Harnessing the Full Power of Social Media to Drive Customer Loyalty

Transcription

1 Harnessing the Full Power of Social Media to Drive Customer Loyalty Social CRM Strategy for Loyalty Marketers Marc Steiner, Principal Clay Walton-House, Senior Manager Antje Helfrich, Manager 1

2 Defining Social CRM Strategy Deliberate integration of social media into a comprehensive multi-channel CRM strategy, taking advantage of social media s unique characteristics to maximize customer loyalty. 2

3 Social Media Requires Special Focus from Loyalty Marketing Social represents a large opportunity for driving loyalty, but Is often underutilized by loyalty marketers: Historically a channel focused on brand and acquisition An organizational function often separate from Loyalty Marketing teams Often integrated with loyalty strategies on ad hoc basis Converting on the opportunity presented by social media requires an intentional approach. 3

4 The Opportunity at Hand What Social Media Presents to Loyalty Marketers 4

5 The Social Media Landscape Continues to Mature 65% of consumers use social to connect with brands and research products One in five customers engage with a brand on social media after a purchase to make sure they are getting as much value out of their purchase as possible Brand fans are 11% more likely to continue using the brand, and spend 43% more than non-fans! 5

6 The Social Media Landscape Continues to Mature 65% of consumers use social to connect with brands and research products One in five customers engage with a brand on social media after a purchase to make sure they are getting as much value out of their purchase as possible Brand fans are 11% more likely to continue using the brand, and spend 43% more than non-fans! Social is the second fastest growing marketing channel (after Mobile) Social Media spend expected to double by % of leader companies prioritize incorporating social media touch points into CRM (compared to 26% of follower companies) 6

7 As a Channel, Social Media Presents Unique Advantages for Loyalty Marketers NEAR REAL TIME PROVIDES IMMEDIACY PEER TO PEER CUSTOMERS OWN AND INFLUENCE THE EXPERIENCE ENABLES TWO-WAY CONVERSATION 7

8 As Functional Disciplines, Social Media & Loyalty Marketing Intersect in Three Key Areas ENGAGING & BUILDING RELATIONSHIPS WITH THE BASE Retention & loyalty optimized content Exclusive offers Loyalty program integration Peer to peer engagement: building a community around the brand INTERCEPTING DETRACTORS & MITIGATING CHURN Identify at-risk customers Mitigate low engagement / churn risk Mitigate detrimental brand impact LEVERAGING PROMOTERS Identify influential promoters Amplify promoters voices programmatically Leverage promoters for acquisition 8

9 A Social CRM Strategy Framework Helps Define Key Activities for Leveraging Social in Loyalty Marketing DRIVE CUSTOMERS TO SOCIAL CHANNELS ENGAGE & SUPPORT BASE INTERCEPT DETRACTORS LEVERAGE PROMOTERS 5 BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM Pillars 2, 3, and 4 in the framework represent the primary focus of loyalty marketers in developing and executing a defined Social CRM strategy. 9

10 The Challenges What Prevents Loyalty Marketers from Harnessing the Full Power of Social Media 10

11 Many Companies Face Significant Challenges in Harnessing Social Media Only 52% of companies have executives that are informed, engaged, and aligned with social strategy Only 48% of companies state that they have a clear vision of how social media will improve customer relationships Only 34% of companies have clear metrics that associate social activities with business outcomes 11

12 Challenges Fall within Three Key Areas #1 LACK OF ORGANIZATIONAL ALIGNMENT #2 LACK OF CUSTOMER INSIGHTS RELATED TO SOCIAL MEDIA #3 TECHNOLOGY & DATA LIMITATIONS 12

13 Challenge #1: Lack of Organizational Alignment Social media functionally siloed or highly matrixed Social KPIs not aligned to overarching business objectives Executive skepticism Unknown ROI Weariness over less controlled conversations & properties 13

14 Challenge #2: Lack of Customer Insights Related to Social Media Customer Desires for Social Engagement are Unknown Customer Social Usage Behaviors are Unknown Types of social properties used Type of devices used Types of conversations customers have in social channels Who they talk to, and how often 14

15 Challenge #3: Technology & Data Limitations Social Media Technologies have not Reached Scale Social Listening Tracking, Measuring, & Reporting Automation Data is Distributed & Difficult to Leverage Social media data is separate from other customer data sources Difficult to append data from social properties to broader customer data Difficult to identify and match customers to social media profiles Test & Learn Capabilities Lack Scale 15

16 From Opportunity to Strategy Developing a Social CRM Strategy to Harness the Full Power of Social for Loyalty 16

17 4 Steps to a Develop a Social CRM Strategy 1. Confirm Customer Base Marketing Goals 2. Assess Current State 3. Identify Opportunities & Required Investments 4. Prioritize & Plan Implementation 17

18 1. Confirm Customer Base Marketing Goals Loyalty objectives will vary by company / product / industry e.g.: Subscription business with high cost of care (telecom, cable, SaaS) BUSINESS OUTCOMES REDUCE CHURN DRIVE SAVINGS INCREASE REVENUE NPS Key Drivers Renewal Save/Winback Care Call Deflection X-Sell / Upsell Referred Subscribers KPIs KPIs should tie to measurable business outcomes that drive bottom-line impact; though seemingly obvious, this is a common misstep that companies make; e.g. using number of Facebook fans as desired business outcome. 18

