Social Customer Experience Management

1. SOCIAL CUSTOMER EXPERIENCE MANAGEMENT Social CRM 2014 21st of January, 2014 | Sheraton Tower, Singapore Nicholas Kontopoulos Senior Director, Global Product Marketing SAP Solutions for Sales, Marketing and Customer Service

2. OP + NT = EOP

3. This is the dawn of Generation C. Where "C" represents a connected society based on interests and behavior. Gen C is not an age group -ITS A WAY OF LIFE. - Brian Solis, author and digital analyst

4. THERE HAS BEEN A

5. CUSTOMERS ARE NO LONGER PASSIVE They are now armed to the teeth.

6. EVANTUBE HD ENGAGING THE BUYERS OF TOMORROW

7. EMPOWERED CUSTOMERS ARE Digitally Connected 79% of customers spend at least 50% of total shopping time researching products online. Socially Networked 53% of customers abandoned an instore purchase due to negative online sentiment. Better Informed 59% of customers are willing to try a new brand to get better customer service.

8. EVERY MINUTE OF EVERYDAY SOURCE: DOMO, INC. 48 hrs 3,125 $272,070 217 3,600 100,000 347 204,167,667 47,000 571 2,000,000 34,722 2,083 684,478 61,141 of YouTube uploads new mobile web users Wordpress blog posts new websites Foursquare check-ins Flickr photos Instagram photos Email messages Google queries Facebook shares Consumers spend Twitter tweets Apple app download Facebook likes hours of music uploaded

9. THIS CHANGES THE RULES FOR MARKETERS 2.4 BILLION brand-related conversions happen in America everyday. SOURCE – KELLER FAY GROUP

10. THIS CHANGES THE RULE FOR MARKETERS. IN ASIA PACIFIC, 59% OF CONSUMERS COMMENT ABOUT BRANDS ONLINE.

11. AND IT RAISES THE STAKES FOR CUSTOMER SERVICE 59% of customers are willing to try a new brand to get better customer service. SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER

12. IT CREATES A NEW KIND OF THINKING AROUND SALES 57% of the buying process is completed before a ﬁrst interaction with sales. SOURCE – CUSTOMER EXECUTIVE BOARD

13. WHILE CUSTOMER EXPECTATIONS CONTINUE TO RISE 71% of customers don’t think companies are doing anything to keep their business. SOURCE – AMERICAN EXPRESS GLOBAL CUSTOMER BAROMETER

14. DIGITAL DARWINISM: When technology and society evolve faster than the ability for companies to adapt. - Brian Solis

15. COMPANIES ARE STRUGGLING TO BREAKTHROUGH & ENGAGE THEIR CUSTOMERS.

16. OP + NT = EOP

17. DUDE, IT’S NOT ALL ABOUT THE TECHNOLOGY…

18. THERE IS NO SINGLE SILVER BULLET SOLUTION

19. 21ST CENTURY CUSTOMERS REQUIRE A 21ST CENTURY MANAGEMENT RESPONSE

20. REINVENTING MANAGEMENT FOR THE 21ST CENTURY REINVENTING History Lesson on Management 1.0 MANAGEMENT FOR THE 21ST CENTURY – GARY HAMEL An excerpt from the University of Phoenix Distinguished Guest Video Lecture Series

21. HISTORY LESSON ON MANAGEMENT 1.0 1890: 90% of the then developed world worked in agriculture & the average manufacturing ﬁrm employed 4 employees. 1915: Ford was making a ½ million cars and US Steel was the ﬁrst company in history to urnover $1b a year.

22. HISTORY LESSON ON MANAGEMENT 1.0 1920: By this time most of the tools for modern management have been created: Pay for Performance Capital Budgeting Task Design Divisionalization Since then the way we manage has hardly changed. Brand Management

23. 19TH CENTURY ENGAGEMENT Sales & Marketing Funnel Awareness Interest Desire Action

24. CUSTOMERS REQUIRE A NEW 21ST CENTURY ENGAGEMENT MODEL DRIVEN BY SOCIAL SHARE COMPARE TRIGGER EVENT RESEARCH SHOP PURCHASE

25. OP + NT = EOP

26. If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got. - W L Bateman

27. WE NEED TO RETHINK OUR MARKETING & SALES STRATEGIES. LET’S START WITH BINNING THE CONCEPT OF… a go-to-market strategy and replace it with A GO-TO-CUSTOMER STRATEGY ©  2011 SAP AG. All rights reserved. Public 29

