Week 12

radian 6 social media monitoring (& sales force??)

$350,000,000 "Say a consumer tweets that she hates her cell phone service provider. This is what a Radian6-Chatter-Salesforce.com combo could do, says Sheryl Kingstone, a Yankee Group analyst: First the company would actually know that the tweet was sent. It would then decide whether to reach out to the customer or wait to hear from her or dismiss her entirely. The response will be dependent upon whether or not she is an "influencer" and, hopefully, has a legitimate gripe If it does decide to respond, it will then use the platform to decide what is the right response to make her happy Only bits and pieces of this is possible today and usually after a massive investment or internal realignment. Getting to this point won't necessarily be easy, Kingstone also says. "It will take an integration of Radian6's listening platform, with Chatter and with Salesforce.com's 360 degree view of the customer. But it is feasible" (examples on pg 18 of slideshow)

what is CRM?

*Customer relationship management:* It implies a customer-focused approach to business *Why use eCRM (electronic customer relationship management)?* - Because customers are communicating online - Meet and help them on their channel of choice - Their voices can be heard in blogs, forums and other social media Technology can allow the online business to interact personally with a web visitor

What is the difference between customer- centric and customer driven?

*Customer-centric organisations* put the customer at the centre of their planning and delivery *Customer driven* organisations provide tools to customers to actually drive the business *Customers* perform tasks which the organisation would traditionally take on

striking a balance between your customers and your organization

*typical customer wants:* • Customers want to choose their service and communications channels (in-person, phone, self-service, email, fax, • chat, etc.) • Customers want you to know them and their preferences • Customers want fast and accurate resolution to their questions • Customers want personalized interactions, offers, and promotions • Customers want a seamless experience *typical customer needs:* • Higher customer satisfaction • Increased customers retention • Increased customer loyalty • Profitable customers • Lower cost of service • Maximization of lifetime value of a customer • Higher employee satisfaction • Return on investment

Shift Happened:

- "Lowest price" and "big box" efficiencies supplanted personal accountability and service... - Outsourced both production and the customer relationship to overseas... - Internet efficiencies has since led to outsourcing the very customer relationship to the machines - Economic efficiencies of email supplanted direct mail, and since has become the very center of CRM (pg 13 of slideshow)

customer touchpoints

- All the points at which brands touch consumers' lives during their relationship - Speak with one voice across touchpoints - Deliver a rewarding experience every time - Customer initiated touchpoints - Brand initiated touchpoints

How can you use CRM to inform your marketing tactics?

- Build CRM into every digital marketing channel! In email marketing: • Gain permission and respect privacy • Segment databases to tailor content Remember this is often the first point of contact for a customer service related message In online advertising: • Speak to customers needs and present solutions • Be wary of being intrusive

customer touchpoints phases

- Pre-purchase or pre-usage - Purchase or usage - Post-purchase or usage

In Summary: CRM beyond eMail

- Salesforce Automation uses CRM software to manage sales cycles and to collect customer sales data to track leads, schedule transactions and communications with potential and existing customers to generate reporting - Today's digital media, personal data, social, live chat, mobile connectivity, and internet video are uniquely positioned to deliver more than just economic efficiencies on spam - but a return to personal service and relationship - Digital can bring the relationship back

use the data collected online to build meaningful profiles of potential customers

- Use web analytics tools to gather information such as search keywords used to reach a website and navigation paths used within the website - Use bespoke CRM software to centralise this data for use across all departments - All employees will have a 360 degree view of the customer

Broadly speaking, retail has gone from true customer relationships...

...towards "Customer Relationship Management"

Strategic Planning Assumptions

1. By 2020, augmented analytics will be a dominant driver of new purchases of analytics and business intelligence, data science and machine learning platforms, and embedded analytics 2. 2021,natural language processing and conversational analytics will boost analytics and business intelligence adoption from 35% of employees to over 50%, including new classes of users, particularly front-office

