3 Truths Every CMO Needs to Know About Social Media and the Customer Experience

Go beyond listening.

3 Truths Every CMO Needs to Know About Social Media and the Customer Experience
Social Media has had a tremendous impact on many aspects of our lives, from daily relations to our business practices. But one of the most dynamic changes is the blurring of lines between customer service and marketing. A typical sales funnel places these two activities on opposite sides of the customer experience but with social media in the equation that funnel is twisted back on itself, connecting the two in a very meaningful way. Marketers can gain significant insight even just by listening to those digital conversations. Looking at the full set of mentions about a brand a marketer will see:

70% 43% 34%

of the time

Issues with products or services

66% 42% 32%

of the time

Request about company, services, etc.

60% 34% 32%

of the time

Customer service interactions complaints

of the time

Crisis identification

of the time

Sales leads

of the time

Marketing campaign complaints

Competitive information

New product ideas

of the time

of the time

of the time

Size and scope of issues and concerns

But to get the full value, marketers need to go beyond listening. Further examining the connection between customer experience and marketing has lead us to uncover three essential truths that underline the importance of adding social customer service strategy to any cross-channel digital marketing plan. Responsive Customer Service via Social Media Is Critical for Customer Loyalty and Retention Social Media Turns Good Customer Service into Great Marketing An Efficient Social Media Customer Service Program Impacts the Bottom Line

Truth 1: Responsive Customer Service via Social Media Is Critical for Customer Loyalty and Retention
20% of people, more for younger demographics, report using social media to complain, and that number continues to rise. Accenture Global Customer Satisfaction Report states, price is not the main reason for customer churn, it is actually due to the overall poor quality of customer service. Social media is a powerful communication tool, making it possible for anyone to instantly connect, be it with other people or with the brands we do business with. That makes it a natural channel for frustrated users to resort to when they feel cut short on the support they expect. The percentage of customers who said they likedor even lovedwhen a company responded to them.

89%

The percentage of customers who switch brands following a poor customer-service experience.

83%

 Before ExactTarget SocialEngage, we were less connected to what we were doing on social media. SocialEngage has allowed more people to become involved in our social media marketing and increased engagement online.
 Caitlin Volkman, Interactive Manager, Portland Trail Blazers

51%

The percentage of customers who believe that companies wont respond to their tweets.

The risk is in the inherent transparency of social media, very little is kept private, so in exchange for the convenience of the instant connection, users and brands alike have to be prepared for the public nature of the exchange. The potential for one complaint to resonate and echo indefinitely around the social sphere is always present. The flipside of that is; the same holds true for a positive comment, and there lies the opportunity. When you address complaints quickly and competently, the social world sees itand a negative can become a positive. In the process you may not only save the one customer from defecting to your competition, but also all the customers who saw, and empathized with that customer. Its important to remember that it takes 12 positive experiences to make up for one unresolved negative experience, as stated by Ruby Newell-Legner in her Understanding Customers report. The percentage of customers who give companies one week to respond to a question, comment, or concern before they stop doing business with them.

50%

29%

The painfully-low percentage of complaints responded to by companies on Twitter.

*Sources: http://www.forbes.com/sites/rogerdooley/2012/09/18/complaints/ http://smallbiztrends.com/2011/10/3-stats-social-media-campaign.html http://www.maritzresearch.com/~/media/Files/MaritzResearch/e24/ExecutiveSummaryTwitterPoll.ashx

Truth 2: Social Media Turns Good Customer Service into Great Marketing
Trust friends and family Trust other online customers Trust company website 58% 70% 92%

The White House Office of Consumer Affairs reports, A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. Happy customers who get their issue resolved tell about 46 people about their experience. 92% of people say they trust recommendations from friends and family, 70% of people report trusting recommendations from other online consumers, but only 58% of people trust messages found on the company website and that number only decreases for traditional forms of advertising. As marketers we pour over messaging and advertising copy, making tweaks and chasing after that one perfect turn of phrase. But the impact of that marketing message pales in comparison to the impact that one recommendation from a current customer can have on a prospect. Social Media can be a highlight reel of the actual experiences your customers are having. Their friends and family, even strangers, can see that experience and judge for themselves whether you are a business they want to frequent. Its your job to make sure that highlight reel matches the brand message you want to portrayin that way each person on your social customer response team becomes the marketing face for your brand.
Source: http://blog.nielsen.com/nielsenwire/media_entertainment/consumer-trust-in-online-social-and-mobile-advertising-grows/

 Since implementing a fan engagement plan with ExactTarget, were better able to serve runners and provide customer service. Weve been able to cut our response time to customer questions posted on Twitter and Facebook in half, helping more runners in less time.
 Joel Ballezza, Digital Marketing Manager, Brooks

Truth 3: An Efficient Social Media Customer Service Program Impacts the Bottom Line
70% of buying experiences are based on how the customer feels they are being treated. McKinsey 55% of customers would pay extra to guarantee better service Defagto Research Forrester calculated the financial benefit that a higher customer loyalty score, as a result of improved customer service, would have on key industry verticals and found that there was significant value associated with improved customer experience strategy. Since social media amplifies the effect of any customer service activity, it plays a huge role in turning the potential value illustrated below into a reality.

$452,000,000
CONSUMERS ELECTRONICS:

INSURANCE INDUSTRY:

AIRLINE INDUSTRY:

$590,000,000 $307,000,000 $31,000,000

RETAIL INDUSTRY:

$92,000,000 $1,364,000,000 $1,297,000,000

WIRELESS PROVIDER INDUSTRY: HOTEL INDUSTRY:

CREDIT CARD PROVIDER INDUSTRY:

 I love using SocialEngage because it gives my hard-working team the freedom and flexibility to serve our customers better.
 Berenda Sikkenga, Manager, Virtual Customer Services, Ziggo

* Source: Burns, Megan (2012, March 26). 2012: The Business Impact of Customer Experience, 2012. Retrieved from Forrester Research database.

ExactTarget SocialEngage is the market-leading platform for social customer engagement, providing you and your team with the capabilities you need to deliver an excellent customer experience via your social channels. Let us show you how to maximize your social media presence. To learn more about how you can be everywhere your customers are, contact ExactTarget today. General Inquiries: 1.866.362.4538 Online: ExactTarget.com/Products