In these days of gender equality, we can rephrase this quote as “The consumer isn’t a moron; he/she is your spouse”, but the fact remains that a customer is the most important person for any business, more so in a competitive economy where customers have many choices. You may ask what that has got to do with Social CRM? Let me explain:

The sole reason any business, be a mom and pop store serving a small community or a multi-national corporation (MNC) having tens of thousands of employees across several countries with thousands of products and millions of customers, exists is to serve its customers. All business decisions and actions undertaken by every employee are aimed at satisfying needs and wants of customers, starting right from understanding customers’ needs/wants, designing a product, manufacturing the product, distributing and marketing the product and post sales support. Any action not aimed at making customers happy is fruitless or is counter-productive.

Heavy up-front investments are made (fixed costs incurred) in the process of creation and delivery of a product or a service with the assumption that the customer will like what is being offered and will purchase the product. Any active customer involvement in product design, manufacture and delivery process is ‘minimal’ at the best through market research. This results not only in costly product failures/increased risk for the business but also higher sales and support costs.

In ‘Social Age’, it is not only possible, but incredibly easy and inexpensive for business to collaborate with customers and work together irrespective of physical location and other barriers. Thanks to social networking technology, business has an opportunity to engage customer and prospects in ‘real-time’ at every stage of product design, manufacture and delivery process in order to minimize risks and maximize value delivered to customers.

Question is not how business can afford to engage customer on social media, it is how business cannot afford NOT to engage customers on Social Media channels. Social CRM, which has been defined as the business strategy of engaging customers through Social Media with goal of building trust and brand loyalty is the way to go for business (for more, see this).

To quote David Ogilvy again, “the consumer isn’t a moron; she is your wife”. Wouldn’t you want to engage your spouse or significant other (customers in this case) on an ongoing basis? And we all know the costs if we don’t engage significant people in our life, don’t we?

In “Social” age, customers are empowered like never before as they can share their experiences and opinions about brands/products on Social Media channels and marketers have no control over what customers are saying about their brands/products. This discussion is visible to all including other customers, potential customers and competitors.

The best any marketer can do is to Listen and Learn from what customers are saying and Engage them in meaningful conversations. In other words, Social Media channels are the new front-end of CRM system and CRM system should be designed in such a way that it captures all relevant information from Social Media channels and uses Predictive Analytics and Knowledge Management tools to derive insights and help in decision making.

Here’s how five key technological trends are driving evolution of CRM into next generation Social CRM systems:

1) Cloud Computing/SaaS CRM:

Social Media channels (like Twitter and Facebook) generate tremendous volume of user generated content created by millions of users. Not possible for CRM system to import/store the data “locally”. This is unlike “traditional” CRM, where data was generated by few users and stored in “local” database. SaaS Model makes it possible to store information in the “cloud” (shared space) and access it from (Social) CRM application “on-demand”

Social Media space is changing and evolving rapidly. Very difficult, if not impossible, for any CRM vendor to incorporate all new channels and feeds “locally” for every installation of CRM system. Under the SaaS model, it is not difficult to add new Social Media channels/feeds to the “hosted” (Social) CRM application and make it available to users “on-demand”

2) Service Oriented Architecture (SOA):

Service Oriented Architecture and Cloud Computing not only make it easy to integrate applications, but also facilitate “plug and play” modules and add-ons that can dramatically reduce time and cost involved in extending functionality of the application. SOA design is of great help in Social CRM as new social media tools and functionality can be added without expensive customization or upgrades as was the case in traditional CRM systems.

3) Real Time “In Process” Analytics:

Predictive analytics has made it possible not only to analyze past customer behavior, but predict future behavior too based on statistical models. Predictive analytics logic/modules can be “embedded” in Social CRM work-flows to analyse and predict customer behavior from “real-time” social network data feed and take corrective action by triggering appropriate work-flows based on pre-defined business rules. For example, if a customer (or a group of customers) tweet about their dissatisfaction with a product or service, predictive analytics can help in identifying who among them are most likely to defect so that company can take corrective action before it is too late. Better still, if they happen to be customer(s) of a competitor, company can make an attractive offer and win them over. And thanks to SaaS model and SOA, this level of real-time “In Process” analytics functionality is available to small and medium sized companies with no large scale investment requirements upfront.

4) Smart Phones and Tablet PCs:

Mobile phones have evolved from “simple” telephones to mobile multi-media communication hub connected to internet via “always on” wireless broadband connection. This is going to be one of the big stories over the next couple of years that will fuel exponential increase in Social Networking Sites and their user base. It is estimated that currently more than 650 million people worldwide, or 13.4% of mobile subscribers, use the Web via a mobile device at least once a month (see this link). This number is all set to skyrocket as inexpensive smart phones continue to flood the market.

Similarly, Tablet PCs, given their large hi-resolution screen with multi-touch input, Accelerometer sensor for UI, touch-sensitive controls and high speed internet access via 3G/4G or Wifi/WiMax have the potential to change the way we use Social Media tools and take Social Networking to a whole new level.

Current Social Media tools such as Twitter or Facebook are “text” or “web-page” UI based. NextGen Social Media tools will leverage full range of functionality available in Tablet PCs and make media consumption for information & entertainment or playing online games a truly Social experience.

