Is the social media revolution real or overblown? This live webinar examines the current state of social media and CRM in a town hall discussion with industry and thought leaders. Renowned for his insight and integrity, Paul will separate the buzz from the hype and present a clear, concise "state of the union" of Social CRM.
View a video of this presentation here: http://www.sugarcrm.com/crm/resources/webcast/Social-Media-Paul-Greenberg
5. The Social Customer The Social Customer New definition of trusted source Edelman Trust Barometer – “in 2006 ‘a person like me’ emerges as a credible spokesperson.” Information available nearly instantaneously – either structured or unstructured via the web Link between lifestyle and business – consumers adopt “sexy” content Consumer thinking penetrates business Social networks as active participants in effecting change (blogosphere, podcasting) Personal value chain subsumes enterprise value chain The social web (Twitter, Facebook) An increasingly a mobile customer 5
6. The Social Customer Edelman Trust Barometer 2011 What customers want to see from businesses: High quality products and services Transparent and honest business practices A company that they can trust (authenticity) 6
7. 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%) Morgan Stanley 7
12. Short definition “Social CRM is the company’s programmatic response to the customer’s control of the conversation” Social CRM
13. Practical use For now, its being used as an umbrella term for an evolving body of practice that encompasses a wide variety of components – ones that fully cover the enterprise – internally and externally Social CRM
14. Social CRM validated CRM at the Speed of Light, 4th Edition Altimeter Group 18 Use Cases (being built on) Gartner Magic Quadrant, June 2010 $1 SCRM billion submarket predicted for 2012 (Gartner) Social software market $770 million in 2011 CRM software market $13-$16 billion in 2012 In the discussion at the enterprise Social CRM
15. Social CRM execution Holistic SCRM strategy perhaps only at P&G They don’t call it that IBM’s social business transformation lacks SCRM perspective SCRM more of a tactical implementation Twitter channel for customer service Service or ideation communities Social marketing including sharing in email, use of UGC Collaboration in sales for optimization strategies The interweaving of enterprise collaboration deeply into Fusion Apps by Oracle The integration of CRM functionality directly with social channels by Pivotal Social CRM
17. Technology Integration of social channels directly into CRM system Ability to act on external engagement using traditional CRM systems – e.g. Open trouble ticket Identify lead Target customer segment/group based on sentiment, not just transactional behaviors Incorporate social data into single customer record Social CRM
18. Components Voice of the Customer Mission and Vision Objectives Business Requirements Processes Assessments Business Case including costs/TCO Risk Assessment Metrics/Benchmarks/ROI Culture Communications Vendor Selection Strategy Model Project (Pilots) Social CRM
20. A strong increase in the desire for customer insight – analytics gone wild Translates to the use of analytics Social media monitoring Adaptive intelligence Collective intelligence Customer analytics Increasingly granular look at sentiment No longer positive, negative, neutral, 1-5 More irritated, angry, upset, mildly perturbed. The Trends
21. Knowledge management trumps Enterprise content/document management Vast amounts of new information Zettabyte by 2013 How to capture, organize, use, expose KM includes web self service – via exposed knowledgebases – nearly the same available to customer as agent/CSR Enterprise Feedback Management The Trends
22. Customer Experience back in the limelight Including new forms of measurement, KPIs, benchmarks Customer interaction engines re-emerge The Trends
23. Crossover begins between E20 & SCRM begins IBM transforms culture from enterprise global services to social business E20 vendors begin to integrate with CRM Traditional CRM and enterprise vendors integrate collaboration The Trends
24. The increasing use of mobile CRM Particularly strong on the sales side, though B2C marketing too REST APIs being developed even by SOA based vendors “Push to the platform of choice” on the increase Greater phone OS competition iPhone gaining enterprise credibility Android growth slated to possibly overtake iPhone & Blackberry. Blackberry to lose market share through 2013 from 17% to 11% (Forrester) The Trends
25. Marketing white hot market Social marketing immature Share in emails Interactive marketing Revenue Performance Management newest name for marketing Focused around integration of marketing & sales objectives Traditional marketing automation and enterprise marketing management still will be preeminent Social features still at experimentation Marketing automation still fills holes in both best of breed/suites The Trends
