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Yesterday, Michael Wagner pointed me to this piece from Cindy Au (@Shinee_au on the twitternets) on the Matter Anti-Matter blog. It focuses on an interesting little incident that happened between Pinterest, a user, and the Mitt Romney campaign. You should go read it in all its glory here. Below are several of the good parts. Here’s how Cindy sets up the initial problem:

Recently, Pinterest was asked by officials from Mitt Romney’s campaign to change the name on the account of a user who had created a satirical board poking fun at Romney’s, how shall we say, epicurean tastes. 

While it’s clear the Pinterest team appreciated the commentary and creativity that Eric’s board brought to their site, when it comes to setting a precedent for the rest of Pinterest’s community, things like fake accounts and impersonation swing both ways. It’s not long before you have more fake accounts pinning items and proliferating ideologies that may not be so easy to stomach. 

In fact, Pinterest’s terms of service clearly prohibit impersonations. Here is the exact section. If the link doesn’t work for you, here it is:

General Prohibitions (Things you agree not to do): 

(…)

– Impersonate or misrepresent your affiliation with any person or entity

There it is in clear black and white Anglo.

So… it would have been easy for Pinterest to deactivate the account outright. It wouldn’t be the first time that a social network shut someone down for the slightest infraction, no matter how benign or accidental. (Facebook, I am talking to you.) Pinterest would have been well within its rights to drop the hammer on the evil little user who dared spit in the eye of their TOS. But they didn’t. Instead, Enid Hwang, Pinterest’s community manager, sent Eric this message:

From: Enid Hwang
Date: Fri, Feb 10, 2012 at 9:51 AM PST
Subject: Pinterest: “MittRomneyGOP” username
To: Eric Spiegelman

Hi Eric,

I’m Enid, the Community Manager at Pinterest. As you might have guessed, I’m writing regarding your username “MittRomneyGOP.” We were recently contacted by officials from Mitt Romney’s campaign because they feel it’s very misleading and they’re requesting that it be changed to “fakemittromney.”

We actually really appreciate political commentary on Pinterest – and I know your account is clearly satirical – but we’re a young company so we don’t have a feature/process in place for “verified accounts” (such as Twitter) which would make the purpose of your account immediately obvious to any user on the site.

If you don’t mind changing your username, let me know. Or, you can just go ahead and make the switch yourself at: https://pinterest.com/settings. We’ve been brainstorming alternatives and unfortunately we feel changing your profile picture or adding a byline on your “bio” section on Pinterest may not be sufficient because that information isn’t included with all pins that propagate through the site.

We’re also really open to discussing the issue more with you, so you can reach me directly at [REDACTED] if you have any questions.

I’m sorry for the trouble and again, don’t hesitate to call if you’re concerned about this!

Enid

One word: Human.

Here are several others: Mature. Respectful. Professional. Kind, even.

So what happened? Eric Spiegelman responded (somewhat nervously) with a plea to Pinterest. Here:

Hi Enid,

Obviously I understand your concern. And I can imagine as a new company (one that’s really doing a great job), you’d prefer not to have hassles like this. But at the same time, you’re a publishing entity that’s more or less open to the public, and I can’t in good conscience change my parody at the request of the subject of that parody. It should be obvious to the Romney campaign that nobody sees this as official, and that I am exercising my Free Speech rights in making fun of Gov. Romney’s utter tone-deafness when it comes to matters of privilege and class inequality.

That being said, I understand that you are well within your rights to delete my account. But I really hope you choose not to.

You have a wonderful service in Pinterest, and I wish your team all the best, however you proceed with this.

Best,
Eric

No expletives. No anger. No “you suck” and “how dare you” indignation.

Lesson 1: Enid’s tone in the initial message set the tone for Eric’s response.

Lesson 2: Initiative matters.

Now check out how Enid responded to Eric’s plea.

Hi Eric,

Thanks for getting back to me so quickly: We have no intention of deleting your account. It’s satire and it should stay! We’ll change the username (this doesn’t affect your boards, pins, or anything else about your profile settings) and we feel that’s sufficient. Once we institute verified accounts this, and any future issues, will be taken care of universally. That’s our responsibility so sorry again for having you caught in the middle of it.

I really appreciate your note (and compliments!) and thanks so much for your understanding,

Enid

Note that Enid struck right to the heart of Enid’s central concern: “We have no intention of deleting your account.” Perfect.

He then offers a compromise, which… may not have been ideal for Eric, but solves the problem for everyone (Mitt Romney’s epicurean tastes notwithstanding).

