Customer Service | Engagement | Social Media

Customer Service & Engagement John Moore

Presented Jan. 29, 2010 American Strategic Management Institute Washington D.C.

The leading voice for ethical and effective Word of Mouth and Social Media Marketing

www.ENGAGEMENTdb.com

“… companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference.” pg. 6 www.ENGAGEMENTdb.com

Starbucks Q3’09 Earnings Call Transcript July 21, 2009 Howard Schultz: “We were just named the number one brand in a new social media engagement report.” “The key here is that we are connecting directly with our loyal customers who will be driving our future growth.”

over 5,300,000 Facebook fans PageData.InsideFacebook.com

BRANDWEEK: How are you taking this online chatter and translating it to ROI for the brand? “We certainly look at a few things.” •  Emotional connections •  Human connections •  Adds to the bottom line business Alexandra Wheeler digital strategy director, Starbucks source | Brandweek, August 1, 2009

“It isn’t a marketing initiative. It isn’t a PR initiative. It’s cultivating and creating great consumer value and great customer relationships.” Alexandra Wheeler digital strategy director, Starbucks source | Brandweek, August 1, 2009

17% of time spent on the Internet is on Social Media websites source | Rubicon Consulting study (Oct. 2009)

Fortune 100 Companies… 54% have a Twitter presence 32% maintain a Blog 29% are on Facebook source | Burson-Marsteller & Digital Media Study (June 2009)

Social Media No longer IF, but HOW.

Word of Mouth is the original Social Media

Over 3,000,000,000 word of mouth conversations take place everyday in the U.S. source | Presentation from the Keller Fay Group (2009)

76% of consumers believe companies are untruthful in their advertising source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

78% of global consumers say they trust recommendations from other consumers source | Nielsen’s “Trust in Advertising” Report (2007)

The typical American takes part in 125 conversations per week that discuss products and services source | Keller Fay “ Talk Track” report (2008)

Of those 125 conversations, specific brands/companies are mentioned 90 times source | Keller Fay “ Talk Track” report (2008)

68% of WOM conversations are mostly positive 8% of WOM conversations are mostly negative source | Keller Fay “ Talk Track” report (2009)

“When consumers write reviews online ... the average grade is 4.3 stars out of 5.” source | Wall Street Journal article (Oct. 5, 2009)

“For marketers, it’s not Twitter that matters, but Twitterers.” source | Blog post from Augie Ray, Forrester Analyst (Jan. 20, 2010)

Twitterers are 3x more likely to be “Creators” than the general U.S. population source | Forrester Report (Dec. 2009)

22 % 78 WOM % Sparked by Sparked by Advertising Something else source | Keller Fay “ Talk Track” report (2009)

ONE TWO THREE Explaining Great Remarkable how a Customer and Product or Service or Entertaining Service Experience Stuff Works source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

“When you hit a wrong note, it’s the next note that makes it good or bad.” MILES DAVIS

“You can play a shoestring if you are sincere.” JOHN COLTRANE

SIX KEY POINTS

ONE Social Media helps small companies look bigger and big companies get smaller

source | http://www.flickr.com/photos/cyv2/2529963389/

source | http://www.flickr.com/photos/shelisrael/2733087410/

source | http://www.flickr.com/photos/lilhlfpint/2470960013/

source | http://www.flickr.com/photos/helio/1740910023/

TWO Listening and responding are highly under-utilized marketing strategies

“The most important thing I look for in a musician is whether he knows how to listen.” DUKE ELLINGTON

If a brand lacks confidence, then it will not want to listen to negative conversations.

“Most of the social media engagement has been responding, listening, and connecting with fans, which is important because it builds loyalty.” Porter Gale VP Marketing, Virgin America

What’s happening? 140

What’s happening? 80% of tweets are from Meformers. Postings about insignificant doings. What’s happening? 20% of tweets are from Informers. Those who share informational news, incl. links source | Rutgers University study (Oct. 2009)

What’s happening? The typical Meformer has 61 friends and 43 followers. What’s happening? The typical Informer has 131 friends and 112 followers. source | Rutgers University study (Oct. 2009)

69% of businesses on Twitter post at least 4 times per week source | Burson-Marsteller & Digital Media Study (June 2009)

source | http://www.flickr.com/photos/obie/505082130/

In many ways, the Internet has become an extension of your Marketing department.

Your goal is to become an INVITED GUEST with online conversations.

Invited Guest! everyone! Equal Parts:! LISTENING! LEARNING! RESPONDING! Mix and Serve!

THREE Measure and monitor what matters most in the online conversation

www.Radian6.com

www.ScoutLabs.com

evolve24.com nielsen-online.com overtone.com jdPowerWebIntelligence.com motivequest.com

“We’ve tried all the off-the-shelf monitoring applications. None work as well as the free tools.” Daniel Sundin Intranet Manager, PETCO source | WOMMA Brands Council Webinar (Oct. 2009)

www.TweetDeck.com

google.com/alerts

Reach Frequency Topic Tone Credibility

Reach the breadth and depth of the online conversation

Frequency how viral the conversation becomes

Topic the issue or issues being discussed

Tone the overall sentiment

Credibility the trustworthiness of the talkers

FOUR Buzz does not Create Evangelists. Evangelists Create Buzz.

! BUZZ

Average life expectancy of a Fortune 500 business 14,600 days source | THE LIVING COMPANY, Arie de Geus

Average life expectancy of a Small Business 3,100 days source | SMALL BUSINESS DESK REFERNCE, Gene Marks (editor)

DOT LINE

FIVE Fix your “Broken Windows” before engaging online

Broken Windows Theory

Broken Windows Theory Higher crime rates occur in cities when broken windows are left unrepaired because people will conclude no one cares enough to fix them.

Broken Windows Theory

Broken Windows Theory Broken windows are visible signs to customers that a business doesn’t care, that it is poorly managed, and that it inadequately deals with little details.

SIX Social Media as a customer service channel can become a great employee recruiting tool

“No one visits a website’s home page anymore — they walk in the back door, to the page Google sent them to.” Seth Godin Meatball Sundae (2007)

Dell corporate culture

“By participating in the blogging conversation, Sun is able to communicate its corporate culture to not only customers, but also to current and future employees.” Jonathan Schwartz ceo, Sun Microsystems

Customer Service & Engagement John Moore

www.WOMMA.org johnmoore@WOMMA.org

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Customer Service | Engagement | Social Media

by Brand Autopsy Marketing Practice on Jan 29, 2010

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Customer Service | Engagement | Social Media Presentation Transcript