2012: Customer Engagement Time  Social CRM, Social Business Matures
As the Era of the Social Customer EndsTHE ERA OF CUSTOMERENGAGEMENT BEGINS
The Social Customer                      3
The Social Customer                      Source: Brian Solis                                            4
The Social Customer    This has been a SOCIAL  communications revolution that      impacts all institutions    – business ...
The Social Customer“What is transpiring is momentous, nothing less than the planet wiring itselfa new nervous system. If y...
The Social Customer                      7
The Social Customer      Using Social Networks           Nielsen Online research “Global Faces on           Networked Plac...
The Social Customer•   Who is the Social Customer?     – Customer who is savvy in use of social         channels:         ...
The Social Customer   •   Key element of the relationship: Trust       – Listens to customer needs and feedback           ...
The Social Customer                                         Consumers ranking:                Perception             Busin...
Customer Engagement
Can’t stop thinkin’                              about customer                           intimacy. Driving me            ...
Customer EngagementWhat it isn’t•   Its not marriage•   Its not advocacy•   Its not loyalty•   Its not consistently the sa...
Customer Engagement                                                                               Vendors/•   Definitions ...
Customer Engagement                                                                        Vendors/•    What is it?       ...
Customer Engagement•   The Era of Customer Engagement    – CRM is making money for companies        • $5.60 on the dollar ...
Customer Engagement•    Customer experience is in the forefront of     strategy       – 60% of companies in Bruce Temkin  ...
Gamification
Customer Engagement•   Gamification     – “…describes a series of design principles, processes,       and systems used to ...
Customer Engagement• Gartner forecasts that  by 2014, 70% of all  businesses in the Global  2000 will have gamified  apps•...
Customer Engagement• All games have 4 traits  –   A goal  –   Rules  –   Feedback system  –   Voluntary participation• Gam...
Customer Engagement•   Can be as simple as…    – If you register/buy in the      next five minutes…•   Or as complex as…  ...
Customer EngagementPoints for each line item and invoice correctly enteredTeam sportMonetary prizes to charity chosen by w...
I think Radiohead sucks!Customer EngagementBad use of gamification by the otherwise popular GetGlue
The Company Side of theEngagement Story
Customer Engagement•    Company concerns•    Making the experience seamless regardless of channel•    Recognizing the cust...
Customer Engagement•   What should a company do to prepare?    – Meet customer expectations – if they are reasonable    – ...
Social CRM
Social CRM• Social Business                           • Social Enterprise  –   “A business that embraces                – ...
Social CRM         Social CRM Definition“Social CRM is a philosophy & a business strategy, supported by a technologyplatfo...
Social CRM        Social CRM Perception“Social CRM is the integration of traditional operational customer facingactivities...
Social CRM•    Five Simple Principles of Social CRM    1. Value & values are given & in return, value & values are       r...
Social CRM• Social CRM execution  – Successful holistic SCRM strategy perhaps only    at P&G     • They don’t call it that...
Social CRM•   Systems of Engagement    – We move past purely transactional systems    – Now we are dealing with systems th...
Social CRM•   Systems of Engagement    – Still needs to:       • Record transactions       • Automate operational processe...
Social CRM•   Systems of Engagement•   SHOW A SCREEN HERE OF MAJOR COMPANY    SYSTEM OF ENGAGEMENT
CASE STUDY: GIFF GAFF
“At current trajectories, within five years we expect thatcommunity peer-to-peer support projects will supplement orreplac...
• Who is giffgaff?  – Virtual Mobile Network Operator (VMNO)     • Sells SIM cards with embedded services  – Brainchild of...
Case Study: giffgaffTHE BETA LAUNCH
• The giffgaff beta launch   – Value proposition      • Mutuality   – Beta launch strategy      • Target tech savvy digita...
The giffgaff Beta Launch Created Tool Hire   3. Top 5 videos      win £5000 each                           1. Use the  2. ...
