Customer Engagement: 2014 and beyond. CRM in an era of digital transformation
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1 Customer Engagement: 2014 and beyond CRM in an era of digital transformation
2 An era of digital transformation begins. As era of social customer ends.
3 Social communications revolution Impacts all institutions. Business among them.
4 Information is transformed How we create, distribute, consume information has been irrevocably changed
5 What is transpiring is momentous, nothing less than the planet wiring itself a new nervous system. Geoffrey Moore If your organization is not linked into this nervous system, you will be hard pressed to participate in the planet s future... Author, Crossing The Chasm Amidst the texting and the Twittering and Facebooking of a generation of digital natives, the fundamentals of next generation communication and collaboration are being worked out.
6 The digital customer
7 Expects immediate response. Or nearly so. Expects information available nearly instantly when searching. Increases velocity of consumerization of work. Active participants in affecting change by using social networks. Who is the digital customer? Savvy using social channels. Trusts differently than used to. Communicates with peers. 61% find peers most trusted source [Edelman 2013 Trust Barometer] Communicates with companies. Gets what they want. 20% use Twitter for customer service [Colloquy] Social. Mobile. Local. Omnichannel.
8 Communities and blog sites Fastest growing sector for internet use. 5.4% in a year. Member communities Reach more internet users than % vs 65.1%. Global Faces on Networked Places. March 2009
9
10 conversation prism [ Source: Brian Solis ]
11 Omnichannel =
12 Trust Key element of the relationship. Listen to customer needs and feedback. Trust in companies is #1 concern of public. [Edelman 2012 Trust Barometer] High quality goods and services offered. Treats employees well. Customers placed ahead of profits.
13 Perception gap between consumers and businesses. Consumers ranking Reasons for interacting with companies via social sites Discount (61%) Purchase (55%) Reviews & product rankings (53%) General information (53%) Exclusive information (52%) Learn about new products (51%) Submit opinion on current products/services (49%) Customer service (37%) Event participation (34%) Feel connected (33%) Submit ideas for new products/services (30%) Be part of a community (22%) Perception gap Businesses ranking Reasons they think consumers follow them via social sites Learn about new products (73%) General information (71%) Submit opinion on current products/services (69%) Exclusive information (68%) Reviews & product rankings (67%) Feel connected (64%) Customer service (63%) Submit ideas for new products/services (63%) Be part of a community (61%) Event participation (61%) Purchase (60%) Discount (60%) IBM Institute for Business Value: From social media to Social CRM
14 Customer intimacy is foremost on CEOs minds. 88% of all CEOs, and an outstanding 95% of Standouts, picked getting closer to the customer as the most important dimension to realize their strategy in the next 5 years. These CEOs are convinced they must not only stay connected (or reconnect) with customers, but keep on learning how to strengthen CEO Study IBM Institute for Business those Value bonds.
15 Customer engagement
16 Era of customer engagement Social channels are part of omnichannel strategy. Beyond experimentation in social media to fully integrated omnichannel perspective. 64% of companies are beyond experimental stage (integrated channels, multi-channel, crosschannel) [State of Social 2011, econsultancy] CRM is making money for companies. $5.60 on the dollar per CRM program reviewed. [Nucleus Research]
17 Customer experience is a key focus 60% of companies have senior exec in charge of customer experience. 30% of companies have 20+ employees delegated to customer experience. 84% received positive results from Voice of Customer programs. But...only 17% feel execs are willing to trade off short-term financial results for long-term customer loyalty. [2011 State of Customer Experience Management, Bruce Temkin]
18 What is it? Not Not marriage. Not advocacy. Not loyalty.
19 What is it? Not Not unidirectional. Not consistently the same level. Not determined by the amount of time or effort a customer makes.
20 What is it? Vendors/ Suppliers Proactive involvement. [Peppers & Rogers] Partners/ Channels Company External Agencies EVC Part of personal value chain intersects enterprise value chain Customer (Online engagement) is an estimate of the degree and depth of visitor interaction on the site against a clearly defined set of goals. [Eric Petersen] EVC Other Companies Friends PVC Everything Else Going On Family
21 What is it? The ongoing interactions between company and customer, offered by the company, chosen by the customer Vendors/ Suppliers Engagement levels vary. Partners/ Channels Company External Agencies Casual to intense. Infrequent to frequent. Changes moment to moment. EVC Part of PVC Intersects EVC Customers choose channels they engage in. Friends Customer Family EVC Other Companies PVC Everything Else Going On
22 What is it? But remember engagement isn t only determined by immediate interaction Vendors/ Suppliers Other factors impact interaction Partners/ Channels Company External Agencies Company has enterprise value chain. Vendors/Suppliers. Partners External agencies Employees Customers Customers have personal value chain that impacts interactions. Customer analytics important. More important, making sure that things work right. Part of personal value chain intersects enterprise value chain EVC Other Companies Friends EVC Customer PVC Everything Else Going On Family
23 Customer engagement a major concern In a survey of a large technology vendor s customers v 60 percent of respondents said customer engagement top priority AND v 84 percent believed customer engagement would overtake productivity as their company's primary driver of growth. Source: Bluewolf Consulting
24 Era of customer engagement Customers self-selects. Customer has products, services, tools and consumable experiences to sculpt the kind of experience and the level of engagement they want to have with companies. They look for highly personalized interactions. They want to feel valued. They want to know that you know them w/o talking to someone necessarily.
