How Cisco's SocialMiner helps improve the conversation with customers (a John Hernandez interview)

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One-on-one interview with John Hernandez

John Hernandez is General Manager of the Customer Collaboration Business Unit (CCBU) at Cisco, which provides contact center and interactive voice applications to enterprises and service providers. In this capacity he oversees product and market development, and is closely involved in the business with the Cisco sales force and partners.

The Strategy Web spoke with him about the launch and benefits of their new customer care product SocialMiner.

What were Cisco’s most successful social medias tactics in the last 2 years? How did Cisco came across the new solution SocialMiner? Why is social media monitoring so important from a strategic point of view for businesses?

Cisco is very active in social media. Our employees were some of the earliest adopters of Myspace, Twitter, Facebook, YouTube, and other social sites. We have tens of thousands of active social media users in our company, as well as a robust and vibrant corporate presence on the social web.

Social media monitoring can become a key strategic advantage for businesses. From a contact center perspective, social media could be treated as “just another channel” in a multichannel approach. However, the public nature of social media, along with the sheer volume of social media postings, makes social media as much a business intelligence tool as a new way to engage with customers. Cisco believes that proactive social media customer care will have a transformative impact on how companies engage and serve their customers.

The concept of the SocialMiner product came from our observation of the changing communication habits and Internet usage of consumers. As consumers have adopted social media channels for their individual communications on an ever-increasing basis over the past couple years, it is only natural that they would consider interacting with a business via social media. This concept of social impacting customer relationships is a very active topic within the emerging “Social CRM” community.

Is SocialMiner just a Customer Service product? Bearing in mind that social conversations on the web affects the whole business…

Cisco SocialMiner is an engagement product, not a “listening product.” SocialMiner is designed to scale the quality and quantity of social media interactions performed by a business. SocialMiner can be used for a variety of business functions such as Support or Sales, but we believe the customers that derive the most value from social media will also use these engagements to drive business process change. For example, an organization could use SocialMiner as a source of business intelligence to provide real-time customer appreciation or criticism of a product or service (or of a competitors’ product/service). Social media can direct their business strategy. Cisco believes that companies that learn from social media will become closer to meeting their customers’ expectations and this will drive overall business success.

Which three benefits do business users have using SocialMiner compared to other tools in the market (Radian6, Alterian, etc.)

1. Cisco SocialMiner is complementary to brand monitoring dashboard solutions. It is designed to support scaling social media by leveraging the best practices from contact center type operational models: Queuing, Service Level Metrics (Average Speed of Answer), and productivity metrics for users. By contrast, many of the brand monitoring dashboards have pieces of workflow capability, but these capabilities are either relatively limited or recently introduced functions.

2. Cisco SocialMiner is a component of the Cisco contact center portfolio which currently includes an installed base of over 10,000 customers. SocialMiner is packaged, priced, and delivered along with Cisco Unified Contact Center Express and Cisco Unified Contact Center Enterprise solutions, and therefore it supports the same installation, deployment, serviceability, and user experience as these other Cisco collaboration solutions.

3. Cisco SocialMiner is a very easy to install and operate software appliance. It runs on premise or in a customer controlled data-center hosting facility and offers unlimited capture capability. Cisco SocialMiner is an API-first product with 100% of functionality available via REST API’s and all user interface delivered as OpenSocial gadgets with documented source that can be modified by Cisco channel or customers. This model supports the preferred consumption model of most enterprise organizations along with a broad customization capability.

Can it be used as a stand-alone product or only in combination with other Cisco products for customer service? Do you have any case studies of success?

Cisco SocialMiner can be used as a stand-alone solution. We have several case studies that illustrate SocialMiner’s success. Zone Labs is one of them. The small wellness company was looking to accelerate revenues & grow 1000% in next 3 years, implemented Cisco SocialMiner to increase customer engagement, customer satisfaction and sales. Zone Labs started developing social communities on their own website as well as Facebook, Twitter and other social media outlets. They used Cisco SocialMiner to route and queue contacts to experts within their organization.