5) Enterprise Application and Data Mashups:

In any large or medium enterprise, we have a diverse range of applications such as “on premise” CRM or SaaS CRM, BPM, MDM, ERP etc. to name just a few. Adding Social Networks to Enterprise Application landscape increases complexity of integrating and managing all the applications exponentially not only because of amount of data generated by users on Social Networks but also the need to monitor and respond in “real time”. Enterprise Application and Data Mashups can solve this problem by combining data or functionality from multiple applications and presenting information in the required format in a seamless manner.

In a Social CRM system for example, Enterprise Application and Data Mashups can be used to combine data/functionality from multiple applications such as CRM, MDM, ERP etc. and new services can be created “on the fly” or specific work-flows can be triggered based on pre-defined business rules in a user friendly way.

All the five tech trends discussed above, namely Cloud Computing/SaaS CRM, Service Oriented Architecture (SOA), Real Time “In Process” Analytics, Smart Phones/Tablet PCs and Enterprise Application/Data Mashups are now converging and are set to transform how marketers engage their customers through social media with goal of building trust and brand loyalty!

What do you think? Please do share your thoughts and opinion:

Thanks to Social Networking technology, now it is quite easy to connect online with not only family and friends, but with other like minded “strangers” (whom we wouldn’t know otherwise) and exchange information, opinion and views, such that it is visible to all in our network. In other words, sharing and exchange of information or opinion about products or services is truly social in nature.

Startups like Groupon have leveraged not only the innate urge of people to share information about good deals with family and friends using online social networks, but also the potential of Social Media for collaboration among “strangers” for group buying discounts.

Contrast this with the fact that established retailers, both online and brick & mortar, have been slow in embracing Social Media despite the realization that it has the potential to disrupt traditional retailing model (for more, see my earlier post titled How Social Media will disrupt the traditional “Retailing” Model). Most initiatives so far by retailers were limited to either offering social sharing options on their websites or limited shopping cart functionality on their Facebook page.

J.C. Penny, the Plano, Texas based retailing giant took a great stride in this direction by moving their entire product catalog to Facebook, meaning one can buy all their products from their Facebook page just as on their website (for more, see this and this). Imagine number of clicks or free publicity this is likely to generate through Facebook sharing. I expect other retailers to follow J.C. Penny’s example in this direction.

Retailing industry as a whole has suffered over the past few years because of global recession. One of the ways retailers can improve their performance and make up for lost opportunity is to start using technology in innovative ways leveraging full potential of social media, location based tools, smart phones with high speed internet access and social gaming. Only those retailers who are successful in this will see their sales and margin grow at the cost of retailers who are slow to adopt new technological tools. In other words, success of retailers will be determined by their effectiveness in using new tech tools such as Social Networking.

I want to end this post by sharing this CNN video from National Retail Federation’s annual event, the NRF 100th Annual Convention & Expo that concluded earlier today in New York. Note the emphasis on Social Media in this year’s event.

Enjoy the video and do share your thoughts and comments:

In a study titled The New Sharing Economy by Latitude Research and Shareable Magazine, it was found that:

(For more, see this excellent article titled The New Sharing Economy by Neal Gorenflo and pdf version of full report is available here).

Rachel Botsman, co-author of the book What’s Mine Is Yours: The Rise of Collaborative Consumption, spoke on the subject recently at TEDxSydney (please see following video):

Social Media is ‘enabling’ trust between strangers and this helps remove middle-man in exchange process. As a result, Collaborative Consumption will disrupt traditional business models.

To thrive in this brave new world, companies will have to reinvent themselves leveraging collaborative technology to connect with their customers and giving them “access” to products or services, rather than “selling” them products or services. This will radically change the way products (or services) are created, distributed, priced, accessed (not owned) and consumed. We live in exciting time indeed!

What do you think? Please do share your thoughts on the subject:

You may say that this is a pipe dream and cannot be reality any time soon unless we have futuristic gadgets similar to what were featured in popular TV series Star Trek.

Well, I say think again. We have Social Media tools and technology that can be used over enterprise intranet (as opposed to internet) to make this a reality. To know more, take a look at this excellent preso by Oscar Berg on the subject. My favorite is slide no. 91 (Know thyself).

Enjoy and please do share your comments and thoughts:

In this article, Brian makes few excellent points about why and how CEOs should engage customers and employees on social media channels such as Twitter.

Some of the points worth emulating by other CEOs and senior executives are:

(see this link for complete article on Businessweek website)

Hope other CEOs and senior executives will emulate Brian Dunn and start Listening, Learning and Engaging customers and employees on Social Media channels.

Even retailing giant Walmart seems to be taking note of Groupon’s success and has launched a Facebook deals app called CrowdSaver, which unlocks a discount once enough consumers opt in (for more, read this AdAge article titled Walmart Takes a Page From Groupon in Facebook Promotion). I think this is a step in the right direction for Walmart and other retailers should (and will) follow suit.

Traditional retailing involves buying in bulk from the manufacturer (or distributor) and selling one piece at a time for a mark-up. This model has served both the manufacturer and retailer well – so far. This is about to change, thanks to Social Media.

Customers are increasingly going to leverage power of Social Networks to connect with other like minded customers who want to buy a particular product or service. Collectively, this group of customers is a force to reckon with and manufacturers (or distributors) can directly sell to them breaking the hegemony of major retail chain stores. To counter this, retailers can leverage the power of Social Networks and offer deeply discounted prices to customers if a certain volume of sales is achieved – what Walmart seems to have done.

