How Strategic Social Customer Service Generates and Preserves Revenue
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How Strategic Social Customer Service Generates and Preserves Revenue Kathy Herrmann and Dr. Natalie Petouhoff
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20-Oct-2014 -
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Most organizations measure the value of customer service as a cost center. Few take the position of seeing customer service as the provider of customer satisfaction, loyalty and word of mouth. To view customer service as a strategic asset requires that the organization see customer service as a revenue generator and a preserver of revenue. Strategic customer service then provides a new financial view of service and the investments in the end-to-end customer experience. In this talk, we’ll cover strategic social customer service, including: * Impact of social media on customer problem prevention. * Why customer service is PR and PR is customer service. * Large, blue chip company case study for social customer service ROI.
Transcript of How Strategic Social Customer Service Generates and Preserves Revenue
How Strategic Social Customer Service Generates
and Preserves Revenue
Kathy Herrmann and Dr. Natalie Petouhoff
Dr. Natalie Petouhoff
UCLA & Executable Strategies
(310) 919-8467
www.drnatalienews.com
Kathy Herrmann
Measurement & Insight, BCF
(757) 497-4811
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
www.drnatalienews.com
Kathy Herrmann
Measurement & Insight, BCF
(757) 497-4811
www.boomyourbrand.com
