Morley using social crm to build competitive advantage

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Blog reference: At this point I invite you to read the attached white paper, which covers additional benefits and implementation stages for using SCRM to build a competitive advantage. FYI, I helped develop this whitepaper for my client Morley (www.morleynet.com), a great partner for managing contact centers as they do so for several Fortune 500 companies.

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Morley using social crm to build competitive advantage

  1. 1. Interactive Using Social CRM to Build Competitive Advantage Imagine a company that can interact with a consumer across multiple brands and touch points, understand the interests, passions and preferences of that consumer, and provide the consumer with relevant experiences at his/her preferred touch point(s). Developing this capability into a global center of excellence requires establishing a consumer relations communications hub that can identify individual consumers and manage these interactions across its touch points. It also requires a shift from “inside out” communication and processes to “outside in,” where the consumer is not only a user of the product, but also its developer, salesperson and publicist. Driving Consumer Value In their book Strategy From the Outside In: service offerings for each individual Profiting From Customer Value (July 2010), consumer. By 1998 Pine and Gilmore professors George Day of the Wharton welcomed us to the “experience School and Christine Moorman of the economy” and told us that we could drive Fuqua School challenge companies consumer satisfaction by creating unique to create consumer value by standing experiences, many of which were made in the consumer’s shoes and viewing possible by mass customization. everything the company does through As consumer satisfaction and mass the consumer’s eyes. They believe that customization merged, Customer consumer value is driven by a company’s Relationship Management (CRM) was ability to engage in a collaborative born. We now had a systematic approach conversation with the consumer. to building the value of a consumer by Social media and social networking are listening to and recording the consumer’s creating the opportunity for an increasingly preferences in order to produce a product direct dialog with consumers. Facilitating specific to the consumer’s needs. However, these conversations requires identifying this approach was too often practiced as a consumers and their experiences across data-driven efficiency exercise where the internal and external touch points, and company makes the rules and defines then making each engagement relevant to the channels of communication. each consumer. This is all made possible Enter the era of social media and the through Social CRM. birth of the online “community.” MySpace How Did We Get Here? (2003), Facebook (2004), Twitter (2006), Foursquare (2009) and the personal Ever since Xerox discovered that its blog have all contributed to encouraging “completely satisfied” consumers were the never-ending flow of personal six times more likely to repurchase than its information now available for those who merely “satisfied” consumers, companies care to listen. Today’s consumers are have sought to understand the connection blogging, posting, tweeting, checking between consumer satisfaction and loyalty. in and crowd sourcing in a deliberate About the same time, in 1992, Joe Pine effort to broadcast their interests to an introduced us to “mass customization” ever-growing constituency of fans. and asked us to think about using computers to customize product andMoving People to Move Mountains®
  2. 2. CRM  TRANSITIONS TO  Social CRM The company (sales and accounting)  The global online community that expresses  Who and its customers. an interest in the company or its products. The company creates customer  What service processes.  The company supports its social community.  When The company operates on its  timetable during business hours.  The company operates on the  community’s timetable – 24/7. Where The company has pre-defined  channels to address customer needs.  The company is fluid and communicates through the community’s preferred channels. Why The company focuses on  transactions as the KPI.  The company focuses on community  relationship building as the KPI.    The company sees things from the  The company sees things from the outside  How inside out and interacts with customers  in and lets the community’s perspective  based on company needs.  guide its interactions.Social CRM is the real-time art of listening What has changed is the environment forto this constantly growing community, achieving these goals. Through the userecording their interests, passions and of Social CRM, companies can engagepreferences, and engaging with them directly with their consumers and betteron their terms. In this new paradigm, understand and record their interests,the consumer makes the rules, defines passions and preferences.the channels and leads a collaborative Social consumers can become trulydiscussion regarding the goods and collaborative partners helping to build andservices they desire. deliver better products and services. ThisHow Is the Current deeper engagement drives loyalty, thusEnvironment Different? strengthening ties with your brand and increasing your competitive advantage.While it is easy to be overwhelmed Further, as Social CRM extends its reach,by this flood of information, focused local engagements help build the globalcompanies are still asking the “outside in” community, and access to a globalquestion: “How can I completely satisfy community helps bring innovation andmy consumer and develop an evangelist information to local markets.that will carry my message to otherconsumers?” The answers are largelythe same: “…the consumer makes the rules,• Create a great product. defines the channels and leads a• Surround it with relevant services. collaborative discussion regarding• Have a plan for fantastic service the goods and services they desire.” recovery.• Provide the additional intangibles that set you apart. 2
