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Paul Greenberg - Welcome to the Era of Customer Engagement
1) The era of the social customer is ending and the era of customer engagement is beginning, driven by the rise of social media which has created a new "nervous system" for the planet. 2) The social customer is savvy in social channels, trusts peer recommendations more than companies, expects immediate responses from companies, and uses social networks to effect change. 3) Customer intimacy is the top priority for CEOs who want to strengthen bonds with customers and continuously learn more about them. Customer engagement is an ongoing, active relationship where the level of engagement can vary depending on the customer's self-selection of channels and involvement.
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Paul Greenberg - Welcome to the Era of Customer Engagement
- 1. 2012: Customer EngagementTime Social CRM, Social Business Matures
- 2. As the Eraof the Social Customer Ends THE ERA OF CUSTOMER ENGAGEMENT BEGINS
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- 4. The Social Customer Source: Brian Solis 4
- 5. The Social Customer This has been a SOCIAL communications revolution that impacts all institutions – business among them. 5
- 6. The Social Customer “Whatis transpiring is momentous, nothing less than the planet wiring itself a new nervous system. If your organization is not linked into this nervous system, you will be hard pressed to participate in the planet’s future. …Amidst the texting and the Twittering and Facebooking of a generation of digital natives, the fundamentals of next generation communication and collaboration are being worked out.” --Geoffrey Moore, author, Crossing the Chasm
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- 8. The Social Customer Using Social Networks Nielsen Online research “Global Faces on Networked Places” (March 2009): Fastest growing sector for Internet use is communities and blog sites (5.4% in a year) Member communities reach more Internet users (66.8%) than email (65.1%)
- 9. The Social Customer • Who is the Social Customer? – Customer who is savvy in use of social channels: • Trusts differently than they used to • Communicates with peers – 65% find peers most trusted source (Edelman 2012 Trust Barometer) • Communicates with companies • Gets what they want – 20% use Twitter for customer service (source: Colloquy) – 26% far more likely to speak badly of co. rather than well via social media • Social, mobile, local • Expects an immediate response or nearly so • Expects to have information available nearly instantly when they look for it. • Increases velocity of the consumerization of work • Uses social networks as active participants in effecting change 9
- 10. The Social Customer • Key element of the relationship: Trust – Listens to customer needs and feedback • #1 concern of public about trust in cos. – (source: Edelman Trust Barometer 2012) – Offers high quality goods & services – Treats employees well – Places customers ahead of profits
- 11. The Social Customer Consumers' ranking: Perception Businesses'ranking: The reasons they interact with companies gap Why they think consumers follow them via social sites via social sites (61%) Discount Learn about new products (73%) (55%) Purchase General information (71%) (53%) Reviews and product rankings Submit opinion on current products/services (69%) (53%) General information Exclusive information (68%) (52%) Exclusive information Reviews and product rankings (67%) (51%) Learn about new products Feel connected (64%) (49%) Submit opinion on current products/services Customer service (63%) (37%) Customer service Submit ideas for new products/services (63%) (34%) Event participation Be part of a community (61%) (33%) Feel connected Event participation (61%) (30%) Submit ideas for new products/services Purchase (60%) (22%) Be part of a community Discount (60%) Note: Consumer N=1056, Busmess: Learn N=333, Generalrnf o N=336, Submt cpmrm N=334, Exclusve mfo N=333, ReOews/ranklngs N=333, Feelcmnected N=331, Customer servr ce N=331, SUbmt Ideas N=332, Comrunrty N=329, Event N=332, Purchase N=334, Clscounts N=331 Source IBM lnstrtute for Busness Value analysr s CRM study 2011. Source: IBM Institute for Business Value: From social media to Social CRM 11
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- 13. Can’t stop thinkin’ about customer intimacy. Driving me nuts CEO Customer Engagement “Customer intimacy is foremost on CEOs’ minds. Eighty-eight percent of all CEOs, and an astounding 95 percent of Standouts, picked getting closer to the customer as the most important dimension to realize their strategy in the next five years. These CEOs are convinced they must not only stay connected (or reconnect) with customers, but keep on learning how to strengthen those bonds.” (CEO Study 2010, IBM Institute for Business Value)
- 14. Customer Engagement What itisn’t • Its not marriage • Its not advocacy • Its not loyalty • Its not consistently the same level • Its not determined by the amount of time or effort a customer makes
- 15. Customer Engagement Vendors/ • Definitions Suppliers – Peppers & Rogers: • Proactive involvement Partners/ External Company – Eric Petersen Channels Agencies • (Online engagement) is an estimate of the degree and depth of visitor interaction EVC on the site against a clearly Part of PVC Intersects defined set of goals.” Customer EVC Friends Family Other PVC EVCCompanies Everything Else Going On