The first remark I want to make is this: The way Pinterest handled this violation of its TOS shines in sharp contrast against the way Facebook handles its TOS business. This is the proper way to handle TOS infractions of this sort. This is the proper way for a company to treat its customers, users and fans: With kindness and respect rather than with a stick, a whip, or a hammer.

The second remark is more of an outline, really. How to handle customer care & community management responses in instances like this:

1. Identify the problem.

2. Understand the problem.

3. Understand the ramifications of the problem for all parties involved.

4. Outline several solutions/compromises.

5. Reach out to the individual responsible for the problem in a non-confrontational, non-threatening way. Stiff corporate tones here probably won’t have the desired effect. Be human. Be relaxed. Be professional but somewhat informal.

6. Politely and kindly explain what the problem is and why it is a problem.

7. Appeal to the individual’s sense of community and fair play. This is important.

8. Offer one or several compromise(s) so the individual feels empowered to make a choice. This steers him/her in the right direction without any strong-arming.

9. Address whatever fears or apprehensions the individual has. Recognize that this is stressful. Make him/her feel at ease.

10. Apologize for the inconvenience. Empathize.

11. Thank the individual for his/her understanding, patience and sense of fair play. Be appreciative of his/her support. Bond.

12. Throughout the entire process, remember that just because you have the power to be an asshole doesn’t mean you should. Treat people well. Treat people well. Treat people well. Repeat this as many times as it takes. Human beings deserve kindness and respect, whether your product is free or not. You want to know the secret to loyalty and positive word of mouth? The first half: Great products at a fair price. The second half: This. It’s that simple.

Or… you could just hide behind the usual excuse (“we don’t have the manpower to deal with every case in this way”), suspend account after account without explanation, make a point of being as impersonal as possible, and build an army of haters.

Where there’s a will, there’s a way. Excuses have an effective range of about zero meters. We all build the companies we want to build.

At least for now, it looks like Pinterest is on the right track. Everyone should take note.

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CEO-Read  –  Amazon.com  –  www.smroi.net  –  Barnes & Noble  –  Que

– #smROI is now available in English, German, Korean and Japanese.

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I didn’t realize it until this week, but there still seems to be some confusion about Social CRM in certain business circles. Let’s fix that right now.

(Before you get too excited, Social Media ROI: Managing and Measuring Social Media Efforts in Your Organization won’t be followed by Social CRM: The Complete Guide to the Obvious. We can take care of this right here and without the need for another 299 pages of examples and how-tos.)

This is how the discussion started: Neville Hobson (@jangles on Twitter) asked Edelman Digital’s Chuck Hemann (@chuckhemann) and I what we thought of Esteban Kolsky’s (@ekolsky) definition of Social CRM yesterday. The definition, as it appears below, comes from this piece on Neville’s blog, dated 9 May 2011, following Luke Brynley-Jones‘ Social CRM 2011 event in London:

[…] The closest best definition on the day came from  Esteban Kolsky in his presentation on “Three Reasons You Will Do Social CRM”:

[Social] CRM is a philosophy and a business strategy, supported by a system and a technology, designed to improve human interaction in a business environment.

It’s a start. A good start, even, but while I don’t disagree with the definition completely (and here I must apologize to Esteban for what follows), it misses the mark twice:

First, CRM is neither a philosophy nor a business strategy, but a business function. CRM stands for Customer Relationship Management. (Emphasis on management: A function.) So before we do anything else, the definition should be changed to this:

[Social] CRM is a business function supported by a system and a technology, designed to improve human interaction in a business environment.

Second, the definition is far too vague about what the system and technology actually do. And because it is vague and doesn’t actually provide a clear explanation of what the technology does, it fails as a definition. We have to go a little further if we want to make it work.

Let’s begin with the last part and maybe we can find a way to whip it into something more helpful: “Designed to improve human interaction in a business environment.” What does that mean? The telephone is designed to improve human interactions in a business environment. So are email and memos. Faxes, IMs, SMS, blogs, video-conferencing and high tech conference rooms and work spaces all perform the same function. What differentiates SCRM from any other collaboration tool? is it even a collaboration tool?

You see how already, something crucial is missing.

If we want to look at the definition of SCRM in the context of company-customer relations, then we must include that element in the definition. Let’s see what that looks like:

[Social] CRM is a business function supported by a system and a technology, designed to improve human interaction between companies and consumers in a business environment.

Okay, that’s a little better. But we still aren’t there. We’ve established that CRM is a business function. We don’t need the final four words of the definition. In fact, they are incorrect as the expansion of CRM into the social space blurs the line between business environments and non-business environments. Our definition now becomes:

[Social] CRM is a business function supported by a system and a technology, designed to improve human interaction between companies and consumers.

