Posts Tagged ‘Corporate social CRM’

This blog enables me to share and explore social media as a Customer Relationship Management tool in building and sustaining corporate credibility.

Corporate credibility as an aspect of corporate reputation refers to the perception that stakeholders have of the company’s honesty, expertise and trustworthiness. It reveals whether the company can be relied upon to do what it says it will do and whether it backs up its corporate communication with actions in line with its promises.

Corporate credibility is important as it affects stakeholder attitude towards the company and towards the company’s marketing, branding and communication strategies. High credibility leads customers to form positive attitudes and positive purchase intentions towards the company. As a result high credibility enhances customer loyalty, market share, brand equity and profit.

For a company to achieve its financial goals, it will need to develop trust and credibility through customer centric strategies. Such customer centric strategies necessitate being able to gather information as much as possible about customer perceptions and their attitudes towards the company and its products, and also being able to listen to customers. This can best be done through a collaborative dialogue strategy of communication, a two-way symmetrical model. Engaging positively with customers and listening to them enhances customer loyalty and the data gained as a result can help to further improve services.

An effective Customer Relationship Management (CRM) system can achieve this and can help identify areas for improvement in order to raise performance.

Traditional CRM vs Social CRM
Traditional CRM involves managing the relationship with the customer for the benefit of the company. It is a marketing tool with a focus to selling to customers and it is therefore the company that initiates and controls the communication while the customer is mostly passive.

Social CRM on the other hand creates an avenue to engage and collaborate with the customer on social media sites such as Twitter, Facebook and YouTube. The customer does not play a passive role but the emphasis is on community and relationship building to improve customer experience with the company’s products and services. It is a less formal form of conversation and communication could be customer to customer or business to customer.

Social CRM can create an avenue to listen to the concerns, needs and preferences of the customer in a customer centric strategy that enhances corporate credibility and therefore brand equity and revenue. The FedEX story on GannetLocal blog illustrates this. 

One of those companies that have harnessed the power of social media to enhance credibility through Social CRM and have experienced financial growth as a result is Dell.

Linksys, Chordiant and Enterasys Networks are other examples of successful Social CRM to enhance corporate credibility.

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