• Like
  • Save
Accenture social crm_research
Upcoming SlideShare
Loading in...5
×
 

Accenture social crm_research

on

  • 745 views

 

Statistics

Views

Total Views
745
Views on SlideShare
744
Embed Views
1

Actions

Likes
0
Downloads
19
Comments
0

1 Embed 1

http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

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…
Post Comment
Edit your comment

    Accenture social crm_research Accenture social crm_research Document Transcript

    • Preferred Letter Alternate LetterBrochure Title Brochure TitleSocial CRM: The New Frontierof Marketing, Sales and Service
    • Social CRM: The NewFrontier of Marketing,Sales and ServiceThe emergence and increasing Such a strategy will help them work for all customer needsusage of social media and touch customers at many and segments, even thoughother Web 2.0 tools has more points and much earlier they can significantly alter thedramatically altered the in the buying process, often role played by more traditionalways in which companies at lower cost than that of contact channels.interact with their customers. more traditional marketing, In short, social CRM presentsFor instance, buying advice, sales and customer service many opportunities to build aproduct information and channels. To do so, companies distinctive capability that cantechnical help is increasingly should embrace the social serve as a building block ofbeing disseminated from media channels being used by high performance: a methodconsumers to other consumers, their customers, identify and to potentially connect morein some cases without engage with the “super-users” tightly with customers at lowerinvolvement or oversight by who supply product expertise cost and in a way that providesthe provider. Clearly, this shift to other customers, and a real differentiation frompresents both opportunities harness the power of advanced competitors.and risks to companies. analytics to provide broad insights on customer needs,To derive greater value from wants and behaviors. Perhapsthese new communication most importantly, companieschannels, companies should must remember that socialadopt a “social CRM” strategy. media and Web 2.0 will not Retweet The New Frontier of Marketing Sales and Service | 2
    • Figure 1. As social media has grown in importance, original equipmentmanufacturers’ control of the buying and service process has declined. Control OEM has over buying/service process Growth in social media No Web Early stages Social networking of Web and cloud explodesThe evolution of manufacturer’s call center for support. The introduction of the Internet gave The Conference Board found 77 percent of adult Internet users considered blogsthe Internet and consumers more options. They could access further information on products— a good way to get information about a company or product.3social media as well as limited support information— via the retailer’s or manufacturer’s The preceding data reflects aThe evolution of social media and other websites. For most products, though, fundamental shift from a predominantlyWeb 2.0 tools is having a significant consumers still had to go to a physical “company to consumer” dialogue toimpact on both how consumers interact store to purchase items and call the a “consumer to consumer” dialogue.with companies and the level of control manufacturer for support. Indeed, a recent survey from Forrestersuch companies have over the sales, Research found nearly half of onlinemarketing and service of their products. Today, consumers make their purchases users say information provided by(Although it is difficult to find consensus either via retailers’ or manufacturers’ other consumers is more importanton what exactly is meant by “social sites or retailers’ physical stores. to them than data given by marketersmedia,” for the purpose of our discussion, However, as social networking and of products and services.4 In this newthe term refers to Internet and mobile other Web 2.0 tools have exploded in world, companies have an opportunitychannels that enable users both to view popularity—a recent study found the or a threat, depending on how theyand create content and to share that number of social networking users adapt marketing, sales and servicecontent with others.) has doubled since 20071—consumers have many new sources of productConsider the example of original information and buying advice, as well 1 “Number of Social Networking Users Hasequipment manufacturers (see Figure as answers to usage and technical Doubled Since 2007,” Adam Ostrow, July 28, 2009, http://mashable.com/2009/07/28/social-1). In the pre-Internet days, consumers questions about the products they networking-users-us/interested in purchasing a product have purchased. According to a recent 2 “Engaging Consumers Online,” DEI Worldwide, 2008either asked their friends or a retailer for study by DEI Worldwide, 70 percent of 3 Executive Action Series, No. 251, Sheri Rothman,advice. They had to go to the retailer’s consumers have used social media to The Conference Board, November, 2007 4 “Justifying Social Marketing Spending,” Forresterstore to buy the item and call the get information on a product, brand or Research, February 2009 company.2 Furthermore, a report from Retweet The New Frontier of Marketing Sales and Service | 3