Now we are getting somewhere. The definition is far less vague than it was before. We are starting to see what the aim of CRM is… but it still isn’t entirely clear, is it. What kinds of human interactions are we talking about? Is SCRM a customer service tool? A technical support tool? A marketing tool? What sets it apart from communications tools, which also improve human interactions between companies and customers?

We need to dig deeper.

Let’s start with the obvious: What is the difference between CRM and SCRM?

CRM collects data on consumers so that customer service reps and salespeople can look up their purchase history, billing history, complaint history, and any other information pertaining to their interactions with your company. It allows you to serve them better when they call with a question or problem, and it also allows you to better target them when the marketing department cranks up the budget furnaces. That’s what CRM does. It focuses on what consumers do with your company and allows you to use that information.

Social CRM (SCRM) aims to bring a whole new data set to traditional CRM by linking customers’ social data to their transaction data. What does that mean? Well, it means is that in addition to what traditional CRM tells you about these customers, SCRM also adds what they do outside of their relationship with your company: Where they go, what they like, what they share, what they search for, what they talk about, etc. by collecting that data from social networking platforms like Twitter, Facebook, blogs, YouTube, Foursquare and many more.

Fig.1: CRM view

Fig.2: SCRM view

Social CRM takes traditionalCRM and injects it with what can be best described as lifestyle data, human data, broader cultural and behavioral data. You are no longer limited to observing your customers in a controlled environment. You can now observe them in their natural habitat and understand him better.

It also gives you insights into whether or not specific customers talk positively or negatively about you, or not at all. It allows you to map their connections and affiliations. It allows you to understand their beliefs and behaviors better. It gives context to what they do in the tiny narrow bandwidth in which you interact with them as a business. It pulls back the curtain on what makes customers tick.

What SCRM promises to do is combine customers’ transaction data (what you already had access to through your traditional CRM system) with their social/lifestyle data (which they publish to the social web). Imagine the depth of insights this will yield.

So let’s come back to our definition problem. We left things at:

[Social] CRM is a business function supported by a system and a technology, designed to improve human interaction between companies and consumers.

We need to add what we just talked about:

[Social] CRM is a business function supported by a system and a technology, designed to improve human interaction between companies and consumers by connecting customers transaction data with the lifestyle data they share online.

The “improve human interactions” piece seems redundant now. The “technology” piece might also be too complex now to rely on just one. Let’s try that again:

[Social] CRM is a business function supported by a system and technologies whose aims are to improve a company’s ability to derive insights into customer needs and behaviors by connecting their transaction data with the lifestyle data they share online.

Note that the term “transaction” here meaning more than purchases. It encompasses all interactions with the company. An email is a transaction. An order is a transaction. A customer service call is a transaction.

Depending on how well you understand the world of CRM, here is a variation of the definition:

[Social] CRM is a business function supported by a system and technologies whose aims are to improve a company’s ability to derive insights into customer needs and behaviors by adding to their transaction data the lifestyle data they share online.

Are these last two ideal definitions of SCRM? I don’t know. You tell me. All I can hope is that these two versions of the definition – still works in progress – move the ball forward a little bit, at least for now.

My other hope is that by 2013, the term SCRM becomes obsolete, and CRM has simply evolved into the richer ecosystem of data, insights and consumer interactions provided by the social web. In my mind, the sooner we stop qualifying everything in terms of “social” or not social (as if the two were still somehow separate from one another), the better things will work. For now though, the painful transition continues. Viva la revolución!

A huge thanks to Esteban Kolsky for getting things started, and for letting me rudely snatch the baton from his hand (you’re a good sport, Esteban) and to Neville Hobson and Chuck Hemann for getting the conversation started earlier this week on the Twitternets. Their wonderful blogs, respectively, are here, here, and here.

Additional reading – This short and brilliant bit from Eric Swain: http://www.social-collective.com/2010/08/10/guest-post-social-media-is-dead-long-live-social-crm/

The comment section is now yours.

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 If you haven’t already, pick up your copy of Social Media ROI: Managing and Measuring Social Media Efforts in Your Organization (Que/Pearson) at quality bookstores worldwide, or download the e-version to your favorite device. Don’t let the title fool you, it is a lot more about building social media programs for companies than it is about measuring ROI. Check out the reviews on Amazon.com.

