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the changing dynamics of
customer care
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contents




        1	abstract
        2	        customer care: the new marketing outpost
        3	        customers, communities and contact centers
        5	        today’s problem. yesterday’s tools.
        7	        in search of a better answer
        8	        about the author




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                                                                                                                     SocialMatters




we help companies unlock the passion of their customers.
The Lithium Social Customer Suite allows brands to build vibrant customer communities that:


  reduce service costs with              grow brand advocay with        drive sales with                   innovate faster with
  social support                         social marketing               social commerce                    social innovation


lithium.com | © 2012 Lithium Technologies, Inc. All Rights Reserved
                                                                                                                                                 2
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abstract




   Customer care is “going social” and there’s no turning
   back. The market has spoken. That means it’s important
   to keep a strategic focus on the three C’s: Customers,
   Communities and Contact Centers. Each plays a distinct
   role in contemporary social customer care. This whitepaper
   focuses on the ways contact centers — forced by the need
   for massive scalability and internal social data management
   – can strategically leverage the social web and peer-to-peer
   forums to gain value from the socialization of all interactions
   with customers. Evolved contact centers drive marketing
   success as well as overall business success through a
   repeatable process that results in faster ascension to
   “customer advocacy” and hence a faster time to sales
   through direct, measurable benefits (like fiscal ROI) via
   gains in NPS or similar satisfaction-based customer
   lifecycle value methodologies.


                                                                         !
                                                                     ?


                                                                                                     1
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customer care:
the new marketing
outpost


   Customer care is the new battlefront in the fight for
   brand advocates. Whether you view this as an expansion
   of Operations into Marketing or the simple necessity that
   marketers increasingly focus on customer experiences both
   pre- and post-sale as significant drivers of measurable
   conversion, the end-game is the same: Marketing and
   Operations—what is promised versus what is delivered—
   fuse in Customer Care, where they form the experiential
   basis for the majority of the brand-related conversations
   happening now on the social web. It’s a trend that is
   accelerating and as such has become a prime challenge for
   CMOs and COOs.

   This whitepaper dives into the new social dynamics—the
   new role of the customer as a brand advocate and the
   ways in which proper attention to the social conversations
   occurring on Twitter, Facebook, in peer-to-peer support
   forums and in blogs can either wreak havoc inside your
   purchase funnel or be the most important driver of
   measurable bottom-line gains you’re likely to find anywhere.
   The following sections lay out the underlying themes,
   drawing in presently observed customer behaviors and
   connecting to the best practices and immediate actions
   through which you can tap into and take advantage of the
   social web.




                                                                                          2
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customers,
communities and
contact centers


   Most remarkable about the transformation of customer care
   is the simultaneous rise of customer-driven assistance and
   the adoption of social networking, fueled by web- enabled
   phone with their ubiquitous connectivity. Whether directly
   answering each other’s questions about a brand, product or
   service on the social web or working together in a moderated
   support community, individual consumers have recognized—
   sometimes correctly and sometimes not—that they are as
   able to resolve their own support issues as well as any “800”    It’s important to recognize the real value that human agents
   based agent whom they may have called on in the past.            add, too, because there is an entire class of issues that
                                                                    require or can be made better with an agent’s assistance:
   And, they can do it without automated attendants, without
                                                                    rebooking a ticket, seeking a refund or return authorization,
   having to repeatedly punch in the same basic information
                                                                    inquiring about an order status, initiating a funds transfer
   into an IVR and without having to comply with a rigid phone
                                                                    and more. Many of these are real-time and considered
   service schedule. “If you’ve reached this number after hours
                                                                    “urgent” by the person calling, adding complexity and
   it means we’re not here right now.” Yah, no kidding.
                                                                    expense to the mix. So while the mechanics of the service
   Popular as they may be, clichés about traditional customer       transaction itself may be in flux, the requirement for an
   service—the primary interface between most brands and            agent is likely a reality for the foreseeable future.
   most customers—do a disservice to the overwhelming
                                                                    At the same time, customers are, simply, more empowered.
   majority of trained professionals who really want to help, are
                                                                    From the self-serve web pages of the 90s to the secure
   eager to solve, who take pride in their work and are bullish
                                                                    online business applications that are now as close as
   on the brand they work for.
                                                                    your smartphone, customers have moved rapidly toward
                                                                    individualized commerce and service models, and more
                                                                    importantly, self-sufficiency. That means that anything that can
                                                                    be solved without talking to an agent is fair game for peer-to-
                                                                    peer self-service in a support community or similar forum.




