Social Media Monitoring Addition Adds Social Customer Insight To Lithium’s Community and Social CRM Offerings
Lithium, a social CRM (SCRM) and community platform vendor announced today it had acquired Scout Labs, a social media monitoring (SMM) provider. According to a variety of sources, the estimated purchase price for the deal ranged between 20 and 25 million. Conversations with Emeryville, CA, based Lithium over the past week highlight the importance of two themes:
- Actionable insight as a foundation for SCRM. As Scout Labs CEO, Jennifer Zesut, mentioned in her blog post, this acquisition is about having the right level of data for organizations to make decisions. Social media monitoring enables Lithium to engage customers beyond the community platform and into other conversations happening in social communities. A community platform and Social CRM offering brings life and relevance to Scout Labs’ technologies.
Point of View (POV): Scout Labs adds both a strong analytical platform and easy to use visualization tools to Lithium’s extensive SCRM offerings. Lithium now has the capability to tie SMM to its customer community apps and SCRM suite which enables the foundation of social CRM – social customer insights or F1. Should the post-merger integration be successful, Lithium’s customers can integrate Scout Labs SMM tools to monitor, map, and measure online channels to bring social conversations and interactions back into the community platform.
- Acquisition synergies beyond technology fit. Lithium intends to not only integrate Scout Labs into the platform, but also leave ScoutLabs as a stand-alone solution. With over 500 customers in the mix, Lithium brings organizations such as AT&T, Barnes and Noble, Best Buy, Lenovo, PayPal, RIM, Sony, and Univision to the mix. Scout Labs brings CocaCola, Disney, McDonald’s and Motorola. Both vendors delivered SaaS based solutions.
POV: The acquisition provides both a technology and a significant customer acquisition play. Lithium now has the opportunity to cross-sell its solutions into the Scout Labs customer base. However, the more likely scenario will be up-selling Scout Labs back into the Lithium base. Features such as BuzzTracking, Conversation Digest, Persistent Searches, and Rants and Rave often top the list of favorites among customers and prospects. More importantly, the Scout Labs sales force and sales management will add a relationship based approach to the sales culture.
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(Cross-posted @ A Software Insider's Point of View)