How Strategic Social Customer Service Generates

and Preserves Revenue

Kathy Herrmann and Dr. Natalie Petouhoff

Dr. Natalie Petouhoff

UCLA & Executable Strategies

(310) 919-8467

DrNatalie@gmail.com

www.drnatalienews.com

Kathy Herrmann

Measurement & Insight, BCF

(757) 497-4811

kherrmann@boomyourbrand.com

www.boomyourbrand.com

ROI Considerations

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Start with Objectives and

Strategy…

…know where you want to go.

Measure the right results.

The end goal of measurement is not to collect a bunch of metrics but to gain

actionable intelligence…

CXOs will look for actionable intelligence in

monetary terms…

…revenues or cost savings.

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What is ROI? A Numerical view of strategy

And high ROI means executive approval for your initiative.

ROI Primer

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Benefits (Impact on Business)

Cost SavingsReduce call volume

Reduce email volumeIncrease agent productivity

Increase FCRReduce SEO cost

Revenue ImprovementsIncrease customer lifetime value,

including customer retentionIncrease product ideation

Increase lead conversion rates

Examples of Benefits

Costs (Impact on

Budget)

PeopleTraining

Staff

ProcessMarketing of community

TechnologyCommunity website design

Single sign-onIntegration to contact center applications, such as CRM

Platform subscription feeAnalyticsReporting

Cost Examples

Large Call Center

case study

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Annual Results:• Blue Chip services-

oriented company• Revenues = $34.6b• Customers = 100.7m• Total Call Center reps =

30k• Social media team =

25 members

Social approach - Twitter:

• Proactive tweets based on call drivers.

• Conversational tweets to:• Answer questions,• Address complaints.

• Agents friendly, approachable. Given autonomy.

ROI Focus:

1. Agent deflection

2. Customer retention revenue

The Customer Retention Revenue Impact™ Model

• Financial point of view about the value of Customer Service to the organization

• It’s based on the:– Ability to prevent problems – Ability to fix problems– Customer word-of-mouth power and – Company’s financial goals to generate and

preserve revenue

Most customers don’t complain before deciding to leave!

Satisfied85%

Stay Silent98% Complain

2%

101m customers

total

15m customers

at Risk

Churn Risk

Dissatisfied15%

Saving the silent majority = $$$

Aggregate of company’s survey data & call center stats:

Industry averages

Impact of Social Media

• Most complaints are fixed in the call center

• Unresolved complainers can be highly “visible” to others friends/social media

• Social Media team has opportunity to fix 15% of complainers (not resolved by Call Ctr. or who posted their issue in the social sphere and never called)

• Most customers never complain but “suffer in silence”

• Social can resolve issues, and influence “silent sufferers” who watch what we do and say in social media

• One to Many

98% Stay Silent2% Complain

Revenues retained = $10.3m/ yearBy saving a portion of the 15m customers

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ROI Description

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ROI Description

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ROI Description

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ROI Description

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ROI Flowchart – Case Study

ROI = (Gains - Costs)/Costs x 100

ROI Formula

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= ($10.3m - $1.5m)/($1.5m) x 100

= 583%

Steps to Setting Up Social Media Measurement Program

1. Talk with business stakeholders to find out what business goals they want to reach

Examples:• Decrease customer service calls to the contact

center• Increase sales enquiries or conversions by 10% from

social media sources within 3 months

Set up business goals

Goals For Social Media

• Why are you participating in social media?• What percent of your customer base uses which sites? • How will social media improve the customer experience? • How will social media help you build and reinforce your brand? • How will you support agents in monitoring and responding to

social media?• How will social media help you build your knowledge base?• What protocols are in place to help agents determine when

and how they should respond? • How will agents use the knowledge base to support

conversations?

Set Up Social Media Measurement Program

2. Determine what data / measurement process you have.

• Often times companies don’t have a measurement process for social media.

• Sometimes the data required for calculations may be housed in other departments.

3. Determine what you are going to measure:

• Set your key performance indicators.

Set Up Social Media Measurement Program

4. Measure and calculate your baseline.

5. Determine your ROI.6. Make changes to your

measurement process, your social media strategy and do it again.

Benefits to Social Media Measurement Program

• Articulate the business case.• Calculate value & ROI.• Do more of the right things.• Put structure around what can seem unstructured.• Benchmark “As Is” and create a “Could Be” plan.• Justify the plan to upper management by showing

them the business reasons.• Track the progress, gather the right metrics .• Assess the progress & iterate. • Create and sustain a world-class social enterprise

brand.

By calculating ROIyou will gain…

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• Better executive buy-in.• Increase budget spend.• Do more of the right

things.• Get better decision

making- to make the right changes to your company so it stays competitive.

Dr. Natalie Petouhoff

UCLA & Executable Strategies

(310) 919-8467

DrNatalie@gmail.com

www.drnatalienews.com

Kathy Herrmann

Measurement & Insight, BCF

(757) 497-4811

kherrmann@boomyourbrand.com

www.boomyourbrand.com