Monday, May 7, 2012
Only 50% of Fortune 1000 Organizations Will Get a Worthwhile Return From Their Social CRM Initiatives by the End of 2012
Although the adoption of social applications by sales, marketing and customer service departments continues to grow rapidly, Gartner, Inc. said that, by the end of 2012, only 50 percent of Fortune 1000 companies will receive a worthwhile return on investment (ROI) from their social customer relationship management (CRM) initiatives.
During the next two years, the success of social CRM will depend on how well companies and social CRM technology providers can make social CRM projects more than just social objectives by tying them to clear and measurable business objectives. Gartner predicts that by the end of 2012 three-quarters of new social CRM initiatives that receive funding will have a business case incorporating measurable ROI.
Many organizations have established a form of social presence. However, many also lack a clear business performance objective for social CRM, being at early stage in their measurement of its business outcomes.
Gartner analysts said they expect the worldwide market for social CRM software licenses and subscriptions to total $2.1 billion in 2012, up from 850 million in 2011, and that social CRM revenue will represent 10% of the overall CRM market.
Initially, social CRM was mostly a concern of marketing, but it now affects every discipline, from marketing and sales to customer service and support. Social CRM is increasingly important to lead generation and cross-selling and up-selling capabilities, and to other functions that are key to successful sales organizations. Gartner said that business-to-business applications for sales use will have the fastest growth and will account for 30 percent of social CRM spending by 2015, up from 5 percent in 2011.
Today, social CRM vendors differentiate themselves on the basis of functions, analytics, ease of use and superior experience delivered through professional services. Over time, however, they will find it harder to gain an advantage by providing unique core functions. They will need to show quantified business cases and, more importantly, deliver repeatable social CRM processes that are not yet broadly available.
More information on CRM and social media can be found at www.CRMindustry.com
Tuesday, May 1, 2012
Sword Ciboodle, a provider of customer solutions, and customer experience advisory thinkJar, released the results of a research survey targeting US and UK companies with medium- to large-sized contact centers on their use of social media specifically for customer service. With nearly 400 responses from around the globe, and representation from more than 10 industry verticals, the research helped to reveal insights into how organizations are leveraging social channels for customer service. The analysis covers topics such as the longevity and maturity of the social customer service practice, the integration of social channels with traditional channels, and the decision and selection criteria used to determine social customer service programs.Survey results indicated that social channels have been strongly embraced, with 59 percent of organizations having adopted Twitter and 60% adopting Facebook, and almost 85 percent of those who have adopted one, have adopted both together. However, while social channels are widely used, participants showed that justification and validation of social customer service is proving to be a challenge. There are a variety of differences in how social channels are used, and factors such as an organization's size, industry and geography also play an important role. Integration of data, as well as finding the right balance between social customer service and more "traditional" channels, is an important part of what companies are wrestling with.
The size of the company is an additional factor in the maturity of its social customer program. For example, 40 percent of respondents in companies with 1000 or more contact center agents say that their social customer service initiatives have been in place for at least two years. In contrast, 53 percent of companies with smaller contact centers say that current programs were implemented within the past year to two years. The reasons behind the move of all companies, regardless of size, to social customer service is customer driven, with 56 percent of respondents implementing social customer service due to customer request, compared with 40 percent that put the programs in place to keep up with competitors.
More information on customer service and social media can be found at www.CRMindustry.com