Whichever way you look at it, Social Media will disrupt the “traditional” retailing model for good. And customers are going to be winner as they can exercise group buying power and buy products/services at lower prices or at better terms. If retailers don’t innovate and leverage Social Networks, their margins will be under increasing pressure and they will lose customers to those who leverage the effectiveness of Social Networks and offer great deals.

What do you think? Do you agree that Social Media will disrupt the traditional “Retailing” Model? Please do share your thoughts:

Why can’t more businesses, especially small and medium ones, think outside the box and start leveraging the reach and effectiveness of Social Media channels for engaging customers and prospects the way 4food has done?

It is not only a great way to build trust and loyalty, but can also lower marketing costs significantly – something very important in today’s economy. What do you think? Please so share your thoughts:

First and foremost, it means Microsoft’s dominance of PC (personal computer) market is under threat as many customers are buying Apple iOS or Android OS powered Tablet computers in lieu of a Windows OS notebooks or desktops that they may have purchased otherwise. Microsoft Chief Executive Officer Steve Ballmer recently said that “Microsoft is urgently working with its partners to unveil a host of tablet computers running Windows 7, to compete with Apple’s fast-selling iPad” (for more, see this link). Competition among Apple, Google and Microsoft for share of Tablet OS market is great news for consumers as this will drive innovation leading to development of better products at a lower price.

Tablet PCs have the potential to bring about a dramatic shift in the way we use traditional media for entertainment and information. Rather than reading newspaper or magazine for information or watching television for entertainment, increasing number of consumers are likely to use Tablet PCs for accessing digital version of their favorite newspapers, magazines and books, and watch movies or television shows on demand from Tablet PCs.

Many popular Tablet PCs are WiFi/3G enabled and are equipped with microphone (and soon, a front facing video camera if not already) making them a great device for connecting with friends and family members over the internet at a fraction of cost of connecting over phone lines.

Tablet PCs, given their large Hi-resolution screen with multi-touch input, Accelerometer sensor for UI and Touch-sensitive controls, have the potential to change the way we use Social Media tools and take Social Networking to a whole new level. Current Social Media tools such as Twitter or Facebook are “text” or “web-page” UI based. NextGen Social Media tools will leverage full range of functionality available in Tablet PCs and make media consumption for information & entertainment or playing online games a truly Social experience.

Most importantly, a fully functional Tablet PC costs just a few hundred dollars, a little more if it is a premium brand like Apple (note the price tag on Android powered Tablet PC I mentioned earlier in this post). And by all accounts, prices are likely to drop further as sales volume increase.

One may argue that a Tablet PC costing few hundred dollars is quite expensive in developing countries where consumers’ purchasing power is a fraction of what it is in developed world. Well, watch the following video to know more about a fully functional Tablet PC developed by Government of India costing mere $35 and they hope to bring it down to $10 (you read it right, $10). Just imagine what a Tablet PC costing mere $35 (or even lower) can do to bridging of the Digital Divide. A Tablet PC revolution indeed!

When we talk about Social Media Marketing and Social CRM, we are often referring to large corporations with big marketing budgets for advertising and brand promotion. Case in point is the recent YouTube campaign by P&G for one of its brand, Old Spice (for more on it, see my post titled Old Spice: The best Social CRM campaign till date).

It is important to note that Social Media channels such as YouTube, Facebook and Twitter provide great platform for engaging customers, fans or patrons for not only big business, but  artists, non-profit and small business organizations too by leveling the playing field. All that matters on Social media channel is the power of idea. If the idea is good, it can quickly go viral and provide publicity worth millions of dollar almost instantly. And best part is Social Media channels are free to use and Social Media content or campaign can be created cost-effectively to fit budget of any size.

Here’s an example of Social Media engagement of fans by famous Colombian singer, songwriter and musician, Shakira. Please note that this interview with Shakira was “completely powered by YouTube users” as questions were submitted by YouTube users from around the world and were selected based on number of votes each question received.

Watch this excellent YouTube interview with Shakira and do share your thoughts and comments on how Social Media can effectively be used by artists, non-profit and small business organizations:

Something similar is happening with respect to Social Networking technology today when it comes to Customer Relationship Management (CRM). Instead of modifying and re-engineering their CRM business processes to take advantage of unique characteristics of Social Networks, companies are fitting “Social” engine to their existing CRM carriage and are expecting great results from it.

Just ask any executive or consultant who is involved in implementing a Social Media marketing or Social CRM solution about how to engage thousands of customers (Scale) on Social Media channels and their Call Center “in the box” thinking becomes evident, what I call fitting “Social” engine to their existing CRM processes (Carriage).

Instead, we need fresh outside the box thinking to take advantage of unique characteristics of Social Media and Social Networks. For example, instead of trying to respond to each and every tweet or Facebook posting by customers, something not practical for a medium or large business, the emphasis should be on creating advocacy and building trust among customers, keeping in mind the “Social Context” of the medium. No where this is more evident than in support communities, where brand advocates/loyal customers help other customers out by answering their questions or suggesting solution, rather than company Reps trying to answer all the question.

Similarly, companies must leverage unique characteristics of Social Networks and re-engineer their CRM business processes to derive full benefits from it, rather than trying to fit “Social” engine to their existing CRM carriage, calling it “Social CRM” and  expecting great results from it.

What do you think? Look forward to your comments:

• Business Applications that drive industry
• On-Demand/Cloud computing
• In-memory technology
• Analytics, and
• Mobile

This is a great growth strategy, but it is equally important for large Enterprise Applications firms such as SAP and Oracle to incorporate in their offering technological tools that foster collaboration, not only within the enterprise (among employees), but outside the enterprise too (between employees and customers/suppliers).