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Pop quiz: You own or manage a restaurant. A hotel. A coffee shop. A specialty goods store. A hot dog stand. A bank. A movie theater. A shoe store. A gym. A bodega. A hair salon. A sushi bar. A pub. A public park. A swimming pool. A museum. An art gallery. A city. Do you know who the mayor of your business is?

If you don’t, find out today. Right now. Here’s why: It could help your business grow pretty quickly if you play your cards right. More on that in a minute. First, here’s how to find out who has claimed the title of mayor on Foursquare: (Huh? fourwhat? Hang on. We’ll get to that too.)

The How:

Step 1: Go to www.foursquare.com

Step 2: In the search box (top right) enter your business name.

Step 3: When your business information pops up, look to the right of the screen. You will see an icon labeled “mayor”. That’s who the mayor is.

The Now What:

Find out who they are, and you give them the royal treatment next time they come into your store. Let them know you’re paying attention to a) Foursquare, b) whom is taking the time to check in every time they come into your place of business, and c) who is sharing that information (that recommendation) with their friends on Foursquare, Twitter and Facebook.

Think about giving them a discount or a gift while you’re at it. Set up a “mayor parking” spot outside. Treat them like a VIP inside the store. Address them as “Mister Mayor” or “Your Grace,” when they walk in. It’s up to you. Have fun with it. Give them more reasons to like you. It never hurts to reward kindness with kindness, and remember that it is supposed to be fun and rewarding.

The Why:

If you aren’t familiar with Foursquare yet, here it is in a paragraph: It’s a game played on mobile devices. People “check in” to businesses and other locations, and try to accumulate points. In some instances, they win much coveted “badges” (see some examples below).

In other instances, if they are the most frequent visitor of a location (like your store), they are crowned “mayor” of that location. The game is free, works on a variety of mobile platforms, and players have the option to share their check-ins with their network of family and friends on Foursquare, Twitter and Facebook. It’s a silly game, sure, but it is powerful as well. Here’s why:

1. Frequency – Because checking-in is a game, it is fun. That, in and of itself, is reward enough. Mayorships and badges are also rewards for activity on Foursquare. What it means is this: Foursquare gives people an incentive to visit your store more often, just so they can check in. Especially if you are running a promotion aimed at your store’s mayor. As a business, you can thus easily use Foursquare to increase the frequency of visits to your store(s). That equates to more foot traffic, more mindshare, and potentially more sales. (While they’re in your store, they’ll probably buy something.)

2. Reach – In case you missed it earlier, when someone “checks in” to your location, they broadcast that check-in to their various digital networks. Right now, that is mostly Foursquare itself, Twitter and Facebook. This will probably grow over time. But consider that the average american has what… over 200+ “friends” on Facebook? Think about the power of having a single customer broadcast that they are in your restaurant, in your hair salon, in your pub to 200+ of their friends every time they come in. Now multiply that by ten customers. Now multiply that by 100 customers.

Though not technically “active” word of mouth, Foursquare check-ins are still de-facto endorsement of your business. In other words, it isn’t just a question of exposure. A check-in is an affirmation of endorsement. It might as well say “I am here, and I am proud to tell you all that I am doing business here. Come do the same.” That’s the context of a check-in.

Every time one of your customers checks-in and broadcasts that they are doing business with you, they potentially trigger a visit in an average of 200 other potential customers. (Either existing customers or potential customers.)

3. Yield – Of the three, this one is probably the toughest to achieve, but as a measure of loyalty, yield (average purchase amount) can be impacted by foursquare activity. As frequency of visits increases and loyalty follows suit, it is likely that a portion of your customers will escalate their purchase amounts as well. Loyalty can lead to a higher percentage of wallet share, not just through buy rates (frequency) but also higher price-point purchases.

A word on escalation: Take the example of a bike shop. A casual customer may come in once a month and buy some energy bars, a bike jersey and some socks. As this customer is developed into a regular, they start purchasing all of their energy bars from you instead of buying them from several different places. They may also start jonesing for that new pair of cycling shoes and that new helmet they will soon rationalize they need to replace their “old” ones with. If you treat them well and understand their needs, this escalation may lead to a higher dollar purchase like a race wheel upgrade, a carbon-fiber set of handlebars upgrade, a full bike tune-up, or even a brand new bike to start off the new season in style.

Result: In six months to a year, you could potentially turn a casual customer who only bought low-hanging-fruit items in your store to a loyal customer with a habit of dropping large amounts of cash on premium upgrades with you, instead of blowing them on something else.

Note: You cannot escalate yield if you do not have a relationship with your customer. There is no shortcut here. You have to get to know them. You have to become part of their world. This is not something you can do from a corporate office, or from the back of the store. Someone has to interact with them on a human level – both online and offline.

