Paul Greenberg - Welcome to the Era of Customer Engagement

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2012: Customer Engagement TimeSocial CRM, Social Business Matures


As the Era of the Social Customer Ends

3The Social Customer

Source: Brian Solis4

The Social Customer

This has been a SOCIALcommunications revolution that

impacts all institutions business among them.


The Social Customer

The Social Customer

What is transpiring is momentous, nothing less than the planet wiring itself a new nervous system. If your organization is not linked into this nervous system, you will be hard pressed to participate in the planets future. 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. --Geoffrey Moore, author, Crossing the


7The Social Customer

The Social Customer

Using Social NetworksNielsen Online research Global Faces on Networked Places (March 2009):

Fastest growing sector for Internet use is communities and blog sites (5.4% in a year)Member communities reach more Internet users (66.8%) than email (65.1%)

Who is the Social Customer? Customer who is savvy in use of social

channels: Trusts differently than they used to Communicates with peers

65% find peers most trusted source (Edelman 2012 Trust Barometer)

Communicates with companies Gets what they want

20% use Twitter for customer service (source: Colloquy)

26% far more likely to speak badly of co. rather than well via social media

Social, mobile, local Expects an immediate response or

nearly so Expects to have information

available nearly instantly when they look for it.

Increases velocity of the consumerization of work

Uses social networks as active participants in effecting change


The Social Customer

Key element of the relationship: Trust Listens to customer needs and feedback

#1 concern of public about trust in cos. (source: Edelman Trust Barometer 2012)

Offers high quality goods & services Treats employees well Places customers ahead of profits

The Social Customer

Source: IBM Institute for Business Value: From social media to Social CRM

The Social Customer


Consumers' ranking: The reasons they interact with companies

via social sites

(61%) Discount

(55%) Purchase

(53%) Reviews and product rankings

(53%) General information

(52%) Exclusive information

(51%) Learn about new products

(49%) Submit opinion on current products/services

(37%) Customer service

(34%) Event participation

(33%) Feel connected

(30%) Submit ideas for new products/services

(22%) Be part of a community

Perception gap

Businesses'ranking: Why 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 and 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%)

Note: Consumer N=1056, Busmess: Learn N=333, Generalrnfo N=336, Submt cpmrm N=334, Exclusve mfo N=333, Re\Oews/ranklngs N=333, Feelcmnected N=331, Customer servr ce N=331, SUbmt Ideas N=332, Comrunrty N=329, Event N=332, Purchase N=334, Clscounts N=331 Source IBM lnstrtute for Busness Value analysr s CRM study 2011.

Customer Engagement

Customer EngagementCustomer intimacy is foremost on CEOs minds. Eighty-eight percent of allCEOs, and an astounding 95 percent of Standouts, picked getting closerto the customer as the most important dimension to realize their strategyin the next five years. These CEOs are convinced they must not only stayconnected (or reconnect) with customers, but keep on learning how tostrengthen those bonds. (CEO Study 2010, IBM Institute for Business Value)

Cant stop thinkin about customer

intimacy. Driving me nuts


What it isnt Its not marriage Its not advocacy Its not loyalty Its not consistently the same level Its not determined by the amount

of time or effort a customer makes

Customer Engagement

Definitions Peppers & Rogers:

Proactive involvement

Eric Petersen (Online engagement) is an

estimate of the degree and depth of visitor interaction on the site against a clearly defined set of goals.



Friends Family

Everything Else

Going On


External Agencies




Part of PVC Intersects EVC Customer

Customer Engagement

What is it? It is an ongoing active

interrelationship between the company and the customer

It is determined by customer self-selection

The level can vary from casual to intense, infrequent to frequent, and changes moment to moment

The customer can choose the channels they want to engage in



Friends Family

Everything Else

Going On


External Agencies




Part of PVC Intersects EVC Customer

Customer Engagement

Customer Engagement

The Era of Customer Engagement CRM is making money for companies

$5.60 on the dollar for each CRM program reviewed (Nucleus Research)

Social channels are part of a multi-channel strategy Weve gone beyond experimentation in social media to a fully

integrated multichannel perspective 64% of companies beyond the experimental stage (integrated

channels, multi-channel, cross-channel)(State of Social 2011, eConsultancy)

The customer has the products, services, tools and consumable experiences to sculpt the kind of experience that they want to have with the company

They self-select Advanced thinking includes customer value-based co-creation of

products etc. Ubiquitous tools at low costs of entry

Costs of success considerably higher

Customer experience is in the forefront of strategy

60% of companies in Bruce Temkin survey have senior exec in charge of customer experience

30% of companies have 20+ employees delegated to customer experience

84% have gotten positive results from Voice of Customer programs

But. Only 17% feel that execs are willing

to trade off short term financial results for long term customer loyalty

Source: 2011 State of Customer Experience Management, Bruce


Customer Engagement


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)

Customer Engagement

Gartner forecasts that by 2014, 70% of all businesses in the Global 2000 will have gamified apps

M2 says by 2016, were looking at a $2.8 billion market, 2012 200% growth

over 2011 $100,000,000.

Customer Engagement

All games have 4 traits A goal Rules Feedback system Voluntary participation

Gamification supports engagement big time

Games can evoke: Flow (in the zone) Fiero (Yes!)

Customer Engagement

Can be as simple as If you register/buy in the

next five minutes Or as complex as

Farmville World of Warcraft

Business value Increase advocacy and

loyalty Support positive changes

in customer behavior

Customer Engagement

Points for each line item and invoice correctly enteredTeam sportMonetary prizes to charity chosen by winning team

Customer Engagement

Customer EngagementBad use of gamification by the otherwise popular GetGlue

I think Radiohead sucks!

The Company Side of the Engagement Story

Company concerns Making the experience seamless regardless of channel Recognizing the customer will be expecting the best results he/she

had in all channels Knowing the costs of trying to provide all that a customer wants is

incredibly high How to prioritize the channels proffered What is it that we need to know about the customer or the

customer group that helps us make those decisions? Transactional Unstructured

Customer Engagement

What should a company do to prepare? Meet customer expectations if they are reasonable Dont react to everything Treat the customer as a partner, not a client If you are comfortable with it, involve the customer as an

extension of your company Community retailing

Provide them with what they need to sculpt their own relationship with you

Recognize that your and the customers idea of value are not the same

Provide the most important channels to customers, not necessarily all of them

Customer Engagement

Social CRM

Social CRM

Social Business A business that embraces

networks of people to create business value. Social businesses more fully integrate the collective knowledge of people-centric networks to accelerate decision making, strengthen business processes, and increase innovation that matters. - IBMdef