- 16. Customer Engagement Vendors/ • What is it? Suppliers • It is an ongoing active interrelationship between the Partners/ External company and the customer Channels Company Agencies • It is determined by customer self-selection EVC • The level can vary from Part of PVC Intersects casual to intense, infrequent Customer EVC to frequent, and changes moment to moment Friends Family • The customer can choose the channels they want to Other PVC engage in EVCCompanies Everything Else Going On
- 17. Customer Engagement • The Era of Customer Engagement – CRM is making money for companies • $5.60 on the dollar for each CRM program reviewed (Nucleus Research) – Social channels are part of a multi-channel strategy • We’ve gone beyond experimentation in social media to a fully integrated multichannel perspective • 64% of companies beyond the experimental stage (integrated channels, multi-channel, cross-channel)(State of Social 2011, eConsultancy) – The customer has the products, services, tools and consumable experiences to sculpt the kind of experience that they want to have with the company • They self-select – Advanced thinking includes customer value-based co-creation of products etc. – Ubiquitous tools at low costs of entry • Costs of success considerably higher
- 18. Customer Engagement • Customer experience is in the forefront of strategy – 60% of companies in Bruce Temkin survey have senior exec in charge of customer experience – 30% of companies have 20+ employees delegated to customer experience – 84% have gotten positive results from Voice of Customer programs • But…. – Only 17% feel that execs are willing to trade off short term financial results for long term customer loyalty – Source: 2011 State of Customer Experience Management, Bruce Temkin
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- 20. Customer Engagement • Gamification – “…describes a series of design principles, processes, and systems used to influence, engage and motivate individuals, groups, and communities to drive behaviors and effect desired outcomes.” --Ray Wang, CEO Constellation Research Group)
- 21. Customer Engagement • Gartnerforecasts that by 2014, 70% of all businesses in the Global 2000 will have gamified apps • M2 says by 2016, we’re looking at a $2.8 billion market, – 2012 – 200% growth over 2011 $100,000,000.
- 22. Customer Engagement • Allgames have 4 traits – A goal – Rules – Feedback system – Voluntary participation • Gamification supports engagement – big time • Games can evoke: – Flow (in the zone) – Fiero (Yes!)
- 23. Customer Engagement • Can be as simple as… – If you register/buy in the next five minutes… • Or as complex as… – Farmville – World of Warcraft • Business value – Increase advocacy and loyalty – Support positive changes in customer behavior
- 24. Customer Engagement Points foreach line item and invoice correctly entered Team sport Monetary prizes to charity chosen by winning team
- 25. I think Radioheadsucks! Customer Engagement Bad use of gamification by the otherwise popular GetGlue
- 26. The Company Sideof the Engagement Story
- 27. Customer Engagement • Company concerns • Making the experience seamless regardless of channel • Recognizing the customer will be expecting the best results he/she had in all channels • Knowing the costs of trying to provide all that a customer wants is incredibly high • How to prioritize the channels proffered • What is it that we need to know about the customer or the customer group that helps us make those decisions? – Transactional – Unstructured
- 28. Customer Engagement • What should a company do to prepare? – Meet customer expectations – if they are reasonable – Don’t’ react to everything – Treat the customer as a partner, not a client – If you are comfortable with it, involve the customer as an extension of your company • Community retailing – Provide them with what they need to sculpt their own relationship with you – Recognize that your and the customer’s idea of value are not the same – Provide the most important channels to customers, not necessarily all of them
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- 30. Social CRM • SocialBusiness • Social Enterprise – “A business that embraces – A social enterprise reflects the networks of people to create technological underpinnings business value. … Social for a social business businesses more fully integrate • It includes the collective knowledge of • Collaboration framework people-centric networks to & tools accelerate decision making, strengthen business processes, • Open architecture and increase innovation that • Incorporation of social matters.” - IBM®definition channels into the basic – Social business encompasses IT infrastructure & internal collaboration and Social communications CRM • Traditional operational – Employees are empowered to applications or services work with and exchange • Incorporation of social knowledge with customers and data into customer each other record – Customers are given the opportunity to interact and, in more mature stages co- create/collaborate with business in meaningful activities 30
- 31. Social CRM Social CRM Definition “Social CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s programmatic response to the customer’s control of the conversation.” 31
- 32. Social CRM Social CRM Perception “Social CRM is the integration of traditional operational customer facing activities including strategies, programs, systems and technologies combined with emergent social channels to provide businesses with the means to communicate and engage with customers in their preferred channels for mutual benefit. 32
