1. Page  1 Social Media in Business Session 6 Agenda Guest Speaker: Nestor Portillo, Bill Dean Microsoft Customer Service and Support Social Media in Customer Service and Support Student Presentations Time for Team Projects mala.sarat.chandra@gmail.com

2. Page  2 Social Media in Business Case Study: Zappos mala.sarat.chandra@gmail.com

3. Page  3 Social Media in Business Case Study: Pottery Barn mala.sarat.chandra@gmail.com Customer couldn’t get the store’s customer support to help. She posted her frustration on the PB wall and got instant response. Offline service must be as good as online response.

4. Page  4 Social Media in Business Case Study: DirectTV mala.sarat.chandra@gmail.com

5. Page  5 Social Media in Business Social Media Customer Service and Support The New Reality. Customers control a brand’s reputation, not the company. The Media tends to report and amplify poor customer service stories. Social Media can make dissatisfied customer stories go viral quickly. Social Media requires rapid response to customer feedback. Why companies hesitate in adopting social media. Legal risks. Potential loss of employee productivity. Entrenched views of support as a cost center. Organizational structure and “silo” culture. Immature, disconnected software technologies to support collaborative, social support and service delivery. The need to prove the business value of social media. mala.sarat.chandra@gmail.com

6. Page  6 Social Media in Business Social Media: Customer Satisfaction impacts business results. Customer satisfaction raises revenue and lowers costs. Acquiring a customer costs 5-7 times more than retaining one. An increase in customer retention of just 5% can boost profit 25-85%. A “very satisfied” customer is 6 times more likely to repurchase than a customer who is just “satisfied”. Loyal customers tend to be less price sensitive. Dissatisfied customers tell 9 people on average. Social media has the potential to amplify this nine many times over. A dissatisfied customer whose problem is resolved quickly and painlessly is more likely to be loyal than one who never experienced a problem. mala.sarat.chandra@gmail.com

7. Page  7 Social Media in Business Social Media: Customer Care can generate Sales mala.sarat.chandra@gmail.com DellOutlet sells on Twitter but listens and responds to customer comments and complaints as well. Best Buy’s Twelpforce initiative allows employees to answer customer questions on Twitter as they come in.

8. Page  8 Social Media in Business Social Media: Customer Service must integrate multiple channels mala.sarat.chandra@gmail.com Customers expect consistency across multiple online channels Social Networks Online Forums and Communities Email Telephone and Call Centers Community Forums increasingly important Scale service responsiveness by tapping into customer expertise Reward star community contributors (eg Microsoft MVP) Gain deeper insights into customer needs, motives and behaviors Optimize processes to gather end-to-end customer feedback Consistency and Context across multiple channels is key

9. Page  9 Social Media in Business Customer Service Social Media Best And Next Practices August 2009 “Best Practices: Five Strategies For Customer Service Social Media Excellence”

10. Page  10 Social Media in Business Customer Service Social Media Best And Next Practices (Cont.) August 2009 “Best Practices: Five Strategies For Customer Service Social Media Excellence”

11. Page  11 Social Media in Business Social Media Customer Service and Support Pitfalls to avoidWhy its important mala.sarat.chandra@gmail.com Lack of community infrastructure and policies to guide interactions Keep conversations productive. Engage a community manager to moderate conversations. Budget issues quash social community building initiatives Effective and convenient way to keep in touch with customers, learn from and respond to needs and issues. Limiting communities just to deal with customer service ands support issues Valuable insights for product development and testing, sales opportunities and lead development. Lack of tools or un-integrated tools to capture, track and analyze support and service issues Context improves customer support experiences, increases knowledge base, reduces time to resolve.

12. Page  12 Social Media in Business Social Media Crisis Management Crisis ResponseTactics Listen and Monitor Build relationships with Influencers Create a Crisis Response Plan Claim domain names and handles asap Publish guidelines and train employees Engage immediately on social channels Update early and often on all channels mala.sarat.chandra@gmail.com The Reality of Social Media Everything happens lightning fast People demand transparency Dialogue is key in managing crisis Search makes or breaks reputations Brand detractors have the same tools Source: Ogilvy Public Relations WorldwideOgilvy Public Relations Worldwide

13. Page  13 Social Media in Business Case Studies: Social Media Crisis Management 2009 H1N1 Flu Pandemic 3 Twitter accounts to reach healthcare professionals and the general public 1.2 million followers, 400,000+ click-throughs on flue related tweets mala.sarat.chandra@gmail.com