Dm arts d1-s2-george mikaelian-nielsen-nmincite-serving social-2

Copyright 2010 NM Incite. This text is for position

only.

Serving Social: Using Social Media to elevate your Customer Service

George Mikaelian

Head of Media MENAP

Nielsen

@Socialmedimouth

Digital Marketing Arts

Conference and workshop,

Cairo on 10-11 Sep. 2012

Copyright 2011 NM Incite. Confidential and proprietary.

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NM Incite -- The basis of our perspectives on Social

Media Trusted data provider, leveraging proprietary technology

and buzz sources from 180+ million social media sites – across

Twitter, Facebook, blogs, message boards, and customer reviews

Global reach, in 21 countries (and growing)

Access to Nielsen’s proprietary consumer panels for online, TV,

and retail purchases

Benchmarks and insights from over 150 clients,

especially in health care, CPG, retail, auto, CE, financial services

Market leader in enterprise social media monitoring/

analytics (Source: Forrester)

Industry-leading expertise in digital marketing,

product development, and service operations

Capability-building initiatives to enable incorporation of

social media into core organizational processes

Functional expertise in translating social media metrics

and insights into action and sustained improvement


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Social media has grown rapidly – today nearly 4 in 5 active internet

users engage in social media

Note: 1) Includes “member communities” such as Facebook, blogs, message boards / forums, and YouTube

SOURCE: NetView & @Plan Data; Nielsen Q1 2010 Consumer Confidence Survey;

• 21% publish or own a blog

• Spend 3x more time on blogs and social networks

than on email

2011 2003

Social Media Use1

% Active Internet Users

+62%

2005 2011

YouTube Growth

% Active Internet Users

Users average 55

minutes on

Facebook every

day

-

20,000

40,000

60,000

80,000

Facebook Growth

Monthly Minutes Spent on Site Worldwide

(Millions)

2004 2011


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…largely driven by real world connections and the desire to view and

contribute to reviews of products and services % Social Media Users Ever Doing Activity

Family Contact

Find/Maintain Old Friends

Find New Friends

Read Consumer Feedback

Learn about Products

Get Coupons, Promos

Give Positive Feedback

Give Negative Feedback

Entertainment

Creative Outlet

Gaming

“How To” Info

Follow Celebrities

Dating

Family / Friends

Products / Services

Lifestyle / Entertainment

Career / Networking

Business Contact

Find a Job

SOURCE: NM Incite – The State of Social Media Survey, 2011

26% of online

discussion mentions

a product, service or

brand


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In the Middle East and Arab world, Facebook has become a leading communication medium with around 27 million users

26.7 Million Facebook Users in MENA

36% Facebook percent penetration among Internet

users

+36,000 New Facebook Users every day from

MENA

44% of users login at least once a day

75% of users login at least once a month


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Egypt, The Internet Outburst!

A boost in Internet penetration in Egypt

2.534.37 5.57

7.15 8.2511.65

17.921.6

29.433

0

5

10

15

20

25

30

35

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: MCIT, the future of the internet economy in Egypt

In 2010, Internet penetration in Egypt

reached 29% and in July 2011 to 33%*

accounting for more than 26 million

users across the nation!

• FB penetration in Egypt is 14.36% (11.5Mill. Users)

• 21% growth Vs. 6 months ago

• Largest age group 18-24 (38%) of FB users


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Purpose of Usage Top Activities

Mobile Internet Users Usage Patterns – Activities and Purpose

7

Base = 235 Base = 235

• Checking Facebook is the most activity done online, this percentage increased from 42% last year to 56% this year which is

an impact of the revolution

•Purpose of usage among all age groups is mainly personal, it becomes more business oriented in the age group 45 to 54 years

old.

%

+14%


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Media in 60’s Media in 90’s

The Origins of ‘Personal Entertainment’

Media Today

Cutting the Clutter? That’s a toughie

Online’s share continues to increase


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People have more ways to complain, praise, recommend, caution…

Emerging Markets Developed Markets


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Customer Satisfaction

… and why brands should take note.

Generation Y/C is

increasingly using

Social Customer

Service

Companies are

using Social Media

Marketing for

business

customer service

can become a

revenue

preservation and

generation center

Consumers will get

snapped up by a

competitor

monitoring your

brand name


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Why it’s obvious?


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…largely driven by real world connections and the desire to view and

contribute to reviews of products and services 26% of online

discussion mentions

a product, service or

brand


14

Which Industry is most Socially Driven?


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Trend analysis of Customer Service comments in the MENA region

15

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Social Media Types: Twitter, Groups, Boards, Blogs, Video and Images, Facebook

• 22 777 customer service

mentions in Q1 2012

• An average of 258 comments

per day

• The peaks are on Tuesday


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Industry and Customer Service comments in the MENA region

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By crossing the general mentions on Customer Service in the Middle East blogosphere with

keywords about 2 specific industries we found that Telecom is by far the major industry where

online consumer voice they opinion online in English and Arabic for the last 3 months.

