Conferencia impartida durante el Congreso CRM + Social Media + Centros de Contato México 2011 organizado por Mundo Contact a cargo de Larry Augustin, CEO de Sugar CRM

1. The Social Business
Revolution
Larry Augustin, CEO
December 2011

2. Outline
The World Has Changed
The New Rules of Customer Interaction
So What Now?

3. Change
©2010
SugarCRM Inc.

4. Change: Customers Believe Customers
Not Companies!

5. Change: Traditional Buying Model

6. Change: New Buying Model

7. Change: Social is Changing Business
12/12/2011 Copyright © 2010 SugarCRM, Inc. All rights reserved. 7

8. The New Rules
©2010
SugarCRM Inc.

9. Rule #1: You Are Not In Control

10. Customers Control the Conversation

11. Rule #2: Traditional Marketing is Declining
Growth of Marketing Spend Over Next 2-3 Years
Decline Grow
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80%
-5% 67%
-11% 64%
Social Media
-5% 61%
Digital and Online
-8% 58%
Public Relations
Direct Marketing -5% 58%
Data Analysis -14% 57%
Marketing Collateral -10% 48%
Paid Search -19% 45%
Events -67% 14%
Print
-74% 9%
TV and Radio
-35% 8%
Out-of-Home
Source: Booz & Company‟s B2B Marketing Survey 2010

12. How People Connect with Companies
Inbound
Permission
Customer-Driven
Outbound
Interruption
Vendor-Driven
©2010 SugarCRM Inc. All rights reserved.

13. Rule #3: Customer Service IS Marketing
12/12/2011 Copyright © 2010 SugarCRM, Inc. All rights reserved. 13

14. The Ultimate Question
12/12/2011 Copyright © 2010 SugarCRM, Inc. All rights reserved. 14

15. Rule #4: Join the Conversation
©2010 SugarCRM Inc. All rights reserved.

16. Interact Via Social Media
“85% of respondents believe
companies should not just present
information via social media, but
use it to interact and become more
engaged with them.”
- Cone Inc Report: “Social Media in Business”
©2010 SugarCRM Inc. All rights reserved.

17. Rule #5: Integrate People with Technology
Sydney restaurant replaces menus with iPads
http://www.redmondpie.com/sydney-restaurant-uses-ipad-as-a-menu-card/
©2010 SugarCRM Inc. All rights reserved.

18. Evolution

19. What Now?
©2010
SugarCRM Inc.

20. Start With the Customer
12/12/2011 Copyright © 2010 SugarCRM, Inc. All rights reserved. 20

21. Put the customer at the center
12/12/2011 Copyright © 2010 SugarCRM, Inc. All rights reserved. 21

22. What do Customers Want? Perception Gap #1
Consumers’ Ranking: The ways they interact Businesses’ Ranking: Why they think
with companies via social sites consumers interact them via social sites
(61%) Discount Learn about New Products (73%)
(55%) Purchase General Information (71%)
(53%) Reviews and Product Rankings Submit Opinion on Current Products/Services (69%)
(53%) General Information Exclusive Information (68%)
(52%) Exclusive Information Reviews and Product Rankings (67%)
(51%) Learn about New Products Feel Connected (64%)
(49%) Submit Opinion on Current Products/Services Customer Service (63%)
(37%) Customer Service Submit Ideas for New Products/Services (63%)
(34%) Event Participation Be Part of a Community (61%)
(33%) Feel Connected Event Participation (61%)
(30%) Submit Ideas for New Products/Services Purchase (60%)
(22%) Be Part of a Community Discount (60%)
Source: IBM Institute for Business Value Analysis, CRM 2011; sample size Consumer N=1056; Business Learn N=333, General Info N=336, Submit Opinion N=334, Exclusive Info N=333,
Reviews/Rankings N=333, Feel Connected N=331, Customer Service N=331, Submit Ideas N=332, Community N=329, Event N=332, Purchase N=334, Discounts N=331
22 IBM CRM Study – From Social Media to Social CRM – What Customers Want