Gamification = Engagement
• Results of the beta launch  –   156 videos created  –   615,116 YouTube video views  –   43,301 visits to ToolHire site ...
Case Study: giffgaffTHE FULL LAUNCH
• The giffgaff full launch   – Value proposition:       • Remained mutuality   – Full launch strategy       • Target value...
Social Networks/Engagement
• Results of the full launch   –   Unique visitors went up 40% from beta   –   Tweets mentioning giffgaff up 240%   –   Or...
• giffgaff the Co.   – Implement customer     ideas (112 by end of     2010) incl. pricing   – Provide advocacy     progra...
•   giffgaff    community is    vibrant with    over 1 million    interactions
•   giffgaff customers ask    other customers for    answers 50% of the time                              Source: Cap Gemini
•   giffgaff customers are    actually happy with    giffgaff unlike other U.S.    based telco customers    with their car...
IN SUM…AND BUH BYE
In Sum•   The communications revolution has transformed business•   We have a new kind of customer…a social customer…but h...
THANK YOUAuthor: CRM at the Speed of Light (4th Edition)Managing Principal: The 56 Group, LLCManaging Partner/CCO: BPT Par...
Paul Greenberg - Welcome to the Era of Customer Engagement
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Paul Greenberg - Welcome to the Era of Customer Engagement

  1. 1. 2012: Customer Engagement Time Social CRM, Social Business Matures
  2. 2. As the Era of the Social Customer EndsTHE ERA OF CUSTOMERENGAGEMENT BEGINS
  3. 3. The Social Customer 3
  4. 4. The Social Customer Source: Brian Solis 4
  5. 5. The Social Customer This has been a SOCIAL communications revolution that impacts all institutions – business among them. 5
  6. 6. The Social Customer“What is transpiring is momentous, nothing less than the planet wiring itselfa new nervous system. If your organization is not linked into this nervoussystem, you will be hard pressed to participate in the planet’s future.…Amidst the texting and the Twittering and Facebooking of a generation ofdigital natives, the fundamentals of next generation communication andcollaboration are being worked out.” --Geoffrey Moore, author, Crossing the Chasm
  7. 7. The Social Customer 7
  8. 8. The Social Customer Using Social Networks Nielsen Online research “Global Faces on Networked Places” (March 2009): Fastest growing sector for Internet use is communities and blog sites (5.4% in a year) Member communities reach more Internet users (66.8%) than email (65.1%)
  9. 9. The Social Customer• Who is the Social Customer? – Customer who is savvy in use of social channels: • Trusts differently than they used to • Communicates with peers – 65% find peers most trusted source (Edelman 2012 Trust Barometer) • Communicates with companies • Gets what they want – 20% use Twitter for customer service (source: Colloquy) – 26% far more likely to speak badly of co. rather than well via social media • Social, mobile, local • Expects an immediate response or nearly so • Expects to have information available nearly instantly when they look for it. • Increases velocity of the consumerization of work • Uses social networks as active participants in effecting change 9
  10. 10. The Social Customer • Key element of the relationship: Trust – Listens to customer needs and feedback • #1 concern of public about trust in cos. – (source: Edelman Trust Barometer 2012) – Offers high quality goods & services – Treats employees well – Places customers ahead of profits
  11. 11. The Social Customer Consumers ranking: Perception Businessesranking: The reasons they interact with companies gap Why they think consumers follow them via social sites via social sites (61%) Discount Learn about new products (73%) (55%) Purchase General information (71%) (53%) Reviews and product rankings Submit opinion on current products/services (69%) (53%) General information Exclusive information (68%) (52%) Exclusive information Reviews and product rankings (67%) (51%) Learn about new products Feel connected (64%) (49%) Submit opinion on current products/services Customer service (63%) (37%) Customer service Submit ideas for new products/services (63%) (34%) Event participation Be part of a community (61%) (33%) Feel connected Event participation (61%) (30%) Submit ideas for new products/services Purchase (60%) (22%) Be part of a community Discount (60%)Note: Consumer N=1056, Busmess: Learn N=333, Generalrnf o N=336, Submt cpmrm N=334, Exclusve mfo N=333, ReOews/ranklngs N=333, Feelcmnected N=331,Customer servr ce N=331, SUbmt Ideas N=332, Comrunrty N=329, Event N=332, Purchase N=334, Clscounts N=331Source IBM lnstrtute for Busness Value analysr s CRM study 2011. Source: IBM Institute for Business Value: From social media to Social CRM 11
