Community Service: Social Interactions and Service in the 21 Century Prof. Barak Libai 1 Prof. Barak Libai Arison School of Business, IDC, Israel Institute of Service Excellence (ISES) Singapore Management University July 2014
Mar 22, 2016
Community Service:Social Interactions and Service in the 21 Century
Prof. Barak Libai 1
Prof. Barak LibaiArison School of Business, IDC, Israel
Institute of Service Excellence (ISES)Singapore Management University
July 2014
A moment of history
In the 1990’s we learned about customer relationship management and customer centricity
And began to manage by individual customer value, looking at retention and satisfaction, and building loyalty programs
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We increasingly understand now that we need to manage “communities” of
connected customers, not only individuals
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Communities created by someone’s close social network
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Communities created by social media recommendation sites
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Communities that exist at large video and sharing sites
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Managing in a world of connected customers
Hard to predict Hard to control Non-linear
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The “future of service” is social
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We must talk the “social language” !
The “black box” of customer social interactions begins to open
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Data
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Duncan J. Watts, a Columbia University sociologist now on
leave and heading a research unit at Yahoo!, marvels at the
change. "When I started network research 12 years ago, we
had virtually no data," he says. Now he and his team can study
the network behavior of 295 million e-mailers and legions of the
200 million Facebook users. For social scientists, Watts says,
this flood of data could be as transformative as Galileo's
telescope was for the physical sciences: "It gives us a new
understanding of our world and ourselves ".
BusinessWeek May 09
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Tools
Associations
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Understanding community based customer relationships will be an essential part of service
management in the coming years
The “books” are still being written They demand understating of social interactions in general
They change with technology And the advice cannot typically be unequivocal
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Some things that we learned in recent years on social interaction, consumers
and profitability
Relevant to services, hospitality, and markets in general
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1 )Social effects from others have an essential effect on everything we do
Clearly on consumers decision making
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And stronger for services than for goods
Probably related to the risk and uncertainty associated with services
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2 )Social media increasingly becomes the place where customer service interactions happen
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Eileen Brown ZDNet 2014 Survey "Customer Engagement and Today’s Consumer"
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3 )Online review are of noticeable effect on customers
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Yet the answer of how they affect is still unclear, and possibly depends on the category
Prof. Barak Libai 25Blal and Struman 2014
The impact of Volume and Valance of online reviews on hotel RevPar
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4) Social media is the battleground of a new power struggle
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Customers enjoy to see the power goes back to them
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In this new environment individuals realize their disproportional power
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http://www.davecarrollmusic.com/
July 2014 www.hotelied.com
Some individuals are more powerful than others
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Forrester Research, Empowered
We may need to update customer relationship management systems
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Customer lifetime valueCustomer social value
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5 )Some optimism about negativity
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Most of the word of mouth, offline and online, is positive, not negative.
This is strongly consistent across studies, by academics and practitioners !!!
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Our job is to create positive word of mouth, more than to mitigate the
negative!
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6 (The “community” of social media can complement and replace existing business functions
From Groundswell
38CRM- Prof. Barak Libai
How things are different with social media
Now you can pursue this objective
You already have this business function
Ongoing monitoring of your customers’ conversations with each other, instead of occasional surveys and focus groups
Listening Research
Participating in and stimulating two-way conversations your customers have with each other, not just outbound communications to your customers
Talking Marketing
Making it possible for your enthusiastic customers to help sell each other
Energizing Sales
Enabling your customers to support each other
Supporting Support
Helping your customers work with each other to come up with ideas to improve your products and services
Embracing Development
The rules of “community service” are still being written
We should study them carefully !
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Thank you!!!
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