- 33. Social CRM • Five Simple Principles of Social CRM 1. Value & values are given & in return, value & values are received (collaboration, co-creation, mutual value, transparency, authenticity, advocacy) 2. Each of us is governed by self-interest (personalization, controlling own experiences) 3. We are social creatures too (conversation, social marketing, data capture/insight, community) 4. For ideas to be truly exciting, they have to be real (measurement, analytics, realistic objectives, success) 5. Do unto others…you know the rest (customer experience, engagement) 33
- 35. Social CRM • SocialCRM execution – Successful holistic SCRM strategy perhaps only at P&G • They don’t call it that – However, discussion everywhere – Implementations are multi-channel • Twitter channel for customer service • Service or ideation communities • Social marketing including sharing in email, use of UGC • Collaboration in sales for optimization strategies • The interweaving of enterprise collaboration deeply into traditional applications • The integration of social data into traditional systems of record
- 36. Social CRM • Systems of Engagement – We move past purely transactional systems – Now we are dealing with systems that encourage customer involvement with the company at the level that the customer chooses – They are based on: • Interactions • Collaboration • Community • Rich media • Usability • Open access • Immediacy • Insight & analysis
- 37. Social CRM • Systems of Engagement – Still needs to: • Record transactions • Automate operational processes • Capture data • Analyze data • Scale appropriately – But also needs to: • Try to create interactive environment for the customer • Capture conversations • Record real time interactions • Optimize responses in real time • Capture feedback • Provide feedback
- 38. Social CRM • Systems of Engagement • SHOW A SCREEN HERE OF MAJOR COMPANY SYSTEM OF ENGAGEMENT
- 39. CASE STUDY: GIFFGAFF
- 40. “At current trajectories,within five years we expect that community peer-to-peer support projects will supplement or replace Tier 1 contact center support in more than 40 percent of top 1,000 companies with a contact center.” (source: Drew Kraus, VP Gartner)
- 41. • Who isgiffgaff? – Virtual Mobile Network Operator (VMNO) • Sells SIM cards with embedded services – Brainchild of Director of Innovation at O2 in the UK – Start up, not division of O2
- 42. Case Study: giffgaff THEBETA LAUNCH
- 43. • The giffgaffbeta launch – Value proposition • Mutuality – Beta launch strategy • Target tech savvy digital natives who would talk • Beta launch issues • No funds for traditional media • People-powered mutuality w/o people!
- 44. The giffgaff BetaLaunch Created Tool Hire 3. Top 5 videos win £5000 each 1. Use the 2. Upload the video Tool to to YouTube – free make calls 1 yr. video
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- 46. • Results ofthe beta launch – 156 videos created – 615,116 YouTube video views – 43,301 visits to ToolHire site – 151,230 page views on ToolHire site – 6000 Facebook fans – 1.2 million reach thru primetime TV pickup – giffgaff is on the map
- 47. Case Study: giffgaff THEFULL LAUNCH
- 48. • The giffgafffull launch – Value proposition: • Remained mutuality – Full launch strategy • Target value conscious customers via low cost acquisition channels (e.g. social media) • Using social networks/communities to engage customers in conversation
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- 50. • Results ofthe full launch – Unique visitors went up 40% from beta – Tweets mentioning giffgaff up 240% – Organic search up 200% – Branded Search up 73% – Qualified visits up • SIM card activations increase • Bounce rate decrease 10% • Now have over 65,000 Facebook “likes” • Started w/0.5% share of voice!
- 51. • giffgaff theCo. – Implement customer ideas (112 by end of 2010) incl. pricing – Provide advocacy program – points for recruitment, email, activated SIM cards – Community provides customer service
- 52. • giffgaff community is vibrant with over 1 million interactions
- 53. • giffgaff customers ask other customers for answers 50% of the time Source: Cap Gemini
- 54. • giffgaff customers are actually happy with giffgaff unlike other U.S. based telco customers with their carriers (e.g. Verizon) Source: Cap Gemini 54
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- 56. In Sum • The communications revolution has transformed business • We have a new kind of customer…a social customer…but he is still a customer • Our customers should be subjects of an experience and partners, rather than objects of a sale and clients • In order to acquire and retain customers, we need to have a multichannel strategy – with selected channels • The key is the provide the products, services, tools, and consumable experiences that the customer needs to sculpt their own relationship with you • To do so, since we have transformed how we communicate, we need to enhance our current systems of record with systems of engagement
- 57. THANK YOU Author: CRMat the Speed of Light (4th Edition) Managing Principal: The 56 Group, LLC Managing Partner/CCO: BPT Partners, EVP: National CRM Assn. Named to CRM Magazine CRM Hall of Fame 2010 Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008, Forecasting Clouds, 2010 PGreenblog: http://the56group.typepad.com Social CRM: The Conversation: http://blogs.zdnet.com/crm Email: [email protected] Twitter: http://www.twitter.com/pgreenbe Facebook: http://www.facebook.com/pgreenbe Google Voice: 571-229-7549