So first what are the goals of CRM? Knowing the customer. Being able to have enough insight into the customer to persuade the customer to buy more, become more intimate - generally increase their direct value. Maybe to right wrongs - by providing compensation if bad things happen. So CRM tends to foster a set of 1:1 exchanges. Necessary but not sufficient.
In contrast social media is about somehow leveraging an network of relationships. It's one stage on from CRM (or maybe many stages beyond CRM!). So if I have a bad experience on an airline, I need the airline to do what t needs to do for compensation. But the social aspect doesn't stop there. I am heavily armed with well connected devices, a network of acquaintances and friends and time - especially on the flight. So in some ways the Social Network space is a competition between the airline provider, and the customer. Rach trying to get "the story" out to their social network orbits. The magic happens when the stories coincide - when the CRM aspect of looking after me is also told by the airline and by me. The double dip of great publicity.
But when things go badly for a customer (e.g. my luggage misconnected) then the bad story needs to be acknowledged. Through the social channels - posting on the passenger's FB wall for example, and some compensation placed at the same time. Otherwise the annoyed passenger with lots of time will send out a stream of invective to any/all who may listen.
So when thinking about Social Media realize:
- It's a conversation
- It's about the whole orbit
- Don't forget to do CRM blocking and tackling