2013 CRM Evolution Conference Session: Getting Maximum Value from You Customer Community Investment
-
Upload
michael-fauscette -
Category
Business
-
view
3.021 -
download
0
description
Transcript of 2013 CRM Evolution Conference Session: Getting Maximum Value from You Customer Community Investment
Getting Maximum Value from Your Customer Community Investment
Michael Fauscette, Group VP, Software Business Solutions
about.me/mfauscette @mfauscette
@mfauscette 2
@mfauscette
The Goal of Business is to Create a Customer
3
Peter Drucker
The Goal of The Customer is to Fill a Need (or want, desire, etc.)
Me
@mfauscette
Technology Disrupters
Cost take-‐out (to fund
innovation)
Talent (Skills) &/or capacity
gap
IT
Challenging Times
Changing Customer Demands
Increasing Competition
Challenging Macro
Conditions
BUSINESS
Source: IDC C-Suite Barometer and IDC Research 4
INITIATIVES 2013
Market Expansion & Customer Experience 1
CONCERNS 2013
Acquire new customers & reduce churn 1
@mfauscette 5
@mfauscette 6
@mfauscette 7
Expectations Experience
Satisfaction
Getting it “right”
@mfauscette 8
Sales Finance Etc… Service Marketing
CUSTOMER FACING (CONNECTED)
NON-CUSTOMER FACING
(DISCONNECTED)
Customer Relationship Management? Data optimized by functional area
Source: IDC Research
@mfauscette Source: IDC Research
Reduce Churn, Improved loyalty, satisfaction, better experience
9
Coordinating the internal Optimized Data Aligned with Corporate Goals
Marketing Sales Service Finance Etc…
CUSTOMER FACING
Campaign execution, brand control
Up-sell, cross-sell, reference selling
Product Innovation based on customer input
$ – CFO Improved Customer Service
@mfauscette
Building an ongoing customer relationship
10
Awareness
Discovery
Attraction
Interaction
Purchase
Use
Cultivation
Advocacy
(*1) The probability of selling to a new prospect is 5-20% (*2) The probability of selling to an existing customer is close to 70%.
Source: IDC Research & Marketing Metrics (*1,2)
@mfauscette 11
Michael Fauscette
Mike Fauscette
mfauscette
Larry Fauscette
Larry Michael Fauscette
Larry M Fauscette
mike_fauscette
@mfauscette 12
@mfauscette
Why?
13
Q. What specific initiatives are you planning to conduct using social software for BUSINESS purposes in the next 12 months?
N=701, IDC Social Software Survey,, February 2013
0% 5% 10% 15% 20% 25% 30% 35% 40%
Internal gamification (particularly behavior analytics) External Gamification (particularly behavior analytics)
Internal micro-blog External micro-blog for marketing / customer service/
Crowdsourcing External Discussion forum
"Innovation Management (more complex than Prediction market
Internal Discussion forum Geo-Social networking
"Ideasourcing (tools that are used to collect ideas/ File/Content sharing service
Blog/Wiki Online office productivity
Peer feedback Web broadcasting
Enterprise Social Network (including activity streams) Web chat/voice/video over IP applications (including
Recruiting Socialytics (analytic tools and applications used to
Application/Video Sharing Public social network for marketing /customer service/
Social Learning Online communities
@mfauscette
Business Benefit of Community
§ Acquire New Customers
§ Design Better Products
§ Reduce Support Costs
§ Customer Intelligence Driven Marketing
§ Creating Engagement – Finding / Nurturing Influence
14
@mfauscette 15
Business Value of Community - Marketing
@mfauscette
giffgaff
§ Sim card only mobile virtual network provider
§ Community support only model
§ Almost no marketing spend
§ Rewards model
§ 75% of new subscribers WoM
§ Net Promoter Score 73%
16
@mfauscette
Building Advocates
§ American Diabetes Association – Community members 5X more likely to take advocacy actions
§ EMC – social virtual product launches • From a few hundred in person to >10K online
participants • Saving $750K per year in product launches while
increasing effectiveness
17
@mfauscette 18
Business Value of Community - Sales
@mfauscette
Sephora BeautyTalk
§ Personal beauty advice and product recommendations
§ Superfans = >33 hours per month on the community
§ Community users spend 2.5X average customers
§ BeautyTalk superfans spend 10X average customers
19
@mfauscette
Brocade
§ Shifting from indirect to direct model (post Foundry acquisition)
§ New world of “sales”
§ Community • New product awareness • Needs and issues • P2P • Certification • Thought leadership and 1 face to the customer
§ Connecting inside out – outside in • fresh content = engagement • Closer to the customers
20
@mfauscette 21
Business Value of Community - Customer Service
@mfauscette
Mint.com
§ Community based P2P model
§ Increased customer satisfaction and retention
§ 132K registered users – 47,750 topics in 12 months
§ 75% reduction in support tickets
22
@mfauscette
Redefining Support
§ Cisco – Networked approach = 32% reduction in time to resolve and $7M in savings
§ Autodesk – community deflected 25% of call volume = $6.8M in savings
§ Ustream – 55% reduction in support costs
§ Webtrends – 80% issues resolved in community
§ FotoMoto – while growing biz 5X reduced support costs 30%
23
@mfauscette 24
Business Value of Community - Product Innovation
@mfauscette
National Instruments
§ Co-Innovation in product development
§ Better / more useful products
§ >3700 submitted ideas / >73K votes
§ 12+ new features per release
§ $7.5M in call deflection savings
25
@mfauscette
Product Innovation
§ TechSmith – 1200 new product ideas saved $500K in beta testing
§ Telenav - >3K customers shared product ideas
§ AthenaHealth – mobile app built from direct customer input and >1400 product ideas
26
@mfauscette
Business Benefit of Community
Acquire New Customers • Know your customer • Engage your customer • Learn about your customer = Sales Intelligence
Design Better Products • Idea sourcing • Innovation • Voice of customer
27
@mfauscette
Business Benefit of Community
Reduce Support Cost • Peer-to-peer support • Reduced support tickets • Better self-service
Customer Intelligence Driven Marketing • Customer data value chain • Predictive as well as reactive • On target – 1:1
28
@mfauscette 29
@mfauscette
Community Best Practices
§ Communities are not a “field of dreams”
§ Professional management
§ Analytics drive engagement
§ Gamification
§ Cross-function but 1 voice
§ Trust
§ Keep it Fresh
30
@mfauscette
Sense and Respond
31
@mfauscette
And Remember…
32
• Give Value to Get Value
• Connect outside in and inside out
• Silos are the enemy
• Technology isn’t enough – culture and process
• Sense and Respond
@mfauscette
Michael Fausce,e Group Vice President So7ware Business Solu:ons mfausce,[email protected] @mfausce,e about.me/mfausce,e
Thank You
Blog: www.mfauscette.com IDC Social Business Blog https://idc-insights-community.com/groups/it_agenda/social-business
33