paul greenberg - welcome to the era of customer engagement

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2012: Customer Engagement Time Social CRM, Social Business Matures

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Page 1: Paul Greenberg - Welcome to the Era of Customer Engagement

2012: Customer Engagement TimeSocial CRM, Social Business Matures

Page 2: Paul Greenberg - Welcome to the Era of Customer Engagement

THE ERA OF CUSTOMER ENGAGEMENT BEGINS

As the Era of the Social Customer Ends

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The Social Customer

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Source: Brian Solis4

The Social Customer

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This has been a SOCIALcommunications revolution that

impacts all institutions– business among them.

5

The Social Customer

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The Social Customer

“What is 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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The Social Customer

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The Social Customer

Using Social NetworksNielsen 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%)

Page 9: Paul Greenberg - Welcome to the Era of Customer Engagement

• 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

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The Social Customer

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• 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

The Social Customer

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Source: IBM Institute for Business Value: From social media to Social CRM

The Social Customer

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Consumers' ranking: The reasons they interact with companies

via social sites

(61%) Discount

(55%) Purchase

(53%) Reviews and product rankings

(53%) General information

(52%) Exclusive information

(51%) Learn about new products

(49%) Submit opinion on current products/services

(37%) Customer service

(34%) Event participation

(33%) Feel connected

(30%) Submit ideas for new products/services

(22%) Be part of a community

Perception gap

Businesses'ranking: Why they think consumers follow them via social sites Learn about new products (73%)

General information (71%)

Submit opinion on current products/services (69%)

Exclusive information (68%)

Reviews and product rankings (67%)

Feel connected (64%)

Customer service (63%) Submit ideas for new products/services (63%)

Be part of a community (61%)

Event participation (61%)

Purchase (60%)

Discount (60%)

Note: Consumer N=1056, Busmess: Learn N=333, Generalrnfo N=336, Submt cpmrm N=334, Exclusve mfo N=333, Re\Oews/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.

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Customer Engagement

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Customer Engagement“Customer intimacy is foremost on CEOs’ minds. Eighty-eight percent of allCEOs, and an astounding 95 percent of Standouts, picked getting closerto the customer as the most important dimension to realize their strategyin the next five years. These CEOs are convinced they must not only stayconnected (or reconnect) with customers, but keep on learning how tostrengthen those bonds.” (CEO Study 2010, IBM Institute for Business Value)

Can’t stop thinkin’ about customer

intimacy. Driving me nuts

CEO

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What it isn’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

Customer Engagement

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• Definitions– Peppers & Rogers:

• Proactive involvement

– Eric Petersen• (Online engagement) is an

estimate of the degree and depth of visitor interaction on the site against a clearly defined set of goals.”

PVCEVC

Vendors/Suppliers

Friends Family

Everything Else

Going On

OtherCompanies

External Agencies

Partners/Channels

EVC

Company

Part of PVC Intersects EVC Customer

Customer Engagement

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• What is it?• It is an ongoing active

interrelationship between the company and the customer

• It is determined by customer self-selection

• The level can vary from casual to intense, infrequent to frequent, and changes moment to moment

• The customer can choose the channels they want to engage in

PVCEVC

Vendors/Suppliers

Friends Family

Everything Else

Going On

OtherCompanies

External Agencies

Partners/Channels

EVC

Company

Part of PVC Intersects EVC Customer

Customer Engagement

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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

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• 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

Customer Engagement

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Gamification

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• 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)

Customer Engagement

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• Gartner forecasts 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.

Customer Engagement

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• All games have 4 traits– A goal– Rules– Feedback system– Voluntary participation

• Gamification supports engagement – big time

• Games can evoke:– Flow (in the zone)– Fiero (Yes!)

Customer Engagement

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• 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

Customer Engagement

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Points for each line item and invoice correctly enteredTeam sportMonetary prizes to charity chosen by winning team

Customer Engagement

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Customer EngagementBad use of gamification by the otherwise popular GetGlue

I think Radiohead sucks!

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The Company Side of the Engagement Story

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• 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

Customer Engagement

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• 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

Customer Engagement

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Social CRM

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Social CRM

• Social Business– “A business that embraces

networks of people to create business value. … Social businesses more fully integrate the collective knowledge of people-centric networks to accelerate decision making, strengthen business processes, and increase innovation that matters.” - IBM®definition

– Social business encompasses internal collaboration and Social CRM

– Employees are empowered to work with and exchange knowledge with customers and each other

– Customers are given the opportunity to interact and, in more mature stages co-create/collaborate with business in meaningful activities

• Social Enterprise– A social enterprise reflects the

technological underpinnings for a social business

• It includes• Collaboration framework

& tools• Open architecture• Incorporation of social

channels into the basic IT infrastructure & communications

• Traditional operational applications or services

• Incorporation of social data into customer record

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“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’scontrol of the conversation.”

Social CRM Definition

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Social CRM

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“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.

Social CRM Perception

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Social CRM

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• Five Simple Principles of Social CRM1. 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)

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Social CRM

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• Social CRM 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

Social CRM

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• 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

Social CRM

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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

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Social CRM

• Systems of Engagement• SHOW A SCREEN HERE OF MAJOR COMPANY

SYSTEM OF ENGAGEMENT

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CASE STUDY: GIFF GAFF

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“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)

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• Who is giffgaff?– 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

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THE BETA LAUNCHCase Study: giffgaff

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• The giffgaff beta 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!

4

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The giffgaff Beta Launch

4

Created Tool Hire

3. Top 5 videos win £5000 each

1. Use the Tool to make video

2. Upload the video to YouTube – free calls 1 yr.

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Gamification = Engagement

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• Results of the 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

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THE FULL LAUNCHCase Study: giffgaff

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• The giffgaff full 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

4

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Social Networks/Engagement

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• Results of the 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!

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• giffgaff the Co.– Implement customer

ideas (112 by end of 2010) incl. pricing

– Provide advocacy program – points for recruitment, email, activated SIM cards

– Community provides customer service

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• giffgaffcommunity is vibrant with over 1 million interactions

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• giffgaff customers ask other customers for answers 50% of the time

Source: Cap Gemini

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• giffgaff customers are actually happy with giffgaff unlike other U.S. based telco customers with their carriers (e.g. Verizon)

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Source: Cap Gemini

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IN SUM…AND BUH BYE

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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

Page 57: Paul Greenberg - Welcome to the Era of Customer Engagement

Author: CRM at the Speed of Light (4th Edition)Managing Principal: The 56 Group, LLCManaging Partner/CCO: BPT Partners,EVP: National CRM Assn.Named to CRM Magazine CRM Hall of Fame 2010Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008, Forecasting Clouds, 2010PGreenblog: http://the56group.typepad.comSocial CRM: The Conversation: http://blogs.zdnet.com/crmEmail: [email protected]: http://www.twitter.com/pgreenbeFacebook: http://www.facebook.com/pgreenbeGoogle Voice: 571-229-7549

THANK YOU