More thoughts on how to leverage Foursquare:

How your business can use Foursquare is up to you. Use your imagination. Try different things. Be clever. Have fun with it. Perhaps you can work with Foursquare to create badges for your business, the way that Bravo, Starbucks, SxSW, Marc Jacobs and several cities (San Francisco, New York, Brooklyn and Chicago) already have. Here is Starbucks’ very own Barista badge. To obtain it, players only need check in at 5 different Starbucks locations:

Imagine the same thing for your business, or banding with retailers in your area to create a badge players could unlock by visiting 5 of your combined locations. You could work with an organization or with a city even, to help promote your business through Foursquare. You don’t have to do it all yourself.

Perhaps you can also create promotions around Foursquare activity, like flashmobs (using your business and a particular sales event to help customers achieve both all-too elusive swarm badges (50 people checking in together and 250 people checking in together.)

Another fun idea: Procure some Foursquare Merit Badges and ceremoniously award them to customers who acquired virtual badges online (see below).

Whatever you choose to do, start at the beginning: Find out who the mayor of your business is, acknowledge that status, and reward it with warmth and gratitude, if not with product.  Next: Create an account and get rolling. It’s your business. Take charge and participate. Welcome to a whole new world of marketing fun. If you’re lucky, you will beat your competitors to it. (Never underestimate first-mover advantage, especially in the age of twitter & facebook real-time word-of-mouth.)

Footnote: I spoke to two retailers yesterday who had never heard of foursquare. One didn’t know that dozens of customers were already checking into their store regularly, and I added the other’s venue because there wasn’t one yet. Guess what: One knows who the mayor of their business is today, and he has a plan now. The other will know as soon as someone becomes the mayor, and is already working on some promotions. We will revisit these two businesses in a few months to see how they fare.

Also check out Gowalla.com while you’re at it. Very much the same thing, and it too is growing.

Additional reading:

Via Mark Van Baale (@markvanbaale on twitter) – “Foursquare sees another big Domino fall

And this great piece via Mashable on Foursquare’s business analytics dashboard.

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I was digging through the vault yesterday, when I stumbled upon this fantastic post from Chris Brogan I had bookmarked almost a year ago:

I believe we’re going to shift back to thinking customer service and community management are the core and not the fringe. I believe we’re going to move our communications practices back in-house for lots of what is currently pushed out to agencies and organizations. I believe that integrity, reputation, skills, and personality are going to trump some of our previous measures of professional ability. I believe the web and our devices will continue to move into tighter friendships, and that we will continue to train our devices to interpret more of the world around us on our behalf.

Read the rest here.

Yes, yes, yes, and yes. In his post, Chris also talks about bringing value-add and core competencies together – which is a drum I have been beating for years.

This is by far the best piece of advice I’ve heard this decade, also from Chris:

Here’s a quick way to really turn around your clients: be helpful.

I know what you’re thinking: “Duh!” Right? But when was the last time you actually said those two words outloud during a strategy meeting or quarterly business review? When was the last time someone actually suggested this as a course of action? As a core competency? As a business objective? As a mantra?

And more importantly, with all the commotion around Social Media tools, platforms, channels, measurement, content and tactics, when was the last time you looked at Twitter, Facebook, LinkedIn, FriendFeed, etc. from the perspective of being helpful? Of providing assistance and value to customers – instead of merely promoting your wares? Best Buy has. So have Starbucks, The Home Depot, Virgin America, Comcast, UPS,and scores of companies gaining traction in the space AND converting these net new positive interactions into new business and increased loyalty.  So my question to you is this: As a company, what are you doing to be helpful TODAY? How are you using communications platforms to be helpful? Phones, email, mobile, web, Social, print, radio, etc.? Where are you scoring high marks? Where could you do better?

Is the “just be helpful” mantra so simple, so obvious that we might have forgotten to make it a cornerstone of every interaction we have with the public? I hope not, but I’m thinking yeah, probably.

I think I just gave you your assignment for this week.

😉

Note: Chris and I will be speaking, listening and being as helpful as we can at the Like Minds conference and summit in Exeter, UK on February 26 and 27. Look for #LikeMinds on Twitter if you want to follow the fun.

Then on March 4-5, I will be answering questions in Chicago in an “open mic” style event at a #SohoSeminar. This will be kind of cool: Usually, I spend more time presenting than answering questions in a live forum, so being able to devote ALL of my time to answering questions is something I look forward to.  Click here to register for the event now. It should be well worth it.

Cheers.

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