social media as customer-driven innovation

FEI: Voice of Customer Summit Social Media for Customer Driven Innovation

Scott HirschVP of Business Development

May 3, 2010

Agenda •  About Me!

•  Current State: Social Media As a Tool!

•  Future State: Social Business and Customer Collaboration!

•  “The Power of Like” and the Rise of Facebook!

•  Social Commerce: A Disruptive Innovation on the Horizon!

•  Questions and Answers!

About Me

Scott Hirsch VP of Business Development Get Satisfaction scotth@getsatisfaction.com

Social CRM is neither social nor CRM … discuss

The Future Is Social Business

Value of Social Media

Where I come from …

7 years in Non-profit/Public Sector

Haas School of Business @ Berkeley - Product Design and Development - Haas Social Venture Competition

Adaptive Path – User Experience Design Firm - Really skeptical of traditional customer “research” - The power Contextual inquiry

Management Innovation Group – Boutique Strategy Firm - Pioneered of internal collaboration tools/process - Early stages of social media

"Long-term commitment to new learning and new

philosophy is required of any management that seeks

transformation. The timid and the fainthearted, and the people that expect quick results, are doomed to

disappointment.“ -- W. EDWARDS DEMING !

The Story of Enterprise 2.0 and Social Media Was Foreseen Many Years Ago

Macroforces change

Relationships

Honesty Openness

Willingness

(transparency)

How do you sleep well at night?

to

One

One

Openness, honesty, and willingness (transparency)

Many Many

Social Media is Not New

User Forms

Forums are some of the oldest technology on the web

Social Media is Not a Destination

Frank Eliason –Starts responding to support-related tweets under the user name: ComcastCares

The innovation here came from the brand’s willingness to pro-actively reach out to customers with service/support issues

Social Media is Not “Yours”

Customers create community around the things that they care about.

The obligation is on Companies to claim their space

Innovation here is create social media “spaces” that customers want to engage around.

Social Media is Not Just a Channel or Two

New platforms will continue to emerge.

The trick is knowing how to assess relevance.

Innovation here is to know what channels matter to your business … not being afraid to engage

Above All, Social Media Is Just a Tool … The Value is in the Conversation

Analogy:

The telephone transformed business … but the telephone didn’t create value.

The ability to converse over distance in real-time created value. The telephone was just a tool.

Taking it a step further, email transformed business by documenting conversations

Social media transforms business by enabling many-to-many conversations between customers and brands.

Product

Service / Support Sales

R&D Marketing

Here’s Why You Should Care … VOC Conversations Have Value Everywhere

Crowd-sourced Ideas

Self-serve Set-up

Social Ads

Advocacy Feature Voting

Where is the Conversation in Social Media?

Reach! Conversational Structure!

Business Relevance!

Forums! Walled destination! Two-way, but closed! Service / Support!R&D!

Blogs! Readers, but good SEO!

One-to-many except in comments!

Product!Marketing !

Twitter! Followers! Broadcast, not conversation!

Service / Support!PR … Marketing? !

Facebook! Social Graph of “People like me”!

Conversational, but closed to Facebook!

Marketing!Sales!

Yelp Foursquare!

Locally powerful! Broadcast! Marketing !Sales!

Get Satisfaction innovates by aggregating multiple social media channels into one social platform

Get Satisfaction is a platform for: •  Encouraging conversation in your social web channels:

Facebook, Twitter, and on your website. •  Aggregating the knowledge created by these

conversations into one social platform. •  Facilitating use of customer knowledge across disciplines

(service, support, marketing, sales, R&D, etc.). •  Using this insight to create value both internally and for

your customers. •  Social Business delivers ROI for social media

Encourage Conversation!

Create Value!Use Across Disciplines!

Aggregate Knowledge!