  12. 12. Customer Engagement
  13. 13. Can’t stop thinkin’ about customer intimacy. Driving me nutsCEO Customer Engagement “Customer intimacy is foremost on CEOs’ minds. Eighty-eight percent of all CEOs, and an astounding 95 percent of Standouts, picked getting closer to the customer as the most important dimension to realize their strategy in the next five years. These CEOs are convinced they must not only stay connected (or reconnect) with customers, but keep on learning how to strengthen those bonds.” (CEO Study 2010, IBM Institute for Business Value)
  14. 14. Customer EngagementWhat it isn’t• Its not marriage• Its not advocacy• Its not loyalty• Its not consistently the same level• Its not determined by the amount of time or effort a customer makes
  15. 15. Customer Engagement Vendors/• Definitions Suppliers – Peppers & Rogers: • Proactive involvement Partners/ External Company – Eric Petersen Channels Agencies • (Online engagement) is an estimate of the degree and depth of visitor interaction EVC on the site against a clearly Part of PVC Intersects defined set of goals.” Customer EVC Friends Family Other PVC EVCCompanies Everything Else Going On
  16. 16. Customer Engagement Vendors/• What is it? Suppliers• It is an ongoing active interrelationship between the Partners/ External company and the customer Channels Company Agencies• It is determined by customer self-selection EVC• The level can vary from Part of PVC Intersects casual to intense, infrequent Customer EVC to frequent, and changes moment to moment Friends Family• The customer can choose the channels they want to Other PVC engage in EVCCompanies Everything Else Going On
  17. 17. Customer Engagement• The Era of Customer Engagement – CRM is making money for companies • $5.60 on the dollar for each CRM program reviewed (Nucleus Research) – Social channels are part of a multi-channel strategy • We’ve gone beyond experimentation in social media to a fully integrated multichannel perspective • 64% of companies beyond the experimental stage (integrated channels, multi-channel, cross-channel)(State of Social 2011, eConsultancy) – The customer has the products, services, tools and consumable experiences to sculpt the kind of experience that they want to have with the company • They self-select – Advanced thinking includes customer value-based co-creation of products etc. – Ubiquitous tools at low costs of entry • Costs of success considerably higher
  18. 18. Customer Engagement• Customer experience is in the forefront of strategy – 60% of companies in Bruce Temkin survey have senior exec in charge of customer experience – 30% of companies have 20+ employees delegated to customer experience – 84% have gotten positive results from Voice of Customer programs• But…. – Only 17% feel that execs are willing to trade off short term financial results for long term customer loyalty – Source: 2011 State of Customer Experience Management, Bruce Temkin
  19. 19. Gamification
  20. 20. Customer Engagement• Gamification – “…describes a series of design principles, processes, and systems used to influence, engage and motivate individuals, groups, and communities to drive behaviors and effect desired outcomes.” --Ray Wang, CEO Constellation Research Group)
  21. 21. Customer Engagement• Gartner forecasts that by 2014, 70% of all businesses in the Global 2000 will have gamified apps• M2 says by 2016, we’re looking at a $2.8 billion market, – 2012 – 200% growth over 2011 $100,000,000.
  22. 22. Customer Engagement• All games have 4 traits – A goal – Rules – Feedback system – Voluntary participation• Gamification supports engagement – big time• Games can evoke: – Flow (in the zone) – Fiero (Yes!)