Benefits of effective collaboration in driving down costs, improving productivity and employee engagement/morale cannot be emphasized enough. And in current economic climate where sales growth is hard to come by, higher productivity is the magic mantra. Collaboration among employees, customers and suppliers is the key that can deliver higher productivity organizations have been aiming for.

What do you think about SAP’s Growth Strategy? Shouldn’t Enterprise Applications firms such as SAPand Oracle incorporate in their offering technological tools that foster collaboration? Please do share your thoughts:

This presents an excellent opportunity for business to tap into Cognitive Surplus, world’s spare brain power so to speak, and leverage it in a way that it is beneficial to all concerned (see this link for an excellent visualization of the size of Cognitive Surplus and refer to my earlier post titled Cognitive Surplus: Implications for Social CRM for more on the subject).

Quirky, a Social product development company is a very good example of not only collaborative work, but also of how influencers can be rewarded for their contribution (see the last column of any product’s page on Quirky’s online store for share of each influencer in total price of the product).

Watch the following videos to learn more about how Quirky taps into Cognitive Surplus of Influencers and rewards them for their contribution, a win-win strategy indeed.

Well, we may get as many different answers as the number of Social Media gurus and Advertising pundits out there, which by the way is not a small number!

Watch this excellent panel discussion and listen to what four real experts have to say on this subject. The experts are:

• Mark Pincus, Founder & CEO, Zynga
• Jeff Weiner, CEO LinkedIn
• Irwin Gotlieb, Global CEO, GroupM
• Dick Costolo, COO, Twitter

I like what Irwin Gotlieb says: “Nature of commercial message is not going to look like a display ad, it’s going to provide functionality and a different kind of interface for the user to act on something. People in Social context don’t want to be interrupted, instead want continue to be engaged and want  functionality that eases a task they are about to engage in.”

Enjoy the video and do share your thoughts on what advertising will look like in Social Age.

Old Spice Social Media campaign that has generated tremendous buzz, not only in Social Media but in traditional media channels as well, is a great example of Social CRM campaign where Procter & Gamble, the company that owns the brand, has very effectively engaged customers (and prospects) through Social Media with goal of building trust and brand loyalty. Watch this excellent CNN video on the subject:

What should Google do to continue its dominance in the Social Age? Think outside the box, “Search” box that is! Google has done a great job focusing on its core competency of indexing content on the web and displaying most relevant search results without any “noise” or “clutter” on the screen. And this is what made Google so popular in the first place.

But this strategy of indexing web content and displaying most relevant search results will no longer work in Social Age as users rely more on Social Media channels and less on search engines to get relevant information. Google should shift its strategy from Search to Share, to continue its dominance in the Social Age as people are more likely to pay attention to content from those they trust rather than ones suggested by search engines. 

Facebook recently introduced some great changes to its service in order to leverage the power of Open Graph and “create a smarter, personalized web that gets better with every action taken” (for more, see Mark Zuckerberg‘s blog post here). Google should up the ante on Facebook by introducing “Social Plugins” that will help collect, index and display content based on Social links. And this transformation from Search to Share involves thinking outside the Search box.

I want to end this post by sharing with you this great CNBC Video titled Inside the Mind of Google that explains very well Google’s success story. Enjoy the video!

But in spite of this technological transformation and progress in system architecture, all CRM systems essentially record transactional information using pre-determined fields on the screen (front-end) to capture information in the database, and company is in total control of conversation (should I say interrogation) with customer at every stage.

Thanks to rapid expansion of reach and effectiveness of Social Media channels, this is about to change. Social Media has empowered customers like never before as they can discuss about brands/products on Social Media channels and companies have no control over what customers are saying about their brands/products. This discussion is visible to all including other customers, potential customers and competitors.

The best any marketer can do is to Listen and Learn from what customers are saying and Engage them in meaningful conversations. In other words, treat Social Media channels as the front-end of CRM system, capture all relevant information from Social Media channels in the database and use Predictive Analytics and Knowledge Management tools to derive insights and help in decision making.

What is important to note here is that “Social” is not a middle-ware or another layer in the architecture of CRM systems, but is the front-end of CRM system, where customers decide the format and content of information.

It is responsibility of the company to record and store all relevant information from Social Media channels and derive value from it by using Predictive Analytics and Knowledge Management tools for effectively engaging customers.

What do you think? Do you agree that Social Media is the new front-end of the CRM system? Or is it middle-ware? Please do share your thoughts:

To answer some of the questions, here is a list of eight must read blog posts on Social CRM. Happy Reading!

• 2010: Year of Social CRM
• Definition of Social CRM – Explained!
• Definition of Social CRM – Questions & Answers
• How Customer Engagement Will Determine Winning Brands in Social Era
• Social CRM: Take the Leap of Faith
• Brand Crisis and Social Media
• Social CRM: Don’t wait for Social Media “Oil Slick”
• 5 Lessons Social CRM can Learn from CRM

Some of the more interesting points mentioned by Jeff are:

• Currently LinkedIn is used by 60+ Million professionals out of estimated 500 Million professionals world-wide
• LinkedIn is profitable (rare for a valley start-up these days), so far raised close to $100 Million, all of it still in the bank
• Has three lines of business, Premium Subscriptions, Ad Sales and Enterprise Licensing – growth fastest for Enterprise Licensing
• LinkedIn a “Professional Network”, calling it “Social Network” is a misnomer

Jeff also mentioned that no matter where in the world they talked to LinkedIn customers, people always mention that they want to keep their personal lives and professional lives separate. This is not surprising, but given the “always on” nature of Social Networking coupled with high speed internet access from smart phones and portable devices, lines between personal and professional lives are getting blurred all the time.

