Screenshot Breakdown: How Facebook Enables Levi’s Social Shopping
Awareness (Above Screenshot): Levi’s homepage indicates that it now has Facebook integration
Education (Above Screenshot): An intro video indicates how users can gesture they like a product, by “liking” it on the Levi’s site –even if they are not logged into Levis.com, you can watch the video also on YouTube.
Social Gestures (Above Screenshot): On each product page, Levi’s encourages users to “Like” the products, and uses standard social features from Facebook that prompt viewers to be the “First of your friends” to like it.
Social Commerce (Above Screenshot): Using the aggregated Facebook data, Levi’s creates a personalized shopping cart based on what your friends have suggested you’ll like, hoping to increase upsell.
Customer Demands Signals From Social Networks An Opportunity for Retailers
Levi’s has launched a promising marketing opportunity at low cost. By simply installing existing social features into their content management systems, they can increase the mouth of the marketing funnel, and benefit from word of mouth marketing.
Your friends are shopping with you –even if they aren’t present. This has two major impacts: 1) Consumers real friends are part of the shopping experience –even if they are not physically present. 2) The level of engagement will eventually cascade to mobile devices in store, so eventually as consumers walk into a retailer that has Levi’s they could scan the product and see which one of their friends likes or recommends it.
A more engaged user, without forcing them through registration. Registration forms are the bane of marketers: Most consumers disdain them, enter garbage data, and fall off as the forms get longer. However, As long as users are logged into Facebook they can do this even if they are not logged into Levi’s.com. This means that consumers can ‘like’ a product and engage with the Levi’s product and spread it to their friends on the corporate site and on Facebook. As a result, expect the mouth of the marketing funnel to be wider
Consumers take part in marketing and recommendations, increasing upsell opportunity. Levi’s has had social shopping features on their site for some time, you can see the ratings, rankings and comments on each product page, yet in most cases, consumers don’t know who those reviewers are. Edelman’s Trust research indicates that customers trust each other or ‘people like them’ so this has the opportunity to increase. In theory there could be a great chance of up and cross sell as consumers rely on their actual friends to influence buying decisions. Expect celebrities with large followings to be more influential as what they ‘like’ will cascade over thousands.
Social commerce vendors will integrate with Social CRM –yet should be cautious of user privacy. Social vendors like Bazaarvoice, Kickapps*, and Pluck and other customer rating tools that occur post login, need to quickly pay attention to this as it’s both a threat an opportunity. They should develop integration tools and integrate their social data with CRM systems (called Social CRM) to create new and unique forms of data that can anticipate customer needs. Facebook users aren’t fully aware of the long term impacts this has, expect some embarrassing and news worthy stories to appear where a consumer ‘likes’ a product resulting in an unexpected result.
The biggest opportunities are actually unseen. Expect savvy brands to use demand signals from consumers to indicate which products should be ramped up on production, distribution, and marketing, to learn more read my colleague’s blog on Supply Chain Management, by Altimeter’s Lora Cecere.
*An Altimeter client, see disclosure page. We hope you’ll trust our analysis more if we disclose our relationships.
The Market Took to the Social CRM Use Cases
The Social CRM report by the Altimeter Group is a hit. Within 30 days it has received over 30,000 views, been touted as the “Most Viral BtoB Report,” and brands and SCRM vendors are aligning their roadmaps with the use cases. There were over 800 registrants for the webinar, and we had nearly 300 attendees, over 135 of the registrants said they wanted to be contacted by a SCRM vendor. All of these numbers indicate that there’s interest in this new market, and we’re glad to help illuminate the pathway. (Update: If you want to give a primer to your CMO, send them my latest Forbes column on the topic)
Watch the Recording and Use The Slides
Our belief in Open Research means we try to collaborate with the market on conducting research, then sharing a great deal of it so the market can build on top of it, improve it, and we can continue to learn. Yesterday, we hosted part 1 of the SCRM webinar series, and have made the slides and the recording available.
Above: The webinar recording. My voice was a bit soft due to technical reasons, however at 14 minutes in I switch headsets and it clears up.
