Social Media as Customer-Driven Innovation
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Scott Hirsch from Get Satisfaction gave a presentation on social media and customer engagement. He discussed how social media is a tool for conversation rather than a destination. Get Satisfaction's platform encourages conversation, aggregates customer knowledge, allows knowledge to be used across departments, and creates value for both customers and companies. The presentation also covered trends like social commerce and how social customer content can be used for targeted advertising.
Social Media as Customer-Driven Innovation
- 1. FEI: Voice of Customer Summit Social Media for Customer Driven Innovation Scott Hirsch VP of Business Development May 3, 2010
- 2. 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!
- 3. 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
- 4. Value of Social Media
- 5. 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
- 6. The Story of Enterprise 2.0 and Social Media Was Foreseen Many Years Ago "Long-term commitment to new learning and new philosophy is required of any management that seeks Macroforces transformation. The timid and the fainthearted, and the change people that expect quick Relationships results, are doomed to disappointment.“ - - W. E D WA R D S D E M I N G !
- 7. How do you sleep well at night? Honesty Openness Willingness (transparency)
- 8. Openness, honesty, and willingness (transparency) One Many to Many One
- 9. Social Media is Not New User Forms Forums are some of the oldest technology on the web
- 10. 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
- 11. 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.
- 12. 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
- 13. 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.
- 14. Here’s Why You Should Care … VOC Conversations Have Value Everywhere Feature Voting Product Advocacy R&D Marketing Crowd-sourced Ideas Social Ads Service / Sales Support Self-serve Set-up
- 15. Where is the Conversation in Social Media? Reach! Conversational Business Structure! Relevance! Forums! Walled destination! Two-way, but closed! Service / Support! R&D! Blogs! Readers, but good One-to-many Product! SEO! except in comments! Marketing ! Twitter! Followers! Broadcast, not Service / Support! conversation! PR … Marketing? ! Facebook! Social Graph of Conversational, but Marketing! “People like me”! closed to Facebook! Sales! Yelp Locally powerful! Broadcast! Marketing ! Foursquare! Sales! Get Satisfaction innovates by aggregating multiple social media channels into one social platform
- 16. Social Business is the Next Step Encourage Aggregate Use Across Create Value! Conversation! Knowledge! Disciplines! 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
- 17. Get Satisfaction Case Study 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 Aggregate Use Across Create Value! Conversation! Knowledge! Disciplines!
- 18. Encourage Conversation Encourage Conversation! Not a forum taxonomy Call to action is very simply “ask a question” Best Practices • Use a conversational, easy-to-navigate medium • Forums don’t work … up to 50% of customers immediately navigate away.
- 19. Aggregate Aggregate Knowledge 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.)
- 20. Use Across Use Across Disciplines 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)
- 21. 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
- 22. Let’s Talk About Facebook 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
- 23. Managing Customer Engagement on Fan Pages Presents Challenges • 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
- 24. The Get Satisfaction Facebook Overview We search for answers Content is liberated from And display post questions, Consumers the Facebook brand’s response and praise problems, ideas, 24
- 25. We Make the Fan Page Create More Value Encourage • GS is designed for productive conversations Conversation! - Questions, problems, ideas, and praise Aggregate • Customer conversations are transformed Knowledge! - Into multi-purpose, re-usable, searchable knowledge Use Across • Fan page content is hosted in GS, not Facebook Disciplines! - Can be shared internally or pushed to your web site • Social knowledge benefits the whole organization Create Value! - Service, support, consumer relations, marketing, sales 25 Engaged customers are loyal customers
- 26. Social CRM: Convergence is Coming! 26
- 27. 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
- 28. 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
- 29. 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
- 30. What’s the Value of Advocate Content?
- 31. Target Social Content Inventory for Ads !"#$%&'()*'$+#&,)-'#"+.-+.'/0"1'23-"4&-'5$6-'1-78'9-0-'%0-'.:"' %)*'.;%.'#",&)'<-'#0-%.-)'/0"1'.;-'%)="#%.-'#"+.-+.7'' !"#"$%&'>/':-'6+":'4*?#;"@)-1"'"/'4"*.-0A'%+)':-'6+":'4*?#;"@ )-1"'"/'.;-'.%0B-.A':-'#%+'4-0/-#.&?'.%0B-.'%+)'.-*.'.;-*-'%)*7''
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- 33. Thank You! Scott Hirsch VP of Business Development Get Satisfaction scotth@getsatisfaction.com