Social Networking for Customer Contact, Ready or Not ---- Here It Comes

1,501 views
1,437 views

Published on

Frost & Sullivan analysis: Social Networking for Customer Contact, Ready or Not ---- Here It Comes

Published in: Technology, Business
0 Comments
9 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,501
On SlideShare
0
From Embeds
0
Number of Embeds
19
Actions
Shares
0
Downloads
17
Comments
0
Likes
9
Embeds 0
No embeds

No notes for slide

Social Networking for Customer Contact, Ready or Not ---- Here It Comes

  1. 1. Social Networking for Customer Contact Ready or Not ---- Here It Comes Joe Outlaw, Principal Analyst – Contact Centers Jake Wengroff, Global Director, Corporate Communications March 10, 2010
  2. 2. Today’s Presenters Joe Outlaw, Principal Analyst Frost & Sullivan Jake Wengroff, Global Director, Corporate Communications Frost & Sullivan 2
  3. 3. Pop Quiz: How many tweets have appeared on Twitter? A) 50 million B) 100 million C) 500 million D) 1 billion E) 10 billion 3
  4. 4. Pop Quiz: How many tweets have appeared on Twitter? ANSWER: 10 billion – March 5, 2010 -- 5 months after Twitter announced its 5 billionth tweet; now forecast to reach 11 billionth in next 20 days. 4
  5. 5. How Does Your Company Use Social Media? Brand/Corporate Positioning Gain New Product and Service Ideas Key Uses Make New Connections and Grow Business Engage with Customers and Receive Feedback Use for Internal Communications and Training 5
  6. 6. Real Enough? • 300 million active users • 50% log on everyday • fastest growing demographic – over 35 years old • supports 69 languages • 70% of users - outside the United States •50 million tweets/day •75 million users •20% contain product or brand references • 48 million over 200 countries; 1 joins each second • 50% of members - outside the United States • executives from all Fortune 500 companies are members •serving 1 billion videos per day •every minute, 20 hours of video uploaded 6
  7. 7. Perceived Value of Social Networking Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately) Perceived Values of Social Networking (N=952) Highly Valuable Moderately Valuable Low Value No Value At All Don’t Know Mean 3.4 Gain Additional Customers 54% 34% 7% Scores Increase Customer Satisfaction 54% 35% 7% 3.4 3.5 Get Consumer/Customer/Client Feedback 53% 35% 7% Get Low-Cost Exposure/Public Relations 53% 35% 7% 3.4 Reduce Operating Costs 52% 35% 9% 3.4 Increase Revenues Per Customer 51% 36% 9% 51% 38% 6% Increased Collaboration 3.4 Increase Staff Satisfaction 50% 38% 7% Reduce Staff Turnover 45% 42% 10% 3.4 Recruit New Staff 42% 41% 13% 0% 20% 40% 60% 80% 100% 3.3 Note: Proportions less than five percent not shown in above chart. Source: Frost & Sullivan Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s). 3.4 7
  8. 8. Perceived Risks of Social Networking Sites Potential Risks of Social Networking Sites to Your Organization (N=1166) High Risk Moderate Low No Risk Don’t know / No opinion Mean Scores Wasted Time by Employees/Loss of Productivity 29% 31% 21% 8% 11% 2.9 Allow Malware (Viruses, etc.) to get onto Computer or Network 26% 28% 25% 9% 12% 2.8 24% 28% 26% 9% 12% Confidential Information Going to Unintended Outsiders 2.8 Slow Down the Computer Network Due to increased Use 20% 30% 25% 12% 12% 2.7 Incur Legal Liability/Financial Penalty 17% 26% 31% 12% 14% 2.6 Increase IT Support Cost 14% 27% 32% 14% 14% 2.5 0% 20% 40% 60% 80% 100% Source: Frost & Sullivan Q15.Please rate the following potential risks of Social Networking Sites to your organization? 8
  9. 9. Focus Points • What is social networking for customer contact (SNCC)? • How are leading companies addressing SNCC? • What is the business case for SNCC? • How can SNCC affect your company’s larger marketing efforts and overall brand? 9
  10. 10. Social Networking for Customer Service 10
  11. 11. Social Networking for Customer Service – Areas of Focus • Supporting Customer Communities and Forums • Monitoring of Social Networking Conversations • Contact Center Application Support for Social Media 11
  12. 12. Customer Community Example – AT&T Wireless forum 12