                                                                                                                                             3
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Even more so, it means that anything that does require
an agent had better be as available, as frictionless and as
satisfying as what the best self-service platform can offer
up. So, as an operations or marketing professional you
have to focus on all three Cs: Customers, Communities
and Contact Centers.

Of the three, perhaps the biggest challenge facing business
today is effectively integrating agent-based customer care
processes with social media and doing it in a way that scales to
meet thousands of daily social posts without breaking the bank.

The consumer expectation is that your agent is as available
and ready as that smartphone app and adds those uniquely
human elements of compassion, understanding and
expertise, all with zero wait time. That’s a tall order. But
that’s the order the marketplace and demographic shifts
have evolved toward, and now it’s up to you to deliver.
Because if you do, the conversations around your brand will
help you sell more. Think Zappos.




                                                                                           4
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today’s problem.
yesterday’s tools.



   Social customer care is rapidly coming of age, in theory at        Now consider the same interaction on the social web: Your
   least. The promised business benefits include cost reduction       customer posts a question in the hopes of gaining resolution
   and more timely, in-channel responses. Being where your            in public, where your customer gains social leverage.
   customers are makes sense, and amortizing a single solution        Besides, someone out there just might have the answer!
   incidence over a larger customer base, reducing calls and          You see the post come in through your listening service (you
   reducing expenses in general are typical promised benefits.        are listening, right?) and watch as your brand representative
                                                                      resolves the issue. Now wait for it…because you know it’s
   In fact, a lot of self-serve and peer-to-peer models were
                                                                      coming: Your happy customer says “Thank You!” in public,
   implemented based on a projected ROI rooted in call reduction
                                                                      kicking off a series of retweets and likes that traverse the
   and deflection. But that’s probably not the biggest benefit, and
                                                                      social graphs of all those connected. You just picked up
   is almost certainly not the primary benefit going forward.
                                                                      brand points — points that go right into your brand value
   Instead, the real benefit is visible public advocacy for your      bank account. And this account definitely earns interest.
   brand. How so?
                                                                      When you combine the dynamics of social with the real
   Stop for a moment and consider the following: Your                 need for advocacy the question of tools naturally arises. The
   customer (or even potential customer) has an issue and             social media marketing solutions are well-established, but
   calls your help line. Your phone agent pleasantly and quickly      as the name implies they were built for marketing.
   solves the problem and thanks the customer for calling.
   Your customer hangs up happy and gets on with life.

   But what your happy customer doesn’t do next is notable:
   your customer probably doesn’t call three friends to share
   this experience. Instead, that customer hangs up the phone
   and concludes use of that support channel, because that’s
                                                                                  thank
   what customers have been trained to do: Make a call,                           you!!!
   resolve the issue, hang up and then move on.




                                                                                                                                              5
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platform property                             marketing                                 support
purpose                                       listen and monitor                        engage and triage
currency                                      trends                                    1:1 converstations
success metric                                share of voice, reputation                satisfaction, time to response
measurement                                   quarterly                                 minutes
work enviroment                               shared ownership                          individual accountability
social success                                retweets                                  case resolution
typical response                              “thanks!”                                 “how can we resolve?”
location                                      headquarters                              distributed centers



Customer care is different.
                                                                                                                        can you
For light-duty or one-off responses nearly any solution can
                                                                                                                        help me
                                                                                                                        fix this...
be made to work: Google Alerts, a branded Twitter presence
and a handful of social media agents can get you started.
                                                                                                  right
But what happens when your customers turn on in large                                             now?
numbers and begin to expect that you’ll answer their posts?
You know the answer, and it has something to do with a fan.