Using SocialMiner, experts were able to proactively answer health and wellness questions via Twitter, providing encouragement to consumers on the Zone Diet, customer service and expert advice on questions such as vitamins and healthy recipes. Zone Labs saw improved agent productivity by automating capturing and responding to social media posts (currently estimated at ~10x). They gained greater customer satisfaction & brand mind-share from faster first inquiry resolution on the web, and were able to compete on comparable scale with larger companies. Their social media activity reduced their customer acquisition cost and created a larger funnel with more leads, that were converted more easily and more quickly than before.

Within 4 months of using SocialMiner, Zone Labs saw tremendous results:
– Web site transactions up 189%
– Revenue up 203%
– 202% increase in total visitors to www.zonediet.com

Thank you for your time, John. And by the way: I like your commercial for the product…

"We have effectively created a two-way direct dialogue" – World Economic Forum & Social Media

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The World Economic Forum will host its annual meeting in Davos from 26-30th of January 2011. Year on year prominent business people and politicians discuss at the event the state of the world from economics to political issues up to environment topics. In 2008, I have written about the first Social Media approach of the WEF. It became the most read blog post until today, probably as of the event’s popularity.

At the end of last year, I met Matthias Lüfkens at the LeWeb10 in Paris and I wanted to get some input on their Social Media learnings.

About two years ago, I have written about the World Economic Forum and your open social web-strategy. How do you think about your approach in 2008 today?
I think it was the right decision to engage the World Economic Forum on social networks. We are present on the key networks and now have 15.000 fans on Facebook, 13.000 subscribers on YouTube and 1.4 million followers on Twitter. We have shown that our engagement on social networks was not a short-lived PR operation but is a continuous effort to participate in the conversation.

What are the main achievements of your social web activities?
Beyond the number of friends, fans and followers the main achievement is to have given the general public a voice in the Forum. For three years running we have invited citizen journalists to attend our meetings. In 2010 Julia Lalla-Maharajh from the Orchid Project won the YouTube contest and had her own panel in the programme addressing her cause, the fight against female genital mutilation.

Where do you see the difference between PR people and bloggers from today’s point of view?
Social Media has blurred the lines between bloggers and PR people. Today anyone can have his voice heard through blogging or micro-blogging: the consumer, the blogger, the PR representative but also the CEO directly. If there is citizen journalism, there must also be room for CEO journalism, a new more transparent and engaging form of public relations.

What will be your highlights of the WEF 2011?
My highlight is to see how much Social Media has become part and parcel of our events. At the Social Media Corner participants are encouraged to reply to questions on YouTube and Facebook. Many are actively using Twitter to share their thoughts about the meeting. It will be interesting to see how many will check in on Facebook Places and Foursquare.

What is the value of the social web and active social medians for an event like the World Economic Forum?
Social Media has opened up the World Economic Forum events. We have effectively created a two-way direct dialogue between our participants and the general public.

Thank you for your time, Matthias!

Why Check-Ins need to improve in the future…

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Early adopters show big interest (see study) in location-based platforms like Gowalla, Foursquare or Groupon and obviously Facebook Places. Though only 4% of the US internet users use it, and probably the number is even lower in Europe. Nevertheless, Check-Ins could become the pull mechanism for offers on location-based direct marketing campaign in the future.

However, the check-in technology is still not completely evolved. People can still log-on from places around a building (though often not in the building…) -like we check-in on our airlines for flights today from all over the world- and still earn their “check-in credits”.

Some months ago, I wrote about loyalty cards and how the intelligent use of Social Media at point of sales, i.e. cash points at retailers or in shops, could make our purse loose some “plastic weight”, and make loyalty cards a thing of the past.

Now, combine this thought with the new location-based technology and think where we could be if these platforms could embed loyalty programs in their technology/apps. Automated check-in via apps. No second hand-over from loyalty plastic cards. Quicker engagement and upsale opportunities for companies and brands. Brave new world!?

