Social: Session 8: The Force Multiplier for Your Business

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So you are leading your organization's customer service. Along comes social media. What do you need? A force multiplier. What the heck is a force multiplier? It's a factor that dramatically increases or "multiplies" the effectiveness of an item or group – or in this case, customer service. Imagine having the know-how and tools in your support organization that can propel your whole business forward exponentially. Come hear Dr. Natalie Petouhoff 's talk about social media for customer support and how this affects the bottom line. Follow Dr. Natalie on twitter at www.twitter.com/drnatalie

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Social: Session 8: The Force Multiplier for Your Business

  1. 1. Social TRACK NAME Customer Service: Presentation TitleThe Force Multiplier For Your Business
  2. 2. Dr. Natalie Petouhoffwww.drnatalienews.com @drnatalie 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 2
  3. 3. How a company delivers Customer Service is…  Essentially a reflection of the values and consciousness of a company, especially the leadership  I predict it’s a reflection of their long-term viability in the marketplace  As you think about this, what companies come to mind? United Airlines (UBG) Zappos Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 3
  4. 4. United Airlines And Dave CarrollOne of the reasons social July 6, 2009 customer service is sopowerful is that Customers use social media to express their frustration Long story, short- Dave’s guitar was broken in transit by United Airlines Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 4
  5. 5. Dave gave United the option to co-write the song. Would it be about a good or bad customer service experience? Does the company listen? The song reflects the poorcustomer service experience. What if all customers did this? Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 5
  6. 6. Consumer Advocates… Like Dave are on a mission He has  Videos  Speaking career  Website and  Book Dedicated to this idea of companies listening and changing… www.UnitedBreaksGuitars.com Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 6
  7. 7. The media looks to social media for stories Stories like Dave’s end up on CNN… Shouldn’t that be enough to drive change within a company? Call it the embarrassment factor… Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 7
  8. 8. Another Consumer Advocate…SCRM expert… April 19, 2012 Dave Carroll: July 6, 2009 Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 8
  9. 9. And then there’s Zappos…  $0 to $1B in 10 years...  Their revenue and growth strategy? Customer Service.  They turned the marketing funnel upside down!I have clients that say, “Pls don’t compare us toZappos.” Why not? They are doing something Tweet:right… #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 9
  10. 10. To convince leadership how importantCustomer Service is…  That Customer Service can be a revenue generator and preserver…  ….We need more structure around this concept for it to stick in business…  That structure requires a pattern interrupt… Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 10
  11. 11. The Boyd Affect  Meet John Boyd (military strategist)  Colonel and Fighter Pilot  His theories highly influential in the: Military Sports and Business. Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 11
  12. 12. The Boyd Affect  Meet John Boyd (military strategist)  Colonel and Fighter Pilot  His theories highly influential in the: Military Sports and Business.Carl von ClausewitzOn WarThe Fog of War http://en.wikipedia.org/wiki/ Tweet: #SCON12 Carl_von_Clausewitz 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 12
  13. 13. The Boyd Affect  Meet John Boyd (military strategist)  Colonel and Fighter Pilot  His theories highly influential in the: Military Sports and Business.Carl von ClausewitzOn WarThe Fog of War Sun Tzu Art of War http://en.wikipedia.org/wiki/ http://en.wikipedia.org/wiki Tweet: #SCON12 Carl_von_Clausewitz /Sun_Tzu 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 13
  14. 14. The Boyd Affect  He is known for: Decision Cycle Conceptual Spiral How does this apply to Social Customer Service? Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 14
  15. 15. Boyd created the OODA Loop It’s how we generate the new actions & ideas we need to thrive and grow in an uncertain and competitive world. Note to self: sounds like something we could use to deal with the changes social media is bringing to companies ―Discourse on Winning and Losing‖ Tweet: #SCON12 By John Boyd 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 15
  16. 16. The Boyd Loop: OODA Observe: the collection of data Make use of the best sensors and other intelligence available Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 16
  17. 17. The Boyd Loop: OODA Observe: the collection of data Make use of the best sensors and other intelligence available Orient: analysis and synthesis of data Put the new observations into a context with the old Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 17
  18. 18. The Boyd Loop: OODA Observe: the collection of data Make use of the best sensors and other intelligence available Orient: analysis and synthesis of data Put the new observations into a context with the old Decide: determination of a course of action Select the next action based on the combined observation and local knowledge Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 18
  19. 19. The Boyd Loop: OODA Observe: the collection of data Make use of the best sensors and other intelligence available Orient: analysis and synthesis of data Put the new observations into a context with the old Decide: determination of a course of action Select the next action based on the combined observation and local knowledge Act: action of those decisions Carry out the selected action, ideally— while the competitor is still observing your last action Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 19