  3. 3. The Story of Julie Jones CRM Imagine that Julie Jones, consumer of newspapers, buys an online subscription to The Wall Street Journal (WSJ). In the process of signing up for the paper, she gives her basic demographic information. The WSJ now knows her name, that she lives in Ridgefield, Connecticut, and that she works at General Electric. This last piece of information was optional, but Julie wanted to record it as part of her profile. As an online subscriber, the paper lets Julie “personalize” her WSJ home page by identifying stocks that she watches and industries that she follows. As a result, every time she logs onto the WSJ website, the stocks that she follows are listed in their own column along with links to news stories about both the companies and the industries that she follows. In this example, the WSJ has used data that Julie supplied to customize the way that it delivers its product to her. The hope is that, by helping her sort through the news more efficiently, the WSJ is raising her satisfaction regarding its product/service offering. That’s how CRM is practiced; it is data driven, it flows out from the company to the consumer and it is communicated through a company-defined channel. Social CRM Owned Media Now let’s advance the story a bit and say that Julie is one of the 500 million people who has a Facebook account, and one of the places that she likes to visit within Facebook is The Wall Street Journal Fan Page. During a recent visit, she feels compelled to comment on a story that really moved her. At the end of her post, Julie mentions that she was trying to send the story as an e-mail, but the system lost her contacts. Later that day, much to her surprise, Julie gets an e-mail that reads: “Sorry to hear that the system lost your contacts. We checked into it and found that we were able to retrieve them for you, so we put them back into your profile. Hope this helps. Please let us know if there is anything else that we can do for you.” In this scenario, we assume that the WSJ practices Social CRM and has a proactive consumer relations contact center. If so, it is able to engage Julie and complete a service recovery operation. If Julie is like most consumers, this will strengthen her relationship with the WSJ beyond what it would have been had the problem not occurred. That’s how Social CRM is practiced; rather than a data-driven prompt to serve Julie, the WSJ responded to a social event prompt. Rather than being initiated by the company, it is initiated by Julie. Rather than delivering a response through a company-chosen communications channel, it is through a communication channel chosen by Julie. 3
  4. 4. Earned MediaLet’s move our story forward by assuming Julie was so impressed with thecustomer service that she received that she posts the story on her Facebook page where her 130 friends can see it. A colleague at GE sees it and posts it on a professional blog that she maintains. Once there, it generates a string of responses. Eventually a story line develops around the idea of using the WSJ to research companies before going on sales calls. Someone even jokes that the WSJ should sell a service called “Everything you need to know before setting foot inside a prospect’s business.”Social Market Research – “Listening”To make things interesting, let’s assume that the WSJ employs sophisticatedlistening technology, and that by listening, the WSJ picks up the Facebook postand the blog post. Let’s further imagine that the blog story fits into a growingsegment of WSJ subscribers who seem to be using the WSJ to researchprospective or existing clients.Note that by monitoring owned media and listening to earned media, the WSJ isable to gain insights into how its product is being consumed.Centralized Consumer Relations HubIf Dow Jones has a centralized communications hub, it could leverage thesecapabilities across all of its media properties as a global center of excellence.Supporting this effort would be a single database composed of CRM data, contactcenter engagements that include phone calls, web chats and e-mails, and socialengagements that include Facebook, Twitter and blogging. Thus, all of Julie’sinteractions with the WSJ would be available. Returning to our story, imagine that the WSJ uncovers an insight that seven percent of all Dow Jones consumers are using its publications to search for information about prospective or existing clients. Dow Jones decides to label this “friendly intelligence,” and builds a new intelligence gathering tool across all of its publications.In addition to the WSJ’s promotional efforts, a contact engagement professionalposts a comment on the blog that Julie’s friend maintains that reads: “We readyour post about the Journal and are thrilled to hear that your friends are usingit to research companies. We wanted to make sure that they know their Journalsubscription entitles them to use any of our other publications at no additionalcost. If they go to the WSJ home page they can find links to our new intelligencegathering tools. Good luck with the prospecting!”So at the end of our story we see how Social CRM is practiced:• It is relationship driven rather than data driven.• It is directed by the consumer rather than the company.• It is communicated through channels that are chosen by the consumer.• It is used to gather intelligence, develop insights, and launch or adjust product offerings.• It is a facilitation tool for a company that looks to its consumers as the critical link in creating products and services that lead to high levels of customer satisfaction. 4
  5. 5. Facts to Consider• The fastest growing sector of Internet Step 1: Start Listening use is communities (+5.4% in a year). As you establish a social presence, Nielsen, “Global Faces on Network engage in social market research and Places” listen to what consumers are saying about• Member communities reach more each brand, both inside and outside Internet users (66.8%) than e-mail of your owned communities. This is an (65.1%). Nielsen, “Global Faces on important step, as most consumers reside Network Places” outside of your owned communities• The average Facebook user has 130 (typically five to 10 times the population of friends, is a member of 80 different a brand’s self-identified communities). communities and creates 90 pieces of When people tweet, blog or post on social content each month. Facebook sites, they are presenting a slice of their• By 2010, over 60% of Fortune 1000 lives to a community. They essentially companies will have some form of reveal how they use each brand and the online communities deployed for CRM reason behind their usage. In the past, purposes. Gartner Group, “Business this type of derived demand information Impact of Social Computing on CRM” was only available through extensive conjoint analysis in a test environment. “It is the combination of social Today, we can actively listen and build an market research layered onto understanding of individual consumers by traditional CRM data that provides using their own words. the ultimate power to deliver relevant This program also taps into the macro experiences at optimal touch