Social Networking and the Future of CRM

Transcription

1 Social Networking and the Future of CRM Ed Thompson Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via Gartner is a registered trademark of Gartner, Inc. or its affiliates.

2 What Is Socialization of IT? Socialization of IT: The increasing willingness to use technology to collaborate with others in a virtual environment. It has enabled the growth of global communities with unprecedented reach and influence, often without easily identifiable leaders. Understanding the power of these communities, the multiple personas of their members, their expectations, their aspirations and how to interact with them will become essential skills for companies in the 21st century.

3 Key Issues 1. What are the drivers fueling the growth of the socialization of IT? 2. How can companies develop customer relationships by deploying the right engagement technologies to fit the right business purpose? 3. How will technology change to support the socialization of IT?

4 Socialization Is Fulfilling an Innate Need To fulfill his innate hierarchy of needs Virtual Web 2.0 Self- Actualization Esteem Love/Belonging Personal growth and fulfillment Morality, creativity, spontaneity, problem solving Need to be respected, to have self-respect and to respect others Friendship, intimacy, support groups Web 1.0 Safety Needs Security of body, employment, health and property Biological and Physiological Needs Food, clothing, shelter Source: Gartner and "A Theory of Human Motivation," A.H. Maslow

5 Shift Toward Socialization for Engagement and Accountability Addressable Branding/Advertising Display Advertising Podcasts Videocasts Virtual Worlds In-Game Advertising Community Marketing Blogs Customer Feedback Message Boards Customer-Driven Content WOM, Referrals Contextual Marketing Search Marketing Local Marketing (GPS) RSS Marketing Preference Mgmt. Event-Triggered/Inbound Transactional Marketing Online Dialogue Cross-Sell, Upsell Gift Registry Marketing Catalog Arrows indicate increase, decrease or maintaining of investments during the next three to five years.

6 Three Realms of Social Software Intranet (Private) Extranet (Semiprivate) Internet (Public) Who Uses It Workers Executives Board Partners Suppliers Key customers Public Ad hoc customers Why They Use It Role in Channel Strategy Opportunity Risk Collaboration Communication Observation Efficiency Learning Veracity of data Inability to leverage content and networks created by social network-aware employees Failure to experiment to determine highest-value internal applications Self-service Collaboration Phone/cable system Speed of collaboration Customer self-service service Collaborative design Manage supply/demand for applications Failure to monitor and experiment to determine highest-value applications Information gathering Learning Product validation Trust validation Failure to use feedback to enhance brand and identify brand faults Anytime, Anyplace: The Interactive Enterprise January 2008

7 Socialization Initiatives: Five Top Questions to Start With 1. What is it? - Many definitions, major hype 2. Purpose - Determining how businesses will make money 3. Applications - What type of social application for which purpose 4. Ownership - Determining levels of control to the community 5. Manageable - How the technology is deployed and managed Strategic imperative: The biggest challenge by far will be an overall, balanced purpose. Every successful socialization project will need a mutual purpose, from the customer side (motivation for participating) and from the company side (actual measurable business need). Many communities fail from an imbalance or a complete lack of purpose.

8 Key Issues 1. What are the drivers fueling the growth of the socialization of IT? 2. How can companies develop customer relationships by deploying the right engagement technologies to fit the right business purpose? 3. How will technology change to support the socialization of IT?

9 Defining Social Applications Social applications encourage, capture and share data among users, ceding levels of control to a community by user-controlled organization mechanisms. These applications share characteristics, such as open APIs, service-oriented design, and the ability to upload data and media.

10 Social Applications Are Relevant to Each Stage of the Customer's Buying Process Customer Buying Process 1. Need/Want Recognition 2. Information Search 3. Evaluation 4. Purchase Social Opportunity Engagement Context Trust Transactions 5. Post-Purchase Satisfaction

11 Virtual Worlds: Social Need/Want Recognition 1. Need/Want Recognition 2. Information Search 3. Evaluation 4. Purchase 5. Post-Purchase Problem: Establish and increase brand awareness for future segments of customers. Objective: Connect with hard-to-reach, younger demographics and help them begin aligning future needs with banking products, services and money management. Approach: Wells Fargo bought virtual real estate (Stagecoach Island) within the MORPG Second Life, complete with virtual money, bank, mall and recreational services. Results: Visitors spend more than an hour per session. Second Life members spend 35 hours a week on average. The world attracts a diverse audience 43% female. Source: Wells Fargo