  20. 20. How fast does your company OODA? Do you have systems to monitor/measure what employees know, think & feel? Do you have systems to monitor/measure what customers know, think & feel? Do you take that information and integrate it into your company? Sounds like what Deming said to do! Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 20
  21. 21. Most Companies Don’t Listen or Integrate Feedback Collect Alert Use Improve Tell Feedback Staff Insight CustomersTweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 21
  22. 22. Now consider two companies… Company 1 Company 2 How fast do you OODA compared to your competitors? United Airlines (UBG) Zappos Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 22
  23. 23. If Company 1 OODAs faster than Company 2 Company 1 Company 2 You’ll have a decided time advantage over their competitor United Airlines (UBG) Zappos Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 23
  24. 24. Are You On Track? In military operations, OODA takes place in seconds In corporations, its slower Strategy is rigidly followed till next years’ planning cycle It’s critical to validate we’re on track or correct it Especially in the Age of Social Business Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 24
  25. 25. It not jus about OODAing Once It’s the OODA LOOP: The results of your actions become the observations to re-orient you to make your next decision Repeated OODA = SuccessTweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 25
  26. 26. What Happens When a Company Doesn’t OODA? Netflix Announced the price change on the blog Blog post said, ―If you don’t like it, you can cancel your account.‖ And provided the link to cancel your account July 12, 2011 Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 26
  27. 27. Using Social Media Monitoring*-- There’s a Spike Related words: July 12, 2011 • Increase • Angered • Cancelled • Drop • Greedy • Redbox *Source: Sysomos Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 27
  28. 28. July 12, 2011Despite the 7/12/2011 Reaction• 81,789 comments on Facebook Netflix sent out a• 1,429 positive notice on the price hike on Sept 19th, 2011Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 28
  29. 29. Can Your Company Stand Negative Press? Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 29
  30. 30. Can You lose 800,000 Customers? A PR announcement results in 100’s of calls to the contact centerPR is Customer ServiceCustomer Service is PR Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 30
  31. 31. Where did NetFlix Missfire in OODAing? Did they • Observe? • Orient? • Decide? • Act? In ways that forwarded their business? They did the opposite- Lost customers Cost the company in customer service calls Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 31
  32. 32. We need a paradigm shift in Customer Service  Where does innovation come from? Most companies think of Customer Service as a Cost Center Zappos made Customer Service their revenue preservation and generation model. Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 32
  33. 33. Customers are at the boiling point  They no longer want to take what’s handed to them  They have a way to make their voice heard  Its called social media / that’s why it was invented  People wanted a two-way conversation Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 33
  34. 34. Go back in time, people were predicting this • There would be a place in time • Where the customer would be in charge of the brand’s message • And there would be an enabling technology • That would give them a far-reaching voice • We are here now This is your opportunity to drive innovation & change… Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 34
  35. 35. Burification Points and Paradigms It can take a long time for a paradigm to shift Example: Mechanistic point of view, Newtonian Physics to Quantum Physics From thinking in particles to waves Burification point Like a pot of boiling water, things bubble, sometimes for a long time And then, what seems like all at once, the pot boils over When it boils over, it’s a burification point Pop!! Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 35
  36. 36. But United Airlines Still Doesn’t Get it April 19, 2012 Will businesses take heed and Tweet: #SCON12 change? 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 36
  37. 37. Mary Ellen Headed Up iRobot’sSocial Customer Service
  38. 38. Took A Complicated TechnologyAnd Made It Into A ConsumerProduct… iRobot used social media as a better way for all departments to do business…
  39. 39. iRobot began listening to what wasbeing said in social media…. ―My Roomba doesn’t pick up pet hair #frustrated‖ ―My Roomba isn’t working – can’t fix it #fail‖• Heard what her customers were saying• It was not always positive – and was stopping sales!• Gathered screenshots• Put them in a powerpoint• Gave them to her CEO
  40. 40. Roomba took charge of the socialcustomer interactions... The CEO appointed her the lead on social customer interactions…
  41. 41. iRobot used social media data to examine businessprocesses, systems and productivity benefits vs.costs Reduction in call volume and call center costs Superusers answer customer questions Increase positive sentiment Increase positive word of mouth Customers become marketers Increase in sales New product lines Specific products based on customer’s wants
  42. 42. …the results were a business transformation… With less Politics and resistance ―Not invented here‖ or ―not my problem‖ Social media lead to transformation of: Engineering, Product Development, QA Fulfillment, Order Management, Marketing, Sales and Advertising Chalk it up to the ―Witness‖ factor
  43. 43. What did iRobot do?
