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Social media has become an important customer service channel that can reduce costs while improving satisfaction. Companies can use social media to reduce churn, drive sales, and improve processes based on customer feedback. While it requires training and cultural changes, social media customer service improves the customer experience at a lower cost compared to traditional channels.
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Dm arts d1-s2-george mikaelian-nielsen-nmincite-serving social-2
- 1. Serving Social: UsingSocial Media to elevate your Customer Service George Mikaelian @Socialmedimouth Head of Media MENAP Nielsen Digital Marketing Arts Conference and workshop, Cairo on 10-11 Sep. 2012 Copyright 2010 NM Incite. This text is for position only.
- 2. NM Incite --The basis of our perspectives on Social Media Trusted data provider, leveraging proprietary technology and buzz sources from 180+ million social media sites – across Twitter, Facebook, blogs, message boards, and customer reviews Global reach, in 21 countries (and growing) Access to Nielsen’s proprietary consumer panels for online, TV, and retail purchases Benchmarks and insights from over 150 clients, especially in health care, CPG, retail, auto, CE, financial services Market leader in enterprise social media monitoring/ analytics (Source: Forrester) Industry-leading expertise in digital marketing, product development, and service operations Capability-building initiatives to enable incorporation of social media into core organizational processes Functional expertise in translating social media metrics and insights into action and sustained improvement 2 2 Copyright 2011 NM Incite. Confidential and proprietary.
- 3. Social media hasgrown rapidly – today nearly 4 in 5 active internet users engage in social media Facebook Growth Social Media Use1 Monthly Minutes Spent on Site Worldwide % Active Internet Users (Millions) 80,000 60,000 Users average 55 +62% minutes on 40,000 Facebook every day 20,000 - 2004 2011 YouTube Growth % Active Internet Users 2003 2011 • 21% publish or own a blog • Spend 3x more time on blogs and social networks than on email 2005 2011 Note: 1) Includes “member communities” such as Facebook, blogs, message boards / forums, and YouTube SOURCE: NetView & @Plan Data; Nielsen Q1 2010 Consumer Confidence Survey; 3 Copyright 2011 NM Incite. Confidential and proprietary.
- 4. …largely driven byreal world connections and the desire to view and contribute to reviews of products and services % Social Media Users Ever Doing Activity 26% of online discussion mentions a product, service or brand Family / Friends Lifestyle / Entertainment Family Contact Entertainment Find/Maintain Old Friends Creative Outlet Find New Friends Gaming “How To” Info Products / Services Follow Celebrities Read Consumer Feedback Dating Learn about Products Career / Networking Get Coupons, Promos Give Positive Feedback Business Contact Give Negative Feedback Find a Job SOURCE: NM Incite – The State of Social Media Survey, 2011 4 Copyright 2011 NM Incite. Confidential and proprietary.
- 5. In the MiddleEast and Arab world, Facebook has become a leading communication medium with around 27 million users 26.7 Million Facebook Users in MENA 36% Facebook percent penetration among Internet users +36,000 New Facebook Users every day from MENA 44% of users login at least once a day 75% of users login at least once a month 5 5 Copyright 2011 NM Incite. Confidential and proprietary.
- 6. Egypt, The InternetOutburst! A boost in Internet penetration in Egypt 35 33 30 29.4 25 20 21.6 17.9 15 10 11.65 7.15 8.25 5 4.37 5.57 2.53 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: MCIT, the future of the internet economy in Egypt In 2010, Internet penetration in Egypt reached 29% and in July 2011 to 33%* • FB penetration in Egypt is 14.36% (11.5Mill. Users) accounting for more than 26 million • 21% growth Vs. 6 months ago users across the nation! • Largest age group 18-24 (38%) of FB users 6 6 Copyright 2011 NM Incite. Confidential and proprietary.
- 7. Mobile Internet Users Usage Patterns – Activities and Purpose Top Activities Purpose of Usage % +14% Base = 235 Base = 235 • Checking Facebook is the most activity done online, this percentage increased from 42% last year to 56% this year which is an impact of the revolution •Purpose of usage among all age groups is mainly personal, it becomes more business oriented in the age group 45 to 54 years old. 7 7 Copyright 2011 NM Incite. Confidential and proprietary.