28. WHICH ACRONYM do I start with? SCRM CX Social CEM CRM

29. Social CRM is a philosophy and a business strategy, supported by a technology platform, business rules, workﬂow, processes and social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneﬁcial value in a trusted and transparent business environment. It’s the company's response to the customers' ownership of the conversation. - Paul Greenberg

31. CUSTOMER EXPERIENCE The customer’s perceptions and related feelings caused by the one-oﬀ & cumulative eﬀect of interactions with a supplier’s employees, systems, channels or products. Source: Gartner

32. “Or, the aggregated memories of every touch a customer has with your company”

33. CUSTOMER EXPERIENCE MANAGEMENT The practice of designing and reacting to customer interactions to meet or exceed customer expectations to increase customer satisfaction, loyalty and advocacy. Source: Gartner

34. “Or delivering the consistent customer experience across the entire enterprise”

35. Every sale has ﬁve basic obstacles: no need, no money, no hurry, no desire, and no trust. - Zig Ziglar

36. OP + NT = EOP

37. OK, BUT HOW DOES ENTERPRISE CRM FIT INTO CUSTOMER EXPERIENCE MANAGEMENT THEN?

38. RM C

39. WE CAN DESIGN & DELIVER YOU A WORLD CLASS CRM STRATEGY NO PROBLEM!

40. COMPLEXITY

41. EXCESS BAGGAGE

42. CRM IS NOT ABOUT SOFTWARE… IT IS AN IDEOLOGY

43. IT IS ABOUT CONNECTING EMPLOYEES TO CUSTOMERS

44. IT IS ABOUT DELIGHTING YOUR CUSTOMERS

45. AND SEEING THEM AS MORE THAN JUST A NUMBER… ACCOUNT NUMBER 23058399 TRANSACTION NUMBER 00092374 COMPLAINT NUMBER CP09938 REVENUE NUMBER € $ £

46. …AND AS COMPANIES’ MOST VALUABLE ASSET

47. OP + NT = EOP

48. It’s now your obligation to study how, where & why customers are connecting and how they are making & inﬂuencing decisions. Who said it? Brian Solis

49. It takes a mere 5% of INFORMED INDIVIDUALS to inﬂuence the direction of a crowd of up to two hundred people. - Professor Jens Krause, Leeds University

50. Respondents time after time end up concluding that they lead the group – even though they were lead by others. - Professor Jens Krause, Leeds University

51. PEOPLE MAKE DECISIONS BASED ON THE SHARED EXPERIENCES OF OTHERS

52. WHERE DO YOU START?

53. YOU NEED A STRATEGY

54. 07 7 STEPS TO GET STARTED 06 WITH CEM 05 04 03 02 01 Build a cross-functional work team Map the customer journey Consolidate customer data collection/VoC Create a governance mechanism Map the customer experience ecosystem Select projects that build momentum Deﬁne key elements of a strategy Source: 1to1 Media “7 Steps to Get Started With Customer Experience”

55. CRM SUCCESS FACTORS: STRATEGY, PROCESS, TECHNOLOGY, AND PEOPLE Deploy new technology that supports required process flows. (February 2012) Business goals and objectives Develop process flows to achieve the selected strategy. Technology Process Apps and infrastructure Procedures and business rules Get target users to successfully utilize the applications Source: Forrester “Navigate the Future of CRM” Strategy People Organizational structure, skills, and incentives Condition the organization to adopt new processes.

56. AVOID BECOMING ONE OF THESE STATISTICS BY RETHINKING YOUR CRM STRATEGY 25% of firms reported that poorly 31% of firms reported that poor 48% surveyed admitted they suffered 21% of businesses stated the need defined business requirements had a negative impact on projects. technical/integration difficulties. Source: ComputerWeekly.com – Forrester; Rethink Your CRM Strategy business process design accounted for project failures. to customize CRM.

57. CUSTOMER EXPERIENCE LEADERS OUT PERFORM THE LAGGARDS +22% - 46% Over a recent five-year period during which the S&P 500 was flat, a stock portfolio of customer experience leaders grew 22%. During this time, Forrester found that those companies who performed poorest in the Customer Experience Index also performed poorest in terms of stock performance. SOURCE: FORRESTER RESEARCH 2012

58. OP + NT = EOP

59. SAP CASE STUDIES

60. AT A GLANCE Objective Transform STM’s one-to-one marketing strategy to drive loyalty and improve the customer experience through fare and route advice, and geo-localized partner rewards. Solution SAP CRM Beneﬁts Increased fare revenue from greater ride frequency and non-fare revenue from partner ecosystem “ At STM our marketing objectives are to generate additional ridership and non-fare revenue. To do this we realised we needed to engage better with our existing customers and provide a better user experience, information, and value. ” Pierre Bourbonnière Head of Marketing

