Social: Session 8: The Force Multiplier for Your Business

Presentation Title

TRACK NAME

Customer Service:The Force Multiplier For Your Business

Social

Dr. Natalie Petouhoff

www.drnatalienews.com@drnatalie

04/07/2023 ©2012 SugarCRM Inc. All rights reserved. 2

http://www.drnatalienews.com/

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How a company delivers Customer Service is…

Essentially a reflection of the values and consciousness of a company, especially the leadership

I predict it’s a reflection of their long-term viability in the marketplace

As you think about this, what companies come to mind?

United Airlines (UBG)Zappos


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United Airlines And

Dave Carroll


One of the reasons social customer service

is so powerful is that Customers use social

media to express their frustration

Long story, short-Dave’s guitar was broken in transit by United Airlines

July 6, 2009

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Does the company listen?


Dave gave United the option to

co-write the song.

Would it be about a good or bad

customer service experience?

The song reflects the poor customer service experience.

What if all customers did this?

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Consumer Advocates…


Like Dave are on a mission

He has Videos Speaking career Website and Book

Dedicated to this idea of companies listening and changing…

www.UnitedBreaksGuitars.com

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The media looks to social media for stories


Stories like Dave’s end up on CNN…

Shouldn’t that be enough to drive change

within a company?

Call it the embarrassment factor…

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Another Consumer Advocate…SCRM expert…


April 19, 2012

Dave Carroll: July 6, 2009

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And then there’s Zappos… $0 to $1B in 10 years... Their revenue and growth strategy? Customer

Service. They turned the marketing funnel upside down!


I have clients that say, “Pls don’t compare us to Zappos.”

Why not? They are doing something right…

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To convince leadership how important Customer Service is…

That Customer Service can be a revenue generator and preserver…

….We need more structure around this concept for it to stick in business…

That structure requires a pattern interrupt…


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The Boyd Affect

Meet John Boyd (military strategist) Colonel and Fighter Pilot His theories highly influential in the:

MilitarySports and Business.


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The Boyd Affect




Carl von ClausewitzOn War The Fog of War

http://en.wikipedia.org/wiki/Carl_von_Clausewitz

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The Boyd Affect




Carl von ClausewitzOn War The Fog of War Sun Tzu

Art of War

http://en.wikipedia.org/wiki/Sun_Tzu

http://en.wikipedia.org/wiki/Carl_von_Clausewitz

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The Boyd Affect

He is known for:Decision CycleConceptual Spiral


How does this apply to

Social Customer Service?

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Boyd created the OODA Loop

It’s how we generate the new actions & ideas

we need to thrive and grow

in an uncertain and competitive world.


Note to self: sounds like something we could use to deal

with the changes social media is bringing to companies

“Discourse on Winning and Losing”By John Boyd

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The Boyd Loop: OODA


Observe: the collection of dataMake use of the best sensors and other intelligence available

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The Boyd Loop: OODA



Orient: analysis and synthesis of dataPut the new observations into a context with the old

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The Boyd Loop: OODA




Decide: determination of a course of action Select the next action based on the combined observation and local knowledge

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The Boyd Loop: OODA




Decide: determination of a course of action Select the next action based on the combined observation and local knowledge

Act: action of those decisionsCarry out the selected action, ideally— while the competitor is still observing your last action

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How fast does your company OODA?

Do you have systems to monitor/measure what employees know, think & feel?

Do you have systems to monitor/measure what customers know, think & feel?

Do you take that information and integrate it into your company?


Sounds like what Deming said to do!

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Collect Alert Use Improve TellFeedback Staff Insight Customers

Most Companies Don’t Listen or Integrate Feedback

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Now consider two companies…



Company 1

How fast do you OODA compared to your competitors?

Company 2

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If Company 1 OODAs faster than Company 2



Company 1

You’ll have a decided time advantage over their

competitor

Company 2

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Are You On Track?


In military operations, OODA takes place in seconds

In corporations, its slower Strategy is rigidly followed till next years’

planning cycle It’s critical to validate we’re on track

or correct it

Especially in the Age of Social

Business

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It not jus about OODAing OnceIt’s the OODA LOOP:


The results of your actions become the observations to re-orient

you to make your next decision

Repeated OODA = Success

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What Happens When a Company Doesn’t OODA?


NetflixAnnounced the price change on the blogBlog post said, “If you don’t like it, you can cancel your account.”And provided the link to cancel your account

July 12, 2011

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Using Social Media Monitoring*-- There’s a Spike


Related words:• Increase• Angered• Cancelled• Drop• Greedy• Redbox

*Source: Sysomos

July 12, 2011


Despite the 7/12/2011 Reaction• 81,789 comments on Facebook• 1,429 positive

Netflix sent out a notice

on the price hike

on Sept 19th, 2011

July 12, 2011

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Can Your Company Stand Negative Press?


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Can You lose 800,000

Customers?

A PR announcement

results in 100’s of calls to

the contact center


PR is Customer ServiceCustomer Service is PR


Did they • Observe?• Orient?• Decide?• Act?

In ways that forwarded their business?

They did the opposite-Lost customers

Cost the company in customer service calls

Where did NetFlix Missfire in OODAing?

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We need a paradigm shift in Customer Service


Where does innovation come from?Most companies think of Customer Service as a Cost CenterZappos made Customer Service their revenue preservation and generation model.


