SAP Social Software

3 Posts authored by: Sven Denecken

Blog 4: Why Social Relationship Management is more than just a CRM topic

Major elections in global economic powerhouses including the US and Germany are marking the news right now. As a result of the ever increasing attempt of candidates to win hearts (votes) and funding for their campaigns, Social Media in turn is experiencing another big boost. After all, being close to voters is as “en vogue” for politicians as it is for companies to be close to their customers – also known as customer-centricity.

And with Facebook breaking the 1 billion user mark, there are some significant social relationships that can be established or managed on social networks. Established or managed? What is the difference and why should we care? Actually, there is a big difference.  The context of the interaction is extremely important.  This is where Social CRM provides help. Are we dealing with a customer or is this a prospect? In fact, last week’s CRM Expo event in Germany was a perfect showcase for the proliferation of Social CRM – well I’d even say for Social Computing at large. Yes, it’s probably a fair statement that Social Computing is one of Silicon Valley’s most hyped topics currently.  Nonetheless, there’s tremendous innovation happening: in Consumer as well as Enterprise IT. Let’s quickly point at some significant developments we are observing at the intersection of both IT worlds.

Given the relevancy of Social Media for customer-centric processes, it is not surprising to see CRM being one of the key Enterprise Application areas that strongly buys into the concept of Social. Social Media has certainly reached mainstream adoption in many parts of the world and with it companies have become increasingly open to Social Media activities. This has, however, opened the door for new operational challenges. Companies are now interested in monitoring and analyzing such activities (e.g., via SAP Social Media Analytics by Netbase).  They are also interested in integrating social customer data back into their CRM systems to allow for a 360 degree view of their customers (e.g., via SAP Customer OnDemand). Lastly, they want to directly engage with the customer (e.g., via SAP Social Customer Engagement OnDemand).

As mentioned, this is what customer-centric companies are fostering – being close to customers which also requires direct engagement. Software vendors and consulting service providers alike are now helping (B2C and increasingly also B2B) companies to manage such operational Social Media challenges. However, true productivity will only result from context-rich interactions. This is because high quality engagements require the right context.

It must be clear what we are trying to achieve and who is it that we are dealing with. This concept is not only applicable to Social CRM but to social activities at large, such as HR, R&D or supplier activities. Therefore, Social Computing also reflects the ability to foster collaboration at large – internally and/or externally.

Consequently, the term “Social biz” not only addresses our company’s mindset towards social media and dialogue marketing, but also our openness and IT capabilities around social collaboration technologies. SAP social software offerings provide such cross-enterprise social platform capabilities so we can collaborate as a team, as a division or as a company with our customers and partners. Check out the blog by Esteban Kolsky (@ekolsky).

One potential starting point is to contact the Co-Innovation team at SAP. We hope you’re enjoying the blog series: “march to Madrid”.

See you next week at SAPPhire NOW!  Please let us know your thoughts and Social Computing activities or ideas.

 

Niclas Otte (@ottenic) and Sven Denecken (@SDenecken)

Blog 1: The Social Voice – How fine-tuned is your radar?

“If you’re happy, spread the word. If you’re dissatisfied, please let us know.”

This phrase and related approaches to managing customer relationships have always played a key role in business. In fact, it’s probably more crucial than ever to be customer-centric and to implement the right mindset and tools within your organization in order to succeed in today’s multi-channel world, in which consumers have learned to tune out the constant bombardment of advertising, while having access to more feedback channels than ever before in our history.

Not surprisingly, customers now increasingly prefer the judgment of other consumers.  It is the Internet that has become the ideal place for people to turn to when they want access to the praises or criticisms of other customers that will likely play a large part in their decision.

Most businesses are aware of this growing trend – especially in B2C of course – and many companies are looking at what customers are saying about them on major review sites. After all, these reviews, positive or negative, are likely the first thing people look for when making a purchase decision and are in turn valuable elements for companies turning potential customers into real customers. Thanks to the rise of online reviews and Social Networks, implementing Social CRM strategies become increasingly important these days – if not even elementary.

In fact, some businesses are spending a lot of energy on tracking reviews, but due to the storm of related consumer websites and social networks most companies are struggling to keep track and filter the truly important reviews.

SAP offers holistic solutions for companies that are getting serious about Social Media.

Please check out our overview video here.

On the one hand, SAP Social Media Analytics by NetBase allows companies to listen carefully to what the social web is saying, while improving their social media P&L. With the help of this Social Monitoring & Analytics tool you can track general as well as campaign or product-specific sentiment across different market segments. You can also do advanced analytics on your influencers or competitors for example. The NLP (natural language processing) capabilities are a strong technology foundation, increasing the accuracy for advanced drill-drowns.

