Conference session at CRM Evolution 2013 held 8/19-21 )session was 8/20) on "Getting the Maximum Value from Your Customer Community Investment". Includes some case study data and best practices.
2013 CRM Evolution Conference Session: Getting Maximum Value from You Customer Community Investment
1. Getting Maximum Value from Your Customer Community
Investment
Michael Fauscette,
Group VP, Software Business Solutions
about.me/mfauscette
@mfauscette
9. @mfauscette Source: IDC Research
Reduce Churn, Improved loyalty, satisfaction, better experience
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Coordinating the internal
Optimized Data Aligned with Corporate Goals
Marketing Sales Service Finance Etc…
CUSTOMER FACING
Campaign
execution, brand
control
Up-sell, cross-
sell, reference
selling
Product
Innovation based
on customer input
$ – CFOImproved
Customer Service
10. @mfauscette
Building an ongoing customer relationship
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Awareness
Discovery
Attraction
Interaction
Purchase
Use
Cultivation
Advocacy
(*1) The probability of selling to a new prospect is 5-20%
(*2) The probability of selling to an existing customer is close to 70%.
Source: IDC Research & Marketing Metrics (*1,2)
11. @mfauscette 11
Michael Fauscette
Mike Fauscette
mfauscette
Larry Fauscette
Larry Michael Fauscette
Larry M Fauscette
mike_fauscette
mfauscette@gmail.commfauscette@me.com
mfauscette@iCloud.com
mfauscette@idc.com
13. @mfauscette
Why?
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Q. What specific initiatives are you planning to conduct using social software
for BUSINESS purposes in the next 12 months?
N=701, IDC Social Software Survey,, February 2013
0% 5% 10% 15% 20% 25% 30% 35% 40%
Internal gamification (particularly behavior analytics)
External Gamification (particularly behavior analytics)
Internal micro-blog
External micro-blog for marketing / customer service/
Crowdsourcing
External Discussion forum
"Innovation Management (more complex than
Prediction market
Internal Discussion forum
Geo-Social networking
"Ideasourcing (tools that are used to collect ideas/
File/Content sharing service
Blog/Wiki
Online office productivity
Peer feedback
Web broadcasting
Enterprise Social Network (including activity streams)
Web chat/voice/video over IP applications (including
Recruiting
Socialytics (analytic tools and applications used to
Application/Video Sharing
Public social network for marketing /customer service/
Social Learning
Online communities
14. @mfauscette
Business Benefit of Community
§ Acquire New Customers
§ Design Better Products
§ Reduce Support Costs
§ Customer Intelligence Driven Marketing
§ Creating Engagement – Finding / Nurturing
Influence
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16. @mfauscette
giffgaff
§ Sim card only mobile virtual network provider
§ Community support only model
§ Almost no marketing spend
§ Rewards model
§ 75% of new subscribers WoM
§ Net Promoter Score 73%
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17. @mfauscette
Building Advocates
§ American Diabetes Association – Community
members 5X more likely to take advocacy
actions
§ EMC – social virtual product launches
• From a few hundred in person to >10K online
participants
• Saving $750K per year in product launches while
increasing effectiveness
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19. @mfauscette
Sephora BeautyTalk
§ Personal beauty advice and product
recommendations
§ Superfans = >33 hours per month on the community
§ Community users spend 2.5X average customers
§ BeautyTalk superfans spend 10X average
customers
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20. @mfauscette
Brocade
§ Shifting from indirect to direct model (post Foundry acquisition)
§ New world of “sales”
§ Community
• New product awareness
• Needs and issues
• P2P
• Certification
• Thought leadership and 1 face to the customer
§ Connecting inside out – outside in
• fresh content = engagement
• Closer to the customers
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22. @mfauscette
Mint.com
§ Community based P2P model
§ Increased customer satisfaction and retention
§ 132K registered users – 47,750 topics in 12
months
§ 75% reduction in support tickets
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23. @mfauscette
Redefining Support
§ Cisco – Networked approach = 32% reduction in time to
resolve and $7M in savings
§ Autodesk – community deflected 25% of call volume =
$6.8M in savings
§ Ustream – 55% reduction in support costs
§ Webtrends – 80% issues resolved in community
§ FotoMoto – while growing biz 5X reduced support costs
30%
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25. @mfauscette
National Instruments
§ Co-Innovation in product development
§ Better / more useful products
§ >3700 submitted ideas / >73K votes
§ 12+ new features per release
§ $7.5M in call deflection savings
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26. @mfauscette
Product Innovation
§ TechSmith – 1200 new product ideas saved
$500K in beta testing
§ Telenav - >3K customers shared product ideas
§ AthenaHealth – mobile app built from direct
customer input and >1400 product ideas
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27. @mfauscette
Business Benefit of Community
Acquire New Customers
• Know your customer
• Engage your customer
• Learn about your customer = Sales Intelligence
Design Better Products
• Idea sourcing
• Innovation
• Voice of customer
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28. @mfauscette
Business Benefit of Community
Reduce Support Cost
• Peer-to-peer support
• Reduced support tickets
• Better self-service
Customer Intelligence Driven Marketing
• Customer data value chain
• Predictive as well as reactive
• On target – 1:1
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30. @mfauscette
Community Best Practices
§ Communities are not a “field of dreams”
§ Professional management
§ Analytics drive engagement
§ Gamification
§ Cross-function but 1 voice
§ Trust
§ Keep it Fresh
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32. @mfauscette
And Remember…
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• Give Value to Get Value
• Connect outside in and inside out
• Silos are the enemy
• Technology isn’t enough – culture and process
• Sense and Respond
33. @mfauscette
Michael
Fausce,e
Group
Vice
President
So7ware
Business
Solu:ons
mfausce,e@idc.com
@mfausce,e
about.me/mfausce,e
Thank You
Blog: www.mfauscette.com
IDC Social Business Blog
https://idc-insights-community.com/groups/it_agenda/
social-business
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