61. Loyalty Integration Enhance the Rider Experience Personalized Offers Redemption Transit Directions

62. AT A GLANCE Objective Take on larger rivals by providing a delightful social media experience Solution SAP Social Media Analytics by NetBase SAP Cloud for Social Engagement Beneﬁts Meet increasing demand for social media interaction without scaling team. Reduced churn. More cost-effective customer acquisition with marketing messages based on social buzz. “ Looking at our results with social engagement, the ROI is tremendous. We are getting a 94% resolution rate as compared to our usual 11-12%. We are seeing tremendous ROI servicing our customers on social using these tools. ” Krissy Espindola Director, Knowledge Management & Social Customer Support

63. AT&T AND T-MOBILE SLUG IT OUT OVER A CUSTOMER ON TWITTER

64. USING SOCIAL TO LISTEN, UNDERSTAND, AND ENGAGE THE FULL SOCIAL WEB LISTEN SAP Social Media Analytics by NetBase YOUR TARGET AUDIENCE UNDERSTAND Fan Appz, an SAP Cloud Partner PERSON TO PERSON ENGAGE SAP Cloud for Social Engagement ©  2011 SAP AG. All rights reserved. Public 69

65. OMNI CHANNEL BUILDING A CONNECTED ENGAGEMENT PLATFORM

66. YOUR CUSTOMERS DON’T CLOCK OFF AT 5PM 24/7 BRANDS

67. TODAY’S CUSTOMERS WANT INSTANT GRATIFICATION

68. WATCH OUT FOR THE “CREEPY FACTOR”

69. 90% of word-of-mouth conversations about brands take place oﬄine. PRIMARILY Face-to-face, in people’s homes and oﬃces, in restaurants and stores. ANYWHERE PEOPLE CONGREGATE. Source: KELLER FAY GROUP

70. 1.5 BILLION MILLENNIALS GLOBALLY COMING OF AGE In 2011, the youngest hit their mid-teens & the oldest entered their 30’s YOUTH QUAKE Gen Y Impact

71. OP + NT = EOP

72. It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. - Charles Darwin

73. CHANGE IS THE BIGGEST OBSTACLE But CHANGE has now changed. It is now… •  Ever surprising •  Unrelenting •  Unforgiving •  Only going to get faster and faster and faster...

74. Adapt or Die

75. AVOID DIET PILL APPROACH SHORT TERM GAINS

76. BEWARE OF ISLAND SOLUTIONS

77. BUILD A CONNECTED ENTERPRISE BY BRINGING TOGETHER PEOPLE + PROCESS +TECHNOLOGY

78. COMPETITIVE ADVANTAGE REQUIRES HARD WORK

80. KEY TAKEAWAYS

81. OLD RECIPES NO LONGER WORK CRM MUST EVOLVE BEYOND THE FRONT OFFICE TACTICAL STRATEGIC TO BE IN THE GAME INTERNAL FOCUS TO WIN THE GAME CUSTOMER FOCUS Front Oﬃce Front Oﬃce EFFICIENCY Inside - Out FOCUS ON 1:1 CUSTOMER ENGAGEMENT Customer EXPERIENCE EFFECTIVENESS Inside - Out TO CHANGE THE GAME Outside - In

82. TO WIN TODAY YOU MUST ALIGN YOUR MARKETING AND SELLING MOTION TO YOUR BUYER’S JOURNEY AWARENESS CUSTOMER Set Criteria Commit to Change Loyal or a Detractor Assess Risk Compare BRAND ADVOCATE Purchase BUYER’S JOURNEY Target Discover Guide Win SELLING MOTION Differentiate & Value Shape Vision Influence Close Build Confidence Support

83. TURN INSIGHT INTO ACTION TO CREATE EXCEPTIONAL EXPERIENCES •  Understand customers •  Identify opportunities •  Predict their needs & behavior Interact with customers 1:1 in the moment when it matters across channels & touch points INSIGHT EXPERIENCE EXECUTION •  Drive operational excellence •  Empower employees & partners •  Deliver on your promises

84. You’ve got to start with the CUSTOMER EXPERIENCE and work back toward the technology. - Steve Jobs

87. Old Process + New Technology = Expensive Old Process

88. about.me/nicholask71

Social Customer Experience Management

SAP Customer Experience

Social Customer Experience Management