  13. 13. Supporting Customer Communities and Forums • Forum: on-line virtual community where customers and enthusiasts can interact (post questions; answer questions; offer advice and share experiences); more feature-rich and advanced electronic bulletin board • Forum benefits for hosting enterprise: • Reduce support costs (customers help each other) • Grow/strengthen knowledge base • Promote customer loyalty • Receive feedback on products/services • Forum benefits for customers/enthusiasts: • Receive answers to questions from knowledgeable customers • Receive answers about 3rd-party and off-label uses of products • Learn from other customers’ experiences • Share experiences • Help other customers – gain status in customer group • Forum vendors: Lithium Technologies, Get Satisfaction, RightNow Technologies, and Knova 13
  14. 14. Monitoring of Social Networking Conversations Listening platform: applications capable of mining a wide variety of on-line sources, such as social networking websites and blogs, to extract enterprise brand and product references Benefits for enterprise: • automate the monitoring, collection, analysis of company/product references for further consideration • early-warning system for customer service and brand issues Social networking listening platform and analytics vendors: • Radian6 • Alterian SM2 • Nielsen BuzzMetrics • Visible Technologies • TNS Cymfony 14
  15. 15. Contact Center Application Support for Social Media Formal contact center application support for social media, including Twitter and Facebook, is just emerging 2010-available contact center application capabilities include: • route inbound Twitter messages for contact center agent processing, • agents post to Facebook and other major social sites, • agents send outbound Twitter messages, • agents reach into customer forums to answer posted questions, • reach into social world to offer live agent interactions, • monitor and measure customer experiences in social channels as customer traverse formal and informal customer interaction channels, • pass context information from informal channels to formal channels • track, report on, and analyze end-to-end interactions which include formal and social channels 15
  16. 16. SNCC at The Leading Edge 16
  17. 17. Social Networking Support – Example Leading Vendors Cisco Systems • Vision: Customer Collaboration, will revolutionize the way companies interact with customers and partners by linking traditional contact center channels with enterprise and consumer social software • Current offering: Cisco and partner Salesforce.com offer The Customer Interaction Cloud service, which consists of Salesforce.com's Service Cloud CRM and Cisco Unified Contact Center functionality. The Customer Interaction Cloud is operated by Cisco partner TeleTech. • Planned offerings: support for customer communities/forums, listening platforms, and processing of social media by its Unified Contact Center systems Alcatel-Lucent • Planned offerings: support for customer communities/forums, listening platforms, and processing of social media by its Genesys CIM Suite 17
  18. 18. Social Networking Support – Example Leading Enterprises • Forums – AT&T, Future Shop, Lenovo, BT, Pitney-Bowes, Barnes & Nobles, Sony, Best Buy, Fico, Verizon, Sage, Cisco (Linksys) • Listening Platforms – Dell, Comcast, Microsoft, Weber Shandwick, Pepsi, American Red Cross, Molson Coors, Kodak • Processing Social Media – Comcast, Dell, Southwest Airlines, Intuit 18
  19. 19. Social Networking Support - Leading Enterprises Initiatives Leaders •Forum first •Address directly in social sites •Build linkages More Advanced between social & traditional customer support •Expand monitoring •Proactively •Add/deepen analysis address Getting Started •Set engagement unanswered forum policies posts •Enhance forum •Route and •Enterprise presence on social sites process Twitter •Establish customer community messages •Begin monitoring social sites 19
  20. 20. Show Me The Money: Business Cases for SNCC 20
  21. 21. Customer Communities – Business Case Lithium Technologies Set-up: $10,000 to $20,000 Monthly support: $7,000 to $10,000 Internal expenses: 2X to 3X vendor fees (mid-large enterprise) Get Satisfaction Set-up: Beginning at $5,000 Monthly support: ~$300 to >$1,000 Benefits: call deflection, email reduction/elimination, increased customer satisfaction, improved FCR from improved KB. Payback: typical within 12 months, wide variation of results 21
  22. 22. Sample Enterprise Customer Community Results Lithium customers: Cisco/Linksys: saved $20MM from call deflection Pitney/Bowes: saved $3MM from call deflection HP: saved $2MM from call deflection; 15% increase in customer satisfaction scores Get Satisfaction customers: Yola.com: 2MM customers support by 6 staff 60% to 70% reduction in trouble tickets 22
