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Customer Service
 & Engagement
            John Moore
Presented Jan. 29, 2010
American Strategic Management Institute
            Washington D.C.
The leading voice for ethical
and effective Word of Mouth
and Social Media Marketing
www.ENGAGEMENTdb.com
“… companies that are both
  deeply and widely engaged in
social media surpass their peers in
 terms of both revenue and profit
   performance by a significant
           difference.”
                              pg. 6




     www.ENGAGEMENTdb.com
Starbucks Q3’09
                       Earnings Call Transcript
                                 July 21, 2009

Howard Schultz:
 “We were just named the number 
 one brand in a new social media
 engagement report.”

 “The key here is that we are
 connecting directly with our loyal
 customers who will be driving our
 future growth.”
over 5,300,000 Facebook fans
     PageData.InsideFacebook.com
BRANDWEEK:
How are you taking this online chatter
and translating it to ROI for the brand?


“We certainly look at a few things.”

 •  Emotional connections
 •  Human connections
 •  Adds to the bottom line business

              Alexandra Wheeler
              digital strategy director, Starbucks


                 source | Brandweek, August 1, 2009
“It isn’t a marketing
  initiative. It isn’t a PR
 initiative. It’s cultivating
   and creating great
consumer value and great
 customer relationships.”
           Alexandra Wheeler
           digital strategy director, Starbucks



              source | Brandweek, August 1, 2009
17% of time spent on
the Internet is on Social
    Media websites



               source | Rubicon Consulting study (Oct. 2009)
Fortune 100 Companies…
54% have a Twitter presence
32% maintain a Blog
29% are on Facebook


             source | Burson-Marsteller & Digital Media Study (June 2009)
Social
Media
No longer IF,
 but HOW.
Word of Mouth
is the original
Social Media
Over 3,000,000,000
 word of mouth conversations
take place everyday in the U.S.



               source | Presentation from the Keller Fay Group (2009)
76% of consumers believe
companies are untruthful in
    their advertising



        source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)
78% of global consumers say
they trust recommendations
   from other consumers



              source | Nielsen’s “Trust in Advertising” Report (2007)
The typical American takes
part in 125 conversations per
 week that discuss products
         and services


                 source | Keller Fay “ Talk Track” report (2008)
Of those 125 conversations,
specific brands/companies
  are mentioned 90 times



                source | Keller Fay “ Talk Track” report (2008)
68% of WOM conversations
   are mostly positive

8% of WOM conversations
  are mostly negative

              source | Keller Fay “ Talk Track” report (2009)
“When consumers write
reviews online ... the average
  grade is 4.3 stars out of 5.”



                 source | Wall Street Journal article (Oct. 5, 2009)
“For marketers, it’s not Twitter
 that matters, but Twitterers.”



           source | Blog post from Augie Ray, Forrester Analyst (Jan. 20, 2010)
Twitterers are 3x more likely
 to be “Creators” than the
  general U.S. population


                    source | Forrester Report (Dec. 2009)
22     %        78
              WOM
                                               %
Sparked by       Sparked by
Advertising    Something else

                    source | Keller Fay “ Talk Track” report (2009)
ONE                TWO                                   THREE
              Explaining
   Great                                           Remarkable
                how a
 Customer                                              and
              Product or
 Service or                                        Entertaining
               Service
Experience                                             Stuff
                Works

              source | Bold Mouth’s “Perceptions, Practices, and Ethics” report (2006)
“When you hit a wrong note, it’s the
next note that makes it good or bad.”
                          MILES DAVIS
“You can play a
shoestring if you are
     sincere.”




                        JOHN COLTRANE
SIX KEY
POINTS
ONE

       Social Media helps
        small companies
      look bigger and big
         companies get
             smaller
source | http://www.flickr.com/photos/cyv2/2529963389/
source | http://www.flickr.com/photos/shelisrael/2733087410/
source | http://www.flickr.com/photos/lilhlfpint/2470960013/
source | http://www.flickr.com/photos/helio/1740910023/
TWO

          Listening and
         responding are
      highly under-utilized
      marketing strategies
“The most important
thing I look for in a
musician is whether he
knows how to listen.”

DUKE ELLINGTON
If a brand lacks
 confidence, then it will
  not want to listen to
negative conversations.
“Most of the social media
  engagement has been
 responding, listening, and
connecting with fans, which
   is important because
       it builds loyalty.”
             Porter Gale
             VP Marketing, Virgin America
What’s happening?   140
What’s happening?
80% of tweets are from Meformers.
Postings about insignificant doings.

What’s happening?
20% of tweets are from Informers. Those
who share informational news, incl. links

                         source | Rutgers University study (Oct. 2009)
What’s happening?
The typical Meformer has 61 friends and
43 followers.

What’s happening?
The typical Informer has 131 friends and
112 followers.

                         source | Rutgers University study (Oct. 2009)
69% of businesses on Twitter
post at least 4 times per week



             source | Burson-Marsteller & Digital Media Study (June 2009)
source | http://www.flickr.com/photos/obie/505082130/
In many ways, the
 Internet has become
  an extension of your
Marketing department.
Your goal is to become
 an INVITED GUEST with
 online conversations.
Invited Guest!
                             everyone!
Equal Parts:!

     LISTENING!
     LEARNING!
     RESPONDING!
Mix and Serve!
THREE

           Measure and
        monitor what matters
         most in the online
           conversation
www.Radian6.com
www.ScoutLabs.com
evolve24.com
                      nielsen-online.com


   overtone.com


                  jdPowerWebIntelligence.com

motivequest.com
“We’ve tried all the off-the-shelf
 monitoring applications. None
 work as well as the free tools.”

                 Daniel Sundin
                 Intranet Manager, PETCO



                 source | WOMMA Brands Council Webinar (Oct. 2009)
www.TweetDeck.com
google.com/alerts
Reach
Frequency
  Topic
  Tone
Credibility
Reach
the breadth and depth of
 the online conversation
Frequency
    how viral the
conversation becomes
Topic
the issue or issues
 being discussed
Tone
the overall sentiment
Credibility
the trustworthiness
   of the talkers
FOUR

         Buzz does not
       Create Evangelists.

       Evangelists Create
            Buzz.
!   BUZZ
Average life expectancy of
  a Fortune 500 business




      14,600                            days

               source | THE LIVING COMPANY, Arie de Geus
Average life expectancy
  of a Small Business




        3,100                                    days

       source | SMALL BUSINESS DESK REFERNCE, Gene Marks (editor)
DOT   LINE
FIVE


       Fix your “Broken
       Windows” before
       engaging online
Broken Windows Theory
Broken Windows Theory




Higher crime rates occur in cities when
 broken windows are left unrepaired
because people will conclude no one
      cares enough to fix them.
Broken Windows Theory
Broken Windows Theory




  Broken windows are visible signs to
customers that a business doesn’t care,
 that it is poorly managed, and that it
 inadequately deals with little details.
SIX

        Social Media as a
        customer service
      channel can become
       a great employee
          recruiting tool
“No one visits a website’s home
 page anymore — they walk in
  the back door, to the page
    Google sent them to.”

                Seth Godin
                Meatball Sundae (2007)
Dell corporate culture
“By participating in the blogging
   conversation, Sun is able to
communicate its corporate culture
to not only customers, but also to
 current and future employees.”




                  Jonathan Schwartz
                  ceo, Sun Microsystems
Customer Service
 & Engagement
            John Moore
www.WOMMA.org
 johnmoore@WOMMA.org

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