25 Gamification... describes a series of design principles, processes, and systems used to influence, engage and motivate individuals, groups, and communities to drive behaviors and effect desired outcomes. ~ Ray Wang, CEO Constellation Research Group
26 Gamification traits 4 traits.. A goal.. Rules.. Feedback system.. Voluntary participation. Supports engagement. Big time. Games can evoke:. Flow (in the zone). Fiero (Yes!)
27 Simple. If you register or buy in the next five minutes... Complex.. Farmville. World of Warcraft Business value. Increase advocacy and loyalty. Support positive changes in customer behavior.
28 Bad customer engagement Bad use of gamification by the otherwise popular GetGlue. I think Radiohead sucks!
29 The company side of the engagement story
30 Company concerns Experience. Making experience seamless regardless of channel. Expectations. Recognizing the customer will be expecting the best results s/he had in all channels. Costs. Knowing costs of trying to provide all that a customer wants is incredibly high. Priorities. How to prioritize the channels offered. Knowledge. What is it that we need to know about the customer (or groups) that helps us make those decisions?. Transactional. Unstructured
31 Company preparation Expectations. Meet customer expectations, if reasonable. Reactions. Don t react to everything. Relationship. Treat customer as a partner, not a client. Involve customer as extension of company (community retailing). Resource. Resource customers to sculpt their relationship with you. Value. Recognize customers and your idea of value are not the same. Important channels. Provide most important channels to customers, not necessarily all of them.
32 Needs to: Record transactions. Automate operational processes. Capture data. Analyze data. Scale appropriately. Systems of record
33 Integrate with systems of record. Systems that encourage customer involvement with company at level that customer chooses. Based on: Interactions. Collaboration. Community. Rich media. Usability. Systems of engagement Open access. Immediacy. Insight and analysis.
34 Case study giffgaff
35 Case study giffgaff At current trajectories, within five years we expect that community peer-to-peer support projects will supplement or replace Tier 1 contact center support in more than 40 percent of top 1,000 companies with a contact center. ~ Drew Kraus, VP Gartner
36 who is giffgaff? Virtual mobile network operator (VMNO). Sells SIM cards with embedded services. Brainchild of Director of Innovation at O2 in the UK. Start up, not division of O2.
37 Case study giffgaff beta launch
38 giffgaff beta launch Value proposition. Mutuality. Beta launch strategy. Target tech savvy digital natives who would talk. Beta launch issues. No funds for traditional media. People-powered mutuality w/o people!
39 Created tool hire {03} Top 5 videos win 5,000 each. {02} Upload the video to YouTube - free calls 1 year. {01} Use the Tool to make video. giffgaff beta launch
40 Gamification = Engagement giffgaff beta launch
41 Results of beta launch Videos created: 156 YouTube video views: 615,116 ToolHire site visits: 43,301 ToolHire site page views: 151,230 Facebook fans: 6,000 Primetime TV pickup reach: 1.2 million giffgaff is on the map. giffgaff beta launch
42 Case study giffgaff full launch
43 Community provides customer service. giffgaff the company Implement customer ideas (112 by end of 2010) incl. pricing. Provide advocacy program Points for recruitment, , activated SIM cards
44 giffgaff community is vibrant with over 1 million interactions
45 giffgaff customers ask other customers for answers 50% of the time Source: Capgemini
46 giffgaff customers are actually happy with giffgaff unlike other U.S. based telco customers with their carriers (e.g. Verizon) Source: Capgemini
47 Communications revolution. The communications revolution has transformed business. Engagement at the ready. Customer engagement is at the center of customer facing programs and strategies. Digital customer. We have a different kind of customer - a digital customer - but s/he is still a customer. In summary Experience and partners. Our customers should be subjects of an experience and partners, rather than objects of a sale and clients. Omnichannel strategy. In order to acquire and retain customers, we need to have a omnichannel strategy - with selected channels. Golden rule. The key is to provide the products, services, tools and consumable experiences that the customer needs to sculpt their own relationship with you. Systems of engagement. To do so, since we have transformed how we communicate, we need to enhance our current systems of record with systems of engagement.
48 Paul Greenberg 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 Blog. the56group.typepad.com Social CRM: The Conversation. blogs.zdnet.com/crm . Twitter. twitter.com/pgreenbe Facebook. facebook.com/pgreenbe Google Voice
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