Source: http://www.thebluediamondgallery.com/tablet/c/crm.html
Earlier this spring, we discussed the importance of audience segmentation to arts organizations, as it allows arts managers to market targeted offerings according to the needs and inclinations of different patrons. We emphasized the importance of paring different kinds of data together, such as both CRM data and information from customer satisfaction surveys, in order to obtain a more holistic view of each customer. However, you might be curious what CRM data actually is, and what specific information about a patron can it relay?
CRM software, or Customer Relationship Management, is defined by the Business Dictionary as “a computerized system for identifying, targeting, acquiring, and retaining the best mix of customers” and “an integration of back and front office systems to create a database of customer contacts, purchases, and technical support, among other things”. Based on the different definitions, we will discuss and compare two types of CRM data to help readers better understand how to use it to segment.
Traditional CRM Data
Traditional CRM systems store, track, and report on critical information about customers and prospects. They usually track information like basic demographics, contact information, purchase/consumption records, marketing/interaction records with the company, and can include additional notes or classifications made by database administrators.
The traditional CRM data storage page for a single customer could look like this:
Source: Business 2 Community.com
Social CRM Data
“Social CRM is a strategy to engage the customer in a collaborative conversation.”
Social CRM systems track interactions among companies, customers and their social networks via social outlets such as Twitter, Facebook, YouTube, and online forums or reviews platforms like Yelp. Social CRM Data does not only report social connections but also presents a keyword analysis and simple sentiment analysis to the database users. It may look like the following:
Picture source: Business 2 Community.com
Comparison between Traditional CRM and Social CRM
It is important to note that social CRM data is a supplement and not a replacement to traditional CRM data. Comparatively, the two types of CRM share similarities but also each feature distinct characteristics. Traditional CRM is more data-driven and process-centric, as it records customer behavioral information. On the other hand, social CRM is content-driven and conversation-centric as it focuses heavily on tracking social communications. Traditional CRM data can be more operationally-focused and Social CRM data is people/Community oriented.
Differences also exist between the one-way engagement model and company defined processes of the traditional CRM and the two-way, more modern engagement model of Social CRM’s real time data exchange.
Overall, the two types of CRM data are of great value when used together and can help automate sales, marketing, and customer support. Next time, we will take a more detailed look at how to analyze the data generated from CRM systems and use it to segment your audiences, potentially driving customer retention and acquisition.
Have you found CRM data to be particularly helpful for audience segmentation practices in your organization? If so, tell us about it in the comments section below!