CRM, CMR, VRM or…Who Cares?

Block I: Chapter 2
 What is CRM?
• CRM is a philosophy and a business strategy supported by a
system and a technology designed to improve human
interactions in a business environment.
• —Paul Greenberg, CRM Magazine, October 2003
• CRM has been a program for externally facing operational
excellence. Once an organization develops a strategy and be
able to plan appropriate programs, applying the newly defined
or redefined processes and a well-chosen technology would
support your ability to manage those relationships
 From CRM to CMR
• CMR is Customer-Managed Relationships and it can be
explained as “ CMR is our version of CRM-just a slight nuance
regarding our philosophy that our guest invite us into their
lives and ultimately manage our presence/relationship with
them.”
• It is quoted by Disney Destinations.
 Social CRM
• Social CRM is a philosophy and a business strategy, supported
by a technology platform, business rules, processes, and social
characteristics, designed to engage the customer in a
collaborative conversation in order to provide mutually
beneficial value in a trusted and transparent business
environment. It’s the company’s response to the customer’s
ownership of the conversation.
Difference between Traditional CRM and Social CRM

But Social CRM is based on the

ability of a company to meet
Traditional CRM is based on an
the personal agendas of their
internal operational approach
customers while at the same
to manage customer
time meeting the objectives of
relationships effectively. We
their own business plan. It’s
now live in a customer
aimed at customer engagement
ecosystem.
rather than customer
management.
 Social CRM Technology:
Features, Functions, Characteristics
• Traditional CRM technologies have always been defined by features
and functions. What are the technology tools and available
automation that can make a company’s operations more effective
when it comes to managing customers’ interactions with the
company—or, as CRM got increasingly sophisticated, optimizing the
customers’ experiences with the company?
• The closest “feature” that fits a Social CRM technology profile is
mobile device access. The rest is the historical and traditional CRM.
 The 360° View Isn’t Enough
•Doing more to get attention:
• There is a combination of components that are critical for deep
insight that are not the same components you might be used
to—or at least, most of them aren’t.
– Data
– Profiles
– Customer participation
 The Social Stack

Identity and
Presence Actions Sharing
Objects

Reputation Relationships Conversation Groups

Collaboration Context.
 Social CRM & VRM

This has created the need for a new

approach to CRM strategy because
The customer has taken the
the customer’s demands and
ownership of the conversation.
expectations have changed and
whom they trust has changed.

We have to provide the institutional

CRM strategy that actually involves
facilities to the customer so that on
deep knowledge of the customer,
the one hand we satisfy their social
some of which is derived from the
and business requirements and on
customer’s actual thinking and some
the other we are able to gain deeper
from the customer’s transactional
insight into the customer and deeper
history.
commitments from the customer.
 Vendor Relationship Management (VRM)
• VRM, or Vendor Relationship Management, is the reciprocal of
CRM or Customer Relationship Management. It provides
customers with tools for engaging with vendors in ways that
work for both parties. . . .
• VRM immodestly intends to improve markets and their
mechanisms by equipping customers to be independent leaders
and not just captive followers in their relationships with
vendors and other parties on the supply side of the
marketplace.
 VRM reciprocal of CRM

Traditional CRM
VRM is about creating
systems typically
mutually beneficial
address three touch
relationships between
points with customers:
customers and
marketing , sales, and
vendors.
support.
 Transaction-Conversation-Relationship
• A stellar model for this point of view was put forth by Doc
Searls in blog entry. In this post, he notes that there are three
levels of interaction:
– Transaction
– Conversation
– Relationship