5. The Social Customer
This has been a SOCIAL
communications revolution that
impacts all institutions
– business among them.
5
6. The Social Customer
“What is transpiring is momentous, nothing less than the planet wiring itself
a new nervous system. If your organization is not linked into this nervous
system, you will be hard pressed to participate in the planet’s future.
…Amidst the texting and the Twittering and Facebooking of a generation of
digital natives, the fundamentals of next generation communication and
collaboration are being worked out.” --Geoffrey Moore, author, Crossing the
Chasm
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. 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. 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. The Social Customer
Consumers' ranking: Perception Businesses'ranking:
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=331
Source IBM lnstrtute for Busness Value analysr s CRM study 2011.
Source: IBM Institute for Business Value:
From social media to Social CRM
11
13. Can’t stop thinkin’
about customer
intimacy. Driving me
nuts
CEO
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. Customer Engagement
What 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. 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. 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. 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. 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
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. 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. 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. 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. Customer Engagement
Points for each line item and invoice correctly entered
Team sport
Monetary prizes to charity chosen by winning team
25. I think Radiohead sucks!
Customer Engagement
Bad use of gamification by the otherwise popular GetGlue
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. 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
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. Social CRM
Social CRM Definition
“Social CRM is a philosophy & a business strategy, supported by a technology
platform, business rules, workflow, processes & social characteristics,
designed to engage the customer in a collaborative conversation in order to
provide mutually beneficial value in a trusted & transparent business
environment. It’s the company’s programmatic response to the customer’s
control of the conversation.”
31
32. Social CRM
Social CRM Perception
“Social CRM is the integration of traditional operational customer facing
activities including strategies, programs, systems and technologies combined
with emergent social channels to provide businesses with the means to
communicate and engage with customers in their preferred channels for mutual
benefit.
32
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.
35. 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
36. 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
37. 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
38. Social CRM
• Systems of Engagement
• SHOW A SCREEN HERE OF MAJOR COMPANY
SYSTEM OF ENGAGEMENT
40. “At current trajectories, within five years we expect that
community peer-to-peer support projects will supplement or
replace Tier 1 contact center support in more than 40 percent
of top 1,000 companies with a contact center.”
(source: Drew Kraus, VP Gartner)
41. • 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
43. • 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!
44. 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
46. • 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
48. • 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
50. • 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!
51. • 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
52. • giffgaff
community is
vibrant with
over 1 million
interactions
53. • giffgaff customers ask
other customers for
answers 50% of the time
Source: Cap Gemini
54. • giffgaff customers are
actually happy with
giffgaff unlike other U.S.
based telco customers
with their carriers (e.g.
Verizon)
Source: Cap Gemini
54
56. 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
57. THANK YOU
Author: CRM at the Speed of Light (4th Edition)
Managing Principal: The 56 Group, LLC
Managing Partner/CCO: BPT Partners,
EVP: National CRM Assn.
Named to CRM Magazine CRM Hall of Fame 2010
Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008,
Forecasting Clouds, 2010
PGreenblog: http://the56group.typepad.com
Social CRM: The Conversation: http://blogs.zdnet.com/crm
Email: paul-greenberg3@the56group.com
Twitter: http://www.twitter.com/pgreenbe
Facebook: http://www.facebook.com/pgreenbe
Google Voice: 571-229-7549
