Customer Support Goes Social <br />3 Important Business Lessons & Pitfalls to Avoid<br />#OASocial<br />Mike Lewis, Chairm...
Today’s Topics<br />Real World Experiences <br />3 Important Lessons <br />Marketing and Customer Service<br />The Case fo...
Today’s Speakers<br />Michael F. “Mike” Lewis <br />Co-founder OfficeArrow.com and Social Strategy1<br />Chairman and CEO ...
Today’s Deal of the Day<br />I would definitely recommend this book to all business professionals. In fact, I am about to ...
Just How Big It Is<br />More than 1 Billion people using social media globally<br /><ul><li>More than 100,000,000 blogs wo...
ILD Experience – Background and Challenge<br />Background<br />ILD division is a third party payment processor for phone  ...
ILD Experience - Action<br />Monitoring program to track all online outlets<br />Weekly monitoring reports: one related to...
ILD Experience - Impact<br />Visits to self help site increased by 251%  <br />Percentage of visits resulting in emails an...
A Small Customer Service Issue Can Result In Big & Costly Lessons<br /><ul><li>After 3.6 million views, the airline donate...
Within four days of the video’s posting, United Airlines’ stock price fell 10 percent, costing stockholders about $180 mil...
Lesson #1: Listen<br />Influence Can Be Damaging<br />10<br />
Lesson #1 Listen<br />Use all channels to listen<br />Any comment posted on Twitter, a blog, or a forum can land on WSJ, a...
Lesson #2: Keep It Real<br />A comprehensive and authentic online approach to customer service can:<br />Clear up misunder...
Keeping It Real – Skillful Crisis Management<br />Reputation can easily be damaged by just forgetting the basics of custom...
Keeping It Real – What NOT to Do<br />Do NOT engage in anonymous postings about your own company’s stock and that of a com...
Value of Keeping It Real<br />Successfully integrates social media into customer service and  recognizes the value of keep...
Lesson #3: The Customer Has Friends<br />“Conventional marketing wisdom long held that a dissatisfied customer tells ten p...
Lesson # 3: The Customer Has Friends<br />Lots to gain by listening to customers<br />Referral still the best way to grow ...
Marketing & Customer Service: Another Line Blurring<br />Customer support is typically viewed as a cost center, however th...
Business Benefits of Social Business Adoption<br />Nearly 5,000 consumers prefer better customer experiences even over  lo...
Key Take-Aways<br />Customer support is the best place to build your business case for embarking on a social media initiat...
Key Take-Aways<br />Negative information has an extraordinarily long shelf life - extend customer service into real time w...
How to Be Successful Using Social Media<br />Measure to determine proof of performance and be agile with your strategy<br ...
Contact Info<br />Mike Lewis<br />mike.lewis@ildmail.com<br />@michael_f_lewis<br />904-273-2440<br />Steve Ennen<br />ste...
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Customer Support Goes Social Workshop

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  • Real World Experiences and one of our speakers will provide some insight into his own experiences at one of his companiesHow to Keep It Real Online3 Important Lessons in Social Support and Pitfalls to Avoid in Online EngagementHere we’ll explore best practices in listening to the customer, how to keep it real, and lesson # 3 – always remember the customer has friendsNext we’ll look at the Blurring Line Between Marketing and Customer ServiceHow you can Make the Case for Social Customer ServiceImportant Key TakeAways from today’s workshop
  • Michael F. “Mike” Lewis Co-founder OfficeArrow.com and Social Strategy1, Chairman and CEO of ILD Corp. and Author of “Social Media Leadership”Innovator and serial entrepreneur with more than 25-years of experience in forming, financing and profitably managing successful companies. Since 2007, he has channeled his focus on social media and social commerce by co-founding both Social Strategy1 and OfficeArrow.com, while over the last 15 years serving as Chairman and CEO of ILD Corp. He is an active alumni of The Wharton School at The University of Pennsylvania and recipient of numerous CEO and leadership awards.Steve EnnenPresident &amp; Chief Intelligence Officer, Social Strategy1Educator, publisher, and executive, Steve formerly worked with the University of Pennsylvania’s Wharton School, where he was Founding Managing Director of the Wharton Interactive Media Initiative (WIMI) and Wharton Lab for Innovation in Publishing; recognized as the authoritative thought leaders for issues related to interactive and digital media and their impact on broader business matters. Steve developed the curriculum in emerging media and interactive media strategies for both MBA program and Executive Education courses. A former Editorial Director who launched numerous award-winning digital media products, Steve is adept at discussing the transformation of the total media ecosystem and the critical use of social intelligence in business.
