The document discusses the rise of the "social customer" and how companies need to adapt their customer service models for this new environment. It notes that social networks and user-generated content have given customers more control over conversations and that they now trust peer recommendations over traditional advertising. The new customer service model needs to focus on engagement, multiple channels, and understanding how customers think and feel. Companies also need to transform their contact centers to focus more on customer experience through communities, social monitoring and strong self-service options.

1. Service in the Time of the Social Customer Thursday, December 10, 2:00PM Eastern

2. Service in the Time of the Social Customer Ginger Conlon Editor-in-Chief

3. Service in the Time of the Social Customer Paul Greenberg President The 56 Group Nikhil Govindaraj VP of Products ©2009 Peppers & Rogers Group. All rights reserved. 1to1® is a registered trademark of Peppers & Rogers Group.

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5. Today’s agenda Topics of Discussion Rethinking service Integrating channels Measuring success Service 2.0 Questions and Answers Post-Event Survey

8. The social customer This is a SOCIAL transformation that impacts all institutions – business among them – not exclusively

9. The social customer See 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 are staggering 74% of all adults on the web are engaged with a social network/community

11. Nielsen Online research “Global Faces on Networked Places” (March 2009):

12. Fastest growing sector for Internet use is communities and blog sites (5.4% in a year)

14. The social customer – what do they trust? Traditional ads – trusted by 14% (Marketing to the Social Web, Larry Weber) Peers – trusted by 90% (Nielsen Global Online Consumer Survey, 2009)

15. 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

16. The social customer Source: Brian Solis

17. From CRM to Social CRM "CRM is no longer just a model for managing customers but one of customer engagement" The social customer

18. “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.” Social CRM The social customer

19. The New Customer Service Model

20. The new customer service model The social customer is demanding a rich, engaging customer experience in multiple ways – still including human contact Contact centers and multi-channel interactions with the customer are where the experience with a business is typically most intense. Customer service is becoming perhaps the most important of the CRM pillars It surrounds and is interwoven with all facets of how a company functions.

21. The new customer service model Just solving problems is no longer sufficient Customers can go elsewhere to get problem solved (threaded forums, community access) Customers have peer support Knowing how the customer is thinking & feeling is of paramount importance to insight How do you find this out when The customer communicates on multiple channels? There are thousands & even millions of customers?

22. The new customer service model Don’t be fooled by myth of decreasing interest in using phone When dealing w/enterprise 77% still prefer phone (DMG Consulting)

23. Bad customer service can go viral

24. The new customer service model What do you do – Customer Service Models Agent based call centers Process based CRM Community driven customer service Customer experience focused call customer service Web self service

25. It’s all built around the conversation...

26. Look at social network & social graph VOLUME Network Tonality Frequency Influence

27. And at the level of the individual phone call… Context DECIBELS Keywords/phrases Tempo Emotion Detection

28. Quick Hit: The New Contact Center

29. “Internally, customer service is a component of customer experience. Customer experience includes having the lowest price, having the fastest delivery, having it reliable enough so you don’t have to contact anyone. Then you save customer service for those truly unusual situations.” – Jeff Bezos, CEO Amazon The new contact center

30. The new contact center The Problems…. Forrester study in 2008 Customers disliked talking to companies because Routing to wrong agent (57%) Knowledge management average to worse (62%) Poor customer data access (60%) Other reasons? Wrong metrics Lack of understanding of new channels Retention of old models

31. Search gone wild

32. The new contact center Lead to… Losses of $338.5 billion/yr due to poor service experience e.g. cart abandonment – sales loss (Datamonitor/Ovum survey, Nov. 2009) Fifty five percent of customers who no longer want to talk to customer service reps (Forrester Research, 2008) Cost of call resolution goes from $49 per incident same day, to $61 day 2, and $155 day 3. (ServiceXRG, 2008)

33. The new contact center The Approach Keeping the ordinary, ordinary Effective results, not just efficient processes Solution + experience = success Measure for results, not cost savings Remember the human beings on both ends

34. The new contact center What can be done? Service communities Cultural change at contact center Service outreach (Twitter, Facebook) Monitoring problems outside firewall Collaborate with customers Listen, learn, act Prevent problems, not just solve them. Strong self service tools Strong knowledge management & search

35. The new contact center Technology Text/sentiment analytics Speech analytics CCPM systems Social media monitoring AVR/IVR Web Self-Service CRM Integration

36. The new contact center Self Service Option Tools for sculpted personalized experience/activity Easy ability to reach someone through chat Accessible knowledgebase for your customers Advanced – community forums for discussions

37. The new contact center Contact Center Performance Management Key customer-driven components First Contact Resolution – traditional is First Call Resolution Root Cause Analysis - not just what is causing problem but why problem is caused Next-Best Action – analysis across all touchpoints to evaluate & predict future customer needs. Customer Experience Analytics – look at the results of the outcome.

38. THANK YOU Author: CRM at the Speed of Light (4th Edition, February 2009) President: The 56 Group, LLC Managing Partner/CCO: BPT Partners, EVP: National CRM Assn. Co-Chair: Rutgers CRM Research Center Named #1 CRM Influencer (Non Vendor) by InsideCRM 2007 Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM&InsideCRM 2008 CRM Magazine 2008 Top Influencer PGreenblog: http://the56group.typepad.com Email: paul-greenberg3@comcast.net Twitter: http://www.twitter.com/pgreenbe Facebook: http://www.facebook.com/pgreenbe Cell phone: 703-551-2337

40. Questions&Answers Paul Greenberg President The 56 Group Nikhil Govindaraj VP of Products ©2009 Peppers & Rogers Group. All rights reserved. 1to1® is a registered trademark of Peppers & Rogers Group.

41. For additional information please contact Nikhil Govindaraj ngovindaraj@ngerera.com Ginger Conlon ginger.conlon@1to1.com Paul Greenberg paul-greenberg3@comcast.net