ON-DEMAND MOBILE CRM APPLICATIONS FOR SOCIAL

MARKETING

Business and Technology Perspective

Viktor Kaufman

SAP Research, Karlsruhe, Germany

Yuri Natchetoi

SAP Research, Montreal, Canada

Vasily Ponomarev

NPP Rumb, Moscow, Russia

Keywords: CRM, mobile, social marketing, collaboration, customer loyalty, mobile application, application design.

Abstract: Solutions for Customer Relationship Management (CRM) tend to evolve from the traditional passive

recording of transactions between the Company and the Customer to agile optimized strategies for

interaction and cooperation with the Customer. Despite considerable industry and research interest to the

new ”social” CRM 2.0, the gap between the vision and the reality is still quite large. Use of handheld

devices deserves special attention in this respect. Although it can boost sales, customer satisfaction and

customer loyalty, the amount of research work and the number of mobile applications in this area is low. In

this paper, we focus on design and implementation of mobile social CRM solutions, which make extensive

use of collaboration technologies. By means of simple business use-case scenarios, we argue that good

understanding of business objectives, business processes, and technology issues, together, is crucial for

development of compelling social CRM applications.

1 MOBILE SOCIAL CRM

Nearly every business needs some kind of CRM

solution, even if it is not a specialized CRM

software system. Banks, Insurance Companies, e-

Businesses, non-profit and Public Sector

organizations - all focus on serving their customers.

A large CRM component is usually integral part

of enterprise business-software landscapes. SAP,

Oracle, Salesforce.com, and others are the

established proprietary software vendors. Smaller

companies also process information that is typical

for CRM, such as leads, contacts, accounts,

promotions, sales orders. In any case basic data

management, activities tracking, and reporting

functionality implies high maintenance costs.

Especially costly is customer-acquisition support.

As the efficiency of traditional mass-marketing,

such as TV, radio and direct mail, constantly

decreases, companies face the need to review their

CRM strategy. One promising cost-effective and

otherwise strategically interesting approach is called

Social CRM or CRM 2.0 (Band, 2008). Social CRM

recognizes the fact that mass advertising is not

appealing enough to customers and advocates more

attentive and interactive approaches to foster

customer relations. Due to the rise of the Internet

and increased level of public knowledge, customers

will rather actively search for information they need.

They will leverage their social networks and trust to

their friends and other customers like them. When

making a choice to buy a product or service, they

will ask opinions of members of their social network

(Webber, 2007). Social CRM extends the

collaborative CRM and focuses more on support of

397

Kaufman V., Natchetoi Y. and Ponomarev V. (2008).

ON-DEMAND MOBILE CRM APPLICATIONS FOR SOCIAL MARKETING - Business and Technology Perspective.

In Proceedings of the International Conference on e-Business, pages 397-404

DOI: 10.5220/0001911703970404

 SciTePress

co-operation and customer-involvement aspects of

customer relations.

With regard to CRM objectives, mobility brings

a number of advantages. Due to the ubiquitous

nature of the mobile communication (Virki, 2007), it

is especially suitable for social marketing. Most

often, consumers and sales agents wish to make

decisions when they are away from their computers

and have limited access to information directories.

Leveraging broad availability of mobile devices can

facilitate ease of relevant information access,

advanced customer service, and field workers

support (Sudan et al., 2007). In Section 4 we discuss

how this eventually leads to CRM-effectiveness

gains.

Mobile social marketing is a new concept, but its

role rapidly becomes perceived as significant for

CRM promotion and delivery strategies (Webber,

2007). We consider mobile social marketing a “must

have” element of the future integrated CRM

solutions. Possible concrete applications include

managing social links on the mobile phone,

receiving recommendations, consulting community

opinions about products, tagging, rating, promoting,

and ranking goods and services on the move.

Retailers could get additional means to gather

information about consumer preferences and

forecast consumer needs. Advanced applications can

take care of mobile access to a marketplace, where

retailers and consumers search for products and

services with the best quality-price ratio, place their

orders directly in the back-end CRM system etc. The

vast popularity of content-generation modes in the

context of social networking web sites (Vaske,

2008) suggests support for mobile exchange of

subjective information related to products and

services. Software vendors already support some of

these ideas, although the major business-acceptance

breakthrough requires more time.

