Third Idea Consulting

When budgets are tight, businesses tend to focus on cutting costs and reducing expenses. This usually leads to reticence on the part of executives to spend for new or upgraded business technology. Sadly, this is a case of being penny wise but pound foolish, if the figures reported in a recent study are to be believed. Billions of dollars are slipping through the fingers of companies who deliver poor customer service, and a lack of good CRM is one of the causes.

“The Cost of Poor Customer Service: The Economic Impact of the Customer Experience and Engagement,” a joint study by Ovum and Greenfield Online (commissioned by Genesys Telecommunications Laboratories) surveyed nearly 9,000 consumers in 16 countries. It revealed that lost relationships—defined in the study as transactions taken to a competitor or abandoned entirely—cost businesses $338.5 billion per year. That works out to about $243 per loss, according to the study. So if somebody ever says, “So what’s one customer more or less,” now you can tell them. For complete reporting, see the destinationCRM.com article by Christopher Musico.

Certainly, poor business processes and a lack of understanding of how to best relate to customers take part of the blame, but everything cited in the study as needing improvement—being trapped in automated self-service, waiting too long for service, callers having to repeat themselves, and customer service representatives lacking the skills to answer inquiries—everything can be remedied by smart use of CRM technology. Here’s a list of the traditional solutions to these problems:

• Trapped in automated self service? This one is easy, even anti-tech: Make sure there’s a way to escalate from the IVR to a live agent. Call deflection has value only if customers are getting the help they need. A timer or tracker that follows a customer’s call and lets a customer service rep break in with live service if the call goes too long or revisits the same menu too often would work if the company (foolishly, in my opinion) doesn’t want a “press zero to speak to an agent” option.
• Waiting too long? There are more than a few on-demand contact centers out there, as well as software that allows companies to direct their call overflow to work-at-home agents who can help absorb the volume. Take your pick.
• Callers having to repeat themselves? This makes me sad, because even simple integration between the CRM system, the IVR, and the agent’s desktop takes care of this, 100 percent. I can’t believe it’s still an issue.
• Representatives lacking the required skills and permissions? A well-stocked and -maintained knowledgebase means that your customers don’t have to suffer for gaps in a particular agent’s expertise. E-learning tools help agents stay current on important information. Not penalizing an agent for handing the call off to somebody who does know how to help, rather than flailing uselessly at a problem, is also wise.

Those are the usual ways to deal with the issues brought up in Musico’s article. It also mentions social media as a potential problem solver. I don’t deny the closing statements of the piece, where Ovum analyst Daniel Hong says it will take some time to get businesses comfortable and proficient with social CRM, but the investment of time and money must be made. It’s been shown that fellow customers are often better at solving some problems than a CSR, so answers are provided for free without costing agent time. Answers generated by the community can be added to the company’s knowledgebase, and over time this feedback can help fix issues with the next product or service in development. That sense of shared experience also makes for loyal customer advocates, which is money in your pocket.

Basic integration has been too long in coming for too many businesses, so perhaps the study will show them the true cost of delay. I hope they remember the social CRM part of the integration as well—bringing businesses into closer and more productive contact with their customers.

Sage Summit has begun, even if the official welcoming keynote hasn’t yet been delivered. This is a customer event, y’see, so it’s fitting that Sage started by recognizing some of its more notable ones. In other words, it was the Sage Customer Awards Program luncheon. Here, in brief, are the winners, with a few comments by me where needed.

• MyBizCounts.com Contest Winner: INDIE PEACE, an Atlanta-based fashion design company that focuses on sustainable, eco-friendly products and manufacturing techniques. (This contest called for original video commercials and essays from people with new business ideas or young startups (two years and under), with $20,000 and a bunch of Sage software—Peachtree, ACT!, and Timeslips—as the prize. The company made a cute presentation, and has some really nice wearable designs that won’t kill the planet. Good stuff.)

• Rookie of the Year: Coilhose Pneumatics, East Brunswick, NJ, using MAS 500; Net@Work is the Sage implementation partner. (Product costing and inter-company transactions are some of the more onerous parts of a business that deals in specialized products. Guess what Coilhouse improved with MAS 500? Net@Work is known to me as a talented integrator, so kudos to that team as well.)

• Best Use of Customization: Metropolitan Regional Information Systems (MRIS), Rockville, MD, using Sage MAS 500; Blytheco LLC is the implementation partner. (MRIS got more than 32,000 customers to use the online bill-pay system it built this year, something that wouldn’t have been possible with its legacy accounting system. Automation is a good thing sometimes.)