We also polled the attendees about their readiness to deploy:
When are you planning to invest in a Social CRM Solution? (41% of attendees responded, but this was at the end of webinar, so we don’t know how many were still online.)
A) Not at this time (25%)
B) In the next 30 days (14%)
C) In the next quarter (14%)
D) In the next year (9%)
E) Not sure (35%)
This means that 28% of the attendees were interested in investing on Social CRM solutions.
This is just the starting point, harness these other resources to become successful.
18 Use Cases That Show Business How To Finally Put Customers First
Social and CRM: How Companies Will Manage Their Social Relationships
Over the last six months, I’ve been working closely with Ray Wang who is well known in the CRM space as an expert. Coupled with my focus on social technologies we did a deep dive on how our worlds are colliding into the trend to Social CRM. In our opening webinar when we announced our joining of the firm, we made it clear we’re looking at the holistic business, across multiple business departments –not silos or roles.
Companies are unable to scale to keep up with the social phenomenon
We know that customers are using these social technologies to share their voices, and companies are having a very difficult time to keep up.
For companies, real time is not fast enough. Companies need to be able to anticipate what customers are doing to say and do, in order to keep up. Although Motrin responded to angry mom’s within 24 hours –it was too slow.
Companies are unable to scale to meet the needs of social. No matter how many community managers Dell and ComcastCares hires to support, they’ll never be able to match the number of customers happening. They need tools, and they need them now.
Customers don’t care what department you’re in they just want their problem fixed. Dooce’s support problem with Maytag quickly became a PR nightmare –had the support group known she was an influencer (and what it means), they could have serviced her better.
Above: Framework of the 18 Use Cases of Social CRM
How To Use This Report: A Pragmatic Roadmap
Regardless if you’re in IT or in a business unit, we wrote this to meet the needs of both groups. This architecture lays out all the possibilities (18 use cases) defines the problem and goal for each, and suggests some vendors who to watch. It’s also pragmatic, as it lays out a process on how to get started, baseline needs (listening) and what to do next.
Sign up for the webinar series. This is a deep topic, and the report is only the tip of the iceberg. As we’ve done in the past, we’re going to offer a series of free webinars on this topic to explore each of the use cases in gritty details. Sign up for the webinar now, as we can only have 1000 attendees per webinar, as our last webinar had over 1100 registrants.
Read then spread this report. Like open source, the Altimeter Group believes in open research, we want our ideas to grow, and others to take advantage of it. So if you found the report helpful, please forward the report to internal constituents, partners, vendors, clients, and blog it. Use it in your presentations, business plans, and roadmaps. I’ve embedded it below, and there are download features for your own use.
Have an internal discussion. Evaluate your current situation at your company, then draw up which business needs need to be tackled first, use the use cases as a roadmap by mapping out which phase comes first, and which phase comes second.
Learn more and join the community of pioneers. This is new territory, we don’t have all the answers, so we’ve created at group in which pioneers can learn from each other. It’s free, and the conversation has started already, jump into the group, and learn together.
The Altimeter Approach Standing behind our belief in open research, the Altimeter Group wants to be part of the community, we:
Involve the expert community in the research process
Altimeter is unique as our partners can tightly co mingle our topic areas and see how they converge, we highlighted our vision when we joined. We seek to be stewards of community and during our six months of research we talked to way over 40 thought leaders, vendors, and companies that are approaching this space. We blogged ideas, engaged in conversations with the #scrm hash tag, and had working sessions with thought leaders like Paul Greenberg and Esteban Kolsky. We approached research in an open way, and allowed for vendors to review the report and submit back their ideas, some of which we incorporated. This effort was a group effort and included a lot of heavy lifting from Christine Tran, operations who helped to schedule countless meetings, and guidance from Charlene Li, our founder.
Provide a holistic view through deep collaboration
We see that worlds are converging, and we model our research the same way, through really analyzing the mixtures of our different topic areas. For example, what was interesting is that my ‘marketing-speak’ and Ray’s ‘IT Speak’ often resulted in the tower of babel. Although we were talking about the same topic, he had to translate IT and marketing speak both ways. After many puzzled looks, we embracing this, and realized that this isn’t unique to us but a sign of companies converging as a result of mass adoption of easy to share social tools. Thus, we realized this framework that could meet the needs of the various camps would be helpful, companies need to move quickly, as customers have adopted social in rapid fashion.
