social media as customer-driven innovation

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FEI: Voice of Customer Summit Social Media for Customer Driven Innovation Scott Hirsch VP of Business Development May 3, 2010

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For FEI2010's "Voice of the Customer" Summit

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Page 1: 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

Page 2: Social Media as Customer-Driven Innovation

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!

Page 3: Social Media as Customer-Driven Innovation

About Me

Scott Hirsch VP of Business Development Get Satisfaction [email protected]

Social CRM is neither social nor CRM … discuss

The Future Is Social Business

Page 4: Social Media as Customer-Driven Innovation

Value of Social Media

Page 5: Social Media as Customer-Driven Innovation

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

Page 6: Social Media as Customer-Driven Innovation

"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

Page 7: Social Media as Customer-Driven Innovation

Honesty Openness

Willingness

(transparency)

How do you sleep well at night?

Page 8: Social Media as Customer-Driven Innovation

to

One

One

Openness, honesty, and willingness (transparency)

Many Many

Page 9: Social Media as Customer-Driven Innovation

Social Media is Not New

User Forms

Forums are some of the oldest technology on the web

Page 10: Social Media as Customer-Driven Innovation

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

Page 11: Social Media as Customer-Driven Innovation

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.

Page 12: Social Media as Customer-Driven Innovation

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

Page 13: Social Media as Customer-Driven Innovation

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.

Page 14: Social Media as Customer-Driven Innovation

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

Page 15: Social Media as Customer-Driven Innovation

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

Page 16: Social Media as Customer-Driven Innovation

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

Page 17: Social Media as Customer-Driven Innovation

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

Page 18: Social Media as Customer-Driven Innovation

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”

Page 19: Social Media as Customer-Driven Innovation

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.)

Page 20: Social Media as Customer-Driven Innovation

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)

Page 21: Social Media as Customer-Driven Innovation

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

Page 22: Social Media as Customer-Driven Innovation

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

Page 23: Social Media as Customer-Driven Innovation

•  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

Page 24: Social Media as Customer-Driven Innovation

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

Page 25: Social Media as Customer-Driven Innovation

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

Page 26: Social Media as Customer-Driven Innovation

26

Social CRM: Convergence is Coming!

Page 27: Social Media as Customer-Driven Innovation

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

Page 28: Social Media as Customer-Driven Innovation

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

Page 29: Social Media as Customer-Driven Innovation

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

Page 30: Social Media as Customer-Driven Innovation

What’s the Value of Advocate Content?

Page 31: Social Media as Customer-Driven Innovation

Target Social Content Inventory for Ads

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Page 32: Social Media as Customer-Driven Innovation

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Page 33: Social Media as Customer-Driven Innovation

Thank You!

Scott Hirsch VP of Business Development Get Satisfaction [email protected]