Characterising different approaches to social media.

I gave a presentation today at the Exact Target Connections conference in London. The purpose of the presentation was to take a light-hearted look at the different approaches organisations are taking towards social media. The slides are in the slideshare presentation below:

Structures for authentic social media engagement

View more presentations from Laurence Buchanan.

In Summary, I described eight different approaches to social media. Although these could be seen as evolutionary steps, in fact, I emphasised during my presentation that there is no “right” approach per se. Different approaches will work for different organisations, with different requirements in different industries.

Approach 1- The ostrich approach

As the name suggests, the ostrich approach is one where the organisation chooses to simply ignore social media, either through fear, or simply lack of relevance or perceived value. The ostrich buries its head in the sand and hope that the danger will soon pass.

Approach 2 – The megaphone approach

This is one of the most common approaches that I see with organisations that have only dabbled with social media. Typically they start in Marketing / PR and view social media as another outbound channel to Tweet special offers, or link to press releases. Normally organisations that take this approach are poorly set up to handle two-way interactions when customers comment or complain. They assume that peer to peer simply means that people will forward on or re-tweet their broadcast content.

Approach 3 – The chameleon approach

If there’s one thing guaranteed to whip up a social media storm its deceit and a lack of transparency. Amazon incurred the wrath of bloggers when some of its product reviews were exposed as being written by authors, promoting their own books. The chameleon approach (also known as the “wolf in sheep’s clothing” approach) is one where the organisation tries to disguise itself and blend into a “public” forum, posting suspiciously positive comments and reviews...

Approach 4 – The dancing dad approach

I borrowed this one from a colleague of mine at Capgemini. The antithesis of the chameleon approach, the dancing dad stands out like sore thumb. Think about the industrial German manufacturer who sets up a Facebook Fan page so that its customers can “like” it. Not cool.

Approach 5 – The command and control approach

Often an approach embraced by organisations that have been burnt by social media. The command and control approach is one where only a select few can engage in social media and their participation is governed by strict guidelines of what they can say. Every blog, every Tweet, every video posted is heavily audited and in strict alignment with brand guidelines. Usually only a select few are allowed to participate.

Approach 6 – The hare and tortoise approach

This is one of the most common approaches to social media that I come across. The hare and tortoise approach is one where some parts of the organisation race ahead to set up new social channels, grab followers and “engage” with customers. Other departments lag far behind creating a disjointed customer experience both across different departments and also across new media and traditional CRM channels.

Approach 7 – The joined up approach

Clearly a tough approach to master. As its name suggests, the joined up approach demands the breaking down of silos across departments and across channels. Organisations that aspire to this aim typically show outside-in, customer-centric thinking and consider the customer’s cross-channel experience.

Approach 8 – Handing over control

A small number of organisations, typically start-ups, have found considerable success with this approach.  The organisation hands over control of product development ideas, recommendations, customer service etc to its customers via social channels. Threadless.com is probably the most famous example (t-shirts are printed based on user-generated designs and votes). GiffGaff is another good example; the UK-based MVNO in effect outsources its marketing, sales and customer service to its customers. Customers are rewarded with points that can be redeemed for pre-pay credit (or donated to a charity voted for by the community!) in exchange for their participation in the GiffGaff community.

This is far from an exhaustive list and clearly each organisation will have different needs and objectives. Can you think of any others?

Star Wars and Social CRM

The other day I was trying to explain to a client what social CRM was all about and what the difference was to the first generation of CRM. Knowing the client was a film-fanatic, I used a Star Wars analogy.

Despite the best of intentions first generation CRM systems were about technology-enabled command and control. Think of the Original Star Wars film, Darth Vader and the Death Star. As Supreme Commander of the Galactic Empire, Vader built the original Death Star to defeat rebel forces in the Galactic civil war. The Death Star was a monumental technological feat designed to control the Empire and attack the Rebels. Relating this to the first generation of CRM (the boom before the bust)

• First generation CRM systems were technology-centric monoliths
• They aimed to own and control all customer data and customer facing processes
• Marketers used this data to segment and bombard customers with spam
• Sales managers used this data to control sales reps
• Customer service managers used CRM to standardise and micro-manage agents

The first generation of CRM put powerful tools into dangerous hands resulting in many failed CRM initiatives and the CRM market going into the doldrums for several years (I likened this period to the start of "The Empire Strikes Back", when Darth Vader and the Galactic Empire had driven the Rebel Alliance into hiding on the remote ice planet Hoth.)

