, inspiring expert reports like the one published by the Altimeter Group.
And the world got even crazier when Gartner released a study presenting social media as a disruptive force in the CRM market and predicting over 80% growth in enterprise use of social networking tools, driven by customer engagement projects.
No wonder Erick Schonfeld included Social Media in TechCrunch Ten Technologies that will rock 2010…
But what exactly are Social CRM and Personal CRM?
Like Frédérique Garzon I think the concept is too immature to be generalized and precisely defined, altough I like Paul Greenberg’s tweetable definition “The company’s response to the customer’s control of the conversation”, which is vague enough to let everyone have their own interpretation.
Everything that more or less refers to the notion of dealing with customers, managing contacts and leads, having and listening to conversations, all on social media channels, can be considered as Social CRM.
As a result, new services are released every day, all of them claiming to be “social CRM” solutions although they address a great variety of requirements, as illustrated by Jeremy Owyang’s list of companies providing social CRM offerings. Jeremy identified not less than 8 different categories of social CRM companies! Needless to say it must be very very hard for social media rookies to pick which solution is for best them…
And the difference is…?
IMHO the difference refers to the ultimate end-user: is the service used by just one individual to manage their personal relationships (Personal CRM), or by multiple users at a single organization on a shared network (Social CRM)? But even that is not totally satisfactory, as you can imagine some crossover between the two. There seems to be two segments arising in the marketplace today: one focused on servicing professionals and small teams/businesses, as opposed to the classic CRM vendors targeting larger organizations. But both are providing the ability to listen, monitor and engage contacts/customers on social networks, as well as other forms of communication. It will be interesting to see how the space shakes out and becomes further defined moving forward.
So, what is at stake?
Social/Personal CRM usage is meant to soar, due to a number of converging trends, and not only because of social media rising as a powerful acquisition, branding and support channel. Other accelerating factors are:
- Consumerization of technology: business applications are more affordable, easier to use, and to adopt.
- Increasing individual buy-in: in February, Gartner claimed that business-led social media initiatives had a greater chance of succeeding than those spearheaded by IT departments, because the latter doesn’t currently have the right skill set in place to design and deliver such offerings, combined with a lack of suitable methodologies, technologies and tools to help them.
- Cloud and Mobility: personal data is now available on multiple devices: netbook, laptop, slate, tablet, phone, console, etc.
- People as a Platform: people have multiple profiles, and belong to formal as well as virtual groups.
But both providers and users of Social CRM need to be careful in their strategy: like Michael Maoz of Gartner says “Social CRM is more like marriage than dating”.
Very interesting changes in the way businesses interact with their customers, prospects and partners are happening, maybe even a fundamental shift from a “transaction” to a “relationship” approach. Looking forward to seeing how all this plays out.














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