This presentation by the DASH7 Alliance looks at the state of location-based check-ins in the past, today and the need for a global standard for check-ins (and check-outs) in the future.

The Future of Check ins

View more presentations from DASH7 Alliance.

KLM Surprise – a discussable social media campaign…

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When I first came across the KLM Surprise idea, I thought “cool customer service”, “very modern approach” and “nice use of a Social Media campaign”. It seems KLM engages in how to make their clients happy, how to understand personalized customer service of the future and how to use social media to reach out to their clients one step ahead.

On a second thought, clients could be overwhelmed in a negative way. The approach of the airline might be seen as “social media stal….”. Shall we really use this phrase? Is there some validity in it?

The idea implements all aspects and features of an advertising campaign, and the KLM claim for me seems to be: modern social advertising. Or as the brand puts it: KLM is “committing little acts of kindness because we wanted to discover how happiness spreads”.

Nothing bad about it in my eyes. I like the idea in some way…

Nevertheless, my question is: Is this modern social advertising approach going to far? Is it addressing too much the human characteristics of personality and individuality? Or is it just the modern way of personalized advertising? Some kind of the future of Social CRM?

Know what?! Let’s discuss it! Watch it and give us thoughts….

Absatzwirtschaft über "führende Werbeblogger" in Deutschland

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Das Marketing-Magazin Absatzwirtschaft, eines der deutschen Top Marketingblätter, hat vor ein paar Wochen für seine Printausgabe die “führenden Werbeblogger” Deutschlands interviewt. Für mich war die Tatsache eine Ehre, das man neben “Indiskretion Ehrensache” und “Off the Record” auch The Strategy Web zu einem der “führenden Werbeblogs” in Deutschland zählt, sowie zum Interview bittet.

Natürlich hätte ich gerne mehr über die Bloggosphäre gesagt, aber eine grundsätzlich diskussionwürdige Stellungsnahme ist sicherlich das Zitat:
“Es ist ziemlich verworren, was zurzeit im Bereich der Webstrategien abgeht! Markenverantwortliche träumen von Bloggern und Followern in ihren Diensten, doch die modernen Socialmedians verhalten sich anders.” Es verdeutlicht, was derzeit die Marketiers wollen, aber die Bloggosphäre meiner Ansicht nach, oft noch nicht bereit ist zu vollfüllen.

In den nächsten Tagen werde ich das ein wenig mehr ausführen, wenn ich meine dreiteiligen Reihe “Insights 2010” veröffentliche. Der Beitrag “Spaßgetrieben” kann im PDF-Format nachgelesen werden…

Study: Web 2.0 increase market share, gain benefit

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The latest research by McKinsey & Company states that companies embracing Web 2.0 opportunities have more chances to gain market leadership and step ahead of their competitors than companies that are less Web 2.0-savvy. The research was interviewing 3.249 companies as part of its annual Web 2.0 survey.

The study concluded that “networked enterprises” are more likely to be market leaders and winning market share. The study’s authors, Jacques Bughin and Michael Chui said that the Web 2.0 companies “also use management practices that lead to margins higher than those of companies using the Web in more limited ways.” They found that 27% of companies overall gained market share against their competitors and could succeed with higher profit margins.

The success curve of the “networked companies” is exponential. Those companies that are “highly networked enterprises”, defined as companies using Web 2.0 inside and outside their business in innovative ways, “were 50 percent more likely to fall in this high-performance group than other organizations were,” the authors state.

The authors prediction is that that in many industries, “new competitive battle lines may form between companies that use the Web in sophisticated ways and companies that feel uncomfortable with new Web-inspired management styles or simply can’t execute at a sufficiently high level.”

