Proactive: Take the Initiative - destinationCRM.com

Proactive: Take the Initiative
Proactive CRM enables organizations to cut costs, minimize risk, protect their brand, and improve customer experiences.
By Lauren McKay (via destinationCRM.com)

Imagine a customer renting a car to move three short blocks in Brooklyn, N.Y. She calls on Zipcar, a membership-based car-sharing service—an alternative to buying or renting a car. After sweating in the July heat, hauling various household items up and down three flights of stairs, and making the same right-hand turns throughout several trips from one apartment to the next, her five-hour rental time has gone by in a flash. Suddenly, she finds herself nearing the rental deadline with not enough time to finish moving and return the car to the parking garage. Panicking, and checking her phone in disbelief at the time of day, she sees an SMS text from Zipcar, asking if she needs an extra 30 minutes. Elated, she texts back, a one-word affirmation and avoids a Benjamin-valued late fee and complete loss of her composure.

What Zipcar offers, an easy way to extend rental time, is nothing revolutionary. However, that simple proactive communication may be the difference between a consumer’s bad experience and a very good one.

Paul Greenberg, president and founder of CRM consultancy The 56 Group, makes the point that many companies are pushing toward building more positive interactions. However, Greenberg underscores a corporate truism: “Most companies don’t do anything but react, anyway,” he says.

Proactive CRM, as we are calling it, is a departure from traditional, reactive behavior and aims to take early action that facilitates a desired result. It could be giving consumers what they want before they have to ask for it. In some cases it involves monitoring products and customers to solve problems before they happen. In more cases, it’s arming customers with the tools and information they need to accomplish their goals. Each of these practices would undoubtedly create more positive customer experiences.

Proactive Service

Southwest Airlines appears to be the poster child for proactive CRM—the airline has a branch of its company appropriately titled “Proactive Customer Service Communications.” Fred Taylor, given the nickname “Mr. Apology” in a New York Times profile, took charge of the team after being plucked from the company’s front lines in 2007. Taylor, who presented at the 2010 Net Promoter conference, says he writes around 240 letters a year to Southwest passengers, often apologizing for unforeseen problems on flights or with travel scheduling.

Chris Carfi, vice president at Edelman Digital and author of the blog, The Social Customer Manifesto, was a lucky recipient of a proactive memorandum from Southwest in June 2007. Carfi’s flight to Oakland was disrupted by an unexpected stop in Omaha. A few weeks following the unpleasant plane ride, Carfi found a note from Southwest in his mailbox, one explaining the reason for the unexpected landing, apologizing for the inconvenience, and offering a SWA voucher for his experience.

One might argue that because the letter arrived after the bad customer experience that it was more reactive than proactive. However, the voucher, when combined with the letter, is a proactive attempt to keep Carfi, and others, from taking their business elsewhere. “The fact that they reached out proactively and communicated information in a timely manner—I thought that was phenomenal,” Carfi remarks.

According to Taylor, 70 percent of Southwest customers who receive proactive communications return to the airline and bring others with them. “We create a wow factor…and a positive storytelling experience,” he said at the conference. “I am fortunate to work for a company that puts forth a lot of support and resources to make sure my team [can] accomplish our mission each and every day.”

But the fact of the matter is that not all companies have the culture that Southwest does. Some struggle with the reactive part of CRM.

Proactive Suggestions

Carfi sees advancements in the way organizations will incorporate social media information into their customer engagement strategies. This would yield communications based on a consumer’s stated interests or buying history. Amazon.com has been a pioneer in this area. Businesses like Netflix and Pandora also excel at proactively suggesting new movies or music based on past behaviors.

However, right now, suggestions and recommendations work well for companies with subjective products like music and movies. Despite a company’s knowledge of customers and an engine that can generate what they might want next, customers might not be ready for recommendations in certain sectors. While recommending movies or music is not likely to be perceived as stalker-like behavior, offering healthcare information would raise some eyebrows. Also, there’s always the possibility that companies can go too far. “The flipside is if the recommendations are too proactive, especially around things you might like,” Carfi says. “Knowing where to draw the line—Is this creepy or stalker-y?—is important.”