In addition to monitoring, SAP Social Customer Engagement OnDemand (click link to see video) will help companies to better manage incoming feedback and service requests from their “social channels” by routing Facebook comments or tweets to the right experts within your organization. With the help of CRM ticketing capabilities as well as embedded Analytics your company can now deploy a modern Social Media cockpit, which will help your company entering the next level from Social Media experimenting to excellence.

Finally, SAP equips your company with advanced means to drive Social Collaboration forward within your organization, connecting individuals, teams, divisions, and internal as well as external stakeholders. This social layer – which gives you context (e.g., who is it that you are working with) – is the foundation of collaborating efficiently today.

There is no reason why all businesses shouldn’t engage in doing so, as the benefits far outweigh the risks.  After all, if a company can promote successfully offline, they will be able to do so online as well. If interested, please contact us directly or please engage with our co-innovation program today and benefit from our exchange of ideas and requirements.

We hope you will enjoy this blog series on our “march to Madrid” – you will hear and see more atSAPPhire NOW in Madrid.

Let us know your thoughts.

Niclas Otte (@ottenic) and Sven Denecken (@SDenecken)

Blog 2: Exposing the influence on purchase decisions?

 

“Half the money I spend on advertising is wasted; the trouble is I don’t know which half”.

 

The waste of resources implied by this famous law of advertising attributed to John Wanamaker has been the bane of business since at least the 19th century*.  Little has changed to resolve this issue…until the emergence of social biz.

No, social biz hasn’t found the holy grail of identifying the wasted half.  What it has done, however, is introduce a disruptive innovation for influencing purchase decisions.  In other words, more and more purchasing decisions are being made based upon word of mouth as opposed to advertising.  Word of mouth of course isn’t new.  What Social Biz has done, however, is provide a platform for customers to easily share information.  While this information can’t be fabricated like advertising, it can at least be measured and thus managed.

 

 

Let’s begin by measuring the impact of user reviews on purchase decisions.  46% of polled Internet users agree that “user reviews on the Internet are more informative than other sources of information”.  Only 12% of respondents disagreed.  41% of respondents also found that user opinions “are more credible than other sources of information”, while only 17% disagreed.** Figures 2 shows that about 70% of review readers are influenced (both positively and negatively) in their purchasing decisions by user reviews.  These figures are incredibly high, indicating that the trust people place in reviews goes so far as to impact their purchasing decision.  It stands to reason that reviews from friends or celebrities via Facebook or Twitter have an even greater influence.

Figure 2: User feedback from customers have been … (**See: Fittkau & Maass Consulting: “29 WWW user analysis W3B”)

 

So how do we best manage this and even foster word of mouth on social networks? To begin with, it takes good products and the right organizational culture of course. Social Media and Internet reviews have been very successful platforms for transparent and customer-centric organizations. At the core, companies need monitoring capabilities that give them data specific to their brands, products or services.  They can deploy Monitoring & Analysis tools such as SAP Social Media Analytics by Netbase to comb the Internet for references to their products.  The results can than be automatically aggregated and categorized by share of voice, sentiment or other helpful categories.

Please check out our overview video here.

Another crucial component is to think beyond Marketing. Yes, Dialogue Marketing plays a key role of course, but Social CRM now represents the evolution of making Social Media scale across your business by harnessing social data in various departments influencing your relationship with your customers including Sales, Service, but also HR and R&D for example. SAP’s CRM solutions offer Social CRM support. For example, SAP Social Customer Engagement OnDemand (click link to see video) helps companies to better manage incoming feedback and service requests from their “social channels” by routing Facebook comments or tweets to the right experts within your organization. With the help of CRM ticketing capabilities as well as embedded Analytics your company can now deploy a modern Social Media cockpit that supports customer-centric organizations engage directly with consumers where it makes sense.

One potential starting point is to contact the Co-Innovation team at SAP. We haven’t managed to identify the wasted half of the advertising budget yet, however, we are succeeding in managing an ever more important aspect of the purchasing decision. If interested, please engage with our Co-Innovation program today and benefit from our exchange of ideas and requirements.

 

We hope you will enjoy this blog series on our “March to Madrid” – you will hear and see more atSAPPhire NOW in Madrid.

 

Let us know your thoughts.

Niclas Otte (@ottenic) and Sven Denecken (@SDenecken)

 

 Part 1: Blog series “March to Madrid”: Let’s get down to business – exposing the value of Social Media activities and data

 

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