Download - Era of The Social Customer 2010
Welcome to the Era of the Social Customer
21st Century Edition
The Social Customer
The Social Customer
The Social Customer
This is a SOCIAL transformation that impacts all institutions – business
among them – not exclusively
The Social Customer
Sea change in use of technology◦ Gen Y first generation to
spend more time on the ‘Net than watching TV 96% on social network Will outnumber baby
boomers by 2010
◦ Implications for marketing staggering 74% of all adults on the web
are engaged with a social network/community
The Social Customer
• The Social Customer – The Establishment◦ Social networks as active participants in effecting change
(blogosphere, podcasting)◦ Collaboration between company & customers to provide useful
value for each◦ Personal value chain subsumes enterprise value chain◦ The social customer is increasingly a mobile customer◦ Conversant with the tools – which are inexpensive
The Social Customer
Group Name Adult Pop. % Age Group
Elite Tech Users 31% 20s - early 40s
Middle-of-the-Road Tech Users 20% 30s – late 40s
Few Tech Assets 49% 50s – 60s+Source: A Typology of Information & Communication Technology Users – Pew Internet & American Life Project
The Social Customer
• Using Social Networks• Nielsen 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%)
The Social Customer
Edelman Trust Barometer◦ 2003 – “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
The Social Customer
Traditional ads – trusted by 14% (Marketing to the Social Web, Larry Weber)
Peers – trusted by 90% (Nielsen Global Online Consumer Survey, 2009)
The Social Customer
Conversation is controlled by the customer◦ Review sites
Yelp◦ Social networks/communities
Service complaint oriented – Planetfeedback
Get Satisfaction LinkedIn Facebook pages
◦ Social Media Properties User generated content – video, audio,
blogs etc.◦ Blogs (200 million)
34% post brands & product opinions◦ Podcasts
Geek Brief TV
The Social Customer
Source: Brian Solis
The Social Customer
"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."
BUSINESSWEEK, DECEMBER 19, 2005
The Social Customer
Social CRM Definition
"CRM is no longer just a model for managing customers but one of
customer engagement"
From CRM to Social CRM
The Social Customer
“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 response to the customer’s ownership of the conversation.”
Social CRM
The Social Customer
The New Business Model
• Concentrate on what your customers want, not on the dizzying array of places they converse. • Each customer wants a personalized experience…
• Understand their relationship with you exists because they appreciate the experience
• 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 paramount Give them access to information that allows them to
make informed, empowering choices which thus, provide value
The New Business Model
◦ The users and producers become partners/collaborators Which 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 sale
◦ The user is an advocate of the experience and, directly and by extension, the company
The New Business Model
New Business, Little Fella
Community retailing Multiple brands
◦ Established (Adidas, Vans)◦ Independent (The Kazbah)
Community of 800,000 Own clothing line (Sons of
Liberty
Helps indie designers sell their wares
Promotes and advertises to the community
Recruit to the community and recruit from the community
Street Teams1. Sign up, get unique
code2. Get friends to buy on
the site using unique code
3. Discounts plus points for Street Team member
4. Street team member can upload photos, videos, earn points (community themes)
5. Return is cash & free clothes
1% of their network = 15% of their revenue
Over 8000 advocates on street teams
Transformative Social CRM Models
New 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, persuasion◦ Based on customer insight
The New Sales Model
What do you do – Customer Service Models◦ Agent 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)
The New Customer Service Model
The New Marketing Model
Authenticity and trust is what matters – more than even the “consistency” of the
message
Because the model is built on trust, the reputation of the company, not the message, becomes the brand◦ That 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 customer ◦ Messages are not to be pushed at the customer about
products and services;◦ Marketing uses the media tools that are available to engage
the customer◦ But with authenticity (Walmart & Edelman screw-up)
The New Marketing Model
300 brands◦ 23 of those brands $1 billion and up (e.g. Charmin, Crest,
Folgers, Downy, Pringles, Tide) 2 billion consumers affected w/6 billion as goal 160 countries reached One of 30 companies on the Dow Jones Industrial
Average (DJIA)
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
Case Study: 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
Focused around the co-creation of value and user communities◦ Sales/Marketing
Vocalpoint – 600,000 moms Tremor – 225,000 teens
◦ Research Innovation Network – 80,000 scientists Technology entrepreneur networks Benefits?
In 2001 – 20% of ideas, products, technologies external In 2004 – 35% of ideas, products, technologies external In 200X – 50% of ideas, products, technologies external
Virtual design, 3D simulation
Case Study: Proctor & Gamble
Perhaps the most innovative company in the U.S. when it comes to understanding of the benefits of customer ecosystem◦ They emphasize the “desired consumer experience” as their
primary design focus Taste, smell, feel of products – not just utility
◦ Connect & Develop program Moving technology and ideas between cross-functionally
Crest 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 too 50 technology entrepreneurs who scour for external
resources including customers◦ Use of ethnographers to try to understand the activities of
individuals in the context of social anthropology
Case Study: Proctor & Gamble
Contemporary Marketing◦ Secret Sparkle body spray products launched Feb. 2005
Not campaign focused Blog SparkleBodySpray.com launched May 2005
12,000 visitors per week 25 minutes per visitor per visit Four teenage authors under identities of Vanilla,
Tropical, Peach, Rose (4 body spray names) Music, fashion, sports, dating, parties Interactive activities e.g. building dream date (choice of
males) that you can send to a friend
Case Study: Proctor & Gamble
Case Study: Procter & Gamble
It went from this in 2005…. ….to this in 2007
Results? 0.8% of the $10.4 billion
antiperspirant/deodorant market by July 2005
Do the math - $83 million in five months
Case Study: Procter & Gamble
But They Didn’t Forget the New 12-13 Year Olds!
Case Study: Procter & Gamble
Say hi to BeingGirl.com
Getting Results: Creating Advocates
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
Advocates are created through continuous:◦ Engagement (conversation)◦ Transparency (visibility)◦ Authenticity (honesty, straightforward behavior)
Advocacy
Approach to Advocacy - Strategy◦ Value Proposition
Creation of experiences and tools with products and services designed to appeal to a commonwealth of interest based on unique insights
◦ Customer Strategy Outreach to customers/potential advocates Property development for customers – communities, tools,
products, services available via company Godin: Date your customers
◦ Continuous Effort Ongoing feedback, outreach, data tracking, program
development Constant desire for customer insight – not just data collection
Advocacy
Net Promoter Score◦ F. 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 detractors
Referrals as metrics Word of Mouth most influential 42.6% (BigResearch
2006) David’s Bridal – 46% of all business WOM
◦ PwC “hearing the whispers” – social metrics
The Metrics of Advocacy
The Metrics of Advocacy
Measuring Social Customer ValueThe Social Customer
V. Kumar◦ Customer Lifetime Value
(CLV)◦ Customer Referral Value
(CRV)◦ Customer Brand Value
(CBV)
KLM Club China
Author: 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: [email protected]: http://www.twitter.com/pgreenbeFacebook: http://www.facebook.com/pgreenbeCell phone: 703-338-0232
THANK YOU