The rise of social networking sites has meant that customers are no longer prepared to be fed the traditional marketing, sales and service monologue from companies. They feel empowered with peer dialogue through online communities and have started to take greater ownership of the conversation with businesses which may be able to help them achieve their needs.
Traditional CRM strategies focus on managing relationships based on customer transaction history for the optimal extraction of value from the customer. These strategies create operational efficiencies in customer-facing activities to free up staff time to sell and resolve service issues e.g. opportunity management and pipeline visibility. Additionally they can create optimised offers for customers, leading to higher value customer purchases. This approach however is insufficient when it comes to customers whose trust lies in their peers. Customers are demanding engagement, not monologue, and want trusted relationships with authentic, timely communications.