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Is Social CRM for Real?<br />2011<br />
What’s Changed?<br />The Social Customer Affects Business – Like It Or Not<br />
The Social Customer<br />This is a SOCIAL communications revolution that impacts all institutions<br />– business among th...
The Social Customer<br />4<br />
The Social Customer<br />The Social Customer <br />New definition of trusted source<br />Edelman Trust Barometer – “in 200...
The Social Customer<br />Edelman Trust Barometer 2011<br />What customers want to see from businesses:<br />High quality p...
The Social Customer<br />Using Social Networks<br />Nielsen Online research “Global Faces on Networked Places” (March 2009...
The Social Customer<br />8<br />
Source: Brian Solis<br />The Social Customer<br />9<br />
Source: IBM Institute for Business Value: From social media to Social CRM<br />The Social Customer<br />10<br />
Social CRM<br />Mainstream Thinking?<br />
Short definition<br />“Social CRM is the company’s programmatic response to the customer’s control of the conversation”<br...
Practical use<br />For now, its being used as an umbrella term for an evolving body of practice that encompasses a wide va...
Social CRM validated<br />CRM at the Speed of Light, 4th Edition<br />Altimeter Group 18 Use Cases (being built on)<br />G...
Social CRM execution<br />Holistic SCRM strategy perhaps only at P&G<br />They don’t call it that<br />IBM’s social busine...
Programmatic<br />Customer engagement strategy<br />Not as much management as in the past<br />Encompasses the components ...
Technology<br />Integration of social channels directly into CRM system<br />Ability to act on external engagement using t...
Components<br />Voice of the Customer<br />Mission and Vision <br />Objectives<br />Business Requirements <br />Processes ...
The Trends<br />What’s Happening 2011?<br />
A strong increase in the desire for customer insight – analytics gone wild<br />Translates to the use of analytics<br />So...
Knowledge management trumps Enterprise content/document management<br />Vast amounts of new information<br />Zettabyte by ...
Customer Experience back in the limelight<br />Including new forms of measurement, KPIs, benchmarks<br />Customer interact...
Crossover begins between E20 & SCRM begins<br />IBM transforms culture from enterprise global services to social business<...
The increasing use of mobile CRM<br />Particularly strong on the sales side, though B2C marketing too<br />REST APIs being...
Marketing white hot market<br />Social marketing immature<br />Share in emails<br />Interactive marketing<br />Revenue Per...
Service communities becoming mainstream part of customer service<br />Changes in how agent interacts with customers<br />E...
The major traditional companies continue to invest in SCRM functionality<br />Twitter service channels<br />Social dashboa...
Measurable Success<br />Studies in SCRM ROI<br />
Results what you want them to be<br />Varies widely from company to company<br />Long term result is to drive revenue some...
SCRM Measurable Success<br />
SCRM Measurable Success<br />“Some say there is no ROI to social, others say there is, but it is not measurable.  Don’t th...
Comcast2010<br />A Case Study<br />
Comcast Forums<br />14.5 million participants<br />45% of problems FCR<br />35% of problems solved in forums after 1 other...
The Pittsburgh Story<br />Philadelphia Flyers TV outage<br />Twitter notification<br />IVR message issued w/in 7 minutes o...
@comcastcares<br />11 people FT<br />Can field hundreds of Twitter queries a day<br />National accolades<br />But not seen...
Case Study: GiffGaff<br />
Case Study: Giff Gaff<br />GiffGaff a UK based mobile virtual network operator<br />Implement customer ideas (112 by end o...
Case Study: Giff Gaff<br />GiffGaff community is vibrant with hundreds of thousands of interactions<br />
Case Study: Giff Gaff<br />GiffGaff customers ask other customers for answers 50% of the time<br />Source: Cap Gemini<br />
GiffGaff customers are actually happy with GiffGaff unlike other U.S. based telco customers with their carriers (e.g. Veri...