Proactive Notifications

Proactive CRM can also give consumers the information they need to plan their day. Anyone who has ever waited around for a cable guy understands how frustrating it can be to plan an entire day around a service appointment. The best companies, Greenberg says, are the ones that now have developed sophisticated systems to carve out an hour time frame for arrival. “Those things are great because even if they have a problem, it’s not a four-hour problem that’s dragged it into the 6th or 7th hour,” Greenberg says. “They give you the information you need so you can make the judgments you need to make.”

Home furnisher Arhaus Furniture has taken that facet to the next level. John Roddy, senior vice president and senior logistics officer for the company, spearheaded an implementation of TOA Technologies a few years back to not only cut down on the time that its customers had to wait for furniture delivery, but to give them the ability to track the delivery trucks and even view a photo of the driver. “One of the biggest things we used to hear was that we didn’t communicate with customers enough [on] the day of the delivery,” Roddy says. With TOA’s ETA solution, Arhaus makes automated phone calls to customers to give them an exact idea of when to expect a delivery.

Changing the system has yielded fantastic customer satisfaction scores and feedback. Roddy reveals that about 90 percent of its furniture delivery recipients are females at home with children. “Making sure the right guy is coming to the house is pretty important so we let them see a picture of who is going to be arriving at the door,” Roddy says. “This is another step to reach the consumer and help them feel more at ease.”

TOA’s technology employs a predictive system that measures everything that happens in the field. Everything is reported and then the system takes a time stamp for every activity, via a real-time motion study. At the end of month, [TOA customers] create a performance profile for its [their] customers. That is then used that to estimate with a high degree of accuracy when a technician will arrive at a customer’s home.

Proactive Communications

For wireless music provider Sonos, being proactive means being pervasive. When Mike Carlino, senior director of customer service, came on board three years ago, about 85 percent of communications with customers occurred over the phone. Since then, the company has set up shop on social media sites, has developed a knowledge base for customer self-service, and has implemented online chat to assist customers.

Now only 40 percent of interactions are phone-based, according to Carlino. For every phone call, there are 15 page views of the online knowledge base. Carlino attributes the effectiveness of the solution to its consistent monitoring of issues that customers search. But still, Sonos puts a lot of emphasis on having a well-trained and friendly support team. “If you view tech support as a jet engine, where you suck ‘em in and spit ‘em out...you’re not going to fare well in the long run,” he says. Instead, Sonos focuses on longevity with customers and employees.

Proactive communication can mean a company reaching out about an issue that a customer might have, but it also could mean giving customers myriad ways to connect, based on her preference. Zipcar, for instance, encourages SMS correspondence, as well as mobile access of the site, and even unlocking the car with an iPhone.

5 Proactive Pointers
Being proactive requires more planning. However, in addition to decreasing support costs, anticipating customers’ needs can increase customer loyalty. Here are five ways to ignite a spark—and to keep it burning—with your customers.