Use open research to grow ideas
We want ideas to spread, and have made the entire report available at no cost on slideshare, and put up images on flickr, we hope you use them, under creative commons licensing of Attribution -Noncommercial – Share Alike Status, we believe in open –not closed research. We’re trying a different business model, we want to involve the community of experts and publish our findings out there for everyone to benefit from, please support us by sharing it as much as possible, while we trial a new way of doing research.
Update: March 10th, From behind the scenes, we’re hearing of SCRM vendors and brands that are interested in deploying are using the framework as a roadmap, market requirements doc, and as a plan of what to do. Excellent.
Case Study: An Influential Mom Blogger Caused Mainstream Crises
Popular blogger, Heather Armstrong (@dooce) was dissatisfied with her non-working Maytag appliance. Following protocol, she called their support number, yet her issue was not solved. Stonewalled, she argued/warned the support staff that she was on Twitter, yet didn’t receive special assistance. Escalating further, she then flexed a muscle and told them she had over 1,000,000 Twitter followers –yet the support rep did not budge. Finally, she blogged and Tweeted against Maytag, initiating a boycott by her followers, “DO NOT BUY MAYTAG” and continues to chronicle her experience on her blog. While critics suggest she wielded her power with irresponsibility, the point is moot, what matters is her social influence was not factored into the support triage decision making process –making a minor support issue a PR issue now on Forbes.
Just as companies factor in value of a customers celebrity status, buying power or customer loyalty –companies must factor in social influence or put themselves at risk. That’s right, customers with more Twitter followers are more likely to get better service and support than those that don’t.
Trend: Consumers Becoming Influential Using Social Technologies
Companies Already Give Preferential Treatment To Famous and Wealthy Customers. Companies have given high influence customers preference for years. Take for example, shopping malls in the Los Angeles area have private entry ways for celebrities to enter the mall and receive priorty treatment. Or, how B2B companies cater to their top customers with special event days, golf outings, or other clients with deep pockets. Companies know that not all customers are valued the same, and as a result, treat them differently.
With More Consumers Adoption Social Technologies, the Problem Will Get Worse.The tide is rising, in fact with more consumers adopting social technologies, the amount of voices that companies will need to deal with will increase in volume. Treating each customer with the best possible service and support (Like Zappos unique culture) is ideal –but not realistic. Companies are ill-equipped to support millions of customers in real time on the social web. They must have prioritization programs in place to handle the high risk/opportunity accounts quickly.
Companies Who Don’t Factor In Influence Put Themselves at Risk. Companies can choose to not factor in the social influence of customers, but will be putting themselves at risk. It’s just a matter of time before a company has a social blowup, and by not trying to handle priority customers could cause a small issue to quickly escalate into a larger one. Also, savvy competitors who factor in social influence can swoop and acquire high influence customers from companies that don’t. Your goal, is to stay off this list.
Matrix: The Four Phases How Companies Factor Social Influence
Do not factor in social influence
Companies treat all customers the same, regardless of number of readers, followers or social influence.
It’s cheap, companies don’t have to spend resources to understand if a single customer can influence others.
Run the risk of not prioritzing a customer that could influence others, resulting in missed opportunity or greater PR risk.
Companies factor in social influence as it surfaces, such as a customer explicitly staying their influence, or a service member proactively having to find it.
Companies don’t have to invest in a program or system that tries to calculate this influence.
May miss opportunities of serviing a high influence customer, or may not realize a potential social crises till it’s too late.
Companies factor in total number of Facebook book friends and activity, number of Twitter followers and assign a raw number.
Easy to calculate, and expect future Social CRM tools to do this with ease in the future.
Data may not be accurate: Numbers can be manipulated and gamed, resulting in companies misallocate resources. Risk of alienating consumers without social influence.
Companies factor in the true influence a customer has over their actual market –ignoring factors that may not be relevant.
Finally, companies can focus on those customer with social influence that impact other prospects and buyers in their specific market
Such a program is hard to setup and costly, and will require constant inputs and tuning. Risk of alienating consumers without social influence.
