Recently I was asked by Microsoft to present a session on social CRM at their Convergence conference. Social CRM is a very hot topic right now as companies are realizing what a paradigm shift it represents in the realm of customer interaction. Through social CRM, we're moving away from the old model of merely pushing information to the customer without interacting or listening to them to one in which we're constantly gathering helpful feedback through collaborative engagement.

Microsoft distributed a video a few years ago that does a great job of demonstrating the weaknesses of the old model. In it, the relationship between a business and its customer is compared to a failed romantic relationship. The lack of meaningful interaction between the two results in a laughably bad level of insight, misplaced efforts and eventually the loss of the customer. >> Video

The reason for social CRM is generating so much noise right now is that we can finally get the information we need to avoid this type of result. A robust social CRM strategy is crucial to gaining market share and maintaining satisfied customers.

It's important to remember that social CRM is first and foremost a strategy rather than a particular product, process or simple replacement of an existing CRM system. Like any other business process, social CRM will be of greatest value if you closely tailor it to your needs, ensuring you make the most out of improved customer engagement. Rather than simply using it to inform marketing and sales strategy, take the insight deeper to shape pricing, product development, customer service, and the supply chain.

Through social CRM, businesses are finally able to listen to the consumer in the way we've always wished, allowing them to react, respond and deliver an improved customer experience.