1. Allow customers to opt in—and once they do, know what to do. If your customers have opted in to your communications, they are putting their faith in your organization to provide them with relevant and useful information. Before troubling your customers for their email addresses, cell phone numbers, and social networking identities, figure out what you are going to say. Strive for consistent information that will save consumers the time and trouble of having to seek it out for themselves.
2. Use proactive notifications. According a published report by Forrester Research Vice President and Principal Analyst Elizabeth Herrell, proactive customer communications have the ability to reduce costs for incoming calls. By letting customers opt in to messages—sent to their device of choice—companies can convey information that is important to customers, whether it be a new offer, an account-related issue, or a time-sensitive alert. Being relevant and respectful of consumers’ attention ensures that the tone of these messages remains informative rather than intrusive.
3. See past the dollar signs. Consumers will figure out pretty quickly if your communications are only just ploys to get them to spend more money. Well targeted promotions are fine; just make sure they answer the ever-important question: “What’s in it for me?”. Every so often, why not say “Thank You” to customers before blasting them with your latest and greatest products and services. A little unexpected appreciation can go a long way.
4. Do chat the right way. Forrester Analyst Diane Clarkson suggests that to make chat work, businesses must base invitations on a predefined set of visitor behavior metrics. In other words, you don’t want to chat up just anyone. [For more on chat, see feature “How Can I Help U?” on page TK.] Clarkson’s research indicates that 44 percent of online consumers say that having questions answered by a live person while in the middle of an online purchase is one of the most important features a Web site can offer. “A successful proactive chat implementation doesn’t end with a check mark next to the word ‘done,’” Clarkson writes. “Savvy eBusiness professionals understand that proactive chat success requires ongoing refinement of the business rules that will trigger chat invitations, staffing, and customer experience.” Another rule of thumb? Don’t annoy your customers.
5. If you have to react, be proactive in the response. Sometimes, being proactive means assessing risk and implementing backup plans in case something goes terribly wrong. Gartner Research Vice President Jim Sinur writes in a recent blogpost about the concept of “proactive scenario planning.” Referencing the BP oil spill, Sinur states, “The mess in the Gulf could have been avoided with the right ingredients.” An appropriate remediation plan could have significantly minimized the environmental damage.

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HOW TO: Get the Most From a Small Business Social Media Presence

(Via Mashable by Scott Gerber)

Today’s reality is that your business needs to be on social media, but the mere existence of your business on sites like Facebook and Twitter doesn’t guarantee a single sale, or even a single referral. In order for businesses to succeed in the social media space, they need to be properly educated on what works and what doesn’t. More importantly, business owners need to have realistic goals about what they’ll get out of social media.

When the right tools are used effectively with the right motives in mind, social media can have a huge impact on small business marketing and customer service efforts. You just have to understand how to properly determine and assess the return on investment you’re looking for.

When the right tools are used effectively with the right motives in mind, social media can have a huge impact on small business marketing and customer service efforts. You just have to understand how to properly determine and assess the return on investment you’re looking for.
I asked a panel of successful Gen Y entrepreneurs how small businesses can go about getting the most out of their social media marketing and how they can convert more of their existing social media followers into paying customers. Here are their responses.

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1. Experiment With Social Networks

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“Facebook and Twitter shouldn’t be used as marketing platforms, but rather one-to-one direct communications mediums with customers, potential customers, journalists, and other stakeholders. As the population of Twitter increases, and people start following thousands of other people, your message gets lost. Facebook’s news feed algorithm stops marketers from using their Fan Page as a loudspeaker because fans that aren’t engaged won’t see their content anyway.”
- Dan Schawbel, founder of Millennial Branding, LLC

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2. Quality, Not Quantity

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“Social media is first and foremost about building relationships. It takes time and consistent effort to see any meaningful results, but the time and effort you spend are worth it in the long run – if you do it right. While it’s great to have a large following on Twitter and Facebook, the value of your followers list is all about quality, not quantity. Think of it like this: if you had an ice cream shop and a thousand people a day walked through the door, but 950 of those were lactose intolerant, your high foot traffic wouldn’t be making you much money. To convert your social media followers into paying customers, remember ‘WIIFM’ (What’s In It For ME). In other words, you have to give your followers a reason to want to do business with you, and that reason has to be a benefit to them. Contests are one great way to engage followers, and if you tie them in with your business and give [a prize] that means something to your target audience, you can see results fairly quickly.”
- Adam Toren, co-founder of YoungEntrepreneur.com



READ THE REST OF THE STORY ON MASHABLE ---> HOW TO: Get the Most From a Small Business Social Media Presence

Social Media Optimization — Merging of Traditional Media, SEM and Social Marketing

Hotel Industry Leading In Social Media Marketing

The travel industry was one of the first industries to be heavily impacted by the Internet, and it is no surprise that they are one of the leaders in social media marketing.

According to a white paper from HSMAI and online marketing services company VIZERGY, travel puts more marketing budget toward digital than any other industry.