Companies Must Factor In Social Influence
Recalculate The Customer Lifetime Value Quotient. For years, companies have factored in the total value of customers over their entire lifetime, Stanford has methods to calculate this called the Customer Lifetime Value formula. These formulas factored in ability to be a repeat buyer, income level, and size of purchases over time. Just as companies spend more time with customers with deeper pockets, they should also spend the appropriate type of attention with followers that don’t.
Yet Recognize, that Not All Social Influence Is the Same. To be efficient, companies shouldn’t reward those with spammy followers they got from an overnight follow script, but recognize that influence isn’t always about quantity, recognize there are at least two types of social influence: The first, absolute influence is the total size of the individuals influence. Take Scoble for example, who has over a 100,000 Twitter followers and probally 100k subscribed to his blog is influential in a broad market. However, his relative influence within the high-end fashion market is low. D&G must factor in both types of influence in understanding how to deal with customers, therefore while Scoble’s absolute influence is high, his relative influence to the fashion market is low.
Expect New Technologies To Address This Problem. We’re seeing a whole group of companies emerge in the Social CRM space that are trying to address parts of these problems. Eventually, we should expect CRM systems to automatically indicate to customer facing employees the level of influence customers have. In the most radical future, customers may choose to broadcast their preferences to retail stores before the walk in based on preferences and past purchases in order to receive a better experience. If this happens, companies can match with their social influence, and treat them accordingly.
I look forward to hear from you: have companies treated you differently because of your social influence? What companies are doing this now? What are the risks of doing it or not factoring in social influence?
Above Image: Readers of this blog asked for coverage in Social CRM, Mobile Social Networks, and Community Platforms. This is in alignment with my goals for 2010.
First of all, thanks to those who responded to the 2009 Web Strategy survey, the results were telling. One of the questions that I asked was about areas of focus, I’m pleased to hear that the direction readers want me to focus is in alignment with where I’m headed. It’s important to have goals, (even my personal goals to live in Hawaii 30 days a yearlike Operation Bluewater) and I’m happy to share my focus for the coming year.
Here’s my baseline topics that I’ve been blogging about, and helping clients through advisory and research, I’ve been doing this since I ran the social program at Hitachi, back in 2006, over four years ago.
Organizational Social Readiness: 80% of a companies success is getting their organization ready through the right roles, processes, policies, measurement, only 20% should be on tools. I’ll continue to talk about organizational readiness.
Social Strategy: This also ties into social marketing strategy, which should be focused first on socialgraphics (how your customers use these tools) and business goals –not reacting to the latest technology.
Vendor and Technology Review: I’ll continue to cover the social networking space, like Facebook, MySpace, Twitter, as well as enterprise systems like Community Platforms like Jive, Lithium, Telligent, Awareness, Mzinga, Pluck, Eos, Salesforce Chatter.
I make it a point in my career to always be uncomfortable: trying new things, looking at the upcoming changes and taking risks, I hope that by continuing to blog what I learn, we can grow together. The areas of increased focus for this year are:
Social CRM: An organization’s response to the fleeting customer in the social space, and how companies must provide a holistic experience to customers by creating processes, integrating new channels, and responding to customers in near-real time. Why this space? Most companies don’t know they need it, but as customers increase their social behavior, tacking, managing, and responding will become increasingly difficult. I’ve already blogged some of my findings, read all the posts tagged ‘social crm’.
Location based and Mobile Marketing: I place to distinct separations between these topics, although they are intrinsically tied. I’m placing bets on the increased marketing context that’s available by triangulating information through mobile and location devices. Similarly, I’ll continue to look at applications that extend to mobile devices –a natural extension to the social web. I’ve never put a lot of effort into the immature mobile space, but the adoption of these mini-computers are taking off, the space is slowly moving out of diapers and into adolescence. Read all my posts tagged ‘mobile’.
Now back to you: What topics and focuses will you have during this coming year? What areas of education are you planning to bolster up on? What will you practice and deliver? Wishing you a very successful 2010!
