Accenture Social Media Nick Smith

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Presentation held by Accenture Nick Smith in Oslo May 24th 2011.

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Accenture Social Media Nick Smith

  1. 1. Marketing and Service Forum Oslo, Norway Nick Smith, Accenture May, 2011Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  2. 2. Agenda  Dynamics of the New Normal  Social Media Explosion and Response  Why? - Social Media to drive business benefits  How? - Embracing Social Media to make it work  Conclusion & DiscussionCopyright © 2011 Accenture All Rights Reserved. 2
  3. 3. Customer Relationships are more complex Looking for value Requiring accessibility and convenience • Transparency • Polarization of • 39 hour day consumer values: • Increasing premiumization vs. urbanization economic uncertainty Calling for tailoring Desire for “feel-good” and personalization consumption • Millennial Influence • More aware of greater • Less defined gender good and environment and age roles • Environmental and • Emerging middle class societal valuesCopyright © 2011 Accenture All Rights Reserved. 3
  4. 4. Customer Relationships are more complex Changing consumersCopyright © 2011 Accenture All Rights Reserved. 4
  5. 5. Evolving Dynamics of the New NormalConsumers are highly „volatile‟, more demanding but do not seem gettingwhat they want. 2/3 Switching is still dominant • Higher in emerging markets …have switched providers over • Highest in Retail, Travel and the last year in at least one of Consumer Electronics consumers their industries • Lowest in Gas & Electricity 1/3 Satisfaction is slightly declining • Cross-industry satisfaction low …only are satisfied with their providers and this is down from • Customer Service satisfaction specifically last year decreased sharply consumers 9/10 Expectations remain high • Highest in emerging markets …only have higher/same customer service experience • Note that for selected countries trend to expectations than 1 year ago higher expectations is flattening. consumersCopyright © 2011 Accenture All Rights Reserved. Source: Accenture Global Consumer Research 2010 5
  6. 6. Evolving Dynamics of the New NormalConsumers are not just looking for products & services but for end-to-endcustomer experiences. 64% Experience starts before purchase …have stopped engaging with • Frustration can start before a customer is a company immediately when actually a customer encountering a frustration in • Poor employee skills/attitude and disrespect consumers marketing & sales process of consumer‟s time are top reasons 4 5 Multi-channel interactions • Word-of-Mouth remains the most used …are used on average by con- to sumers when making a buying • A majority wants to be able to access decision (off- & online channels) Customer Service through multiple channels channels 7/10 Customer-Centric technology • Highest in emerging markets …find that use of technology by the Front Office has improved • Is even more true for Marketing & Sales their overall experience than for Customer Service areas consumersCopyright © 2011 Accenture All Rights Reserved. Source: Accenture Global Consumer Research 2010 6
  7. 7. Customer Interactions are also more complex Combining Content, Context and Media • 4 P‟s are “multiplied” • Σ of touch points define customer experience… • …but impossible „to control‟ them all. • Blurring lines between Marketing, Sales and ServiceCopyright © 2011 Accenture All Rights Reserved. 7
  8. 8. Open discussion  Do you recognize these trends in your market ?  How is your organization addressing these trends ?  Which new capabilities does the enterprise need to address them ?Copyright © 2011 Accenture All Rights Reserved. 8
  9. 9. Marketing = Engine for Customer-centric GrowthTime to re-think, re-invigorate the role of Marketing of CMO believe the “The overriding role of marketing is to own the 62 % Marketing function will fundamentally change in the next 5 years growth agenda. I regard our …but only… marketing director as our Chief Growth Officer” are highly confident they 18 % Phil Bentley – M.D British Gas have the skilled people, tools and resources they need to perform as expected Accenture Global CMO Research, 2010Copyright © 2011 Accenture All Rights Reserved. 9
  10. 10. 6 Trends for Marketing & Service 2. 1. 3. Focus Brand values in today New Faces Global motion Shift to New Places consumer Digital New Spaces diversity world The Future of Marketing & 6. Service 4. 5. Marketing Multi-channel as growth dynamic engine Analytics & experience Technology enablersCopyright © 2011 Accenture All Rights Reserved. 10