It will be interesting to see how work-life balance evolves over the next 2-5 years time frame. In my opinion, employers should take a lead and make work fun to the extend possible in order to keep employees engaged and productive.

There are three important reasons for the phenomenal growth and popularity of Foursquare as compared to rivals such as Gowalla or Yelp.

• Technology: Although just one year old, Foursquare has stayed on top of technological aspects and made sure that its app is user friendly and efficient in leveraging location based info from mobile devices. Its latest release, Ver. 1.7 features many enhancements such a new design, faster check-ins besides an easy way to view check-in history.

• Ease of Use: Foursquare is very intuitive, easy to use and the latest release is a big step in this direction. (see this CNN video on how easy it is to use Foursquare)

• Creative Design and Promotion Strategy: Foursquare has been very creative in its design – badges for example and the way you earn them. Also important is how Foursquare (and participating establishments) have promoted the service. For example, Starbucks recently teamed up with Foursquare to offer customer rewards (for more, see this link). And when other companies have spent hundreds of thousands of dollars on marketing to reach target audience, Foursquare has relied on buzz generated by creative promotion strategy. At the  South by South West (SXSW), 2010 taking place in Austin, Texas, Foursquare had people lined up to play this game of four square with one of its founders, Dennis Crowley, outside SXSW venue, with people walking by and talking about it. This is great buzz for Foursquare, with total investment of around $5.99 for a box of sidewalk chalk, that other companies paid tens of thousands of dollars to generate inside the venue! Isn’t that cool? (watch the following video)

To summarize, Foursquare is the hottest Social Network on the web because it is technically efficient, easy to use and creatively brilliant in design and promotion.

What do you think are the reasons for Foursquare’s success?

Few other examples of successful Social Media initiatives by Ford include Summer of Taurus, the2010Mustang.com,  WeddingRoadTrip.com and FiestaMovement.com (See this excellent blog post by Lee Odden for more).

To learn more about Ford’s Social Media success, watch this interview by Lee Odden with Scott Monty, Head of Social Media at Ford.

According to Scott, even the CEO of Ford understands how important Social Media is to the success of the company! Scott also emphasized the importance of having a good product, listening to customers and providing them with necessary tools for engagement.

Great advice in my opinion and a success story that other brands should try to emulate.

In this excellent TED Talk, James Cameron describes his childhood fascination with the fantastic — from reading Sci-Fi to deep-sea diving, and how it contributed to success of his blockbuster hits “Aliens,” “The Terminator,” “Titanic” and “Avatar.” Also listen to him on why he made Titanic.

I like what he says about Curiosity, Imagination, Respect for team, Risk taking, Leap of faith and fear not being an option – rather than failure!

After listening to James Cameron, I was wondering if he directs Avatar like movie on Enterprise 2.0 technologies and Social CRM, how the story line might play out? What do you think? Please do share your comments on what the story line might look like …. let the imagination fly!

• When it comes to Social Media, CEOs and CMOs should lead from the front

• Dear CMOs, Wake up to Social Media challenge

• What is Social CRM and why it is important

• Why NOW is the time to invest in Social CRM

• 2010: Year of Social CRM

• Social CRM: Top priority for CMOs

But inspite of all the attention Social CRM has received in mainstream and social media, many companies are reluctant to invest in Social media initiatives and programs. This is confirmed by findings of a recent study by Burson-Marsteller titled Global Social Media Checkup. It was found that only 20% of those surveyed used all the four Social Media channels, namely Twitter, Facebook, Youtube and Blogs to engage their stakeholders. Social Media involvement of these companies can best be described as “minimal” (see following slideshare presentation for more). And if this is the level of involvement of companies on Fortune’s Global 100 list given all their resources and marketing budget, one can imagine the Social Media involvement of lesser known companies and those with smaller marketing spend!

It is high time for marketers to take a leap of faith and invest in Social CRM initiatives in order to engage customers through Social Media channels, because customers and potential customers are on social media channels discussing about products and brands – whether the marketer is represented in the discussion or not.

Moreover, according to a recent “The CMO Survey” from Duke University’s Fuqua School of Business and the American Marketing Association (AMA), marketers will devote nearly one-fifth of their marketing budgets to social media in the next five years (for more, see this link). Those marketers who take this leap of faith and move first in this direction will not only have first mover’s advantage, but will define standards, procedures and rules of the game.

NOW is the time for marketers to start Social Media initiatives for customer engagement and emerge as winners, rest will be laggards.

Dear CMOs, do you want to be a winner or laggard? The choice is yours!

In a recent study by comScore on social networking access via mobile browser, it was found that 30.8 percent of smartphone users accessed social networking sites via their mobile browser, up 8.3 points from 22.5 percent one year ago. Access to Facebook via mobile browser grew 112 percent in the past year, while Twitter experienced a 347-percent jump. This validates the fact that Social Networking is the most popular and fastest-growing behaviors on mobile Web (see this link).

This is a global phenomenon, not limited to “developed” markets in North America or Europe. According to a recent global survey by The Nielsen Company covering 15,000 consumers across 15 countries, two-thirds of mobile users around the globe are interested in “smart” services that would feed them information based on location and social settings (see this link).