- 8. Online’s share continuesto increase Media in 60’s Media in 90’s Media Today The Origins of Cutting the Clutter? ‘Personal Entertainment’ That’s a toughie 8 Copyright 2011 NM Incite. Confidential and proprietary.
- 9. 9 9 Copyright 2011 NM Incite. Confidential and proprietary.
- 10. People have moreways to complain, praise, recommend, caution… Emerging Markets Developed Markets 10 10 Copyright 2011 NM Incite. Confidential and proprietary.
- 11. … and whybrands should take note. Companies are using Social Media Generation Y/C is Marketing for increasingly using business Social Customer Service customer service can become a revenue preservation and generation center Customer Satisfaction Consumers will get snapped up by a competitor monitoring your brand name 11 11 Copyright 2011 NM Incite. Confidential and proprietary.
- 12. Why it’s obvious? 12 Copyright 2011 NM Incite. Confidential and proprietary.
- 13. …largely driven byreal world connections and the desire to view and contribute to reviews of products and services 26% of online discussion mentions a product, service or brand 13 Copyright 2011 NM Incite. Confidential and proprietary.
- 14. Which Industry ismost Socially Driven? 14 Copyright 2011 NM Incite. Confidential and proprietary.
- 15. 50 0 100 200 250 300 350 450 150 400 1/11/2012 1/13/2012 1/15/2012 1/17/2012 1/19/2012 1/21/2012 1/23/2012 1/25/2012 1/27/2012 1/29/2012 Copyright 2011 NM Incite. Confidential and proprietary. 1/31/2012 2/2/2012 2/4/2012 2/6/2012 2/8/2012 2/10/2012 2/12/2012 per day 2/14/2012 2/16/2012 2/18/2012 2/20/2012 2/22/2012 2/24/2012 mentions in Q1 2012 2/26/2012 2/28/2012 • 22 777 customer service 3/1/2012 • The peaks are on Tuesday Social Media Types: Twitter, Groups, Boards, Blogs, Video and Images, Facebook 3/3/2012 • An average of 258 comments 3/5/2012 3/7/2012 3/9/2012 3/11/2012 3/13/2012 3/15/2012 3/17/2012 3/19/2012 3/21/2012 3/23/2012 15 3/25/2012 Trend analysis of Customer Service comments in the MENA region 3/27/2012 3/29/2012 3/31/2012 4/2/2012 4/4/2012 4/6/2012 15
- 16. Industry and CustomerService comments in the MENA region By crossing the general mentions on Customer Service in the Middle East blogosphere with keywords about 2 specific industries we found that Telecom is by far the major industry where online consumer voice they opinion online in English and Arabic for the last 3 months. Financial Services Telecom Customer Service 19.59% 80.41% 16 Social Media Types: Twitter, Groups, Boards, Blogs, Video and Images, Facebook 16 Copyright 2011 NM Incite. Confidential and proprietary.
- 17. Social Care Channels- Telecoms FB 1.8Mill FB 1.6Mill FB 480k 17 17 Copyright 2011 NM Incite. Confidential and proprietary.
- 18. Why companies shouldinvest in Social Care Good experience – Gets you customers Bad experience – Push them away 40% of people began purchasing from a 82% of people have stopped doing business competitive brand because of its reputation with a company due to bad customer service for great customer service 95% of customers have taken actions as a result of bad experience 55 % are willing to recommend a company due to outstanding service Harris Interactive, Right Now, TechCrunch, SatMetrix 18 Copyright 2011 NM Incite. Confidential and proprietary.
- 19. Top reasons behindcustomers switching brands • Interaction with a rude employee • Unexpected charge or fee • Poor quality of product or service Harris Interactive, Right Now, TechCrunch, SatMetrix 19 Copyright 2011 NM Incite. Confidential and proprietary.
- 20. Consumer displeasure canhave a multiplying impact 20 Copyright 2011 NM Incite. Confidential and proprietary.
- 21. Customer service inSocial Media is all about the positive experience you provide… 1. It’s the little details that can set service apart from the competition 2. Exceed Expectations and Build Opportunities for Repeat Business 3. Offer Consistent Social Service by Implementing Social Care Training 4. Keep track of the Good, the Bad and the Ugly customer service experiences 21 21 Copyright 2011 NM Incite. Confidential and proprietary.
