don peppers dancing shoes for honeybees

@DonPeppers

#SMiCS2011

Strategy. Execution. Results.

an imminent hanging. [One's] own even more so than

- Samuel Johnson

Technology respects no borders

But different countries and regions do have different cultures and regulatory requirements

In Europe, personal privacy is a more significant public-policy issue than in the U.S.

In Japan and Korea, relationships are a more natural part of all life, business and personal

for themselves and 3 friends to various FIFA events

Participants received a link to a mobi site and had to

Answer 2 questions (found on the site) and

Provide names and numbers of 3 friends, who were then also solicited, all receiving regular updates

Non-U.S. mobile marketing

72% CTR for the overall campaign!

M-Pedigree offers SMS authentication of pharmaceutical products

Enabling more trustworthy commerce

Business is facilitated by high levels of trust

Lack of trust slows transactions down and imposes frictional costs

When more trust is required, business thrives, as obstacles are reduced

works because human beings are social animals

Bees and ants communicate new discoveries to benefit the group

Now suppose you were a food

In the absence of communication among your customers, advertising rules

But when customers talk to each other, customer experience that counts

Create buzz to increase sales across channels

Engage

Improve search results for your brand

Gain insight into customer preferences and needs

Anticipate and recover from problems

Use crowd service to boost customer experience

What are brand advocates actually worth?

Harvard Business Review, October 2007

One research study of customers separated

LTV = CSV + CRV (i.e., spending plus referrals)

Surprise: always the highest spenders!

$1,000

$1,500

$2,000

$2,500

1 2 3 4 5 6 7 8 9 10

Customer Decile

CSV vs. CRV - Telecom Company

CSVCRV

Most valuable spenders

Most valuable referrers

Harvard Business Review, October 2007

Different aspects of

Knowledgable

"Exception" issue handling

CompetentEmpathy

Personable

Trustworthy

Flexible

CSATAdvocacy

buzzCompetence

Good Intentions

ILLUSTRATIVE

pre-established reputations

control the discussion or manage the word-of-mouth

Set up the conditions for success and then let it happen (or not)

April 2009: Ford announced its campaign to pick 100

October 2010 Economist Magazine:

Ford is planning a similar strategy to launch the

engagement

Custom application lets customers view product reviews on their mobiles at the cosmetics counter

53,000 followers 437,000 fans

All employees encouraged to have Twitter accounts

Most customers first heard about Zappos by word of mouth

engagement

Conversations and product reviews in blogs or websites are picked up by search engines

Social media traffic can easily generate many more search engine hits

search

Chatter in its online community changed HP from not appearing at all on first page of a keyword search to dominating the page

insight

Listen for mentions of your brand (and your

Who is talking about the brand?

What are people saying about the brand?

Where are they talking about the brand?

Also, pay attention to individual customers

What pain points are being highlighted? Directed to company at large, or a particular situation?

What is the emotion or sentiment being shared, either negative or positive?

What information is being shared about the various customer experience touchpoints?

insight

succeeding in any social media environment

The customer is not interested in your stores or your products or your people or your brand

The customer wants to be acknowledged

speak your language

insight

problems

your organization can competently handle a

John Burton, SAP Labs

Handling a service problem:AcknowledgeApologizeAct

Monitors Twitter, blogs, and online review sites for negative mentions

2400 stores in nine countries

problems

They can avoid the call center altogether

Complaints via traditional channels get lost or just fall through the cracks

Twitter agents can be more objective and empathetic

Immediate resolution to cross-departmental issues

issues, providing better answers

Why customers turn to Twitter

Read about my Carphone Warehouse horror story here: www.customerblog.co.uk

Mon, 8 Mar, 15:55

How Carphone Warehouse uses Twitter

My Carphone Warehouse horror story! Little did I know when I bought my phone from CPW that I would enter a week-

Customer then

the blog

Sorry to hear about your CPW problem. Maybe I can help. Send me a direct message @CPWcaresMon, 8 Mar, 17:34

CPW responds to tweet

Customer posts on her blog

How Carphone Warehouse uses Twitter

My Carphone Warehouse horror story! Little did I know when I bought my phone from CPW that I would enter a week-

Update: CPW comes through for me!First, I want to thank CPW for responding to my problem

Customer posts on her blog

Customer now writes a positive blog post!

crowd serviceJob Description: Spend several hours a day, up to 20 per week, at your computer, answering customer questions online about technical matters like how to set up an Internet home network or how to program a new high-definition television

Justin McMurry, Keller, TX

Pays: $0 per hourSource: New York Times, April 25, 2009

Customers helping other customers

Experience to date shows risk is minimal

But you have to be willing to give up some control

crowd service

FICO had to attract and engage Superusers

Ratings of advice, along with voting for best ideas

850,000 now on this credit-scoring analysis site

Customer service calls declined even though

crowd service

Roomba brand robotic vacuum cleaners

Complicated uses, complex home situations

Customers are now the primary service advisors for other customers

crowd service

Socially connected employees

If progress and innovation spring

tools to become more innovative and resilient

Analytics for retailersCompetes with big analytics, data, and software firms like Oracle, SAS, IRI and Nielsen

Many partners involved in analysis, review and decision-making designed to:

Optimize a trade spend

Optimize customer offers

DemandTec social media tool:Launched: May 2011

Tools for staying connected

Follow co-workers and partners

Organize groups

Social media: Management principles

De-control: Social activity is unpredictable, so how can a business manage its operations?

Sharingso how can a business tap into this?

Crowd service is a great example of sharingSharing

different from the money economy

At a cocktail party, suppose a friend asked you

Do NOT offer money, free products, or anything of economic value to encourage sharing!

DO offer:Acknowledgement: Post a comment on an

retweet a smart update Recognitionstatus awards to accomplished contributors Information: Useful data, insight, or non-confidential organizational informationAccess: Direct contact with insiders

Influencing the influencers:

People have a natural social desire to punish injustice or selfishness in others

Trust and punishment

Wikipedia works not just because of the 300,000

police it for biased or self-interested writing!

E-Bay, Amazon, Wikipedia, and crowd-service involve complex feedback loops

Social networks are systems

Negative feedback loop: Creating vs. punishing

Positive feedback loop: Popularity leads to

more popularity

De-control: Acknowledging unpredictabilityPushing on a system

does not produce linear, controlled outcomes

manage a social network or a socially connected organization

control conversation

Instead, you just have to give your honeybees dancing shoes!

Five models for enterprise social mediaCentralized: One department

Organic: Allows social media to

Hub-and-spoke: Relies on a cross-functional team to enable others

Dandelion: Multiple hub-and-spoke systems in a large organization

Honeycomb: Rare but effective, empowering individual employees throughout the firm

Source: Altimeter Group

Basic principles:

Accept the idea that most people, left to their own, actually want

Computers will never do everything

important in the social era

BA has well-controlled processes

decision

Saturdays in Santa ClaraWeekdays visiting schools

wonderful marriage at home for 36 years

Jim Phillips loves HP!

HighLow

Consumer Involvement

Process Standardization

Low Business as usual

Predictable customer

lifecycle eventsEmployees making

non-routine decisions

Threats to cost efficiency

Effective decisions require employees to be:

EngagedEnabled

Surprises, trials and tribulations

(1769)

There has to be a person in there

What you want:Self-organization

Your employees need to be

Engaged in their work and

Enabled to accomplish the mission

don peppers dancing shoes for honeybees

similar strategy

samuel johnson2 copyright

individual customers

customer preferences

brandthe customer

customer experiencecopyright

brand advocates

twitter accountsmost

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