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This past Thursday and Friday I attended Lithium’s annual customer conference on Community Management and Social CRM: LiNC 2010. I have some experience in these areas not only because I’ve worked on products to support Community Management and Social CRM (a.k.a. CRM 2.0) but also because as a User Experience professional, my job calls calls for customer empathy and a deep understanding of their needs. When I worked at a small start-up, Zaq Interactive Solutions in Toronto and Montreal about 10 years ago we were pushing online communities and community management. This was well before marketers and other areas of the organization were ready for it and that’s why the business failed. More recently I worked at Yahoo! and I was involved in the research, design and development of their first social shopping product around deals where the desire for customers to connect was extremely clear.

As mentioned, the main topic of the conference was Communities and Social CRM. Of course now, thanks to twitter, conferences like this one easily generate their own time-based community. I tweeted constantly throughout the conference (under the wrong impression that I could win an iPad; contrary to what you might read below, sometimes user incentives DO work :) ). The sense of community and the feeling that I belonged and was being heard was validated by responses, retweets and new followers. Even our complaints about the cold rooms made and impact and after a few tweets the temperature was promptly turned up.

Below is a summarization of what I heard and learned during the conference.

Your customers are everywhere. Are you?

Great idea and aside from sounding creepy it’s what you’re going to need to do. According to Patrick Riley, the Director of User Experience at Lithium:

  • “Gen Y triggered the movement towards the Social Customer”
  • “Now there’s more communication via social networks than email.
  • “3/4” people on the web are tied to social networks. They’re also very conversant with the various technologies available to them.
  • “Users are 4x more likely to contribute on mobile devices vs. desktop because they’re the most engaged. And Facebook mobile users are 6x more likely to contribute.

And consider this: “From first call resolution to first contact resolution, there’s a lot of stuff that’s gone on before that call.” – Paul Greenberg

Users want to be heard, recognized, and loved

The community feeds people’s needs to be understood, recognized, and valued. Letting the customer get control of their experience with the company is the core of everything. Customers want appreciation, not swag. Bragging rights are meaningful and receiving props from other community members is the kind of recognition they’re looking for.

While introducing the concept of Customer 2.0 at an Inside Sales conference last week, my colleague shared a truth in marketing video that sums up the above point about user recognition perfectly. Customer: “I’ve changed, we don’t hang out in the same places anymore. You don’t listen…”

There’s a shift towards transparency to gain customer trust

In Social CRM the company is “the man”. A lack of transparency making it difficult for customers to get the information they want affects loyalty. You should be brutally honest with your customers and speak in your own voice.

According to BestBuy the corportate culture and employee adoption is key. There social media engagemnts align with core philopsophies to empower employees and drive the customer experience. And Scoutlabs, recently acquired by Lithium, thinks every person in the organization should be in tune with the customer. They focused on making their system really easy to use because the voice of the customer doesn’t just below to marketing.

All superusers are not equal.

Superusers are your most valuable customers. They represent the “1” in the “90-9-1” principle. They are more likely to contribute to community sites and do positive brand marketing (via blogging) and defend your company on your behalf. At the conference, one of our prospects (and current product uses) asked to speak with me about my company’s user community. InsideView doesn’t have a formal community yet; that’s why I was at the conference checking out Lithium. I asked Matt (the prospect) why he would join our community and he said it’s because he’s so passionate about our product, SalesView and that he’d like to help out others with their experience with the product. These people do exist, you just have to find them. They come in 4 flavors:

  • connectors
  • critics
  • creators
  • collectors

Connectors help you sell. Critics give rich, actionable feedback. Why focus on these superusers who represent about 1% of your customer base? Because 1% of customers / trendsetters drive 15% of sales” (unknown source).

But don’t just focus on them. The real opportunity to grow your business is between the 9 and the 1 in “90-9-1” principle.

Don’t make participating in the community like work

Community contribution shouldn’t be like work. Or it won’t work. Adding labels and tags to make community content searchable is not something users want to do. The company can do that. Use your community to validate content. They’ll tell you if it’s wrong. And keep in mind that it’s much easier to start knowledge in conversation vs. on a blank page.