19 2. Assess Current State Once overarching desired business outcomes have been established, a comprehensive understanding of the Current State must be achieved. Understand your audience Assess programs and capabilities Loyalty insights Social media technographics Social media coverage Behavioral data Social footprint Programs, campaigns, content Teams, agencies Operating model, processes, governance Data, systems, tools Survey the landscape Internal: executive support, social competencies Competitors Best practices 19

20 3. Identify Opportunities & Required Investments Current State understanding then informs identification of potential Social CRM programs and required resources needed to deliver results. Potential programs and tactics should be informed by: Opportunity assessment includes review of investments needed: Audience Insights Internal Inventory Competitors No New Capabilities Required Requires Realignment of Existing Capabilities Requires Net New Capabilities Best Practices 20

21 3. Identify Opportunities & Required Investments Identification of new Social CRM programs and tactics can be facilitated by use of the Social CRM Strategy Framework; e.g. what tactics will best address pillar #2 engaging and supporting your customer base? DRIVE CUSTOMERS TO SOCIAL CHANNELS ENGAGE & SUPPORT BASE INTERCEPT DETRACTORS LEVERAGE PROMOTERS POTENTIAL PROGRAMS & TACTICS 5 BUILD CAPABILITIES TO SUPPORT TRUE SOCIAL CRM REQUIRED CAPABILITIES 21

22 4. Prioritize & Plan Implementation New Social CRM programs and tactics should be prioritized based on how effectively they support the desired business outcomes and KPIs established earlier in the strategy development process. REDUCE CHURN DRIVE SAVINGS INCREASE REVENUE NPS Key Drivers Renewal Save/Winback Care Call Deflection X-Sell / Upsell Referred Subscribers NPS among Followers / Non-followers Correlation with Engagement Renewal Offers by Channel Content Views x Topic Call Volume x Topic Campaign/ Offer Performance Offer Shares Referrals SOCIAL KPIs & METRICS 22

23 Following this Process to Define a Social CRM Strategy Delivers Significant Business Value CLEAR CHARTER FOR HOW SOCIAL MEDIA CAN DRIVE LOYALTY ALIGNMENT OF FUNCTIONAL RESOURCES WITH CLEAR MAPPING TO OVERARCHING BUSINESS OBJECTIVES IMPROVED CUSTOMER EXPERIENCE IMPROVED CUSTOMER INSIGHTS 23

24 About Lenati 24

25 Who We Are Lenati partners with clients to develop innovative sales and marketing strategies, elevating customer experience and transforming how companies go to market. We help organizations build stronger customer connections. Our Expertise Lenati s services address four broad areas of customer need: Select Clients Lenati works with a variety of Fortune 500 companies: 25

26 What We Do Tailored to the unique needs of our clients, we provide deep expertise centered on creating customer connections through four primary solution areas: Helping clients confront common challenges: New product introductions & product revitalization Expansion to new markets and new channels Customer acquisition, retention & growth Marketing and sales execution, optimization & measurement Sales team creation, transformation & enablement Loyalty and retention strategies and programs Channel partner selection, on-boarding & management 26

27 Customer Retention & Loyalty Services Loyalty Insights & Analytics Develop a 360 profile of your customers Customer Research Segmentation & Modeling Data Mining Retention & Loyalty Strategy Build the vision to improve customer engagement Strategy Definition Segment-Specific Models Business Valuation Loyalty Program Design Build, launch, enhance or retire a program Program Design Program Optimization Re-launch or Retirement Streamlined CRM Operations Get the most out of your people & process Organizational Design Process Improvement Program Integration & Consolidation Technology Platforms Evaluation & selection of supporting technologies Mobile Strategy Social CRM Strategy CRM & Marketing Automation Platforms Loyalty Program Platforms 27

28 About the Authors Clay Walton-House, Senior Manager Retention & Loyalty Services As the leader of Lenati s Customer Retention & Loyalty Team, Clay helps Fortune 500 companies create and implement new and interesting customer engagement strategies that accelerate growth and build loyalty. His expertise lies in understanding consumer behavior and translating it into actionable customer insights. Clay has a proven track record of successful program design & optimization and CRM operations, helping uncover ways to build retention and loyalty strategies into a company s broader business model. Marc Steiner, Principal Customer & Product Strategy Services Marc leads Lenati s Customer & Product Strategy Team, and has a passion for combining his 20 years of management consulting expertise with insights from fields as diverse as demography, anthropology, military strategy, and religious studies to help rethink fundamental approaches to product and customer strategy. Marc has been an advisor to companies across numerous industries, including leading brands like Starbucks, T- Mobile, Microsoft, and Adobe. Antje Helfrich, Manager Social Media Marketing Services Antje has over 15 years of experience working in the intersection of business, technology and consumers, both inside corporations and as a consultant. She has an extensive track record in strategic planning, market and customer research, and marketing and program management. As head of Lenati s Social Marketing practice, Antje has recently developed a Social Marketing Operating Model and a Social Measurement Framework for a Fortune 50 global company, and a Social CRM Strategy for a leading wireless carrier

29 Connect with Us Headquartered in Seattle 1300 Dexter Ave N. #100 Seattle WA Phone: (800) Lenati.com Twitter.com/LenatiLLC LinkedIn.com/company/Lenati-LLC Facebook.com/LenatiLLC 29