5 best practices for exceeding customer expectations

1. Listen to your customer through customer surveys and focus groups 2. Set aggressive, but realistic goals and metrics to push people to stretch 3. Use CRM technology to innovate how to best serve your customers 4. Transform business processes 5. Capture and apply lessons learned

proactive approach to exceeding customer expectations

1. understand market and customer expectations 2. segment customers based on multi-dimensional criteria 3. define customer service strategies and goals based on customer segments 4. define core business processes that support service strategies 5. develop metrics which are quantifiable and actionable 6. build organizational support and capability 7. implement strategies and action plans 8. measure, analyze, and interpret info

pareto principle

80% of profits come from 20% of customers, while 20% of customers are responsible for 80% of problems relating to service

understanding customers

A successful relationship with a customer is based on meeting or even exceeding their needs. It is in determining what problems the customer has, and in providing solutions, sometimes before the problem occurs They are the most important part of a business. Implementing this into business decisions and strategy is a challenge • Meeting and exceeding customer needs • Embracing customer-driven processes • The customer can often drive the business

AMEX OPENForum

An idea exchange for small business owners (examples on pg 17 of slideshow) • Marketing as a complimentary service commitment • Social in line with the small businessperson needs: utilities, aggregation, content, leverages LinkedIn, and Twitter • Retains and welcomes new cardholders in thru unique and valuable community resource • Database of insights about customer needs • Roughly 350% site growth year over year, more than 8,100 Twitter followers and over 10,000 OPEN cardmembers with profiles on OPENForum.com

The power of CRM for marketing

Analyzing CRM data can aid marketing initiatives in these ways: • Campaign analysis • Personalization • Event monitoring • Predictive modelling • Improved customer segmentation

what is CRM all about?

Building and maintaining customer relationships in a digital world • A personable company is more likely to attract and retain customers • Customer-focused approach to business based on fostering long-term, meaningful relationships • CRM is not about immediate profit. It's about the lifetime value of a customer

the problem(s)/opportunity of our digital age...

CRM - customer relationship marketing all too often translates a dubious postal tchotchke... ... or email spam Marketers must bring "the relationship" back into customer relationship management - at all phases of the shopping funnel and at all touchpoints And today's range of digital toolsets beyond email can begin to return some of the warmth, humanity, and "relationship" back to CRM (pg 14 & 15 of slideshow)

CRM loyalty programs

Develop and maintain customer relationships over time rewarding them for every interaction: • Discovery Vitality aims to keep customers healthy by rewarding them for health-related behaviors • This reduces the burden of ill-heath on the medical aid

CRM perspectives

Effective CRM can create a powerful new marketing and referral force for a company Perspectives to look at CRM from: • Marketing • Cost • Sales • Service

why CRM works

Effective CRM promises: • Increased revenue and profitability • Improved customer satisfaction and loyalty • Improved service delivery and operational efficiencies • Decreased acquisition costs

Harley Owners Group

Elevating ownership to a lifestyle and community (examples on pg 17 of slideshow)

analyzing data

Everything is tracked and recorded online • The customer acquisition source can be recorded and analyzed against sales data. This leads to a very accurate return on investment (ROI) calculation and indicates where CRM and marketing efforts should be focused

service based on customer segmentation lifecycle

Examples of customer segmentations include: • Age, gender, income, family status, special interests, etc., for individuals • Revenues or budget, number of employees, number of locations, etc. • Geography: local, regional, national, world-wide • Preference for self-service, full-service, 24/7 access, etc. • Interaction and/or purchase history

best buy twelpforce

Extending the human touch (examples on pg 16 of slideshow)

FUJI XEROX does it right

Fuji Xerox Thailand uses a traditional CRM system to improve their sales process • Problems to be solved: • Human error in recording in customer details • Individual records being kept within different divisions

Zappos

Humanizing the process (examples on pg 16 of slideshow)

The central role of data

Insights from data can enable a company to create real value for the customer and gain true loyalty • If you action changes, customers feel increased ownership of the brand • The 80/20 rule • Collect the right data

CRM and Online Reputation Management

ORM means knowing what is being said about your organization and leading the conversation • Brands can rate and sort mentions based on sentiment • This gives insight into the community feeling towards the brand, guiding further action

types of CRM

Operational CRM: the obvious channels that relate to customers - the front end Analytical CRM: analysing data to determine information about customer that can inform decisions

Customer-centric vs. customer-driven

Placing the customer at the center of an organization's business planning and execution is different to having customers drive the direction of a business • Savvy organizations can provide tools to customers to drive their business • Passing on tasks to customers that might ordinarily have been performed by the organization