    • "According to a recent study by DEI Worldwide, 70 percent of consumers have used social media to get information on a product, brand or company. Furthermore, a report from The Conference Board found 77 percent of adult Internet users considered blogs a good way to get information about a company or product." Retweet The New Frontier of Marketing Sales and Service | 4
    • Figure 2. Consumers’ changing preferences and behaviors have madeonline life more complicated for providers of all kinds.Old World Banner Website Search Direct Phone Call Center Mail Lead Gen Rep PhoneNew World Social Video IP TV TV Rating Sites Paid Search Widgetsentertain inform convert Website connect assist Blogs Call Rep Print Center Mobile Email Organic Banner Search Community Lead Gen Direct Mail Retweet The New Frontier of Marketing Sales and Service | 5
    • Figure 3. Social CRM changes marketing from a push-through funnel to a real-time dialogue at allstages of influence.Forced Message Push "Unlimited" opportunities for dialogueAwareness AwarenessConsider ConsiderPurchase PurchaseUsage UsageLoyalty Loyalty Spectrum of opportunity for interaction to influence choice Seized opportunity to Untapped opportunity to influence choice through influence choice through dialogue/interaction dialogue/interactionof their own products to a new In addition, because of the speed with The collapse of the marketing funnel,consumer ecosystem: one in which which customers and information in turn, means the distinctionsenthusiasts and detractors can dictate move today, companies must be able to between marketing and sales becomecustomer perception and experience for incrementally, and very quickly, improve further blurred and, in some cases,manufacturers. their operations based on what they disappear entirely. In fact, social media learn from observing customers. As a increasingly is being referred to not inRamifications for result, many companies have shifted the focus of their investments from building terms of marketing or sales, but rather, as an “engagement channel,” whichproviders channel infrastructure to creating nimble and robust content management and incorporates elements of both marketing and sales.What are the ramifications of this shift? data collection and analysis capabilities. With consumers increasingly relying onAt a high level, the evolution of social From a marketing perspective, the third-party sites for usage and technicalmedia has introduced new contact evolution of social networks and online information, manufacturers must buildchannels that must be integrated into communities has resulted in a collapse of capabilities to strengthen their brandsmarketing, service and support strategies. the marketing funnel (see Figure 3). and customer loyalty via these channels,However, while social networking and How so? Traditional, mainstream as well as to up-sell and cross-sellsocial media are certainly on the rise, marketing forces a message through relevant, related products and services,there are still large groups of customers the marketing funnel, moving through and gather and integrate cross-channelwho do not communicate via these tools. stages from building awareness to customer data. Indeed, smart use ofTherefore, differentiated service takes on earning loyalty. It only allows dialogue these third-party channels can becomean even greater role because of these and relationship building as the prospect a powerful way to boost image andnew channels. A thorough understanding or customer progresses through the customer satisfaction while reducingof customers’ channel preferences, funnel. By contrast, the digital revolution, CRM operational costs.combined with insights into the true and particularly social media, makes itvalue of customers to the business, must possible to engage in a dialogue withdrive how companies interact with each prospects or customers much earlier andrespective segment (see Figure 2). at many more touch points. Retweet The New Frontier of Marketing Sales and Service | 6
    • A way forward: to discover those that resonate with customers. One example is Intuit, provide valuable intelligence on what customers are thinking, too much focussocial CRM which has successfully embraced and enabled a passionate online community on one source or one segment can lead to a narrow or biased perspective. Thus,What should companies do to respond of QuickBooks users that since has companies must integrate the datato these changes? They should start become the place to go for customers they gain from online channels withby developing a “social CRM” strategy, seeking advice and service. Extending other, more holistic quantitative andwhich Accenture defines as an operating this commitment to the customer qualitative data gleaned from othermodel, supported by technology and further, Intuit recently purchased Mint. sources to paint a more accurate picturebusiness processes, that