Press 1 for Twitter, Press 2 for Facebook ...

Social Media has been a leading phenomena in the last 3-4 years. Facebook has grown from some 12 million users in 2006, to nearly 400 million in early 2010. Don't even try calculating the growth on that. Its BIG! There are lots of such data points that suggest that social media is beyond hype, and is becoming very much the manner in which people are interacting, communicating and participating on the web.

I discussed about Social Networking in the Enterprise in my previous blog post. Enterprise Social Networking is still in its infancy, and such solutions will need to pass the test of the CIO, the CFO and ofcourse time. But there is one aspect of social media & social networking that will and is increasingly being accepted by the Enterprise today - Using social media for customer engagement.

There are many definitions for social media, so let me add one more - Social media is an online platform for users to share, participate and engage in conversations (both monologues & dialogues) with friends, like-minded individuals and everybody else. With social media, it is as easy to create content, as it is to consume it.

Social Media brings about a distinct shift in the Customer service world. This shift is rooted in the definition stated above. In a traditional customer service environment, either the customer calls the contact center i.e. the customer gets in touch with the enterprise to complain, ask or notify or the contact center calls the customer i.e. the enterprise gets in touch the customer to notify, request/threaten or upsell. It is foolish to think that this communication is the only communication that a customer has about the enterprise. Before calling the contact center, most customers would either have "googled" the query, discussed with their peers (increasingly over the web), or shared their frustrations with the world (most likely on some form of social media). Imagine a frustrated passenger, who had to search for the lost baggage claim process on google, then ask his friends on facebook if they knew the call center number for lost baggage, and then tweeted about how bad his flight experience has been. After all this, he calls the contact center - the happy agent on the other end does not have the slighest clue what is coming his way when he picks up that call. Social Media changes this. Social Media enables enterprises to hear, engage and participate in customer conversations that are not happening only when the customer calls the contact center, but happening the other 90% of the time when the customer talks about your enterprise with friends, like-minded individuals or everybody else.

In today's social web world, neither does the customer need to get in touch with the enterprise, nor does the enterprise need to get in touch with the customer to hear the customer. The power of social media provides enterprises the ability to listen to customer conversations, and pro-actively offer support, way before the call reaches the contact center.

Social Media is on the rise in Asia. Of the top 30 countries with most Facebook users, 7 were from Asia Pacific (Australia, Indonesia, India, Philippines, Hong Kong, Malaysia and Singapore). Despite the growth, some enterprises in Asia & Worldwide are still questioning why social media is important for customer service. The popularity of "United Breaks Guitars" is a clear reminder of the impact that social media can have on the reputation and business of an organization. In the words of Jeff Bezos, customers now use the internet as a "mega phone" to tell everyone what they think about our product & services.

A Social Customer Engagement strategy can be beneficial in many ways to the contact center:-
a) Ability to provide Pro-active Customer Care, hence improve Customer Satisfaction
b) Connect with the customer using the channel they use most, similar to the principle used in the multi-channel approach with voice, email, web chat, etc.
c) Make customers your service agents, by getting customers to respond to customer queries on the social web

These benefits lead to a strong value proposition for the enterprise:-
a) Create customer communities to increase stickiness & loyalty
b) Monetize social channels to deliver promotions & targeted campaigns
c) Disseminate information to a wider or targeted audience in real-time & cost effective manner

Building a Social Customer Engagement strategy is becoming increasingly important for enterprises, however, enterprises need to be wary of the challenges that come with a social media customer service channel. Social Customer Engagement is fairly new, and is unlike the other customer service processes where we have metrics, benchmarks and best practices to improve our processes. Including Social Media channels as part of the customer service process requires a thorough assessment of the customer base & existing customer contact processes, and the need to build a new set of processes & programs.

More on the building blocks for a social media customer engagement strategy in my next post...