How do social media, eCommerce and customer care influence the digital consumer life cycle? What role do marketing, sales and service play in building lasting and effective relationships with consumers. Keep up with digital consumer technology as it evolves – like SaaS for enterprises, on our blog.

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December 29, 2010

Governance holds the key to Social Media Success

Governance is important part of any initiative, but it is highly critical when it comes to Social media engagements. Social media is like a double edged sword, which without a proper governance model can cause more damage to the brand or the organization than any good. The governance model should cover the entire lifecycle in terms of Initiate, Define, Execute and Monitor of social media programs across the organization.

The following are multiple areas to be addressed by the governance model before any large scale social media roll-outs are planned.

  1. Social Media Policies & guidelines: Establishing well defined social media Policies and guidelines, both for internal usage by employees and for external usage by customers and partners is key for a long term social media success. Though social media usage are common these days not many enterprises have these policies defined which puts them at a great risk.
  2. Social Media Org Structure: Defining the right organization structure with well defined roles and responsibilities for driving social media initiatives is very critical. This also includes identifying the executive leadership who sponsors the social media programs across the organization. This organization will acts as the central entity for laying down  corporate wide strategies and roll out of social media initiatives. The structure has to be in place when several social media initiatives are executed successfully and the enterprise is serious about leveraging social media as their strategic means. 
  3. Technology Platform standardization:  Standardizing the technology platform for the social initiatives will help in rapid roll out of initiatives and also provides seamless and consistent user experience across multiple initiatives. This will significantly decrease the cost of social media engagements due to standardization of tools and technologies.
  4. Business Case and ROI: Coming up with a well defined process for business case and ROI definition for social media initiatives will help in fast trcking the social media roll outs by different business units of the enterprise. Defining the key metrics to be tracked for different types of initiatives will help in measuring the success and the ROI.

Please share your thoughts and comments on the above.

December 22, 2010

The Evolving Digital Consumer

Consumer behavior is changing rapidly and fundamentally, enabled and accelerated by revolutionizing technological advances. It is imperative for businesses selling online to understand these trends. So, let's look at the key trends that demand a response from businesses selling online.

1. The Social Consumer
Today's savvy and price-conscious consumer researches products, compares prices and weighs the pros and cons before buying. The rise of social media has further empowered them with a ready forum where they can learn and participate, reevaluate your brand, express opinions on your products and services, and influence peers.   Trusting user-generated content, consumers rely on it to decide which product is better and what brand to buy. In fact, online comments and reviews posted by social media enthusiasts are second only to word of mouth as a purchase driver for web users.

2. Adoption of Mobile Devices
As the reach of the mobile phone spreads, it is also revolutionizing the way we shop. The mobile phone is fast becoming a virtual wallet. With almost five billion connected by cellular telephony, this is a device companies can ignore only at their peril. Offering the convenience and speed of on-the-go shopping to consumers who are often on the move, it is expected that in 2015, over $100 billion worth of goods and services will be purchased via a mobile phone.

3. Cross-channel Experience
Consumers do not restrict themselves to one channel. Instead, they want choice and ease of use, and use a mix of channels to buy products and services. They may research a product with their mobile phones, chat with a call center agent, purchase it online and pick it up at the store and go back to the Internet to recommend it to friends.  Studies shows that more than three-quarters of consumers use two or more channels and approximately one-third use three or more channels to browse, research, evaluate and purchase products.

4. The Global Marketplace
The rapid adoption of technology globally is creating new market opportunities for both buyers and sellers. Geographical barriers are being broken and online commerce is no longer restricted to a single country or region. Consumers around the globe have easy access to rich Internet applications, Web 2.0 technologies and broadband, enabling generation of content and new modes of interaction.

While these trends pose challenges, they also bring opportunities to better serve your customers, differentiate yourself and drive sales.

So, how will you respond?

In my next post, I will outline how you can capitalize on these trends.

December 20, 2010

Social Media - the TRUE voice of customer

If you are deciding whether your organization should have a presence on social media or not - you are living in a bygone era. Today Facebook has already crossed the 500 million active users mark and 50% active users log on every day. Mark Zuckerberg, the founder of Facebook has been named as the Time Magazine person of the year 2010 for "Changing your communications". Twitter has more than 105 million users who send out more than 55 million tweets in a day. In today's parlance, these are not companies, these are countries. Today we only talk about the extent of your involvement in the social network and how your organization is influencing and getting influenced by the cyber-citizen.