Procter & Gamble  2011<br />A Case Study<br />
Case Study: Procter & Gamble<br />300 brands<br />23 of those brands $1 billion and up (e.g. Charmin, Crest, Folgers, Down...
Case Study: Procter & Gamble<br />“We have to create a great experience every time you touch the brand, and the design is ...
Case Study: Procter & Gamble<br />Perhaps the most innovative company in the U.S. when it comes to understanding of the be...
Case Study: Procter & Gamble<br />Focused around the co-creation of value and user communities<br />Sales/Marketing<br />V...
Case Study: Procter & Gamble<br />Connect + Develop<br />Constant flow of needs being put out to anyone who cares to join ...
Case Study: Procter & Gamble<br />Connect + Develop<br />Proposals can be:<br />Sent unsolicited<br />Partnered<br />Exter...
Connect + Develop Success Stories<br />Several hundred products created via company/customer/partner collaboration<br />
ROI<br />50% of products come externally<br />Research<br />Technology entrepreneur networks<br />Benefits?<br />In 2001 –...
Long Term ROI<br />Measuring the Social Customer<br />
Measuring the Social Customer<br />Source: Fresh Networks<br />Net Promoter Score<br />F. Reichheld: “The one question tha...
Measuring the Social Customer<br />The Network<br /><ul><li>Dr. V. Kumar
Customer Lifetime Value (CLV)
Customer Referral Value (CRV)
Customer Brand Value (CBV)</li></li></ul><li>Customer Referral Value<br />Would you recommend this company to someone you ...
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Social Media: Hype or Hope? Discussion with Social CRM Expert Paul Greenberg

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Is the social media revolution real or overblown? This live webinar examines the current state of social media and CRM in a town hall discussion with industry and thought leaders. Renowned for his insight and integrity, Paul will separate the buzz from the hype and present a clear, concise "state of the union" of Social CRM.

View a video of this presentation here: http://www.sugarcrm.com/crm/resources/webcast/Social-Media-Paul-Greenberg

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Social Media: Hype or Hope? Discussion with Social CRM Expert Paul Greenberg

  1. 1. Is Social CRM for Real?<br />2011<br />
  2. 2. What’s Changed?<br />The Social Customer Affects Business – Like It Or Not<br />
  3. 3. The Social Customer<br />This is a SOCIAL communications revolution that impacts all institutions<br />– business among them.<br />3<br />
  4. 4. The Social Customer<br />4<br />
  5. 5. The Social Customer<br />The Social Customer <br />New definition of trusted source<br />Edelman Trust Barometer – “in 2006 ‘a person like me’ emerges as a credible spokesperson.”<br />Information available nearly instantaneously – either structured or unstructured via the web <br />Link between lifestyle and business – consumers adopt “sexy” content<br />Consumer thinking penetrates business<br />Social networks as active participants in effecting change (blogosphere, podcasting)<br />Personal value chain subsumes enterprise value chain<br />The social web (Twitter, Facebook)<br />An increasingly a mobile customer<br />5<br />
  6. 6. The Social Customer<br />Edelman Trust Barometer 2011<br />What customers want to see from businesses:<br />High quality products and services<br />Transparent and honest business practices <br />A company that they can trust (authenticity)<br />6<br />
  7. 7. The Social Customer<br />Using Social Networks<br />Nielsen Online research “Global Faces on Networked Places” (March 2009):<br />Fastest growing sector for Internet use is communities and blog sites (5.4% in a year)<br />Member communities reach more Internet users (66.8%) than email (65.1%)<br />Morgan Stanley<br />7<br />
  8. 8. The Social Customer<br />8<br />
  9. 9. Source: Brian Solis<br />The Social Customer<br />9<br />
  10. 10. Source: IBM Institute for Business Value: From social media to Social CRM<br />The Social Customer<br />10<br />
  11. 11. Social CRM<br />Mainstream Thinking?<br />