Tracking the Market with an ‘Industry Index’
For a few years ago, I’ve created what I call my posts called the Industry Index (see all) lists to track companies in any particular vertical, it helps me, vendors, and buyers to track the space. I expect this space to rapidly increase in size as social channels will be bolted onto CRM vendors, and many brand monitoring and community platforms are adding workflow, triage, and tracking capabilities. The purpose of this list is to quickly capture the vendors participating in this space, and to acknowledge those that were not on yesterday’s review, I expect there to be many more vendors who leave a comment, which we can quickly add to this list.
We owe it to the market to try to include as many as possible, although it’s going to be very difficult as this space quickly grows. So first, let’s try to put some scope around this space with a definition.
“CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It’s the company’s response to the customer’s ownership of the conversation.” (also read his 2009 review of this space on ZDnet)
It’s a broad definition, but the key criteria he lists out are enough for me to go on.
List of Companies Providing Social CRM Offerings: (34 vendors total)
Traditional CRM Vendors offering Social Integration (11 vendors)
ACT!: This barely fits the scope of social crm, but ACT! allows a single individual to manage multiple types of information, including social, however if this product was extended across an enterprise, it fits the quota.
BatchBlue: While not a ‘traditional’ CRM like many of the others listed below, has traditional sales automation features, but also connect with existing social graph data, think social aggregation of contact lists. After watching the demo, it looks like you have to manually enter feeds of contacts, rather than auto-finding data from social graphs by scraping.
Buzzient: Offers a CRM platform that provides social media analytics that can be used for web marketing, customer tracking, or reporting. They have partnerships with Salesforce, Oracle, and SugarCRM.
Microsoft Dynamics: Offers Accelerators (here and here) that “Allows business professionals to monitor and analyze customers’ conversations on social networking sites, and as a result, provides real-time status updates about their products and services” (thanks Menno, who writes on the topic) They are also partnered with Neighborhood America
Oracle Siebel Social CRM: Promises the ability to provide insights based on the buying behaviors of similar customers, as well as shared content to be used between sales teams.
RightNow CRM: Offers several features in their suite such as Support Communities, Innovation Communities, Cloud Monitoring, and Social Experience Design. Rightnow recently acquired Hivelive an enterprise community platform.
Sugar CRM: Offers “SugarCRM Cloud Connectors connect via Web Services to leading third-party data service providers such as Hoover’s, JigSaw and LinkedIn”
We Can Do Biz: Offers traditional CRM features (although their website is a bit difficult to navigate) for SMB, and has a unique Twitter scraping feature that filters down by some level of geography and organizes records in the database. I had a briefing with them on Feb 2010. Added Feb 2010.
Community Platforms Offering Social CRM (5)
Jive Software: Community Engagement, offers data integration from Radian6, encouraging management of the discussion.
Leverage Software: I recall that Leverage offers built in integration with Salesforce, but I was unable to find it on their site.
Lithium Technologies offers the Social CRM Suite offering features such as Community Applications, Reputation Engine, Actionable Analytics, CRM Connectivity, and Social Web Connectivity.
Roving Group: Offers a product called ‘Roving Contacts’ that aggregates the social graphs and contact information from your address book.
SocioToo: Not the typical corporate enterprise company, this Dutch company offers a search page (and no real corporate site –by intent) that mines social graph data in public.
Xobni: This cleverly named (opposite of inbox) Outlook plugin scrapes your social graph and most frequently emailed contacts improving email utility. This barely falls within the scope of social crm, but if the data was able to export to other systems, it could start to apply.
CRM Applications and Plugins (2)
Appirio: Offers the ability for companies to create applications on Facebook which then marry data back to Salesforce, called Cloud Connectors.
Twitter: Has made motions they plan to offer premium services to brands, that would offer verified accounts, then management-like features. The specifics are still unknown, as they sort out their business model. They have partnered with Google and Bing.
Feb 12,2010: Added WeCanDo.biz after a briefing, and Alterian.
Not on this list? Leave a comment, with justification why you fit in Paul’s definition with a link to your site explaining more, I’ll take a look and add to it, please be patient while I review. Also, if you want to brief Ray and myself, please read and submit to this briefing form.
Update: Business Partner Ray Wang and I have created a more detailed matrix of this space for our clients.