Social CRM and support

Social customers increasingly turn to social media channels for support • Brands need to respond quickly and transparently • Choose the right social media channels for the brand • Keep all customer data at hand • Escalate appropriately

Comcastcares

Taking it to the tweets (examples on pg 16 of slideshow)

integration

The key to effective use of technology in CRM is integration Ensure that: • All channels can be tracked • Information is usable to organization • Know where your customers come from and what they buy

customer loyalty

The main objective of any CRM strategy should be to gain customer loyalty over the long term Acquire and retain customers who: • Have a projected lifetime value • Buy a variety of things repeatedly • Share • Provide honest feedback • Collaborate

Implementing a CRM strategy

The steps involved in implementing a CRM strategy: 1. Conduct a business needs analysis 2. Understand customer needs 3. Set objectives and measurements of success 4. Determine how you will implement CRM 5. Choose the right tools

Where and how to gather CRM data

There are data gathering opportunities from a variety of touchpoints: • Traditional CRM system data • Data mining • Analytics data • Social media monitoring data Traditional CRM system data: data you could collect: • Demographic details on potential leads, current leads and contacts, such as age, gender, income, etc. • Quotes, sales, purchase orders and invoices (transactional data) • Psychographic data on contacts such as customer values, attitudes, interests, etc. • Service and support records • Customer reviews or satisfaction surveys • Web registration data • Shipping and fulfilment dates, such as when orders were shipped and delivered *Data mining:* • Data mining involves analyzing data to discover patterns or connections • Used by businesses to better understand customers and their behavior, and then use this data to make more informed business decisions *Analytics data:* • Captured through specialized analytics software packages • Web analytics should always look at the various campaigns being run *Social media monitoring data:* • Examples of social media metrics important to monitor, measure and analyze: • Quantitative data about number of fans and interactions, to qualitative data about the sentiment towards your brand in the social space

A new CRM system

They implemented a software solution that enables businesses to manage all facets of their organization from development to manufacturing and sales Info they inputted: • The industry - How long the sales cycle is - The qualifying criteria for a sale - The nature of the sales and how big they are - How many team members are involved in the process - What experience they have in their field - How much managers need to be involved

what happened?

Through the new system, the sales team was empowered with information. This meant: • More efficient sales management • Speedier quotations • Improved approvals processes

collaborative CRM

Use collaborative CRM to combine customer data across all facets of your company e.g. Queries submitted to tech support can inform website updates and product development How do you put a value on CRM? Look at it from: •A marketing perspective •A sales perspective •A service perspective - Determine the value of a customer relationship to a business - Remember that all CRM goals must also be in line with business goals relationship value = revenue generated by customer - cost of acquiring and maintaining customer relationship

Intentional eMail

a holistic email marketing strategy aimed at increasing the long-term return from email subscribers *current state of email:* focus: short term revenue gains metrics: opens, clicks, bounces primary technology: email service provider frequency: sent on a regular campaign schedule *intentional email:* focus: long term relationships metrics: customer lifetime value & value of an email address primary technology: email service provider integrated with other marketing and analytic systems (ex: web analytics and lead mgmt systems) frequency: varies based on customer value, preferences, and past behavior & triggered off of customer or environmental activity

Customer Relationship Management

fostering real relationships with customers

Target Take Charge of Education and General Mills Box Tops for Education

fueling loyalty through what matters most to purchasers

influence of peer-driven media

graph on pg 10 of slideshow

Customer Relationship Management (CRM)

has existed since people first started selling things. The first shopkeepers who stopped to chat with their customers, who remembered their names, and perhaps gave them a small 'freebie' for continually using their services, was practicing a form of customer relationship marketing by making customers feel special. They were also probably seeing the favorable impact on their bottom line

CRM can be complicated in practice because...

it is such a high stakes game But in reality, it has always been about one simple thing - "the customer is always right." see pg 6 on slideshow

Amazon does email right...

post-purchase personalization predicts your next needs

magic quadrant for analytics and business intelligence platforms

see pg 11 of slideshow for graph

examples of customer expectations

• "Our customers expect to get to an agent as quickly as possible. Once they are connected, they expect to be treated professionally and courteously and have their question answered the first time around." Elliot Cohen Assistant Director of Technology and Support Canon Information Technology Services (ITS) • "When our customers call, they are expecting to get an answer to their question right then and most of the time that happens." Sherrie Southern Director of Financial Systems State of Georgia

