The Social Business model focuses on engagement and collaboration with customers, partners, and employees. Paul Greenberg - The intent is to create mutual value in a transparent business environment. It’s very much a customer-centric model.
Social Business is a return to a village mentality . So interactions within social channels is part of the model. Modern spin - A company’s village outposts can occur anywhere in the world, thanks to electronic & mobile connectivity.
Managing social business initiatives requires you to… It puts more power into the hands of socially demanding customers. Social Business a paradigm shift.
Social business benefits - The only two that really matter are higher revenue generation and profitability (a.k.a., higher cost savings).
Leading indicators of Revenue generation include: <ul><li>Extended influence or impact with prospects and customers. </li></ul><ul><li>Improved branding. </li></ul><ul><li>Heightened customer loyalty. </li></ul><ul><li>Better insight into customers and their needs so you can more responsive to them. </li></ul>
Leading indicators of cost savings include: <ul><li>Agent deflection ─ Fewer opened incidents. </li></ul><ul><li>Faster incident resolution with fewer contacts per incident. </li></ul><ul><li>Increased agent productivity. </li></ul><ul><li>Expansive ideation. </li></ul><ul><li>Accelerated product development. </li></ul>
The social business model recognizes the need to engage in different types of conversations between customers and partners with your company.
Unstructured convos but a rich source of intel about your products and services, as well as your competitors. Technology helps you monitor, collect, and analyze these conversations. Many to many conversations
One to one conversations Traditional 1-to-1 convos are still important interactions but now occur across diverse communication media. Challenge - To gather customer-specific communiqués across multiple channels and store them by contact in your CRM system so your employees can view activity history.
Let’s talk about the way real people work … …or the problem with CRM systems
People use complex and often fuzzy thought , impacted by group input, to navigate through the world, make decisions, and do work. CRM systems are so doggone transactional and linear and require people to force-fit themselves to the system rather than working naturally.
Look at a cross-section of the earth … … and you see a variety of geologic events overlain one on top of the other, mushing together in ways that sometimes (oftentimes) hide the discrete events.
Geologist’s challenge is to unravel the mush and piece together the history of individual events. Each geologic event had an impact on the critters in the region. Understand the geologic history and you also gain insight into why some critters thrived while others extinctified. And it’s not just about rocks.
Uh huh. And how is geology like social business ?
Unravel the patterns in the network so you can apply them to the benefit of your company. Go back to the social network diagram. All those interlocking connections mean something insightful and valuable to your business.
Start with people. Become a corporate geologist and unravel your corporate culture and processes. Determine where your company already has social-centricity and what’s getting in your way.
Prepare your strategic plan . These will center on culture, processes and technology , in that order. Stimulate and embrace the changes needed to make the adoption of social business a success.
Expect to re-engineer some processes. Implement social technology to complement or replace your existing technology platforms.
Remember to show your execs the money . That’s where economic valuation (ROI) comes into play.
<ul><li>Cash flow analysis of gains and costs, </li></ul><ul><li>Net present value (NPV) or time-value of cash flows, and </li></ul><ul><li>Return on Investment (ROI). </li></ul>Psst. Valuation =
Yes. Valuation means doing economic math but there’s good news. Higher the NPV and ROI = accelerated adoption of your initiative.
Do social business the smart way . Think it through. Then go forth and do it in the way that makes the most sense for your company.
<ul><li>Leading expert on social business and change management. </li></ul><ul><li>Practice centers on business process design and definition, valuation, and the user experience. </li></ul><ul><li>Valuation expert and designer of the ValueRight methodology and tool for social business valuation (and ROI) determination. </li></ul><ul><li>Active participate in the SCRM Accidental Community on Twitter, a premier group of social business thought leaders. </li></ul>www.kathyherrmann.com