1. T he C us tomerE xperienc eIn a World of S oc ialMedia R evolution Ed Thompson VP, Analyst
2. “ May you live ininteres ting times ” Source: Confucius, 500BC Source: John F. Kennedy, 1966 Source: U-Turn by Duncan H Munro, 1950
3. Greek AutumnSource: Wikipedia
4. Arab SpringSource: Wikipedia
5. London SummerSource: Wikipedia
6. Welsh Winter
7. New Zealand Summer
8. Tools of Revolution?
9. Tools of Revolution… People
10. E ngaging P eople isR es haping S oc iety
11. E ngaging P eople isR es haping C ountries
12. E ngaging P eople isR es haping B us ines s
13. FacebookPublic Social Networks Skype Google+ The SourceCompuServe GeoCities LinkedIn Bebo 1980 1990 2000 2010 AOL Delphi Twitter BIX MySpace Orkut The QZone WELL Friendster
14. AgendaWhat’s happening today?What’s really happening today?Where are we heading?
15. AgendaWhat’s happening today?What’s really happening today?Where are we heading?
16. Top 10 CEO Business Priorities in 2011 Mean Rank Business Priorities in 2011 Rating Order Score 1 Retaining and enhancing existing customers 6.17 2 Attracting and retaining skilled workers / talent 6.09 3 Attracting new customers 5.89 4 Building a responsive, flexible organization 5.78 5 Reducing costs via better efficiency 5.71 6 Fostering innovation 5.59 7 Becoming more open and collaborative with customers 5.55 8 Planning and designing the strategy for your business 5.52 Improving management decision making via better 9 5.46 information and analysis 10 Balancing short-term goals with long-term strategy 5.45
17. The Top 12 Board of Directors Business Priorities Rank Business Priorities Importance (1 to 7) 1 Maintaining competitive advantage 6.39 2 Retaining and enhancing existing customers 6.27 3 Attracting new customers 5.83 4 Focusing on core competencies 5.68 5 Fostering innovation 5.41 6 Developing a succession plan 5.32 7 Building new competencies 5.27 8 Moving into new geographical markets 4.90 9 Increasing speed to market 4.85 10 Changing the expected rate of return for shareholders 4.83 11 Responding to regulatory changes 4.80 12 Moving into new product or service markets 4.80
18. CEO Concerns 2011 vs. 2010Start 2010 Start 20111. Retaining customers and 1. Retaining customers and enhancing enhancing existing relationships existing relationships2. Attracting new customers 2. Attracting and retaining skilled3. Attracting and retaining skilled workers/talent workers/talent 3. Attracting new customers4. Reducing costs via better 4. Building a responsive, flexible efficiency organization5. Balancing short-term goals with 5. Reducing costs via better efficiency long-term strategy
19. CRM Objectives in August 2011 Increase acquisition of new customers Increase sales revenues Improve lead quality and conversion Create a single view of the customer Increase customer loyalty Revenue Increase sales person productivity Reduce cost of service Loyalty / Increase value to citizens Satisfaction Other (please specify) Cost Reduction Increase partner loyalty Improve pricing Increase community participation ratesSource: Gartner CRM Summit Pre-conference SurveyAugust 2011, three responses permitted 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
20. Whats Hot in CRM in 2011 Sales Customer Service MarketingMobility –Tablets/ Smartphones Social CRM / community Social media for marketingSaaS SFA SaaS CSS Digital marketingE-Commerce/Web 2.0/B2B Web self-service Loyalty managementLead management Knowledge management Lead management for service resolutionSocial CRM sales Mobile support Marketing resource mgmtPrice Optimization Real time decisioning Marketing perf. measurementSales Performance Mgmt Feedback management Predictive analyticsConfigure, Price, Quote Multichannel service BPM Inbound marketing Webchat for service Partner, distributed and fieldSales Incentive Comp. marketingForecasting and pipeline Workforce optimization Mobile marketing Unified communicationsSales Effectiveness Content Web analytics & Advert mgmt and collaborationSales training Text mining Event-triggered marketingMultichannel Selling VOIP and Presence Integrated Marketing Mgmt. Cross-CRMMaster Data Management Business Process Mgmt Customer-Centric Web
22. CRM Trend Waves 6% of spending 24% of spending 70% of spendingPotential 30% growth 20% growth 10% growthDisruption Social Analytic Operational Reciprocity Understanding Automate Do For You Do With You Do To You Customer Centricity Emergent Established
23. Social CRM Investment By YE2012, spending on social software to help sales, marketing and customer service processes will exceed $1 billion worldwide.Supporting the SPA: Alternate position to the SPA:• Use of social media is growing, and it is • The business value of adding "social" thus a natural extension of what as a communication channel has channels organizations engage their proved negligible for many customers through. organizations.• The relentless focus on the "customer • New legislation will restrict the ability experience" will continue to fuel to market and sell within the public investment, as Social CRM offers an social arena (much like ideal opportunity to understand what telemarketing). customers want and what experiences theyve had.• Vendors are emerging that provide viable social CRM solutions.