  12. 12. Short definition<br />“Social CRM is the company’s programmatic response to the customer’s control of the conversation”<br />Social CRM<br />
  13. 13. Practical use<br />For now, its being used as an umbrella term for an evolving body of practice that encompasses a wide variety of components – ones that fully cover the enterprise – internally and externally<br />Social CRM<br />
  14. 14. Social CRM validated<br />CRM at the Speed of Light, 4th Edition<br />Altimeter Group 18 Use Cases (being built on)<br />Gartner Magic Quadrant, June 2010<br />$1 SCRM billion submarket predicted for 2012 (Gartner)<br />Social software market $770 million in 2011<br />CRM software market $13-$16 billion in 2012<br />In the discussion at the enterprise<br />Social CRM<br />
  15. 15. Social CRM execution<br />Holistic SCRM strategy perhaps only at P&G<br />They don’t call it that<br />IBM’s social business transformation lacks SCRM perspective<br />SCRM more of a tactical implementation<br />Twitter channel for customer service<br />Service or ideation communities<br />Social marketing including sharing in email, use of UGC<br />Collaboration in sales for optimization strategies<br />The interweaving of enterprise collaboration deeply into Fusion Apps by Oracle<br />The integration of CRM functionality directly with social channels by Pivotal<br />Social CRM<br />
  16. 16. Programmatic<br />Customer engagement strategy<br />Not as much management as in the past<br />Encompasses the components above<br />Social CRM<br />
  17. 17. Technology<br />Integration of social channels directly into CRM system<br />Ability to act on external engagement using traditional CRM systems – e.g. <br />Open trouble ticket<br />Identify lead<br />Target customer segment/group based on sentiment, not just transactional behaviors<br />Incorporate social data into single customer record<br />Social CRM<br />
  18. 18. Components<br />Voice of the Customer<br />Mission and Vision <br />Objectives<br />Business Requirements <br />Processes Assessments  <br />Business Case including costs/TCO  <br />Risk Assessment <br />Metrics/Benchmarks/ROI<br />Culture <br />Communications  <br />Vendor Selection Strategy Model Project (Pilots) <br />Social CRM<br />
  19. 19. The Trends<br />What’s Happening 2011?<br />
  20. 20. A strong increase in the desire for customer insight – analytics gone wild<br />Translates to the use of analytics<br />Social media monitoring<br />Adaptive intelligence<br />Collective intelligence<br />Customer analytics<br />Increasingly granular look at sentiment<br />No longer positive, negative, neutral, 1-5<br />More irritated, angry, upset, mildly perturbed.<br />The Trends<br />
  21. 21. Knowledge management trumps Enterprise content/document management<br />Vast amounts of new information<br />Zettabyte by 2013<br />How to capture, organize, use, expose<br />KM includes web self service – via exposed knowledgebases – nearly the same available to customer as agent/CSR<br />Enterprise Feedback Management<br />The Trends<br />
  22. 22. Customer Experience back in the limelight<br />Including new forms of measurement, KPIs, benchmarks<br />Customer interaction engines re-emerge<br />The Trends<br />
  23. 23. Crossover begins between E20 & SCRM begins<br />IBM transforms culture from enterprise global services to social business<br />E20 vendors begin to integrate with CRM<br />Traditional CRM and enterprise vendors integrate collaboration<br />The Trends<br />
  24. 24. The increasing use of mobile CRM<br />Particularly strong on the sales side, though B2C marketing too<br />REST APIs being developed even by SOA based vendors<br />“Push to the platform of choice” on the increase<br />Greater phone OS competition<br />iPhone gaining enterprise credibility<br />Android growth slated to possibly overtake iPhone & Blackberry. <br />Blackberry to lose market share through 2013 from 17% to 11% (Forrester)<br />The Trends<br />
