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A presentation I gave at the Web 3.0 conference in 2011 outling the practical applications and process mapping involved in key emerging areas of opportunity for social media within enterprise. Including the structural and organisational implications with organisations to be social media 'ready'.
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Commercial Social Media Opportunities for Large Enterprise
#seanobyrne June 2011
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
The three main points I want to convey today
1. Social media is maturing fast – Innovation has never been more important
2. There are important structural and organisational implications when executing a social media solution
3. Some key areas within business which can benefit from emerging social media tools
1
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
KPMG & Social Media??
KPMG and Social Media??? (I thought they were a bunch of
accountants?)
2
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
How some people still think of us
3
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
The KPMG reality
4
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011 5
If you’re really interested…..there’s an App for it
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Social media strategy is not just…..
6
A complete social media strategy
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Social Media Emergence
Marketing focus Consumer insights
Innovative ad channel Two/three way dialogue
Content marketing User generated content
Siloed existence
Social Media Maturity
Commercial focus Customer acquisition Customer retention
SM customer service Social CRM & loyalty
Platform for help and support Organisational integration
Limited ROI
Marketing function
Cost Centre
Commercial ROI
Multiple functions
Revenue Generation
What we’re seeing
Last 5 years Next 5 years
Social Media will continue to rapidly develop over the short-term – find the opportunities!
History snapshot Direction of travel
7
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
What our clients are asking us about
Market Intelligence, social media
monitoring and forensics/analytics
Social media strategy development
Organisational transformation and
‘social media readiness’
Internal social media strategy and
partnering plan
Distribution channel analysis and value add of social media
Customer service channels analysis and
value add of social media
Cost reduction/efficiency gains through social
media
Reputation management
Customer acquisition, and retention through
social media
8
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Even the best SM strategies will fail without the right support systems
9
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
A process perspective of social media
Understanding the value flow of Social Media is critical to realising internal benefits
1
5
4 3
2
Awareness
Capture
Analyse Disseminate
Action
1. Awareness: Identification or input of a social media stimulus
2. Capture: Collect evidence to quantify or monitor the issue
3. Analyse: Understand the negative and positive impact of the issue both internally and to customers
4. Disseminate: Share the issue and the impact analysis to all relevant business functions for their leaders to own the issue
5. Action: Agree an action plan to resolve/control the issue and monitor the progress
10
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Example: Faulty device
Dependency on organisation functions
Function Issue Benefit(s)
Customer service
Low quality of customer service, engagement and resolution
• Higher quality of Customer Service
• More
effective issue resolution
• Customer feedback continuously reviewed to provide greater quality of service
The social media value flow applies also at the micro and project level
11
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Understanding cross-functional dependencies
Dependency on organisation functions
Functions Issue
Sales
Marketing
IT
HR
Risk Customer
service Internal comms Benefit(s)
Sales Ineffective sales process Higher/growing sales for less
cost per sale
Marketing Low brand recognition Higher brand recognition, high
customer engagement
IT IT/Infrastructure issues More effective IT for less per
unit
HR Low recruitment Higher recruitment for less cost per contact
Risk High Risk/low education Higher risk awareness and
more effective education etc
Customer service Low quality of CS Higher quality of CS, more
effective issue resolution etc
Internal Comms
Low internal awareness Higher internal awareness
and staff engagement
Social Media has a role across all functions, affecting operational processes and ways of working
12
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Underestimating the heavy lifting involved in SM can lead to frustration…
13
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Or worse…
14
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
15
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
16
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
“Customer service averages $12 per interaction via a contact centre versus $0.25 via self-service options” (Forrester)
17
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Social media networks have the potential to transform customer support costs
Current Support Model – Contact Centre
• “During the next 2 years, 30% of leading companies will extend the goals of their online community activities to the design of enhanced service processes…peer-to-peer support will supplement or replace Tier 1 contact centre support in >40% of top 1,000 in 5 years” (Gartner)
Future Support Model – Peer-to-peer
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
19
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Social Media for Customer Acquisition
SM acquired customers:
• Complete the enquiry form at 179% higher rate than the typical customer
• They made their first payment at an astonishing 732% better rate
• Went back and completed the form at a 680% higher rate
Case study: CareOne Debt Relief
• CareOne debt relief services in the US has 1.5 million members of it’s community
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
21
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
More choice in the market means more customer churn
22
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Social media to boost customer retention
• Customers report good experiences in forums more than twice as often as they do via calls or mail
• Community users remain customers 50% longer than non-community users
Case study: HSBC Community
• The HSBC Business Network offers advice and information on topics affecting businesses which drives existing customer retention and acquisition of new customers
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
24
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011 25
Sales Team A
Management
Fulfilment
Sales team B
Customers
Board
Prioritise key areas for improving internal communications – Company X
SM pilot needs • Governance • Processes • Risks • Technology • Education
= greatest need
WIKIs
Instant messaging
Collaboration sites
Sharepoint
Blogs, groups etc
Forums
RSS feeds
Possible SM tools
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
26
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Sentiment management – AON Risk management benchmark report
• Brand and image is the most concerning element keeping CEO’s up at night
• Social media is one of the most powerful tool for managing your brands online reputation and can benefit your NPS
27
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
The Power of social media monitoring
28
Contact centre feedback
Customer surveys
3rd Party insights & profile stats
Website interaction & analytics
Enriching your customer profiling with additional SM data sources
Reviews Ratings Recommendations Forum activity Sentiment Polls Live interactions
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Six areas within business which can benefit from emerging social media tools
Customer service
Customer acquisition
Customer retention
Internal collaboration
& KM
Sentiment management & monitoring
Emergence of new revenue streams
29
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Understanding changing forces affecting innovation and culture
30
4. Communications Employees must be made sufficiently aware of change and the importance of innovation to achieving the strategic goals 5. Training Successful adoption of an innovative culture also requires individual and group training.
1. Leadership Change must be led from the top 2. Policy, rewards, incentives Empower employees with flexible policies & working arrangements Other reward, incentives to encourage innovation 3. Business processes, technology and collaboration The right tools, processes, technologies and systems to allow employees to effectively collaborate
Enabling an Innovative culture
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
MindBank – Virtual banks
• In 2009 Sweden granted MindArk's subsidiary Mind Bank a license to conduct legal banking activities
• The in-game currency, the PED, has its value tied to
the value of the US dollar at the rate of 10 PED to 1 USD
• Users are free to "cash out" their PED into real money at any time
• Users are running virtual businesses and making profits in real money
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Final Thoughts
Social media:
• Has the potential to transform many parts of traditional business
• Has the capacity for significant cost savings in customer service and other areas
• The correct governance and operational models are required for it to succeed
© 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
June 2011
Contact
THANK YOU Sean O’Byrne Manager – Digital Economy Email: [email protected] Twitter: seanobyrne
