CRM 'could be compromised' by social media

Customer relationship management (CRM) could be undermined if a business fully embraces the likes of social media to improve sales, it is believed.

Siim Vips, the chief executive officer at Modera, explained that many companies are tempted to use social media as it serves as a good advertising platform, yet many are not comfortable with exporting their trade to shopfronts or stores within these sites.

He said that by retaining transactions across their own sites, they are less likely to lose control and even "dilute their brands" in the process.

Mr Vips added that CRM efforts could also be compromised, adding: "In addition to this, they also lose the opportunity to cross over other products or services including any offers, deals, or benefits that the consumer may have with them."

His comments follow an announcement by 1-800-Flowers, a US chain of stores, which recently opened a Facebook "storefront", an application where users can purchase and send flowers.

Small Business Management Software from Atlantic Global OnDemand.

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