Social Media Strategy, Social CRM

Moving From Back Pats to Business, Social CRM Is For Real

badge jay says Moving From Back Pats to Business, Social CRM Is For RealAs marketers try to determine appropriate resourcing, one of the big measurement and accountability challenges faced by social media is the anonymity inherent in most social data. Indeed, smart companies track social media’s impact on desirable behaviors such as lead generation, repeat website visits, and even corollation-derived ROI. But in almost every case, the evidence that social media “works” is based on aggregate, anonymous data. But by blending together social media listening and engagement software with customer relationship management (CRM) platforms, the promise and premise of social CRM is finally becoming a reality, 2-3 years after we started to trumpet it (more optimistically than realistically at first).

Social CRM is For Real 300x216 Moving From Back Pats to Business, Social CRM Is For RealDo you think Salesforce.com and Oracle spent more than 1.5 BILLION dollars on Radian6, Buddy Media, Vitrue, and Collective Intellect because they thought they could be the long-term kings of custom Facebook tab deployment? No. That business model has the sustainability of an ice cream cone in July. All Facebook has to do is roll out their own tab builder, and it’s curtains. Instead, the software titans bought the ability to combine social behavior with their existing database and CRM suites to create a true end-to-end social CRM solution.

A Magnifying Glass for Social Media Behavior

This is of course a powerful opportunity for business, as the ability to peer into the social media behaviors of individual customers and prospects across platforms and over the long term should enable companies to deliver more relevant, impactful social interactions. But, the companion to true social CRM may be social marketing automation, as predicted by Jeremiah Owyang in a recent article on TechCrunch. That will make the category a lot more about the media than it is about the social, and while the operating efficiencies of robotic social are intriguing, the lack of humanity is inherently unsocial. That’s a discussion for another day, however.

The New Social CRM Big Three

What troubles me about social CRM right now is that merger mania is congealing and coalescing social marketing into a few large platforms. It’s a competitive landscape reminiscent of television circa 1985, if you replace the Big Three of CBS, NBC, ABC with the Social Big Three of Salesforce, Oracle, and Adobe. For enterprise companies, this is probably good news, as using a single large technology platform for all CRM planks (including social) will reduce complexity and potential points of failure. But what of the mid-market? Not every company wants or needs a comprehensive, enterprise-class technology platform. If you don’t want to eat as much sandwich as the Social Big Three wants to offer, what then?

Most software companies want to sell to the enterprise market because the average price tag and reduced number of total customers to support is an efficient way to generate revenue, even though there are fewer than 10,000 total companies in the U.S. with 1,000 or more employees. Yet, nearly every social media marketing software company is trying to move up the ladder and sell to the big guys.

Alternatively, you have companies that target the other side of equation, hoping to gain a low cost, low margin foothold in the huge (more than 5 million U.S. companies) small business market.

Number of US Companies by Employee Count 2008 Moving From Back Pats to Business, Social CRM Is For Real

U.S. Census 2008 Number of Companies by Employee Count

Mid-Market Social CRM and the Goldilocks Syndrome

The mid-market is tougher sledding, and is often ignored. The numbers are there, as there are some 27,000 companies in the U.S. with 500-1000 employees, and 117,000 with 100-1000 employees. But software targeted at the mid-market often takes longer to gain traction, as prospective customers try enterprise and/or small business oriented alternatives first, before realizing that the former is too expensive or complex, and the latter lacks key features. It’s the Goldilocks Syndrome. Companies need to experience the shortcomings of their first choice before realizing that the mid-market focused option is just right. (The same thing happens in consulting).

Two New Social CRM Options for Mid-Sized Companies

ArgyleSocialAPI 300x250 Moving From Back Pats to Business, Social CRM Is For Real

Roll Your Own Social CRM with Argyle Social API

Last week was a big one for the mid-market alternatives to the Social Big Three, with two huge announcements that ensure that social CRM won’t strictly be a plaything of enterprise corporations.

Argyle Social (sponsors of this blog and the Social Pros podcast, and what I personally use for social communication) launched their Social API. It allows companies (targeted at mid-market) to connect rich and specific social behavior information at the prospect level with third-party databases (a Salesforce integration is available now) to create a robust yet affordable “roll your own” social CRM system. It tracks content and click behaviors across the social Web, and ties them into website behaviors such as visits to key pages and downloads, and synchs it with your database records. So, your sales and marketing teams can know that Bill Johnson clicked this tweet, and that tweet, and that other Facebook status update, and then went to the site three times, and then downloaded the white paper, etc. Powerful information that will increase sales conversion rates.

