This is a short version of Social CRM 2010 that shows how the social customer dominates the business ecosystem. It provides multiple examples of what companies are doing about it. AND it has a soundtrack , creative commons licensed music from Maria Daines called Rollin'
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Era of The Social Customer 2010.
1. Welcome to the Era of the Social Customer21st Century Edition
7. The Social CustomerThis is a SOCIAL transformation that impacts all institutions – business among them – not exclusively
8. The Social CustomerSea change in use of technologyGen Y first generation to spend more time on the ‘Net than watching TV96% on social networkWill outnumber baby boomers by 2010Implications for marketing staggering74% of all adults on the web are engaged with a social network/community
9. The Social CustomerThe Social Customer – The EstablishmentSocial networks as active participants in effecting change (blogosphere, podcasting)Collaboration between company & customers to provide useful value for eachPersonal value chain subsumes enterprise value chainThe social customer is increasingly a mobile customerConversant with the tools – which are inexpensive
10. The Social CustomerSource: A Typology of Information & Communication Technology Users – Pew Internet & American Life Project
14. Member communities reach more Internet users (66.8%) than email (65.1%)The Social CustomerEdelman Trust Barometer2003 – “A Person Like Me” – 22%2004 – “A Person Like Me” – 51%2005 – “A Person Like Me” – 56%2009 – “A Person Like Me” – 58%Most trusted source moved from non-connected (to corporation) experts to “a person like me.”Customers demand authenticity & transparency now
15. The Social CustomerTraditional ads – trusted by 14% (Marketing to the Social Web, Larry Weber)Peers – trusted by 90% (Nielsen Global Online Consumer Survey, 2009)
16. The Social CustomerConversation is controlled by the customerReview sitesYelpSocial networks/communitiesService complaint oriented – PlanetfeedbackGet SatisfactionLinkedInFacebook pagesSocial Media PropertiesUser generated content – video, audio, blogs etc.Blogs (200 million)34% post brands & product opinionsPodcastsGeek Brief TV
18. The Social CustomerBUSINESSWEEK, DECEMBER 19, 2005"Companies used to focus on making new, better, or cheaper products and services....Now the game is to create wonderful and emotional experiences for consumers around whatever is being sold. Its the experience that counts, not the product."“People…want capabilities and options, not uniform products…business is there to provide the tools.”“The Knowledge Economy is giving way to the Creative Economy...” (Knowledge has become a commodity so the solution is to) "focus on innovation and design as the new corporate core competencies."
20. The Social CustomerFrom CRM to Social CRM"CRM is no longer just a model for managing customers but one of customer engagement"
21. The Social CustomerSocial CRM“SocialCRM 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 response to the customer’s ownership of the conversation.”
26. But how do you begin to “know” customers?First, learn how they interact with you.Ultimately, the tools for the customer to manage their own experience are paramountGive them access to information that allows them to make informed, empowering choices which thus, provide value
27. The New Business ModelThe users and producers become partners/collaboratorsWhich means insight about your partner, rather than data on your customer becomes the mindset. The business moves to be an aggregator of products, services, tools and experiences, rather than simply a producer of goods and services for saleThe user is an advocate of the experience and, directly and by extension, the company
30. Helps indie designers sell their waresPromotes and advertises to the communityRecruit to the community and recruit from the community
31. Street TeamsSign up, get unique codeGet friends to buy on the site using unique codeDiscounts plus points for Street Team memberStreet team member can upload photos, videos, earn points (community themes)Return is cash & free clothes1% of their network = 15% of their revenueOver 8000 advocates on street teams
33. The New Sales ModelNew approaches to lead generation (non-traditional social sources) (community participation)Better handling of opportunities (Employee engagement) (Oracle Social CRM, Lotus Connections)Need for competitive differentiation of a new kind but through organizational knowledge & sales intelligence (InsideView)Reputation, influence, persuasionBased on customer insight
34. The New Customer Service ModelWhat do you do – Customer Service ModelsAgent based call centers (Ayava, Genesys, Siebel, Amdocs)Process based CRM (Sword-Ciboodle)Community driven customer service (Helpstream, RightNow)Customer experience focused call customer service (Kana)Web self service (RightNow)
35. The New Marketing ModelAuthenticity and trust is what matters – more than even the “consistency” of the message
