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Getting Maximum Value from Your Customer Community
Investment
Michael Fauscette,
Group VP, Software Business Solutions
about.me/mfauscette
@mfauscette

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@mfauscette
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@mfauscette
The Goal of Business is to Create a
Customer
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Peter Drucker
The Goal of The Customer is to Fill a Need
(or want, desire, etc.)
Me

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@mfauscette
Technology
Disrupters
Cost
take-­‐out
(to
fund
innovation)
Talent
(Skills)
&/or
capacity
gap
IT
Challenging Times
Changing
Customer
Demands
Increasing
Competition
Challenging
Macro
Conditions
BUSINESS
Source: IDC C-Suite Barometer and IDC Research
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INITIATIVES
2013
Market
Expansion
&
Customer
Experience
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CONCERNS
2013
Acquire
new
customers
&
reduce
churn
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@mfauscette
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@mfauscette
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@mfauscette
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Expectations Experience
Satisfaction
Getting
it “right”

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@mfauscette
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Sales Finance Etc…ServiceMarketing
CUSTOMER FACING
(CONNECTED)
NON-CUSTOMER
FACING
(DISCONNECTED)
Customer Relationship Management?
Data optimized by functional area
Source: IDC Research

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@mfauscette Source: IDC Research
Reduce Churn, Improved loyalty, satisfaction, better experience
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Coordinating the internal
Optimized Data Aligned with Corporate Goals
Marketing Sales Service Finance Etc…
CUSTOMER FACING
Campaign
execution, brand
control
Up-sell, cross-
sell, reference
selling
Product
Innovation based
on customer input
$ – CFOImproved
Customer Service

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@mfauscette
Building an ongoing customer relationship
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Awareness
Discovery
Attraction
Interaction
Purchase
Use
Cultivation
Advocacy
(*1) The probability of selling to a new prospect is 5-20%
(*2) The probability of selling to an existing customer is close to 70%.
Source: IDC Research & Marketing Metrics (*1,2)

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@mfauscette 11
Michael Fauscette
Mike Fauscette
mfauscette
Larry Fauscette
Larry Michael Fauscette
Larry M Fauscette
mike_fauscette
mfauscette@gmail.commfauscette@me.com
mfauscette@iCloud.com
mfauscette@idc.com

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@mfauscette
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@mfauscette
Why?
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Q. What specific initiatives are you planning to conduct using social software
for BUSINESS purposes in the next 12 months?
N=701, IDC Social Software Survey,, February 2013
0% 5% 10% 15% 20% 25% 30% 35% 40%
Internal gamification (particularly behavior analytics)
External Gamification (particularly behavior analytics)
Internal micro-blog
External micro-blog for marketing / customer service/
Crowdsourcing
External Discussion forum
"Innovation Management (more complex than
Prediction market
Internal Discussion forum
Geo-Social networking
"Ideasourcing (tools that are used to collect ideas/
File/Content sharing service
Blog/Wiki
Online office productivity
Peer feedback
Web broadcasting
Enterprise Social Network (including activity streams)
Web chat/voice/video over IP applications (including
Recruiting
Socialytics (analytic tools and applications used to
Application/Video Sharing
Public social network for marketing /customer service/
Social Learning
Online communities

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@mfauscette
Business Benefit of Community
§ Acquire New Customers
§ Design Better Products
§ Reduce Support Costs
§ Customer Intelligence Driven Marketing
§ Creating Engagement – Finding / Nurturing
Influence
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@mfauscette
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Business Value of Community - Marketing

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@mfauscette
giffgaff
§ Sim card only mobile virtual network provider
§ Community support only model
§ Almost no marketing spend
§ Rewards model
§ 75% of new subscribers WoM
§ Net Promoter Score 73%
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@mfauscette
Building Advocates
§ American Diabetes Association – Community
members 5X more likely to take advocacy
actions
§ EMC – social virtual product launches
• From a few hundred in person to >10K online
participants
• Saving $750K per year in product launches while
increasing effectiveness
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@mfauscette
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Business Value of Community - Sales

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@mfauscette
Sephora BeautyTalk
§ Personal beauty advice and product
recommendations
§ Superfans = >33 hours per month on the community
§ Community users spend 2.5X average customers
§ BeautyTalk superfans spend 10X average
customers
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@mfauscette
Brocade
§ Shifting from indirect to direct model (post Foundry acquisition)
§ New world of “sales”
§ Community
• New product awareness
• Needs and issues
• P2P
• Certification
• Thought leadership and 1 face to the customer
§ Connecting inside out – outside in
• fresh content = engagement
• Closer to the customers
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@mfauscette
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Business Value of Community - Customer
Service

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@mfauscette
Mint.com
§ Community based P2P model
§ Increased customer satisfaction and retention
§ 132K registered users – 47,750 topics in 12
months
§ 75% reduction in support tickets
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@mfauscette
Redefining Support
§ Cisco – Networked approach = 32% reduction in time to
resolve and $7M in savings
§ Autodesk – community deflected 25% of call volume =
$6.8M in savings
§ Ustream – 55% reduction in support costs
§ Webtrends – 80% issues resolved in community
§ FotoMoto – while growing biz 5X reduced support costs
30%
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@mfauscette
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Business Value of Community - Product
Innovation

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@mfauscette
National Instruments
§ Co-Innovation in product development
§ Better / more useful products
§ >3700 submitted ideas / >73K votes
§ 12+ new features per release
§ $7.5M in call deflection savings
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@mfauscette
Product Innovation
§ TechSmith – 1200 new product ideas saved
$500K in beta testing
§ Telenav - >3K customers shared product ideas
§ AthenaHealth – mobile app built from direct
customer input and >1400 product ideas
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@mfauscette
Business Benefit of Community
Acquire New Customers
• Know your customer
• Engage your customer
• Learn about your customer = Sales Intelligence
Design Better Products
• Idea sourcing
• Innovation
• Voice of customer
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@mfauscette
Business Benefit of Community
Reduce Support Cost
• Peer-to-peer support
• Reduced support tickets
• Better self-service
Customer Intelligence Driven Marketing
• Customer data value chain
• Predictive as well as reactive
• On target – 1:1
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@mfauscette
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@mfauscette
Community Best Practices
§ Communities are not a “field of dreams”
§ Professional management
§ Analytics drive engagement
§ Gamification
§ Cross-function but 1 voice
§ Trust
§ Keep it Fresh
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@mfauscette
Sense and Respond
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@mfauscette
And Remember…
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• Give Value to Get Value
• Connect outside in and inside out
• Silos are the enemy
• Technology isn’t enough – culture and process
• Sense and Respond

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@mfauscette
Michael
Fausce,e
Group
Vice
President
So7ware
Business
Solu:ons
mfausce,e@idc.com
@mfausce,e
about.me/mfausce,e
Thank You
Blog: www.mfauscette.com
IDC Social Business Blog
https://idc-insights-community.com/groups/it_agenda/
social-business
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