Social CRM The New E ngagement Realm

1. SocialCRM The New Engagement Realm

2. Listening • Building and maintaining trust • Responding with a sense of urgency • Innovating and finding solutions • Rockin’! • Reside helps businesses solve sales, marketing and service problems by building and integrating cloud solutions. • Web / Cloud Services Firm • Founded in 2001 • Based in Minneapolis, MN • Salesforce.com Partner since 2004 Introducing Reside Who we are What we do What we value

3. Practice areas Sales Marketing Service Customers Partners Employees Taking your business model to the Web CloudServices

4. Who we serve

5. 2009: Social Networking Surpasses Email Social Networking Users Surpass Email Users on 7/09 Global Users (MM) Social Networking Users Email Users Source: Morgan Stanley Internet Mobile Report, December 2009

6. Application Moving to the Cloud 1960’s Mainframe 1980’s Client/server 2000’s Cloud Computing Applications

7. Platforms Moving to the Cloud 1960’s Mainframe 1980’s Client/server 2000’s Cloud Computing Platforms

8. Search Broad Change in Internet Usage Top Internet Use Cases Share of Online Usage 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 Source: Morgan Stanley Internet Mobile Report, December 2009

9. Next Generation Devices Changing How We Access the Internet Device Shipments Smartphones Annual Unit Shipments (MM) Notebook PCs Desktop 2005 2006 2007 2008 2009E 2010E 2011E 2012E 2013E Source: Morgan Stanley Internet Mobile Report, December 2009

10. Fundamental Shift in Internet/Cloud Computing

11. “The Facebook Imperative”: The World Has Changed Amazon.com Transactional Tabs Click Desktop Fixed Location Unknown Facebook Collaborative Feeds Touch Smartphone/Tablet Mobile Location Aware 2000 2010

12. Yesterday’s CRM Needs to Evolve Customers are here: Companies invested here: Contact Center Community Sites

13. “These conversations are going to occur whether you like it or not. Do you want to be part of that or not? “My argument is you absolutely do. You can learn from them. You can improve your reaction time. And you can be a better company by listening and being involved in that conversation.” Michael Dell, BusinessWeek Customers Talk

14. 14,000 followers 1,000,000 followers 281,000 followers 3,200 followers 28,000 followers Businesses Are Joining The Conversation

15. Social CRM… is Tapping into social networks to improve marketing, sales, and service processes and results. Social CRM enables companies to create a deeper and more engaging community-based relationship with their customers, in place of the traditional approaches to managing them.

16. www.mystarbucksidea.com

17. Partner Portal Mission Review Online Surveys Focus Groups Promotional Websites (e.g., itsredagain.com) Passion Panel In-Store Experience Customer Voice Customer Contact Center Customer Comment Cards External Websites (e.g., StarbucksGossip.com) Survey Starbucks.com Why MSI? Current communications Customers Partners Both "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

18. Launch Marketing NY Times Homepage Dual Marquis Starbucks Cardholder email blast and banner The “bug” on Starbucks.com "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

19. Company Commitment • Community Moderators • 30-40 throughout the organization, 2 hours per week • 2-3 per department (Beverage, Card, Food, HR, etc) • Two responsibilities: • Moderate Ideas • Promote Key Ideas to Manager • Managers • 1 per department • Two responsibilities: • Support time commitment of moderators • Build business case around Key Ideas • Executives • Fully supported from highest level of company "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

20. Blog post announcing decision Idea Moderators Gather Information Presentedto Executive Team for approval Ideas are vetted Leads help build Business case Shared with Leads Ideas in Action Process • Implement a formal process to put ideas into action • Flag content that is under consideration • Share stories of how user ideas are being adopted "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

21. MSI - Ideas in Action • The single most important page on the site • Frequent “blog” posts on actions taken—and further discussion • Authors from every level and department • Besides reporting action, a place to hone discussion "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

22. www.mystarbucksidea.com • Results • 40,000 ideas submittedin the first 3 months. • 310,000 votes obtained in the first 2 months the site was live. • 94 ideas were put into action in the first year the site was launched. • Ideas implemented include: • Gluten-free options, • oatmeal, • free coffee on election day • new ideas for the Starbucks Gold Card program. “Companies with the highest levels of social media activity on average increased revenues by 18% in the last 12 months, while the least active saw sales drop 6% over that period. Among the top 100 brands reviewed, Starbucks came out on top.” ~ Online Media Daily, July 20, 2009 "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

