Presentation Title
TRACK NAME
Customer Service:The Force Multiplier For Your Business
Social
Dr. Natalie Petouhoff
www.drnatalienews.com@drnatalie
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How a company delivers Customer Service is…
Essentially a reflection of the values and consciousness of a company, especially the leadership
I predict it’s a reflection of their long-term viability in the marketplace
As you think about this, what companies come to mind?
United Airlines (UBG)Zappos
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United Airlines And
Dave Carroll
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One of the reasons social customer service
is so powerful is that Customers use social
media to express their frustration
Long story, short-Dave’s guitar was broken in transit by United Airlines
July 6, 2009
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Does the company listen?
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Dave gave United the option to
co-write the song.
Would it be about a good or bad
customer service experience?
The song reflects the poor customer service experience.
What if all customers did this?
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Consumer Advocates…
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Like Dave are on a mission
He has Videos Speaking career Website and Book
Dedicated to this idea of companies listening and changing…
www.UnitedBreaksGuitars.com
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The media looks to social media for stories
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Stories like Dave’s end up on CNN…
Shouldn’t that be enough to drive change
within a company?
Call it the embarrassment factor…
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Another Consumer Advocate…SCRM expert…
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April 19, 2012
Dave Carroll: July 6, 2009
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And then there’s Zappos… $0 to $1B in 10 years... Their revenue and growth strategy? Customer
Service. They turned the marketing funnel upside down!
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I have clients that say, “Pls don’t compare us to Zappos.”
Why not? They are doing something right…
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To convince leadership how important Customer Service is…
That Customer Service can be a revenue generator and preserver…
….We need more structure around this concept for it to stick in business…
That structure requires a pattern interrupt…
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The Boyd Affect
Meet John Boyd (military strategist) Colonel and Fighter Pilot His theories highly influential in the:
MilitarySports and Business.
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The Boyd Affect
Meet John Boyd (military strategist) Colonel and Fighter Pilot His theories highly influential in the:
MilitarySports and Business.
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Carl von ClausewitzOn War The Fog of War
http://en.wikipedia.org/wiki/Carl_von_Clausewitz
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The Boyd Affect
Meet John Boyd (military strategist) Colonel and Fighter Pilot His theories highly influential in the:
MilitarySports and Business.
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Carl von ClausewitzOn War The Fog of War Sun Tzu
Art of War
http://en.wikipedia.org/wiki/Sun_Tzu
http://en.wikipedia.org/wiki/Carl_von_Clausewitz
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The Boyd Affect
He is known for:Decision CycleConceptual Spiral
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How does this apply to
Social Customer Service?
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Boyd created the OODA Loop
It’s how we generate the new actions & ideas
we need to thrive and grow
in an uncertain and competitive world.
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Note to self: sounds like something we could use to deal
with the changes social media is bringing to companies
“Discourse on Winning and Losing”By John Boyd
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The Boyd Loop: OODA
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Observe: the collection of dataMake use of the best sensors and other intelligence available
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The Boyd Loop: OODA
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Observe: the collection of dataMake use of the best sensors and other intelligence available
Orient: analysis and synthesis of dataPut the new observations into a context with the old
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The Boyd Loop: OODA
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Observe: the collection of dataMake use of the best sensors and other intelligence available
Orient: analysis and synthesis of dataPut the new observations into a context with the old
Decide: determination of a course of action Select the next action based on the combined observation and local knowledge
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The Boyd Loop: OODA
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Observe: the collection of dataMake use of the best sensors and other intelligence available
Orient: analysis and synthesis of dataPut the new observations into a context with the old
Decide: determination of a course of action Select the next action based on the combined observation and local knowledge
Act: action of those decisionsCarry out the selected action, ideally— while the competitor is still observing your last action
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How fast does your company OODA?
Do you have systems to monitor/measure what employees know, think & feel?
Do you have systems to monitor/measure what customers know, think & feel?
Do you take that information and integrate it into your company?
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Sounds like what Deming said to do!
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Collect Alert Use Improve TellFeedback Staff Insight Customers
Most Companies Don’t Listen or Integrate Feedback
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Now consider two companies…
United Airlines (UBG)Zappos
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Company 1
How fast do you OODA compared to your competitors?
Company 2
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If Company 1 OODAs faster than Company 2
United Airlines (UBG)Zappos
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Company 1
You’ll have a decided time advantage over their
competitor
Company 2
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Are You On Track?
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In military operations, OODA takes place in seconds
In corporations, its slower Strategy is rigidly followed till next years’
planning cycle It’s critical to validate we’re on track
or correct it
Especially in the Age of Social
Business
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It not jus about OODAing OnceIt’s the OODA LOOP:
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The results of your actions become the observations to re-orient
you to make your next decision
Repeated OODA = Success
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What Happens When a Company Doesn’t OODA?
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NetflixAnnounced the price change on the blogBlog post said, “If you don’t like it, you can cancel your account.”And provided the link to cancel your account
July 12, 2011
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Using Social Media Monitoring*-- There’s a Spike
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Related words:• Increase• Angered• Cancelled• Drop• Greedy• Redbox
*Source: Sysomos
July 12, 2011
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Despite the 7/12/2011 Reaction• 81,789 comments on Facebook• 1,429 positive
Netflix sent out a notice
on the price hike
on Sept 19th, 2011
July 12, 2011
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Can Your Company Stand Negative Press?
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Can You lose 800,000
Customers?
A PR announcement
results in 100’s of calls to
the contact center
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PR is Customer ServiceCustomer Service is PR
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Did they • Observe?• Orient?• Decide?• Act?
In ways that forwarded their business?
They did the opposite-Lost customers
Cost the company in customer service calls
Where did NetFlix Missfire in OODAing?