  11. 11. Agenda  Dynamics of the New Normal  Social Media Explosion and Response  Why? - Social Media to drive business benefits  How? - Embracing Social Media to make it work  Conclusion & DiscussionCopyright © 2011 Accenture All Rights Reserved. 11
  12. 12. Social Media is not a Fad… it‟s a phenomenonExplosive adoption of Social Media – supported mobile technology – brings,interactions and interconnectedness between users to a new level. Worldwide New users: 35% users are It‟s fast and Everyone 830m users 100m in 6 mths over 45 years truly global Everywhere Smartphones grew 72% @ Mobile surfers: 82% at work in US 75% access it via mobile Mobile is a catalyst, high scale Every time Online time in Real-time Monthly use Monthly use US: Social spurs usage 6 hours (avg.) 1 hours (avg.) ranks #1 United broke Reach into my Everyting 43% use Social guitar 76% use it ‘Social to read about all life to recruit revolution’ brands spheresCopyright © 2011 Accenture All Rights Reserved. 12
  13. 13. Social Media is not a Fad… it‟s a phenomenonRecent examples show how Social Media has democratized societies andhow it mobilizes the world in times of crisis. Social Revolution in Egypt, Tunisia and Libya Social networking sites have supplied the most graphic images of the crackdowns on protesters, but also broadcast messages from hospitals, rallied demonstrators and provided international dial-up numbers for Facebook graffiti in YouTube posts of fire trucks those whose internet has been blocked... Tahrir Square, Cairo attack protesters in Libya Hashtags like #prayforJapan, #earthquake and #tsunami were Spurring social responsibility being tweeted thousands of times per second After the devastating earthquake and tsunami in Japan, social media tools People looking to contribute $10 have been massively used to express to the cause can do so by texting support to the Japanese people REDCROSS to 90999Copyright © 2011 Accenture All Rights Reserved. 13
  14. 14. It‟s also about business… you can‟t avoid that.Reaching into all spheres of users, Social Media has a direct impact onconsumers and customers. Dell cuts $3B from customer service… and learned its „social‟ lesson Jeff Jarvis, a disgruntled customer, complains on June 21, 2005 his blog, others join him Dell lies. Dell sucks. Dell lies. Dell sucks Dell rejects comment as I just got a new Dell laptop and paid a their policy is “look but fortune for the four-year, in-home service. don‟t touch Share price The machine is a lemon and the service is increases a lie. Im having all kinds of trouble with the The New York Times, Products and Dell hardware: overheats, network doesnt Washington Post and services improve share work, maxes out on CPU usage. Its a Business Week all price lemon. published Jarvis‟ blog But what really irks me is that they say if they sent someone to my home -- which I Dell„s share price drops by paid for -- he wouldnt have the parts, so I 60% and they are forced to issue a profit warning Volume of new might as well just send the machine in complaints and negative and lose it for 7-10 days -- plus the time posts on Social Media going through this crap. ... Dell drops “look but don‟t decreases touch” policy makes Jeff their spokesperson for customer complaintsCopyright © 2011 Accenture All Rights Reserved. 14
  15. 15. It‟s also about business… you can leverage that.Companies have started recognizing the power of Social Media and startedto engage in order to yield benefits.. 20 percent Decrease in laptop service call volume OPERATIONAL EFFICIENCY 33 33 percent Increase in daily store sales MORE SALES 50 New products 33 NEW PRODUCT out of customer DEVELOPMENT number suggestions Facebook to NEW SERVICE book/check-in INNOVATION without leaving siteCopyright © 2011 Accenture All Rights Reserved. 15
  16. 16. Thus, “No Way around”, but…new opportunities come with challengesOrganizations can‟t avoid the effects on consumers and need to embraceSocial to tap into its full value.  Ignoring it, won’t make it go away or lessen Ignore Risks impact of potential damage to brand/reputation  Competitors will rapidly fill the gap  Worse effects due to poor execution of Social Challenges Media (frustrated customers, amplified errors…)  Increases customer touchpoint fragementation Engage  Measure and optimize clearly defined Opportunities business benefits in different target areas by embracing Social MediaCopyright © 2011 Accenture All Rights Reserved. 16
