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2013 CRM Evolution Conference Session: Getting Maximum Value from You Customer Community Investment

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Conference session at CRM Evolution 2013 held 8/19-21 )session was 8/20) on "Getting the Maximum Value from Your Customer Community Investment". Includes some case study data and best practices.

Published in: Business, Technology
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2013 CRM Evolution Conference Session: Getting Maximum Value from You Customer Community Investment

  1. 1. Getting Maximum Value from Your Customer Community Investment Michael Fauscette, Group VP, Software Business Solutions about.me/mfauscette @mfauscette
  2. 2. @mfauscette 2
  3. 3. @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
  4. 4. @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
  5. 5. @mfauscette 5
  6. 6. @mfauscette 6
  7. 7. @mfauscette 7 Expectations Experience Satisfaction Getting it “right”
  8. 8. @mfauscette 8 Sales Finance Etc…ServiceMarketing CUSTOMER FACING (CONNECTED) NON-CUSTOMER FACING (DISCONNECTED) Customer Relationship Management? Data optimized by functional area Source: IDC Research
  9. 9. @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 $ – CFOImproved Customer Service
  10. 10. @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)
  11. 11. @mfauscette 11 Michael Fauscette Mike Fauscette mfauscette Larry Fauscette Larry Michael Fauscette Larry M Fauscette mike_fauscette mfauscette@gmail.commfauscette@me.com mfauscette@iCloud.com mfauscette@idc.com
  12. 12. @mfauscette 12
  13. 13. @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
  14. 14. @mfauscette Business Benefit of Community §  Acquire New Customers §  Design Better Products §  Reduce Support Costs §  Customer Intelligence Driven Marketing §  Creating Engagement – Finding / Nurturing Influence 14
  15. 15. @mfauscette 15 Business Value of Community - Marketing
  16. 16. @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
  17. 17. @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
  18. 18. @mfauscette 18 Business Value of Community - Sales
  19. 19. @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
  20. 20. @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
  21. 21. @mfauscette 21 Business Value of Community - Customer Service
  22. 22. @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
  23. 23. @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
  24. 24. @mfauscette 24 Business Value of Community - Product Innovation
  25. 25. @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
  26. 26. @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
  27. 27. @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
  28. 28. @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
  29. 29. @mfauscette 29
  30. 30. @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
  31. 31. @mfauscette Sense and Respond 31
  32. 32. @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
  33. 33. @mfauscette Michael  Fausce,e     Group  Vice  President   So7ware  Business  Solu:ons     mfausce,e@idc.com     @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

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