Given this rapid expansion of Social Networking, Mobile Broadband Internet and Smart Phone technology, one really wonders what can we expect to see over the next few years?

To answer some of our questions, here is an excellent slideshare presentation on Mobile Trends for the next ten years compiled by Rudy De Waele , Co-Founder, dotopen.com

Please enjoy this presentation and do leave a comment on what you think will drive adoption of Social Networking technology through smart phones?

I like what Mark said about Social Networks – “If you are on Social Network, you are in the game of building Social Capital” – very true!

(See this video and for complete transcript of this interview, pls see this link).

And contrary to prevailing stereotypes, the average social gamer is a 43-year old woman – yes, you read that right 43-year old woman! (for more on survey results, see this link)

So with a fast growing affluent user base, what does it take to succeed in Social Games? Here is an excellent Panel Discussion on what issues leaders in this space grapple with on a daily basis?

Panelists are:

• Sebastien de Halleux – COO and Co-Founder, Playfish
• Mark Pincus – Co-Founder and CEO, Zynga
• John Pleasants – CEO, Playdom
• Jeremy Liew (Moderator) – Managing Director, Lightspeed Venture Partners

Social Media according to Chris Brogan:

• Lot of light as compared to heat
• Puts human face back on Business
• Big companies have a chance to feel small and human again
• Individuals have an opportunity to compete with bigger organizations like never before

• Johnson & Johnson (J&J) – Baby Center.com
• Procter & Gamble (P&G) – Home Made Simple
• Walmart’s Money Saving Tips on YouTube
• American Express Small Business Blog Network
• Geek Squad YouTube channel
• Charmin Enjoy the Go

This raises an important question: Should Marketers behave like Media companies when it comes to Social Media? If yes, what additional skills will be required by those in the marketing department for this new task. And what is the role of an “agency” in this new “set-up”?

In my opinion, marketers should take on additional responsibility of content creation with the help of agencies and professionals/SMEs in the area. Marketers should also provide necessary tools and platform for their customers to discuss about their brands, share content and exchange ideas. Agencies should use their expertise to help marketers connect with customers.

Listen to what Jonah Bloom, former Editor at Advertising Age, has to say on this subject:

What to you think? Should Marketers behave like Media companies when it comes to Social Media? Please share your views and opinion:

• 65.6% In House
• 15.6% Interactive Agency
• 9.4% PR Firm
• 9.4% Social Media Agency
• 0% Creative/Ad Agency

Why majority of respondents preferred In House Agency rather than entrusting the work to outside firms?

Answer lies in the fact that Social Media is still a very new subject and unexplored medium – constantly evolving. More importantly, Social Media/Interactive/PR/Creative/Ad agencies have not done a good job of defining their offerings and articulating them well to clients. And in absence of any well defined service offerings from agencies, clients prefer to do Social Media in-house.

What Can agencies do to remedy the situation?

• Come out with well defined service offerings
• Articulate their service offerings well to clients
• Offer a result oriented approach to induce clients to try out Social Media
• Hire best available talent who understand Social Media well and how to leverage it for Brand Promotion

Agencies will have to take a lead on this and guide their clients. Early birds will get the best returns! What do you think?

• John Chambers, Chairman and CEO, Cisco: “Social Networking is transforming companies. It is the future of Business Productivity, Health Care, Education and Entertainment.”
• Indra Nooyi, CEO, Pepsico: “Global company with global brands and reputation can use it as a force for good.”
• Jeffrey Joerres, President and CEO, Manpower: “When it comes to Social Networking, it is a major trend towards what will be a very standard everyday stuff.”

This very clearly highlights the fact that Social Media and Social Networking are not a fad, but for real, are here to stay and will become mainstream in near future. Social Business is not just another way of doing business, it is THE way business will be conducted.

I strongly recommend that all senior executives (and especially the CMOs) start taking Social Media initiatives seriously, and lead from the front when it comes to use of Social Media, as survival and growth of their business rests on how effectively they leverage emerging tech tools.

Social Networking has far reaching implications for the marketing department and I recommend that CMOs setup a Social Media Task force that will advise them on how to quickly adapt and integrate their marketing operations into emerging Social Networking tools and applications. Sooner marketing department(s) adopt and start using Social Networking for engaging their customers better for their brand(s), else performance of their business will suffer.

IBM is a great example of how companies should handle employees’ use of Social Media. IBM has approximately 400,000 employees spread through out the world, still it allows them to use Social Media without much restrictions. Casey Hibbard has written an excellent blog post on how IBM uses Social Media to spur employee innovation (see this link).

As per Casey’s post, IBM lets employees communicate with each other and the public over Social Media channels without intervention. This in spite of the fact that IBM has:

• A few thousand “IBMers” on Twitter
• Thousands of external bloggers,
• Almost 200,000 on LinkedIn
• 17,000 internal blogs
• 100,000 employees using internal blogs
• 53,000 members on SocialBlue (like Facebook for employees)
• As many as 500,000 participants in company crowd-sourcing “jams”
• 50,000 in alum networks on Facebook and LinkedIn

Watch this CNBC interview with Adam Christensen, IBM’s Social Media Communications Manager and John Abell, New York Bureau chief, Wired.com. According to Adam, IBM’s job is to help employees go out and have conversations that they want to, so that they can lead the business they are involved in. Not allowing employees to use Social Media is “short sighted” and companies will be “missing an opportunity”. (watch this video for more)

To succeed in this new age, it is important to embrace and adopt changes brought about by Social Media. And for that to happen, it is critical that organizations have proper guidelines for Social Media use by their employees. Employees should be allowed to use Social Media freely within those guidelines. (for IBM’s guidelines, see this link and for an excellent database of Social Media usage policies of 116 organizations, see this link).

