Social Networking for Customer Contact Ready or Not ---- Here It Comes

Joe Outlaw, Principal Analyst – Contact Centers

Jake Wengroff, Global Director, Corporate Communications

March 10, 2010

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Today’s Presenters

Jake Wengroff, Global Director, Corporate Communications

Frost & Sullivan

Joe Outlaw, Principal Analyst

Frost & Sullivan

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Pop Quiz: How many tweets have appeared on Twitter?

A) 50 million

B) 100 million

C) 500 million

D) 1 billion

E) 10 billion

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Pop Quiz: How many tweets have appeared on Twitter?

ANSWER: 10 billion – March 5, 2010 -- 5 months after Twitter announced its 5 billionth tweet; now forecast to reach 11 billionth in next 20 days.

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How Does Your Company Use Social Media?

Gain New Product and ServiceIdeas

Brand/Corporate Positioning

Engage with Customersand Receive Feedback

Make New Connectionsand Grow Business

Use for Internal Communications and

Training

Key

Uses

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Real Enough?

• 300 million active users• 50% log on everyday • fastest growing demographic – over 35 years old• supports 69 languages• 70% of users - outside the United States

• 48 million over 200 countries; 1 joins each second• 50% of members - outside the United States• executives from all Fortune 500 companies are members

•50 million tweets/day•75 million users•20% contain product or brand references

•serving 1 billion videos per day•every minute, 20 hours of video uploaded

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Perceived Values of Social Networking

(N=952)

54%

54%

53%

53%

52%

51%

51%

50%

45%

42%

35%

35%

35%

35%

36%

38%

38%

42%

41%

7%

7%

7%

7%

9%

9%

6%

7%

10%

13%

34%

0% 20% 40% 60% 80% 100%

Gain Additional Customers

Increase Customer Satisfaction

Get Consumer/Customer/Client Feedback

Get Low-Cost Exposure/Public Relations

Reduce Operating Costs

Increase Revenues Per Customer

Increased Collaboration

Increase Staff Satisfaction

Reduce Staff Turnover

Recruit New Staff

Highly Valuable Moderately Valuable Low Value No Value At All Don’t Know

3.4

3.4

3.4

3.4

3.4

3.3

3.4

3.4

3.5

3.4

Mean Scores

Source: Frost & Sullivan

Note: Proportions less than five percent not shown in above chart.

Q14. Please indicate the value you perceive your organization receives from any of the following benefit(s).

Perceived Value of Social Networking

Among Those Who Believe Corporate Social Networking Beneficial (Highly or Moderately)

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Potential Risks of Social Networking Sites to Your Organization

(N=1166)

29%

26%

24%

20%

17%

14%

28%

28%

30%

26%

27% 32%

31%

31%

25%

26%

25%

21% 8%

9%

9%

12%

12%

14%

11%

12%

12%

12%

14%

14%

0% 20% 40% 60% 80% 100%

Wasted Time by Employees/Loss of Productivity

Allow Malware (Viruses, etc.) to get onto Computer or

Network

Confidential Information Going to Unintended Outsiders

Slow Down the Computer Network Due to increased Use

Incur Legal Liability/Financial Penalty

Increase IT Support Cost

High Risk Moderate Low No Risk Don’t know / No opinion

2.5

2.6

2.7

2.8

2.8

2.9

Mean

Scores

Source: Frost & SullivanQ15.Please rate the following potential risks of Social Networking Sites to your organization?

Perceived Risks of Social Networking Sites

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Focus Points

• What is social networking for customer contact (SNCC)?

• How are leading companies addressing SNCC?

• What is the business case for SNCC?

• How can SNCC affect your company’s larger marketing efforts and overall brand?

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Social Networking for Customer Service

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Social Networking for Customer Service – Areas of Focus

• Supporting Customer Communities and Forums

• Monitoring of Social Networking Conversations

• Contact Center Application Support for Social Media

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Customer Community Example – AT&T Wireless forum

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Supporting Customer Communities and Forums

• Forum: on-line virtual community where customers and enthusiasts can interact (post questions; answer questions; offer advice and share experiences); more feature-rich and advanced electronic bulletin board

• Forum benefits for hosting enterprise:• Reduce support costs (customers help each other)• Grow/strengthen knowledge base• Promote customer loyalty• Receive feedback on products/services

• Forum benefits for customers/enthusiasts:• Receive answers to questions from knowledgeable customers• Receive answers about 3rd-party and off-label uses of products• Learn from other customers’ experiences• Share experiences• Help other customers – gain status in customer group

• Forum vendors: Lithium Technologies, Get Satisfaction, RightNow Technologies, and Knova

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Monitoring of Social Networking Conversations

Listening platform: applications capable of mining a wide variety of on-line sources, such as social networking websites and blogs, to extract enterprise brand and product references

Benefits for enterprise:

• automate the monitoring, collection, analysis of company/product references for further consideration

• early-warning system for customer service and brand issues

Social networking listening platform and analytics vendors:

• Radian6

• Alterian SM2

• Nielsen BuzzMetrics

• Visible Technologies

• TNS Cymfony

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Contact Center Application Support for Social Media

Formal contact center application support for social media, including Twitter and Facebook, is just emerging

2010-available contact center application capabilities include:• route inbound Twitter messages for contact center agent processing,• agents post to Facebook and other major social sites, • agents send outbound Twitter messages,• agents reach into customer forums to answer posted questions,• reach into social world to offer live agent interactions,• monitor and measure customer experiences in social channels as customer

traverse formal and informal customer interaction channels,• pass context information from informal channels to formal channels• track, report on, and analyze end-to-end interactions which include formal and

social channels

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SNCC at The Leading Edge

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Social Networking Support – Example Leading Vendors

Cisco Systems

• Vision: Customer Collaboration, will revolutionize the way companies interact with customers and partners by linking traditional contact center channels with enterprise and consumer social software

• Current offering: Cisco and partner Salesforce.com offer The Customer Interaction Cloud service, which consists of Salesforce.com's Service Cloud CRM and Cisco Unified Contact Center functionality. The Customer Interaction Cloud is operated by Cisco partner TeleTech.