  23. 23. Customer Engagement• Can be as simple as… – If you register/buy in the next five minutes…• Or as complex as… – Farmville – World of Warcraft• Business value – Increase advocacy and loyalty – Support positive changes in customer behavior
  24. 24. Customer EngagementPoints for each line item and invoice correctly enteredTeam sportMonetary prizes to charity chosen by winning team
  25. 25. I think Radiohead sucks!Customer EngagementBad use of gamification by the otherwise popular GetGlue
  26. 26. The Company Side of theEngagement Story
  27. 27. Customer Engagement• Company concerns• Making the experience seamless regardless of channel• Recognizing the customer will be expecting the best results he/she had in all channels• Knowing the costs of trying to provide all that a customer wants is incredibly high• How to prioritize the channels proffered• What is it that we need to know about the customer or the customer group that helps us make those decisions? – Transactional – Unstructured
  28. 28. Customer Engagement• What should a company do to prepare? – Meet customer expectations – if they are reasonable – Don’t’ react to everything – Treat the customer as a partner, not a client – If you are comfortable with it, involve the customer as an extension of your company • Community retailing – Provide them with what they need to sculpt their own relationship with you – Recognize that your and the customer’s idea of value are not the same – Provide the most important channels to customers, not necessarily all of them
  29. 29. Social CRM
  30. 30. Social CRM• Social Business • Social Enterprise – “A business that embraces – A social enterprise reflects the networks of people to create technological underpinnings business value. … Social for a social business businesses more fully integrate • It includes the collective knowledge of • Collaboration framework people-centric networks to & tools accelerate decision making, strengthen business processes, • Open architecture and increase innovation that • Incorporation of social matters.” - IBM®definition channels into the basic – Social business encompasses IT infrastructure & internal collaboration and Social communications CRM • Traditional operational – Employees are empowered to applications or services work with and exchange • Incorporation of social knowledge with customers and data into customer each other record – Customers are given the opportunity to interact and, in more mature stages co- create/collaborate with business in meaningful activities 30
  31. 31. Social CRM Social CRM Definition“Social CRM is a philosophy & a business strategy, supported by a technologyplatform, business rules, workflow, processes & social characteristics,designed to engage the customer in a collaborative conversation in order toprovide mutually beneficial value in a trusted & transparent businessenvironment. It’s the company’s programmatic response to the customer’scontrol of the conversation.” 31
  32. 32. Social CRM Social CRM Perception“Social CRM is the integration of traditional operational customer facingactivities including strategies, programs, systems and technologies combinedwith emergent social channels to provide businesses with the means tocommunicate and engage with customers in their preferred channels for mutualbenefit. 32
  33. 33. Social CRM• Five Simple Principles of Social CRM 1. Value & values are given & in return, value & values are received (collaboration, co-creation, mutual value, transparency, authenticity, advocacy) 2. Each of us is governed by self-interest (personalization, controlling own experiences) 3. We are social creatures too (conversation, social marketing, data capture/insight, community) 4. For ideas to be truly exciting, they have to be real (measurement, analytics, realistic objectives, success) 5. Do unto others…you know the rest (customer experience, engagement) 33
  34. 34. Social CRM• Social CRM execution – Successful holistic SCRM strategy perhaps only at P&G • They don’t call it that – However, discussion everywhere – Implementations are multi-channel • Twitter channel for customer service • Service or ideation communities • Social marketing including sharing in email, use of UGC • Collaboration in sales for optimization strategies • The interweaving of enterprise collaboration deeply into traditional applications • The integration of social data into traditional systems of record
  35. 35. Social CRM• Systems of Engagement – We move past purely transactional systems – Now we are dealing with systems that encourage customer involvement with the company at the level that the customer chooses – They are based on: • Interactions • Collaboration • Community • Rich media • Usability • Open access • Immediacy • Insight & analysis
  36. 36. Social CRM• Systems of Engagement – Still needs to: • Record transactions • Automate operational processes • Capture data • Analyze data • Scale appropriately – But also needs to: • Try to create interactive environment for the customer • Capture conversations • Record real time interactions • Optimize responses in real time • Capture feedback • Provide feedback
  37. 37. Social CRM• Systems of Engagement• SHOW A SCREEN HERE OF MAJOR COMPANY SYSTEM OF ENGAGEMENT
  38. 38. CASE STUDY: GIFF GAFF
  39. 39. “At current trajectories, within five years we expect thatcommunity peer-to-peer support projects will supplement orreplace Tier 1 contact center support in more than 40 percentof top 1,000 companies with a contact center.” (source: Drew Kraus, VP Gartner)
  40. 40. • Who is giffgaff? – Virtual Mobile Network Operator (VMNO) • Sells SIM cards with embedded services – Brainchild of Director of Innovation at O2 in the UK – Start up, not division of O2
  41. 41. Case Study: giffgaffTHE BETA LAUNCH
  42. 42. • The giffgaff beta launch – Value proposition • Mutuality – Beta launch strategy • Target tech savvy digital natives who would talk • Beta launch issues • No funds for traditional media • People-powered mutuality w/o people!