I want to end this post by sharing a thought provoking video on how the workforce is changing in Social Media Age. Please watch this video and let me know if companies should restrict employees’ Social Media use.

Social CRM is the business strategy of engaging customers through Social Media with goal of building trust and brand loyalty. Loyalty is defined as attitude towards a brand that inclines a customer to repurchase it and/or recommend it to others.

Social CRM and Social Media are more about building trust and managing loyalty with customers than about managing relationships or transactions, which are focus areas of “traditional” CRM.

Hope this answers the question. If not, please feel free to leave a comment:

Social Networking sites like Twitter were abuzz with tweets about President’s speech. See this video for an excellent analysis of tweets about State of the Union address. It underscores the importance of Social Media in reporting news in real-time with Geo-location.

* Only 2 CEOs have twitter account
* Mere 13 have LinkedIn profile
* 81% do not have a Facebook page
* Only 2 Fortune 100 CEOs have more than 10 friends on Facebook
* Not one Fortune 100 CEO has a blog

Shouldn’t CEOs leverage growing reach and effectiveness of Social Media channels to reach out to their Customers, Employees and other stake holders?

In my opinion, they should. Of course, they need to be careful in what they write on their Facebook page or on Twitter. But they SHOULD use social media channels with necessary inputs from their PR, Media Relations and Legal departments. Social Media is all about bringing the “human touch” and CEOs being public face of corporations can use Twitter very effectively for this. For example, CEOs can tweet about what their company has done to help those affected by recent earthquake in Haiti. This can help generate a lot of goodwill for their corporate brand.

Watch this excellent CNN video interview with Pete Cashmore of Mashable.com and Sarah Milstein

Zappos CEO is quoted as saying “if you don’t trust your employees to tweet freely, it’s an employee or leadership issue, not an employee Twitter policy issue”.

So true! Hope more CEOs and senior executives start actively using Social Media channels like Facebook and Twitter and allow their employees to do the same in a constructive way that will benefit everyone!

What do you think? Should CEOs and other senior executives use Twitter and Facebook? And should they allow employees in their company to use Social Media freely?

This is a great talk by Erik on why Social Media is one of the greatest shift since industrial revolution and what successful people and companies are doing in this space. Watch the video:

This study confirms the phenomenal growth in Social Media usage, not only in terms of number of users, but average amount of time spent by each user on social networking sites. There is a unique opportunity for marketers to leverage emerging media for Social CRM, which can be defined as business strategy of engaging customers through Social Media for building trust and brand loyalty.

But in spite of this clear opportunity, marketers have not allocated time or resources for engaging customers over Social Media channels. According to a survey of 124 chief marketing officers by The CMO Club and Hill & Knowlton, more than four out of five (84 percent) chief marketing officers (CMOs) allocate less than ten percent of their budgets to experimenting through social media and non-traditional communications channels, with more than half (55 percent) allocating just five percent or less. To the question “Does your brand have a web 2.0 communications policy?” almost half said either they don’t have or are currently developing one. Only 14% CMOs said that they were “proactive” about creating external brand advocates and leveraging them (detailed findings of the survey here).

In another study by Weber Shandwick for evaluating how effectively Fortune 100 companies used Twitter to its full potential as an engagement platform, it was found that “for the majority of Fortune 100 companies, Twitter remains a missed opportunity. Many of their Twitter accounts did not appear to listen to or engage with their readers, instead offering a one-way broadcast of press releases, company blog posts and event information. This falls short of the opportunity that Twitter offers as a valuable communications channel and strategic social network.”

Results of a study by Burson-Marsteller on Fortune 100′s use of key Social Media Tools and another study on use of Social Media tools by CEOs of Fortune 100 companies are equally disappointing.

Findings of studies referred above clearly indicate that even large companies don’t get it when it comes to Social Media. Marketers are not having their eyes and ears on Social Media channels that are going to drive their business going forward.

It is very important that all senior executives (and especially the CMOs) start taking Social Media initiatives seriously. They should lead from the front when it comes to use of Social Media, as survival and growth of their business rests on how effectively they leverage emerging tech tools. As a first step in this direction, I strongly recommend that CMOs should:

• Have a Twitter account and start using it for communicating with customers and general public
• Monitor discussion regarding their company or brands on Social Media channels and if there are any legitimate issues, take it up with respective execs and make sure that they are resolved
• Should use feedback gained from Social Media channels and ask right questions during review meetings. This will send out clear message down the chain that senior execs are listening to customers on Social Media and line managers or customer support staff will be more responsive to handling customer issues via Social channels.
• Set up a Social Media Task force that will advise them on how to quickly adapt and integrate their marketing operations into emerging Social web applications

These are some of the Must Do items that every CMO should tackle right away. Sooner they adopt and start using Social Media for engaging their customers better for them, else performance of their business will suffer.

Dear CMOs, the choice is yours!

Well, listen to what he says about why he uses Twitter (@JeffreyHayzlett) and how Kodak’s management reacts to his use.

In my opinion, Jeff is a great role model for other CMOs to emulate on how to use Social Media. Dear CMOs, are you listening?