• Planned offerings: support for customer communities/forums, listening platforms, and processing of social media by its Unified Contact Center systems

Alcatel-Lucent

• Planned offerings: support for customer communities/forums, listening platforms, and processing of social media by its Genesys CIM Suite

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Social Networking Support – Example Leading Enterprises

• Forums – AT&T, Future Shop, Lenovo, BT, Pitney-Bowes, Barnes & Nobles, Sony, Best Buy, Fico, Verizon, Sage, Cisco (Linksys)

• Listening Platforms – Dell, Comcast, Microsoft, Weber Shandwick, Pepsi, American Red Cross, Molson Coors, Kodak

• Processing Social Media – Comcast, Dell, Southwest Airlines, Intuit

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Social Networking Support - Leading Enterprises Initiatives

LeadersLeaders

More AdvancedMore Advanced

Getting StartedGetting Started

•Expand monitoring•Add/deepen analysis•Set engagement policies •Enhance forum

•Forum first •Address directly in social sites•Build linkages between social &

traditionalcustomer support•Proactively address unanswered forum

posts•Route and process Twitter messages

•Enterprise presence on social

sites•Establish customer community•Begin monitoring social sites

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Show Me The Money: Business Cases for SNCC

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Customer Communities – Business Case

Lithium Technologies

Set-up: $10,000 to $20,000

Monthly support: $7,000 to $10,000

Internal expenses: 2X to 3X vendor fees (mid-large enterprise)

Get Satisfaction

Set-up: Beginning at $5,000

Monthly support: ~$300 to >$1,000

Benefits: call deflection, email reduction/elimination, increased

customer satisfaction, improved FCR from improved KB.

Payback: typical within 12 months, wide variation of results

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Sample Enterprise Customer Community Results

Lithium customers:

Cisco/Linksys: saved $20MM from call deflection

Pitney/Bowes: saved $3MM from call deflection

HP: saved $2MM from call deflection; 15% increase in customer satisfaction scores

Get Satisfaction customers:

Yola.com: 2MM customers support by 6 staff

60% to 70% reduction in trouble tickets

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SNCC for Marketing and Brand

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Attention, Marketers: Talk to your Contact Center

The Contact Center can provide valuable feedback to the Marketing and Communications department on social media campaigns, strategies, and tactics

Analyze the Twittersphere and Facebook stream:

Turn casual references, comments, complaints into action

Is a small gripe on Facebook worthy of communication from the Contact Center?

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Friending Your Brand’s Ambassadors

Nothing new, but now more important than ever

Brands can find dozens, if not hundreds, of loyal fans who are willing to provide praise and feedback to others within a community free of charge

Foster relationships with these influencers – they can both assist and enhance your Contact Center efforts in the long term

Companies and individuals expect a company to maintain a strong “social footprint,” even in the B2B environment

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Now Is the Time to Get Even More Social

• Add the AddThis or ShareThis widget to your site, to encourage website visitors to start conversations about your content, brand, company, products, or services.

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Measure Everything: Prove your ROI

• Costing more than Google Alerts, an investment (in both time AND money) in a social media monitoring tool will give you and the senior management deeper insight into the conversations being conducted on the Social Web, so you can take appropriate action.

Measure clickthroughs on links with URL shortening services.

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Conclusions and Recommendations

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Conclusions

Social Networking

• is real and growing rapidly

• will impact your enterprise

• does have C-level attention in 2010

Early adopters learning to leverage social networking opportunities

Customer service/contact center support for social networking becoming available

Business cases for addressing social networking are emerging

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Recommendations

Beginning Steps

• Investigate social activity re: your enterprise (trial one of the listening services)• how often are your enterprise/products referenced?

• how many of your customers/target prospects use social sites?

• track competitors’ social conversations

• analyze patterns (growth rates, types and frequency of references…)

• Ask your contact center vendors about their plans to support social networking

• Find out which other departments have or are planning social support?

• Consider business cases for adding social networking support

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Recommendations (cont.)

Defend and Enhance your Brand

Have Marketing and Corporate Communications teams regularly interface with Customer Care and Contact Center teams

Feedback is two ways: share best practices

Additional measures of performance can now be included for thesedepartments

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Next Steps

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For Additional Information

Jake Wengroff

Global Director

Corporate Communications

(210) 247-3806

jake.wengroff@frost.com

Joe Outlaw

Principal AnalystContact Centers

(302) 655-5425

joe.outlaw@frost.com

Angie Montoya

Global Analyst Briefing Coordinator

Marketing

(210) 247-2435

amontoya@frost.com

Craig Hays

Sales ManagerInformation & Communication Technologies

(210) 247-2460

Craig.hays@frost.com