is designed com, a provider of free online tools that of their overall customer base.to engage customers in a mutually help consumers manage their finances. "With this transaction, Intuit will gain As they develop their social CRMbeneficial two-way conversation. Social another fast-growing consumer brand strategies, companies should consider aCRM is a company’s necessary response and a highly successful Software as number of actions they can take withinto its customers’ transformation a Service (SaaS) offering that helps marketing, sales and service to build andfrom spectators (“TV watcher," people save and make money," said strengthen customer relationships."newspaper reader," "Web browser”) toparticipants ("product rater," "blogger," Brad Smith, Intuit CEO. "This move will"ambassador") and their subsequent enhance Intuits position as a leadingco-ownership of the company’s brand. provider of consumer SaaS offerings that connect customers across desktop,A key element of a social CRM online and mobile."5operating model is a very flexibleframework that allows a company to However, companies also must be careful to balance the online feedback 5 “Intuit to Acquire Mint.com,” Intuit press release,observe what customers are doing September 14, 2009, http://about.intuit.com/about_and saying, and then experiment they gain from customers and prospects. intuit/press_room/press_release/articles/2009/with different customer experiences While such feedback certainly can IntuitToAcquireMint.html Retweet The New Frontier of Marketing Sales and Service | 7
    • Implications of The National Football League also recently substantially upgraded and devices such as mobile, PC and IPTV, as well as services, including Facebook,social CRM for expanded its social media presence. For the 2009 college player draft, the Twitter, Linkedin); content types (such as user-generated media, short-form videomarketing and league set up what it called "Fan War Rooms" for each of the league’s teams, and long-form video); units (for example, ad units); and pricing models (such assales in which fans could interact with each other about their specific team’s draft cost-per-action, cost-per-engagement or cost-per-desired-outcome).The end of the marketing funnel may picks. The NFL also provided a constantlead to significantly more, earlier, live stream of tweets directly from draft This increased fragmentation meansdeeper and richer opportunities to headquarters through the days of the analytics must be focused on abuild a dialogue with prospects and event and created a widget for Facebook wide range of communication: whatcustomers, and can offer an enhanced that enabled fans to follow the action customers tell the company throughopportunity to build relationships and via their own Facebook pages.8 In tweets, Facebook, Amazon.com userinfluence choice. At the most basic preparation for the 2009 season kickoff reviews, emails, phone and otherlevel, this entails companies embracing in September, the league expanded its channels; what they say to each other(not controlling) all the tools and social social media and community section at through these channels; and howmedia their customers are using to join NFL.com to include “fan postings, live they interact with other companies.the conversations and meaningfully chats with players and coaches, fan- Furthermore, users increasingly wantengaging with customers—or, at the edited video highlight reels, aggregated to enjoy experiences in a seamless wayvery least, gaining insights into what Twitter and Facebook feeds, quizzes, across multiple screens and platforms.customers are thinking and feeling, polls and other similar material.”9 The permutations of all these variationswhich could lead to new opportunities will require much more than simpleto reach them. Social media monitoring tools also can spreadsheets and gut feel to create glean both quantitative and qualitative the most appropriate experiences forAs an example, Virgin America has more responses to advertising campaigns for each customer segment, and willthan 20,000 followers on Twitter, which promotions, illuminate opportunities to make optimal marketing spendgives the airline incredible access to improve one’s brand, uncover significant allocation decisions.an engaged and loyal community of unmet customer needs, and identifycustomers. But beyond simply enabling people who may be highly predisposedVirgin to quickly and inexpensively to a brand or product. Furthermore, wereach customers, the airline’s Twitter believe there will be significant andaccount actually does the selling for the disruptive innovations within the nextcompany when newcomers ask if they five years in the area of highly relevant, 6should fly Virgin. targeted marketing that becomes part of the perceived high relevanceDrugstore.com emails its customers of the experience itself. Companiesautomatically three weeks after they that embrace such innovations willhave bought something to encourage be positioned to have a much greatercustomers to post a review of what influence on consumers’ choicesthey’ve purchased. The company’s chief