The Net Promoter Score is only the beginning

How do you measure the success of your products and services. We’ve been using the Net Promoter score for years. But we’ve been stopping short. Paul Greenberg asks what’s next? If step one is asking a customer how likely they would be to recommend the product(s) or service(s) to a friend, step two is “did you recommend…?” (that’s right; observed behavior is the only trusted measure), step 3 is “did they become a customer?”, and step four: “were they profitable?”.

Different types of customers require different types of communities

There are 3 types of communities:

  • 911 – break / fix
  • 411 – learn and improve
  • 511 – explore and discover
  • The users of these communities display different underlying behavioral patterns and it’s important understand what they are.

    Overall it was a great conference where much was learned. You can see all of my conference tweets using this search. I’ll leave you with one of my favorites:


    Beth Goldman
    Manager of User Experience

There has been some great content posted to the Web over the past few weeks discussing the definitions of industry terms that are increasingly being used, such as CRM 2.0, Social CRM and Sales 2.0, but whose meanings are still evolving. As a company that aims to deliver many of the benefits recognized in these emerging industries, we found it particularly interesting to hear from some of the experts in the field about what these new terms mean to them.

1to1 Media recently posted a very thoughtful discussion among three experts on Social CRM (sCRM), which discusses the strategies and conceptual framework behind the emerging sCRM market. The conversation is between Bill Band of Forrester Research, Brent Leary of CRM Essentials, and author Paul Greenberg, all of whom bring great insights into where Social CRM is headed and what it means for businesses today. Give it a listen here.

As evidenced by this discussion, there is a lot going on now in the field of sCRM, but it is also an industry that will continue to grow and mature. Russ Mayfield recently noted on the Socialtext blog “When it comes to sCRM, we have only discovered the tip of the iceberg.” In this post, Russ also gives a very interesting overview of Web 2.0′s evolution, which has driven much of the sCRM movement. He references Eric M. Johnson of the State Department’s Office of eDiplomacy who was quoted as saying that the State Department had shifted from a  “need to know” to a “need to share” culture”, and thus had created a Wiki community post-911. In many ways this quote also sums up how people at large have begun to approach information sharing differently with the advent of Web 2.0 technology.

While our culture has become increasingly driven to share information on the Web, the result is more organized and unorganized data being available to us than ever before. The core issue is how does one efficiently find the information that they need? That challenge is what we are focused on. No matter what industry term our technology falls under, at the end of the day we want our users to remember us as giving them the ‘right’ up-to-date information at the ‘right’ time.

In a huge (and legitimizing) nod to the work of Sales and CRM 2.0 innovators, Forrester Research recently published the report CRM 2.0:  Fantasy or Reality? Analyst Bill Band’s answer to the question posed in the title can be discerned from this great tidbit from the report:  “Now is the time to take action to start gaining the practical experience you need to break out of old mindsets and grasp new opportunities.”  In the report, Band showcases a number of CRM companies’ recent adoptions of Web 2.0 technologies, and gives an in-depth picture on what the different players are employing in their CRM 2.0 efforts.

We are delighted to be a part of the report’s highlight of our customer LucidEra in the “Energizing” section.  According to Band, “next-generation CRM thinking acknowledges the importance of bread-and-butter selling actions, but it incorporates the idea that an organization can ‘energize’ its best customers to boost its business.”  Band continues that companies “are doing this through fostering sales team collaboration and providing data and links for gaining introductions to influential customer network members by using business-oriented social networking and contact management solutions.”

Examples of such a strategy includes the exact socialprise work we do here at InsideView to bolster the sales force’s lead qualification through data harvested from the social Web.  It is great that industry analysts are seeing not only the value, but vital strategic role that Sales 2.0 is playing in the CRM space of today and tomorrow, and we are proud to be a part of this first official wave of Sales 2.0 innovation.

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