- 22. … to improvethe value of your front-line employees Social media customer service Leadership Analysis of Word of Mouth help to get buy-in for implementing Social Customer Service. Culture You have to implement the right culture favorable to interactions with consumers using Social Media Training “Offline” Customer Service Staff don't have the skills to engage with customers via social media. Legacy It requires a change in the Call Center architecture to integrate Social Care as part of the department. Ownership Is it Customer service, Marketing or Communication department? Improved customer satisfaction scores Reduced escalations A common service language Improved staff morale and reduced turnover Reduced costs 22 22 Copyright 2011 NM Incite. Confidential and proprietary.
- 23. Social media hasexpanded the traditional boundaries of ILLUSTRATIVE customer service, especially in addressing non-directed “Traditional” customer service service issues Expansion of customer service through social media Example service strategies A B ▪ Other consumers answer ▪ Traditional channels directed queries posted on ▪ (e.g., call center, email) Demand: Customer service queries online community hosted by Directed to ▪ Store sales associate/rep company company ▪ Leverage user generated ▪ Until only a few ▪ Employees answer directed content, such as “how-to” years ago, queries through a company videos companies Twitter/Facebook group primarily serviced customers through A C D ▪ Social media has ▪ Use online social media listening/insights to monitor ▪ Influencers answer non- magnified the directed queries importance of B, Not directed and respond to non-directed queries C, and D to company (floating) ▪ Employ a company sponsored persona to respond and interact with customers in key forums Supply: Who responds to customer service queries Company Other consumers 23 Copyright 2011 NM Incite. Confidential and proprietary.
- 24. Customers expect promptresponses from companies through social media and want simple ways to communicate with them I expect a company response w/in 6 hours I expect a company response w/in 12 hours % Social Media Users % Social Media Users 18-34 18-34 35-54 35-54 55+ 55+ I want to easily talk with companies I will help other consumers with products I like1 % Social Media Users % Social Media Users 18-34 18-34 35-54 35-54 55+ 55+ Note: All charts show % respondents rating 4 or 5 on a scale of 1=strong disagree and 5=strongly agree to the statements above 1) % of consumers that would be willing to provide “customer service” to fellow consumers for products/services that they use and/or like 24 SOURCE: NM Incite – The State of Social Media Survey, 2011 Copyright 2011 NM Incite. Confidential and proprietary.
- 25. Shifting customers tosocial media channels is more cost effective and produces higher satisfaction than traditional models ESTIMATE ONLY Estimated Average Cost Per Customer Contact – By Channel $, 2011 35% of companies experienced a 10% reduction in support costs from implementing Web 2.02 $6-$12 $5 $2.5-$5 $1 <$1 <$1 Availability1 86% 25% 96% <10% 23-50% 16-37% Customer Satisfaction Note: 1) % Online retailers currently offering customer service channel; 2) MGI Web 2.0 Survey (2011) Source: Forrester Research; McKinsey Global Institute; Team Analysis 25 Copyright 2011 NM Incite. Confidential and proprietary.
- 26. Social media canbe used to pull a series of levers to reduce service costs, increase customer satisfaction, and drive sales Social media customer service levers Reduce customer churn Faster Response Times, Issue Resolution, & Transparency Proactively improve products based on customer feedback Drive up-sell through Improve quality of customer touch points service channel by improving experience Offer additional products through the service channel Improve acquisition through Turn negative experiences into loyal customers & referrals and advocacy brand advocates Reduce service costs Use as early indicator of call Improve response time & alert call centers based on service volume issues picked up online Improve loyalty/repeat usage Diagnose and fix broken Identify broken processes within the organization based on Drive upsell/cross-sell processes/products customer feedback Improving efficiency and customer experience Avoid negative flare-ups Address negative PR issues early Reduce reach of Negative viral messaging Improve overall agent Reduce agent-assisted interactions (e.g. reduce reliance on productivity call center) Improve reservoirs of customer generated knowledge to provide better answers to customer service related queries 26 Copyright 2011 NM Incite. Confidential and proprietary.
- 27. Thank You 27 27 Copyright 2011 NM Incite. Confidential and proprietary.