Social Networks Replacing CRM? Stop the Hype.
Socialware, a company that provides automated monitoring and archiving of enterprise social media use, maintains an interesting blog. Good, relevant ideas without being overtly self-serving. I especially like the $100M Tweet.
One recent post touched on an idea that, at first, struck me as solid: social networks become the new CRM system. Instead of having/using a wholly separate tool, why not have the CRM be the tools everyone already uses? In other words, use the contact and personal information (job history, interests, people they know) captured by Facebook and LinkedIn as your go-to client/prospect database.
I see two problems with the idea:
- As the post notes, it’s hard to maintain updated information on prospects and clients. But you know what – it’s no slam-dunk for people to keep their social media profiles and information up to date, either. The problem of inaccurate information is not necessarily solved. More importantly…
- The main value of CRM lies in combining contact information with all sorts of proprietary knowledge. No social network is going to log past business deals, Web site activity, and when you last saw somebody. At least not yet.
In fact, it’s likely that social networks will make CRM tools more important, not less. Applications like Faceconnector integrate social media information with firms’ proprietary databases. And firms will increasingly be able to bring this information in-house to build even better client/prospect profiles.
So I don’t believe social networks will be replacing CRM tools. And I think grand overstatements about social media’s potential provide skeptics the ammunition to resist the legitimate opportunities it presents.