  43. 43. The giffgaff Beta Launch Created Tool Hire 3. Top 5 videos win £5000 each 1. Use the 2. Upload the video Tool to to YouTube – free make calls 1 yr. video
  44. 44. Gamification = Engagement
  45. 45. • Results of the beta launch – 156 videos created – 615,116 YouTube video views – 43,301 visits to ToolHire site – 151,230 page views on ToolHire site – 6000 Facebook fans – 1.2 million reach thru primetime TV pickup – giffgaff is on the map
  46. 46. Case Study: giffgaffTHE FULL LAUNCH
  47. 47. • The giffgaff full launch – Value proposition: • Remained mutuality – Full launch strategy • Target value conscious customers via low cost acquisition channels (e.g. social media) • Using social networks/communities to engage customers in conversation
  48. 48. Social Networks/Engagement
  49. 49. • Results of the full launch – Unique visitors went up 40% from beta – Tweets mentioning giffgaff up 240% – Organic search up 200% – Branded Search up 73% – Qualified visits up • SIM card activations increase • Bounce rate decrease 10% • Now have over 65,000 Facebook “likes” • Started w/0.5% share of voice!
  50. 50. • giffgaff the Co. – Implement customer ideas (112 by end of 2010) incl. pricing – Provide advocacy program – points for recruitment, email, activated SIM cards – Community provides customer service
  51. 51. • giffgaff community is vibrant with over 1 million interactions
  52. 52. • giffgaff customers ask other customers for answers 50% of the time Source: Cap Gemini
  53. 53. • giffgaff customers are actually happy with giffgaff unlike other U.S. based telco customers with their carriers (e.g. Verizon) Source: Cap Gemini 54
  54. 54. IN SUM…AND BUH BYE
  55. 55. In Sum• The communications revolution has transformed business• We have a new kind of customer…a social customer…but he is still a customer• Our customers should be subjects of an experience and partners, rather than objects of a sale and clients• In order to acquire and retain customers, we need to have a multichannel strategy – with selected channels• The key is the provide the products, services, tools, and consumable experiences that the customer needs to sculpt their own relationship with you• To do so, since we have transformed how we communicate, we need to enhance our current systems of record with systems of engagement
  56. 56. THANK YOUAuthor: CRM at the Speed of Light (4th Edition)Managing Principal: The 56 Group, LLCManaging Partner/CCO: BPT Partners,EVP: National CRM Assn.Named to CRM Magazine CRM Hall of Fame 2010Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008,Forecasting Clouds, 2010PGreenblog: http://the56group.typepad.comSocial CRM: The Conversation: http://blogs.zdnet.com/crmEmail: paul-greenberg3@the56group.comTwitter: http://www.twitter.com/pgreenbeFacebook: http://www.facebook.com/pgreenbeGoogle Voice: 571-229-7549

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