26. Service communities becoming mainstream part of customer service Changes in how agent interacts with customers Existing old school vendors entering the field of social customer service in addition to newcomers The Trends
27. The major traditional companies continue to invest in SCRM functionality Twitter service channels Social dashboards, connectors Enterprise collaboration – internal & external Taking actions triggering workflow (roles & responsibilities) from activity streams e.g Open leads, cases from a single tweet Social vendors integrate with traditional CRM systems The Trends
29. Results what you want them to be Varies widely from company to company Long term result is to drive revenue somehow but that might not be what you are expecting from your investment Could be marketing reach Could be increased customer loyalty Could be better customer service results Could be more effective system Results from SCRM no different idea than CRM – just using differing strategy, program, metrics to get there SCRM Measurable Success
31. SCRM Measurable Success “Some say there is no ROI to social, others say there is, but it is not measurable. Don’t they see the value in listening to the voice of their Customer? There is true value there that is very measurable.” – Frank Eliason
33. Comcast Forums 14.5 million participants 45% of problems FCR 35% of problems solved in forums after 1 other contact Savings average$8/call =$92.8 million saved Case Study: Comcast
34. The Pittsburgh Story Philadelphia Flyers TV outage Twitter notification IVR message issued w/in 7 minutes of outage rather than usual 30 Savings = $1.2 million Case Study: Comcast Source: Philadelphia Flyers
35. @comcastcares 11 people FT Can field hundreds of Twitter queries a day National accolades But not seen as the cultural norm for Comcast A PR coup Lesson: How you think about results as important or more so than results themselves Case Study: Comcast
37. Case Study: Giff Gaff GiffGaff a UK based mobile virtual network operator Implement customer ideas (112 by end of 2010) incl. pricing Provide advocacy program – points for recruitment, email, activated SIM cards Community provides customer service
38. Case Study: Giff Gaff GiffGaff community is vibrant with hundreds of thousands of interactions
39. Case Study: Giff Gaff GiffGaff customers ask other customers for answers 50% of the time Source: Cap Gemini
40. GiffGaff customers are actually happy with GiffGaff unlike other U.S. based telco customers with their carriers (e.g. Verizon) 40 Case Study: Giff Gaff Source: Cap Gemini
42. Case Study: Procter & Gamble 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)
43. Case Study: Procter & 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, former 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. former Lafley, CEO, Proctor & Gamble
44. Case Study: Procter & 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 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 Have a conscious customer engagement strategy, program Don’t call it Social CRM – but it is
45. Case Study: Procter & Gamble Focused around the co-creation of value and user communities Sales/Marketing Vocalpoint – 600,000 moms Reach of 15,000,000 minimum ROI So valuable to P&G that it is now a profit center w/own CEO Independent company
46. Case Study: Procter & Gamble Connect + Develop Constant flow of needs being put out to anyone who cares to join the Connect & Develop program P&G ties entrepreneurs, inventors, suppliers etc together to collaborate on R&D that they need (e.g. packaging) Assets available for license Have reqs & have open forum
47. Case Study: Procter & Gamble Connect + Develop Proposals can be: Sent unsolicited Partnered External Network (e.g. Innocentive) Outreach from P&G to specific groups
48. Connect + Develop Success Stories Several hundred products created via company/customer/partner collaboration
49. ROI 50% of products come externally Research Technology entrepreneur networks Benefits? In 2001 – 20% of ideas, products, technologies external In 2004 – 35% of ideas, products, technologies external R&D productivity up 60% R&D as percentage of sales is down from 4.8% to 3.4% Over 100 new products Connect + Develop Works
51. Measuring the Social Customer Source: Fresh Networks 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?”
56. Customer Lifetime Value (CLV) + Customer Referral Value (CRV) CLV extension Measure of indirect revenue impact = Value of your social customer Indirect & Direct Measuring the Social Customer
57. THANK YOU Author: CRM at the Speed of Light (4th Edition) Managing Principal: The 56 Group, LLC Managing Partner/CCO: BPT Partners, EVP: National CRM Assn. Named to CRM Magazine CRM Hall of Fame 2010 Named #1 CRM Blogger 2005, twice in 2007 by TechTarget and InsideCRM & InsideCRM 2008, Forecasting Clouds, 2010 PGreenblog: http://the56group.typepad.com Social CRM: The Conversation: http://blogs.zdnet.com/crm Email: paul-greenberg3@the56group.com Twitter: http://www.twitter.com/pgreenbe Facebook: http://www.facebook.com/pgreenbe Google Voice: 571-229-7549