CUSTOMER ENGAGEMENT COMMUNITIES

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1 CUSTOMER ENGAGEMENT COMMUNITIES

2 Why did Google buy nest?

3 Iowa State B.S. in Marketing & Information Systems 7 years at Carlson Marketing in Loyalty IT Eric Scheel Chief Technology Officer CTO of Magnet 360 a Leading Partner of Salesforce.com eric.scheel@magnet360.com

4 OUR MANTRA

5 WHO WE ARE MINNEAPOLIS NEW YORK CHICAGO LOS ANGELES

6 ENGAGEMENT

7 TYPES OF COMMUNITIES Employee Customer (B2C) Partner (B2B) Innovation Self-service Engagement

8 MYSTARBUCKSIDEA.COM One of the earliest branded communities on Force.com. Key element in turnaround at Starbucks over the last five years.» 150,000 ideas submitted» 2 million votes» 250+ ideas were implemented

9 THE HOME DEPOT - DRIVING INTERNAL INNOVATION Large public facing community Customers, employees and experts community Advocate Engagement Search Engine Optimization of content

10 THE HOME DEPOT - DRIVING INTERNAL INNOVATION 20,000 ideas in the first month Each month, one employee is recognized and rewarded by management for idea submission Improved employee loyalty through visibility into ideas and action

11 GENERAL MILLS INNOVATION NETWORK Key partner engagement tool Post challenges and briefs for innovation opportunities Create direct connection between General Mills and partners Connected to internal resources and processes

12 GENERAL MILLS INNOVATION NETWORK

13 MEDTRONIC COMMUNITY Connecting Doctors and Nurses with Medtronic Experts Integration with Live event and streaming video Topic discussions pre and post event Legal and Regulatory Workflow

14 MEDTRONIC -

15 WHAT ARE COMMUNITIES

16 OPPORTUNITY & CHALLENGE How do we engage in a conversation and channel customer/partner energy? How do we expose our wealth of information? How do we take action and deliver measurable business impact?

17 CURRENT STATE (PORTALS & MESSAGE BOARDS) Legacy Portals One-to-one Social Point Solutions Many-to-many -OR- /// Business Data in Silos /// Not Social /// Poor Mobile Experience /// No Business Data /// All Discussion Focused /// Lack Structured Processes

18 COMMUNITIES Current Portals Business Process Integration Branding & Customization Social Collaboration Mobile Access Communities Extends the Value of Portals and creates two-way communication

19 HOW DOES A COMMUNITY HELP DIFFERENTIATE? Collaboration News Feed Groups (Public & Private) Files Global Search Branded Public & Private Pages Identity Providers (SSO & Social Sign-on) Mobile Interface API Multi-Community Chatter Branding Data Sharing Model Conversation Sharing Model

20 HONEYWELL

21 HONEYWELL

22 Contractor Pro Loyalty Application Complex points processing Engagement with 25,000 Contractors

23 CONNECTED

24 Honeywell Dealer Community - New Offering to Dealers - Subscription Model - Connected Homes - Proactive Service Contracts - Ads, Marketing, Leads - Customer Happiness + Loyalty Program

25 @ericscheel

26 Honeywell Lyric

27 ENGAGEMENT EXPERTISE

28 WHY

29 WHY COMMUNITIES Increase Sales Create value added services Expand customer mindshare Increase collaboration & reduce friction in the sales process Better Service Customer Self service case deflection Service reinvention be like Amazon Reduce cost & improve experience Build Advocates Defend & enhance the brand Build customer & partner advocates Conversation is happening, companies need to join

30 DRIVING COMMUNITIES Increase sales: Engaged customers in communities spend 19% more (University of Michigan 2013) 55% of consumers would pay more for a better customer experience GE found engagement online resulted in a 15% increase in sales Decrease costs: 10% case deflection providing $2.5M in savings Support can handle 3.8 issues simultaneously online vs. 1.2 over the phone. 42% of service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces, and multiple applications Build brand advocates (get closer to your customer/partner): 78% of community users 'research a problem' as part of their buying lifecycle 24x more conversations happen in a community than on social channels 11% share to other social networks via community (Facebook, Twitter, etc)

31 COLLABORATION VALUE CHAIN

32 COMMUNITY LIFE CYCLE

33 Key Learnings Great content trumps slick design Internet time is much shorter than company time. Even so, people understand some things take time. In the meantime, keep engaging, the written equivalent of a head nod goes a long ways. Customers are willing to donate a ton of time to your company A few negative leaders can tank an good conversation. Nip them in the bud. Conversations can turn quickly. A community site is a good place to add context complete and accurate information to the ongoing public discussions. A successful community like this requires a significant philosophical commitment from many levels of the company.

34 Keys to Success Brand Promise Target Audience Expertise Feedback Integration Be authentic Identify audience, goals and needs Users want access to SME Listen and Learn from feedback & metrics Integrate all BUs, efforts, systems Bring your Core Values to life Open or closed? Transparency is key Iterative approach Sales, Support, Marketing, Product Dev Establish a Bill of Rights Start small, with big principles Fine line with sensitive information Prepare for negative feedback (have thick skin) Internal input is as important as external input

35 COMMUNITY MATURITY MODEL 6 Converged! Community embedded into products, services and processes" Business Impact" High! 1 Planning! Listen & Learn" Develop business case" Internal cultural alignment " 2 Presence! Stake your claim " Direct partner and customer engagement" Create feedback loops" 3 Engagement! Dialog Deepens" Internal Users Engage (Sales, Support, Product Development, Marketing) " Profile / Identity aggregation" 4 Formalized! Organized at scale" Global coordination" Governance " Optimized at scale" 5 Strategic! Across enterprise" Employee, partner and customer" Consolidation of sites and channels" Low! Limited! Functionality"

36 THANK YOU

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