Most organizations measure the value of customer service as a cost center. Few take the position of seeing customer service as the provider of customer satisfaction, loyalty and word of mouth. To view customer service as a strategic asset requires that the organization see customer service as a revenue generator and a preserver of revenue. Strategic customer service then provides a new financial view of service and the investments in the end-to-end customer experience. In this talk, we’ll cover strategic social customer service, including: * Impact of social media on customer problem prevention. * Why customer service is PR and PR is customer service. * Large, blue chip company case study for social customer service ROI.

1. How Strategic Social
Customer Service Generates
and Preserves Revenue
Kathy Herrmann and Dr. Natalie Petouhoff

2. Kathy Herrmann Dr. Natalie Petouhoff
Measurement & Insight, BCF UCLA & Executable Strategies
(757) 497-4811 (310) 919-8467
kherrmann@boomyourbrand.com DrNatalie@gmail.com
www.boomyourbrand.com www.drnatalienews.com

3. ROI Considerations
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4. Start with
Objectives and
Strategy…
…know where you want
to go.

5. Measure the right results.
The end goal of measurement is not to collect a
bunch of metrics but to gain

6. CXOs will look for
actionable intelligence in
monetary terms…
…revenues or cost savings.
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7. What is ROI? A Numerical view of strategy
And high ROI means executive approval for your initiative. 7

8. ROI Primer
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9. 9

10. Examples of Benefits
Cost Savings
Reduce call volume
Reduce email volume
Increase agent productivity
Increase FCR
Reduce SEO cost
(Impact on
Business)
Revenue Improvements
Increase customer lifetime value,
including customer retention
Increase product ideation
Increase lead conversion rates

11. Cost Examples
People
Training
Staff
Process
Marketing of community
(Impact on
Technology
Budget) Community website design
Single sign-on
Integration to contact center applications, such as CRM
Platform subscription fee
Analytics
Reporting

12. Large Call
Center
case study
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13. Annual Results:
• Blue Chip services-
oriented company
• Revenues = $34.6b
• Customers = 100.7m
• Total Call Center reps =
30k
• Social media team =
25 members

14. Social approach - Twitter:
• Proactive tweets based
on call drivers.
• Conversational tweets to:
• Answer questions,
• Address complaints.
• Agents friendly,
approachable. Given
autonomy.

15. ROI Focus:
1. Agent deflection
2. Customer
retention revenue

16. The Customer Retention Revenue
Impact™ Model
• Financial point of view about the value of
Customer Service to the organization
• It’s based on the:
– Ability to prevent problems
– Ability to fix problems
– Customer word-of-mouth power and
– Company’s financial goals to generate and
preserve revenue

17. Most customers don’t complain before
deciding to leave!
Aggregate of company’s survey data
& call center stats:
101m Satisfied Dissatisfied
customers 85% 15%
total
Churn Risk
15m Stay Silent
customers 98% Complain
at Risk 2%
Industry averages
Saving the silent majority = $$$

18. Impact of Social Media
2% Complain 98% Stay Silent
• Most complaints are fixed • Most customers never
in the call center complain but “suffer in
silence”
• Unresolved complainers
can be highly “visible” to • Social can resolve issues,
others friends/social and influence “silent
media sufferers” who watch
what we do and say in
• Social Media team has social media
opportunity to fix 15% of
complainers (not resolved by • One to Many
Call Ctr. or who posted their issue
in the social sphere and never
called)
Revenues retained = $10.3m/ year
By saving a portion of the 15m customers

19. ROI Description
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20. ROI Description
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21. ROI Description
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22. ROI Description
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23. ROI Flowchart – Case Study
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24. ROI Formula
ROI
= (Gains - Costs)/Costs x 100
= ($10.3m - $1.5m)/($1.5m) x 100
= 583%
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25. Steps to Setting Up Social Media
Measurement Program

26. Set up business goals
1. Talk with business stakeholders to find out what
business goals they want to reach
Examples:
• Decrease customer service calls to the contact
center
• Increase sales enquiries or conversions by 10% from
social media sources within 3 months

27. Goals For Social Media
• Why are you participating in social media?
• What percent of your customer base uses which sites?
• How will social media improve the customer experience?
• How will social media help you build and reinforce your brand?
• How will you support agents in monitoring and responding to
social media?
• How will social media help you build your knowledge base?
• What protocols are in place to help agents determine when
and how they should respond?
• How will agents use the knowledge base to support
conversations?

28. Set Up Social Media Measurement Program
2. Determine what data /
measurement process you have.
• Often times companies don’t
have a measurement process for
social media.
• Sometimes the data required for
calculations may be housed in
other departments.
3. Determine what you are going to
measure:
• Set your key performance
indicators.

29. Set Up Social Media Measurement Program
4. Measure and calculate
your baseline.
5. Determine your ROI.
6. Make changes to your
measurement process,
your social media
strategy and do it
again.

30. Benefits to Social Media
Measurement Program
• Articulate the business case.
• Calculate value & ROI.
• Do more of the right things.
• Put structure around what can seem unstructured.
• Benchmark “As Is” and create a “Could Be” plan.
• Justify the plan to upper management by showing
them the business reasons.
• Track the progress, gather the right metrics .
• Assess the progress & iterate.
• Create and sustain a world-class social enterprise
brand.

31. By calculating ROI
you will gain…
• Better executive buy-in.
• Increase budget spend.
• Do more of the right
things.
• Get better decision
making- to make the right
changes to your company
so it stays competitive.
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32. Kathy Herrmann Dr. Natalie Petouhoff
Measurement & Insight, BCF UCLA & Executable Strategies
(757) 497-4811 (310) 919-8467
kherrmann@boomyourbrand.com DrNatalie@gmail.com
www.boomyourbrand.com www.drnatalienews.com