From Social Media to Social Customer

Relationship Management
Carolyn Heller Baird and Gautam Parasnis

Presented by: Rana Chahine

Presented to: Dr. Tarek El Badawy
Specialized Media Management
MMBA

Being where customers are

Time
Attention

Customers

Endorsement
Data

Money

But are customers as

enthusiastic?

Revenue
& Profit
Cost reduction
Efficiencies

Social Media in Numbers

In 2010 there were more than 500 Million active users on
Facebook
Today Facebook reached 1 Billion monthly active user
By March 2010, more than 10 Billion messages, or Tweets
By July 2010, this number doubled to 20 Billion
Today 500 million tweets per day
and around 200 billion tweets per year

Customers are now driving the conversation

A new strategy social customer relationship management
To successfully exploit social media potential organizations need to build
special CRM strategies
From managing customers to facilitating collaborative experience and dialogue
Understanding what customers value:
1- What triggers a customer to seek out a company or brand via social media?
2- What would make a customer reluctant to interact?

3- Does social engagement influence customers feelings of loyalty toward a company?

Study Methodology
Survey 1
1000 Customer
- Who is using social media?
- What sites they frequent?
- What drives them to interact?
Tangible value

Survey 2
351 Business Executives
- Why they think
customers are interacting?
To feel connected

Consumers all over the world, across all generations, are swarming to
social media, but most interact only occasionally.
Its about friends and family not brands
What consumers really want.
The advocacy paradox.

Implications for companies

Even for customer-focused organizations, they are experiencing the
growing pains of change and uncertainty
Nearly 70 percent of executives say their companies will be perceived as
out of touch if they dont engage
Social networking user data can be deceiving.
Customer interaction breakdown;
- Engaged Authors 5 % (brand evangelists)
- Casual Participants 75 % (rich reserve with potential to engage)
- Silent Observers 20 %
It will likely take a targeted, multichannel campaign that rewards
customers for using a social option with further incentives to motivate
them to actually interact.

Implications for companies (2)

Social networking sites

Media sharing sites
Micro-blogging sites
Wikis
Blogging sites
Social review sites
Social bookmarking
sites

Percentage of companies with a profile on a social site

Its personal
70 % Connecting with network of friends and family.

23 % Interacting with brands.

Engaged Authors; 60 % interact with companies & 92% family and friends.
Over half of consumers claimed they dont interact with brand via social
media due to;
- 47% Privacy issues - 42% Spam
- 34% Disinterest
The majority of customers noted they need to feel the company is;
- Honest (Transparent communication)
Third of customers were either lukewarm about this or felt their company
culture was not supportive.
Companies that struggle with transparency risk being perceived by
customers as insincere or manipulative. Authenticity is a must!

Perception gap
Perception versus reality

Perception gap
Consumers list getting discounts or coupons and purchasing products
and services as the top two activities, respectively.
Businesses are three times more likely to think consumers are interested
in interacting with them to feel part of a community and to feel connected
to the brand.
Consumers are willing to interact with businesses if they believe it is to
their benefit
The wish for intimacy is not what drives most of them to interact.
Welcome news to companies that want to monetize social media is; that
customers desire to use social sites to transact with businesses.
Exclusive offers and sales will outweigh privacy fears and the impulse to
purchase immediately can be strong.
FLOWERS.COM, Delta Airlines

The advocacy paradox

Businesses are betting that social media interactions will engender increased
customer loyalty.
70 % of business executives believe reaching out to customers via social media
will help them increase customer advocacy
Consumers say they need to be passionate before theyll engage. (Have affinity to
the brand)
64% passion for a brand is a prerequisite for engagement
- 38 % favorable influence - 33 % not make them feel more loyal - 28 % neutral
Influence on spending
- 49 % lead to future purchases -27% will not be influenced - 24 % neutral
Recommendation from a friend or family member could make a difference
Companies can take advantage of this dynamic by designing social media
programs with the explicit goal of touching customers emotionally and
motivating them to share their experiences with others.

Case Studies
Cold Stone Creamery
real value for real friends
Enabled followers to send
tangible gifts to friends.
Add a personal message.

American Express
Small Business Saturday
crossing the emotional divide

They tapped into consumers

desire for discounts.
their concern for their communities
economic wellbeing.
Linked social media interaction with
Supported small businesses.
concrete consumer behavior patterns to
For each like, American Express
increase profitability.
donated a dollar to a popular charity.
They monetized their Facebook

American Express raised US$1 million

for charity

Recommendations & Next Step

1-Its a game changer

4- Think as a consumer

consider their social media interactions in

the context of other customer touch points
with the company.

to interact with your company

- Think of their customers holistically and

2- Social Media is not like others

- The mutual benefit of the customer
and the business.
- Customer are in control

3- Seamless Experience

- It is not a standalone program, it

should be integrated with other
customer-facing initiatives

- Ask why a customer would choose

5- Ask
- Polls, idea jams and challenges
- Let customers participate
- Building advocacy and brand affinity

6- Monetize

- Quick easy transactions

- Social commerce campaigns
- Discounts, incentives

Thank You