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Attack of the
Customers!
Diaper Disaster

                  “The biggest innovation for the
                  Pampers brand in the last 25
                  years.”
                             --Procter & Gamble, Feb., 2010




                                                           “I noticed that my
                                                           daughter's skin
                                                           was red and hot to
                                                           the touch.”
                                                              -Rosana Shah, May, 2010




Tweet: #SCON12
                                               4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   2
Groundswell




Tweet: #SCON12
                 4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   3
Relief




 “You can’t join a community at a time of crisis. You have to already be
 invested in the community. That requires investment of time, people,
 money.”
                    --Paul Fox, Director of corporate communications, P&G




Tweet: #SCON12
                                                   4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   4
Social Media Crises Reaching Mainstream
  New Channels of                                          Media
  Complaint                        10

                                   8

                                   6

                                   4

                                   2

                                   0
                                        2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Where Crises Originate      Blog
                            20%
                                                   Companies are quick to deploy the
                                                   latest social media technology, yet
                                                   most have not prepared for the
               Twitter
                            YouTube                threat of social media crises…we
                18%
                              22%                  found that more than three-fourths
                                                   could have been diminished or
                Community                          averted.
                   22%                                                                 --Altimeter Group
                                        Other
                                         4%
                                                Facebook
                                                             Data source: Altimeter Group, 2011
  Tweet: #SCON12                                  14%
                                                         4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   5
Glass Houses
                 Glassdoor.com (left) enables employees to
                 review their employer and swap salary
                 information
                 The Consumer Products Safety Commission
                 now encourages buyers to self-report unsafe
                 products (below)




Tweet: #SCON12
                       4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   6
Weapons of Choice

                                       I was amazed that my tiny
                                       corner of the Web was able
                                       to move people to take
                                       action. That affected what I
                                       say now
                                       It drove home to me how much power I
                                       have and how much difference my words
                                       make.
                                                     --Jessica Gottlieb, jessicagottlieb.com




   “Motrin will pay a MUCH bigger price, as opposed to if they’d messed up in
   front of say, “Construction-Worker-Bloggers.” Mommy-Bloggers are not a
   voice to be messed with.”
                                        --Peter Shankman, quoted in The New York Times




Tweet: #SCON12
                                                     4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   7
Weapons of Choice




                                          "I definitely never expected it to
                                          become this big,“
                                              --Kristen Christian, 27, quoted in the Los
                                                                         Angeles Times



   "I think we may look back in a few years and say that this was the spark that
   caused a lot of people to say, 'Yes, credit unions are a better deal.'"
                                        --Bill Cheney, chief executive, Credit Union National Assn




Tweet: #SCON12
                                                         4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   8
Weapons of Choice




                 "1,132 unitedworkers disliked this video.”
                         --One of more than 29,000 comments on YouTube




Tweet: #SCON12
                                                         4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   9
Weapons of Choice




Tweet: #SCON12
                    4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   10
Weapons of Choice: Hate Sites




Tweet: #SCON12
                            4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   11
Weapons of Choice




Tweet: #SCON12
                    4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   12
Four Types of Attack                        @DavidTabango:
                                          Comcast really sucks.
                                           Oh my god, yes it
                                                does.
Casual Complainers
The background noise of customer relations
                                                        UsAirways sucks so
Risk: Low                                               bad. Been sitting on
Activity: High                                           tarmac for over an
                                                        hour. Initially said 5
Aggravation: Moderate                                       minutes. Sigh

Strategy: Customer-focused policies

                  Verizon sucks !! What
                    the hell why don't
                   they fix the network
                    ugh *slams door*


Tweet: #SCON12
                                            4/30/2012     ©2012 SugarCRM Inc. All rights reserved.   13
Four Types of Attack

Extortionists
Motivated by personal gain

Risk: Moderate
Activity: Low
Aggravation: High

Strategy: Fight fire with fire


                                 One B&B owner who felt "coerced" into
                                 giving two customers their money back
                                 says the travel website has become a
                                 "monster".
                                                          --TheWeek (U.K), Nov., 2011

Tweet: #SCON12
                                              4/30/2012    ©2012 SugarCRM Inc. All rights reserved.   14
Four Types of Attack

Committed Crusaders
A Higher Calling

Risk: High
Activity: Low                                                     USA Today photo

Aggravation: High
                                “Molly Katchpole’s open
                                letter to Bank of America
Strategy: Facts and education   to withdraw the fee went
                                viral. She closed her
                                account, cutting up her
                                debit card on camera, and moved
                                her money to a community bank.
                                One month and 306,000 signatures
                                later, she won: Bank of America
                                removed the charge.”
                                                       --USA Today, Nov., 2011

Tweet: #SCON12
                                     4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   15
Four Types of Attack

Irritable Influencers
Throwing Their Weight Around

Risk: High
Activity: Low
Aggravation: High

Strategy: Remain calm, prepare
to fall on your sword




Tweet: #SCON12
                                 4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   16
Attack-Proofing Your Organization
 Listen constantly
 Hope for the best; prepare for the worst
 Are your policies customer-focused?
 Empathy matters more than apology
 When you screw up, admit it
 Never make it personal
 Always take the high road

    “Every company is now sitting on electronic quicksand."