Take a look at the table below: It outlines the biggest
                                                                     As you press toward customer care as an undeniable source
differences between the marketing solutions that are
                                                                     of advocacy, scalable response capability and cost reduction,
available and the enterprise-grade customer care solutions
                                                                     the differences between marketing solutions— built to
that you really need. As you read through the table, think
                                                                     answer the question “Generally speaking, what is being said
about how many of these points you’ve heard mentioned by
                                                                     about the brand” and customer care, where the question is
your own Operations and Service managers when sitting in
                                                                     “Can you help me fix this right now?”—and what’s needed in
social media marketing capabilities presentation: The two
                                                                     operations could not be more different. Hammers are great
disciplines really are different.
                                                                     for nails, and when all you have is a hammer a lot of things
                                                                     look like nails. But take a closer look: Customers’ posts on
                                                                     the social web are nuts and bolts that can be used to build
                                                                     advocates. And instead of a hammer, what you really need is
                                                                     a wrench. This is the new generation of purpose-built tools
                                                                     for social customer care, built by design to do a better job.




                                                                                                                                             6
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in search of a
better answer



   Top analysts across the industry have their own points of          As your agents increasingly find themselves in social—
   view on a lot of industry trends. But they all agree on at least   rather than phone-based— interactions, it will be essential
   one thing: Social technology is becoming more important.           that your customer care infrastructure can scale to
   Research firm Gartner projects that 40 percent of the top          thousands of posts per day and switch seamlessly between
   1000 companies will have some component of peer-to-peer            agent-based and peer-to- peer resolution modes. Both are
   support as a part of customer care by 2015. That same              needed, and they must be tightly integrated.
   group, plus some share of the remaining 60 percent will
                                                                      Building social customer care at scale—across all
   also likely be investing in equipping their existing agents
                                                                      channels—is therefore the new frontier in brand marketing:
   to respond to social media posts either sent directly to the
                                                                      By pulling customers and agents together as collaborators,
   brand, or, mentioning the brand directly, by name, in the post
                                                                      by encouraging the resolution of issues in public and
   itself. That means businesses, across the board, are going
                                                                      training the entire organization to participate and support
   to demand agent-based solutions for social customer care,
                                                                      social efforts, savvy organizations greatly increase their
   both as a front-end response and as a complement to their
                                                                      likelihood of success as they press forward. The social web
   to investment in peer-to-peer social care efforts.
                                                                      is a boon to consumers seeking an empowered voice, to be
   Agent-based social customer care—at scale—is all about             sure. But it’s also the way in which winning brands will build
   systematically ensuring “better answers that delight your          loyalty, drive innovation and convert thousands of customers
   customers and drive sales.” It’s about participating directly      into brand advocates. In an increasingly connected world—
   in the larger context of social care, of communities and           think “customers, communities and contact centers”—the
   the channels through which customers are serving each              empowered brand advocate is the new prize.
   other. By building a combined presence in self-serve and
   peer-to-peer support communities and equipping your
   direct support agents to respond at scale and guide your
   customers to the best solutions you ensure the long-term
   success of your brand. By helping customers to participate,
   to take ownership and to resolve issues in partnership with
   your customer care team you build loyalty.




                                                                                                                                              7
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about the author




   As vice president of social strategy, Dave Evans brings                      Before that Dave held leadership roles at Austin’s GSD&M
   his vast experience in social innovation to connect our                      (now Idea City) and worked with clients such as Southwest
   customers’ requirements to Lithium’s product roadmap.                        Airlines, AARP, Wal-Mart, and the PGA TOUR. Dave is a
   As an industry recognized social media strategist and                        frequent keynote speaker and in-demand social strategist
   practitioner, Dave has worked in social business consulting                  in Fortune 1000 companies as well as early ventures. He is
   and development for over four years. Most recently he                        the best-selling author of ”Social Media Marketing: An Hour
   worked internationally with India’s 2020 Social and its                      a Day,” and his second book “Social Media Marketing: The
   clients, including Bengaluru International Airport, Intel, Dell,             Next Generation of Business Engagement.”
   PepsiCo and United Spirits, with Philips Consumer Business
                                                                                Follow Dave on Twitter @evansdave
   Unit (Amsterdam).