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We need a paradigm shift in Customer Service
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Where does innovation come from?Most companies think of Customer Service as a Cost CenterZappos made Customer Service their revenue preservation and generation model.
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They no longer want to take what’s handed to them
They have a way to make their voice heard Its called social media / that’s why it was
invented People wanted a two-way conversation
Customers are at the boiling point
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Go back in time, people were predicting this
• There would be a place in time• Where the customer would be in
charge of the brand’s message• And there would be an enabling
technology• That would give them a far-reaching
voice• We are here now
This is your opportunity to drive innovation & change…
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Burification Points and Paradigms
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It can take a long time for a paradigm to shift Example:
Mechanistic point of view, Newtonian Physics to Quantum PhysicsFrom thinking in particles to waves
Burification pointLike a pot of boiling water, things bubble, sometimes for a long timeAnd then, what seems like all at once, the pot boils overWhen it boils over, it’s a burification pointPop!!
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But United Airlines Still Doesn’t Get it
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April 19, 2012
Will businesses take heed and
change?
Mary Ellen Headed Up iRobot’s
Social Customer Service
Took A Complicated Technology And Made It Into A Consumer Product…
iRobot used social media as a better way for all departments to
do business…
iRobot began listening to what was being said in social media….
• Heard what her customers were saying
• It was not always positive – and was stopping sales! • Gathered screenshots
• Put them in a powerpoint
• Gave them to her CEO
“My Roomba doesn’t pick up pet hair #frustrated”
“My Roomba isn’t working – can’t fix it #fail”
Roomba took charge of the social customer interactions...
The CEO appointed her the
lead on social customer interactions…
iRobot used social media data to examine business processes, systems and productivity benefits vs. costs
Reduction in call volume and call center costsSuperusers answer customer questions
Increase positive sentimentIncrease positive word of mouthCustomers become marketersIncrease in sales
New product linesSpecific products based on customer’s wants
…the results were a business transformation…
With less Politics and resistance “Not invented here” or “not my problem”
Social media lead to transformation of:
Engineering, Product Development, QAFulfillment, Order Management,Marketing, Sales and Advertising
Chalk it up to the “Witness” factor
What did iRobot do?
What did iRobot do?
OODAing in ways that forwarded
their business!
This is the promise of SocialCustomer Service
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Why Is Social Customer Service So Important to OODAing?
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Marketing: Maybe they send to many emails Sales: Unless you have a horrendous
purchasing experience, its not often you are mad at them
Social Customer Service: Is the customer-company interface where OODA countsIts when you get the information to put into the OODA loopYou get crowd sourced information
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But companies don’t see Customer Service as the key to innovation, change, competitive advantage…
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• Yet it’s the Reality Check for:• PR Brand Promises• Marketing Messages• Sale Promises• Engineering, Manufacturing
Delivery…
Source: http://www.buzzmachine.com/archives/cat_dell.html
Dell Hell: it started with a post
History provides perspective to see future opportunities…
Source: http://www.slideshare.net/DomHind/dell-ideastorm-community-involvement-presentation
“DELL SUCKS. DELL LIES. PUT that in Your Google and smoke it…” And gained momentum…
And Led To Dedicated Haters…
Dell’s Progression: 2005-2012
2005: Jeff Jarvis Incident• Customer/Blogger heard by
many• Other issues happened
• Battery explosion• Didn’t understand the
power of social media to rally against a company
Company still was not listening• Lead to profit loss• Drop in share price• Disgruntled consumers
Dell’s Social Media Command CenterSocial Media Monitoring…
Listening & responding to the social networks…
25,000 daily Topics, posts…
Not including twitter…Look for trends, issues, sentiment, share of voice…
2012 Dell FINALLY applied OODAing
And Dell goes a step further…
• Product Development• Marketing• Online Presences• Sales• Customer Service• Communication
Dell OODA’s with social media insights
across the whole organization….
Dell uses the social media data
to bring Lovers and Haters of the brand together to
learn:
“What would be better if…”
Dell’s OODA’s withCustomer Advisory Panel Mtgs
Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved
Dell takes social media data & customer feedback and integrates it into their
business…
Dell uses the customer relationships they create in social media to sell more product…• In ’09, Twitter resulted in sales of $6.5M• Sales increased 3x with their ratings and reviews
content
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Social Customer Service is Force Multiplier
A Force Multiplier multiplies the effect of
the existing forces
Ascribes a greater value to the same number of
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Social Customer Service… Takes the existing forces
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Customer Service is Force Multiplier
It multiplies the effect of the existing forces Agents and Customers, Advocates, Influencers
accelerate PR, Marketing, Customer Service, Innovation…
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Paradigm Shift
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Combing Customer Service and Social is a Force Multiplier…
Social Customer Service magnifies the impact of their work
Agents can work in more channels while tapping a crowd-sourced knowledge base
Reach more customers thorough the social media channels
Done well it creates good will, good PR, good word of mouth and loyalty
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Are You An OODA Leader?
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You job as a leader of Social Customer Service is to OODA faster than your competitors
Outmaneuver the competitionObserve the ever-changing conditions and Decisively act in an effort to beat the competition
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What’s it gonna take for….
The whole industry to understand how important Customer Service is?
What is the boiling point for your company?
What is it gonna take for change to happen?
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Are you a OODAing Leader?
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• Leaders needs to:• Have the courage to recognize when
things are off course • Know when a correction is needed
and• Then act decisivelyWhen would “now” be a good time
to be aOODAing Leader?
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When will you step up and be an OODA Leader?
THE KIND OF LEADER YOU WANT TO FOLLOW
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A decision: selection between possible actions
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DECIDEARE YOU A FORCE MULTIPLIER?
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