1.1 Market Overview

Jim Balsillie, co-CEO of RIM, Canadian wireless

device company, says (Lomas, 2008) that the need

to seamlessly integrate Web services and desktop

applications onto handsets “is not a concept. This is

a reality”. He further mentions: "Once social

networking becomes a B2B phenomenon – not

unlike IM and texting – I believe every single social-

networking user will want a data plan".

SAP and some other major vendors of CRM

solutions closely follow the new developments.

Recently, social-networking B2B approach has been

chosen to drive adoption of SAP software by small

and medium-sized businesses (Darrow, 2008). The

influencers can get incentives for registering and

closing leads in the company’s CRM system.

Recently (Oracle, 2008), Oracle announced

Mobile Sales Assistant for company’s CRM on

Demand solution that”changes the face of mobile

CRM”. It features user collaboration with colleagues

and customers, push-based architecture for

Blackberry®, one-click-away account information

and customer contact information, and more for $30

per user per month.

During the iPhone™ Software Development Kit

announcement, March 6

2008, Salesforce.com

demonstrated its ability to bring its innovative CRM

on-demand services onto the iPhone platform and to

provide new level user experience. Social mobile

CRM applications are to be expected soon.

Microsoft has only recently entered into the

CRM market with Microsoft Dynamics CRM 3.0.

Their Mobile CRM solution works only on the

Windows Mobile Pocket PC devices. For now, it

provides salespeople with up-to-date information

about their accounts and contacts, and helps them

manage sales opportunities and track sales-related

activities.

Arvato Mobile offers a set of advanced building

blocks for mobile CRM. They provide for engaging

user experience including games, send-a-friend,

sponsored pop ups, communication via SMS, MMS

and more. The tool set both aims at “customer-club”

for customers and supports statistical data

aggregation for CRM.

Kintera Inc. recently launched Kintera Sphere™

v8.0, company’s new social CRM system for non-

profit organizations, providing a total view of the

constituent's relationship with the organization

(CRM Today, 2008). The company claims to have

considered factors such as enhanced trust, sense of

belonging, instant gratification, emotional release,

and sense of social impact. These features are

definitely interesting for mobile applications too.

In the light of described mobile social CRM

developments, the question remains – when and how

will new solutions actually enable sales

professionals to better understand and address their

customers' needs, anytime and anywhere. As

companies move from products to solutions, the

technology imperative is to enhance the business

acumen and insight of the front line, which has not

been the traditional goal of CRM. The business

condition precedents to business-acceptance of

innovative CRM solutions have to be understood in

the first place see Sections 2 and 4. The challenges

for "technology enablement" leading to effective

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398

selling supported by CRM will be presented in

Section 3. Our view is based on own applied

research in the mobile CRM area described in

Section 4 and summarized in Section 5.

2 YET ANOTHER CRM WITH

MOBILITY SUPPORT?

Mobile access to back-end CRM systems is not new

(Sadeh, 2002). In what respect are mobile social

applications different? In our opinion, the answer

can be found between the lines of the previous

Section – it is the challenge to better meet business

objectives by means of supporting and influencing

complex human interactions. The idea is that

customer and partners feedback, or ability to

collaborate, and not so much stiff internal processes,

drive customer relations, marketing and sales.

Dynamically changing customer relations and the

need to often review company’s self-perception in

the market add to the overall complexity.

There is no one good solution, but poorly

serviceable solutions are easily made. As the

businesses remain sceptical, solution designers look

for ways to control the complexity. In a nutshell, two

approaches are under consideration by researchers

and practitioners. The first becomes increasingly

accepted and advocates use of general-purpose

collaboration-support tools like Email, push-alerts,

Instant Messaging, chat, mashups etc. alongside the

company’s CRM processes. While there is nothing

wrong with this approach, care is needed to decide

whether it is appropriate. The costs of putting a

solution into operation and maintenance costs can

easily exceed the expected benefits (Galdy, 2008).

