digital atlanta 2011 - social crm and roi

Digital Atlanta

Social CRM and ROI

Alex AvendanoDirector of Product & Strategy, SS1

Partner, Arke Labs

@alexavendanolinkedin.com/in/alexavendanoalex.avendano@arkesystems.com

• My Background• Assumptions• What is “Social CRM (SCRM)”

– Basic principals and mechanics• Planning: Preparing for SCRM• Execution

– Integration & Multichannel– Deep dive: CRM Tools– Mobile Extensions

• Campaigns• Measuring Results

– Tiers of Results– An Alternative Viewpoint– ROI Models

• The Future• Next Steps

Discussion

Goals

Understand SCRM and why it’s important

Understand how you can move forward with SCRM implementation

My Background

• Started and sold clothing company while at Wharton, Henry A. Davidsen, 2006 to 2009

• Ran sales and marketing for Facebook Preferred Developer, Stuzo, 2009-2010

• Team Leader for SMB sales team at large local company, PGi, ~600MM company and 50 sellers using Salesforce, 2010-2011

• Sales and marketing strategy at local agency, Arke Systems, 2011

• Digital product management and startups, Social Strategy 1 & Arke Labs, 2011

You know what CRM is and are familiar with it’s mechanics & entities

You understand the basics of the social media landscape and data sources

You have a basic understanding of measuring ROI for your organization

You actually intend to start developing an SCRM plan for your organization

Assumptions

What is “social CRM”?

“Social CRM brings together the information your people and systems need to personalize their message at every stage of the buying process.”

Chris SpearsVice President

Arke Systems

What is Social CRM (SCRM)

- What does this mean for your sales process?

- Where do I get the information?

- How do I know that the information is relevant and accurate?

- How are sellers more effective with this info?

"Traditional CRM is referral-based whereas social CRM is reputation-based - it IS your real-time, 24x365 focus group that quickly identifies both opportunities and issues. The ability to capture, track, and quantify public opinion will dramatically improve your marketing, sales, and customer service efforts.“

Greg CoryCTO & COO

Office Arrow

(Former CEO of eMaximation.com)

- How do I integrate customer feedback?

- How do I quantify public opinion?

- How does it improve marketing, sales, and customer service?

What is Social CRM (SCRM)

“Social media brings you the voice of the customers, nearly in real-time. By actively listening to those voices […] you can build better, longer-term relationships with customers because you know what they need, or want. Knowing what appeals to customers is the cornerstone of any CRM and a big piece of the Social CRM puzzle.”

Steve EnnenPresident and CIO

Social Strategy 1

What is Social CRM (SCRM)

- Why does real-time make a difference?

- How does CRM listen to the voices at an aggregate level?

What is Social CRM (SCRM)

Social CRM is an implementation strategy that provides additional, relevant, and social data to sellers, marketers, and decision makers in an effort to improve ROI of multiple aspects of the business.

What is Social CRM (SCRM)

Basic Principals and MechanicsThe Four Ps of SCRM: People, Platform, Product, and Process

People: Your community of users and your internal decision makers

Platform: Social media outlets tied to your SCRM system

Product: The combination of tools you implement (CRM, etc.)

Process: The standards and protocol you implement to manage social

What is Social CRM (SCRM)

Traditional CRMControlled and initiated by the business

• Process is controlled by the seller

• Information is static and at the mercy of the seller

• Information is basic and simple, just the “who” and some “when”

• 1 product, 1 person

What is Social CRM (SCRM)

Traditional CRMControlled and initiated by the business

Customers Company

What is Social CRM (SCRM)

Social CRMDynamic and influenced by the customer

• Process is dynamic and influenced by the customer

• Information is dynamic and updated without seller input

• Information is robust (Who, What, Where, When, Why)

• Multiple platforms and products, customer and company influence, multiple company touch points

What is Social CRM (SCRM)

Social CRMA combination of People, Platform, Product, and Process

People Platform Product Process

What is Social CRM (SCRM)

Social CRMMultiple company touch points

• Communication (PR and Marketing) driven by social data

• Sales driven by social data

• Product Development driven by social data

• Customer Service driven by social data

What is Social CRM (SCRM)

Basic Principals and MechanicsProcess is dictated by department and goals

People Platform Product Process

Sale

sM

arke

ting

Serv

ice

There is no ‘one size fits all’ approach.