  25. 25. Marketing white hot market<br />Social marketing immature<br />Share in emails<br />Interactive marketing<br />Revenue Performance Management newest name for marketing<br />Focused around integration of marketing & sales objectives<br />Traditional marketing automation and enterprise marketing management still will be preeminent<br />Social features still at experimentation<br />Marketing automation still fills holes in both best of breed/suites<br />The Trends<br />
  26. 26. Service communities becoming mainstream part of customer service<br />Changes in how agent interacts with customers<br />Existing old school vendors entering the field of social customer service in addition to newcomers<br />The Trends<br />
  27. 27. The major traditional companies continue to invest in SCRM functionality<br />Twitter service channels<br />Social dashboards, connectors<br />Enterprise collaboration – internal & external<br />Taking actions triggering workflow (roles & responsibilities) from activity streams<br />e.g Open leads, cases from a single tweet<br />Social vendors integrate with traditional CRM systems<br />The Trends<br />
  28. 28. Measurable Success<br />Studies in SCRM ROI<br />
  29. 29. Results what you want them to be<br />Varies widely from company to company<br />Long term result is to drive revenue somehow but that might not be what you are expecting from your investment<br />Could be marketing reach<br />Could be increased customer loyalty<br />Could be better customer service results<br />Could be more effective system<br />Results from SCRM no different idea than CRM – just using differing strategy, program, metrics to get there<br />SCRM Measurable Success<br />
  30. 30. SCRM Measurable Success<br />
  31. 31. SCRM Measurable Success<br />“Some say there is no ROI to social, others say there is, but it is not measurable. Don’t they see the value in listening to the voice of their Customer? There is true value there that is very measurable.” – Frank Eliason<br />
  32. 32. Comcast2010<br />A Case Study<br />
  33. 33. Comcast Forums<br />14.5 million participants<br />45% of problems FCR<br />35% of problems solved in forums after 1 other contact<br />Savings average$8/call<br />=$92.8 million saved<br />Case Study: Comcast<br />
  34. 34. The Pittsburgh Story<br />Philadelphia Flyers TV outage<br />Twitter notification<br />IVR message issued w/in 7 minutes of outage rather than usual 30<br />Savings = $1.2 million<br />Case Study: Comcast<br />Source: Philadelphia Flyers<br />
  35. 35. @comcastcares<br />11 people FT<br />Can field hundreds of Twitter queries a day<br />National accolades<br />But not seen as the cultural norm for Comcast<br />A PR coup<br />Lesson: How you think about results as important or more so than results themselves<br />Case Study: Comcast<br />
  36. 36. Case Study: GiffGaff<br />
  37. 37. Case Study: Giff Gaff<br />GiffGaff a UK based mobile virtual network operator<br />Implement customer ideas (112 by end of 2010) incl. pricing<br />Provide advocacy program – points for recruitment, email, activated SIM cards<br />Community provides customer service<br />
  38. 38. Case Study: Giff Gaff<br />GiffGaff community is vibrant with hundreds of thousands of interactions<br />
  39. 39. Case Study: Giff Gaff<br />GiffGaff customers ask other customers for answers 50% of the time<br />Source: Cap Gemini<br />
  40. 40. GiffGaff customers are actually happy with GiffGaff unlike other U.S. based telco customers with their carriers (e.g. Verizon)<br />40<br />Case Study: Giff Gaff<br />Source: Cap Gemini<br />
  41. 41. Procter & Gamble 2011<br />A Case Study<br />
  42. 42. Case Study: Procter & Gamble<br />300 brands<br />23 of those brands $1 billion and up (e.g. Charmin, Crest, Folgers, Downy, Pringles, Tide)<br />2 billion consumers affected w/6 billion as goal<br />160 countries reached<br />One of 30 companies on the Dow Jones Industrial Average (DJIA)<br />
