Social CRM - Innovations and Myths

Posted on 17 March, 2016

A survey peeping into the mind of the consumer today tells the very basic human criteria of a circle of trust, explaining that one is more likely to trust and rely on the advice of friends and family – essentially a more trusted network of customers than a marketing message that a corporate executive messages or mails. The rise of social media and channels has seen the conversation about a company or brand shift from a consumer–company conversation to a customer–customer–company conversation, all of which is taking place in the open. Social media has reinvented the traditional marketing funnel from a controlled ‘push’ message driven by companies, their marketing departments, managers (brand) and creative agencies to a more ‘real’ dialogue among customers or prospects in all the stages of influence.

Total amount of users on social networks are as under :

  • Facebook 1550 Million
  • Instagram 400 Million
  • Twitter 316 million
  • Pinterest 396 million

What is Social CRM?

Social CRM is changing the scale and perspective of brand involvement in social media. What was once a Communications department issue is now becoming an organizational challenge for any company that claims to be “customer-centric”. Social CRM is the connection between social media and a company’s internal and external communication systems. Social CRM is much more than having presence on Social Networks. The question for companies is no longer whether to engage with social media, but rather how to engage with it. Companies that have already started implementing Social CRM strategies rapidly see the impact on their internal processes. Social CRM aims to solve the fundamental dilemma of how to make human-scale marketing “scalable”.

Though there is no specific definition of Social CRM because social CRM is different to different businesses, but the definition given by Paul Greenberg, who is considered as the godfather of CRM describes the phenomena of Social CRM as: ‘A philosophy and a business strategy, supported by a technology platform, business rules, workflow, process, and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent business environment. Social CRM is the company’s response to customer’s ownership of the conversation.

Uses of Social CRM by Businesses

Innovations in Social CRM

Best Buy is the first brand which comes to the mind to Social CRM enthusiast when asked about innovation in Social CRM. Best buy is one of the leading electronic retailers who had early steps on Social CRM. Team of best buy covered every corner of social media to answer to their customers. This was one of the innovation in 2008 when the power of Social CRM was not realized. This move towards social CRM helped Best Buy drive $5 Million Benefit. Dell is also one of the prominent examples which uses advanced social media listening, analyzing and tracking tools to handle the social customers. Bank of America has also opened up its CRM and accepted Social CRM and started handling customer complaints on social media.

But these are all the well-known cases on Social CRM and many case studies have been made on them. Now here are cases of 2 companies which took Social CRM to a whole new level in 2015.

  • Xolo India

Xolo is an Indian mobile device manufacturing company who is facing a major setback because of the poor customer care service. Posts of poor customer care service are everywhere on social media and xolo has been answering to all of their questions. So to overcome this problem of customer service they started Customer service saturdays with #servicesaturdays.

This was an innovative move from Xolo to solve their customer service problem and also to get more engagement from their customers. It is noteworthy that this post on Saturdays attracted 1000 engagements and solved 100+ customer complaints. They also had a tech Wednesday posts where they used to answer all the technical questions of the customers. Xolo has been an active player on social media with an excellent Social CRM strategy keeping customers engaged by posting various contests.

  • GiffGaff

Giffgaff is a European wireless provider with an innovative service model. They actually don't have a traditional Call Center, all inquiries are managed via their online community. Customers helping other customers are rewarded with airtime credits. This is resulting in noteworthy response metrics and award winning service. (Not to mention significant cost reduction.)

Another excellent example which has focused on innovation in social CRM is European wireless provider GiffGaff. They don't have a traditional Call Center in their CRM, all inquiries are managed via their online community where a customer helps out other customer. A customer who helps other customer gets rewards in form of Air Time credits, which makes the community highly engaged it results in noteworthy response metrics and award winning service. This is a masterpiece of using user generated content for Social CRM.

Availability of advanced tools and Increasing Spend on Social CRM

With rapid advancements in technology, it is possible to make the Social CRM steps simple. It was difficult when the term was first coined in 2011. Now, in 2016, there are various tools available which are backed by powerful technologies to automate the process of Social CRM. 

Features of Social CRM tools

  • Enhanced customer profiles
  • Social listening
  • Sentiment Analysis
  • Social selling
  • Social marketing

Uses of Social CRM tools

  • Gain better knowledge of customers and prospects
  • Create value-added customer engagement
  • Form new relationships, retain old ones
  • Monitor and improve brand reputation

More and more companies are realizing the power of Social CRM and are planning to double their investment on Social CRM. Some firms have predicted the overall market will be worth as much as $9 billion by 2018.

Social CRM- Myths


  • Social CRM is the answer to changing consumer behavior 
  • Advanced tools with customer data that can be increasingly exploited 
  • 40% increase in market value compared with 2010 and more than 20% extra in 2012 (Gartner) 
  • 40% rise in budget spending 


  • These social media are not the only scope for action 
  • First prioritize Social CRM integration on the corporate site of the company 
  • “Fish where the fish are”: casting a wider net on social media, where most of the brand consumers are brought together 


  • It impacts on all departments of a company 
  • Priority departments at present: Marketing, Sales and Customer Services 
  • Once a certain level of maturity has been reached there is internal collaboration and co-creation


The world is changing, when you think that you have got the most things covered up, it is time for change. More and more usage of social media by ‘Social Customers’ makes it difficult for companies to cater customers on each and every platform but the advancement in technologies is helping companies tackling that change. We have clearly explained why Social CRM is an imperative for today and no business can ignore it, in fact Social CRM brings prosperity to the business by. Social CRM innovates the traditional CRM by enhancing the existing processes and keeping the customer at the core of all actions. It has opened up new channels of engaging with customers and providing a superior customer experience. These channels also provide an opportunity for increased collaboration amongst peers and a window to include customers in product innovations.

At last, if social CRM has to be summed up in a line, it can be said that “It’s about tapping the ideas and knowledge of people at a far greater scale than your own workforce.”

Shetul Majithiya , Senior Digital Marketing Executive


About Emipro

Being an emerging leader in IT market since 2011, Emipro Technologies Pvt. Ltd. has been providing a wide range of business solutions in Odoo & Magento. We are pleased to have a large pool of contented customers with our meticulous work in the domain of ERP & e-Commerce. Our customers are companies of all sizes ranging from startups to large enterprises who realize that they need a professional internet solution to generate revenue streams, establish proper communication channels, to achieve desired goals and streamline business operations. [....] Read More

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