Conference session at CRM Evolution 2013 held 8/19-21 )session was 8/20) on "Getting the Maximum Value from Your Customer Community Investment". Includes some case study data and best practices.

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

2. @mfauscette
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3. @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

4. @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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Expectations Experience
Satisfaction
Getting
it “right”

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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

9. @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

10. @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)

11. @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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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

14. @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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Business Value of Community - Marketing

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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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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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Business Value of Community - Sales

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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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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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Business Value of Community - Customer
Service

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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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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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Business Value of Community - Product
Innovation

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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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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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27. @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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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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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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Sense and Respond
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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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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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