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The Customer Revolution & why you should care Richard White Founder, CEO @rrwhite

SITS13 - The customer revolution & why you should care

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I don’t know much about ITSM, nor do I even know what ITIL stands for, let alone how to implement it. However, as the CEO of one of the top online customer service platforms, I do know a thing or two about customer service on the web. And the advent of social media combined with shift towards online, subscription-based businesses is creating a revolution in how companies staff, respond to, and value interactions with their customers. In this talk (an adaptation of my UserConf 2012 keynote) I’ll discuss how this revolution started, why we think it’s destined to succeed, and what your world looks like on the other side of it. So come find out what’s going on in the neighboring kingdom of online customer service. Because with the consumerization of IT, it may be coming to a service desk near you sooner than you think.

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Page 1: SITS13 - The customer revolution & why you should care

The Customer Revolution & why you should care

Richard WhiteFounder, CEO@rrwhite

Page 2: SITS13 - The customer revolution & why you should care

three goals

@rrwhite

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three warnings

@rrwhite

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Limited Life Experience

+Overgeneralization

=

Advice

Paul BucheitCreator of Gmail, Co-founder of FriendFeed

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ITIL

@rrwhite

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ITIL(I have no idea what this even stands for)

@rrwhite

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hi

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1

2

3

4

people in San Francisco & Raleigh who want to enable you better help and understand your users all with less effort than you thought possible.

24

We are...

@rrwhite

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UserVoice is...UserVoice is a true multi-tenant SaaS, freemium platform that helps companies scale not only their customer support (by driving self-service) but also customer insight (through proactive user engagement).

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UserVoice is...UserVoice is true multi-tenant SaaS, freemium platform that helps companies scale not only their customer support (by driving self-service) but also customer insight (through proactive user engagement).

people have logged into their UserVoice admin console the last 30 days.

35,000127% YoY

@rrwhite

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Founded in 2008, and the originators of the now ubiquitous Feedback Tab, what makes us special is how much we care about the end-user interface. We know that communication starts with users, not with surveys or flying banners.

We’ve had a little help along the way in the form of $3MM in capital raised from Baseline Ventures (our lead), WTI, Betaworks, Founders Fund, TAG, Tekton Ventures and an assortment of amazing angels.

Our history

Page 12: SITS13 - The customer revolution & why you should care

Founded in 2008, and the originators of the, now ubiquitous Feedback Tab, what makes us special is how much we care about the end-user interface. We know that communication starts with users not with surveys or flying banners.

We’ve had a little help along the way in the form of $3MM in capital raised from Baseline Ventures (our lead), WTI, Betaworks, Founders Fund, TAG, Tekton Ventures and an assortment of amazing angels.

Our history

363 people see a UserVoice widget every second which is ...

people every month across 170 different countries and 43 languages (translated courtesy of UserVoice users)

943MM110% YoY

@rrwhite

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Are not ITSM & traditional contact centers.

They are predominantly technology companies and often SaaS platforms, games or mobile apps.

We work with everyone from startups to business units of Fortune 500 companies. Most sales are self-service, credit card & month to month but we do work with annual billing, invoices, training and higher level account management.

Our customers

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120,000 UserVoice sites that have been setup

countries where there’s an organization using UserVoice

170

@rrwhite

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Helpdesk Launched May 2011

Easy to use & (self-service) setup - Customers can get setup in hours, not days or weeks.

Designed for simplicity but has the backend to handle complicated routing and queuing.

Inspector - Answer messages quicker and more carefully by having the complete social context of who you’re talking to.

Game mechanics - Our leaderboard drives friendly competition amongst customer teams to respond quickly and comprehensively

Ticket system emails look like normal emails. End-users never know they’re being tracked. There's no ticket # or 'reply above this line', People bristle at the notion of being “in a system” - they want human connection.

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Feedback forums are the unique UserVoice way of helping customers get and respond to inbound customer feedback at scale.

Feedback is a natural, and highly successful, way to engage large numbers of otherwise passive users who wouldn’t contact companies for support.

Feedback Launched April 2008

Scalability - Get feedback from thousands or millions with the same level of effort.

Frictionless feedback - 80+% of those who give feedback will provide an email address and subscribe to updates. This works wonders for pre-sales engagement.

Response rates double that of newsletters. Permission based marketing at its best. Users are opting into updates on other user generated content.

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We provide the most comprehensive and robust set of tools to help our customer communicate with their users where they already are: in-app.

Complete set of APIs, Push Notifications and SDKs make it easy for companies to integrate UserVoice into their business.

Instant Answers - All embedded experiences drive customers to self-service their issues. Up to 40% (and higher on mobile) of requests are resolved through suggesting a relevant knowledge base article or existing forum post.

Feedback tab widget - Embed a complete customer portal directly into a website with a couple lines of code.

