“To find out, the folks over at ClickFox, a company specializing in customer experience analytics, conducted a survey to assess the potential cost savings from addressing customer service issues via social media, the impact of word of mouth influence in the social sphere, and the degree to which customers understand the tools currently available to them.”
They found 40.2% of customers who weren’t able to get their issues resolved in a timely manner via social media then resorted to calling the company’s toll-free number. ClickFox estimates each phone call to customer service can cost companies $15 or more–avoidable costs that can directly impact a company’s bottom line.
“They need to be able to capture what happens during every interaction–to create a link between an anonymous Twitter user and their CRM system” Dekel added.
That means companies must focus on educating their customer base on how and when to use each social media platform in a way that’s easy to understand.
“Relationships drive business. Within the chaotic crush of interaction data coming off the Internet, smart mobile devices, Social Media, and Communities, is pure customer relationship gold. Three CRI (Customer Relationship Intelligence) metrics distill the goldâ€”Relationship Value, the â€œeffectâ€ in relationship cause-and-effect; Interactions, the â€œcause;â€ and Variable Interaction Cost.”
Customer retention is even more of a mystery–no one is in charge. And that is where the MONEY is! Some 80% of revenue comes from repeat business and referrals, only 20% comes from new customers typically.
It is time for a shift from a company-and-product focus to an individual customer-focus across the entire customer lifecycle. Hereâ€™s the difference in â€œwhat isâ€ compared to â€œwhat could beâ€:
The difference between looking backward as is standard practice now and looking forward with our leading indicator for profit, Relationship Value as a guide.
The difference between making decisions based on head count and allocated costs versus putting variable costs where they belong on the Individual Contact.
The difference between relying on what people SAY they will do, looked at in aggregate, instead of on what they actually DO individually.
Managing based on real-time operational data tied to Individual Contacts and to real-time profit is a huge improvement. Not only does it make for better use of resources and deliver better governance, but you can compete and win based on exclusive customer relationships.
Interactions with customers are the essence of strategy execution and value creation. Sustainable competitive advantage comes from understanding and acting on your customer behavior and profit patterns better than your competitors understand and act on theirs.
The right customer relationship metrics–Interactions, Variable Interaction Cost, and Relationship Value–change the game. They measure relationship cause-and-effect at what cost.
Social Media and Communities Play an Important Role: They are driving the integration of Marketing, Sales, and Customer Service silos. That reality–and that many of the Interactions are already digital–makes measuring and managing Communities a logical place to begin using the CRI FRAMEWORK, METRICS, and PROCESS.
In the Management 2.0 competitive advantage goes to the companies who can optimize customer behavior and profit patterns better than their competitors. Hereâ€™s how to begin:
“One of the other key things in the report was the breakdown that Jane provided for the three types of workplace models which I actually found quite interesting. These three models were broken down into the fragmented, hybrid, and unified types of workplaces.”
The fragmented workplace is a struggle that many organizations today are faced with. In this scenario organizations have multiple home pages usually with their own username and password. Itâ€™s very inefficient and quite time consuming to access multiple technologies from multiple sites (intranets and portals).
The hybrid workplace scenario as describe by Jane, occurs when organizations accept that an intranet is their main entry point within the organization (to get tasks done and find information). However, in this scenario the organization still has several other portal or intranet sites that employees still have to access.
Finally we have the unified workplace, this is the best case scenario for organizations as employees are able to access absolutely everything they need through their â€œfront doorâ€ (intranet) to everything. The American Hospital Association is one of the companies that comes to mind which is working on this quite diligently.
Posted from Diigo. The rest of my favorite links are here.