  17. 17. Overcoming internal barriersWhile many start to experiment, only few have really embraced „Social‟ intheir front office activities and are addressing internal barriers Maturity Model Value Leading • Proactive cross-functional Maturing engagement • Senior management • Business value (business aware of impacts/value cases) as primary driver • Used across front-office • Social media governed by • More formalized operating explicit metrics Experimenting model & roles • Integrated in Digital & CRM • Considered as Marketing/Com‟s tool • Some reporting • Informal/ad hoc operating process • No tracking/metrics Ignoring Increase in… • Denial of impact … Strategic alignement … Organizational Agility … Front-Office ConsistencyCopyright © 2011 Accenture All Rights Reserved. 17
  18. 18. Open discussion  Where do you place your organization in terms of Social Media maturity ?  What are the main barriers that you believe need be addressed within your organization ?Copyright © 2011 Accenture All Rights Reserved. 18
  19. 19. Embracing the Social Media opportunitiesSuccessful Social Media strategies are based on key business objectivesidentified upfront and span across many functions. First ask Then ask WHY? HOW? • Growth & Customer acquisition • Product development & innovation • Customer experience & service by target stakeholdersCopyright © 2011 Accenture All Rights Reserved. 19
  20. 20. Agenda  Dynamics of the New Normal  Social Media Explosion and Response  Why? - Social Media to drive business benefits  How? - Embracing Social Media to make it work  Conclusion & DiscussionCopyright © 2011 Accenture All Rights Reserved. 20
  21. 21. Understand the target groupsFirst, organizations need to understand the different stakeholder groupsthat can be impacted by Social Media… • Prospect consumers • Competitors Marketplace •… • Government • Entire customer base • NGOs • Selected only (age, • Sustainability Society Customers status, potential…) •… •… • Installers • Employees • Suppliers • Alumnis • Architects Partners Workforce • Potential recruits • Trade association •… •…Copyright © 2011 Accenture All Rights Reserved. 21
  22. 22. Envisioning business benefitsThen, to define the appropriate level of engagement, understand and quantifyassociated value drivers of Social investments by stakeholder group.  Lead generation Growth & Revenues & Acquisition Market Share  Acquisition reach  Retention  Awareness Service & Engagement  Satisfaction Experience & Loyalty  Influence & Advocacy  Idea generation Insight & Innovation & Innovation Differentiation  New/better proposition  Speed to market Across Costs  Interaction / Marketing costs all areas reduction  Risk/opportunity costsCopyright © 2011 Accenture All Rights Reserved. 22
  23. 23. Delivering business benefits – selected examplesHow high performance leader are embracing Social Media Growth & Acquisition Target: End-consumers Revitalized the brand image of Old Spice brand by launching a campaign on Facebook, Twitter and Youtube which included personalized responses & videos from fans. One of the most successful viral campaigns launched recently with 75m YouTube uploads.Copyright © 2011 Accenture All Rights Reserved. 23
  24. 24. Delivering business benefits – selected examplesHow high performance leader are embracing Social Media Service & Experience Target: SMB community Best Buy launched a community for small & medium business enabling Q&A sessions, access to a knowledge center from Best Buy and its partners and personal contributions.Copyright © 2011 Accenture All Rights Reserved. 24
  25. 25. Delivering business benefits – selected examplesHow high performance leader are embracing Social Media Insight & Innovation Target: Employees/Agents With support from Accenture, Wells Fargo – large financial institution - implemented a collaborative idea generation capability targeted at Customer Experience innovation. 250 employees across the company generated 50+ new ideas of which selected where implemented.Copyright © 2011 Accenture All Rights Reserved. 25
  26. 26. A fundamental change in mindset“Not on stage anymore; welcome to the crowd”Leaders must revise some long-held beliefs about building and managingcustomer & partner relations.  Empowers “Voice of Customers”  Consumers become co-owner of the brand  User-generated content is about emotion: 1% of unhappy is bad  Viral Word-of-Mouth: forces to act in much shorter cycle times  Not about individuals, but community & influencersCopyright © 2011 Accenture All Rights Reserved. 26
