Don Peppers Dancing Shoes for Honeybees

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@DonPeppers
COPYRIGHT © 2011. ALL RIGHTS PROTECTED AND RESERVED. 1

Strategy. Execution. Results.

an imminent hanging. [One's]
own even more so than

- Samuel Johnson

2 COPYRIGHT © 2011. ALL RIGHTS PROTECTED AND RESERVED. 2

Technology respects no borders

But different countries and regions do have
different cultures and regulatory requirements

In Europe, personal privacy is a more
significant public-policy issue than in the U.S.

In Japan and Korea, relationships are a more
natural part of all life, business and personal


Non-U.S. mobile marketing

for themselves and 3 friends to various FIFA events

Participants received a link to a mobi site and had to

Answer 2 questions (found on the site) and

Provide names and numbers of 3 friends, who were
then also solicited, all receiving regular updates

72% CTR for the overall campaign!


Enabling more trustworthy commerce

M-Pedigree offers SMS authentication of
pharmaceutical products



Lack of trust slows transactions
down and imposes frictional costs

When more trust is required, business
thrives, as obstacles are reduced

Business is facilitated by high levels of trust



works because human
beings are social animals

Bees and ants communicate new
discoveries to benefit the group



In the absence of communication
among your customers, advertising rules

But when customers talk to each other,
customer experience that counts

Now suppose you were a food



Create buzz to increase sales across channels

Engage

Improve search results for your brand

Gain insight into customer preferences and needs

Anticipate and recover from problems

Use crowd service to boost customer experience


buzz What are brand advocates
actually worth?

One research study of customers separated

LTV = CSV + CRV (i.e., spending plus referrals)

Surprise:
always the highest spenders!

Harvard Business Review, October 2007


buzz
CSV vs. CRV - Telecom Company
$2,500

$2,000

$1,500 Most valuable referrers
Value

CSV
$1,000 CRV

$500

$-
1 2 3 4 5 6 7 8 9 10
Most valuable spenders Customer Decile

Harvard Business Review, October 2007


Different aspects of
buzz
ILLUSTRATIVE
FCR
Competence
Flexible ATA

Good Intentions
Trustworthy Knowledgable
CSAT
Advocacy

"Exception"
Personable
issue handling

Empathy Competent


buzz
pre-established reputations

control the discussion
or manage the word-of-mouth

Set up the conditions for success
and then let it happen (or not)
April 2009: Ford announced its campaign to pick 100


buzz


buzz

October 2010 Economist Magazine:

Ford is planning a similar strategy to launch the


engagement

All employees encouraged to have Twitter accounts
Most customers first heard about Zappos by word of mouth

Custom application lets customers view product
reviews on their mobiles at the cosmetics counter

53,000 followers 437,000 fans


engagement


search
Conversations and product reviews in blogs or websites
are picked up by search engines

Social media traffic can easily generate many more
search engine hits

Chatter in its online community changed HP
from not appearing at all on first page of a
keyword search to dominating the page


insight

Listen for mentions of your brand (and your

Who is talking about the brand?

What are people saying about the brand?

Where are they talking about the brand?


insight

Also, pay attention to individual customers
What pain points are being highlighted? Directed to
company at large, or a particular situation?

What is the emotion or sentiment being shared, either
negative or positive?

What information is being shared about the various
customer experience touchpoints?


insight

succeeding in any social media environment

The customer is not interested in your stores or
your products or your people or your brand
The customer wants to be acknowledged

speak your language


problems
your organization can competently handle a

John Burton, SAP Labs

Handling a service problem:
Acknowledge
Apologize
Act


problems
Monitors Twitter, blogs, and online
review sites for negative mentions

2400 stores in nine countries


Why customers turn to Twitter
They can avoid the call center altogether
Complaints via traditional channels get lost or just
fall through the cracks

Twitter agents can be more objective and
empathetic
Immediate resolution to cross-departmental issues

issues, providing better answers


How Carphone Warehouse uses Twitter
Customer
posts on
her blog My Carphone Warehouse horror story!
Little did I know when I bought my phone from CPW
that I would enter a week-