24. Three Realms of Social Software Social Software Externally Facing Public in the Workplace Social Software Social Media Data, user experience Data, user experience and governance and governance may controlled by the enterprise; private; white label be controlled by others; prebranded Your people, Your people, Your people, your place other people, other people, your place their placeAssisting with connecting, marketing, selling, servicing, crowdsourcing, recruiting,training, producing, communicating
25. Top Reason for Investing in Social Media:To Strengthen Customer RelationshipsQuestion: What are the three most important reasons for your organization to investin social media and collaboration tools and software? Strengthen relationship with customer Enhance brand awareness or brand… Establish interactive relationship with… Share information and ideas with… Increase my organizations revenue Leverage viral marketing Enhance general employee productivityMove users toward a self-service model of… Decrease business costs 0 5 10 15 20 25 30 35 40 45 50 N = 798 Percentage of respondents Source: Gartner Social Media Survey (February 2011)
26. Which Industries are Investing? Information technology services… Banking, Finance and Insurance Retail Consumer product manufacturer Education Media Manufacturing - Computers,… Pharmaceuticals and Healthcare… Charities Telecommunications and Comms… Government Automotive Healthcare providers Business Services - Consulting Aerospace & Defense Utilities and Energy Construction and Real Estate Transport and Logistics Other, please specifySocial CRM Magic Quadrant References May 2011n=145 % 5% 10% 15% 20%
27. AgendaWhat’s happening today?What’s really happening today?Where are we heading?
28. New CRM isDriven by theCustomer Experience
29. My World!My Way!
30. C ons umeris ation of IT
31. The Tyranny of the PeopleSource:http://www.computerworld.com/s/article/9213139/Apple_s_iPad_2_provokes_IT_anxiety?source=CTWNLE_nlt_dailyam_2011-03-04
32. S oc ially C onnec ted Digitally E nabled
33. “In a few hundred years, when the history of our time is written from a long-term perspective, it is likely the most important event historians will see is not technology, but the unprecedented change in the human condition. For the first time, people have choices.”Peter F. Drucker
34. If it is Digital –it is Dis c overable
35. C ontrol is an Illus ion - G et Over It
36. T he “ C ollec tive”
37. YouC annotC ontrol theC ollec tive
38. Don’t under-es timate theC ollec tive
39. T he C ollec tive has c hanged the c ours e of His tory
40. T he C ollec tiveis c hanging the c ours e of His tory now
41. What do P eople really Want?
43. Trus tMatters
44. R eputationMatters
45. Edelman Trust Barometer 2010: Trust Trust in Business 2001 to 2010604020 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 U.S. U.K./France/Germany
46. Edelman Trust Barometer 2010: Reputation How important are these factors to corporate reputation? 83 Company I can trust 83 79Communicates frequently 75 72 Good corporate citizen 64 58 Innovator 48 47 Financial returns 45
47. Customers Care More About the Customer Experience Than in the Past Those discontinuing business with a company after a negative customer experience climbed from 68% in 2006 to 86% in 2009 60% of consumers will always or often pay more for a better customer experience. 82% of consumers with a bad experience told others about it, up from 67% in 2006 69% of consumers switched providers in at least one industry sector because of poor service in the last year, 89 percent tell their friends about their bad experiences, and 25 percent use social media 40% of loyal customers said that they are willing to pay 10% or more to continue purchasing from companies delivering great experiences, in contrast with 9% of dissatisfied customers. 52% of dissatisfied customers expect discounts of 5% or more to continue doing business 87% of people felt they had a right to a better contact center experience if they regularly spend money with a companySources: Customer Experience Impact Report, 2009 by Harris Interactive for RightNow, Sept. 2009; 2009 4th Annual Customer ServiceSurvey, Accenture, Nov. 12th 2009; 2009 Customer Experience Consumer Study, Strativity Group, Aug. 4th 2009, Consumers UnforgivingWhen it comes to Customer Care, YouGov for Teleperformance, Oct. 2009
48. The Measurable Benefits of Customer Experience Management Customer Satisfaction Scores Average Cycle Times Mystery Shopper Scores Timeliness Customer Product Review Ratings Competitive Benchmarks Satisfaction First-Call Resolution Rates Number of Support Requests Customer and Employee Referrals Average Order Size Deactivation/Reactivation Costs Average Customer Tenure Customer Attrition/Churn Rates Loyalty/ Loyalty Program Enrolled/Participating Purchase Frequency Adoption of New Products Advocacy Brand Advocates/Net Promoters Use of Multiple Channels No. of Product or Service Upgrades No. of Repeat Orders No. of Customers "Likely to Defect" No. of Customers Interacting Brand/ Brand Value Price Sensitivity Social Network Participation, Likes Reputation Brand Perception (Recognition, Trust Rating Website Usability Benchmark Credibility, Relevance, Influence) Sentiment Scores Product Reliability or Defect Rates Delivery Timeliness and Accuracy Quality Tolerance of New Processes Product Return Rates Accuracy of Inventory and Pricing End-to-End Transaction Times
50. "We are entering theperiod of the open-sourcebrand, where in order forpeople to feel it is relevantto them, they have to havea part in creating it." Mark Kingdon, former CEO of Ad agency Organic