Tweet: #SCON12                      --Howard Rubenstein, PR guru
                                        4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   17
Submit Session Feedback
        Select the SugarCon Mobile App:
        1) Tap on this session
        2) Tap on survey
        3) Submit your feedback

*Prizes for attendees who submit session feedback using the Mobile App




                                               4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   18
#SCON12




          4/30/2012   ©2012 SugarCRM Inc. All rights reserved.   19
Customer Success Panel

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Paul Gillin Keynote: April 25, 2012

  • 2. Diaper Disaster “The biggest innovation for the Pampers brand in the last 25 years.” --Procter & Gamble, Feb., 2010 “I noticed that my daughter's skin was red and hot to the touch.” -Rosana Shah, May, 2010 Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 2
  • 3. Groundswell Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 3
  • 4. Relief “You can’t join a community at a time of crisis. You have to already be invested in the community. That requires investment of time, people, money.” --Paul Fox, Director of corporate communications, P&G Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 4
  • 5. Social Media Crises Reaching Mainstream New Channels of Media Complaint 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Where Crises Originate Blog 20% Companies are quick to deploy the latest social media technology, yet most have not prepared for the Twitter YouTube threat of social media crises…we 18% 22% found that more than three-fourths could have been diminished or Community averted. 22% --Altimeter Group Other 4% Facebook Data source: Altimeter Group, 2011 Tweet: #SCON12 14% 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 5
  • 6. Glass Houses Glassdoor.com (left) enables employees to review their employer and swap salary information The Consumer Products Safety Commission now encourages buyers to self-report unsafe products (below) Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 6
  • 7. Weapons of Choice I was amazed that my tiny corner of the Web was able to move people to take action. That affected what I say now It drove home to me how much power I have and how much difference my words make. --Jessica Gottlieb, jessicagottlieb.com “Motrin will pay a MUCH bigger price, as opposed to if they’d messed up in front of say, “Construction-Worker-Bloggers.” Mommy-Bloggers are not a voice to be messed with.” --Peter Shankman, quoted in The New York Times Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 7
  • 8. Weapons of Choice "I definitely never expected it to become this big,“ --Kristen Christian, 27, quoted in the Los Angeles Times "I think we may look back in a few years and say that this was the spark that caused a lot of people to say, 'Yes, credit unions are a better deal.'" --Bill Cheney, chief executive, Credit Union National Assn Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 8
  • 9. Weapons of Choice "1,132 unitedworkers disliked this video.” --One of more than 29,000 comments on YouTube Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 9
  • 10. Weapons of Choice Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 10
  • 11. Weapons of Choice: Hate Sites Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 11
  • 12. Weapons of Choice Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 12
  • 13. Four Types of Attack @DavidTabango: Comcast really sucks. Oh my god, yes it does. Casual Complainers The background noise of customer relations UsAirways sucks so Risk: Low bad. Been sitting on Activity: High tarmac for over an hour. Initially said 5 Aggravation: Moderate minutes. Sigh Strategy: Customer-focused policies Verizon sucks !! What the hell why don't they fix the network ugh *slams door* Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 13
  • 14. Four Types of Attack Extortionists Motivated by personal gain Risk: Moderate Activity: Low Aggravation: High Strategy: Fight fire with fire One B&B owner who felt "coerced" into giving two customers their money back says the travel website has become a "monster". --TheWeek (U.K), Nov., 2011 Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 14
  • 15. Four Types of Attack Committed Crusaders A Higher Calling Risk: High Activity: Low USA Today photo Aggravation: High “Molly Katchpole’s open letter to Bank of America Strategy: Facts and education to withdraw the fee went viral. She closed her account, cutting up her debit card on camera, and moved her money to a community bank. One month and 306,000 signatures later, she won: Bank of America removed the charge.” --USA Today, Nov., 2011 Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 15
  • 16. Four Types of Attack Irritable Influencers Throwing Their Weight Around Risk: High Activity: Low Aggravation: High Strategy: Remain calm, prepare to fall on your sword Tweet: #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 16
  • 17. Attack-Proofing Your Organization  Listen constantly  Hope for the best; prepare for the worst  Are your policies customer-focused?  Empathy matters more than apology  When you screw up, admit it  Never make it personal  Always take the high road “Every company is now sitting on electronic quicksand." Tweet: #SCON12 --Howard Rubenstein, PR guru 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 17
  • 18. Submit Session Feedback Select the SugarCon Mobile App: 1) Tap on this session 2) Tap on survey 3) Submit your feedback *Prizes for attendees who submit session feedback using the Mobile App 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 18
  • 19. #SCON12 4/30/2012 ©2012 SugarCRM Inc. All rights reserved. 19

Editor's Notes

  1. Kristen Christian started the campaign Oct. 4 by inviting 500 of her Facebook friends to abandon their banks. Christian said she would have been happy if just a few others joined her, but it became something much bigger.About 650,000 U.S. consumers opened credit union accounts in the month since BofA announced Sept. 29 its planned debit card fee, according to the Credit Union National Assn., a trade organization. That compares to an average of 80,000 new members a month the rest of the year, the group reported.Faced with mounting consumer criticism, BofA abandoned the planned fee Tuesday.
  2.  "..within four days of the song going online, the gathering thunderclouds of bad PR caused United Airlines' stock price to suffer a mid-flight stall, and it plunged by 10 per cent, costing shareholders $180 million. Which, incidentally, would have bought Carroll more than 51,000 replacement guitars."--Chris Ayres, Times Online (UK)