  • Consider the value of United Airlines social media crisis. Airline industry is very vulnerable to this. In 2009, when United Airlines damaged musician Dave Carroll’s guitar and the usual customer support options failed him, Dave fought back by posting his original song “United Breaks Guitars” on YouTube. While the company still failed to respond, attention grew. After 3.6 million views, the airline donated $3,000 to the Thelonious Monk Institute of Jazz, but the damage was done. Within four days of the video’s posting, United Airlines’ stock price fell 10 percent, costing stockholders about $180 million in value. (Dave’s performance also made Time Magazine’s Top 10 Viral Videos of 2009. ) Today, this video has over 10 million views.There are plenty of other examples of companies that have damaged their reputations and revenues by failing to appreciate the influence of social media channels. But there are also some examples of those who misused that influence. The new social networks place a high premium on authenticity. And they don’t like being manipulated.
  • Providing poor customer service has never been a good idea. Before the social media explosion, however, it was still possible for companies to take a calculated gamble with a few customer complaints, a little bad press, even small product defects. Many companies survived, even thrived, while ignoring customer support issues or handling them on the QT. That won’t be happening anymore. Social media is completely revolutionizing the customer support process, putting literally millions of unpaid reps on a 24/7 hotline that can work for you or against you. In the future you just won’t get to have any “small” problems. Honesty can be a very profitable policy….and the opposite is also true.
  • Skillful Crisis ManagementReputation is fragile. It is very easy for it to be damaged by just forgetting the basics of customer service.Gone are the days when you can easily bury a story or get by with a simple “no comment” response. And thanks to social media’s viral nature, how your firm handles a bad situation can make or break its future. You now must respond to PR crises quickly, with authenticity and aplomb. To do this, you must listen to the conversations happening in social media as they happen. You must train your staff to lead with the company’s values when the going gets rough. And you must have a plan for what to do when the news hits the fan. It’s not easy, but it’s possible. Communities are watching It’s not just individuals, though, who need to operate as if mom were watching. Social media communities are proving remarkably good at discovering, and punishing, companies who lie, cheat, or exaggerate needlessly.
  • In 2007 the CEO of Whole Foods, John Mackey, was found to have engaged in anonymous posting about his own company’s stock and that of a competitor that Whole Foods was trying to acquire. He frequently disparaged the competitor’s stock in an apparent attempt to weaken the value and improve Whole Foods’s bargaining position for the acquisition. The respected executive had his reputation tarnished, was forced to issue a public apology, and endured investigation by both the SEC and an internal committee within his own company. Ultimately, no charges were filed, but this embarrassing episode overshadowed Whole Foods news for a year. Walmart suffered similar embarrassment in the fall of 2006. The blog Wal-marting Across America was supposedly being written by two regular folks who were taking an RV trip across the United States and stopping at Walmarts to visit with customers and employees. When Jim and Laura Rivers’s RV trip turned out to be an ad agency contrivance, fans felt betrayed and the Walmart brand took the hit. There’s plenty of pressure on companies these days to play it straight with consumers and partners, but many of them are discovering that the new premium on authenticity doesn’t have to be a burden. Doing business as though your mom were watching may just turn out to be a better way of doing business. Those companies who are standouts in customer service are also perennial growth stories. It’s no coincidence that most of these rely heavily on social media as an integral part of their customer support strategy or that transparency is key to that strategy.