UserVoice is everywhere users are

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UserVoice is everywhere users areWe provide the most comprehensive and robust set of tools to help our customer communicate with their users where they already are: in-app.

Complete set of APIs, Push Notifications and SDKs make it easy for companies to integrate UserVoice into their business.

Instant Answers - All embedded experiences drive customers to self-service their issues. Up to 40% (and higher on mobile) of requests are resolved through suggesting a relevant knowledge base article or existing forum post.

Feedback tab widget - Embed a complete customer portal directly into a website with a couple lines of code.

Mobile optimized - All of our interfaces are optimized to work on desktop and mobile web. (22.5% of our usage is mobile web)

UserVoice for iOS - A native customer portal directly inside your iPhone or iPad app.

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NEW

The next generation in (meaningful) in-app user engagement: bundling together customer satisfaction, product feedback and support to create engagement rates that blow away traditional VoC or Helpdesk solutions.

Combined with a robust analytics system to give you a complete view of your user base from 10K feet down to individual users.

New features debuted at UserVoice Summit 2013:

Instant Answers

Satisfaction Surveys

SmartVote

Touchpoint SDK & Analytics

In-app engagement

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phew

@rrwhite

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No one goes to school for customer service

A HUMBLE OBSERVATION

@rrwhite

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Two different worlds of “customer service”

@rrwhite

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Customer Service

@rrwhite

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“All agents are currently serving other customers”

“Your call is important to us”

“Press 9 to hear these options again”

Entering your account # only to have to repeat it to the agent

Customer Service

@rrwhite

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“All agents are currently serving other customers”

“Your call is important to us”

“Press 9 to hear these options again”

Entering your account # only to have to repeat it to the agent

Customer Service

20% handle multiple channels

40% respond to tweets

29% respond < 1 day

@rrwhite

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“All agents are currently serving other customers”

“Your call is important to us”

“Press 9 to hear these options again”

Entering your account # only to have to repeat it to the agent

Customer Service Our World

Highly skilled agents

Delivering great support on any medium

A product issue is solved in hours or days not months

Every customer engagement is an opportunity

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20% handle multiple channels

40% respond to tweets

29% respond < 1 day

Customer Service

89% handle multiple channels

Our World

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20% handle multiple channels

40% respond to tweets

29% respond < 1 day

Customer Service

89% handle multiple channels

87% respond to tweets

Our World

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20% handle multiple channels

40% respond to tweets

29% respond < 1 day

Past

89% handle multiple channels

87% respond to tweets

83% respond < 1 day

Future

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the future

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the futureis here

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or is it?

@rrwhite

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Exceptional customer care isn’t new.

@rrwhite

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No, this is different.Things have changed.

@rrwhite

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four changes

@rrwhite

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The internet has spawned a generation of businesses built around self-service.

CHANGE #1

@rrwhite

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Is this really necessary?

@rrwhite

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43%

62%

of people said they could have solved their customer service issue on their own if better self-service tools were available.

of people age 18 to 24

@rrwhite

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THE FUTURE IS...

More user self-service

50% of smartphone users would prefer to use a mobile customer service application to try to resolve their customer service issue before calling into the contact center.

@rrwhite

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56% of online consumers agree that their (customer service) calls are more complex as simple transactions are often automated

THE FUTURE IS...

More user self-serviceLess customer contacts but more complex issues

@rrwhite

Page 42: SITS13 - The customer revolution & why you should care

THE FUTURE IS...

More user self-serviceLess customer contacts but more complex issues

Less agents but better training (and pay)

@rrwhite

Page 43: SITS13 - The customer revolution & why you should care

Companies are moving to subscription-based revenue models.

CHANGE #2

@rrwhite

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I know. You’re shocked.

@rrwhite

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50% of US businesses have either adopted or were planning to adopt a subscription based model

@rrwhite

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50%

90%

of US businesses have either adopted or were planning to adopt a subscription based model

of mobile game spending (US) on free to play games.

@rrwhite

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Ye olde sales funnel.

@rrwhite

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THE FUTURE IS...

Subscription revenue

@rrwhite

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THE FUTURE IS...

Subscription revenueThe blurring of the line between sales & support.

@rrwhite

Page 50: SITS13 - The customer revolution & why you should care

THE FUTURE IS...

Subscription revenueThe blurring of the line between sales & support.

Better training and pay for agents

@rrwhite

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Social media is the catalyst but not the medium of the future.

CHANGE #3

@rrwhite

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1% of people said they preferred to get support via Twitter instead of traditional mediums.

@rrwhite

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1% of people said they preferred to get support via Twitter instead of traditional mediums.

of US consumers are very to somewhat interested in resolving customer service issues.email: 67%, phone: 90%

22%

@rrwhite

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THE FUTURE IS...

Social Media level of care on traditional channels.

@rrwhite

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THE FUTURE IS...