• Community Stewardship: Teach For America, New York, NY using SalesLogix; Infinity Info Systems is the implementation partner. (I’ve met with IIS before, and its founder Yacov Wrosherinsky is one of the most-recognized Sage partners there is; I’m not surprised one of his clients took an award.)

• Best End-to-End Deployment: Curbers, Inc., Salisbury, NC, using MAS 500, FAS, and SalesLogix; Practical Software Solutions is the implementation partner. (Combining ERP and CRM throughout the enterprise makes tremendous sense for many businesses, especially those in heavy industry. Power Curbers makes, customizes, and sells machines for making sidewalks, curbs, barriers, bridges, and other concrete items—that’s about as heavy as heavy industry gets.)

• Best Innovation Award: Entertainment Lighting Services, Inc., Sun Valley, CA, using MAS 500; Information Integration Group is the implementation partner. (ELS really needed to get enterprise software in place, and the results are telling. It reduced inventory shrinkage by half, and reduced the month-end close process from four weeks to five days—their monthly close used to take a month. Think about that.)

• Lifetime Achievement Award: Amix Salvage & Sales Ltd. , Surrey, BC, using Accpac and SageCRM; Plus Computer Solutions is the implementation partner. (Too often, especially at the Oscars, lifetime achievement awards are a way of saying, “you’ve never won a real award, so here’s a pat on the back to thank you for hard work.” That’s not what this is; Amix has been a Sage customer for 17 years, and had its first software package installed under MS-DOS. Sage has seen Amix through booms and busts for longer than I’ve had a writing career. Clearly both companies are doing something right.)

Congratulations to all the winners. I’m hoping to track down Denis Pombriant, founder and managing principal of Beagle Research Group and one of the contest judges, to talk about what went into the award decisions.

I’m about to start a guest blogging project for Sage Software, the company that brings you ACT!, Sage CRM, and SalesLogix. With their partner summit starting Monday, we figured it was a good time for me to introduce myself to the Sage user community, and here’s how I did it:

“Hi, I’m Marshall Lager, and if you read the ACT! by Sage blogs you’ll be seeing a fair bit more of that name in the coming weeks. That’s because Sage has invited me in as a guest blogger to provide my own perspective on CRM, Sage products, and customer experience. I’ll be kicking it off at Sage Summit, the annual partner conference, but I wanted to introduce myself and give you an idea of what you’ll be in for.

“You may be wondering, “Who is this guy, and why should I care?” Fair questions. I’m the founder and managing principal of Third Idea Consulting LLC, a consultancy focusing on CRM, especially social CRM and the increased power social media have given to customers. Those of you who read CRM magazine may also know me from there, where I was senior editor for four and a half excellent years. I’m the guy who wrote (and still writes) the back page column, Pint of View.

“That tells you a bit about who and what I am, but it might be just as useful to tell you who and what I am not.

• I am not a Sage implementer, employee, or partner. I am being paid formy writing, and I respect Sage’s products and am familiar enough with them to not make a fool of myself or the company. If you have specific technical questions about integration, business processes, or software capabilities, though, you’ll be better off talking to a Sage exec or ACT! Certified Consultant (ACC). I’m more of an ideas guy.
• I am not a spokesperson for anybody’s brand but my own. But maybe I can help you with yours. One of my chief contentions is that businesses don’t have the monodirectional control of their communications or their brands that they once did, and I think it’s a good thing. I’m all about customer empowerment, and how it can ultimately make businesses better. As such, I don’t really care what CRM system or techniques you use, as long as you are doing whatever it takes to keep your customers coming back with smiles on their faces, cash in their hands, and referrals in their mouths.
• I am not always serious. Writing is a pleasure for me. Thinking about CRM is also a pleasure. Combining them makes me do a little happy dance in my brain. At the same time, I realize that serious business shouldn’t always be serious, and we all need a change of perspective from time to time in order to prevent tunnel vision. Again, readers of Pint of View already know what I’m talking about. You might not always agree with me, or laugh with me, or find my comments in good taste, but they should make you think. If that’s happening, I’m doing my job.

“So, what can you expect from me? Over the next couple of months, I’ll be providing you with my perspective on the CRM industry, Sage news, and the state of customer/company dialogue in general. I’m starting with Sage Summit because it’s a big event, so you will see me all over the conference, talking to people like you about what matters to you. There will probably be some video podcasts or Q&A sessions along the way, so you can interact more directly with me.

