A primer on Social Media: Listen, Build, Engage, Share

If you are just familiarizing yourself with social media and how to leverage it in your organization, Becky Carroll on the 1to1 media blog does a nice job of summarizing the benefits of Social Media, and how companies can leverage tools like Facebook, Twitter, and LinkedIn.  She does a nice job of separating the “cool factor” and hype from tangible benefits that can be reaped.

Has your company leveraged Social Media to deepen customer relationships?Do you have plans to? What question or concerns to you have?  Soundoff.

Guest Blogger Becky Carroll: Social Media Builds Customer Relationships

One of the most common questions being asked right now is this: “What should my company do about social media?” As more and more businesses are jumping in and creating corporate profiles on sites such as Facebook, Twitter, and flickr, marketers are feeling the pressure to jump on the bandwagon. Some of these marketers plan to use social media as a cool set of tools to build awareness about their company. However, it is much more than that. Social media can be an integral part of a strategy to build customer relationships.

Let’s look at how social media can be used to deepen customer interaction and increase customer loyalty.

Social media builds trust.
It allows companies to be perceived as more human. You aren’t just talking to Comcast; Frank Eliason is there for you. You want to know more about Zappos; Tony Hsieh tells it like it is. Customers don’t want relationships with faceless companies; they want relationships with other people. The use of social media hastens the trust-building process by putting people instantly in touch with other people–critical in these days of corporate bail-outs and public uneasiness. Trust is the main component of a strong customer strategy.

Social media builds community.
Customers can’t easily rally around a website, as there is little interaction there; but they can rally around a brand’s presence on social media. What makes these communities so powerful is that many of them have been built and sustained by a brand’s fans. Fiskars, which makes scissors, encouraged the formation of a scrapbooking community. However, it is their customer ambassadors, or Fiskateers, who are responsible for driving the conversation and inviting others to join in. National Instruments uses its community, powered by social media, to bring together business customers to share technical information with each other, which is then used in National Instruments marketing materials. These communities are examples of likeminded people coming together and interacting around a common purpose; in this case, a company’s products and services. Ongoing customer interaction and engagement such as these increase loyalty and ultimately rate of purchase.

Social media increases word of mouth.
It allows information to be shared peer-to-peer at light-speed around the globe. As a result, customers are turning to social media ratings and reviews to research an organization’s offerings before making a buying decision. This is especially true in the B2B environment, where a large number of B2B buyers are participating actively in social media for business–reading blogs, writing reviews, watching user-generated videos, and joining social networks (source: Forrester). All of this enables the rapid spread of company news and information, as well as the sharing of customer success stories. Organizations that enlist their customers to help evangelize their products and services via social media find those customers to be fiercely loyal and willing to share their experiences with others who are like them. This in turn builds trust, as well as the customer base.

Social media enables two-way conversations.
This is the gold in the equation. Where companies used to have to rely on one-way email blasts, advertisements, and direct mail pieces, they can now interact directly with customers via blogs, Twitter, Facebook, and a myriad of other social media tools. More is required than simply hanging out a corporate shingle on these sites, however. Companies need to fit these conversations into their overall customer strategy and marketing communications plan. In so doing, they will be able to gain deep customer insight from these new online interactions, including an understanding of customer behaviors and needs, as well as online reach and influence.

Getting Started
The best way to begin using social media is to stay quiet. Yes, social media enables great customer interactions, but first it is important to do some listening. Once a company has spent time monitoring conversations–about the company, competitors, the industry–only then is it truly equipped to begin participating in conversation. This is the best way to be relevant when stepping forward and inviting customers into your virtual lounge to get to know them, their likes and dislikes, as well as their personal side. The foundation will be laid, and rich customer relationships have every opportunity to blossom from these online engagements.

via Guest Blogger Becky Carroll: Social Media Builds Customer Relationships – Think customers: The 1to1 Blog.

Advertisements

1 to 1 Marketing’s 2009 Voice of the Customer Survey Results

1 to 1 was kind enough to share the results of their 2009 Customer Survey.  In this are some expected responses. Others are perhaps a little more surprising.  At the end of the day, the results reinforce what we all know to be true.  Over time, success in business  is ALL ABOUT CUSTOMER EXPERIENCE.

This Is No Surprise – Or Is It?

1to1 recently conducted its 2009 Voice of the Customer Survey. We asked the question: What is the most surprising thing you learned from customer feedback in the past year? I found some of the responses, well, surprising. What do you think?

Here’s what some respondents had to say:

Customers like to be heard
Given a chance, customers will be brutally honest about how a company treated them and ways to improve [the experience] for other customers.

People wanted to be communicated to more.

Customers desire information from us, other than our direct product and service areas, e.g. partner and community information.

Customers want to be part of the overall strategy of our company.

They were willing to spend time helping me refine my offering.

Their willingness to share their feedback and make suggestions for improvement.

Customers are willing to speak if we ask them.

