Customer Service & Engagement John
Moore

Presented Jan. 29, 2010 American
Strategic Management Institute Washington D.C.

The leading voice for ethical
and effective Word of Mouth and Social Media Marketing

www.ENGAGEMENTdb.com

“… companies that are both
deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference.” pg. 6 www.ENGAGEMENTdb.com

Starbucks Q3’09 Earnings Call Transcript
July 21, 2009 Howard Schultz: “We were just named the number one brand in a new social media engagement report.” “The key here is that we are connecting directly with our loyal customers who will be driving our future growth.”

over 5,300,000 Facebook fans
PageData.InsideFacebook.com

BRANDWEEK: How are you taking
this online chatter and translating it to ROI for the brand? “We certainly look at a few things.” • Emotional connections • Human connections • Adds to the bottom line business Alexandra Wheeler digital strategy director, Starbucks source | Brandweek, August 1, 2009

“It isn’t a marketing initiative.
It isn’t a PR initiative. It’s cultivating and creating great consumer value and great customer relationships.” Alexandra Wheeler digital strategy director, Starbucks source | Brandweek, August 1, 2009

17% of time spent on
the Internet is on Social Media websites source | Rubicon Consulting study (Oct. 2009)

Fortune 100 Companies… 54% have
a Twitter presence 32% maintain a Blog 29% are on Facebook source | Burson-Marsteller & Digital Media Study (June 2009)

Social Media No longer IF,
but HOW.

Word of Mouth is the
original Social Media

Over 3,000,000,000 word of mouth
conversations take place everyday in the U.S. source | Presentation from the Keller Fay Group (2009)

76% of consumers believe companies
are untruthful in their advertising source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

78% of global consumers say
they trust recommendations from other consumers source | Nielsen’s “Trust in Advertising” Report (2007)

The typical American takes part
in 125 conversations per week that discuss products and services source | Keller Fay “ Talk Track” report (2008)

Of those 125 conversations, specific
brands/companies are mentioned 90 times source | Keller Fay “ Talk Track” report (2008)

68% of WOM conversations are
mostly positive 8% of WOM conversations are mostly negative source | Keller Fay “ Talk Track” report (2009)

“When consumers write reviews online
... the average grade is 4.3 stars out of 5.” source | Wall Street Journal article (Oct. 5, 2009)

“For marketers, it’s not Twitter
that matters, but Twitterers.” source | Blog post from Augie Ray, Forrester Analyst (Jan. 20, 2010)

Twitterers are 3x more likely
to be “Creators” than the general U.S. population source | Forrester Report (Dec. 2009)

22 % 78 WOM %
Sparked by Sparked by Advertising Something else source | Keller Fay “ Talk Track” report (2009)

ONE TWO THREE Explaining Great
Remarkable how a Customer and Product or Service or Entertaining Service Experience Stuff Works source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)

“When you hit a wrong
note, it’s the next note that makes it good or bad.” MILES DAVIS

“You can play a shoestring
if you are sincere.” JOHN COLTRANE

SIX KEY
POINTS

ONE Social Media helps small
companies look bigger and big companies get smaller

source | http://www.flickr.com/photos/cyv2/2529963389/

source | http://www.flickr.com/photos/shelisrael/2733087410/

source | http://www.flickr.com/photos/lilhlfpint/2470960013/

source | http://www.flickr.com/photos/helio/1740910023/

TWO Listening and responding are
highly under-utilized marketing strategies

“The most important thing I
look for in a musician is whether he knows how to listen.” DUKE ELLINGTON

If a brand lacks confidence,
then it will not want to listen to negative conversations.

“Most of the social media
engagement has been responding, listening, and connecting with fans, which is important because it builds loyalty.” Porter Gale VP Marketing, Virgin America

What’s happening? 140

What’s happening? 80% of tweets
are from Meformers. Postings about insignificant doings. What’s happening? 20% of tweets are from Informers. Those who share informational news, incl. links source | Rutgers University study (Oct. 2009)

What’s happening? The typical Meformer
has 61 friends and 43 followers. What’s happening? The typical Informer has 131 friends and 112 followers. source | Rutgers University study (Oct. 2009)

69% of businesses on Twitter
post at least 4 times per week source | Burson-Marsteller & Digital Media Study (June 2009)

source | http://www.flickr.com/photos/obie/505082130/

In many ways, the Internet
has become an extension of your Marketing department.

Your goal is to become
an INVITED GUEST with online conversations.

Invited Guest! everyone! Equal Parts:!
LISTENING! LEARNING! RESPONDING! Mix and Serve!

THREE Measure and monitor what
matters most in the online conversation

www.Radian6.com

www.ScoutLabs.com

evolve24.com
nielsen-online.com
overtone.com
jdPowerWebIntelligence.com
motivequest.com

“We’ve tried all the off-the-shelf
monitoring applications. None work as well as the free tools.” Daniel Sundin Intranet Manager, PETCO source | WOMMA Brands Council Webinar (Oct. 2009)

www.TweetDeck.com

google.com/alerts

Reach
Frequency
Topic
Tone
Credibility

Reach the breadth and depth
of the online conversation

Frequency how viral the conversation
becomes

Topic the issue or issues
being discussed

Tone
the overall sentiment

Credibility the trustworthiness of the
talkers

FOUR Buzz does not Create
Evangelists. Evangelists Create Buzz.

! BUZZ

Average life expectancy of a
Fortune 500 business 14,600 days source | THE LIVING COMPANY, Arie de Geus

Average life expectancy of a
Small Business 3,100 days source | SMALL BUSINESS DESK REFERNCE, Gene Marks (editor)

DOT LINE

FIVE Fix your “Broken Windows”
before engaging online

Broken Windows Theory

Broken Windows Theory Higher crime
rates occur in cities when broken windows are left unrepaired because people will conclude no one cares enough to fix them.

Broken Windows Theory

Broken Windows Theory Broken windows
are visible signs to customers that a business doesn’t care, that it is poorly managed, and that it inadequately deals with little details.

SIX Social Media as a
customer service channel can become a great employee recruiting tool

“No one visits a website’s
home page anymore — they walk in the back door, to the page Google sent them to.” Seth Godin Meatball Sundae (2007)

Dell corporate culture

“By participating in the blogging
conversation, Sun is able to communicate its corporate culture to not only customers, but also to current and future employees.” Jonathan Schwartz ceo, Sun Microsystems

Customer Service & Engagement John
Moore

www.WOMMA.org
johnmoore@WOMMA.org