12 Content Management: Social Information Search 1. Need/Want Recognition 2. Information Search 3. Evaluation 4. Purchase 5. Post-Purchase Challenge: Make The New York Times Web site more relevant to readers' interests. Objective: Cater to the needs of a readership that wants more control over the digital experience (e.g., access to social media features and content outside the nytimes.com Web site), while maintaining the authority of The New York Times brand. Approach: "Open up" the brand to desired content through prominent links to the most popular and blogged articles; allow readers to create personalized pages (MyTimes) with RSS feeds from the Times and other sites. Results: Unique visitors have increased from 12.1 million in January 2006 to nearly 19 million in March 2008; site is a winner of a Webby for home page design. Since site was redesigned in 2006, the "most popular" features have been emulated throughout the industry. Source: New York Times

13 Product Reviews and E-Commerce: Social Evaluation and Purchase 1. Need/Want Recognition 2. Information Search 3. Evaluation 4. Purchase 5. Post-Purchase More than 130,000 customer product reviews More than 55,000 four-sided product pictures Highly detailed product specifications At least 13,000 company testimonials More than 550 manufacturer links More than 550 expert opinion articles At least 1,000 item intelligence/ rich media Source: Newegg.com

14 Community Forums: Social Post Purchase 1. Need/Want Recognition 2. Information Search 3. Evaluation 4. Purchase 5. Post-Purchase

15 Five Techniques for Successful Community Management Best Practice Balance Risk and Reward Relinquish Control With Ground Rules Solicit Feedback Enable Company Advocates Assign a Community Advocate Company Benefits Access to Data Develop Trust Promote Engagement Foster Loyalty Customer Voice

16 Key Issues 1. What are the drivers fueling the growth of the socialization of IT? 2. How can companies develop customer relationships by deploying the right engagement technologies to fit the right business purpose? 3. How will technology change to support the socialization of IT?

17 The Purpose and Level of Engagement Will Determine Technology Contributors (3% to 10%) Creators (0% to 3%) "I want to be a part of this." "I want to own this." Level of Customer Engagement Review a product Answer a question Contribute to the community The Lurkers (80%+) "I'll reap the rewards." Click, transact Read product reviews Read blog/message boards Establish a community Create blog/podcast Upload video content The Opportunists (10% - 20%) "Since I'm here " Provide purchase feedback Vote Ask a question Forward to others Level of Company Engagement

18 The Purpose and Level of Engagement Will Determine Technology Contributors (3% to 10%) Creators (0% to 3%) "I want to be a part of this." "I want to own this." Level of Customer Engagement The Lurkers (80%+) "I'll reap the rewards." The Opportunists (10% - 20%) "Since I'm here " Level of Company Engagement

19 Social Reputation Technologies Will Be Critical: Dynamics of a Reputation Engine Recognition Authority and Value Ranking Community Voting Guidelines Source: Fixya.com

20 Innovative CRM Vendors: New Focus, New Model and Largely Disposable Newcomers Will Plug Gaps Aware Search Secret Agents Personal Tools and Avatars Message Boards Customer-Driven Content Referrals, Word of Mouth Feedback Ad Mgmt. Campaign Mgmt. Enterprise Market Research Feedback Mgmt. Social Network Analysis Field Service Customer Service and Support Support Catalogs Intelligent Device Management/Monitoring, Self-Healing Systems Knowledge Management Social Support Share Experience Select Location-Based Comparison Shopping Product Config. Upgrade/Extend Order If Traditionalists Leave Gaps Warranty Mgmt. Contract Mgmt. Marketing Resource Mgmt. Upsell Analytics Customer Data Integration Partner Mgmt. Sales Automation Order Mgmt Ė-Commerce E-Learning WFO Use/Consume Performance Mgmt. Service Adoption Mgmt. Pay Web 2.0 E-Commerce Learn Set Up Registration Activation Service Communities Vlog Wikis Large Vendor Specialty

21 Today: Social Markets in Transition Do Not Expect One Solution Online Gaming Ad Networks Web Analytics CRM Marketing E- Commerce Search Engines Ad Agencies Marketing Service Providers E-Service Community Offline Service Technology

22 Recommendations Every successful socialization project will need mutual purpose, from the customer side (motivation for participating) and from the company side (measurable business need). When planning to harness socialization technologies, align with the customer's buying process. When planning to host, create or contribute to a community, consider the four types of community engagement, and plan to provide social applications for all four. Use reputation mechanisms for creators and contributors, for ranking quality input and differentiating from other input. Encourage participation (rewards), and provide a content filter for the community. Plan on disposable applications for innovation and to meet social application needs. Do not expect one solution.

23 Social Networking and the Future of CRM Ed Thompson Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via Gartner is a registered trademark of Gartner, Inc. or its affiliates.

24 Social Networking and the Future of CRM Ed Thompson Notes accompany this presentation. Please select Notes Page view. These materials can be reproduced only with written approval from Gartner. Such approvals must be requested via Gartner is a registered trademark of Gartner, Inc. or its affiliates.