To understand Social CRM (SCRM), we need to have an understanding of CRM and Web 2.0 that serve as building blocks for the Social CRM. CRM has been around for two decades now and has been used by both small and large companies to keep track of their customers. CRM is the process used to capture the interaction of the customers with the organization, that can be analyzed and the organization can try closing a sale more efficiently or resolving some issues. CRM is about acquiring retaining and growing customers Examples of popular CRM systems include Sales force, Zoho, Sugar CRM, and many others. CRM begins with the analysis of Customer Behaviour for understanding their needs and wants. SCRM is use of social media techniques and technology to enable organizations to engage with their customers. It is built on a strong foundation of CRM by merging of social networks with CRM to help companies manage and build customer relationships. Web 2.0 and Social Media fundamentally converts communication into a dialogue among web-users as well as organizations and their target groups. They supports a customer-centric management by providing new opportunities for collaboration and co-value creation which SCRM addresses these opportunities and deals with the integration of Web 2.0 and Social media and CRM. Traditional CRM is a technology based framework on a set of linear, internally focused processes around the three key areas of marketing, sales, and service & support, used by companies of all sizes and by several departments. SCRM on the other hand moves beyond management of customers, transactions, and money with a focus on strategy, customer engagement and relationships. It moves one step ahead in addressing its potential customers as well. At a minimum social CRM needs to enable organizations to gain insight and information from social media channels and take action with consumers by engaging online and participating with them via communities and conversations. If used well, social CRM provides enhanced insight that will increase the positive reputation and influence. Successful Social CRM strategies facilitate collaborative experiences and dialogue that customer’s value. Social CRM thus presents many opportunities to build a distinctive capability that can serve as a building block of high performance: a method to potentially connect more tightly with customers at lower cost and in a way that provides a real differentiation from competitors.