  27. 27. A fundamental change in mindset“It‟s not just about another channel”Social media enables word of mouth at scale and takes it to a new level. Itexpands the opportunities to engage all stakeholders. Traditional Marketing Social Media  About your customers, your Funnel Funnel brand and your company Likes Shares  Social Media opens up theAwareness marketing funnel, creating… Effectiveness … opportunities for Marketing Lead to drive growth End-to-End ROI Measurement … accountability to deliver a positive ROI Conversions Conversion  Social CRM brings new “ways Shares of doing”‟ into the Front-Office Self-reinforcing LoopCopyright © 2011 Accenture All Rights Reserved. 27
  28. 28. A fundamental change in mindset“Social Media has impacts across the Enterprise”Social media brings new ways of how organizations interact with prospects,customers, employees, partners and other stakeholders Impacted Business Function Marketing Supply Sales Legal Finance R&D HR IT Chain Service Step changes Degree of Impact Transformation  Being closely connected to customers & prospects, Front-Office functions are most affected followed by HR, IT and R&D functionsCopyright © 2011 Accenture All Rights Reserved. 28
  29. 29. New ways of doing businessSocial Media goes against „traditional‟ ways of doing business. „Traditionally‟ „Social‟ Marketing Brand shaped by Company Brand stewardship as a team sport Sales Organization-driven sales push Pull of expanded ecosystem Service Often Too little, too late Pro-active and self-enabled service Innovation Company-centric innovation Untapped idea potential IT Technology as support Technology as growth catalyst HR Often one-way, closed, point-in-time Collaborative, open, continuousCopyright © 2011 Accenture All Rights Reserved. 29
  30. 30. MarketingNew ways of doing business  Create relevance for the „Me in my community‟  Leverage Social to win the Battle for trust  CMO and CIO need to collaborate more closely  Decrease Marketing spend using viral effect 43 24 Consumers read Consumers write about companies’ about companies’ products/services products/services frequently on frequently on percent percent Social Media Social MediaCopyright © 2011 Accenture All Rights Reserved. Accenture 2010 Research 30
  31. 31. SalesNew ways of doing business  Expand reach through access to new markets  Tapping into wisdom of professional networks  Increase Third-Party Influencers  Decrease Sales cost & cycles 69 57 B2B marketers B2B marketers leverage closed feel they don’t online forums but… know enough to engage about Social percent percent customers MediaCopyright © 2011 Accenture All Rights Reserved. Accenture 2010 Research 31
  32. 32. ServiceNew ways of doing business  Leverage the wisdom and availability of your customers  Enhance engagement: Customers help customers  Address dissatisfaction more pro-actively  Decrease Service cost & improve respond time 26 percent of consumers posted negative comments on Social Media after having a bad customer service experienceCopyright © 2011 Accenture All Rights Reserved. Accenture 2010 Research 32
  33. 33. Agenda  Dynamics of the New Normal  Social Media Explosion and Response  Why? - Social Media to drive business benefits  How? - Embracing Social Media to make it work  Conclusion & DiscussionCopyright © 2011 Accenture All Rights Reserved. 33
  34. 34. Key Enabler #1Analytics – Listen through the LoudnessAnalytics is a key enablers to direct social media strategy onto the right targets andensure investments drive value. Digital Analytics  “Now what?” analytics - predictive nor descriptive ABN Amro 290% +  Don‟t boil the ocean: conversion be hypothesis driven rates  Aggregate & enrich data Sony  Intelligent optimization: Influencer learning from insights analytics for online games  Leverage Social Analytics to measure ROICopyright © 2011 Accenture All Rights Reserved. 34
  35. 35. Key Enabler #2IT/Technology - Customer-centric AgilitySocial media relies heavily on technology which becomes a key enabler for asuccessful strategy. Selected Social Technologies  Real-time close loop Adaptive, integrate new context  Repeatable, Scalable Pilot small but expand quickly  Flexible but Secure Evolving within security promise  Not isolated from Digital & CRM Enabling seamless interactions  Focused partners Addressing technology proliferationCopyright © 2011 Accenture All Rights Reserved. 35
  36. 36. Key Enabler #3People - Engaged employees, engaged customersCurrent roles and responsibilities change with the onset of Social Media and newroles will appear. It about a culture change. Empowerment goes both ways  Align HR strategy, remaining adaptive as strategy evolves Best Buy  Bring new roles in the Twelpforce: engaged agents organization „to life‟ Twitter help  Responsibility and rigor – carefully monitor Vodafone Damage  Beyond employees, target recovery after extended workforce: partners... uncontrolled employee  Leverage as change catalyst actionCopyright © 2011 Accenture All Rights Reserved. 36