The second approach is to adapt and extend

existing business processes. In (Band, 2007), the

authors suggest the following four steps to build

compelling CRM applications: 1) define and

quantify business goals; 2) formulate CRM

strategies and tactics; 3) establish appropriate CRM

measures; 4) link CRM goals, strategies, and

metrics. Forrester advocates another four-step

strategy called POST (Bernoff, 2007): P) review the

Social Technographics Profile (decide what is

possible, customers are divided into groups like

Creators and Inactives); O) pick an objective; S)

choose a strategy; T) select and deploy appropriate

technologies and measure results.

We argue that both approaches have advantages

for mobile social CRM, but undervalue the

intrinsically unstructured nature of customer

interactions. The first approach needs dedicated

control mechanisms to canalize and manage

customer relations. The second approach contradicts

with the idea of lightweight intuitive support for

customer and partners interactions. Due to the

formalization requirement, the processes can easily

become incomprehensible or inflexible. We have

chosen a mixed approach, which avoids undue

quantification and specification of desired

interactions, but puts strong emphasis on thought-

out, informal, early and iteratively adaptable

specification of the desired mobile social CRM

solution.

We recognize that most important aspects of the

social CRM are: 1) efficient cooperation with

customers and partners; 2) efficient collaboration

between CRM and non-CRM employees within the

company; 3) supporting and enlarging existing

relationships among customers and 4) shifting focus

from the sales volume to better customer experience,

compare also (Paterson, 2005). In fact, most mobile

CRM solutions fail to address some or all of these

issues. In our opinion, this is because of the

mentioned complexity and practical difficulty of

involving business analysts, technical experts,

scientists, field workers, and customers early enough

in the solution design.

We believe that transparent and flexible design

principles constitute the best way to gradually

accumulate expertise of the many people

contributing to a compelling CRM solution. We

follow an approach, where the following three steps

are being largely addressed in parallel: 1) define and

understand business objectives (market research,

defining specific CRM measures, customer group

focus etc. can be part of this step, but general

understanding of implications of the business

objectives is more important); 2) choose business

processes (in the first place, we identify use-case

scenarios to focus on); 3) address technology issues

This step is indispensable especially for mobile

solutions. The architectural framework described in

the next Section facilitates reuse of components, but

some redesign and customisation are still necessary,

depending on the desired business processes. Next,

we proceed with step 3) and then exemplify steps 1)

and 2).

ON-DEMAND MOBILE CRM APPLICATIONS FOR SOCIAL MARKETING - Business and Technology Perspective

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3 TECHNOLOGY PERSPECTIVE:

APPLICATION DESIGN

When designing mobile extensions to the Enterprise

CRM applications, one must be careful to

distinguish traditional software applications and

specific functionality in a mobile-enterprise software

context. It is impossible to deploy the entire

business-software system onto a mobile device. The

challenge is to transmit only the relevant business

information and implement software functionality

required for selected processes.

Figure 1: Architecture overview.

The known limitations of mobile devices are:

connectivity, processing power, usability, security

concerns, and memory requirements, but mobile

devices also have some advantages, such as multi-

modal input and high level of availability. All these

considerations have to be taken into account. For

social mobile CRM applications, there are additional

requirements due to on-demand support of often

changing customer interaction patterns.

With our business application framework

(Natchetoi et al., 2008), we have implemented

Mobile CRM client as a Java midlet and native

Objective-C application for iPhone. In our solution,

neither the business logic nor the user interface

forms are hard-coded in the client application.

Instead, the client application partially implements

interpreters of open industry standards like SOAP,

RDF, OWL and XForms. The application logic and

user interface can be easily modified or augmented

at low cost, since we are using standard formats and

collaboration concepts such as mashups from the

Web 2.0 tool set, see (Natchetoi et al., 2007) for

details on our mobile business-oriented browser. For

an example, user experience can be enhanced by

adding XForms accessing back-end Business

Objects exposed through SOA Web Services.

To lighten the application, only subsets of the

mentioned standards are used. For example, a very

limited version of the full BPEL interpreter is

implemented on the mobile device, which enables

basic composition of the workflow scenarios using

local and remote services (Hirsh et al., 2006).