  • Zappos is conspicuous both for the extent to which it integrates social media into customer service and for the value it places on keeping it real with customers. Zappos has a blog team, even a blog bus. It has more than four hundred thousand followers on Twitter, which it employs in its call center operation. A 342-person, round-the-clock customer loyalty team answers 5,000 calls a day, 1,200 emails a week, and monitors Twitter and other social networking sites for mentions of Zappos, which they use to proactively reach out to potential shoppers. Zappos doesn’t track call times or require operators to read from scripts. When asked in an Adweek interview why the Zappos approach has resonated so well, CEO Tony Hsieh had this to say:I think part of it is we’re very transparent. One of our core values is being open and honest. It ends up creating more trust with our customers, employees, and partners. It’s the opposite of what most businesses do. Most try to be secret with their secret strategies.
  • Mike’s mentor experience at retailer.While I was there I learned firsthand a great lesson in customer service. I had sold a sport coat to a gentleman who was very hard to fit. We tried several times with our head tailor to get the coat to fit to the customer’s satisfaction, but after our third or fourth try, the customer became totally frustrated and walked out of the store in anger and frustration. I was stunned. I had never tried so hard to give a customer a satisfactory outcome and felt somewhat miffed that despite our best efforts, the customer lost confidence in us. As I mentioned, my boss was a great teacher and mentor who took the time to explain how sometimes trying hard and doing the right things will not guarantee that the customer will be happy. My boss said that the next time I encountered a similar situation I should just say, “We’ve tried our very best, but despite our efforts, it’s not going to satisfy you. Why don’t we try a different coat or let us give you your money back?” I was a little surprised by his comment because we really had bent over backward to make things right.My boss explained that even though I may have been right, this customer might go back to his office and share his dissatisfaction with as many as 20 or 30 of his coworkers. I hadn’t considered that aspect of the situation, but I learned a very valuable rule about customer service. Even though you may be dead right, it can potentially be harmful to attempt to prove it. Being right may not matter very much in certain situations.I was fortunate enough to learn this lesson at an early age. More of this is highlighted in Social Media Leadership, but if this was an important lesson then, it’s even more powerful now. As Paul Gillin, author of The New Influencers, notes, “Conventional marketing wisdom long held that a dissatisfied customer tells ten people. In the new age of social media, he or she has the tools to tell ten million.”
  • Customer support is typically viewed as a cost center. Even when customer service and sales are combined, too many companies still fail to see the relationship between service and brand perception. They dismiss or undervalue the critical role that customer service plays in the big marketing picture. But the line between branding efforts and customer service efforts is blurring, if it’s not disappearing entirely. It seems to me that the businesses who don’t get this have only a couple of choices. They can wait until some social media-driven PR disaster resulting from poor customer service takes a real bite out of brand image and earnings, or they can begin to integrate social media interactions into existing customer service, contact centers, and help desks, uncovering real cost savings while burnishing the brand. On January 31, 2011, Jive Software announced the results of the largest customer survey ever conducted on the business impact of social business adoption. The responses from 500 individuals representing 300 companies worldwide reported these top customer engagement benefits:• 42 percent more communication with customers• 31 percent increase in customer retention• 34 percent higher brand awareness• 28 percent decrease in support call volume• 34 percent more feedback and ideas from customers• 27 percent increase in new customer sales An even more recent survey from Forrester found that nearly 5,000 consumers prefer better customer experiences even over lower prices. Another unexpected outcome of that studywas the discovery that many of the obstacles that companies face when implementing change initiatives were resolved when the company deployed customer service social media initiatives. The key takeaway? Not only can companies transform customer service, but they can also successfully lead the changes required for better customer experiences—which drive business process improvements deeper into the organization. The hard data from studies like these, and the experiences of those companies who have changed the way they think about, and offer, customer service, demonstrate how pervasive the benefits of social media customer service actually are. The benefits also show up in better branding, new sales, better customer retention, even the ability to effect internal organizational change. The jury is coming back in. It seems that social media has value well beyond the intangibles of relationships or good will. The Customer Has Friends While I was in college, I had the good fortune to work for a great mentor in a high-end retail clothing store. While I was there I learned firsthand a great lesson in customer service. I had sold a sport coat to a gentleman who was very hard to