How Social CRM Can Help Address Changing Consumer Demands

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Social collaboration-based sales and marketing technologies help companies understand and manage changing consumer demands. Learn how leading companies are incorporating collaborative sales and …

Social collaboration-based sales and marketing technologies help companies understand and manage changing consumer demands. Learn how leading companies are incorporating collaborative sales and marketing solutions into their overall CRM strategy.

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  • 1. The DBriefs Consumer Business series presents: How Social Media-Based CRM Can Help Address Changing Consumer Demands Fabio Cipriani – Deloitte Consulting Brazil Michael Finneran – Deloitte Consulting LLP Mark Woollen – VP, Social CRM Products, Oracle Inc. September 17, 2009
  • 2.
    • New consumer behaviour
    • Downturn and the need to focus on CRM
    • Social CRM concepts
    • Social CRM interactions and value
    • Social Networks in the workplace
    • Productivity and Social CRM Tools
    Agenda
  • 3.
    • The 4 Cs of Web 2.0
    • According to Wikipedia (Jul/2009) - "Web 2.0" refers to a second generation of web development and design which facilitates communication, secure information sharing, interoperability and collaboration on the World Wide Web
    • Social Media flowing through Web 2.0 enables:
      • Collaboration
      • Community creation
      • Conversation
      • Creativity
    Web 2.0 has changed the way people communicate Blogger TM Etsy MySpace TM Redesign Me Flickr ® Facebook Twitter TM YouTube Get Satisfaction
  • 4.
      • Web 2.0 connects consumers and stimulates fundamental changes in consumer behavior
      • Social platforms create a completely new paradigm for connecting with individuals
      • Interactions between customer and brands are starting earlier and never ending
      • Social relationship with customers means more than just mere on-demand attention or customer-tailored products and services
    Social Media has increased the complexity to achieve superior customer experience The new Social Consumer
  • 5.
    • Recent market dynamics have not stopped investments, but have forced companies to look more aggressively at costs and efficiencies .
    Economic downturn affects strategies and investments How are current economic conditions and the outlook for 2009 influencing your marketing plans and budgets? (select one) Source: “Marketing Outlook 2009 ” – Report by CMO Council sponsored by Deloitte, March/2009 As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP.  Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Sharpening our focus and reducing our spend Putting more pressure on the marketing organization to produce Shifting marketing mix to more cost efficient channels Requiring big cutbacks in staff and programs Facing increased pressure to justify spend Not impacting us that much; marketing plans are intact Investing more in marketing to drive demand Other
  • 6.
      • Social platforms are both efficient and effective .
      • Social Media is the natural ecosystem where consumers engage each other and is a very effective channel to interact with them.
      • Web 2.0 technology and its management costs are low. The most socially engaged companies from the Top 100 global brands have increased 18% in revenue in the last 12 months
    Web 2.0: Effective fit to support companies’ needs and social consumers’ demands Revenue Growth (last 12 months) Source: “ The world’s most valuable brands. Who’s most engaged?” – Report by Wetpaint and Altimeter Group, July/2009 W S B M Mavens >= 7 Social Media Channels + High engagement Butterflies >= 7 Social Media Channels + Low engagement Selectives <= 6 Social Media Channels + High engagement Wallflowers <= 6 Social Media Channels + Low engagement
  • 7.
    • Does your company have a Social Media Strategy in place?
      • Yes
      • No
      • Not sure
      • Don’t Know/ Not applicable
    Poll question #1
  • 8. Poll question #1 - Results
  • 9.
    • Improvements in any process of a company’s value chain can bring money savings and increase efficiencies.
    • However, improvements in CRM processes can support a higher jump when the economy re-emerge.
      • Extract more value from your current customers
      • Find and focus on highly profitable customers and your brand’s promoters
      • Maintain your current customers loyalty to your company
      • Improve your lead generation capabilities
    • The challenge is to make these improvements happen by investing less.