Companies that have embraced Web 2.0 philosophy continue to report that they are receiving measurable business benefits. 90% are reporting at least one benefit. The benefits were increasing speed of access to knowledge – 77% of respodents with internal Web 2.0 efforts and 57% using Web 2.0 to engage external partners. Obviously cost saving is a big topic: 60% of internal and 53% of external users mention that communication costs could be reduced. And travel costs decreased as well said 44% internal users and 38% external users.

Funny Case Study: "David on Demand"

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This social media case study by Leo Burnett Worldwide called “David on Demand” is really something to be shared with my readers. It is outlining the success of an unprecedented social media experiment. Users were able to control the actions of a man through Twitter and then view the experiment live via 24/7 video streaming through a webcam installed on his head. Great and funny idea – although I would not let my followers do that with me… 😉

LeWeb10 – web strategy catch-up with Jeremiah Owyang

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When I joined the LeWeb10 in Paris last week, I was fortunate to spend some time with Jeremiah Owyang, partner at Altimeter Group and Blogger at web-strategist.com. We to talk about the future of web-strategy, the evolution of brands in the social web era and exchanged thoughts on how businesses need to integrate social media in their web activities. And it was good to see that our views matched nicely.

Afterwards, I did a quick video snapshot on three topics…

Where is web-strategy heading to in 2011?
The main trend that Jeremiah foresees is the integration of social media into the corporate website. In 2010, I have seen many companies already challenging this topic, and it improves. Although I have to admit, in many cases I found often tiny mistakes like the way social media conquers websites while important information gets lost or hidden in the backend or also placement of share items/buttons in the wrong corner apart from other things. Yes, companies are integrating their social affinity and activity but should not forget the business model, the target-group (or should I say friends or followers?) and the main existing user behavior…

What are the main trends from a long-term perspective?
Social analytics and Social CRM will emerge (active, pervasive), he said, and he differentiates this from social media monitoring (passive, reactive). I defintely agree in that point. Companies need to understand and react immediately whenever a client approaches a brand or a company how to match the data of all website and lead generation traffic stats with the CRM system in order to pro-actively supply relevant offers to them – be it on mobile, online or offline. Otherwise any competitive advantage will get lost in the future.

What is the role of brand vangelists/brand advocates in the future?
Microsoft, Intel, Oracle, SAP, Wall-Mart amongst others have already deployed brand vangelist/brand advocates for their purposes. He makes clear that by using these people brands get ahead of the 1:1 dialogue which he thinks does not work on the social web. Brand advocates make the communication programs scale, he argues – I could not agree more as I see the main ROI factor from a user perspective in the time factor.

Thank you, Jeremiah! Looking forward to catching up in 2011…

Digital Death – Celebs social life gives real life

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This campaign is one of the most remarkable ideas I have ever seen where Social Media can underline it’s potential. This week some of the world’s most famous celebrities have committed “Digital Death”. How? They stopped posting on Twitter and Facebook profiles to raise awareness and money for World AIDS Day.

Starting December 1st VIPs like Lady Gaga, Justin Timberlake, and Usher won’t be active with their digital lives to generate money which will help save millions of real lives affected by HIV/AIDS in Africa and India.

Are you missing your celeb social output? Well, then go to buylife.org, get their output back by making a donation. There won’t be any updates on their social streams until 1 mio. USD is raised and there is quite a way to go from 160K at the moment…

Does work still work at work?

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What is the future workplace going to be like? A question many of us have been asking themselves in the last years. Jason Fried, founder of 37signals did a great presentation at TEDtalksDirector on why work doesn’t work at work. As managers look into the future of work, some tools and techniques affect the productivity and he is asking if the Western work world is China when managers ban Facebook or Twitter. The real problems are the M&M’s (managers and meetings), Jason thinks. Managers job is not to turn up in meeting and to interrupt people. Meetings are just toxic as they are organized by managers to make people talk – and this kills creativity, productivity and spontaneity. His suggested solutions: Silence, passive communication and yes, … cancel meetings.

These are quite provocative views. As some of you are managers as well, what is your take on them and how would you make work work at work in the future?