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Welcome to the Era of the Social Customer,[object Object],21st Century Edition,[object Object]
The Social Customer,[object Object]
The Social Customer,[object Object]
The Social Customer,[object Object]
Era of The Social Customer 2010.
Era of The Social Customer 2010.
The Social Customer,[object Object],This is a SOCIAL transformation that impacts all institutions – business among them – not exclusively,[object Object]
The Social Customer,[object Object],Sea change in use of technology,[object Object],Gen Y first generation to spend more time on the ‘Net than watching TV,[object Object],96% on social network,[object Object],Will outnumber baby boomers by 2010,[object Object],Implications for marketing staggering,[object Object],74% of all adults on the web are engaged with a social network/community,[object Object]
The Social Customer,[object Object],[object Object],Social networks as active participants in effecting change (blogosphere, podcasting),[object Object],Collaboration between company & customers to provide useful value for each,[object Object],Personal value chain subsumes enterprise value chain,[object Object],The social customer is increasingly a mobile customer,[object Object],Conversant with the tools – which are inexpensive,[object Object]
The Social Customer,[object Object],Source:  A Typology of Information & Communication Technology Users – Pew Internet & American Life Project,[object Object]
The Social Customer,[object Object],[object Object]
Nielsen 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%),[object Object]
The Social Customer,[object Object],Traditional ads – trusted by 14% (Marketing to the Social Web, Larry Weber),[object Object],Peers – trusted by 90% (Nielsen Global Online Consumer Survey, 2009),[object Object]
The Social Customer,[object Object],Conversation is controlled by the customer,[object Object],Review sites,[object Object],Yelp,[object Object],Social networks/communities,[object Object],Service complaint oriented – Planetfeedback,[object Object],Get Satisfaction,[object Object],LinkedIn,[object Object],Facebook pages,[object Object],Social Media Properties,[object Object],User generated content – video, audio, blogs etc.,[object Object],Blogs (200 million),[object Object],34% post brands & product opinions,[object Object],Podcasts,[object Object],Geek Brief TV,[object Object]
The Social Customer,[object Object],Source: Brian Solis,[object Object]
The Social Customer,[object Object],BUSINESSWEEK, DECEMBER 19, 2005,[object Object],"Companies used to focus on making new, better, or cheaper products and services....Now the game is to create wonderful and emotional experiences for consumers around whatever is being sold. Its the experience that counts, not the product.",[object Object],“People…want capabilities and options, not uniform products…business is there to provide the tools.”,[object Object],“The Knowledge Economy is giving way to the Creative Economy...” (Knowledge has become a commodity so the solution is to) "focus on innovation and design as the new corporate core competencies." ,[object Object]
Social CRM Definition,[object Object]
The Social Customer,[object Object],From CRM to Social CRM,[object Object],"CRM is no longer just a model for managing customers but one of customer engagement",[object Object]
The Social Customer,[object Object],Social CRM,[object Object],“SocialCRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.”,[object Object]
The New Business Model,[object Object]
The New Business Model,[object Object],[object Object]
Each customer wants a personalized experience…
Understand their relationship with you exists because they appreciate the experience
But how do you begin to “know” customers?First, learn how they interact with you.,[object Object],Ultimately, the tools for the customer to manage their own experience are paramount,[object Object],Give them access to information that allows them to make informed, empowering choices which thus, provide value,[object Object]
The New Business Model,[object Object],The users and producers become partners/collaborators,[object Object],Which means insight about your partner, rather than data on your customer becomes the mindset. ,[object Object],The business moves to be an aggregator of products, services, tools and experiences, rather than simply a producer of goods and services for sale,[object Object],The user is an advocate of the experience and, directly and by extension, the company,[object Object]
New Business, Little Fella,[object Object]
Community retailing,[object Object],Multiple brands,[object Object],Established (Adidas, Vans),[object Object],Independent (The Kazbah),[object Object],Community of 800,000,[object Object],Own clothing line (Sons of Liberty,[object Object]
Helps indie designers sell their wares,[object Object],Promotes and advertises to the community,[object Object],Recruit to the community and recruit from the community ,[object Object]
Street Teams,[object Object],Sign up, get unique code,[object Object],Get friends to buy on the site using unique code,[object Object],Discounts plus points for Street Team member,[object Object],Street team member can upload photos, videos, earn points (community themes),[object Object],Return is cash & free clothes,[object Object],1% of their network = 15% of their revenue,[object Object],Over 8000 advocates on street teams,[object Object]
Transformative Social CRM Models,[object Object]
The New Sales Model,[object Object],New approaches to lead generation (non-traditional social sources) (community participation),[object Object],Better handling of opportunities (Employee engagement) (Oracle Social CRM, Lotus Connections),[object Object],Need for competitive differentiation of a new kind but through organizational knowledge & sales intelligence (InsideView),[object Object],Reputation, influence, persuasion,[object Object],Based on customer insight,[object Object]