Many leading companies are discovering the strategic business value of this new channel and are making comprehensive plans to proactively engage this digital consumer. They are discovering new ways to influence, new methods to interact and creative channels to serve this consumer.

Culture shock for customer service: For serving the digital consumer, almost all enterprises still rely on the IVR and email. These channels are good for the company to do analytics but lack the personal touch and more often than not the caller has to reach out to the customer service executive for resolution of issues. This results in a lose-lose situation wherein the customer is frustrated to get the right service and the organization suffers from high cost of customer service.

Many organizations have started using web collaboration for the purpose but few are using the social media channels for support provisioning. But organizations are in for a rude shock considering the fact that the "always-on" and aware digital-consumer would propagate the state of your customer service through the social medium. This could cascade into a downward spiral for brand image. On the bright side, social media can turn a single happy customer story to international news.

Consider the case of Best Buy - they were one of the early starters in the social media space; actively participating on Twitter - launching the "Twelpforce" program in 2009 alongside multiple customer service tools, parallel phone lines etc. The program received great customer response and the brand image of Best Buy was strengthened. Many other brands are also used Twitter to actively engage with customers, using a model most famously pioneered by Comcast. In early 2008, Comcast began searching Twitter to find disgruntled and troubled customers in a hope to pacify them. Their effort also resulted in great success and boosted their image through word-of-mouth. Today companies such as Zappos, SouthWest Airlines, JetBlue and Dell in the US are leading the way along with companies like BT, The Carphone Warehouse, ASOS, EasyJet, Virgin Trains etc in the UK.  

A Win-win situation: Using social media to deliver customer service has cost benefits as well because here customers reach out to peers to solve product-related problems. Companies could use the power-of-the-crowd as people out there would be more than happy to assist others and the trust level for solutions from peers tends to be higher. Businesses would have to create and nurture communities; providing a platform for collaboration wherein they can monitor the posts and deal with customer complaints efficiently and effectively. Not only would this save companies time and energy, but it reduces the overhead of additional customer service staff. Rather than trying to sweep the unhappy customers under the rug, companies should look at them as a challenge and an opportunity to improve their brand.

Those who are early into the game of providing customer service on social media are doing it in the following manner:

  • Using already established networks like Twitter, Facebook, YouTube, etc as listening platforms. You can also have mediators on these public platforms who can respond for you, if required. Monitoring social conversations on these platforms can give your enterprise can get an early warning about any forth coming customer service issue.
  • Establishing online customer communities or forums where customers, prospects, influencers and other enthusiasts can interact and share experiences regarding your products and services. These can be moderated or free-flowing depending on the requirement.

Integrating social media conversations with the enterprise customer support application for rendering customer support via social media. Social Network.jpg

One size doesn't fit all: A word of caution would be in order here. Companies need to understand that customer service through social media might not be the right solution for every business. One needs to honestly judge the requirements and then implement a solution. But in order to stay competitive and effectively leverage the changing behavior of the digital consumer, one needs to think beyond traditional mechanisms and reach out to the customer in their channel-of-choice. Social media has done exactly that, by providing a voice to your customer and a channel to reach out to you. Now, it your choice to listen to them.

In the next post, we will talk about some best practices that companies are following when delivering customer service through social networks.

December 10, 2010

We are on the cusp of being able to 'shop' online

Richard Downs, Director - Business Development, Software-as-a-Service, Infosys Technologies, recently presented at JumpStart - a 'Fast Track Briefing Programme', for senior level online and multi-channel retailers. All these retailers were looking at the key factors to consider when choosing an e-commerce platform.

Richard shared his thoughts on how digital consumers are redefining the online shopping experience. eCommerce enterprises and retailers must adapt to changing realities to deliver a comprehensive digital consumer experience. The innovators are quick to spot the opportunity and early adopters have made it real. In the UK now, every 1 in 10 pound, is spent online. However, once the majority joins in, offering online transactions, convenience and value for money will no longer be adequate.

The rules of the game will change, and the new generation of shoppers will have different expectations. In the real world, shopping is a personal experience - online shopping should be one too. Customer service is another very very vital part of shopping - online shopping needs to be just as good or better.

The pioneers of eCommerce tackled problems such as trust and security and merchandising and fulfillment. The winners of tomorrow will excel at providing a truly personalised, genuinely engaged, highly satisfying experience. There are ways to make it happen. In fact, as Richard puts it correctly - "we are on the cusp of being able to 'shop' online."

 http://www.infosys.com/iengage/resources/Pages/ecommerce-platforms-video.aspx

 

 

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