“I’m also available for phone consultations, on-site visits, white papers, weddings, and bar mitzvahs. But you’ll have to pay me. The guest blog is entirely at your disposal. I hope you find it useful.”

There it is. If anybody’s going to be in the Atlanta area this week, look for me with notebook and Flip video in hand, trying to provide my perspective on what’s going on with Sage. I’ll be continuing the guest blog for a couple of months, and will mirror it here. I’m looking forward to the access to Sage that this will give me, as well as the chance to affect its users and partners in a (hopefully) positive way.

I’ve just spent (and am still spending) a busy and informative demi-week at the RightNow Summit in lovely Colorado Springs, and I’m glad I came. Greg Gianforte and company are doing some very smart things.I’ve dinged RightNow in the past for sometimes lacking in effective media/analyst outreach, but that appears to no longer be the case, and the timing is excellent.

The reason for my enthusiasm is that RightNow’s message of customer experience is now a product and a strategy, CX. The social CRM and SaaS stars are finally in alignment, and the RightNow CX customer experience suite that Greg G. announced on Tuesday was born under those auspices. My tweets from that morning’s general session will give you some idea of what RightNow CX is all about, but I’ll summarize it here in a more coherent fashion. I’ve got to rely on text because I’m having trouble getting slides to work, but bullet lists are clear enough.

From the ground up, there are five main components of RightNow CX, each containing part of the package. RightNow CX Platform is the technology that supports the traditional CRM functions of RightNow Engage, which in turn supports the three customer experience components (Web Experience, Social Experience, and Contact Center Experience). Thus,

RightNow CX Platform

• Knowledge management
• Integration
• Mission-critical SaaS (more about this later)

RightNow Engage

• Marketing
• Voice of the Customer
• Sales
• Analytics

RightNow Web Experience

• Customer Portal (including Web self-service and mobile)
• Chat and Co-Browse
• Email Management
• Web Experience Design

RightNow Social Experience

• Support communities
• Innovation communities
• Cloud monitoring
• Social experience design

RightNow Contact Center Experience

• Phone and multichannel interaction management
• Case management
• Voice automation
• Contact center experience design (including desktop workflow, agent scripting, and contextual workspaces)

Mission-critical SaaS includes something the company is calling Invisible Updates, with elimination of downtime as the goal. The concept appears similar to Salesforce.com’s 5-minute upgrades, but RightNow is aiming for true seamlessness. It also prides itself on having always provided service level agreements with teeth—the company cuts checks for its customers when downtime exceeds what’s spelled out in the SLA. It’ll be fun to see how the two rivals stack up in this matter.

A lot of the new customer experience functionality, especially the knowledge base and Social Experience parts, are the fruit of RightNow’s acquisition of HiveLive in September of this year, followed by what must be the fastest assimilation of technology since Star Trek introduced the Borg. A six-week turnaround from acquisition to deployment was unheard of before this, as far as I know.

RightNow takes the position that customer experience is everything, and is making “ridding the world of bad experiences” its goal. The path to achieving this leads through the contact center, and recognizes the power of the customer to make or break a business no matter how good the products might be. Numbers from the 2009 Customer Experience Impact Report (commissioned by RightNow from Harris Interactive) back this up:

• 86% of consumers will never go back to a company after a bad customer experience
• 60% will always or often pay more for a better customer experience (up from 58% in 2008)
• 82% who had a bad customer experience told others about it (up from 67% in 2006)
• 53% will recommend a company to someone else because they provide outstanding service

To illustrate the potential impact of one bad experience, we were treated to one more showing of the “United Breaks Guitars” video—but with a twist, because Dave Carroll (the creator) took the stage partway through to finish out the song and give us a first-hand account of his experiences. As he finished up, he revealed what I’d call PR gold for him and RightNow: Carroll’s only option for getting to the conference was to fly United, and the airline lost his luggage. If you listen carefully, you can hear United’s market capitalization dropping even further than the $180 million attributed to the initial incident.

If RightNow CX Platform is as good as it looks, and the company is true to its word, 2010 could very well be RightNow’s year. Every single one of Greg G’s customer visits in the past three to four months (he’s done more than 300 customer visits in the past 18 months) has had social CRM as a focus—driven by the customers, pulling RightNow into the conversation. That’s encouraging to me, since I’d hate to have established a practice in a field nobody cares about.

You’ll also be glad to know that I am now officially Huge On Twitter, at least as far as the PR team from Horn Group and RightNow Technology is concerned. I hope to continue living up to the accolade.