The New Customer Service Model,[object Object],What do you do – Customer Service Models,[object Object],Agent based call centers (Ayava, Genesys, Siebel, Amdocs),[object Object],Process based CRM (Sword-Ciboodle),[object Object],Community driven customer service (Helpstream, RightNow),[object Object],Customer experience focused call customer service (Kana),[object Object],Web self service (RightNow),[object Object]
The New Marketing Model,[object Object],Authenticity and trust is what matters – more than even the “consistency” of the message ,[object Object]
The New Marketing Model,[object Object],Because the model is built on trust, the reputation of the company, not the message, becomes the brand,[object Object],That means, both the perception but also the actual quantified assessment of the marketing practices as certified by third parties (TRUSTe, etc.),[object Object],The practical side would be an authenticated or accredited message that is validated by the ISP or whoever is transmitting it.,[object Object],Marketing becomes the center point for engagement of the customer,[object Object],Messages are not to be pushed at the customer about products and services;,[object Object],Marketing uses the media tools that are available to engage the customer,[object Object],But with authenticity (Walmart & Edelman screw-up),[object Object]
Case Study: Proctor & Gamble,[object Object],300 brands,[object Object],23 of those brands $1 billion and up (e.g. Charmin, Crest, Folgers, Downy, Pringles, Tide),[object Object],2 billion consumers affected w/6 billion as goal,[object Object],160 countries reached,[object Object],One of 30 companies on the Dow Jones Industrial Average (DJIA),[object Object]
Case Study: Proctor & Gamble,[object Object],“We have to create a great experience every time you touch the brand, and the design is a really big part of creating the experience and the emotion. We try to make a customer’s experience better, but better in her terms.”– A.G. Lafley, CEO Proctor & Gamble,[object Object],“I think its value that rules the world. There’s an awful lot of evidence across an awful lot of categories that consumers will pay more for better design, better performance, better quality, better value and better experiences.”– A.G. Lafley, CEO, Proctor & Gamble,[object Object]
Case Study: Proctor & Gamble,[object Object],Focused around the co-creation of value and user communities,[object Object],Sales/Marketing,[object Object],Vocalpoint – 600,000 moms,[object Object],Tremor – 225,000 teens,[object Object],Research,[object Object],Innovation Network – 80,000 scientists,[object Object],Technology entrepreneur networks,[object Object],Benefits?,[object Object],In 2001 – 20% of ideas, products, technologies external,[object Object],In 2004 – 35% of ideas, products, technologies external,[object Object],In 200X – 50% of ideas, products, technologies external,[object Object],Virtual design, 3D simulation,[object Object]
Case Study: Proctor & Gamble,[object Object],Perhaps the most innovative company in the U.S. when it comes to understanding of the benefits of customer ecosystem,[object Object],They emphasize the “desired consumer experience” as their primary design focus,[object Object],Taste, smell, feel of products – not just utility,[object Object],Connect & Develop program,[object Object],Moving technology and ideas between cross-functionally,[object Object],Crest Whitestrips involved oral care unit (whitening teeth), corporate R & D (film technology), and fabric/home care (bleach experts),[object Object],Tie the effort to working with consumers too,[object Object],50 technology entrepreneurs who scour for external resources including customers,[object Object],Use of ethnographers to try to understand the activities of individuals in the context of social anthropology,[object Object]
Case Study: Proctor & Gamble,[object Object],Contemporary Marketing,[object Object],Secret Sparkle body spray products launched Feb. 2005,[object Object],Not campaign focused,[object Object],Blog SparkleBodySpray.com launched May 2005,[object Object],12,000 visitors per week,[object Object],25 minutes per visitor per visit,[object Object],Four teenage authors under identities of Vanilla, Tropical, Peach, Rose (4 body spray names),[object Object],Music, fashion, sports, dating, parties,[object Object],Interactive activities e.g. building dream date (choice of males) that you can send to a friend,[object Object]
Case Study: Procter & Gamble,[object Object],It went from this in 2005….,[object Object],….to this in 2007,[object Object]
Case Study: Procter & Gamble,[object Object],Results?,[object Object],0.8% of the $10.4 billion antiperspirant/deodorant market by July 2005,[object Object],Do the math -  $83 million in five months,[object Object]
But They Didn’t Forget the New 12-13 Year Olds!,[object Object]
CaseStudy: Procter & Gamble,[object Object],Say hi to BeingGirl.com,[object Object]
Getting Results: Creating Advocates,[object Object]
Advocacy,[object Object],“Advocates are what you aim for optimally when you build your customer strategy. You settle for loyalty. Advocates are your partners, not just your clients. It works so much better that way.” -Paul Greenberg, CRM at the Speed of Light, 4th edition,[object Object]
Advocacy,[object Object],Advocates are created through continuous:,[object Object],Engagement (conversation),[object Object],Transparency (visibility),[object Object],Authenticity (honesty, straightforward behavior),[object Object]

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Era of The Social Customer 2010.

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  • 12. Nielsen Online research “Global Faces on Networked Places” (March 2009):
  • 13. Fastest growing sector for Internet use is communities and blog sites (5.4% in a year)
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  • 24. Each customer wants a personalized experience…
  • 25. Understand their relationship with you exists because they appreciate the experience
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