fit. We tried several times with our head tailor to get the coat to fit to the customer’s satisfaction, but after our third or fourth try, the customer became totally frustrated and walked out of the store in anger and frustration. I was stunned. I had never tried so hard to give a customer a satisfactory outcome and felt somewhat miffed that despite our best efforts, the customer lost confidence in us. As I mentioned, my boss was a great teacher and mentor who took the time to explain how sometimes trying hard and doing the right things will not guarantee that the customer will be happy. My boss said that the next time I encountered a similar situation I should just say, “We’ve tried our very best, but despite our efforts, it’s not going to satisfy you. Why don’t we try a different coat or let us give you your money back?” I was a little surprised by his comment because we really had bent over backward to make things right. My boss explained that even though I may have been right, this customer might go back to his office and share his dissatisfaction with as many as 20 or 30 of his coworkers. I hadn’t considered that aspect of the situation, but I learned a very valuable rule about customer service. Even though you may be dead right, it can potentially be harmful to attempt to prove it. Being right may not matter very much in certain situations. I was fortunate enough to learn this lesson at an early age. (You’ll see more of this lesson highlighted in Chapter 6, which deals in depth with reputation management.) But if this was an important lesson then, it’s even more powerful now. As Paul Gillin, author of The New Influencers, notes, “Conventional marketing wisdom long held that a dissatisfied customer tells ten people. In the new age of social media, he or she has the tools to tell ten million.” Conclusion While no amount of blogging, tweeting or Facebook interaction will replace traditional customer support, social media tools can certainly augment and enhance it, not just reducing costs, but fitting into larger marketing efforts. At a time when customers are becoming far less likely to call a contact center than to go online and vent to the world—and when negative information has an extraordinarily long shelf life—it just makes sense to extend customer service into real time where your customers are talking. Those companies who can take a proactive approach, reaching out with a helping hand into online chat, forums, blogs, and the social media networking sites where those conversations are taking place will be the biggest winners. For the last few years we have tried our best to make ourselves a winner by making all of these initiatives a part of our company culture. It’s just plain old smart business and our employees also appreciate our deep commitment to serving our customers. I’ve always preached that there is a direct correlation between trust and profit. If your customers trust and respect you, then I think you are likely to be profitable and stay around for a long time. Despite all of your best efforts, 100% customer satisfaction may not be possible. But everyone in your organization needs to be highly committed to good customer service and to using social media as a major part of your customer service practices. The customer, remember, is always right. And he may have ten million friends. 
  • Downside of poor customer service is well documentedUpside to this new dynamic:Fostering a loyal community around brands prompts customers to begin to answer one another’s questions, to resolve issues or to validate complaintsProviding a customer community of mutual assistance can become an important first level of support for customer questions, resulting in cost savingsCustomer support is the best place to build your business case for embarking on a social media initiativeCost considerations:Face-to-face interactionsLive support calls, are the most costly means of addressing support issues, it just makes sense to avail yourself of the virtual army of unpaid, but willing, customer support volunteers. They’re already hard at work for some companies who are getting a bargain from their efforts.
  • While no amount of blogging, tweeting or Facebook interaction will replace traditional customer support, social media tools can certainly augment and enhance it, not just reducing costs, but fitting into larger marketing efforts. At a time when customers are becoming far less likely to call a contact center than to go online and vent to the world—and when negative information has an extraordinarily long shelf life—it just makes sense to extend customer service into real time where your customers are talking. Those companies who can take a proactive approach, reaching out with a helping hand into online chat, forums, blogs, and the social media networking sites where those conversations are taking place will be the biggest winners.For the last few years we have tried our best to make ourselves a winner by making all of these initiatives a part of our company culture. It’s just plain old smart business and our employees also appreciate our deep commitment to serving our customers. I’ve always preached that there is a direct correlation between trust and profit. If your customers trust and respect you, then I think you are likely to be profitable and stay around for a long time.Despite all of your best efforts, 100% customer satisfaction may not be possible. But everyone in your organization needs to be highly committed to good customer service and to using social media as a major part of your customer service practices. The customer, remember, is always right. And he may have ten million friends. 
