Unselling Social Media: A Customer Love Story

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How is social media changing our customer relationships? Has the balance of power shifted forever? What can your business do about it?

We are witnessing a dramatic change of social media strategy - from acquisition to retention. As the social space gets more and more saturated, we look towards ways to turn our existing fans and followers into real brand advocates, instead of simply monetize them.

Those interactions are increasingly taking place in branded online communities and private social networks to resolve issues with privacy, security, copyright and to preserve our social technology investment.

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Unselling Social Media: A Customer Love Story

  1. 1. Unselling Social Media A Customer Love Story © 2010 Alexander Nikolov, CMO, NINETYTEN
  2. 2. Hi, I’m Alexander Nikolov.  CMO at NinetyTen  HULT graduate  Started own business at 17  Entrepreneur of the Year 1998, Junior Achievement Bulgaria  KFC Bulgaria launch in 2 cities  Aveda, Clinique, Westin, St. Regis  NYC, Washington DC, London
  3. 3. This is NinetyTen.  London based  Founded in 2006  Opened first mobile social network in the UK - BuddyPing  Dedicated to social technology  Communicator  BrandAware  Engage
  4. 4. How did we get here?  In 2005: MySpace purchased for $580m  In 2006: $15bn projected value by 2009 (J. Rohan, RBC Capital)  In 2009: estimated as low as $500m  Twitter in 2008: $20m  Twitter in 2010: $1bn  The value is in real connections.
  5. 5. We asked the wrong question:  How do I monetize my fans & followers?
  6. 6. Let’s go back to basics.  Customer experiences create your brand.  Positive customer experiences create loyal customers.  Loyal customers create brand equity.  Brand equity creates growth, revenue and profit.
  7. 7. Relationship marketing 101  It costs 5 to 7 times more to acquire a new customer than to keep an old one.  5% improvement in retention increases profits between 25% and 85%.  Turn customers into brand advocates.
  8. 8. Why do it?  New customer sales may cost 4 to 100 times that of a sale to an existing customer.  For every 1 that complains there are at least 25 who do not.  85% will return if the issue was resolved promptly vs. 91% if not.  Dissatisfied customers will tell 8 to 16 others, on the web – 1000s!
  9. 9. What is customer service?  An integral part of a company’s customer value proposition  Plays an important role in an organization's ability to generate income and revenue.  It’s that "Feel Good Factor“.  Implement instant feedback loops.
  10. 10. Traditional channels  Telephone  Email  Face-to-face  Mail  FAQs  SMS  Search the web
  11. 11. Please hold, your call is important…  Incomplete problem diagnosis  Having to repeat information  Number of transfers to “experts”  Contradictory answers  Agent accent  Agent attitude (68%!!!)  Lack of toll-free number  Long hold times
  12. 12. How does social media fit here?  Customers want many social media service options:  Online chat  Forum to connect with other customers  Instant feedback  Mobile customer service (apps, etc.)
  13. 13. Who’s paying attention?  For the first time, social media takes the conversation with the customer into the public domain  Increases the stakes  “Wall of Fame” vs. “Wall of Shame”  “WoW” – words of wisdom  Customers helping customers  Building knowledge banks
  14. 14. What should you do?  Customers use Twitter to vent  Businesses are forced to pay attention  Responses are warranted and necessary  70% of customers* would like Twitter to be an official customer service channel vs. 25% six months ago  Use Twitter! *Source: Innoveer, Inc., 2010
  15. 15. Public vs. private social networks  Controlling the conversation – integrity is paramount  Controlling the environment – reducing distractions  Safety of your investment  Adaptability to your business needs  Security  Privacy
  16. 16. Online communities and private social networks  Having a customer review facility tops the UK consumer's wish-list of social media tools  50%+ currently post reviews online  1 in 4 are less inclined to buy online from a site that uses no social media tools  Onsite reviews are five times more important than a Twitter account and three times more important than a Facebook page (ICS, July 2010)
  17. 17. The 7 Benefits of Customer Service Online Communities  Increase in product ideation  Increase in agent productivity  Increase in first-contact resolution  Reduction in agent-assisted interactions  Reduction in agent-assisted email  Boost in relevant Web-site content and reduced search-engine optimization costs  Improved customer retention and customer lifetime value Source: "The ROI of Online Customer Service Communities”, Forrester, June 2009
  18. 18. Create your own customer love story.  Bank of America  Intel  Lenovo  Verizon  Vodafone  Sprint  Palm  Your business?
  19. 19. The 90/10 rule  “Soft sell”  Subtle, casual & friendly  Less likely to be irritating  More persuasive  Very hard to get lost fans or followers back  90% conversation  10% promotion
  20. 20. Thank you. Alexander Nikolov alex@ninetyten.com @NINETYTEN
  21. 21. w w w. n i n e t y t e n . c o m

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