Transforming into a Social CRM Enterprise: Being Successful at Social Media Often Requires Organizational Change Management. Here Are Some Tips to Follow

Liyakasa, Kelly, CRM Magazine

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It's no secret that the power of social media lies in the connections it creates. More companies, however, are also realizing that good social CRM connections can improve their bottom line as well.

Starwood Hotels & Resorts Worldwide is a case in point. The company's Starwood Preferred Guest loyalty program provides various ways for hotel guests to share their travel experiences and photos with family, friends, and other hotel guests on social media networks. As an added benefit, guests who check into one of its hotels with their Facebook or Foursquare account can receive "Starpoints," which can be applied toward free breakfasts and room upgrades.

Such social media efforts have helped to double the loyalty program's membership over the past five years. But, perhaps, more importantly, members are spending 60 percent more than they did five years ago.

These results would understandably whet any customer strategist's appetite. And, in fact, the promise of social CRM has done just that: Gartner is expecting social CRM sales to exceed $1 billion by the end of this year, up from $820 million last year.

However, whether your organization's goal for social media is to improve sales, marketing, and/or customer service efforts, one thing is clear--success does not happen overnight. To fully harness the power of social media to engage, interact with, and sell to their target customers, organizations must be willing to embrace collective change. And that takes proper planning and patience.

As with any disruptive technology, one of the biggest bottlenecks to success is changing employees' attitudes and behaviors regarding innovation. In Community Roundtable's "State of Community Management 2011" report, 28 percent of survey respondents said organizational culture was the greatest barrier to social technology usage.

"Enterprises are large and their cultures are well-defined," observes Paul Greenberg, president of The 56 Group and author of CRM at the Speed of Light. "They are legacy cultures--cultures of habit. And breaking habits, when the world is changing as …

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Publication information: Article title: Transforming into a Social CRM Enterprise: Being Successful at Social Media Often Requires Organizational Change Management. Here Are Some Tips to Follow. Contributors: Liyakasa, Kelly - Author. Magazine title: CRM Magazine. Volume: 16. Issue: 6 Publication date: June 2012. Page number: 38+. © 2008 Information Today, Inc. COPYRIGHT 2012 Gale Group.

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