The components overview of our architecture is

presented in Figure 1. In our Framework, the CRM

business-data objects are being serialized,

compressed and transmitted to the client side in the

form of a compressed RDF messages. The

information is stored in the local Persistent Data

Store, also in the compressed RDF format, making it

possible to store a significantly larger number of

business objects as compared to a traditional file

system or relational database. The Framework

enables Web service calls and pro-active download

of data required later on in the asynchronous

business process. The client application uses the

locally stored data to support off-line work.

Efficient connection to and data synchronisation

with the back-end Enterprise system is very

important for field workers. We use asynchronous,

message-based communications for this, as they are

a better fit in the mobile environment. The Smart

Asynchronous Connection Manager (SACM) is a

unified manager of asynchronous communications

between and with mobile clients. The standard

communication protocols supported by now are

TCP/IP and SMS. We designed suitable API to

asynchronously send messages from the client to the

server, from the server to the client, and between the

clients. The SACM does not explicitly distinguish

clients and servers so that it also suitable for mobile

Peer to Peer scenarios.

Figure 2: Sample screenshots.

Our Mobile CRM prototype based on the

introduced Framework enables sales agents to

establish interactions using comprehensive persistent

knowledge about the constituents and provides a

centralized way to persist and manage customer

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400

relationships information. Mobile CRM workers can

update business information, browse reports and

invoke Web Services remotely. They can access the

CRM application functionality both online and

offline. The mobile CRM has been developed for

iPhone (Finkle, 2007) and for J2ME-enabled phones

using the same Framework.

Figure 3: Sample screenshots of the mobile CRM

application.

The Framework enables simplified adaptation or

extension of existing applications. Beyond the basic

Contacts, Leads, Opportunities, and Sales Orders

management, we implemented some collaboration

Services supporting multi-channel communication

of sales agents, in a way inspired by ECOSPACE

project (http://www.ip-ecospace.org). For now, we

support Email and Fax access, and Instant

Messaging integrated into CRM-processes context.

In the next Section we describe further functionality

relevant to mobile social CRM, which we could

support in the future.

4 BUSINESS PERSPECTIVE:

ENABLEMENT OF SALES

PEOPLE AND CUSTOMERS

Social CRM is essentially about interaction with

customers. The sales people and the customers are

the prominent interacting parties. It is therefore

natural to support them in the first place. This simple

assumption already sets priorities for the

functionality and the needed technology. We

herewith assume that interactions drive the

development and customization of CRM

applications.

There are still different kinds of customers,

sales people and interactions. Traditional CRM

solutions would establish order by suggesting "best

practice" processes out of the box. This is not

enough, though, in the world of ever more rapidly

changing requirements and increasing customer

expectations. As described in Section 2, we have to

focus on specific business objectives, using selected

business processes.

The corresponding decisions include

understanding of company's actual or desired core

business strengths and deriving strategic objectives

for interaction with customers. The objectives have

to be detailed by taking into account customer

profiles, relevant market researches, anticipated

trends etc. They can be focused on a particular

customer segment, technology, measurable

performance indicators etc. In any case, the

decisions should lead to a carefully selected set of

desired customer-interaction-support scenarios,

which have to be continuously validated against the

business objectives and provide for differentiation

from the competitors.

To test and further develop our mobile CRM

application and our mobile Framework, described in

Section 2, we were looking for some innovative

scenarios, which we could implement in the near

future. It became clear that we needed to define a

compelling set of objectives first. Let us consider an

example.

Imagine a Service provider company. It has to

face harsh competition. To survive the next drop in

prices, the company decides to save on traditional

marketing and to leverage the knowledge of loyal

customers about the company's quality services. The

management wants customer retention to be

addressed more; hopes to be able to provide added

value especially for new customers; and strives to

differentiate the company from the competition. To

achieve their plans, the management considers the

following use-case scenarios.

4.1 Set of Scenarios 1

The company needs ways to communicate to its

loyal customers. Those customers are presumably

rather busy and sceptical about advertisements.

Therefore, for most scenarios described below,

traditional communication channels through mail,

email, and telephone would be considered annoying

and would be too inefficient. The company decides

to go for frank short conversations with rather

obvious added value for the customer, and sees

handheld devices to be best suited for this.