This new ability to understand behavior at the individual customer level can change the very nature of the social marketer’s job. Argyle Social calls this the difference between being an Oceanographer, scanning the waves for patterns; and a Fisherman, baiting the hook to reel in a specific catch.

It’s an interesting concept, and you should check out their new whitepaper, If You Teach a Community Manager to Fish.

Social Marketing Automation Argyle Social Moving From Back Pats to Business, Social CRM Is For RealIn other mid-market social CRM news, Hubspot and Hootsuite announced an integration that combines Hootsuite’s social behavior data (historically a favorite of small business) with Hubspot’s robust database capabilities. This is definitely a 1+1=3 equation for current customers of Hubspot, as broad social behavior tracking has been the one shortcoming in what is otherwise a very solid package – especially for content marketing devotees. The companies are calling this new partnership Closed Loop Social, with an emphasis on using social in addition to or in lieu of email within the sales funnel.  Sounds about right to me. It’s currently in closed beta. Visit this application form to request participation.

True social integration is no longer in the leprechaun and unicorn category. It exists. It’s doable. You can do more with your social marketing than just calculate retweets and YouTube views. Certainly for big companies, there are several outstanding options on the way from the Social Big Three once they digest their new acquisitions (and watch for more on the way). For the mid-market, however, you can start adding CRM to your social immediately using the Argyle Social API or (soon) the Hubspot/Hootsuite combination. It’s an exciting time in social marketing, as we’re moving from back pats to business. Are you ready?

small horizontal Moving From Back Pats to Business, Social CRM Is For Real

Related
  • nrobins1

    With this type of integration, the main priorities for me (and maybe other marketers) are:
     
    How does this allow me to better segment my customers with my CRM?
     
    Does this finally allow me to more accurately measure social’s impact on costs, revenue, loyalty, and all the other biz metrics? I would love to isolate the instances where social had a touch/touches and where it did not. 

    • http://www.convinceandconvert.com JayBaer

       @nrobins1 Exactly. That’s what you can do. Powerful stuff. 

  • charlenemcm

    Jay, Would you include Infusionsoft in the mix with Hubspot and Argyle Social?

    • http://www.convinceandconvert.com JayBaer

       @charlenemcm We use Infusionsoft here at C&C, and they are a terrific sponsor for us too. Today, they don’t have the social media capabilities that Argyle, Hootsuite, et al possess, but I know they’re working on it. 

  • jaybaer

    @markwschaefer Thanks Mark. Very kind of you.

    • markwschaefer

      @jaybaer Thou rocketh.

  • http://www.sightsee.com.au/ AprilTharp

    Based on the data and figure you have shown. I think that this field is really getting great fruits. I just hope many would open their eyes to these things.

  • http://evalperiod.com/ Jarrett OBrien

    Thanks for putting this out there @JayBaer.  The challenge has always been the anonymity and fluidity of social versus the structure of CRM.  The “roll your own” social CRM is also a very interesting approach given the fact that many OOTB mid market CRM’s lack robust tools.

  • ericbuchegger

    Good read – Moving From Back Pats to Business, Social CRM Is For Real – Convince & Convert http://t.co/cFfSb3yn (via @pgladney)

  • eernoult

    That is an AWESOME article Jay, probably my favorite subject! From the feedback I get from the market, I feel that we are still in the very early days of that all social CRM thing, but it’s exciting to witness its debut!

  • http://rangishri.blogspot.com/ rangis

    Nice post! It’s good to see that social CRM is on a fast track to becoming mainstream across all market tiers. In my view, the next phase in this space will be around gathering intelligence on the prospects we *don’t yet know*. Companies like @Leadspace and Mintigo went out to market with tools that analyze social media and web presence at an individual level. Add this type of technology into the mix, and you have a true 360 degree view into your addressable market – the people who already are in your database as well as those who are not. This is bound to take targeted marketing and selling to a new level.

  • http://www.agilecrm.com/ Sandhya Ramesh

    This is a great article, Jay. There are not a lot of them out there yet, but I expect big names to catch up and a lot of small names to crop up in the next couple of years. I want to throw Agile CRM in the mix. There’s a lot going on with it – a mixture of CRM, marketing automation, and social suite with analytics – and everything integrates quite seamlessly. Social media is integrated into the CRM as well as marketing automation. I do think social marketing is very important these days as well.