Hey folks: I’m at a conference with functioning WiFi! It’s RightNow Summit ‘09, and we’re just a few minutes away from the opening address. Look for my live updates on Twitter, and a full account of the news later today. Anything I don’t get, you should be able to learn from Christopher Musico of CRM magazine, Esteban Kolsky, or Forrester Research’s Dr. Natalie Petouhoff.

It’s Tuesday, thus time for Monday’s bloggery. I pretty much failed to liveblog Oracle Open World’s keynote, but at least it wasn’t through my incompetence; spotty WiFi and simultaneous Twitter overloads and outages conspired to keep me mostly silent, and the rest of the day had me on the move too much to post for you.

So many things happened Monday at oracle open world, though to be honest I think the day needed to accelerate before it got really good. The morning keynote led by Charles Phillips and Safra Catz was fairly sedate, as it felt like there was no binding force between the many segments. To be fair, I missed the Sunday night keynote due to personal burnout, so it’s entirely possible that Larry Ellison–a man I’ve never heard speak in person–really did the setting of tone last night and Monday was the start of the “business” part of the conference. Esteban Kolsky pointed out that there was an undercurrent of unrest in the room (something you never want when there are more than 10,000 people), and his tweets really captured the flow of the morning. He had much beter WiFi connectivity than I did, and seemed less affected by the problems experienced by Twitter, so I recommend checking out @ekolsky to see all the stuff I wanted to liveblog. Props to Esteban.

There were two stand-out segments, though. One was with Anthony Lye, which (and whom) I’ll come back to in a moment. The other dealt with retail, particularly “fast fashion” as implemented by H&M.

I have no use for the store or its brand, but I must say that the way H&M is using Oracle technology to change the way the apparel industry works. Any apparel business can (and should) use CRM and ERP technologies to make their purchases more efficient, but that still uses the antique method of basing inventory decisions solely on the debut of fashion “seasons” that might be nine months ahead of actual time. Fast fashion is a step beyond. Presenter Duncan Angove and an associate whose name I missed explained how H&M uses it to spot current trends and new products and act on them every month, perhaps even sooner. Combined with dashboards linked to regional maps, this means H&M can put what items will be most likely to sell well in each individual store, change out stock efficiently, and entice customers with promotions as needed to keep sales coming. Smart business and satisfied customers.

Now to Anthony Lye, who gets the other allotment of props for Monday. His part of the keynote delivered what the entire session should have done: a real tactical and strategic sense of how enterprise apps (like CRM) fit into a company’s efforts to increase efficiency and profitability, but without ever forgetting that it’s all about the customers and what you can do to make them not just content to do business with you, but happy enough from doing so that they encourage others to do the same. He didn’t stop there, either; he led two sessions later in the day that drilled even deeper into modern customer engagement strategy, and both were spot-on. His first had him and his team demonstrating how the Siebel CRM family is helping Oracle customers find their way in social CRM via cross-channel, experience-driven business practices. Very sharp. Then he put two powerhouses–Paul Greenberg and Denis Pombriant–together to discuss social CRM and cloud computing. A session with either Denis or Paul is always worth the time; both of them plus Anthony is more than most can hope for. The conversation was lively, though Anthony’s questions did seem (understandably) to support Oracle’s mostly-on-premises model. Regardless, Anthony Lye is everything Oracle needs in a CRM exec: he’s sharp, relatable, works well with the rest of his team, knows the industry, never forgets the customer, and is a pleasure to speak with. This man needs a raise.

More to come after today’s happenings, and I’ll try to post my thoughts in a more timely maner. No promises though; I still owe you my impressions of a great social CRM dinner I attended with Tealeaf last week revealing its latest customer experience survey results. Great stuff, and I want to do it justice, but I feel funny about the time delay.

So it’s shaping up to be a busy, if short, week. While I was busy absorbing and writing about the Oracle-InQuira announcement you read about yesterday, I nearly missed an announcement from Salesforce.com. (You can see the details of that news here, including a few of my comments on it.) And while I was tracking that down, RightNow Technologies snuck in a little bit of news of their own, to wit the acquisition of HiveLive.

I’d give you the lowdown on the RNOW news, but in addition to getting a handle on that, I need to prep for a social media marketing event here in New York hosted by Axciom.

Oy.

I’ll provide a summary after the crazy has settled to an acceptable level. Salesforce news = cool, RNOW news = smart (I think), Axciom event = informative (probably).

