CRM - February 2009 - (Page 48)

THE Recession ISSUE SCOUTING REPORT BY BETH EISENFELD AND DONNA FLUSS Contact Centers in the Web 2.0 World Web 2.0 technologies can support your customer service processes T H E WO R L D of customer service is chang- ing. The accepted wisdom used to be that for every unhappy customer, you could count on 11 more customers (or potential customers) hearing about the unfortunate situation. But now, without even picking up the phone, just a few clicks on a keyboard and an Internet connection can spread one person’s opinions to millions of people worldwide. Web 2.0 is transforming the way people are expressing themselves. People are using the Web to broadcast their frustrations, look for companionship, and seek solutions to their problems by tapping into the power of online communities. Consumers are becoming accustomed to and demanding instant access and rapid results, including immediate resolution of any issue or question. This demonstrates how the Internet and Web 2.0 social networking applications are changing the dynamics of customer service in the 21st century. Web 2.0 is the broad term used to describe the evolving use of the Internet as a technology platform to enhance functionality, communications, and collaboration. It encompasses the explosion of Web-delivered content, interconnectivity, new applications, and the way that always-on, always-connected people have built relationships with one another centered around content and like interests. It involves enhancing communications and information-sharing and the way in which companies, customers, and prospects interact. The most prevalent Web 2.0 applications are found in social networking technologies such as social networks (Twitter, LinkedIn, Facebook), blogs (LiveJournal, Xanga, MySpace), online communities (Yahoo! Groups, Del.icio.us, Google Groups), user-generated content (YouTube, Epinions, CNN iReport), widgets (WidgetBox, Snipperoo) and wikis (Wikipedia, WikiWikiWeb, WebPaint). Social networking technologies are here to stay and they’re one of the most disruptive forces in business since the introduction of the Internet. The market for these applications is strong and growing: Gartner estimates that spending on this software neared $400 million in 2008; IDC Research says revenue among social networking vendors has grown 191 percent; and Forrester Research predicts that, overall, Enterprise 2.0 spending will reach $4.6 billion by 2013. In a tough economic climate, companies must prioritize customer retention, loyalty, and enhancing the customer experience. Technologies such as Web 2.0 that make it easier and more convenient to conduct business with a company go a long way toward improving the customer’s experience. THE DYNAMICS OF COMMUNICATIONS HAVE CHANGED In many companies, “skunk-works” (trial) Web 2.0 projects are taking root throughout the enterprise, particularly in the technology, sales, and marketing departments. Contact center managers need to get involved with these projects because the contact center is the primary point of interaction with customers. Contact center managers should capitalize on the unsolicited feedback provided by the social networking applications and use this information to tailor systems, services, processes, and channels to better support customers. When customers initiate contact with a company, they’re generally saying “Help me! Listen to my complaints and compliments and help fix my problem.” Companies that implement social technologies are broadening their customer relationships by offering service in each customer’s preferred channel. (See Figure 1). Once contact center managers understand their customers’ communication preferences, they can work with marketing to develop complementary service solutions. This responsiveness to new technologies can help improve and strengthen customer service, the customer relationship, and the company’s brand. WHY YOU SHOULD CARE ABOUT WEB 2.0 Contact centers have to keep pace with changing technologies and customer preferences or they will risk losing customers. Web 2.0 is a powerful tool that can be used to www.destinationCRM.com Cultural Generation Matures Baby Boomers Generation X Generation Y Generation Z Birth Years Prior to 1945 1946–1964 1965–1976 1977–1994 1995–present Communication Preferences Landline phone Landline phone, IVR, Web self-service, cell phone, email Cell phone, email, IVR, Web self-service Smartphone, text message, chat, instant message iPhone, text message, chat, instant message, YouTube, My Space, wireless, hyperlinked Source: DMG Consulting LLC, December 2008 Figure 1: Preferred Communication Channels by Cultural Generation 48 CUSTOMER RELATIONSHIP MANAGEMENT | FEBRUARY 2009 http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - February 2009

CRM - February 2009 Contents Front Office Reality Check Customer Centricity The Tipping Point Express Service CRM on Twitter Breaking Customer Service Tradition Outsprinted That’s (Not) Entertainment Running on Empty Required Reading Up Against the Downturn The Numbers Tell the Tale Make Marketing Your Megaphone! Hold Onto Your Customers! Spend Your Way Out! Constructing a Virtual Customer Experience Next Customer, Please! It’s Showtime! From A(erospace) to Z(oology) Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - February 2009

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