From Fans and Followers to Customers and Advocates Jacob Morgan
Principal, Chess Media Group Author, Twittfaced Blogger: jmorganmarketing.com Traveler, Chess Lover, and Explorer Twitter: @JacobM Desert Safari, Dubai
Let’s Start with the Numbers Terracotta Warriors, Xi’an, China
<ul><li>Member communities reach more internet users (66.8%) than email (65.1%) (Nielsen “Global Faces on Networked Places”) </li></ul><ul><li>Fastest growing sector for Internet use is communities (5.4% in a year) </li></ul><ul><li>43% of consumers say that companies should use social networks to solve the consumers' problems ( Cone Business in Social Media Study) </li></ul><ul><li>7% of organizations understand the CRM value of social media according to the Brand Science Institute, European Perspective, August 2010. </li></ul><ul><li>The Three most influential factors for consumers when deciding which company to do business with are: personal experience (98%), company’s reputation or brand (92%), and recommendations from friends and family (88%) (American Express) </li></ul>Atlantis Hotel, Dubai
The Customer is Changing. Is Your Company? The traditional customer is the one we all were as recently as a decade ago. We bought products and services and based our decisions on utility and price. We communicated with the companies we were dealing with by letter, phone call, and occasional e-mail, if they had the facility to do that. But that customer changed because of a social change in the early part of the millennium. The customer seized control of the business ecosystem and it was never the same .“ ~ Paul Greenberg, Author of CRM at the Speed of Light
Product issues are PRODUCT ISSUES Don’t bribe your customers, fix the problem!
“ By 2010 more than half of companies that have established an online community will fail to manage it as an agent of change, ultimately eroding customer value . Rushing into social computing initiatives without clearly defined benefits for both the company and the customer will be the biggest cause of failure .” ~ Gartner Group Dubai desert