  43. 43. Case Study: Procter & Gamble<br />“We have to create a great experience every time you touch the brand, and the design is a really big part of creating the experience and the emotion. We try to make a customer’s experience better, but better in her terms.”– A.G. Lafley, former CEO Proctor & Gamble<br />“I think its value that rules the world. There’s an awful lot of evidence across an awful lot of categories that consumers will pay more for better design, better performance, better quality, better value and better experiences.”– A.G. former Lafley, CEO, Proctor & Gamble<br />
  44. 44. Case Study: Procter & Gamble<br />Perhaps the most innovative company in the U.S. when it comes to understanding of the benefits of customer ecosystem <br />They emphasize the “desired consumer experience” as their primary design focus<br />Taste, smell, feel of products – not just utility<br />Tie the effort to working with consumers too<br />50 technology entrepreneurs who scour for external resources including customers<br />Use of ethnographers to try to understand the activities of individuals in the context of social anthropology<br />Have a conscious customer engagement strategy, program<br />Don’t call it Social CRM – but it is<br />
  45. 45. Case Study: Procter & Gamble<br />Focused around the co-creation of value and user communities<br />Sales/Marketing<br />Vocalpoint – 600,000 moms<br />Reach of 15,000,000 minimum<br />ROI<br />So valuable to P&G that it is now a profit center w/own CEO<br />Independent company<br />
  46. 46. Case Study: Procter & Gamble<br />Connect + Develop<br />Constant flow of needs being put out to anyone who cares to join the Connect & Develop program<br />P&G ties entrepreneurs, inventors, suppliers etc together to collaborate on R&D that they need (e.g. packaging)<br />Assets available for license<br />Have reqs & have open forum<br />
  47. 47. Case Study: Procter & Gamble<br />Connect + Develop<br />Proposals can be:<br />Sent unsolicited<br />Partnered<br />External Network (e.g. Innocentive)<br />Outreach from P&G to specific groups<br />
  48. 48. Connect + Develop Success Stories<br />Several hundred products created via company/customer/partner collaboration<br />
  49. 49. ROI<br />50% of products come externally<br />Research<br />Technology entrepreneur networks<br />Benefits?<br />In 2001 – 20% of ideas, products, technologies external<br />In 2004 – 35% of ideas, products, technologies external<br />R&D productivity up 60%<br />R&D as percentage of sales is down from 4.8% to 3.4%<br />Over 100 new products <br />Connect + Develop Works<br />
  50. 50. Long Term ROI<br />Measuring the Social Customer<br />
  51. 51. Measuring the Social Customer<br />Source: Fresh Networks<br />Net Promoter Score<br />F. Reichheld: “The one question that you need to ask your customer is ‘Would you recommend my company to someone you know?”<br />
  52. 52. Measuring the Social Customer<br />The Network<br /><ul><li>Dr. V. Kumar
  53. 53. Customer Lifetime Value (CLV)
  54. 54. Customer Referral Value (CRV)
  55. 55. Customer Brand Value (CBV)</li></li></ul><li>Customer Referral Value<br />Would you recommend this company to someone you know?<br />DID you recommend this company to someone you know?<br />Did they become a customer?<br />Were/Are they a profitable customer?<br />Measuring the Social Customer<br />
  56. 56. Customer Lifetime Value (CLV)<br />+ Customer Referral Value (CRV)<br />CLV extension<br />Measure of indirect revenue impact<br />= Value of your social customer<br />Indirect & Direct<br />Measuring the Social Customer<br />
  57. 57. THANK YOU<br />Author: CRM at the Speed of Light (4th Edition)<br />Managing Principal: The 56 Group, LLC<br />Managing Partner/CCO: BPT Partners,<br />EVP: National CRM Assn.<br />Named to CRM Magazine CRM Hall of Fame 2010<br />Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008, Forecasting Clouds, 2010<br />PGreenblog: http://the56group.typepad.com<br />Social CRM: The Conversation: http://blogs.zdnet.com/crm<br />Email: paul-greenberg3@the56group.com<br />Twitter: http://www.twitter.com/pgreenbe<br />Facebook: http://www.facebook.com/pgreenbe<br />Google Voice: 571-229-7549<br />

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