  • Transcript of "Customer Support Goes Social Workshop"

    1. 1. Customer Support Goes Social <br />3 Important Business Lessons & Pitfalls to Avoid<br />#OASocial<br />Mike Lewis, Chairman and CEO, ILD Corp. and Social Strategy1<br />Steve Ennen, President and Chief Intelligence Officer of Social Strategy1<br />
    2. 2. Today’s Topics<br />Real World Experiences <br />3 Important Lessons <br />Marketing and Customer Service<br />The Case for Social Customer Service<br />Key Take-Aways<br />2<br />
    3. 3. Today’s Speakers<br />Michael F. “Mike” Lewis <br />Co-founder OfficeArrow.com and Social Strategy1<br />Chairman and CEO of ILD Corp. <br />Author of “Social Media Leadership”<br />Steve Ennen<br />President & CIO, Social Strategy1<br />Founding Managing Director of the Wharton Interactive Media Initiative & Wharton Lab for Innovation<br />3<br />
    4. 4. Today’s Deal of the Day<br />I would definitely recommend this book to all business professionals. In fact, I am about to have the other partners in my business read this as well.By hardymeagan<br />Easy to Understand and Informative Book For Business People Wanting to Learn How to Apply Social Media to Their Biz By Matthew C. Fischer<br />There is no `geek-speak' or computer language. This is a well written introductory book that puts the social media in the spotlight for each blogger or business. By S. Williams <br />4<br />
    5. 5. Just How Big It Is<br />More than 1 Billion people using social media globally<br /><ul><li>More than 100,000,000 blogs worldwide</li></ul>53% of people on Twitter recommend companies and/or products in their Tweets, with 48% of them delivering on their intention to buy the product (ROI Research for Performance, June 2010)<br />The average consumer mentions specific brands over 90 times per week in conversations with friends, family, and co-workers (Keller Fay, WOMMA, 2010)<br />5<br />
    6. 6. ILD Experience – Background and Challenge<br />Background<br />ILD division is a third party payment processor for phone billed transactions between merchants and consumers <br />Merchant charges display on the ILD portion of the consumer phone bill<br />Challenge<br />Targeted by consumers and bloggers<br />Negative dialogue toward brand and customer service issues gained momentum<br />Challenge was to help ILD join the conversation to quiet the negative and amplify paths to resolution online.<br />6<br />
    7. 7. ILD Experience - Action<br />Monitoring program to track all online outlets<br />Weekly monitoring reports: one related to brand issues and one specific to merchant mentions<br />Rapid response to brand issues; correct misinformation and openly and honestly address the negative<br />Customer Service Hotline, Escalated Email Address and employ Customer Advocate Team to quickly resolve customer service issues<br />Call center recording gave option to visit website<br />ILD Self Help - give control directly to consumers to learn more about a charge, cancel service and even credit their account<br />7<br />
    8. 8. ILD Experience - Impact<br />Visits to self help site increased by 251% <br />Percentage of visits resulting in emails and calls are down by >20%<br />Resolved more than 50,000 consumer issues online and emerged as a leader in proactive customer service in the industry<br />8<br />
    9. 9. A Small Customer Service Issue Can Result In Big & Costly Lessons<br /><ul><li>After 3.6 million views, the airline donated $3,000 to the Thelonious Monk Institute of Jazz
    10. 10. Within four days of the video’s posting, United Airlines’ stock price fell 10 percent, costing stockholders about $180 million in value</li></ul>9<br />
    11. 11. Lesson #1: Listen<br />Influence Can Be Damaging<br />10<br />
    12. 12. Lesson #1 Listen<br />Use all channels to listen<br />Any comment posted on Twitter, a blog, or a forum can land on WSJ, and vice versa<br />It’s vital to listen to all channels because you never know where a golden bit of information will appear<br />There is no customer service strategy without listening<br />Listening never stops<br />11<br />
    13. 13. Lesson #2: Keep It Real<br />A comprehensive and authentic online approach to customer service can:<br />Clear up misunderstandings<br />Simplify issue resolution<br />Send signals that we care about our customers<br />12<br />
    14. 14. Keeping It Real – Skillful Crisis Management<br />Reputation can easily be damaged by just forgetting the basics of customer service<br />“No comment” no more<br />How you handle a bad situation can make or break your company’s future<br />Respond quickly<br />Be authentic<br />Listen to the conversations<br />Train your staff to lead with the company’s values<br />Plan for what to do when bad press hits the fan<br />13<br />