  23. 23. SNCC for Marketing and Brand 23
  24. 24. Attention, Marketers: Talk to your Contact Center The Contact Center can provide valuable feedback to the Marketing and Communications department on social media campaigns, strategies, and tactics Analyze the Twittersphere and Facebook stream: Turn casual references, comments, complaints into action Is a small gripe on Facebook worthy of communication from the Contact Center? 24
  25. 25. Friending Your Brand’s Ambassadors Nothing new, but now more important than ever Brands can find dozens, if not hundreds, of loyal fans who are willing to provide praise and feedback to others within a community free of charge Foster relationships with these influencers – they can both assist and enhance your Contact Center efforts in the long term Companies and individuals expect a company to maintain a strong “social footprint,” even in the B2B environment 25
  26. 26. Now Is the Time to Get Even More Social • Add the AddThis or ShareThis widget to your site, to encourage website visitors to start conversations about your content, brand, company, products, or services. 26
  27. 27. Measure Everything: Prove your ROI • Costing more than Google Alerts, an investment (in both time AND money) in a social media monitoring tool will give you and the senior management deeper insight into the conversations being conducted on the Social Web, so you can take appropriate action. Measure clickthroughs on links with URL shortening services. 27
  28. 28. Conclusions and Recommendations 28
  29. 29. Conclusions Social Networking • is real and growing rapidly • will impact your enterprise • does have C-level attention in 2010 Early adopters learning to leverage social networking opportunities Customer service/contact center support for social networking becoming available Business cases for addressing social networking are emerging 29
  30. 30. Recommendations Beginning Steps • Investigate social activity re: your enterprise (trial one of the listening services) • how often are your enterprise/products referenced? • how many of your customers/target prospects use social sites? • track competitors’ social conversations • analyze patterns (growth rates, types and frequency of references…) • Ask your contact center vendors about their plans to support social networking • Find out which other departments have or are planning social support? • Consider business cases for adding social networking support 30
  31. 31. Recommendations (cont.) Defend and Enhance your Brand Have Marketing and Corporate Communications teams regularly interface with Customer Care and Contact Center teams Feedback is two ways: share best practices Additional measures of performance can now be included for these departments 31
  32. 32. Next Steps Request a proposal for a Growth Partnership Service or Growth Consulting Services to support you and your team to accelerate the growth of your company. (myfrost@frost.com) 1-877-GoFrost (1-877-463-7678) Join us at our annual Growth, Innovation, and Leadership 2010: A Frost & Sullivan Global Congress on Corporate Growth, September 12-14 2010, San Jose, CA (www.gil-global.com) Register for the next Chairman’s Series on Growth: Accelerating Growth through Vertical Market Expansion: A How-To Primer (April 6th) (http://www.frost.com/growth) Subscribe for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 32
  33. 33. Your Feedback is Important to Us What would you like to see from Frost & Sullivan? Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by taking our survey. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 33
  34. 34. Frost & Sullivan on Twitter Follow Frost & Sullivan on Twitter http://twitter.com/Frost_Sullivan Join Frost & Sullivan’s Fan Page http://www.facebook.com/home.php?#!/pages/Frost-Sullivan/249995031751?ref=sgm 34
  35. 35. For Additional Information Jake Wengroff Angie Montoya Global Director Global Analyst Briefing Coordinator Corporate Communications Marketing (210) 247-3806 (210) 247-2435 jake.wengroff@frost.com amontoya@frost.com Joe Outlaw Craig Hays Principal Analyst Sales Manager Contact Centers Information & Communication (302) 655-5425 Technologies joe.outlaw@frost.com (210) 247-2460 Craig.hays@frost.com 35

×