Social: Session 8: The Force Multiplier for Your Business

Social
TRACK NAME

Customer Service:
Presentation Title
The Force Multiplier
For Your Business

Dr. Natalie Petouhoff
www.drnatalienews.com
@drnatalie

4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 2

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

Tweet: #SCON12

United Airlines And
Dave Carroll
One of the reasons social July 6, 2009
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

Tweet: #SCON12

Dave gave United the
option to
co-write the song.
Would it be about a
good or bad customer
service experience?
Does the
company listen?
The song reflects the poor
customer service experience.

What if all customers did this?
Tweet: #SCON12

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

Tweet: #SCON12

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…

Tweet: #SCON12

Another Consumer Advocate…SCRM expert…
April 19, 2012

Dave Carroll: July 6, 2009
Tweet: #SCON12

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
Tweet:right…
#SCON12

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…

Tweet: #SCON12

The Boyd Affect
 Meet John Boyd (military strategist)
 Colonel and Fighter Pilot
 His theories highly influential in the:
Military
Sports and
Business.

Tweet: #SCON12

The Boyd Affect
Military
Sports and
Business.

Carl von Clausewitz
On War
The Fog of War

http://en.wikipedia.org/wiki/
Tweet: #SCON12 Carl_von_Clausewitz


The Boyd Affect
Military
Sports and
Business.

Carl von Clausewitz
On War
The Fog of War Sun Tzu
Art of War

http://en.wikipedia.org/wiki/
http://en.wikipedia.org/wiki
Tweet: #SCON12 Carl_von_Clausewitz
/Sun_Tzu

The Boyd Affect

 He is known for:
Decision Cycle
Conceptual Spiral

How does this
apply to
Social Customer
Service?

Tweet: #SCON12

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‖
Tweet: #SCON12 By John Boyd

The Boyd Loop: OODA

 Observe: the collection of data
Make use of the best sensors and other intelligence
available

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The Boyd Loop: OODA

available
 Orient: analysis and synthesis of data
Put the new observations into a context with the old

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The Boyd Loop: OODA

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

Tweet: #SCON12

The Boyd Loop: OODA

available
 Decide: determination of a course of action
Select the next action based on the combined observation
and local knowledge
 Act: action of those decisions
Carry out the selected action, ideally— while the competitor
is still observing your last action

Tweet: #SCON12

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!

Tweet: #SCON12

Most Companies Don’t Listen
or Integrate Feedback

Collect Alert Use Improve
Tell
Feedback Staff Insight Customers

Tweet: #SCON12

Now consider two companies…

Company 1 Company 2

How fast do you OODA compared to your competitors?

Zappos

Tweet: #SCON12

If Company 1 OODAs faster than Company 2

Company 1 Company 2

You’ll have a decided time
advantage over their competitor
Zappos

Tweet: #SCON12

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

Tweet: #SCON12

It not jus about OODAing Once
It’s the OODA LOOP:
The results of your actions become the
observations to re-orient
you to make your next decision

Repeated OODA = Success
Tweet: #SCON12

What Happens When a Company Doesn’t OODA?
 Netflix
Announced the price change on the blog
Blog post said, ―If you don’t like it, you can cancel your account.‖
And provided the link to cancel your account

July 12, 2011

Tweet: #SCON12

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

Related words:
July 12, 2011 • Increase
• Angered
• Cancelled
• Drop
• Greedy
• Redbox
*Source: Sysomos
Tweet: #SCON12

July 12, 2011

Despite the 7/12/2011 Reaction
• 81,789 comments on Facebook Netflix sent out a
• 1,429 positive notice
on the price hike
on Sept 19th, 2011

Tweet: #SCON12

Can Your Company Stand Negative Press?

Tweet: #SCON12

Can You lose 800,000
Customers?

A PR announcement
results in 100’s of
calls to
the contact center

PR is Customer Service
Customer Service is PR

Tweet: #SCON12

Where did NetFlix Missfire in OODAing?
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

Tweet: #SCON12

We need a paradigm shift in Customer Service

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

Tweet: #SCON12

Customers are at the boiling point
 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

Tweet: #SCON12

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…

Tweet: #SCON12

Burification Points and Paradigms
 It can take a long time for a paradigm to shift
 Example:
Mechanistic point of view, Newtonian Physics to Quantum
Physics
From thinking in particles to waves

 Burification point
Like a pot of boiling water, things bubble, sometimes for a long
time
And then, what seems like all at once, the pot boils over
When it boils over, it’s a burification point
Pop!!
Tweet: #SCON12

But United Airlines Still Doesn’t Get it

April 19, 2012

Will businesses
take heed and
Tweet: #SCON12 change? 4/25/2012 ©2012 SugarCRM Inc. All rights reserved. 36

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….
―My Roomba doesn’t pick up pet hair #frustrated‖

―My Roomba isn’t working – can’t fix it #fail‖

• 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

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 costs
Superusers answer customer questions

Increase positive sentiment
Increase positive word of mouth
Customers become marketers
Increase in sales

New product lines
Specific 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, QA
Fulfillment, Order Management,
Marketing, Sales and
Advertising

Chalk it up to the ―Witness‖ factor

What did iRobot do?

OODAing in
ways that forwarded
their business!

This is the promise of Social
Customer Service

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 counts
Its when you get the information to put into the OODA loop
You get crowd sourced information

Tweet: #SCON12

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…

Tweet: #SCON12

History provides perspective to
see future opportunities…
Dell Hell: it started with a post

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

2012  Dell FINALLY applied
OODAing
Dell’s Social Media Command Center
Social Media Monitoring…
Listening & responding to
the social networks…

25,000 daily
Topics, posts…

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

And Dell goes a step further…
Dell OODA’s with social media insights
across the whole organization….

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

Dell’s OODA’s with
Customer Advisory Panel Mtgs

Dell uses the social
media data to bring
Lovers and Haters
of the brand
together to learn:

―What would be
better if…‖

Dell takes social media data & customer feedback
and integrates it into their business…
Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved

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

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 assets

Tweet: #SCON12

Social Customer Service…
 Takes the existing forces

Tweet: #SCON12

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
Tweet: #SCON12

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

Tweet: #SCON12

Are You An OODA Leader?

 You job as a leader of Social Customer Service is to
OODA faster than your competitors
Outmaneuver the competition
Observe the ever-changing conditions and
Decisively act in an effort to beat the competition

Tweet: #SCON12

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?

Tweet: #SCON12

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 decisively

When would “now” be a good time to be a
OODAing Leader?

Tweet: #SCON12

When will you step up
and be an OODA Leader?

THE KIND OF LEADER
YOU WANT TO FOLLOW

Tweet: #SCON12

A decision: selection between possible actions

DECIDE
ARE YOU A FORCE MULTIPLIER?

Tweet: #SCON12

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Social: Session 8: The Force Multiplier for Your Business

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