How Strategic Social Customer Service Generates and Preserves Revenue
Upcoming SlideShare
Loading in...5
×
 

How Strategic Social Customer Service Generates and Preserves Revenue

on

  • 718 views

Most organizations measure the value of customer service as a cost center. Few take the position of seeing customer service as the provider of customer satisfaction, loyalty and word of mouth.

Most organizations measure the value of customer service as a cost center. Few take the position of seeing customer service as the provider of customer satisfaction, loyalty and word of mouth.

To view customer service as a strategic asset requires that the organization see customer service as a revenue generator and a preserver of revenue. Strategic customer service then provides a new financial view of service and the investments in the end-to-end customer experience.

In this talk, we’ll cover strategic social customer service, including:

* Impact of social media on customer problem prevention.
* Why customer service is PR and PR is customer service.
* Large, blue chip company case study for social customer service ROI.

Statistics

Views

Total Views
718
Views on SlideShare
696
Embed Views
22

Actions

Likes
0
Downloads
13
Comments
1

4 Embeds 22

http://www.kathyherrmann.com 17
http://www.linkedin.com 2
http://kathyherrmann.com 2
https://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Great presentation, Kathy. But I don't realize how SM Team does make savings/revenues with nonvocal customers. Is there any engine to detect these customers and engage they proactively?
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Has your call center determined the financial impact of the cost savings and the revenue improvements? It is a worthwhile exercise but takes some time that we don’t have today. Include the budget people from the call center operation in the discussion.
  • Do you know the average costs for each component in the People, Process & Technology area. Start a brief discussion about each one
  • Adjusting subscribers to 85m from 92m.Adjusting churn to 0.95%.Lowering Non-complaining social media saves to 0.2% (which makes it the same rate as for complaining customers).Per Marina’s suggestion, everything is also shown as rounded.  The result is now about $16m in total savings with an ROI of 1097% (the big hit being lowering the social media save rate).
  • .02% of at risk subscribersAdjusting subscribers to 85m from 92m.Adjusting churn to 0.95%.Lowering Non-complaining social media saves to 0.2% (which makes it the same rate as for complaining customers).Per Marina’s suggestion, everything is also shown as rounded.  The result is now about $16m in total savings with an ROI of 1097% (the big hit being lowering the social media save rate).
  • The is a list of questions that should be completed in class as an exercise.

How Strategic Social Customer Service Generates and Preserves Revenue How Strategic Social Customer Service Generates and Preserves Revenue Presentation Transcript

  • How Strategic SocialCustomer Service Generates and Preserves Revenue Kathy Herrmann and Dr. Natalie Petouhoff
  • Kathy Herrmann Dr. Natalie Petouhoff Measurement & Insight, BCF UCLA & Executable Strategies (757) 497-4811 (310) 919-8467kherrmann@boomyourbrand.com DrNatalie@gmail.com www.boomyourbrand.com www.drnatalienews.com
  • ROI Considerations3
  • Start with Objectives and Strategy……know where you want to go.
  • Measure the right results.The end goal of measurement is not to collect a bunch of metrics but to gain
  • CXOs will look for actionable intelligence in monetary terms… …revenues or cost savings.6
  • What is ROI? A Numerical view of strategy And high ROI means executive approval for your initiative. 7
  • ROI Primer8
  • 9
  • Examples of Benefits Cost Savings Reduce call volume Reduce email volume Increase agent productivity Increase FCR Reduce SEO cost(Impact on Business) Revenue Improvements Increase customer lifetime value, including customer retention Increase product ideation Increase lead conversion rates
  • Cost Examples People Training Staff Process Marketing of community(Impact on Technology Budget) Community website design Single sign-on Integration to contact center applications, such as CRM Platform subscription fee Analytics Reporting
  • Large Call Center case study12
  • Annual Results: • Blue Chip services- oriented company • Revenues = $34.6b • Customers = 100.7m • Total Call Center reps = 30k • Social media team = 25 members
  • Social approach - Twitter: • Proactive tweets based on call drivers. • Conversational tweets to: • Answer questions, • Address complaints. • Agents friendly, approachable. Given autonomy.
  • ROI Focus:1. Agent deflection2. Customer retention revenue
  • The Customer Retention Revenue Impact™ Model• Financial point of view about the value of Customer Service to the organization• It’s based on the: – Ability to prevent problems – Ability to fix problems – Customer word-of-mouth power and – Company’s financial goals to generate and preserve revenue
  • Most customers don’t complain before deciding to leave! Aggregate of company’s survey data & call center stats: 101m Satisfied Dissatisfiedcustomers 85% 15% total Churn Risk 15m Stay Silent customers 98% Complain at Risk 2% Industry averages Saving the silent majority = $$$
  • Impact of Social Media 2% Complain 98% Stay Silent• Most complaints are fixed • Most customers never in the call center complain but “suffer in silence”• Unresolved complainers can be highly “visible” to • Social can resolve issues, others friends/social and influence “silent media sufferers” who watch what we do and say in• Social Media team has social media opportunity to fix 15% of complainers (not resolved by • One to Many Call Ctr. or who posted their issue in the social sphere and never called) Revenues retained = $10.3m/ year By saving a portion of the 15m customers
  • ROI Description 19
  • ROI Description 20
  • ROI Description 21
  • ROI Description 22
  • ROI Flowchart – Case Study 23
  • ROI FormulaROI= (Gains - Costs)/Costs x 100= ($10.3m - $1.5m)/($1.5m) x 100= 583% 24
  • Steps to Setting Up Social Media Measurement Program
  • Set up business goals1. Talk with business stakeholders to find out what business goals they want to reachExamples:• Decrease customer service calls to the contact center• Increase sales enquiries or conversions by 10% from social media sources within 3 months
  • Goals For Social Media• Why are you participating in social media?• What percent of your customer base uses which sites?• How will social media improve the customer experience?• How will social media help you build and reinforce your brand?• How will you support agents in monitoring and responding to social media?• How will social media help you build your knowledge base?• What protocols are in place to help agents determine when and how they should respond?• How will agents use the knowledge base to support conversations?
  • Set Up Social Media Measurement Program2. Determine what data / measurement process you have.• Often times companies don’t have a measurement process for social media.• Sometimes the data required for calculations may be housed in other departments.3. Determine what you are going to measure:• Set your key performance indicators.
  • Set Up Social Media Measurement Program 4. Measure and calculate your baseline. 5. Determine your ROI. 6. Make changes to your measurement process, your social media strategy and do it again.
  • Benefits to Social MediaMeasurement Program • Articulate the business case. • Calculate value & ROI. • Do more of the right things. • Put structure around what can seem unstructured. • Benchmark “As Is” and create a “Could Be” plan. • Justify the plan to upper management by showing them the business reasons. • Track the progress, gather the right metrics . • Assess the progress & iterate. • Create and sustain a world-class social enterprise brand.
  • By calculating ROI you will gain…• Better executive buy-in.• Increase budget spend.• Do more of the right things.• Get better decision making- to make the right changes to your company so it stays competitive. 31
  • Kathy Herrmann Dr. Natalie Petouhoff Measurement & Insight, BCF UCLA & Executable Strategies (757) 497-4811 (310) 919-8467kherrmann@boomyourbrand.com DrNatalie@gmail.com www.boomyourbrand.com www.drnatalienews.com