How willing customers are to talk about their personal experiences, challenges, and problems.

How easy it is to really listen to client concerns.

Customers Like Us!
What a great job our customer care team is doing when handling customer inquiries.

We do better than we thought!

We do a better job of satisfying customers than we realized.

Most of our customers actually like what we are doing.

Or Not…
Our company is sometimes hard to work with.

How difficult we are to contact if you don’t know who the right person is.

Customers really didn’t like our hold music. We saw a 3 point improvement in voice CSAT by simply changing the music.

We had a lack of knowledge about customers and what they are looking for.

Often the things we think we do badly are often not even on the customer radar screen. The things we don’t really regard as important are!

That we overcomplicate our selling model–it is really about engagement versus selling, and leveraging that engagement has been powerful!

Listening Equals Learning
Price is not the determining factor when customer buy.

In an overzealous drive to deliver the best and greatest experiences it is often the basics that we don’t deliver on that crack the foundation of the customer relationship. Customer relationships are like a game of golf: The most amazingly played shot won’t win the round, but a horribly executed one can ruin all.

The same service was differently appreciated in Asia or in the Americas or in Europe.

They are close to the issue, good or bad, and bring a view that at times we do not consider.

The importance of knowing the customer by name.

Our customers were using our website to get more information about us.

How some competitors have caught up with us in replicating our “unique” product mix.

What some of our employees do to break our operational procedures.

“I didn’t know you did that!”

Listening Also Equals Results
There is an indisputable link between improvements in customer experience and its link to bottom-line results.

It’s great to stop and hear what [customer] are saying; this improves our product, which translates to higher prices and revenue.

Listening to customers is a simple way of cutting costs by fixing customers problems or issues.

via This Is No Surprise – Or Is It? – Think customers: The 1to1 Blog.

Is it about the technology, or is it about transforming your business?

Richard Boardman makes a case in his blog post  The CRM Consultant: Independent CRM consultants and their role outside CRM software selection…. that independent CRM consultants have an important role that is seldom recognized or valued.

In making this point, he points out a number of common false assumptions:

That selecting the right technology is the key challenge, and once you are settled on that everything else is straightforward. In reality while technology (and implementation partner selection) is very important, it is by no means the toughest challenge in applying CRM technology. The areas of strategy, process design, and user adoption are far more demanding.

That the quoted price in an accurate representation of what you will end up paying. Since most CRM vendor pricing is provided on indicative or estimated basis what the client ends up paying can be an order of magnitude different from the initial quoted price. The client either has to dumb down the requirements or accept the shift in budget.

That CRM vendors have the ability and inclination to deliver a system that significantly improves performance rather than a system helps them meet their sales targets. The two objectives rarely coincide in my experience.

So often, companies start by asking the wrong question:  Which CRM software technology is best?

They should be starting by clearly defining their CRM strategy, refining their business processes, and definining a clear set of specifications that their business requires. Once this is done, they can go out to find the best fit in the marketplace for their needs.

Start there, and you’ll exponentially increase your chance of success, and more importantly the profitability of your organization

More on Social CRM: The evolution continues

Lots of conversation flying around about what Social CRM is, and what it isn’t. If you use Twitter and/or friend feed, I encourage you to join the conversation at #scrm.

Business and Sales have always been about relationships. People buy from people they like and from people who provide compelling value propositions for their problems.

These principles are timeless, well documented, and well proven.

Technology over the recent course of history, has provided the tools to enable this process to happen more quickly in a more efficient manner. Traditional CRM enables organizations to understand their customer bases better, and provides the backend framework to capture, organize, analyze customer data, and also provides the tools necessary for customer facing individuals to do their job more efficiently and effectively so that the customer experience is exceptional.

Social Media has birthed a new medium for traditional conversations to take place. The fundamentals are still the same. Customers will still buy from people they like and from people who provide compelling value propositions for their problems.

What is different is that an individual in Madrid can have a question pop into their head, and 2 minutes later can have an answer or be engaged with a total stranger in San Diego via the medium of Social Media.

Social Media is simply the next evolution of global internet communications. User Groups, Message Boards, Email have all been the precursors. Social media has just extended the reach and the increased the speed by which these communications happen.

Social CRM is the method of organizing, managing, and analyzing these conversations and interactions executed across the social networking landscape.  In my experience, these interactions are many times a precursor or a sample of what has previously been managed and tracked in traditional CRM systems. My Twitter, LinkedIn, and Facebook interactions sometimes morph into a conversation that justifies an entry into my traditional CRM system, whereby phone calls, activities, meetings, and opportunities are tracked. Social Media Interactions are “Real Interactions Lite”

They are not mutually exclusive, and Social CRM is not the answer for failed Traditional CRM. They are both blends of process, strategy, and supporting technology that enable us to collectively understand and meet the needs of our customers.  Social Media and Social CRM simply provide another component by which to understand, engage, and interact with our customers, partners, and prospects better.