They no longer want to take what’s handed to them

They have a way to make their voice heard Its called social media / that’s why it was

invented People wanted a two-way conversation

Customers are at the boiling point


Go back in time, people were predicting this

• There would be a place in time• Where the customer would be in

charge of the brand’s message• And there would be an enabling

technology• That would give them a far-reaching

voice• We are here now

This is your opportunity to drive innovation & change…

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Burification Points and Paradigms


It can take a long time for a paradigm to shift Example:

Mechanistic point of view, Newtonian Physics to Quantum PhysicsFrom thinking in particles to waves

Burification pointLike a pot of boiling water, things bubble, sometimes for a long timeAnd then, what seems like all at once, the pot boils overWhen it boils over, it’s a burification pointPop!!

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But United Airlines Still Doesn’t Get it


April 19, 2012

Will businesses take heed and

change?

Mary Ellen Headed Up iRobot’s

Social Customer Service

Took A Complicated Technology And Made It Into A Consumer Product…

iRobot used social media as a better way for all departments to

do business…

iRobot began listening to what was being said in social media….

• Heard what her customers were saying

• It was not always positive – and was stopping sales! • Gathered screenshots

• Put them in a powerpoint

• Gave them to her CEO

“My Roomba doesn’t pick up pet hair #frustrated”

“My Roomba isn’t working – can’t fix it #fail”

Roomba took charge of the social customer interactions...

The CEO appointed her the

lead on social customer interactions…

iRobot used social media data to examine business processes, systems and productivity benefits vs. costs

Reduction in call volume and call center costsSuperusers answer customer questions

Increase positive sentimentIncrease positive word of mouthCustomers become marketersIncrease in sales

New product linesSpecific products based on customer’s wants

…the results were a business transformation…

With less Politics and resistance “Not invented here” or “not my problem”

Social media lead to transformation of:

Engineering, Product Development, QAFulfillment, Order Management,Marketing, Sales and Advertising

Chalk it up to the “Witness” factor

What did iRobot do?

What did iRobot do?

OODAing in ways that forwarded

their business!

This is the promise of SocialCustomer Service

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Why Is Social Customer Service So Important to OODAing?


Marketing: Maybe they send to many emails Sales: Unless you have a horrendous

purchasing experience, its not often you are mad at them

Social Customer Service: Is the customer-company interface where OODA countsIts when you get the information to put into the OODA loopYou get crowd sourced information

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But companies don’t see Customer Service as the key to innovation, change, competitive advantage…


• Yet it’s the Reality Check for:• PR Brand Promises• Marketing Messages• Sale Promises• Engineering, Manufacturing

Delivery…

Source: http://www.buzzmachine.com/archives/cat_dell.html

Dell Hell: it started with a post

History provides perspective to see future opportunities…

Source: http://www.slideshare.net/DomHind/dell-ideastorm-community-involvement-presentation

“DELL SUCKS. DELL LIES. PUT that in Your Google and smoke it…” And gained momentum…

And Led To Dedicated Haters…

Dell’s Progression: 2005-2012

2005: Jeff Jarvis Incident• Customer/Blogger heard by

many• Other issues happened

• Battery explosion• Didn’t understand the

power of social media to rally against a company

Company still was not listening• Lead to profit loss• Drop in share price• Disgruntled consumers

Dell’s Social Media Command CenterSocial Media Monitoring…

Listening & responding to the social networks…

25,000 daily Topics, posts…

Not including twitter…Look for trends, issues, sentiment, share of voice…

2012 Dell FINALLY applied OODAing

And Dell goes a step further…

• Product Development• Marketing• Online Presences• Sales• Customer Service• Communication

Dell OODA’s with social media insights

across the whole organization….

Dell uses the social media data

to bring Lovers and Haters of the brand together to

learn:

“What would be better if…”

Dell’s OODA’s withCustomer Advisory Panel Mtgs

Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved

Dell takes social media data & customer feedback and integrates it into their

business…

Dell uses the customer relationships they create in social media to sell more product…• In ’09, Twitter resulted in sales of $6.5M• Sales increased 3x with their ratings and reviews

content

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Social Customer Service is Force Multiplier

A Force Multiplier multiplies the effect of

the existing forces

Ascribes a greater value to the same number of

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Social Customer Service… Takes the existing forces


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Customer Service is Force Multiplier

It multiplies the effect of the existing forces Agents and Customers, Advocates, Influencers

accelerate PR, Marketing, Customer Service, Innovation…


Paradigm Shift

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Combing Customer Service and Social is a Force Multiplier…

Social Customer Service magnifies the impact of their work

Agents can work in more channels while tapping a crowd-sourced knowledge base

Reach more customers thorough the social media channels

Done well it creates good will, good PR, good word of mouth and loyalty


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Are You An OODA Leader?


You job as a leader of Social Customer Service is to OODA faster than your competitors

Outmaneuver the competitionObserve the ever-changing conditions and Decisively act in an effort to beat the competition

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What’s it gonna take for….

The whole industry to understand how important Customer Service is?

What is the boiling point for your company?

What is it gonna take for change to happen?


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Are you a OODAing Leader?


• Leaders needs to:• Have the courage to recognize when

things are off course • Know when a correction is needed

and• Then act decisivelyWhen would “now” be a good time

to be aOODAing Leader?

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When will you step up and be an OODA Leader?

THE KIND OF LEADER YOU WANT TO FOLLOW


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A decision: selection between possible actions


DECIDEARE YOU A FORCE MULTIPLIER?


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