One option would be to cooperate with a mobile

carrier and provide mobile services, including the

ability to send SMS or other kinds of messages to

the customers. Another option would be to provide

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mobile applications for download. Also it is possible

to cooperate with a handheld devices vendor. The

last two options are much more flexible, compare

below, and the corresponding applications would

make use of the technical architecture described in

the previous Section.

4.2 Set of Scenarios 2

The company is interested in most active,

experienced, or otherwise influential persons among

the customers. Determining such customers is to

some extent similar to representing the customer

base as a “social network”. The company can make

an educated guess that loyal customers or customers

with high amount of orders are potentially valuable

collaborators. To facilitate their retention and to test

the guess, it offers the selected customers to forward

a small gift to a person of their choice (but not

themselves). The gift can be limited Internet domain

contract, free SMS pack, credit points for some

services, etc. The choice of gifts can be made more

intelligent later, as the “social network” is growing.

The customers have the choice not to store the

delivery address at the company, since the mere act

of forwarding is enough for the company's purposes.

As soon as the influential customers are known,

one can offer them certain incentives and ask to

recommend the services. The company offers to

conduct a counselling interview. The influential

customer suggests time and enters contact details of

her friend. The company can reassure the influencer

of its quality counselling, including comparisons

with similar services offered by competitors.

4.3 Set of Scenarios 3

The company might need some user feedback on

provided services. One idea would be to offer a

downloadable game, which becomes activated after

the customer has completed a short satisfaction

survey. Playing the game, the customer may have

the option to share her view on possible

improvements for company's services. For specific

services, it may be possible to review other users'

feedback, and even to discuss them in a kind of

forum, adapted for mobile use. Considering the

technical reality of mobile users is facilitated by the

appropriate technical design.

Especially new customers would benefit from

sharing their problems-SMS in the forum. This

service can be supplemented by an Internet based

online community.

4.4 Set of Scenarios 4

Selected “premium” users can earn gifts, reputation,

or even money by helping out in the scope of their

experience. The company provides them with a

mobile tool, which effectively counts them to the

product support team. They receive and answer

questions, concerns and ideas of other users, answer

and forward them. They can exclusively send their

own requests to the company's support team

members. The application architecture described

before would even allow certain direct changes in

the back-end systems on their behalf. Multimodal

input would facilitate simple upload of a picture,

video, or voice explanation to the designated online

space, possibly, after review of company's

responsible employees. The interested other

customers can be notified directly of this event.

Next, the chat functionality facilitates

communication. To achieve even more customer

loyalty, additional services of social value like

exchange of contact details or introduction of

customers with similar profile to one another can be

offered.

4.5 Set of Scenarios 5

Sales agents use back-end services directly on their

mobile phones. They also benefit from the emerging

social space. They can tap the experience of

“premium” customers or ask them for references.

The sales agents can exchange thoughts and business

content through chat and other functionality, which

is deployed on their mobile phones. As a side effect,

the company can perpetuate discipline in using back-

end CRM system and, through collaborative style of

work it can uphold the sense of mission for sales

agents. Similarly to customer feedback, sales agents

can communicate their concerns directly to the sales-

support team.

4.6 Advanced Scenarios

To strengthen its market position by means of key

differentiators, the company plans to provide special

kinds of services, based on its customer-base

information. The company's customer profiles

include information on their mutual relationships

and joint activities. It is now possible to derive or

extract information, which can be used for strategic

decisions. The customers can be divided into

segments; the adoption level of selected scenarios

can be measured etc. Some of the corresponding

analysis results should be available on the mobile

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phones for sales agents. Our framework described

before allows to rather easily extending applications

to include reporting functionality.

Given the metadata about joined CRM activities,

mathematical analysis of gathered data can be

performed. For example, business classifications can

be tested and improved by means of probabilistic

methods like dynamic Bayesian networks (DBN)

and dynamic conditional random fields (CRF)

(

Lafferty et al., 2001). Promotion scenarios and

playing with what-if scenarios becomes possible.

The “social network” data can be enriched with

data shared on the social sites like MySpace or

Facebook. Then, also cross-selling opportunities and

more broad marketing can be pursued. Mathematical

analysis can identify potential new customers.

