3 Truths

Every CMO Needs to Know

About Social Media and
the Customer Experience
Go beyond listening.
3 Truths Every CMO Needs to Know About
Social Media and the Customer Experience
Social Media has had a tremendous impact on many aspects of our lives, from daily relations to our business practices. But one of the
most dynamic changes is the blurring of lines between customer service and marketing.

A typical sales funnel places these two activities on opposite sides of the customer experience but with social media in the equation
that funnel is twisted back on itself, connecting the two in a very meaningful way. Marketers can gain significant insight even just by
listening to those digital conversations. Looking at the full set of mentions about a brand a marketer will see:

70%
of the time
Issues with
products 66%
of the time
Request about
company, 60%
of the time
Customer service
interactions
or services services, etc. complaints

43% 42% 34%

Crisis Sales Marketing
identification leads campaign
of the time of the time of the time complaints

Competitive New product Size and scope

34%
of the time
information 32%
of the time
ideas 32%
of the time
of issues and
concerns

But to get the full value, marketers need to go beyond listening. Further examining the connection between customer experience and
marketing has lead us to uncover three essential truths that underline the importance of adding social customer service strategy to
any cross-channel digital marketing plan.

Responsive Customer Service via Social Media Is Critical for Customer Loyalty and Retention

Social Media Turns Good Customer Service into Great Marketing

An Efficient Social Media Customer Service Program Impacts the Bottom Line
 Truth 1: Responsive Customer Service via Social
Media Is Critical for Customer Loyalty and Retention

20% of people, more for younger demographics, report using

social media to complain, and that number continues to rise.
The percentage of customers who
Accenture Global Customer Satisfaction Report states, price
89% switch brands following a poor
is not the main reason for customer churn, it is actually due to customer-service experience.
the overall poor quality of customer service. Social media is a
powerful communication tool, making it possible for anyone to
instantly connect, be it with other people or with the brands we
do business with. That makes it a natural channel for frustrated
users to resort to when they feel cut short on the support The percentage of customers
who said they likedor even
they expect. 83% lovedwhen a company
responded to them.
Before ExactTarget SocialEngage, we were less
connected to what we were doing on social
media. SocialEngage has allowed more people
to become involved in our social media marketing
The percentage of customers who
and increased engagement online. 51% believe that companies
wont respond to their tweets.
Caitlin Volkman, Interactive Manager, Portland Trail Blazers

The risk is in the inherent transparency of social media, very

little is kept private, so in exchange for the convenience of the
instant connection, users and brands alike have to be prepared The percentage of customers
who give companies one week to
for the public nature of the exchange. The potential for one
50% respond to a question, comment,
complaint to resonate and echo indefinitely around the social or concern before they stop doing
sphere is always present. The flipside of that is; the same holds business with them.
true for a positive comment, and there lies the opportunity.

When you address complaints quickly and competently, the

social world sees itand a negative can become a positive.
In the process you may not only save the one customer from The painfully-low percentage

defecting to your competition, but also all the customers who

29% of complaints responded to by
companies on Twitter.
saw, and empathized with that customer. Its important to
remember that it takes 12 positive experiences to make up
for one unresolved negative experience, as stated by Ruby
Newell-Legner in her Understanding Customers report.

*Sources: http://www.forbes.com/sites/rogerdooley/2012/09/18/complaints/
http://smallbiztrends.com/2011/10/3-stats-social-media-campaign.html
http://www.maritzresearch.com/~/media/Files/MaritzResearch/e24/ExecutiveSummaryTwitterPoll.ashx
Truth 2: Social Media Turns Good Customer Service
into Great Marketing

Trust friends and family 92%

Trust other online customers 70%

Trust company website 58%

The White House Office of Consumer Affairs reports, A

dissatisfied customer will tell between 9-15 people about their
experience. Around 13% of dissatisfied customers tell more
than 20 people. Happy customers who get their issue resolved
tell about 46 people about their experience.

92% of people say they trust recommendations from friends Since implementing a fan engagement plan with
and family, 70% of people report trusting recommendations ExactTarget, were better able to serve runners
from other online consumers, but only 58% of people trust and provide customer service. Weve been able
messages found on the company website and that number to cut our response time to customer questions
only decreases for traditional forms of advertising.
posted on Twitter and Facebook in half, helping
As marketers we pour over messaging and advertising copy, more runners in less time.
making tweaks and chasing after that one perfect turn of Joel Ballezza, Digital Marketing Manager, Brooks
phrase. But the impact of that marketing message pales in
comparison to the impact that one recommendation from a
current customer can have on a prospect.

Social Media can be a highlight reel of the actual experiences

your customers are having. Their friends and family, even
strangers, can see that experience and judge for themselves
whether you are a business they want to frequent. Its your job
to make sure that highlight reel matches the brand message
you want to portrayin that way each person on your social
customer response team becomes the marketing face for
your brand.

Source: http://blog.nielsen.com/nielsenwire/media_entertainment/consumer-trust-in-online-social-and-mobile-advertising-grows/
 Truth 3: An Efficient Social Media Customer Service
Program Impacts the Bottom Line

70% of buying experiences are based on how the customer feels they are being treated. McKinsey
55% of customers would pay extra to guarantee better service Defagto Research

Forrester calculated the financial benefit that a higher customer loyalty score, as a result of improved customer service, would have
on key industry verticals and found that there was significant value associated with improved customer experience strategy. Since
social media amplifies the effect of any customer service activity, it plays a huge role in turning the potential value illustrated below
into a reality.

INSURANCE INDUSTRY: AIRLINE INDUSTRY:

$452,000,000 $590,000,000

CONSUMERS ELECTRONICS: CREDIT CARD PROVIDER INDUSTRY:

$92,000,000 $307,000,000

HOTEL INDUSTRY: RETAIL INDUSTRY:

$1,364,000,000 $31,000,000

WIRELESS PROVIDER INDUSTRY: I love using SocialEngage because it gives my

$1,297,000,000 hard-working team the freedom and flexibility to
serve our customers better.
Berenda Sikkenga, Manager,
Virtual Customer Services, Ziggo

*Source: Burns, Megan (2012, March 26). 2012: The Business Impact of Customer Experience, 2012. Retrieved from Forrester Research database.

ExactTarget SocialEngage is the market-leading platform for social customer engagement, providing you and
your team with the capabilities you need to deliver an excellent customer experience via your social channels.
Let us show you how to maximize your social media presence.

To learn more about how you can be everywhere your customers are, contact ExactTarget today.
General Inquiries: 1.866.362.4538 Online: ExactTarget.com/Products