Making Customers the "Fourth Pillar" of CRM Systems

CRM software insiders have been buzzing for a few days about a recent blog post by Bob Warfield from SmoothSpan. Warfield summzrizes some conversations he's had with leaders in the CRM software field about the role that social media can play in the development of new applications and of entirely new ways to approach customer relationship management in the first place.

In some circles, CRM software experts like to talk about the "Three Pillars of CRM," specifically:

• Marketing
• Sales
• Customer Service

Warfield cites a recent post by Esteban Kolsky, in which he posits that "feedback" should become recognized as the "fourth pillar" of customer relationship management. Warfield challenges CRM software experts to go even further, by viewing customers themselves as that fourth pillar. Using that strategy puts customers on the same level as other stakeholders in the enterprise, and it doesn't divorce the customers themselves from their comments.

It's important to ensure that we see customers as human beings, Warfield suggests, because we would otherwise run the risk of settling for crisis management outcomes to "social media emergencies" instead of using CRM systems as sources of accountability. For instance:

• Warfield cites a case in which social CRM software picked up a complaint on Twitter about VistaPrint. A customer's lost order was comped by a helpful representative after a blogger tweeted her frustration.
• Heather Armstrong took Maytag representatives to task on Twitter about a washing machine that failed about a week after delivery. After exhausting normal customer service avenues, she posted notes on Twitter. Not only did Maytag provide a replacement unit, other manufacturers provided the influential blogger with equipment to donate to local shelters.
• I had my own frustrating experience with Sears recently. Problems with the company's CRM software prevented me from getting prompt service or attention with a faulty dishwasher. Once I Tweeted and blogged about my problems, Sears representatives rushed to the rescue.

Warfield's position is that solid CRM systems would prevent these kinds of episodes from happening by measuring negative customer feedback before it goes public. Marketing proponents might note that all three stories involve companies that make things good at the end, but Warfield notes that these are still "bad stories." As social CRM systems evolve, look for opportunities to engage customers in follow-up conversations more closely, rather than waiting for negative tweets and blog posts to hit the web.