23. Mystarbucksidea.com - Key Learnings • The conversation about your company will happen whether you like it to or not. Your only choice is whether to join it. • Great content trumps slick design: the MSI site is popular because it delivers relevant, interesting content. Still, people have a limit, especially your core. • “Internet time” is much shorter than “company time”. • Even so, people understand some things take time. In the meantime, keep engaging, the written equivalent of a “head nod” goes a long way. • Customers are willing to donate a ton of time to your company. • A few “negative” leaders can tank a good conversation. Nip them in the bud. Conversations can turn quickly. • A community site like MSI is a good place to add context—complete and accurate information—to the ongoing public discussions. • A successful community requires a significant philosophical commitment from many levels of the company: a new level of transparency, a willingness to give up control. "Figure from Salesforce Ideas Blog", "http://blogs.salesforce.com/ideas/online_community_best_practices/", "June 2009"

24. Best Practices

25. Communities and Channels

26. Attributes of Social CRM • Social Environment • Crowdsourced Results • Community Driven • Joint Accumulated Value • Scalable Relationships • Integrated Analytics

27. Opportunities and Challenges How do we engage in the conversation and channel this energy? How do we expose this wealth of insight back to the company? How do we take action and deliver measurable business impact?

28. Identify Leads Facilitate Innovation Enable Self-Service Drive Loyalty Monitor Brand Health Common Use Cases • Facilitate Innovation • Drive Loyalty • Monitor Brand-Health • Enable Self-Service • Identify Leads

29. Approaches • Types • Campaign (short-run) • Evergreen (long-run) • Audience • Internal • External • Access • Private • Public • Execution • Listen & Iterate

30. Plan Disruptive Shifts

31. Increase Employee Pride Gain Customer Insight Generate Better Qualified Leads Drive Down Support Costs Harness Innovation Create Competitive Differentiation Results

32. FICO - Decisions Community

33. Peer-to-Peer Community

34. Peer-to-Peer Community

35. Peer-to-Peer Community • Results • 620 users signed up for the Decision Management Community in the first month the site was launched • Second largest source for leads • Continual customer engagement from around the globe, rather than only twice a year. • The integration of the CRM tool allows FICO to capture leads and increase sales. • The Decision Management Community allows FICO to collaborate directly with its customers to identify, understand and address their biggest business challenges. • For more information on this case study visitwww.reside.biz/fic

36. Metrics

37. Traffic Engagement Pipeline & Conversion Metrics

38. Traffic Traffic

39. Engagement Social Technographics

40. Pipeline & Conversion Omniture

41. Tools

42. The Central Hub

43. The Central Hub

44. The Central Hub

45. The Central Hub

46. Unfortunately, Most CRM Data is Out-of-date and Incomplete 70% of Contact Data Outdated after 12 Months1 • 65%of titles incorrect • 42% of addresses incorrect • 43% of phone numbers incorrect • 37% of email addresses incorrect 2009 2010 1Coe, John M. “B2B Data Decay – The Untold Story.” Sales & Marketing Institute. 2002 http://www.b2bmarketing.com.

47. CRM Data is the Lifeblood of CRM Applications Business Cards Marketing Lists Web Forms Sales Reps Critical for Prospecting Required for Customer Analysis

48. Jigsaw: Industry Leader in the Data Services Largest, Most Accurate Database: 22 million + B2B contacts Crowd-sourced business data: 1.4 million+ community adds36,000new contacts per day Real-time updates: Community updates 12,000contacts per day

49. Companies Spend $3 Billion+ Augmenting Data1 $3 Billion Market for B2B data delivered over Internet1 Traditional B2B Sales & Marketing Data ($11 Billion) Sales Intelligence Marketing Lists Data Cleansing $14 Billion Annual Market for Global B2B Sales & Marketing Data 1Global market size for obtaining B2B information over the internet. Source: Robert W. Baird Business Services Research, June 9, 2009, “The Dun and Bradstreet Corporation, Business Information Services Market”

50. Jigsaw: Has Two Parts Sales of Data Database Creation & Maintenance Lists and Leads Integrated Data Services • Open Architecture • 1.4 million members • 22 million contacts • 36,000 new per day • 4 million account records • 1 million updates OEM