Think long-term - take a view of email by using historical email data to plan future campaigns

• *Make customer value the primary email metric:* When effectively balancing user needs with business goals, email programs can actually increase customer value by deepening subscriber engagement or boosting shopping cart size or purchase frequency. Most marketers obsess over opens and clicks instead of customer lifetime value. • *Integrate email with other channels:* Coordinating email with multichannel databases is worth the headache. Shopping cart abandonment programs that merge email, Web analytics, and e-commerce data can result in conversion increases of more than 100%. • *Map out a long-term customer contact strategy:* Replace ad hoc email campaigns with conversations — series of messages that work collectively to graduate a customer toward a desired end conversion. Plan a series of forward-looking conversations — which are automated and multichannel and include outlets for customer feedback — that collectively will deepen a customer's relationship over time

Some industries churn faster than others - but why do customers leave in the first place?

• 68% leave because they are upset with the treatment they've received (Customer Service) • 14% are dissatisfied with the product or service • 9% begin doing business with the competition • 5% seek alternatives or develop other business relationships • 3% move away • 1%die

Letting these customers walk is leaving money and opportunity on the table

• Acquiring new customers can cost five times more than satisfying and retaining current customers • A 2% increase in customer retention has the same effect as decreasing costs by 10% • Depending on the industry, reducing your customer defection rate by 5% can increase your profitability by 25 to 125% • Customer profitability tends to increase over the life of a retained customer

Zappos is fueling loyalty through transparency and trust

• Brings customer satisfaction and "People First" approach to the core of the Zappos business model, not a CRM aftermarket strategy • Ensure that employees are happy. Happy employees means happy customers • Acknowledges that Zappos product is not other brands' shoes but super service is differentiator • Social Media is the new CRM channel, not emails and post- purchase surveys • Achieved annual revenue of over one billion in 2009, over 1.7 million raving fans on Twitter

CRM is a broad term - but there are a few commonalities in how brands talk about the discipline

• CRM = Customer Relationship Management • eCRM = Electronic Customer Relationship Management • Lead = A Potential Customer • Churn Rate = The number of customers who leave your brand during a given time period relationship value = revenue generated by customer - cost of acquiring and maintaining customer relationship

Customer Service Business Processes

• Customer or account inquiries - process for handling inbound questions and requests • Problem resolution - process for how problems are captured, escalated, resolved, and tracked • Service dispatch - process for sending resources to fix a problem • Service tracking - process for track the progress of the status of service requests • Customer analysis - process for analyzing customer information and behavior • Customer communications and feedback - process for communicating with and collecting data from customers

customer touchpoints phases: post- purchase or usage

• Develop a relationship • Maximize the customer experience • Deliver on the brand promise • Increase brand loyalty • Remain top of mind • Invite repeat purchases

customer touchpoints phases: Pre-purchase or pre-usage

• Gain customers • Heighten brand awareness • Shape brand perceptions - to highlight the benefits it offers over competitors • Indicate how the brand provides value and fulfils the needs and wants of consumers • Educate consumers about products and services

Gary Vaynerchuk made wine accessible to the average consumer and fuels the idea that each person was getting "insider knowledge"

• In February of 2006, Gary launched Wine Library TV (+80,000 viewers), a daily video blog about wine, bringing the store consult public to the social web • Unpretentious approach to understanding wine, a topic many people previously felt was inaccessible • Facebook and Twitter - Gary became one of the first to reach Facebook's friend limit and accumulated more than 800,000 followers on Twitter • $50 million company in 2005 (no longer publicly reports sales)

customer touchpoints phases: purchase or usage

• Instill confidence • Deliver value • Reinforce the purchase decision • Heighten brand perceptions

Where can CRM be implemented?