    15. 15. Keeping It Real – What NOT to Do<br />Do NOT engage in anonymous postings about your own company’s stock and that of a competitor that you’re trying to acquire<br />Reputation tarnished, forced to issue a public apology, and endured investigation by both the SEC and an internal committee within Whole Foods<br />Do NOT launch deceptive marketing campaigns<br />Wal-marting Across America blog written by two regular folks who were taking an RV trip across the US and stopping at Walmarts to visit with customers and employees, but was ad agency contrivance, fans felt betrayed and the Walmart brand took the hit<br />Successful companies rely on social media as an integral part of their customer support strategy and transparency is key to that strategy.<br />14<br />
    16. 16. Value of Keeping It Real<br />Successfully integrates social media into customer service and recognizes the value of keeping it real with customers<br />Zappos social media team<br />342-person, round-the-clock customer loyalty team answers 5,000 calls a day, 1,200 emails a week, and monitors Twitter and other social networking sites for mentions of Zappos<br />Use data to proactively reach out to potential shoppers<br />Zappos does NOT track call times or require operators to read from scripts<br />Empowers staff to act and be helpful, no matter where they are on the organizational chart<br />“We’re very transparent. One of our core values is being open and honest. It ends up creating more trust with our customers, employees, and partners. It’s the opposite of what most businesses do. Most try to be secret with their secret strategies.” <br /> - Tony Hsieh, CEO, Zappos.com <br />15<br />
    17. 17. Lesson #3: The Customer Has Friends<br />“Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But…in the new age of social media, he or she has the tools to tell ten million.”<br /> - Paul Gillin, Author, “The New Influencers”<br />Photo Credit: John Lund<br />16<br />
    18. 18. Lesson # 3: The Customer Has Friends<br />Lots to gain by listening to customers<br />Referral still the best way to grow the business<br />17<br />
    19. 19. Marketing & Customer Service: Another Line Blurring<br />Customer support is typically viewed as a cost center, however there is a strong relationship between service and brand perception<br />Companies not engaged today have 2 options<br />Wait for a social media-driven PR disaster resulting from poor customer service takes a real bite out of brand image and earnings<br />Immediately integrate social media interactions into existing customer service, contact centers, and help desks, uncovering real cost savings while burnishing the brand<br />18<br />
    20. 20. Business Benefits of Social Business Adoption<br />Nearly 5,000 consumers prefer better customer experiences even over lower prices <br />42% more communication with customers<br />31% increase in customer retention<br />34% higher brand awareness<br />28% decrease in support call volume<br />34% more feedback and ideas from customers<br />27% increase in new customer sales <br />Sources: Jive Software and Forrester<br />19<br />
    21. 21. Key Take-Aways<br />Customer support is the best place to build your business case for embarking on a social media initiative<br />Cost consideration:<br />Face-to-face interactions and live support calls <br /> VS.<br />Virtual army of unpaid, but willing, customer support volunteers <br />Actively listen<br />Traditional customer support should be augmented by social media tools to reduce costs and expand larger marketing efforts<br />20<br />
    22. 22. Key Take-Aways<br />Negative information has an extraordinarily long shelf life - extend customer service into real time where your customers are talking<br />Companies embracing a proactive approach to social customer service will be the biggest winners – must be part of the corporate culture<br />“There’s a strong correlation between trust and profit.”<br />Commit across your organization to provide excellent customer service and to use social media as a major part of your customer service practices<br />The customer, remember, is always right – and he/she may have ten million friends!<br />21<br />
    23. 23. How to Be Successful Using Social Media<br />Measure to determine proof of performance and be agile with your strategy<br />Align metrics with strategic objectives<br />Include reactive customer service and proactive marketing<br />Courtesy of Social Strategy1<br />22<br />
    24. 24. Contact Info<br />Mike Lewis<br />mike.lewis@ildmail.com<br />@michael_f_lewis<br />904-273-2440<br />Steve Ennen<br />steve@socialstrategy1.com<br />@EnnenSS1<br />646-334-5893<br />@sstrategy1 <br />@officearrow<br />23<br />
    25. 25. OfficeArrow Deal of the Day<br />24<br />
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