and, consequently, realize significantmarketing officer says doing so not only increases in revenue and profitabilitymakes customers feel valued, but also and sustained competitive advantage.strengthens the connection between thecompany’s brand and its customers. As As fragmentation increases across thea result of the program, Drugstore.com board, companies will have to adopt 6 http://www.washingtonpost.com/wp-dyn/content/saw a more than 300 percent increase in more sophisticated analytics and article/2009/07/12/AR2009071200319.htmlnew reviews posted. In addition, because dynamic optimization capabilities to fully 7 “What Do You Think?” Geoffrey A. Fowler, The Wall Street Journal, October 12, 2009, page R6.customers who respond to the emails capitalize on social media channels. More 8 “How NFL is Drafting Fans Via Socialcan be verified as actual customers, specifically, companies will continue to Media," Elaine Wong, Brandweek, AprilDrugstore.com is able to identify see increased fragmentation in almost 23, 2009, http://www.brandweek.com/bw/reviews by these individuals as coming all attributes of user experiences as well content_display/news-and-features/direct/ e3i202b681b4f137513fd1730c682acf73bfrom actual purchasers, which adds as in performance marketing products 9 “NFL Kicking Off Some Site Upgrades,” Eric Fisher,authenticity to the reviews and further and services. We will see fragmentation Sports Business Journal, September 7, 2009, 7bolsters the company’s credibility. in engagement platforms (for instance, http://www.sportsbusinessjournal.com/article/63490 Retweet The New Frontier of Marketing Sales and Service | 8
    • Support and understand customer service issues and proactively respond before they service in the can impact their brands. Other leading companies—aided by the use of new social media era capabilities from enterprise software providers—are using sites such as Twitter Consumers today increasingly see to more quickly solve service questions. social media as channels and tools A great example is Comcast, which for customer service. Indeed, one managed to turn a customers "Tweet" recent study found that 43 percent of into a case study on how to learn about consumers think companies should use and resolve a customer’s issue via a social media to solve their problems.10 social network. In this case, an influential customer (a well-known tweeter with A number of leading enterprises have 12,000 followers) called out Comcast via taken major strides toward fulfilling Twitter for the trouble he was having such wishes by creating an online with his Internet connection. Comcast environment that enables customers discovered the tweet and, within to interact with each other as well 20 minutes, responded and restored as company representatives to find 13 service. In his speech at the 2009 Web solutions to their issues. For example, 2.0 Summit, Comcast CEO Brian Roberts Sybase utilizes newsgroups to enable said Twitter “has changed the culture of users to communicate with product our company.”14 engineers and other users about specific issues, thereby creating a forum for customers to seek and obtain technical Social CRM is driving a sea support. And this is a rich experience: change that is requiring the customer gets multiple answers to companies to invest in new his question from a variety of sources, service and support capabilities. including super users (“Team Sybase” volunteers) and Sybase employees. From To Furthermore, each community forum is categorized by product to simplify the Static Dynamic customer’s search for information.11 Knowledge Knowledge Management Monitoring A variation on this theme is the approach taken by Samsung, which Call Center Social Media partnered with CNET to create an Operations Integration online community for all Samsung products. Although the forum is staffed Information Desktop by Samsung employees, it is far more Gathering and Applications than just a “Q & A with Samsung.” The Analysis company acknowledges that often the most helpful answers come from forum members themselves, and encourages 10 “Cone Finds That Americans Expect users to contribute their insights to Companies to Have a Presence in Social Media,” company news release, September 25, 2008, help those with questions.12 The key is http://www.coneinc.com/content1182 to determine how to “authorize” users 11 http://www.sybase.com/support/community- to provide assistance and enable and forums support the most helpful of these users. 12 http://forums.cnet.com/5204-13973_102-0. html?forumID=146 13 http://www.penn-olson.com/2009/09/21/5- Transforming the ways in which service social-media-disasters/ is provided is only the beginning. Social 14 “Comcast: Twitter Has Changed the Culture of CRM also can be used to help companies Our Company,” MG Siegler, TechCrunch, October proactively unearth issues before they 20, 2009, http://www.techcrunch.com/2009/10/20/ comcast-twitter-has-changed-the-culture-of-our- become problems. Indeed, many leading company/ companies crawl third-party sites toRetweet The New Frontier of Marketing Sales and Service | 9
