Wednesday, November 16, 2011

The new frontier of marketing, sales and service

Saturday, 12 November 2011 17:33 Manolito Tayag, Todd Wagner and Joe Hughes / Accenture 
  
WE should all now be somewhere between “aware” and “immersed” in the sharing and consumption of vast amounts of information about friends, acquaintances or indeed complete strangers that is social media. According to ComScore, Social networking on the likes of Facebook, Twitter, Friendster and MySpace now leads the share of time consumers in Asia spend on the Web (9.5 percent). Its closest competitor is Entertainment (9.1 percent) and staples such as e-mail and search come well behind (4.1 percent, respectively).
 
However, studies have shown that 70 percent of consumers worldwide have used Social Media to get information on a product, brand or company. And the Conference Board found 77 percent of adult Internet users considered blogs a “good” way to get information. So as social-media platforms evolve from being a means of sharing “stuff” to being part of the fabric of consumers’ day-to-day life, they are presenting huge opportunities to deliver value for enterprises.

So far, Social Media has brought opportunities such as “crowdsourcing” of new ideas, to “word of mouth” marketing channels, from “assisted online customer service” to “cloud recruiting.”  Starbucks crowdsourced 80,000 ideas from which 50 became new products, eBay users engaged through social media spent 54 percent more than other users, Dell made $6.5 million in incremental sales from Twitter discount coupons alone, and 28 percent of LinkedIn’s users are “hireable” senior executives.

Fundamentally, Social Media has brought interactions and inter-connectedness between consumers to a new level—everyone, everywhere, anything and anytime.

All this opportunity has come with its challenges as consumers raise their voice and businesses see their ability to influence fall.

Consumers now have the means to educate themselves about your product, prices, functionality, warranties, etc., long before they come into contact with agents or stores. They can access this information from home, from work, while out shopping and can instantly compare prices with local and international competitors even while they are browsing in a store or talking to an agent.

The traditional “company to consumer” dialogue used by marketing for decades has shifted to a “consumer to consumer” dialogue that disrupts the clean, controlled flow from you to the market. Forrester Research found nearly half of online users say information provided by other consumers is more important to them than data given by marketers of products and services.

The speed at which customers and their opinions are moving as a result of social media means companies must be able to adapt not just their offerings but their formats and processes based on what they learn from observing customers.

Not all consumers are “social media-enabled” so you cannot drop existing means of servicing customer to fund new ones. You will have to find ways to operate differentiated customer experience.

The shift of power to the consumer means customers are co-owners of your brand, significant influence lies within individuals within the “community,” the lines between marketing, sales and service have blurred, and data and technology have become essential enablers.

Our experience suggests that the following three essential elements will help you execute a successful social-media strategy:

Observe—Establish the ability to observe and interpret what customers are doing, and importantly, saying. Social-media monitoring tools can also glean both quantitative and qualitative responses to advertising campaigns for promotions, illuminate opportunities to improve one’s brand, uncover significant unmet customer needs, and identify people who may be highly predisposed to a brand or product.

Embrace—Embrace and do not try and control all the tools and social media that your customers are using and just join the conversation. This can start by simply “experimenting” with different customer experiences to discover those that resonate the most with each segment.

Evolve—Social-media activities may originate in one department but as your adoption of social media grows to include sales support, product development, customer service and e-commerce, the operational complexity increases. Establish a governance framework that engages and establishes a common set of guidelines for each of the internal stakeholders and establish the forums to enable the organization to develop collectively.

But don’t hang about—the competition has already started. According to Edelman Digital—Maxis has shown one of the biggest climbs in terms of mentions on social-media sites in 2010 and look set to continue. AirAsia has already established a team to engage and respond to customer complaints on Facebook. And while Facebook remains the No. 1 choice of social channels for consumers and companies, Twitter reached news levels as the “buzziest channel” for brands in Malaysia.

Social media has clearly disrupted our traditional modes of doing business but it is clear that companies that embrace it will be positioned to have a much greater influence on the dialogue with consumers.

• (The authors are the country managing director at Accenture Philippines, senior executive for crm practice for communications and high tech in North America and senior executive for global systems integration practice and leads the global customer service and support and integrated desktop offerings for electronics and high-tech industry group, respectively.)


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