23. What do Customers Want? Perception Gap #2
Consumers’ Ranking: The reasons they Businesses’ Ranking: Why they think
interact with companies via social sites consumers follow them via social sites
(61%) Discount Learn about New Products (73%)
(55%) Purchase General Information (71%)
(53%) Reviews and Product Rankings Submit Opinion on Current Products/Services (69%)
(53%) General Information Exclusive Information (68%)
(52%) Exclusive Information Reviews and Product Rankings (67%)
(51%) Learn about New Products Feel Connected (64%)
(49%) Submit Opinion on Current Products/Services Customer Service (63%)
(37%) Customer Service Submit Ideas for New Products/Services (63%)
(34%) Event Participation Be Part of a Community (61%)
(33%) Feel Connected Event Participation (61%)
(30%) Submit Ideas for New Products/Services Purchase (60%)
(22%) Be Part of a Community Discount (60%)
Source: IBM Institute for Business Value Analysis, CRM 2011; sample size Consumer N=1056; Business: Learn N=333, General Info N=336, Submit Opinion N=334, Exclusive Info N=333,
Reviews/Rankings N=333, Feel Connected N=331, Customer Service N=331, Submit Ideas N=332, Community N=329, Event N=332, Purchase N=334, Discounts N=331
23 IBM CRM Study – From Social Media to Social CRM – What Customers Want

24. What do Customers Want? Perception Gap #3
Agree or Disagree ?
I feel more loyal toward brands/companies when I interact with them
via social media or social networking
Consumers are
divided on how much
influence their social 38% 33% 28% Agree
Disagree
media interactions
Neutral
with a company will
have on their loyalty
to that business.
Social media interaction alone does not create
loyalty.
Source: IBM Institute for Business Value Analysis, CRM 2010, Sample size N= 981, Numbers do not total to 100%, because of rounding
24

25. What do Customers Want? Perception Gap #4
For nearly two thirds of consumers surveyed, passion for a brand or
business is a prerequisite for customer engagement
Agree or Disagree?
I need to be passionate about a brand / company to interact
with them using social media or social networking
64%
Agree
20% Neutral
Disagree
16%
For companies taking a “build it and they will
come,” approach to social media, these findings
are a wake up call that much more needs to be
done if they want to attract more than devoted
brand advocates.
Source: IBM Institute for Business Value Analysis, CRM 2010, Sample size N= 987
25

26. Give Your Customers What they Want
Findings Highlights
 Social Media Surge – Consumers
using social media cross all ages
and geographies, but very few can
be counted on to engage regularly
 It’s Personal – Most, say, “no
thanks” to seeking out businesses
via social media
 Monetizing Social Media –
Perception Gap: Despite what
businesses think, most consumers
follow them to get tangible value, not
to feel connected
 The Advocacy Paradox –
Perception Gap: Businesses believe
engagement breeds advocacy;
consumers aren„t so sure
26 IBM CRM Study – From Social Media to Social CRM – What Customers Want

27. Bring Order to Customer Management
©2010 SugarCRM Inc. All rights reserved.

28. Get Social CRM in the age of Social is
based on the simple premise
that you are able to Interact
with your customers based on
their needs, not your rules
YOU
NEED
SOCIAL
©2010 SugarCRM
Inc. All rights

29. Summary
The World Has Changed
Customers believe other customers, not companies
Social networks enable customers
The New Rules of Customer Interaction
Rule #1 – You are not in control
Rule #2 – Traditional Marketing Tactics Are Declining
Rule #3 – Customer Service is the New Marketing
Rule #4 – Join the Conversation
Rule #5 – Integrate People with Technology
What Now?
Bring order to customer management
Adopt Social, adopt the new rules of customer interaction
Give your customers what they want

30. The Social Business
Revolution
Larry Augustin, CEO
December 2011