    • Figure 4. The “virtuous loop” knowledge management lifecycle.Authors create and/or Publishing workflow hormodify content. Authors Aut allowing for review,now may be customers P approval and publishing.as well. ub lis hContent analytics are Analyticscritical to understandingwhat content is beingused and rated. Theseanalytics provide insightto where improvementsare needed and what isworking well. me Users (i.e., agents and su Fe n ed Co bac customers) use theUsers provide feedback k content. Analytical datasuch as recommendations is gathered based onfor new content or updates this usage.needed and/or ratings onhow useful content is. Salesforce.com has announced it will loop” that provides for a continuous integrate Twitter into its solution, process of learning, whereby solutions and complementing its existing integration answers are created and strengthened by with Google and Facebook. This solution input from both customers and internal will enable a company to both conduct resources—which, in turn, makes the automated searches of Twitter content overall online service experience more to be pulled into salesforce.com’s system, robust, helpful and easier to use (see and to set up alerts when Twitter users Figure 4). The key to such a virtuous loop mention the company name to track is a technology platform that can support sentiments.15 Of course, such tools do customer forums, self-service FAQs and not completely obviate the need for internal knowledge management in the personal intervention. Virgin America, same framework. for instance, has the equivalent of 1.5 people dedicated solely to monitoring Second, social CRM gives companies and engaging Twitter and other social the opportunity to redefine the roles networks to understand what customers played by their contact centers and are saying about the airline.16 the agents who work in them. Indeed, with an increasing volume of simple In incorporating social media into its transactions being supported by self- service and support operations, a company service channels (including mobile must keep several things in mind. First devices, IVR and kiosks), the role of the and foremost, companies must ensure call center gets drastically diminished. they integrate their customer forums with their internally developed knowledge 15 http://thenextweb.com/2009/03/23/salesforce- management systems. Importantly, the integrates-twitter-service-cloud/ integration should support a “virtuous 16 http://www.washingtonpost.com/wp-dyn/content/ article/2009/07/12/AR2009071200319.html Retweet The New Frontier of Marketing Sales and Service | 10
    • "The end of the marketing funnel may lead to significantly more, earlier, deeper and richer opportunities to build a dialogue with prospects and customers, and can offer an enhanced opportunity to build relationships and influence choice."For many companies, it may make sense “virtuous loop” knowledge management, a customer’s situation—using low-cost,to allow external communities to handle the time needed to resolve these issues offshore engineering resources as well asTier 1 and possibly even Tier 2 levels of will be substantially reduced and first- a new generation of automated tools thatservice inquiries. Such communities, which call resolution will be much more likely. can rapidly collect and sift through datacan provide a high level of service at costs to glean insights into what a customermost companies cannot touch, include Third, each interaction—regardless of the is experiencing—than they would getnot only ad hoc collections of customers, channel in which it occurs—must be united through an initial phone conversationbut also more formal entities such as into one complete composite customer with a much more costly customer serviceCrossLoop. CrossLoop is a “consumer record that can provide accurate, cohesive agent. This arrangement has the potentialInternet company that empowers service. In other words, a social CRM to substantially reduce the cost structureeveryone to help someone anywhere in strategy should ensure that interactions of support while streamlining andthe world with its free and easy-to-use with call centers become more customer- simplifying the process for consumers.software application for desktop sharing. focused, value-added and relationship-CrossLoop connects computer users with based. The key is that companies no longer Finally, companies can improve thetrusted, qualified service providers and can optimize a single channel, but rather, user experience while reducing servicefriends who can provide the support they must optimize the customer experience and support costs by building into theirneed quickly and conveniently.”17 across all channels of support, which products or services some capability requires the integration and analysis of that enables customers or the devicesHowever, even with external structured as well as unstructured data themselves to proactively take chargecommunities handling much of the in real time. Technologies that exist today of problems on their own. An obviousinitial service requests, companies still make such “voice of the customer” analysis