  37. 37. Get Going: Listen, Engage, Optimize 3 Drive Integration & Innovation LEVEL OF CUSTOMER ENGAGEMENT 2 Build your own network! 1 Get started! Listen Engage Optimize LEVEL OF INVOLVEMENT & ALIGNMENTCopyright © 2011 Accenture All Rights Reserved. 37
  38. 38. Listen:Get started Selected industry examples ABN Amro Nokia 290% + Piloted social conversion listening to rates predict customer service FAQs Sony Disney Influencer Follow discussions analytics for with target group online games on Facebook, YouTube & TwitterCopyright © 2011 Accenture All Rights Reserved. 38
  39. 39. Engage:Consistent, Tailored & Trusted Experience Selected industry examples Nike Best Buy Leveraging viral Real-time campaign during interactions with Tour de France to consumers via engage consumers Twitter HSBC EasyJet Tailored & relevant Blogger proposition challenge enabling bank to leveraging „join the crowd‟ influencersCopyright © 2011 Accenture All Rights Reserved. 39
  40. 40. Optimize:Drive Integration and Innovation Selected industry examples Starbucks Amazon 50 customer- Linking Facebook generated ideas with its own implemented customer account Verizon Chase Engaging Joining loyalty customer to program with exchange Social Media for their ideas StudentsCopyright © 2011 Accenture All Rights Reserved. 40
  41. 41. Framework“Fish where the Fish are” Target Media Society Customers Workforce Partners audiences Business Growth & Service & Insight & Cost objectives Acquisition Experience Innovation Reduction Channel & On-board On-board Off-board Touchpoints build acquired Technology CRM Architecture Applications Data integration Delivery Predictive Analytics & ROI metrics analytics KPIsCopyright © 2011 Accenture All Rights Reserved. 41
  42. 42. Supporting the entire employee lifecycleOrganizations can use social media as a key enabler of the enterprise. Examples: Examples: • Promote employment brand on • Improve engagement social networking sites through online communities • Identify and screen potential and internal social candidates • Provide insight into working networking Discover culture / employment „fit‟ • Provide „social rewards & Define recognition‟ for knowledge Attract & Talent Needs contribution, etc. Offer Source Talent customized rewards. Engage, Reward, Develop Retain Talent Examples: Potential Examples: Talent • Knowledge repository • Identify experts; discussion forums (documents, policies, wikis, • Groups / communities Deploy etc.) • People network (blogs, • Process support (methods, skills, relationships) (& Perform) • Share knowledge/ Right Place, templates, workflow) collaborate Right Time • Innovative and point-of-need • Real-time (instant learning opportunities (Learning messaging, video 2.0) – video, podcasting, ratings conference)Copyright © 2011 Accenture All Rights Reserved. 42
  43. 43. High Performance WorkplaceTo be effective, „Social‟ for employees needs to be part of the an integratedview on Learning, Collaboration & Knowledge Management. Knowledge-Management – Connecting people to content. Knowledge- Management Collaboration – connecting people to people Collabo- Learning Learning 2.0 – ration 2.0 building people‟s knowledge High Performance WorkplaceCopyright © 2011 Accenture All Rights Reserved. 43
  44. 44. Agenda  Dynamics of the New Normal  Social Media Explosion and Response  Why? - Social Media to drive business benefits  How? - Embracing Social Media to make it work  Conclusion & DiscussionCopyright © 2011 Accenture All Rights Reserved. 44
  45. 45. Key Learnings to get right !  Social Media is here to stay…rooted in real behaviors Pick a Strategy  Not in “early stage” for your customers; ~30% do it before it picks you  Social Media is catalyst for Mobile & Digital change  Empowers “Voice of Customer” and brings extremes You‟re not on stage anymore;  Scaled Word-of-Mouth: one trigger, then fast & broad welcome into the crowd  Not just a new channel; change catalyst at business‟ core  Embrace Social Media & Digital, but don‟t Isolate it Time to experiment is up;Act now, expect wide changes  Untangle technology, empower people across enterprise  Make it a C-Suite imperative, be clear on benefitsCopyright © 2011 Accenture All Rights Reserved. 45

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