How to Measure the Impact of Social CRM - dummies

How to Measure the Impact of Social CRM

By Kyle Lacy, Stephanie Diamond, Jon Ferrara

Anyone who takes on a new business venture , Social CRM, or investment wants to know how to measure success. Social CRM requires patience, with a focus on long-term goals and benefits. There are many benefits to be realized within the social business model — more deeply engaged customers, brand ambassadors, a wider understanding of customers and their motivators, and so on.

For actual measurement, you turn to the abundance of information and data that accompanies the swiftly growing and ever-changing technologies integrated into our daily lives. Knowledge-sharing through a multitude of social networking platforms increases our customers’ impact on our business practices.

Measuring the success of all this data and knowledge collection can prove challenging for any business, especially if the organization still holds onto the idea of old metrics for success. Social CRM success metrics need to be examined under a different lens, not the lens of CRM 1.0. Conversely, limiting social measurements only to information sharing or anecdotal engagement may miss the mark as well.

CRM 2.0 is just another way of saying social CRM. It’s what CRM has evolved into with the proliferation of customer-driven social channels. The technology piece of social CRM focuses on centralizing all the extensive data generated in social media and turning it into efficient solutions to be used across your entire organization.

When your business implements a new social business model supported by social CRM software, you first determine the business-critical goals. These goals will guide the internal roles and infrastructure necessary to launch the cultural shift.

Take some time to determine what you want out of social CRM, generally, and how you can translate those desires into measurable goals:

  • Improve customer service. You might accomplish this by shortening your response time to within a certain number of hours.

  • Improve social reach. Consider setting a goal of adding a certain percentage of fans to your social networks within a specific time period.

  • Gain brand awareness. Tweak your content and strategy to reach a goal of receiving a set number of shares of your content within a month.

  • Grow sales. Set up a system that can track sales associated with social media, and establish a goal to reach a certain percentage of those types of sales each month.

Track and measure your success and work toward your goals. Social CRM monitoring platforms can tell you how long your current response time is, as well as track the growth of your accounts and your reach. To track sales or leads, create dedicated e-mail addresses or landing pages for social media, as well as tracking clicks.