Nearly 70% of US hoteliers responding to the April 2010 study reported online was the marketing channel with the greatest return on investment, and the majority are using a variety of online channels to reach potential customers, including 60% who have implemented a social media marketing strategy. Read more... (155 words, 3 images, estimated 37 secs reading time)

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This is a preview of "Hotel Industry Leading In Social Media Marketing".

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Social Media Optimization — Merging of Traditional Media, SEM and Social Marketing

How 6 companies used social networking to revolutionize sales

Some sales organizations are skeptical of social networking’s ability to increase revenue. But these six no-cost business models prove it’s a resource every salesforce can capitalize on:

1. Best Buy’s Twelpforce: In July of 2009, Best Buy introduced Twelpforce – an entire team of customer service reps who respond to questions and requests exclusively via Twitter. It’s a revolutionary concept that’s already having an impact on satisfaction and loyalty, according to Best Buy CMO Barry Judge. It allows customers to avoid being put on hold, or left to wonder whether their requests are being handled. Instead, the problem is resolved ASAP and the customer knows exactly which steps are being taken to solve the problem. Plus, Twelpforce is a free way for Best Buy to announce and promote new offers and last-minute discounts.
2. Zappos’ CEO engages buyers via Twitter: Zappos reported more than a billion dollars in sales last year for the first time ever. One of the company’s key strategies – creating additional buzz and brand awareness via social networking sites. Zappos set up a microsite devoted to teaching its customers how to register and use Twitter. The Twitter charge was led by Tony Hsieh, Zappos’ CEO, who sent personal requests to develop a community of more than 1,600,000 followers who he interacts with daily. Hsieh uses Twitter to survey customers about business ideas. He also announces contests and free giveaways via his account. All of these updates give “followers” a reason to consistently tune in and find out what the Zappos CEO is up to.
3. Starbucks Coffee introduces “My Starbucks Idea:” Starbucks took social networking into its own hands by creating a customer site called “My Starbucks Idea.” The site gives customers the opportunity to pass on suggestions for improving sales, service or satisfaction. The company then posts the suggestions it’s considering online, encouraging other customers to “Share. Vote. Discuss. See.” The idea is to make customers feel as if they’re part of the company’s decision-making process, while gaining actionable feedback about why and how a certain idea should work. By encouraging customers to share their ideas, discuss what they like, vote for their favorites, and track the results, the company has created its own social network, devoted entirely to all-things-Starbucks.
4. Ernst & Young use Facebook as a recruiting tool: More than 60% of executives now have a profile on at least one of the popular social networking sites. Accounting pros at Ernst & Young decided to use that to their advantage by attracting top recruits via a “Careers” group on Facebook where everyone from intern candidates to high-level execs can see (and apply for) any E&Y job postings that are available. More importantly, the group gives Ernst & Young a consistent outlet for interacting with top recruits even when there are no job openings. That way, when something does become available, the company already has a pool of first-rate candidates who are eager for the opportunity.
5. AT&T develops Twitter microblogs: AT&T hosts a number of regularly-updated blogs available exclusively via Twitter, constantly keeping “followers” updated on industry news, changes to existing products, upcoming launches, as well as ways to maximize the value of AT&T’s service. By using this strategy, AT&T has created a “captive audience,” which it can build rapport with, while cross-selling and upselling new products.
6. Guitarmasterpro.net creates a viral sensation via YouTube: In December of 2005, the sales and marketing team at Guitarmasterpro.net recorded a homemade video of a teenager playing an unbelievable guitar solo in his bedroom. At the end of the solo, a quick ad popped up, explaining the boy learned how to play via Guitarmasterpro. To date, that video has been viewed more than 67 million times. 67 million! While companies like Burger King, Universal and Disney have all mastered the art of viral marketing, Gutiarmasterpro is an example of a small company that found an intriguing way to draw millions of prospects without high-cost ads.

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How 6 companies used social networking to revolutionize sales | BusinessBrief.com

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