  44. 44. What did iRobot do? OODAing in ways that forwarded their business! This is the promise of Social Customer Service
  45. 45. Why Is Social Customer Service So Importantto OODAing? Marketing: Maybe they send to many emails Sales: Unless you have a horrendous purchasing experience, its not often you are mad at them Social Customer Service: Is the customer-company interface where OODA counts Its when you get the information to put into the OODA loop You get crowd sourced information Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 45
  46. 46. But companies don’t see Customer Service asthe key to innovation, change, competitiveadvantage… • Yet it’s the Reality Check for: • PR Brand Promises • Marketing Messages • Sale Promises • Engineering, Manufacturing Delivery… Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 46
  47. 47. History provides perspective tosee future opportunities…Dell Hell: it started with a postSource: http://www.buzzmachine.com/archives/cat_dell.html Source: http://www.slideshare.net/DomHind/dell-ideastorm-community-involvement-presentation
  48. 48. ―DELL SUCKS. DELL LIES. PUTthat in Your Google and smoke it…‖ And gained momentum…
  49. 49. And Led To Dedicated Haters…
  50. 50. Dell’s Progression: 2005-2012 2005: Jeff Jarvis Incident • Customer/Blogger heard by many • Other issues happened • Battery explosion • Didn’t understand the power of social media to rally against a company Company still was not listening • Lead to profit loss • Drop in share price • Disgruntled consumers
  51. 51. 2012  Dell FINALLY appliedOODAing Dell’s Social Media Command Center Social Media Monitoring… Listening & responding to the social networks… 25,000 daily Topics, posts… Not including twitter… Look for trends, issues, sentiment, share of voice…
  52. 52. And Dell goes a step further…Dell OODA’s with social media insights across the whole organization…. • Product Development • Marketing • Online Presences • Sales • Customer Service • Communication
  53. 53. Dell’s OODA’s withCustomer Advisory Panel Mtgs Dell uses the social media data to bring Lovers and Haters of the brand together to learn: ―What would be better if…‖ Dell takes social media data & customer feedback and integrates it into their business… Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved
  54. 54. Dell uses the customer relationships they createin social media to sell more product…• In ’09, Twitter resulted in sales of $6.5M• Sales increased 3x with their ratings and reviews content
  55. 55. Social Customer Service is Force Multiplier A Force Multiplier multiplies the effect of the existing forces Ascribes a greater value to the same number of assets Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 55
  56. 56. Social Customer Service… Takes the existing forces Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 56
  57. 57. Customer Service is Force Multiplier  It multiplies the effect of the existing forces  Agents and Customers, Advocates, Influencers accelerate PR, Marketing, Customer Service, Innovation… Paradigm Shift Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 57
  58. 58. Combing Customer Service and Social is aForce Multiplier… Social Customer Service magnifies the impact of their work Agents can work in more channels while tapping a crowd- sourced knowledge base Reach more customers thorough the social media channels Done well it creates good will, good PR, good word of mouth and loyalty Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 58
  59. 59. Are You An OODA Leader? You job as a leader of Social Customer Service is to OODA faster than your competitors Outmaneuver the competition Observe the ever-changing conditions and Decisively act in an effort to beat the competition Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 59
  60. 60. What’s it gonna take for…. The whole industry to understand how important Customer Service is?What is the boiling point for your company?What is it gonna take for change to happen?Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 60
  61. 61. Are you a OODAing Leader?• Leaders needs to: • Have the courage to recognize when things are off course • Know when a correction is needed and • Then act decisively When would “now” be a good time to be a OODAing Leader? Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 61
  62. 62. When will you step up and be an OODA Leader? THE KIND OF LEADER YOU WANT TO FOLLOWTweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 62
  63. 63. A decision: selection between possible actions DECIDE ARE YOU A FORCE MULTIPLIER? Tweet: #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 63
  64. 64. Submit Session Feedback Select the SugarCon Mobile App: 1) Tap on this session 2) Tap on survey 3) Submit your feedback*Prizes for attendees who submit session feedback using the Mobile App 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 64
  65. 65. #SCON12 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 65

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