Accenture Social Media Nick Smith

Marketing and Service Forum
Oslo, Norway
Nick Smith, Accenture

May, 2011

Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

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 & Discussion

Copyright © 2011 Accenture All Rights Reserved. 2

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 values


Customer Relationships are more complex

Changing
consumers


Evolving Dynamics of the New Normal
Consumers are highly „volatile‟, more demanding but do not seem getting
what 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. consumers

Copyright © 2011 Accenture All Rights Reserved. Source: Accenture Global Consumer Research 2010 5

Evolving Dynamics of the New Normal
Consumers are not just looking for products & services but for end-to-end
customer 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 consumers

Copyright © 2011 Accenture All Rights Reserved. Source: Accenture Global Consumer Research 2010 6

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
Service


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 ?


Marketing = Engine for Customer-centric Growth
Time 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, 2010


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
enablers


Agenda







Social Media is not a Fad… it‟s a phenomenon

Explosive 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 spheres


Social Media is not a Fad… it‟s a phenomenon

Recent examples show how Social Media has democratized societies and
how 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 90999


It‟s also about business… you can‟t avoid that.

Reaching into all spheres of users, Social Media has a direct impact on
consumers 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.

I'm having all kinds of trouble with the The New York Times, Products and Dell
hardware: overheats, network doesn't Washington Post and services improve
share
work, maxes out on CPU usage. It's 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 wouldn't 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 complaints


It‟s also about business… you can leverage that.

Companies have started recognizing the power of Social Media and started
to 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 site


Thus, “No Way around”, but…
new opportunities come with challenges

Organizations can‟t avoid the effects on consumers and need to embrace
Social 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 Media


Overcoming internal barriers

While many start to experiment, only few have really embraced „Social‟ in
their 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 Consistency

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 ?


Embracing the Social Media opportunities

Successful Social Media strategies are based on key business objectives
identified upfront and span across many functions.

First ask Then ask

WHY? HOW?
• Growth & Customer
acquisition
• Product development
& innovation
• Customer experience
& service
by target stakeholders


Agenda







Understand the target groups

First, organizations need to understand the different stakeholder groups
that 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
• Alumni's
• Architects Partners Workforce • Potential recruits
• Trade association
•…
•…


Envisioning business benefits

Then, to define the appropriate level of engagement, understand and quantify
associated 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 costs


Delivering business benefits – selected examples

How 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.




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.




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.


A fundamental change in mindset
“Not on stage anymore; welcome to the crowd”

Leaders must revise some long-held beliefs about building and managing
customer & 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 & influencers


“It‟s not just about another channel”

Social media enables word of mouth at scale and takes it to a new level. It
expands 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 the
Awareness
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 Loop


“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 functions


New ways of doing business

Social 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, continuous


Marketing


 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 Media

Copyright © 2011 Accenture All Rights Reserved. Accenture 2010 Research 30

Sales


 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 Media


Service


 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
experience


Agenda







Key Enabler #1
Analytics – Listen through the Loudness

Analytics is a key enablers to direct social media strategy onto the right targets and
ensure 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 ROI


Key Enabler #2
IT/Technology - Customer-centric Agility

Social media relies heavily on technology which becomes a key enabler for a
successful 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 proliferation


Key Enabler #3
People - Engaged employees, engaged customers

Current roles and responsibilities change with the onset of Social Media and new
roles 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
action


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 & ALIGNMENT


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 & Twitter


Engage:
Consistent, Tailored & Trusted Experience


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‟ influencers


Optimize:
Drive Integration and Innovation


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 Students


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
KPIs


Supporting the entire employee lifecycle

Organizations 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)


High Performance Workplace

To be effective, „Social‟ for employees needs to be part of the an integrated
view 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 Workplace


Agenda







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 benefits


Accenture Social Media Nick Smith

More Related Content

What's hot

Viewers also liked

Similar to Accenture Social Media Nick Smith

Recently uploaded

Accenture Social Media Nick Smith