Customer
then Read about my Carphone Warehouse horror story
here: www.customerblog.co.uk
the blog
Mon, 8 Mar, 15:55

Sorry to hear about your CPW problem. Maybe I can CPW
help. Send me a direct message @CPWcares responds
to tweet
Mon, 8 Mar, 17:34


How Carphone Warehouse uses Twitter
Customer
posts on
her blog My Carphone Warehouse horror story!
Little did I know when I bought my phone from CPW
that I would enter a week-

Customer
now writes Update: CPW comes through for me!
a positive First, I want to thank CPW for responding to my problem
blog post!


crowd service
Job Description:
Spend several hours a day,
up to 20 per week, at your
computer, answering
customer questions online
about technical matters like
how to set up an Internet
home network or how to
Justin McMurry, Keller, TX program a new high-
definition television

Pays: $0 per hour
Source: New York Times, April 25, 2009


crowd service

Customers helping other customers

Experience to date shows risk is minimal

But you have to be willing to give up some control


crowd service

FICO had to attract and engage Superusers
Ratings of advice, along with voting for best ideas

850,000 now on this credit-scoring analysis site

Customer service calls declined even though


crowd service

Roomba brand robotic vacuum cleaners

Complicated uses, complex home situations

Customers are now the primary service advisors
for other customers



Socially connected employees

If progress and innovation spring

tools to become more innovative and resilient



Analytics for retailers
Competes with big analytics, data, and software
firms like Oracle, SAS, IRI and Nielsen
Many partners involved in analysis, review and
decision-making designed to:

Optimize a trade spend

Optimize customer offers


DemandTec social media tool:

Launched: May 2011


Tools for staying connected

Organize groups

Follow co-workers
and partners



Social media: Management principles

Sharing
so how can a business tap into this?

De-control: Social activity is unpredictable, so
how can a business manage its operations?



Crowd service is a great example of sharing
Sharing
different from the money economy

At a cocktail party, suppose a friend asked you


Influencing the influencers:

Do NOT offer money, free products, or anything
of economic value to encourage sharing!

DO offer:
Acknowledgement: Post a comment on an
retweet a smart update
Recognition
status awards to accomplished contributors
Information: Useful data, insight, or non-confidential
organizational information
Access: Direct contact with insiders



Trust and punishment

People have a natural social desire to punish
injustice or selfishness in others

Wikipedia works not just because of the 300,000

police it for biased or self-interested writing!



Social networks are systems
E-Bay, Amazon, Wikipedia, and crowd-service
involve complex feedback loops

Negative feedback loop:
Creating vs. punishing

Positive feedback loop:
Popularity leads to
more popularity



De-control: Acknowledging unpredictability
Pushing on a system
does not produce linear,
controlled outcomes
control conversation

manage a social network
or a socially connected organization

Instead, you just have to give
your honeybees dancing shoes!


Five models for enterprise social media

Centralized: One department

Organic: Allows social media to

Hub-and-spoke: Relies on a cross-
functional team to enable others

Dandelion: Multiple hub-and-spoke
systems in a large organization

Honeycomb: Rare but effective, empowering
individual employees throughout the firm
Source: Altimeter Group


Basic principles:

Accept the idea that most people, left
to their own, actually want


Computers will never do everything

important in the social era

46

BA has well-controlled processes

decision

47 47

Saturdays in Santa Clara
Weekdays visiting schools


Jim Phillips loves HP!

wonderful marriage at home for 36 years


Jim Phillips loves HP!


Predictable
Surprises, trials
customer
and tribulations
High lifecycle events
Employees making
non-routine decisions
Consumer
Involvement

Low Threats to cost Business as
efficiency usual
Effective decisions require
employees to be:
Engaged Low High
Enabled
Process Standardization


The

(1769)


There has to be a person in there

What you want:
Self-organization

Your employees need to be
Engaged in their work and

Enabled to accomplish the mission


Don Peppers Dancing Shoes for Honeybees

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