4.7 Implications of Scenarios Use

The general message of this Section is to focus on

customer and sales-agent needs as much as possible,

and at the same time to achieve the company's

objectives. Through more focused approach,

flooding customers with irrelevant advertisements

becomes superfluous. The described scenarios show

how customer retention, market penetration,

decision support, and powerful reporting can be

achieved. Establishing relevant social processes

would push the limitations of the traditional CRM

applications far into the area of more educated

Social CRM, with Mobility providing added value.

4.8 Experimental Evaluation

We are in the evaluation phase of the approach,

presented in the paper. It is difficult to evaluate such

characteristics as user’s trust quantitatively. We have

tested our Mobile CRM client prototype with users

from 11 different industries. Most of them have

ranked the Social Marketing and Collaboration

elements of the prototype as “somehow useful” and

“very useful”.

In order to verify our ideas on Social Web-based

Marketing approach we have also implemented a

Web portal targeting the young people, students and

young families living in Moscow. The portal, funded

by the Moscow Government with highly dynamic

content provides various information services to the

citizens. The advantage of taking Social approach

for building this portal is obvious because it is

targeting different categories of users, living in the

same city and often linked to each other.

The portal informs citizens about municipal

programs as well as helps them to get education,

find job, plan entertainment and receive consulting

support from the social aid experts. The portal is a

complex proprietary CRM system, treating citizens

as clients, served by the municipal Government. It

includes multiple elements of collaboration, smart

content classification and auto-actualization. The

content addressed to the different categories of the

users passes through the actualization engine that is

based on linguistics structure-based classification

approach to direct content to the appropriate group

of the users. (Ponomarev 2004) The feedback,

collected from the users is processed in order to

improve auto-actualization procedure in iterative

way.

The results of three-year long experiments of

using Social approach for this portal have been

collected in order to evaluate the efficiency of the

taken approach. However, the efficiency of such

solution is difficult to express in numbers, because

the goal of such Social portal is not the sales

volumes but rather the trust and satisfaction of the

users. The results of the customer satisfaction

surveys, taken by the users during the period of two

years indicate a strong positive shift in the “brand”

loyalty and customer satisfaction. (Ponomarev 2005)

However, we are still looking into the different

approaches to quantify user’s satisfaction and trust.

We are also looking forward to implement mobile

access to the Social portal for youth and make this

feature available to all users.

5 SUMMARY

Mobile social CRM is a new concept that promises

more focused, rewarding, engaging and powerful

way to build long-lasting customer relationships.

Use of Web 2.0 collaboration technologies can

provide major benefits. These benefits come at a

cost of more responsible application design. The

CRM applications have to become agile with regards

to the needed functionality. Mobility support is

especially technically demanding.

Furthermore, regardless of the available technical

expertise, the usefulness of applications has to be

derived from thought-out business requirements. A

formalisation of suitable business requirements for

less structured collaboration and communication

processes is difficult by definition. To circumvent

this issue, we suggest following loosely defined

steps suitable for unstructured nature of pervasive

interactions in social CRM. In short, these steps

define business objectives, business processes and

enabling technology.

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Grounded decisions on the overall business

objectives, in the first place lead to requirements for

a draft technical architecture with flexibility for the

unstructured organic growth processes in mind. One

has to consider expertise from relevant vertical

divisions of the company, identify use-case

scenarios in as many details as possible, consult

potential users, and particularly take care of

community support, make decisions on the scope of

the scenarios to support, adjust the technical design

to ensure adaptability with respect to the scenarios

and provide the software lifecycle support. Many

steps can be taken in parallel, but they all require

continuous exchange between the stakeholders, and

are best elaborated gradually. Transparent simple

design principles constitute the best way to gradually

accumulate expertise of the many people

contributing to a compelling CRM solution.

In this paper, we exemplified the mentioned

points. We considered scenarios to support

proliferation of business for a Service provider. Due

to flexible technical design, our prototype mobile

CRM application can be extended to support many

of the business scenarios at a very low cost. We

outlined the important technical decisions.

We also discussed provision of advanced back-

end functionality, such as analysing community

structure and producing powerful reports. Such

advanced functionalities can serve as a key

differentiator from the competition.

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