example of this “soft panel” approach iscan expect direct calls from customers much more active, enabling companies to the ability of devices such as the Xbox andunwilling or unable to take advantage of analyze a customer contact as quickly as iPod to assess the condition of the deviceself-service options—so companies must five minutes after the interaction. each time it is connected to the Internethave agents who can provide personal and automatically download or suggestservice when needed. If a company Fourth, the interconnectedness of today’s new software to correct any shortcomings.has adopted the preceding principle of high-tech products via the cloud enables companies to get more information on 17 http://crossloop.com/about/aboutus Retweet The New Frontier of Marketing Sales and Service | 11
    • Conclusion From a marketing and sales perspective, companies should embrace the same sites preferred sources of solutions to customers’ problems. Also, companiesWe are at a tipping point. The majority social media sites their customers use, that crawl third-party sites to proactivelyof customer CRM interactions now are and use those sites to both create identify possible service issues mentionedoccurring outside of company-controlled dialogues with customers to help them in consumers’ online conversations canchannels, and companies must adjust with their purchase decisions, and mine avoid or reduce the impact of potentiallytheir CRM operating models to adapt sites for information on what customers bigger problems that arise when issuesand engage these outside channels are saying about the company and its are left unaddressed.to drive growth and keep customer products. New tools that enable the amalgamation and analysis of a wider By making social CRM an importantsatisfaction high. element of their customer strategies, range of quantitative and qualitative dataAs noted, consumers are increasingly will be a key enabler in this regard. companies are better positionedactive users of social media sites, and to achieve a stronger and morethey also view such sites as purveyors In terms of service and support, differentiated market position, provideof important and trusted information organizations need to leverage social superior service, lower operational costson companies, products and brands in media and Web 2.0 tools to create more and attain a competitive advantage—allwhich they are interested. Companies robust service and support capabilities of which helps them take major stridesthat recognize, embrace and integrate that enable customers to interact toward high performance.social CRM into their customer- with each other as well as companyfacing operations for marketing, sales representatives to find solutions toand service are better positioned to their issues quickly and easily. Robustsimultaneously improve their consumer customer forums, powered by passionaterelationships while reducing the cost of customers who are appropriatelymarketing, selling and delivering service. incented and rewarded by the enterprise, are especially critical to making these Retweet The New Frontier of Marketing Sales and Service | 12
    • About the Authors About AccentureTodd R. Wagner is a senior executive Accenture is a global managementleading Accentures Management consulting, technology services andConsulting CRM practice for outsourcing company, with more thanCommunications and High Tech in North 176,000 people serving clients inAmerica. He specializes in customer more than 120 countries. Combiningexperience strategy and operations unparalleled experience, comprehensiveacross marketing, sales and service capabilities across all industries andfor enterprise and consumer facing business functions, and extensivetechnology companies. He can be reached research on the world’s most successfulat todd.r.wagner@accenture.com. companies, Accenture collaborates with clients to help them becomeJoe Hughes is a senior executive in high-performance businesses andAccenture’s Global Systems Integration governments. The company generatedpractice and leads the Global Customer net revenues of US$21.58 billion for theService and Support and Integrated fiscal year ended Aug. 31, 2009. Its homeDesktop Offerings for Accentures page is www.accenture.com.Electronics and High Tech industry group.Joe specializes in Voice of the Customeranalysis and the service applicationsof Social CRM. He can be reached atjoseph.p.hughes@accenture.com.Copyright © 2010 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.This document makes reference to trademarksthat may be owned by others. The use of suchtrademarks is not an assertion of ownershipof such trademarks by Accenture and is notintended to represent or imply the existence ofan association between Accenture and the lawfulowners of such trademarks.This document is produced by consultants atAccenture as general guidance. It is not intendedto provide specific advice on your circumstances.If you require advice or further details onany matters referred to, please contact yourAccenture representative. Retweet The New Frontier of Marketing Sales and Service | 13