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Social CRM (SCRM)

1 February 2017
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'Traditional' CRM deals with managing customer relations via analyzing the business activities the customers perform towards the organization, such as: customer inquiries, purchase history, etc. The interaction with these customers takes place via "traditional" channels, such as: telephone conversations, face to face meetings and emails.

 The central idea behind SCRM is generating more personal relationships with the company's customers by utilizing two central channels:

  • Monitoring the information on the messages transmitted via the social networks such as LinkedIn, Instagram, Facebook, Twitter, etc. At the root of all social networks lies the wisdom of the crowds and the consumers consulting their peers and other consumers prior and following their purchase. They seek tips, read reviews and share experiences. Therefore, organizations must invest substantial thought formulating their product promotion strategies. For example, companies can analyze scenarios in which the brand name is mentioned, problems which the service/product solves and the social and business oriented effects regarding the product while comparing them to organizational objectives and implementing appropriate business tactics. Traditional "formal" communication should still be maintained between the organization and its customers.

  • Utilization of social networks by organizations both as a means of transmitting marketing messages and a customer service tool. These tools enable customers to receive answers to inquiries presented via social networks or forward inquiries via social networks to company representatives. The system must be able to direct messages to the appropriate workers or provide an automatic response through an automatic channel. Actually, using SCRM tools can assist in managing the organization's customer service digital channels since they are a combination of a customer relations program and social media tool.

The vast power of social networks in the business sector is manifested in the following charts which show the amount of digital media consumers globally in general and social media consumers in particular.



The fact is that there is substantial potential for accessing knowledge on a wide audience using social networks. Organizations can listen to customers' needs and pinpoint consuming trends while also marketing its products and interact with customers and potential customers via multiple channels. This can contribute greatly to companies' business positioning in the current market.

In order to actualize this potential each organization must create a strategic plan and allocate the sources required in order to implement social media as a customer relations tool. For further information, read   summary of the Social Media Management Handbook.

In conclusion, SCRM is an amalgam of customer relations software and a social media tool that can utilize and manage the amounts of knowledge and interactions taking place in the social media scene for the benefit of business organizations.

Knowledge Management deals with documented information and knowledge, but even more with communication between people. Knowledge Management serves intra-organizational needs (between workers) and inter-organizational needs (facing customers, partners and other allies). SCRM is a component of the expanding world of Knowledge Management.



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