points discussions surrounding the parent brand and with appropriate frequency.” portfolio as it relates to specific issues such as “quality, health, innovation, environment and trust.” These can thenBuilding the Social CRM Model be benchmarked against competitors.Creating a global consumer relations The centralized knowledge base becomescommunication hub as a center of a key asset to identifying patterns,excellence requires truly knowing each discovering breakthroughs and drivingclient individually and being able to product innovation.interact with each appropriately. The Step 1 Goalsrecommended method for accomplishing • Mine all of the online and socialthis combines the traditional profiling of conversations across the parent branda CRM model with actively listening to portfolio on owned and earned socialconsumers and identifying influencers media (e.g., blogs, message boards,while they are interacting within their social networks, media and news sites).respective communities. It is the • Track each brand independently for datacombination of social market research accuracy.layered onto traditional CRM data that • Collect available profile data from eachprovides the ultimate power to deliver online conversation including users’relevant experiences at optimal touch hobbies, interests, demographics (agepoints and with appropriate frequency. and gender), geographics and ethnicity.This is achieved at even lower costs as • Merge all of the user profiles into oneconsumers also become ambassadors common profile database.and assist each other with tips, anecdotesand information on the brand. 5
  6. 6. awareness and cross-use linkage of brands. Step 3 is the stage at which specific campaigns and strategies can be developed through ideation. Step 3 Goals In Step 3, our goal is to gain insights by identifying: • Cross-correlated consumer profiles (i.e., users of multiple brands) • Consumer interests across the portfolio and between brands (e.g., dieting and weight loss are the primary purchase drivers for brands A, B and C) • Consumer demographics across theOne of the benefits of taking this first portfolio and between brands (e.g.,step comes from establishing individual Hispanics desire brands C, D and Fprofiles of people who are interested in because of reasons X and Y)your company. Social market research • The mindset of the consumer (e.g., X%gives us an independent method of of brand-A, -B and -C consumers loveidentifying consumers. It also gives us country music)greater insight into the true motivators of • Influencers across the portfolio andeach individual’s brand preference. Finally, between brands (identify and leverageit provides us with an effective opportunity influencers where they reside)to listen to how people view competitive • Other high-value insights that informproducts and the service offerings that strategic decision-makingsurround them. Step 4: Program Development & TestingStep 2: Integrate CRM Basic Social CRM engagements startIn Step 2, we take existing CRM with responding to the social promptsinformation developed at the brand level, that arise from listening to the owned andincluding the consumer contact centers, earned social media in Step 1. This leveland combine it with the profiles that we of engagement requires the developmentare developing through active listening. In of a database of answers and customermany cases, we are able to identify people service contact center training thatwho exist in both data sets and combine enables quick and accurate responses totheir records into highly accurate and these prompts.detailed profiles on a common informationtechnology platform. Additional engagement opportunities are drawn from gaining insights into the socialStep 2 Goals market research that accompanies Social• Identify internal consumer databases CRM. Here we are looking to stay ahead• Collect data of both the market and our competition.• Unify CRM profiles and Social CRM By using insights gained from this profiles in one common database process, companies can make changes to their communications plans and thenStep 3: Connect Data Points test the public reaction to those changes.This newly integrated, robust database Product launches, commercials and socialallows us to look at the entire experience initiatives can all be tested through thiscontinuum and develop the relevant centralized resource by providing real-timeexperiences, optimal touch points monitoring of public sentiment.and frequency that will increase 6
  7. 7. Social CRM Social “earn Media ed” ene pro onv files e/c Listening gag en Program Integrate Development CRM & Testing Connect s dev fi l e elo Data pro p insig ned” hts Points “owWinning the Race to CompletelySatisfy Our ConsumersWe believe that Social CRM is the logical anticipating consumer needs, literallyoutgrowth of customer relationship contacting them before they contact us.management. In fact, we believe that this Turning this capability into a competitiveis exactly what the early pioneers in the advantage requires the establishment offield were looking for – a way to listen to a consumer relations communicationsthe consumer, record what they want and hub that can listen and engage acrossgive them a better product at each turn all brands and all touch points. Byof the cycle. All signs point to the early accomplishing this, we can better servesuccess of this effort to positively impact our consumers by anticipating their needsindividual brands. However, the biggest and driving their satisfaction levels closergains seem to point toward centralizing to the ideal of “completely satisfied.”the function and “gathering all the trees sothat you can see the forest.” It is here that As has often been observed in the sociala company’s ability to leverage insights media space, it is not always the big thatcan truly result in the development of eat the small, but rather the fast that eat thecompetitive advantage. slow. Social CRM has the unique ability of keeping companies one step ahead in theSocial CRM allows us to observe how race to satisfy their consumers.consumers interact with multiple brandsacross multiple touch points. It allows usto understand the interests, passions andpreferences of consumers and gives us the For more information, please contact:knowledge to provide each consumer with Louis Furlo Jr.relevant experiences, at the optimal touch Regional Vice Presidentpoints and with the appropriate frequency. 187 Danbury RoadThis model of consumer relations is fast Wilton, CT 06897becoming the dominant paradigm for T 203.354.0971 F 203.354.0976 louis.furlo@morleynet.com www.morleynet.com 7

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