The embargo is up, so I can report on a little piece of news I got last week from Oracle. No less a personage than Anthony Lye (with the aid of Susie Penner, one of the best media/analyst relations people I’ve ever met) laid out the details of a partnership with InQuira to deliver an on-demand knowledge management system for customer service. It’s available now.

Oracle and Lye need no introduction. InQuira is a name I’ve encountered before, though the company’s claimed strength is in Web self-service. The partnership itself is not new, either—the two companies announced something similar last year at Oracle OpenWorld, but for on-premises deployments. Today’s announcement extends their work to SaaS.

To quote Oracle’s statement: “The integrated, on demand service solution enables customers to go seamlessly from self-service to live agent-assisted service. Service agents receive overall view of customer issues and actions taken, providing a consistent experience across Web, phone and community-based channels. … With InQuira knowledge management available on demand and embedded in the Oracle CRM On Demand desktop, customer service agents have access to knowledge across the enterprise, enabling them to seamlessly access answers right from within their normal service flow.” Thus, customers who are looking for help or other information encounter fewer bumps on the way up the support chain, while agents can respond more quickly and definitively to customer inquiries. There’s greater likelihood that answers will be consistent across all access points, and the user base’s expertise becomes part of the support mix.

I can’t say that this is a totally unique product—it’s an extension of an existing partnership to provide something similar, and service automation vendors have been working at solutions like this for a few years now—but it does have the stamp of two respected corporate names as well as the addition of SaaS. In my experience, it’s easier to create integrated service environments with smaller businesses, simply because there’s less knowledge to manage and less demand on the delivery channels. Oracle and InQuira working together have a fair chance of extending service integration to really large companies, where customers have previously found it very easy to get lost or confused. The reduced tech footprint of the SaaS option doesn’t hurt either, so companies who are willing and able to go this route should be well served.

Sounds good, right? I think so too, but to be honest I had a little trouble envisioning the structure of the partnership in terms of who brings what to the table and when it comes into play during a service engagement. I’ll be taking a follow-up briefing later today to see how it all works, and maybe get InQuira’s point of view on the partnership. Should anything new and awesome emerge from that call, I’ll update. For now, though, I like what I’ve heard.

If you’re wondering why the blog has been quiet for the past few days, it’s not a question of laziness—I’ve been working. Specifically, I was at CRM Evolution 2009 in NYC (co-located with SpeechTEK 2009), experiencing my first professional conference as an independent. It was fantastic, and before I write anything else, I have to express my gratitude to the people who made it possible. David Myron (editorial director of CRM and Speech Technology) and Paul Greenberg (conference chair and all-round great guy) outdid themselves from their positions at the top. Bill Spence and Paul Johnston kept the technical side of the show running smoothly. Josh Weinberger, Jessica Tsai, Lauren McKay, and Chris Musico (the staff of CRM); Len Klie, Adam Boretz, and Eric Barkin (the staff of Speech Technology); and all the support staff of Information Today should be proud. I’m sure the staff of the Marriott Marquis Hotel deserve thanks and credit as well. I just don’t like the place as a conference venue, so it’s hard for me to be as magnanimous with my praise.

The reason you’re hearing about CRM Evolution ‘09 now, instead of during the show itself (except for my tweets, hashtag #CRMe09) is because I am not used to doing it all myself. I’ve always had access to a laptop, but I don’t own one—there was no need, and I prefer desktops for personal use. While I knew I’d need to buy one before the conferences started in mid-September, I figured that for late August I’d be able to write my reports from home after hours. Little did I realize that there would be no “after hours” for me. I was getting home so late I only had time to sleep, shower, and go back. Lesson learned.

Paul kicked the show off right with his opening keynote, “The Social Customer: Listen, Then Act.” Not surprisingly, he made an apparently bulletproof case for the power and relevance of social networking technology as applied to CRM. Some highlights:

• The most trusted source of info for customers today is other customers.
• Customers want to do business with companies that are transparent, and that understand and cater to their needs.
• Social CRM humanizes the company in the customer’s eyes, and gives the company insight into its customers.

Of course there’s much more to it than that, and I expect the transcripts and recordings of Paul’s presentation and the many conference sessions will be available before too long.

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It’s been said that trade shows and their ilk are more about meeting and greeting than about learning anything. I have sometimes felt this was true. This conference was both for me. I learned what Sage North America’s next ACT! product will be like (more about that next time), and also got a sense of what SugarCRM is planning in the near future, but most of the learning wasn’t about specific pieces of software.