Planning: Preparing for SCRM

Planning: Preparing for SCRM

Step Back: Who Are YouUnderstand the core value drivers for your organization

Newsweek.com ArkeSystems.com

Focus on online content consumer

Site traffic hugely important, understanding visitors

No 1-1 direct sales

Heavily marketing based

Enterprise

Focus on complex sales, B2B

Site traffic heavily direct, few search visitors

All 1-1 direct sales

Heavily sales based

Small business

Planning: Preparing for SCRM

Planning is ImportantAsk the right questions and get everyone involved

Who are all the different people that need to be involved?1

What are your priorities and goals?2

What does your platform stack need to look like?3

What does your product stack need to look like?4

What are the right processes that need to be put in place?5

How are you going to measure return and constantly improve?6

Planning: Preparing for SCRM

Involve the Right PeopleDon’t start from scratch, there’s already equity

• Work has already been done, you just need to uncover it

• Lead the charge; integration and communication are key

• Form committees and teams, have an open planning process

Sellers wanted iPad apps

Using their personal iPads in the field

Teams collided

Data and productivity lost

Planning: Preparing for SCRM

Priorities and GoalsDetermine the most important goals, by department, for a social CRM plan

Reputation Management

Lead Generation

Community Building

Branding

Customer Service

User Engagement

Recruitment / HR

Thought Leadership

Product Development

SOCIAL GOALS

Planning: Preparing for SCRM

Platform StackWhat is the right set of platforms for your organization

People Platform Product Process

Sale

sM

arke

ting

Serv

ice

Planning: Preparing for SCRM

Product StackWhat is the right set of products for your organization

People Platform Product Process

Sale

sM

arke

ting

Serv

ice

Planning: Preparing for SCRM

ProcessesProcess and structure are keys to a successful implementation

People Platform Product Process

Sale

sM

arke

ting

Serv

ice

Planning: Preparing for SCRM

ProcessesProcess and structure are keys to a successful implementation

• Your biggest risk is that your team doesn’t know how to use the tools.

• Process is the most difficult component to implement and maintain.

• Lead from the front.

• For example:

• Sales – ensuring sellers know how to get the right info

• Customer Service – enabling reps to uncover issues hidden in the social graph

• Marketing – generating leads from social sources

Planning: Preparing for SCRM

ExecutionSuccessful execution will lead to meaningful results

Consider working with a partner or agency to choose the best tools and successfully implement them

Sitecore CEP Broadlook Click Dimensions

Execution: Sitecore

Execution: Click Dimensions

Execution: Broadlook

Don’t be scared of social media, embrace

it as a tremendous opportunity.

Campaigns

Campaigns

CampaignsFocus on your goals; focus on iterations

• Campaigns should boost results towards goals, in-line with social lifecycle

• Iterative approach (Discovery Driven Planning)

• Consider A/B testing

• “Social then Search” Problem• and how CRM can solve it

Campaigns

Social LifecycleDetermine where you are and what goals you are targeting

1. Build fans

2. Engage fans

3. Encourage Spread

4. Retarget & SEA

5. Integrate Offline

Iteration Feedback Loop

Measure returns and determine next

iteration

Integrate information into

the sales & marketing process

Analyze and process

informationCollect Information

Iterate

Campaigns

Discovery Driven Planning A/B Testing

Measuring Results

Measuring Results

Tiers of ResultsTrack different metrics that lead to conversion

1. Valuing your cost savingsa) Gains in productivity, testing, development

2. Valuing your social assetsa) CPM model vs. book value

3. Valuing conversion activitiesa) Measure each step towards the bottom line

4. Valuing bottom line effectsa) Sales

Measuring Returns

An Alternative Viewpoint: Avinash KaushikConversation, Amplification, Applause, and Economic Value

Conversation: Conversation Rate = # of Audience Comments (or Replies) Per Post

Amplification: Amplification = # of Shares Per Post

Applause: Applause Rate = # of Likes Per Post

Economic Value: EV = Sum of Short and Long Term Revenue and Cost Savings

Measuring Results

Return on Investment (ROI)Every organization has it’s own understanding of ROI and ROI goals

• Models like IRR, CLV, and NPV are very useful• However, they rely on the right data

• Don’t be dominated by ROI, it’s not all tangible

• Measuring impression value is easy, what about engagement value? Or the value of an integrated system that automates engagement?

• Measuring returns in the face of change and uncertainty

• Get started now, figure it out along the way, don’t play catch up• There is no case where less data is better

Measuring Results

ROI is a multifactor equation, that

depends on you.

The Future & Next Steps

The Future

The FutureUncertainty and blue sky

• This is a new field. It will change and evolve greatly.

• The landscape is forever changing. MySpace vs. Google+

• Facebook wasn’t the first. Right place at the right time…

• Personalization, automation, and “mocial”

Next Steps

Next StepsGet going, opportunity is passing you by

What we haven’t talked about

• Mobile

• Analytics

• Deep tactics

• Technical

Start writing a plan1

Get everyone involved2

Find outside support3

Go do it.

Alex Avendano

Thank you

@alexavendano

linkedin.com/in/alexavendano

alex.avendano@arkesystems.com

Next Steps

ResourcesYou should check all of these out

1. Social Media Leadership by Michael Lewis

2. Best Social Media Metrics: Conversation, Amplification, Applause, and Economic Value by Avinash Kaushik

3. Social CRM for Dummies (whitepaper by Emailvisions) by Amita Paul and Johanna C. Nilsson

4. Altimeter Report: The 18 Use Cases of Social CRM, The New Rules of Relationship Management by Altimeter Group