   Lithium social software helps the world’s most iconic brands to build brand nations—vibrant online communities of passionate social customers.
   Lithium helps top brands such as AT&T, Sephora, Univision, and PayPal build active online communities that turn customer passion into social media
   marketing ROI. For more information on how to create lasting competitive advantage with the social customer experience,
   visit lithium.com, or connect with us on Twitter, Facebook and our own brand nation – the Lithosphere.


   lithium.com | © 2012 Lithium Technologies, Inc. All Rights Reserved
                                                                                                                                                            8

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The Changing Dynamics of Customer Care

  • 1. the changing dynamics of customer care
  • 2. share this whitepaper contents 1 abstract 2 customer care: the new marketing outpost 3 customers, communities and contact centers 5 today’s problem. yesterday’s tools. 7 in search of a better answer 8 about the author subscribe to request a demo SocialMatters we help companies unlock the passion of their customers. The Lithium Social Customer Suite allows brands to build vibrant customer communities that: reduce service costs with grow brand advocay with drive sales with innovate faster with social support social marketing social commerce social innovation lithium.com | © 2012 Lithium Technologies, Inc. All Rights Reserved 2
  • 3. share this whitepaper abstract Customer care is “going social” and there’s no turning back. The market has spoken. That means it’s important to keep a strategic focus on the three C’s: Customers, Communities and Contact Centers. Each plays a distinct role in contemporary social customer care. This whitepaper focuses on the ways contact centers — forced by the need for massive scalability and internal social data management – can strategically leverage the social web and peer-to-peer forums to gain value from the socialization of all interactions with customers. Evolved contact centers drive marketing success as well as overall business success through a repeatable process that results in faster ascension to “customer advocacy” and hence a faster time to sales through direct, measurable benefits (like fiscal ROI) via gains in NPS or similar satisfaction-based customer lifecycle value methodologies. ! ? 1
  • 4. share this whitepaper customer care: the new marketing outpost Customer care is the new battlefront in the fight for brand advocates. Whether you view this as an expansion of Operations into Marketing or the simple necessity that marketers increasingly focus on customer experiences both pre- and post-sale as significant drivers of measurable conversion, the end-game is the same: Marketing and Operations—what is promised versus what is delivered— fuse in Customer Care, where they form the experiential basis for the majority of the brand-related conversations happening now on the social web. It’s a trend that is accelerating and as such has become a prime challenge for CMOs and COOs. This whitepaper dives into the new social dynamics—the new role of the customer as a brand advocate and the ways in which proper attention to the social conversations occurring on Twitter, Facebook, in peer-to-peer support forums and in blogs can either wreak havoc inside your purchase funnel or be the most important driver of measurable bottom-line gains you’re likely to find anywhere. The following sections lay out the underlying themes, drawing in presently observed customer behaviors and connecting to the best practices and immediate actions through which you can tap into and take advantage of the social web. 2
  • 5. share this whitepaper customers, communities and contact centers Most remarkable about the transformation of customer care is the simultaneous rise of customer-driven assistance and the adoption of social networking, fueled by web- enabled phone with their ubiquitous connectivity. Whether directly answering each other’s questions about a brand, product or service on the social web or working together in a moderated support community, individual consumers have recognized— sometimes correctly and sometimes not—that they are as able to resolve their own support issues as well as any “800” It’s important to recognize the real value that human agents based agent whom they may have called on in the past. add, too, because there is an entire class of issues that require or can be made better with an agent’s assistance: And, they can do it without automated attendants, without rebooking a ticket, seeking a refund or return authorization, having to repeatedly punch in the same basic information inquiring about an order status, initiating a funds transfer into an IVR and without having to comply with a rigid phone and more. Many of these are real-time and considered service schedule. “If you’ve reached this number after hours “urgent” by the person calling, adding complexity and it means we’re not here right now.” Yah, no kidding. expense to the mix. So while the mechanics of the service Popular as they may be, clichés about