The Benefits & Risks of Social CRM

Even though social media are now as common as other communication channels, they play a different role:

• They allow companies to initiate relationships with people who are otherwise inaccessible (those who don't pay attention to conventional mass media and bulk emails)
• Social media provides an opportunity to deepen customer relationships through one-on-one interactions, while at the same time letting observers see how a company treats its customers
• Social media allow consumers to share their own experiences with a company, providing a more credible source of information than the company itself

Unfortunately, these benefits are accompanied by risks:

• Poorly executed communications can annoy potential customers, driving them away
• Public visibility of formerly private transactions can reveal problems with products and poor customer service
• Consumer reviews can be negative as well as positive, and even enthusiastic advocates can provide incorrect information about products or pricing
   

What does this list of benefits & risks mean?

It means that no company today can afford a hands-off attitude towards social media management.  Prospects and customers will be discussing you in social media at every stage in the marketing, sales and service process, so the only choice you face is whether you’ll be aware of that conversation and try to shape it, or will ignore it and let it be shaped by others. 

Are you dedicating enough time to social media management? Do you have additional benefits and/or risks of social CRM to add?

Interested in learning more about Social Customer Relationship Management (CRM)? Click here to download our Social CRM How-to-Guide