• Marketing • Sales • Service and service fulfilment • Services invoked by the customer

In Summary: CRM all too often driving at short-term

• Outsourcing of the product and the service relationship has removed the vital customer relationships that once fueled commerce • Now, email often dominates the CRM interaction, and has ushered in "standards" that are not necessarily customer- friendly - spam • Demands a more holistic email approach - embracing user needs • Campaigns to conversations - mapping a customer contact strategy - Amazon best-in-class Deepen customer relationship over time

Target and General Mills give back in a time when education giving is in decline 3.6%

• Over $24MM in funding to 85,439 schools across the country through the fall 2010 payouts of Target's Take Charge of Education program • Since its inception in 1997, donated $298,296,638 to more than 125,000 schools nationwide and credit card purchase becomes a community social mission • 3.6MM joined Box Tops for Education program, over 335K "Likes" on Facebook • Over $350 million mark, and a disconnected clipping activity becomes a passionate, connected community • Harnesses the social power and influence of concerned parents at local levels • Elevates the value of commodity staples

examples of customer service metrics

• Overall satisfaction • Percentage of calls resolved on first call/first resolution • Time on calls, hold/wait times • Abandonment rates • Average resolution time • Pass through rates • Fulfillment time • Customized support (such as self- service • Channel usage (e.g., self service via the web, phone, etc.) • Number of support calls by same customer • Increase in renewal rates/incremental purchases/community support • Cross-sells and up-sells • Decrease in call volume • Cost to serve • Customer lifetime value • Customer profitability • Percent of inquires generating leads • Employee deployment and utilization • Cost of operations, order accuracy, order placement, lead time, cost to replace an order, and support an order • Number of outstanding calls • Percentage of calls resolved via self- service • Percentage of customers meeting target profitability goals • Customer value • Employee satisfaction • Employee morale • Training time • Employee compensation • Employee turnover • Cost per call • Cost per channel (e.g. self-service, email, etc.) • Cost of hiring and training a new customer service employee • Incremental revenue

Harley Owners Group fuels the myth of Harley life and style by enabling real-world community

• Post-purchase life and style • CRM as Brotherhood • Digital is the connective tissue of community and many national and local calendar

Best Buy is scaling their Blue Shirt expertise well beyond the store

• Recognizes and embraces a new customer attitude that avoids cumbersome website question forms and emails and 800 numbers • Like Zappos, recognizes that the product selection is largely commodity - super service is an ownable differentiator • Answers thousands of customer questions, in real time, and landed Best Buy in the Top 25 Most Social Brands • Driven overall customer complaints down by 20%

Amazon remembers and sells exactly what you'll want next...

• Series of confirmations, status reports, Amazon doesn't wait for you to come back to the site to push recommendations at you. 10 days post-purchase • Full refund if price drops in 30 days post- purchase • Solicits your reviews of products and e-retailer partners, helps other users as well as accrues more data about you and tightens future recommendations [ Alibaba sets new Singles Day record with more than $30.8 billion in sales in 24 hours -2018 pg 14 of slideshow]

Social CRM

• Social media should be part of CRM strategy, is a touchpoint and can drive CRM On social channels customers can: • Easily share experiences • Make decisions based on social trust • Take part in two way communication

metrics: begin with the end in mind

• They are part of a wider performance management initiative • The frequency of changes in the business necessitates changing which metrics may be important at any given time (as a result, they need to be fresh relevant and continually updated) • Their measurement requires perseverance, patience and process, and is based on growing insight over time • Organizational barriers are overcome to enable them to become ingrained in the enterprise culture

Frank at Comcast used social media to talk "face-to- face" again

• Used digital media to meet problems where they arise, not waiting for the complaint form to be officially filed • Addressing users by name and solving their problems (and softening their brand rage) in a public forum • Monitoring over 2,000 tweets a day, reach out to 600 - 1,000 people, and have conversations with about 200 - 300 a day • Now a fully dedicated service team, recommitted to customer service innovation

Social CRM is valuable

• engaging to customer service requests on social = 20-40% revenue per customer • implementing a social customer service program can increase your annual customer satisfaction scores nearly 20% • 92% retention among companies with a well-crafted social customer service approach • and have 21% increase year over year increase in positive social media mentions • one social customer service interaction costs around $1 vs one call center interaction costs nearly $6

Even after decades of experience with the medium, the cheap immediacy of email still fuels bad habits....

• over-contacting • disregarding response data • lack of testing — that they would never employ in other direct marketing efforts

stats on poor customer service cost

• yearly, US companies that offer poor customer service are losing an estimated $41 billion • increase 15% in churn rate for existing customers, when companies fall to respond to customers via social media • 45% of retailers are ignoring customer inquiries on Twitter because they don't have the resources to manage it, despite the fact 88% have a Twitter presence