Social Business is the Next Step

Mint.com Problem Statement •  Mint was experiencing exponential user growth •  Product roadmap was aggressive and in need of user

input for prioritization •  Tier 1 support was a user forum with poor search

functionality and low adoption •  Tier 2 support was email – backlog sometimes

approached 2 weeks •  Due to nature of support questions, peer-to-peer support

was critical for success

Encourage Conversation!

Create Value!Use Across Disciplines!

Aggregate Knowledge!

Get Satisfaction Case Study

Best Practices •  Use a conversational, easy-to-navigate medium •  Forums don’t work … up to 50% of customers

immediately navigate away.

Encourage Conversation!

Encourage Conversation

Not a forum taxonomy Call to action is very

simply “ask a question”

Aggregate Knowledge!

Aggregate Knowledge

Best Practices •  Aggregate the knowledge created by these

conversations into one platform with natural language search.

•  Integrate social knowledge into your system of record (e.g., Salesforce.com, Parature, etc.)

Use Across Disciplines!

Use Across Disciplines

Best Practices •  Cross-functional

involvement in the conversation

•  Providing an “official answer” when there is one

•  Open-ness and transparency build brand and goodwill (marketing benefit)

Create Value!Create Value

Best Practices •  Use a platform that will aggregate even more customer

conversation (open, optimized for search engines) •  Delivers value to marketing (SEO) and service/support

… as well as to customers by providing answers to questions

Basic Facebook Stats

•  Facebook is big and getting bigger … 400M users, 50% return daily, 25min session time, 100M mobile users

•  Only 4 of the top 30 fan pages are brands

•  But … 10 of the 30 fastest growing fan pages are brands

What does this mean?

•  Your most social customers are on Facebook - Real people talking about things they are passionate about

•  Facebook’s social graph is representative of strong relationships and support viral effects!

•  “People like me” are your brand’s best advocates/promoters

22

Let’s Talk About Facebook

•  The Wall changes quickly (limited exposure of valuable content to fans)

•  There is no search function (costly, repetitive responses)

•  The content has no permanence (limited value to internal teams/systems)

•  Content is not optimized for SEO (limited leverage of user generated content)

23

Managing Customer Engagement on Fan Pages Presents Challenges

24

The Get Satisfaction Facebook Overview

Consumers post questions, problems, ideas, and praise And display the

brand’s response

We search for answers Content is

liberated from Facebook

Engaged customers are loyal customers 25

We Make the Fan Page Create More Value

Encourage Conversation!

Create Value!

Use Across Disciplines!

Aggregate Knowledge!

•  GS is designed for productive conversations - Questions, problems, ideas, and praise

•  Customer conversations are transformed -  Into multi-purpose, re-usable, searchable knowledge

•  Fan page content is hosted in GS, not Facebook - Can be shared internally or pushed to your web site

•  Social knowledge benefits the whole organization - Service, support, consumer relations, marketing, sales

26

Social CRM: Convergence is Coming!

Next on the horizon • Social Currency – Cross-platform reputation • Social Commerce • Conversational Advertising

There is less trust of big companies, more trust of “People Like Me” (Edelman)

27

Social Business Trends

67% of consumer purchases are primarily influenced by Word of Mouth (McKinsey)

What does this mean for Ecommerce? • From Efficiency (eBay) to Experience (Zappos) • From Transactions (Overstock) to Relationships

(Gilt.com) • One-to-many Customer Service is the New

Marketing

Problem: How to leverage Word of Mouth Marketing in eCommerce

28

Opportunity: UGC to drive Word of Mouth Marketing

UGC Evolution: Ratings/Reviews -> Q&A -> ? “The marginal value of each additional product review approaches zero”

– anonymous CPG executive Conversations! • Service Reps become sales people • Customers answer each other’s product questions;

champions/advocates can be rewarded • Brand/product advocates emerge and their content

can be syndicated other places

Free yourself from Google! Community content is also a great driver of SEO

29

What’s the Value of Advocate Content?

Target Social Content Inventory for Ads

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Thank You!

Scott Hirsch VP of Business Development Get Satisfaction scotth@getsatisfaction.com