During the early years CRM had a fairly high failure rate (some analysts estimated 60-70%). Those projects that did succeed were small, agile and focussed on outcomes (like the x-Wing Falcons that attacked the first Death Star at the end of "Star Wars"… I realise I'm jumping around the Star Wars trilogy a little but bear with me!). The successful projects paid a great deal of attention to the customer experience, front line staff, incentives and culture. Typically they broke down the CRM vision into small digestible chunks and built incrementally.

Over time CRM bounced back. The industry made a mental shift from "Inside-Out" to "Outside-In", putting the customer back at the rightful heart of CRM programs and learning from previous failures (big-bang approaches, poorly aligned culture and incentives, lack of exec commitment etc). The industry woke up and started to get CRM right and companies started to reap tangible rewards for their investments. In "The Empire Strikes Back", Luke Skywalker's awakening began at Dagobah where Yoda introduced him to The Force an "omnipresent form of energy which can be harnessed by those with that ability…an energy field created by all living things that surrounds us, penetrates us and binds the galaxy together". The Force allows users to perform a variety of supernatural feats and can amplify certain physical traits.

Relating this to Social CRM, the Force is the sum of all customer comments, feedback, blogs, tweets, yelps, diggs and sentiment. Some organisations are able to tap into this using direct customer feedback to improve products and processes, drive customer word of mouth for marketing and customer collaboration for service. Those who do this well are able to achieve amazing feats - see my post on outsourcing your Marketing, Sales and Service to your customers. Social CRM is therefore a natural extension of CRM. It further energises the return of CRM by placing the customer not just in the centre but now in control of the conversation.

So when we get to "The Return of the Jedi", the final film in the original trilogy, Luke Skywalker is now a fully fledged Jedi Knight, the Ewoks lead the rebel fight and Lando Calrissian launches a final assault on the Death Star in the Millennium Falcon. In an ideal world, that would be the death of technology-centric, command and control CRM (the Rebel alliance would celebrate the fall of the Empire) , but I suspect things aren't quite that simple. The battle is far from won. The Force can be used for both good (Jedis) and evil (Siths). It amplifies the things that an organisation does well along with the things they do badly (see my post on 10 angry customer created sites and campaigns).

Some people think visually so here's a Prezi describing the above story. Enjoy and please let me know any feedback!

Outsource your Marketing, Sales & Service to your customers

No - the title of this blog post is not a typo… nor am I suggesting you ask your customers to set up an offshore call centre in Mumbai... Some organisations have customers who are so passionate about their product or service that they do their marketing, their selling and their customer support on their behalf. Of course there's nothing new here. Word of mouth has been around as long as trade and commerce, but the internet has enabled connectivity and a network effect to drive scale like never before.

Let's take a practical example. A few months ago I had a problem with my iPod - the screen had frozen. I looked around for a reset button but couldn't find one. So what did I do? Phone Apple's call centre? Of course not, I Googled it. Someone called "Apple_Fanatic" had already posted instructions on how to reboot a frozen iPod in an online support forum. Apple had, in effect, outsourced the first line of their customer support to their customers.

Problem fixed, I then started reading other posts in the forum. Apple had just launched their 3GS iPhone. I'd heard that the 3GS had new video features and was supposedly faster but I hadn't been onto Apple's web site to tale a look at the new product. I was tempted to look into the 3GS but I also knew that the price was pretty high so I started to read the comments and reviews in the forum. Most were impressed with the video, but many questioned the level of improvement from the previous 3G model, especially since prices of the 3G had dropped considerably. As price was a more important factor to me than video recording or additional speed, I went onto a price comparison site, found the cheapest supplier (who was looking to off-load a bunch of 3G phones before the 3GS hit the high street) and I made my purchase. Once my 3G phone arrived I again Googled instructions on how to set it up, read reviews on the best Apps to download and I am now a happy and enthusiastic Apple customer.

It struck me recently that through my customer lifecycle with Apple I had actually had almost no direct interaction with Apple. I'd been into an Apple store once to see the 3GS iPhone working but my primary contacts had been through other Apple customers who had done Apple's marketing and service on Apple's behalf. You could argue that in this example, the outcome wasn't entirely positive for Apple as I purchased the old 3G phone rather than the new 3GS, however, that would be more then offset by my long term value to Apple.