traditional customer transaction itself may be in flux, the requirement for an service—the primary interface between most brands and agent is likely a reality for the foreseeable future. most customers—do a disservice to the overwhelming At the same time, customers are, simply, more empowered. majority of trained professionals who really want to help, are From the self-serve web pages of the 90s to the secure eager to solve, who take pride in their work and are bullish online business applications that are now as close as on the brand they work for. your smartphone, customers have moved rapidly toward individualized commerce and service models, and more importantly, self-sufficiency. That means that anything that can be solved without talking to an agent is fair game for peer-to- peer self-service in a support community or similar forum. 3
  • 6. share this whitepaper Even more so, it means that anything that does require an agent had better be as available, as frictionless and as satisfying as what the best self-service platform can offer up. So, as an operations or marketing professional you have to focus on all three Cs: Customers, Communities and Contact Centers. Of the three, perhaps the biggest challenge facing business today is effectively integrating agent-based customer care processes with social media and doing it in a way that scales to meet thousands of daily social posts without breaking the bank. The consumer expectation is that your agent is as available and ready as that smartphone app and adds those uniquely human elements of compassion, understanding and expertise, all with zero wait time. That’s a tall order. But that’s the order the marketplace and demographic shifts have evolved toward, and now it’s up to you to deliver. Because if you do, the conversations around your brand will help you sell more. Think Zappos. 4
  • 7. share this whitepaper today’s problem. yesterday’s tools. Social customer care is rapidly coming of age, in theory at Now consider the same interaction on the social web: Your least. The promised business benefits include cost reduction customer posts a question in the hopes of gaining resolution and more timely, in-channel responses. Being where your in public, where your customer gains social leverage. customers are makes sense, and amortizing a single solution Besides, someone out there just might have the answer! incidence over a larger customer base, reducing calls and You see the post come in through your listening service (you reducing expenses in general are typical promised benefits. are listening, right?) and watch as your brand representative resolves the issue. Now wait for it…because you know it’s In fact, a lot of self-serve and peer-to-peer models were coming: Your happy customer says “Thank You!” in public, implemented based on a projected ROI rooted in call reduction kicking off a series of retweets and likes that traverse the and deflection. But that’s probably not the biggest benefit, and social graphs of all those connected. You just picked up is almost certainly not the primary benefit going forward. brand points — points that go right into your brand value Instead, the real benefit is visible public advocacy for your bank account. And this account definitely earns interest. brand. How so? When you combine the dynamics of social with the real Stop for a moment and consider the following: Your need for advocacy the question of tools naturally arises. The customer (or even potential customer) has an issue and social media marketing solutions are well-established, but calls your help line. Your phone agent pleasantly and quickly as the name implies they were built for marketing. solves the problem and thanks the customer for calling. Your customer hangs up happy and gets on with life. But what your happy customer doesn’t do next is notable: your customer probably doesn’t call three friends to share this experience. Instead, that customer hangs up the phone and concludes use of that support channel, because that’s thank what customers have been trained to do: Make a call, you!!! resolve the issue, hang up and then move on. 5
  • 8. share this whitepaper platform property marketing support purpose listen and monitor engage and triage currency trends 1:1 converstations success metric share of voice, reputation satisfaction, time to response measurement quarterly minutes work enviroment shared ownership individual accountability social success retweets case resolution typical response “thanks!” “how can we resolve?” location headquarters distributed centers Customer care is different. can you For light-duty or one-off responses nearly any solution can help me fix this... be made to work: Google Alerts, a branded Twitter presence and a handful of social media agents can get you started. right But what happens when your customers turn on in large now? numbers and begin to expect that you’ll answer their posts? You know the answer, and it has something to do with a fan. Take a look at the table below: It outlines the biggest As you press toward customer care as an undeniable source differences between the marketing solutions that are of advocacy, scalable response capability and cost reduction, available and the enterprise-grade customer care solutions the differences between marketing solutions— built to that you really need. As you read through the table, think answer the question “Generally speaking, what is being said about how many of these points you’ve heard mentioned by about the brand” and customer care, where the question is your own Operations and Service managers when sitting in “Can you help me fix this right now?”