36. The New Marketing ModelBecause the model is built on trust, the reputation of the company, not the message, becomes the brandThat means, both the perception but also the actual quantified assessment of the marketing practices as certified by third parties (TRUSTe, etc.)The practical side would be an authenticated or accredited message that is validated by the ISP or whoever is transmitting it.Marketing becomes the center point for engagement of the customerMessages are not to be pushed at the customer about products and services;Marketing uses the media tools that are available to engage the customerBut with authenticity (Walmart & Edelman screw-up)
37. Case Study: Proctor & Gamble300 brands23 of those brands $1 billion and up (e.g. Charmin, Crest, Folgers, Downy, Pringles, Tide)2 billion consumers affected w/6 billion as goal160 countries reachedOne of 30 companies on the Dow Jones Industrial Average (DJIA)
38. Case Study: Proctor & Gamble“We have to create a great experience every time you touch the brand, and the design is a really big part of creating the experience and the emotion. We try to make a customer’s experience better, but better in her terms.”– A.G. Lafley, CEO Proctor & Gamble“I think its value that rules the world. There’s an awful lot of evidence across an awful lot of categories that consumers will pay more for better design, better performance, better quality, better value and better experiences.”– A.G. Lafley, CEO, Proctor & Gamble
39. Case Study: Proctor & GambleFocused around the co-creation of value and user communitiesSales/MarketingVocalpoint – 600,000 momsTremor – 225,000 teensResearchInnovation Network – 80,000 scientistsTechnology entrepreneur networksBenefits?In 2001 – 20% of ideas, products, technologies externalIn 2004 – 35% of ideas, products, technologies externalIn 200X – 50% of ideas, products, technologies externalVirtual design, 3D simulation
40. Case Study: Proctor & GamblePerhaps the most innovative company in the U.S. when it comes to understanding of the benefits of customer ecosystemThey emphasize the “desired consumer experience” as their primary design focusTaste, smell, feel of products – not just utilityConnect & Develop programMoving technology and ideas between cross-functionallyCrest Whitestrips involved oral care unit (whitening teeth), corporate R & D (film technology), and fabric/home care (bleach experts)Tie the effort to working with consumers too50 technology entrepreneurs who scour for external resources including customersUse of ethnographers to try to understand the activities of individuals in the context of social anthropology
41. Case Study: Proctor & GambleContemporary MarketingSecret Sparkle body spray products launched Feb. 2005Not campaign focusedBlog SparkleBodySpray.com launched May 200512,000 visitors per week25 minutes per visitor per visitFour teenage authors under identities of Vanilla, Tropical, Peach, Rose (4 body spray names)Music, fashion, sports, dating, partiesInteractive activities e.g. building dream date (choice of males) that you can send to a friend
47. Advocacy“Advocates are what you aim for optimally when you build your customer strategy. You settle for loyalty. Advocates are your partners, not just your clients. It works so much better that way.” -Paul Greenberg, CRM at the Speed of Light, 4th edition
48. AdvocacyAdvocates are created through continuous:Engagement (conversation)Transparency (visibility)Authenticity (honesty, straightforward behavior)
49. AdvocacyApproach to Advocacy - StrategyValue PropositionCreation of experiences and tools with products and services designed to appeal to a commonwealth of interest based on unique insightsCustomer Strategy Outreach to customers/potential advocates Property development for customers – communities, tools, products, services available via companyGodin: Date your customersContinuous EffortOngoing feedback, outreach, data tracking, program developmentConstant desire for customer insight – not just data collection
50. The Metrics of AdvocacyNet Promoter ScoreF. Reichheld: “The one question that you need to ask your customer is ‘Would you recommend my company to someone you know?”Measured against the detractors to come up with score.Has its own advocates and detractorsReferrals as metricsWord of Mouth most influential 42.6% (BigResearch 2006)David’s Bridal – 46% of all business WOMPwC “hearing the whispers” – social metrics
51. The Metrics of AdvocacyV. KumarCustomer Lifetime Value (CLV)Customer Referral Value (CRV)Customer Brand Value (CBV)Measuring Social Customer ValueThe Social Customer
53. THANK YOUAuthor: CRM at the Speed of Light (4th Edition, February 2009)President: The 56 Group, LLCManaging Partner/CCO: BPT Partners,EVP: National CRM Assn.Co-Chair: Rutgers CRM Research CenterNamed #1 CRM Influencer (Non Vendor) by InsideCRM 2007Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM&InsideCRM 2008CRM Magazine 2008 Top InfluencerPGreenblog: http://the56group.typepad.comEmail: paul-greenberg3@comcast.netTwitter: http://www.twitter.com/pgreenbeFacebook: http://www.facebook.com/pgreenbeCell phone: 703-338-0232