So the question here is who defines these “Social Norms”? As large corporations like Google and Facebook start monetizing vast amount of information they have about users and their interaction with family and friends, who decides what is “fair” and what is not?

In a rapidly evolving field such as Social Networking, where there are no set standards or benchmarks, self-regulation is the best regulation. Trust being such an important factor in Social Networking, Facebook and Twitter would do well to maintain the “trust” their users have in them and not give in to short term commercial gains. Those who prove themselves to be “trust-worthy” and act in the best long-term interest of their users will emerge as leaders in Social Networking space.

Panelist include:

• Jamie Daves, Venture Partner at City Light Capital
• Tom Arrix, Vice President of Sales at Facebook
• Peter Land, Senior Vice President of PepsiCo
• Joe Marchese, Co-founder and President of SocialVibe
• Seth Sternberg, CEO and co-founder of Meebo

Some key points of discussion are:

1. Pepsico marketing in Social Media
2. New Era in Media Advertising
3. Advertisers utilizing Facebook user experience
4. Monetization models and revenue streams
5. Monetization from communities, not brands
6. Evolution of Social game experience
7. User experience: International Vs. Domestic

• Scale of Asia: China, India, Japan, Indonesia, Korea – to name just a few countries.
• Diversity: Culture and Languages
• Usage of Internet: Access to Social Networking sites via Mobile devices, not a PC
• Monetization models

Watch this excellent video interview with Thomas Crampton, Asia-Pacific Director, Digital Influence at Ogilvy Public Relations Worldwide, followed by a Slideshare presentation by him.

Very relevant given the fact that many organizations are grappling with this issue currently. I think best way for organizations to deal with this issue is to educate employees about Do’s and Don’ts, have a “reasonable” Social Media usage guidelines and above all, have Trust and Confidence in employees to do the right thing.

(Click Play for slide show to play with presentation audio)

I guess competition will be much tougher in 2010 as many more companies will be on Facebook and with rapid increase in number of Facebook users.

So what is Social CRM and why those in Social Media and CRM talk passionately about it.

What is Social CRM and why it is important:

Social Networking sites have seen a phenomenal growth in number of users in the last one year. Brian Solis has estimated that for August 2009, Facebook recorded 110 M unique visitors from US and 370 M globally. Similarly, Twitter registered 24 M unique visitors from US and 66 M worldwide.

This offers a unique opportunity to marketers for engaging their customers through Social media channels. Social CRM is the business strategy of engaging customers through Social Media for building trust and brand loyalty. Research has shown strong evidence that Social Media Engagement correlates to Financial Performance (see report on world’s most valuable brands – Who’s most engaged?). According to this study “Engagement via social media IS important — and we CAN quantify it. There is statistically significant correlation between social media engagement and the two most meaningful financial performance metrics – revenue and profit”. This study further emphasizes quality of customer engagement through social media by concluding:

• It pays to engage meaningfully in social media. Emphasize quality, not just quantity.

• Engagement is more than just setting up a blog or Facebook profile and letting viewers post comments, it’s keeping your content fresh and replying to comments; it’s building your friends network and updating your profile status.

• Engagement can’t be skin-deep, nor is it a campaign that can be turned on and off. True engagement means full engagement in the channels where you choose to invest.

• To scale engagement, make social media part of everyone’s job. You must do something, else risk falling far behind other brands, not only in your industry, but across your customers’ general online experience.

This clearly illustrates importance of Social CRM – engaging customers via Social Media for building trust and loyalty towards the brand.

Why NOW is the time to invest in Social CRM:

There has been lot of discussion on whether Social Media revolution is for real or is it some passing fad that will die down eventually. Well, those who have any doubt should read findings of a recent survey by Forrester. In this survey of 204 marketing executives across industries, it was found that recession is accelerating shift to interactive, mobile and social media.

Marketers were most optimistic about social media, online video, SEO, mobile, paid placement in social media, email and paid search, in descending order. Near the bottom were outdoor, telemarketing, radio and newspapers. As per Forrester’s Interactive Marketing forecast, Interactive marketing will approach $55 billion in marketing spend in 2014 benefiting from search, social media and mobile marketing.

It is important to note that in the past two years, time spent by consumers online has grown from 29% to 34%, but advertisers spend only 12% of their budget on Internet marketing. Forrester predicts that by 2014, spend will increase to 21% of budget. Forrester further predicts that both social and mobile will have the biggest compound annual growth rate (CAGR) — 34% and 27%, respectively through 2014.

So, there you have it! Consumers are spending more time online, interacting with their friends and contacts through Social Networks. TV and Print Media have seen their Viewership/Readership fall significantly. This is the right time to allocate (or should I say “shift”) resources for investment from “traditional” media to “new” media and engage customers through Social Media for building trust and loyalty.

Goodbye 2009

And an inspiring video to Welcome 2010

We are going to see more cases of break-up of relationship due to improper communication on Social Media channels,  not only among family members but in work setting as well (employee-employer relationship for example).

This will result in calls for more privacy on Social Networking sites. Facebook and Twitter will have to respond to their users’ need for privacy by enabling suitable privacy filters.

Panel 1: On Social and Technological Innovation being brought about by Social Media:

Panel 2: Implications of Social Media to business:

What is the secret of Dell’s Social Media Success? Watch this excellent interview with Richard Binhammer, Senior Manager, Corporate Affairs at Dell to know more about Dell’s Social Media strategy: