Socially Challenged: CRM Outsourcers Still Grapple with Social Media Strategies

By Klie, Leonard | CRM Magazine, May 2011 | Go to article overview

Socially Challenged: CRM Outsourcers Still Grapple with Social Media Strategies


Klie, Leonard, CRM Magazine


Telecommunications, travel, and the public sector are the three verticals with the biggest presence on sites like Facebook and Twitter, giving customer relationship management outsourcers a wealth of opportunities to capitalize on the demand for social media services, according to Ovum. But many companies are not sure how to take advantage.

In a new report, the analyst firm reveals that 57 percent of telcos, 54 percent of travel companies, and 45 percent of governments use social media CRM, offering great promise for outsourcers.

"There is certainly demand for social media CRM services that outsourcers can take advantage of," says Peter Ryan, an analyst at Ovum.

According to the report, the main social media functions providing growth opportunities for CRM outsourcers are in the monitoring of social media forums, customer service, and business development. Telcos, for example, can use social media sites proactively to address service outages. In the same way, travel firms can use them to address flight delays or cancellations.

But, Ryan adds, the industry is immature, and outsourcers are trying to define their niches. "If you ask 10 different vendors what they offer, you'll get 10 completely different responses," he says. "Many enterprises that are looking for social media CRM applications do not have a clear idea of what they actually need," Ryan says. …

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