Of course not every company has products like Apple's that are so good they drive passionate loyalty amongst their customers. But in many industries, companies are trying to establish peer to peer  (P2P) collaboration:

• Amazon.com has a policy of "The best customer service is no customer service". They probably led the way in establishing peer to peer collaboration with product reviews (despite a slight glitch in 2004 when many authors were exposed to have written glowing reviews of their own books!). Their customer service was famous for not publishing a phone number, instead, encouraging (or rather forcing) customers to self-serve. Early on they had their fair share of criticism for not having a large call centre (one angry blogger published their phone numbers ), but these days their customer service is pretty well regarded and most customer accept their online policy. I had a recent problem that was solved quickly and easily.
• NikeiD allows customers to design their own sports trainer, review other users designs and post reviews online.
• SAP has created a number of communities for Developers (SAP Developer Network), customers, analysts and consultants (BPX community) and for Business Objects customers (Business Objects Community). All offer a forum for members to exchange information, blog, collaborate etc. In total the sites have more than 1.3m members in 200 countries, generating around 6,000 posts per day.
• O2 have created a customer forum with the explicit aim of encouraging P2P service collaboration. The site currently has 75,000 members who have posted 186k comments.
• Salesforce.com set up IdeasExchange to allow their customers to suggest product improvements, then vote on suggested product enhancements. The same technology is also used by Starbucks and Dell to gather ideas from their customers.
• As a slightly different example, Innocentive allows both companies and individuals to leverage the wisdom of the crowd. Users submit problems they are facing along with a "challenge reward" to tempt people into submitting solutions.

In most of these examples it only takes a tiny % of contributors to make P2P collaboration work (only a tiny percentage of Wikipedia users contribute to the content).  The challenge is how to maintain participation and reward and motivate those who participate. Wikipedia was recently reported to be losing tens of thousands of volunteers per month.

If you know of any good crowd-service examples, in particular ones that reward participants, then please let me know.

Ten angry customer-created sites & campaigns

We've all experienced bad customer service, a sales person that promises the earth but fails to deliver or the irritation of irrelevant marketing spam. Some people ignore bad customer experiences, others switch their business to another provider, others go on a crusade to name, shame and pro-actively share their negative experiences with others. The latter can have a hugely negative lifetime value to an organisation, in some cases even bringing the share price down.  This post is dedicated to those customer revolutionaries whose personal campaigns have had a tangible impact on their targets. Here are 10 examples of angry customer-created sites and campaigns:

1. United Breaks Guitars - incensed at seeing his guitar thrown around by a baggage handler on a United Airlines flight, and enraged by the company's denial of responsibility, musician Dave Carroll got his revenge by releasing a video trilogy on Youtube. "United Song 1" got 3.2 million views and 14,000 comments in just 10 days! A PR disaster that took 10% off United's share price.

2. United package smashers.com was set up by Keith Kimmel after he received wet, broken and delayed packages from UPS. Other customers followed suit and uploaded their own photos of broken packages. Some UPS employees even submitted photos from delivery vans and depots showing piles of broken parcels. At the point of writing the site seems to have been taken down but some of the photos are here.

3. Rage Against the Machine for Christmas #1 - over 550,000 people joined the Facebook campaign to keep X-Factor winner Joe McElderry off the Christmas number one spot!

4. The BT Guy - Patrick Askins from Warwick found national fame on the BBC national news after his video complaint about British Telecom was watched by 20,000 people on YouTube.

5. Marks & Spencer's storm in a D-cup - Beckie Williams started a Twitterstorm against M&S in protest at their "unfair" practice of charging an extra £2 on bras above a DD cup. Her Facebook Group Busts 4 Justice currently has 18,000 members and forced a "one price for all" policy across the M&S range.

6. HSBC's great graduate rip off - thousands of students rallied on Facebook to successfully force a change in HSBC's policy on student loan fees.

7. Dell Hell - Jeff Jarvis' "Dell Lies; Dell Sucks" blog post was read by thousands of people who had experienced similar quality problems with Dell products and similar frustration with their customer service. Dell eventually embraced the feedback and now has one of most forward-looking Social Media approaches.

8. Chasebanksucks.com andChase-sucks.com - these sites were set up by angry Chase Bank customers offering a forum for other customer to share their stories about  bad customer service, fraud rumours, incorrect charges etc. Both have or are facing legal action from JP Morgan Chase.

9. The Motrim Moms - Twitter user Jessica Gottlieb caused a Twitter Storm against an ad campaign by Motrin.  Mashable has a good review of the Motrin Moms campaign.

10. The Apple Time Capsule Memorial Register  - this site offers a forum for Apple customers to mourn the death of their time capsules. The site currently reports that the average life span for an Apple Time Capsule is 18 months and 30 days.

Please note that I make no comment on the individual companies mentioned above, I am more interested in the campaigns that customers have launched against them.

Of course there are many other examples . If you know of any great case studies please let me know or add them to this Pearltree!