    On the other hand, Customer Relationship Management (CRM ) is key for a company to survive turbulent times
  • 10.
    • “ By 2010, more than 60% of Fortune 1.000 companies will have some form of online community deployed for CRM purposes”
    Why CRM should start to think Socially? We live in a social world and customers are people Source: “The Business Impact of Social Computing on CRM ” – Report by Gartner Group, Feb/2009 Social CRM Improved CRM can help companies achieve competitive advantage when the economy turns Social Media has low cost, increased collaboration and is a key channel to engage with people New consumer and employee behavior demands new strategy, segmentation, channels, messages and processes
  • 11. What are the main differences between Traditional CRM and Social CRM?
    • Customer-facing employee
    • Centralized innovation group
    • All employees engage
    • Customers in the center of the innovation cycle
    • Customer life cycle
    • Process centric
    • CRM Processes
    • Company life cycle
    • Conversation centric
    • Value Chain
    • Automating and supporting business processes
    • Community creation internal and externally
    • Single view of the customer based on the interactions history
    • Multiple channels complicate single view of the customer
    • Individual relationship
    • Targeted messages generates value
    • Complex relationship network
    • Conversation generates value
    Mindset Processes Technology Channels Landscape
  • 12.
    • Social Media should be seen as a communication network where Socially-enabled Marketing, Sales and Customer Service processes are performed to generate value
    Social CRM channel and processes Traditional CRM Processes Traditional Channel Interface Marketing Sales Service Socially-enabled Marketing Socially-enabled Sales Socially-enabled Service Social CRM Capability Layer Social Channel Interface Internal Social Tools (Internal blogs, wikis, sharing platforms, social networks, innovation portal, etc.) Types of Market-aimed Social Tools Own Social Content (Corporate Blogs, Forums, Branded or unbranded Social Networks, etc.) Market Internal Collaboration tools Website E-mail Phone/SMS Letter Face to face Fax Business Partner Social Media POS Existing Social Media (Facebook, MySpace, Twitter, LinkedIn, etc.)
  • 13.
    • What Social Media Tool is the one primarily used by you personally?
      • Facebook
      • MySpace TM
      • LinkedIn ®
      • Twitter TM
      • Other
      • Don’t Know/ Not applicable
    Poll question #2
  • 14. Poll question #2 - Results
  • 15. Types of interactions in Social CRM Internal Social Tools Market Monitoring / Data Mining These interactions include the company performing Social CRM involved in at least one side of the communication flow. They are B2B, B2C, C2B and internal interactions These spontaneous interactions happen at the market side among customers (C2C), competitors and business partners Market-centered social interactions (outside-to-outside) Business-centered social interactions (inside-to-outside inside-to-inside) Customer-generated Social CRM Market reactions on brand or industry Existing Social Media Own Social Content Social Marketing Social Sales Social Service Customer Preferences Market Information Questions & complaints Customer-facing employee Socially-empowered employees
  • 16. Value generation from Social CRM interactions Market Monitoring / Data Mining Customer-generated Social CRM Market reactions on brand or industry Existing Social Media Own Social Content Social Marketing Social Sales Social Service Customer Preferences Market Information Questions & complaints Customer-facing employee Socially-empowered employees
      • Improve customer education and expertise
      • Leverage additional sources for customer intelligence
      • Deploy a low-cost tactic
      • Benefit from spontaneous reactions from the community by connecting like-minded peers
      • Better understand customer needs and wants
      • Improve customer experience responsiveness
      • Leverage “interest” based marketing & advertising
      • Develop new revenue opportunities
      • Extend your reach within the social media channel
      • Collaboration through diverse feedback
      • Uncover formerly unknown connections
      • Efficient capture of intellectual assets
      • Attract talent through communities
      • Increase retention through strong morale and commitment
    Internal Social Tools
  • 17.
    • Does your organization have its own Social Media tool?
      • Yes
      • No
      • About to be deployed
      • Not Sure
    Poll question #3
  • 18. Poll question #3 - Results
  • 19. Social Networks in the Workplace
  • 20.