Social Media Types: Twitter, Groups, Boards, Blogs, Video and Images, Facebook

19.59% 80.41%Customer Service

Financial Services Telecom


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Social Care Channels - Telecoms

17

FB

1.8Mill

FB

1.6Mill

FB

480k


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Why companies should invest in Social Care

Good experience – Gets you customers Bad experience – Push them away

82% of people have stopped doing business

with a company due to bad customer service

Harris Interactive, Right Now, TechCrunch, SatMetrix

95% of customers have taken actions as a

result of bad experience

40% of people began purchasing from a

competitive brand because of its reputation

for great customer service

55 % are willing to recommend a company

due to outstanding service


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Top reasons behind customers switching brands

Harris Interactive, Right Now, TechCrunch, SatMetrix

• Interaction with a rude employee

• Unexpected charge or fee

• Poor quality of product or service


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Consumer displeasure can have a multiplying impact


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Customer service in Social Media is all about the positive experience you

provide…

1. It’s the little details that can set service apart from the competition

2. Exceed Expectations and Build Opportunities for Repeat Business

3. Offer Consistent Social Service by Implementing Social Care Training

4. Keep track of the Good, the Bad and the Ugly customer service experiences

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… to improve the value of your front-line employees

Improved customer satisfaction scores

Reduced escalations

A common service language

Improved staff morale and reduced turnover

Reduced costs 22

Social media customer service

Leadership Analysis of Word of Mouth help to get buy-in for

implementing Social Customer Service.

Culture You have to implement the right culture favorable to

interactions with consumers using Social Media

Training “Offline” Customer Service Staff don't have the skills to

engage with customers via social media.

Legacy It requires a change in the Call Center architecture to

integrate Social Care as part of the department.

Ownership Is it Customer service, Marketing or Communication

department?


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Social media has expanded the traditional boundaries of

customer service, especially in addressing non-directed

service issues Expansion of customer service

through social media

“Traditional” customer service

Other consumers Company

Supply: Who responds to customer service queries

Directed to

company

Not directed

to company

(floating)

Example service strategies

A

C D

B

ILLUSTRATIVE

▪ Employees answer directed

queries through a company

Twitter/Facebook group

▪ Traditional channels

▪ (e.g., call center, email)

▪ Store sales associate/rep

Dem

an

d:

Cu

sto

me

r s

erv

ice

qu

eri

es

▪ Until only a few

years ago,

companies

primarily serviced

customers

through A

▪ Social media has

magnified the

importance of B,

C, and D

▪ Other consumers answer

directed queries posted on

online community hosted by

company

▪ Leverage user generated

content, such as “how-to”

videos

▪ Influencers answer non-

directed queries

▪ Use online social media

listening/insights to monitor

and respond to non-directed

queries

▪ Employ a company sponsored

persona to respond and

interact with customers in key

forums


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I expect a company response w/in 6 hours

% Social Media Users

18-34

35-54

55+

I want to easily talk with companies


18-34

35-54

55+

I will help other consumers with products I like1


18-34

35-54

55+

I expect a company response w/in 12 hours


18-34

35-54

55+

Customers expect prompt responses from companies through social media

and want simple ways to communicate with them

Note: All charts show % respondents rating 4 or 5 on a scale of 1=strong disagree and 5=strongly agree to the statements above

1) % of consumers that would be willing to provide “customer service” to fellow consumers for products/services that they use and/or like

SOURCE: NM Incite – The State of Social Media Survey, 2011


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Shifting customers to social media channels is more cost effective and

produces higher satisfaction than traditional models

Estimated Average Cost Per Customer Contact – By Channel

$, 2011

Note: 1) % Online retailers currently offering customer service channel; 2) MGI Web 2.0 Survey (2011)

Source: Forrester Research; McKinsey Global Institute; Team Analysis

ESTIMATE ONLY

35% of companies

experienced a 10%

reduction in support costs

from implementing Web

2.02

$6-$12

$5 $2.5-$5

$1 <$1 <$1

Availability1 86% 25% 96% <10% 23-50% 16-37%

Customer

Satisfaction


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Social media customer service levers

Reduce customer churn Faster Response Times, Issue Resolution, & Transparency

Proactively improve products based on customer feedback

Social media can be used to pull a series of levers to reduce service costs,

increase customer satisfaction, and drive sales

Reduce service costs

Improve loyalty/repeat usage

Drive upsell/cross-sell

Drive up-sell through

service channel by

improving experience

Improve quality of customer touch points

Offer additional products through the service channel

Improve acquisition through

referrals and advocacy

Turn negative experiences into loyal customers &

brand advocates

Use as early indicator of call

volume

Improve response time & alert call centers based on service

issues picked up online

Diagnose and fix broken

processes/products

Identify broken processes within the organization based on

customer feedback

Improving efficiency and customer experience

Avoid negative flare-ups Address negative PR issues early

Reduce reach of Negative viral messaging

Improve overall agent

productivity

Reduce agent-assisted interactions (e.g. reduce reliance on

call center)

Improve reservoirs of customer generated knowledge to

provide better answers to customer service related queries


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Thank You

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