51. AgendaWhat’s happening today?Where are we heading?
52. Mobile Devices are Transformational Smartphones and Media Tablets vs “Why can’t I get this PC Shipments application on my 1000 IOS, iPhone?” Android Mobile #3 CIOunits (in shipments) 800 and RIM technology priority phones Windows for 2011 600 PCs Some CIOs expect 400 20%+ of employees IOS and to use tablets instead 200 Android of laptops in ‘13 Tablets 0 2008 2009 2010 2011 2012 2013 2014 2015
53. Apps are Transformational “Why can’t this Phone & Tablet vs ERP and BI application be like an Application Revenues 50 app?” Phone, Tablet Convenientrevenue ($billions) 40 Apps Cost-efficient 30 ERP Delightful 20 User-centered BI Simple 10 Single-purpose 0 Social 2008 2009 2010 2011 2012 2013 2014 2015 Rewarding
54. App Stores are Transformational Phone and Tablet App Store “Why can’t I choose the Downloads (billions) application that’s best for120 me?” 108.8 Competition100 76.1 More innovation80 49.2 Lower sw costs60 Challenges 31.240 Security 17.720 8.2 Interoperability 2.5 0.5 Support costs 0 2008 2009 2010 2011 2012 2013 2014 2015
55. New Developers are Transformational “Why do I have to wait for IT?” 100k+ apptrepreneurs 300k+ crowdsource developers 50+ million potential end user Application Value developers IT Cut-off Apptrepreneurs Crowdsourcing DIY Application RankSource: SCAFFIDI C., SHAW M., AND MYERS B.A..Estimating the numbers of end users and end user programmers
56. Hype Cycle for CRM Customer Service expectations Expertise Location and Management Customer Service Process Integration Audio Mining/Speech Analytics Enterprise Feedback Management External Community Platforms SaaS for Contact Center Customer Service Real-Time Decisioning Directed Dialogue Speech Contact Center Workforce Optimization Recognition for Contact Customer Interaction Hub Contact Center Performance Management Applications Center Interaction Analytics Natural-Language Intent-Driven Systems Speech Recognition Emotion Detection Contact Center BPO MDM of Customer Data Customer Service Contact Video-Based Customer Support Center Software Contact Center Workforce Management Mobile Virtual Worlds Contact Center Quality ManagementCustomer-Centric Web Strategies Comprehensive CM BPO Knowledge Management for Customer Self-Service Video Analytics for Customer Voice Verification for Field Service Management Service Call Center Customer Web Customer Service Suites Rich Information Visualization Authentication Work-at-Home/Remote Agent Virtual Assistants Intelligent Device Management Field Service Workforce Optimization Pattern-Based Strategy As of July 2010 Technology Peak of Trough of Slope of Enlightenment Plateau of Trigger Inflated Disillusionment Productivity Expectations Years to mainstream adoption: time obsolete less than 2 years 2 to 5 years 5 to 10 years more than 10 years before plateau
57. Strategic Planning Assumption: By 2015, one-third of spending on new CRM software will be SaaS.In 2010, 26% of the CRM software market was delivered by software as a service (SaaS). This is up from virtually zero in 1999. For 2014, Gartner forecasts that 32% of the CRM software market will be delivered by SaaS. For 2020, analysts expect that 50% of the market will be SaaS.
58. Strategic Planning Assumption: In 2015 75% of consumers will telltheir friends about their bad experiencesusing social media up from 25% in 2010
59. CRM application Social CRM CRM Apps 40% of spending grows market tops market reaches all CRM Fred Reichheld’s 15% in 2011 $1 Billion $11.7 Billion sold as next great book (up 28% on SaaS 2009) 2012 2014 2016 2010 RightNow Initiate, Siperian, becomes 8th Biz360, Chordiant, largest CRMSterling Commerce, Facebook reaches software vendor Jigsaw, Scoutlabs, Tata, Wipro, Infosys or two Billion RightNow Cognizant become 4th members Cast Iron, Sybase tops $230m largest CRM service acquired revenues provider in NA
60. What CRM Could Look Like in 2020 1990 2000 2010 2020 App Penetration 2% 25% 40% 90%+10%(!) DIY vs. COTS 90:10 80:20 50:50 30:70 Hot App SFA Suites Social Mobile/IDM** Hot Tech Laptop Single View SaaS Utility Hot Sector Pharma Telco CPG Retail Differentiator Viability Function Ease of Use Price P/U/P/M* $300 $150 $75 $25 Vendor Numbers 50 800 700 500 "8BB" Most Tricky Tech Strategy Metrics Governance Department $ IT Sales Marketing CSS Biggest Projects $10m $500m $100m $200m Customer-Focused Medium Low Medium High* Price of software per user, per month. **IDM = intelligent device management
61. T he C us tomer E xperienc eIn a World of S oc ial Media R evolution Ed Thompson VP, Analyst