page 1 social media in business session 6 agenda guest speaker: nestor portillo, bill dean...
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Page 1Social Media in Business
Session 6 Agenda
Guest Speaker: Nestor Portillo, Bill Dean
Microsoft Customer Service and Support
Social Media in Customer Service and Support
Student Presentations
Time for Team Projects
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Page 2Social Media in Business
Case Study: Zappos
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Page 3Social Media in Business
Case Study: Pottery Barn
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Customer couldn’t get the store’s customer support to help. She posted her frustration on the PB wall and got instant response.
Offline service must be as good as online response.
Page 4Social Media in Business
Case Study: DirectTV
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Page 5Social Media in Business
Social Media Customer Service and Support
The New Reality. Customers control a brand’s reputation, not the company.
The Media tends to report and amplify poor customer service stories.
Social Media can make dissatisfied customer stories go viral quickly.
Social Media requires rapid response to customer feedback.
Why companies hesitate in adopting social media. Legal risks.
Potential loss of employee productivity.
Entrenched views of support as a cost center.
Organizational structure and “silo” culture.
Immature, disconnected software technologies to support collaborative,
social support and service delivery.
The need to prove the business value of social media.
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Page 6Social Media in Business
Social Media: Customer Satisfaction impacts business results.
Customer satisfaction raises revenue and lowers costs. Acquiring a customer costs 5-7 times more than retaining one.
An increase in customer retention of just 5% can boost profit
25-85%.
A “very satisfied” customer is 6 times more likely to repurchase
than a customer who is just “satisfied”.
Loyal customers tend to be less price sensitive.
Dissatisfied customers tell 9 people on average. Social media has the potential to amplify this nine many times
over.
A dissatisfied customer whose problem is resolved quickly and
painlessly is more likely to be loyal than one who never
experienced a problem.
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Page 7Social Media in Business
Social Media: Customer Care can generate Sales
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DellOutlet sells on Twitter but listens and responds to customer comments and complaints as well.
Best Buy’s Twelpforce initiative allows employees to answer customer questions on Twitter as they come in.
Page 8Social Media in Business
Social Media: Customer Service must integrate multiple channels
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Customers expect consistency across multiple online channels
Social Networks
Online Forums and Communities
Telephone and Call Centers
Community Forums increasingly important
Scale service responsiveness by tapping into customer expertise
Reward star community contributors (eg Microsoft MVP)
Gain deeper insights into customer needs, motives and behaviors
Optimize processes to gather end-to-end customer feedback
Consistency and Context across multiple channels is key
Page 9Social Media in Business
Customer Service Social Media Best And Next PracticesAugust 2009 “Best Practices: Five Strategies For Customer Service Social Media Excellence”
Page 10Social Media in Business
Customer Service Social Media Best And Next Practices (Cont.)August 2009 “Best Practices: Five Strategies For Customer Service Social Media Excellence”
Page 11Social Media in Business
Social Media Customer Service and Support
Pitfalls to avoid Why its important
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Lack of community infrastructure and policies to guide interactions
Keep conversations productive. Engage a community manager to moderate conversations.
Budget issues quash social community building initiatives
Effective and convenient way to keep in touch with customers, learn from and respond to needs and issues.
Limiting communities just to deal with customer service ands support issues
Valuable insights for product development and testing, sales opportunities and lead development.
Lack of tools or un-integrated tools to capture, track and analyze support and service issues
Context improves customer support experiences, increases knowledge base, reduces time to resolve.
Page 12Social Media in Business
Social Media Crisis Management
Crisis ResponseTactics
Listen and Monitor
Build relationships with Influencers
Create a Crisis Response Plan
Claim domain names and handles asap
Publish guidelines and train employees
Engage immediately on social channels
Update early and often on all channels
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The Reality of Social Media
Everything happens lightning fast
People demand transparency
Dialogue is key in managing crisis
Search makes or breaks reputations
Brand detractors have the same tools
Source: Ogilvy Public Relations Worldwide
Page 13Social Media in Business
Case Studies: Social Media Crisis Management
2009 H1N1 Flu Pandemic
3 Twitter accounts to reach healthcare professionals and the general public
1.2 million followers, 400,000+ click-throughs on flue related tweets
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