• I learned how speech analytics can be leveraged in social CRM, courtesy of Steve Graff, vice president of technology and chief architect for Autonomy/eTalk.
• Bruce Temkin of Forrester Research gave a great talk on the CRM journey, teaching more about what it takes for a company to fully embrace customer experience as its chief mission.
• Michael Krigsman, ZDNet blogger, extended his coverage of IT failures to include failures in traditional and social CRM efforts, yielding a lively discussion.
• Brent Leary (CRM Essentials, CRM Playaz, biscuit fiend) unloaded tons of great info in his talk on CRM and the Socially Empowered Customer. Next to Paul’s keynote, it may have been the most eloquent discussions of the power of social CRM I’ve heard.
• Casey Coleman from the government’s General Services Administration and Bob Greenberg (CEO of consultancy G&H International Services) amazed me with examples of how government agencies are using social technology to improve information flow, especially in times of crisis.

That’s just some of what came out of this show; I missed a lot of sessions I’d otherwise have attended due to scheduling conflicts. I also learned more about my own position as a consultant and analyst in the CRM world—there were too many sharp minds around, so I couldn’t help but improve myself by talking to them. Meeting and greeting them—old friends and new, including some I’ve known for some time but never encountered face to face—gave me a serious case of the warm fuzzies.

Maybe it’s because I was working for myself instead of providing coverage for an employer, but this felt like the best trade show I’ve been to in a decade. And that’s just for a relatively small event. My head might explode at Dreamforce.

Businesses, you may be surprised to learn, exist to earn money. So it’s really not hard to understand why many of them are reluctant to embark on any new project—especially one that costs money to implement—before they have a solid idea of how it will affect their earnings. Beyond the company’s products/services, this has been the case with every new technology, every new management principle, and every business process. It’s one of the things that puts money in the pockets of analysts and consultants like me.

Social CRM, and social media awareness in general, is passing from the wowgottahaveit buzzword phase of its existence and entering the cost-benefit analysis phase. There are lots of discussions (or one big discussion, in a way) being had about how one measures the return on investment—ROI—of social CRM. You can see the Wordpress blogs that have touched on it here; I can’t say I’ve read them all yet, and likely never will. A guy’s gotta get out of the home office from time to time.

Forrester analyst Natalie Petouhoff (Dr. Nat to her friends and pretty much anybody else) has a report on The ROI of online customer service communities. Sometime in the near future, Ryan Zuk will be publishing an article on social media monitoring for the PRSA newsletter. I may or may not be quoted in it, depending on how the piece shapes up and what his word count ends up at. (I’m not trying to add pressure for my inclusion, Ryan, just using you as a lead-in to my point.)

If I’m in there, I may come off seeming like I don’t think ROI should be a consideration for businesses implementing social CRM. That’s not the case. It’s the foolish (and often failed) business that doesn’t consider the consequences of potential actions. What I do think is that sometimes “hard” ROI, expressed in dollars and cents, is tricky to estimate and sometimes utterly beside the point.

You can see a few cases where social CRM has made a big difference for small businesses in this New York Times article. Beautiful examples of clear, identifiable ROI—even though most of the social tools mentioned don’t cost anything. These business are reaching out directly to customers, using simple applications as a marketing engine first and a means of receiving feedback or participating in a conversation second.

I’ve developed a habit, when discussing ROI on social CRM for larger companies, of putting things in terms of fear. Next to greed, fear is the prime motivator in business. “Your customers are having conversations about you that you’re not party to,” I’ll say. “They’re also having conversations about your competitors, but some of your competitors are participating. If somebody starts a rumor about your products or your practices, your customers might perpetuate it, and your competitors aren’t going to do anything to stop it, if it’s bad. Can you afford not to listen?”

Of course it’s not all about fear. One of the best anecdotes of social CRM in action is owned by blogger, consultant, and CRM Rock Star Brent Leary. Ask him about biscuits (the American kind), and how a single tweet got him to eat at Popeye’s after a multi-year absence. More than just the $6 revenue Popeye’s got, though, is the tremendous positive word-of-mouth the restaurant chain got by making one response to one person—the right person—at the right time. Brent will be able to tell this story about how Popeye’s “gets it” for years to come—and if he doesn’t, then I will.

My advice to businesses, in brief: Study social CRM as much as you can, see what others are doing and what works best for your particular business. If you can figure out a way to make it pay, then by all means do that. But get in the game regardless. It may cost you nothing, but the rewards—monetary or otherwise—only come when you get involved.