Social Media level of care on traditional channels.

Word-of-month matters again. It’s too expensive to let something spill out onto Twitter.

@rrwhite

Page 56: SITS13 - The customer revolution & why you should care

THE FUTURE IS...

Social Media level of care on traditional channels.

Word-of-month matters again. It’s too expensive to let something spill out onto Twitter.

Companies want more than “like”

@rrwhite

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The era of (digital) marketing gimmicks is coming to an end.

CHANGE #4

@rrwhite

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The digital marketing land rush is over.

@rrwhite

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The digital marketing land rush is over.

11% The increase in the average cost per click (CPC) on Google Adwords in 2011.

Increase in app marketing costs in the last year on iOS platform (70% on Android)

56% @rrwhite

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Groupon, Zynga, eHow, Swoopo, Turntable.fm

WHAT DO THESE HAVE IN COMMON?

@rrwhite

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THE FUTURE IS...

Customer retention over acquisition.

@rrwhite

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THE FUTURE IS...

Customer retention over acquisition.

how much more it expensive it is to acquire new customers than satisfy and retain current ones

5X

@rrwhite

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Customer retention is the new acquisitionIt’s getting more expensive to acquire customers as marketing channels become saturated. Subscription businesses live and die by retention. The best way to retain customers is through great service but more importantly by building the product they want.

Social media is the catalyst of, but not the medium of, the futureTwitter is the small claims court of bad support. It’s forcing companies to re-examine the cost of providing poor service through the traditional channels that users prefer.

Excellent customer service, like performance, is a killer feature.Support is increasingly not just a cost center to be shunted offshore. It's part of your product and your sales process.

@rrwhite

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PUTTING IT ALL TOGETHER...

Business is going old school.

@rrwhite

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PUTTING IT ALL TOGETHER...

Business is going old school.

The last 30+ years have been one big scaling problem.

@rrwhite

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PUTTING IT ALL TOGETHER...

Business is going old school.

The last 30+ years have been one big scaling problem.

We now have the technology and enough incentives to provide old fashioned service at web scale.

@rrwhite

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The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

@rrwhite

Page 68: SITS13 - The customer revolution & why you should care

The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

Drive ever more self-serviceEspecially with Freemium or Free2Play. Without sacrificing quality as a bad experience is now expensive.One to many communication when possible

@rrwhite

Page 69: SITS13 - The customer revolution & why you should care

The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

Drive ever more self-serviceEspecially with Freemium or Free2Play. Without sacrificing quality as a bad experience is now expensive.One to many communication when possible

Support teams are looking more like sales teams. Not scripted. Given liberty to solve the issue.

@rrwhite

Page 70: SITS13 - The customer revolution & why you should care

The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

Drive ever more self-serviceEspecially with Freemium or Free2Play. Without sacrificing quality as a bad experience is now expensive.One to many communication when possible

Support teams are looking more like sales teams. Not scripted. Given liberty to solve the issue.

Agility over process. This is what you get with these sorts of support teams.

@rrwhite

Page 71: SITS13 - The customer revolution & why you should care

The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

Drive ever more self-serviceEspecially with Freemium or Free2Play. Without sacrificing quality as a bad experience is now expensive.One to many communication when possible

Support teams are looking more like sales teams. Not scripted. Given liberty to solve the issue.

Agility over process. This is what you get with these sorts of support teams.

Proactive engagement before there is a problemCreate ways for users to engage outside of when they have a problem. Get out from behind your help desk.

@rrwhite

Page 72: SITS13 - The customer revolution & why you should care

The customer portal is dead. Be where your users are... and it isn’t Facebook: it’s inside your app. Make getting support or giving feedback a great in-app experience.

Drive ever more self-serviceEspecially with Freemium or Free2Play. Without sacrificing quality as a bad experience is now expensive.One to many communication when possible

Support teams are looking more like sales teams. Not scripted. Given liberty to solve the issue.

Agility over process. This is what you get with these sorts of support teams.

Proactive engagement before there is a problemCreate ways for users to engage outside of when they have a problem. Get out from behind your help desk.

Drive meaningful, win-win engagement (with analytics).That which is actionable to the company and important to users. Move beyond the shallow pond of “likes” and “follows”. No flying banner 10 minute surveys either.We can do better than social media vanity metrics.

@rrwhite

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So what?

@rrwhite

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A HUMBLE HYPOTHESIS...

Maybe employees and consumers aren’t all that different.

@rrwhite

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A HUMBLE HYPOTHESIS...

Maybe employees and consumers aren’t all that different.

BYOD

@rrwhite

Page 76: SITS13 - The customer revolution & why you should care

A HUMBLE HYPOTHESIS...

Maybe employees and consumers aren’t all that different.

BYOD

companies that allow some form of BYOD (bring your own device) usage74%

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thanks

@rrwhite