—and what’s needed in social media marketing capabilities presentation: The two operations could not be more different. Hammers are great disciplines really are different. for nails, and when all you have is a hammer a lot of things look like nails. But take a closer look: Customers’ posts on the social web are nuts and bolts that can be used to build advocates. And instead of a hammer, what you really need is a wrench. This is the new generation of purpose-built tools for social customer care, built by design to do a better job. 6
  • 9. share this whitepaper in search of a better answer Top analysts across the industry have their own points of As your agents increasingly find themselves in social— view on a lot of industry trends. But they all agree on at least rather than phone-based— interactions, it will be essential one thing: Social technology is becoming more important. that your customer care infrastructure can scale to Research firm Gartner projects that 40 percent of the top thousands of posts per day and switch seamlessly between 1000 companies will have some component of peer-to-peer agent-based and peer-to- peer resolution modes. Both are support as a part of customer care by 2015. That same needed, and they must be tightly integrated. group, plus some share of the remaining 60 percent will Building social customer care at scale—across all also likely be investing in equipping their existing agents channels—is therefore the new frontier in brand marketing: to respond to social media posts either sent directly to the By pulling customers and agents together as collaborators, brand, or, mentioning the brand directly, by name, in the post by encouraging the resolution of issues in public and itself. That means businesses, across the board, are going training the entire organization to participate and support to demand agent-based solutions for social customer care, social efforts, savvy organizations greatly increase their both as a front-end response and as a complement to their likelihood of success as they press forward. The social web to investment in peer-to-peer social care efforts. is a boon to consumers seeking an empowered voice, to be Agent-based social customer care—at scale—is all about sure. But it’s also the way in which winning brands will build systematically ensuring “better answers that delight your loyalty, drive innovation and convert thousands of customers customers and drive sales.” It’s about participating directly into brand advocates. In an increasingly connected world— in the larger context of social care, of communities and think “customers, communities and contact centers”—the the channels through which customers are serving each empowered brand advocate is the new prize. other. By building a combined presence in self-serve and peer-to-peer support communities and equipping your direct support agents to respond at scale and guide your customers to the best solutions you ensure the long-term success of your brand. By helping customers to participate, to take ownership and to resolve issues in partnership with your customer care team you build loyalty. 7
  • 10. share this whitepaper about the author As vice president of social strategy, Dave Evans brings Before that Dave held leadership roles at Austin’s GSD&M his vast experience in social innovation to connect our (now Idea City) and worked with clients such as Southwest customers’ requirements to Lithium’s product roadmap. Airlines, AARP, Wal-Mart, and the PGA TOUR. Dave is a As an industry recognized social media strategist and frequent keynote speaker and in-demand social strategist practitioner, Dave has worked in social business consulting in Fortune 1000 companies as well as early ventures. He is and development for over four years. Most recently he the best-selling author of ”Social Media Marketing: An Hour worked internationally with India’s 2020 Social and its a Day,” and his second book “Social Media Marketing: The clients, including Bengaluru International Airport, Intel, Dell, Next Generation of Business Engagement.” PepsiCo and United Spirits, with Philips Consumer Business Follow Dave on Twitter @evansdave Unit (Amsterdam). Lithium social software helps the world’s most iconic brands to build brand nations—vibrant online communities of passionate social customers. Lithium helps top brands such as AT&T, Sephora, Univision, and PayPal build active online communities that turn customer passion into social media marketing ROI. For more information on how to create lasting competitive advantage with the social customer experience, visit lithium.com, or connect with us on Twitter, Facebook and our own brand nation – the Lithosphere. lithium.com | © 2012 Lithium Technologies, Inc. All Rights Reserved 8