    • The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
    Safe Harbor Statement
  • 21. Consumer Social Networks Influence the Enterprise
  • 22. Where Enterprise Applications Fall Short Populating and maintaining data Getting user acceptance Generating meaningful analytics Customizing CRM applications Measuring CRM project ROI Identifying sales-process problems Matching technology to process Effectively rolling out the application Evaluating CRM applications Obtaining executive support Managing CRM vendor relationship Getting adequate project funding 52% 41% 35% 30% 28% 27% 20% 18% 10% 6% 4% Source: Harvard Business Review , July-August 2006; Annual sales survey of Chief Sales Officers. Other 6% 8%
  • 23. Employees are organized hierarchically…
  • 24. But work through social networks
  • 25. Delivering on User Productivity Disconnected CRM Disconnected CRM Personal CRM Productive CRM Portable CRM
  • 26. Sales Productivity?* The Average “engaged” selling time for territory sales reps? The Average time spent selling the “new product” ? 3% 22% *Source: The Alexander Group, Inc .
  • 27. Web 2.0 Applications for the Enterprise Sales Library Deal Management Sales Campaigns Sales Prospector
  • 28.
    • Is your competition visibly leveraging Social Media tools in the marketplace?
      • Yes
      • No
      • I am not sure
    Poll question #4
  • 29. Poll question #4 - Results
  • 30. Sales Engagement Increases Productivity EBS CRM Sales Prospector Sales Campaigns Sales Library Historical Data, Company Info CRM CRM CRM Leads Opportunities Targeted Presentations Quotes Deal Mgt Start Lead Generation Lead 2 Opty Opty 2 Quote Quote 2 Close Stages in the Typical Sales Process
  • 31. Secure Connection to the Cloud Enabled by Google Secure Data Connector
  • 32. Secure Connection to the Cloud Enabled by Google Secure Data Connector Google Apps Google Gadgets Google App Engine Corporate Firewall Secure Data Connector Secure Data Connector Oracle Applications
  • 33.
    • Which is the main barrier for your company to adopt Social CRM?
      • Security concerns
      • Lack of knowledge on Social Media
      • Benefits do not sound attractive
      • Company culture may be not adequate to make it work
      • Difficulty on measuring and tracking promised benefits
      • Don’t Know/ Not applicable
    Poll question #5
  • 34. Poll question #5 - Results
  • 35. Social Networking Types Source: Ed Thompson, VP & Distinguished Analyst, Gartner Consumer Social Networks
    • Generic Consumer destinations
    • Reunions, references, correspondence
    • Friends and personal relationships
    Productivity Social Networks
    • Mining business relationships
    • Sales, Service, Marketing, HRMS
    • Integration to external Social networks
    Customer Social Networks
    • Vendor Centric
    • Business Processes
    • Who is like me?
  • 36. Loyalty Application for iPhone: Alaska Airlines Copyright © 2009 Deloitte Development LLC. All rights reserved.
  • 37. Oracle Listening Post “ Chaos” “ Comprehension” Twitter Blogs RSS Digg Voice SMS Moderator Email Analysis Categorisation Trends Relevance Sentiment Decisions
  • 38. Questions & Answers Copyright © 2009 Deloitte Development LLC. All rights reserved.
  • 39. Join us October 29 at 11 AM EDT as our Consumer Business series presents: Cyber Challenges and Data Breaches in the Consumer Environment Copyright © 2009 Deloitte Development LLC. All rights reserved.
  • 40. Contact info Scott Rosenberger Principal, Deloitte Consulting LLP [email_address] Fabio Cipriani Customer & Market Strategy Manager, Deloitte Consulting Brazil [email_address] Michael Finneran Senior Manager, Deloitte Consulting LLP [email_address] Mark Woollen VP, Social CRM Products, Oracle Inc. [email_address]
  • 41. This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation.
  • 42. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
  • 43.