When companies begin to engage in social media they typically start in the marketing department with some rather tactical marketing campaigns. In those early models a large company either hired some social media “experts” to do the campaign or found some engaged people internally. The rest of the organization does “business as usual”. The problem quickly surfaces in sales “What are these guys talking to my customers”, on the service side “what are they promising to our clients”, and the product management team still doesn’t get any feedback how to better launch the next generation products. While it is obvious that social media is a key method to create a better customer experience, a better way to listen to the market, a faster way to react to needs and a less expensive way to become part of the market, the “social media marketing campaigns” alone can’t do the job. An isolated “campaign” is often counter productive and it would be better to just not engage at all.

Learning from the early experiences we developed a holistic approach, a cross functional organization model that is able to carry out a social media strategy. The so called ComStar model integrates all departments that have a touch point with the market into the social engagement strategy. Only a small core of social media trained and experienced people is necessary to help steer even large global enterprises into a new direction. An internal social media strategy and it’s leverage effect makes it possible.

At it’s core, the ComStar Model has one principle:
– Develop a social media service team (SMST) that supports all departments in the organization
The SMST members do not necessarily tweet, blog, comment themselves instead empowers others to do so.
Similar to IT team, finance support or HR that services an entire company, the SMST functions the same way.

With the ComStar Model, the SMST (Social Media Service Team) is the guardian angel of the social media strategy. The main objective is to inspire, motivate and service the strategy relevant departments such as marketing, sales, service, product management, HR and other. The departments in turn engage with the customer base, prospects and the market in a whole. In this model the SMST is the cordial spine for the engagement, while sales keeps the control and the relationship to their customers (even so in a different more social manner), marketing keeps being the creative part in the new engagement model “not pushing the message” but fueling the conversation, product managers get the tools and methods to better listen to needs of the market and service teams get the support to be better integrated in customer issues.

Behavioral changes of “the old guard” in particular on the sales side are as painful as necessary. Change has never been an easy task. But also change has never been more important and has never shown more successful results like today. Creating some fan pages and a few tweets don’t create a better customer experience – nor does it generate the often promised millions of additional revenue. But a great and ongoing trust building relationship with the market does, as we can see in cases like Zappos.

We will present the model in greater detail on
Fri, Aug 14, 2009 9:00 AM – 10:00 AM PDT
Leasdership Series Webinar
https://www2.gotomeeting.com/404589362

Agenda:
– Social media impact to our business operations
– ComStar, an organization model for social media strategies
– Comparing structural differences
– Implementation challenges
– Job description, work flow and responsibilities
– Motivation and compensation considerations
– Cross functional reporting models
– A holistic view to corporate social media

Registration:
https://www2.gotomeeting.com/404589362

Axel Schultze MyXeeSM

Company Background
Paypal has 160 million customers
Their support centers work shifts and deal with approximately 60,000 support cases every day.
Over 1,000 support people handle on average 60 calls per day.
You cannot email or use other ways of communication than phone, fax or post.

Support team
To deal all day long with frustrated customers is not a very pleasant job, so fluctuation is rather high and the level of competency very low. It takes on average three calls to find a competent person. Some customers suggest you don’t use a case number as you don’t want to get back to the same person.
Most of the support calls are very low level issues with routine answers, nothing special, simply based on lack of user help and a pretty confusing system administration (a user voice nails it: “This is done by a bunch of engineers and never reviewed by business people”). Many functions are even unclear to the internal teams. Support staff admits it is not very intuitive if it is anything other than pushing the pay now button. Everybody can read that in great detail in thousands on public complains.

Customer Experience
People still really like the product. Some even donated a website like This Link Lots of discussions with thousands of valuable inputs that – as it appears- non of the paypal people ever read. Paypal instituted a feedback form that customers are asked to fill out after each and every support case. Even so many people probably are too angry to even bother, some do, I did. But that source of customer feedback evaporates in the dysfunctional organization.

More Market Research?
Now the latest hit was that I received an invitation to participate in a survey – yet I have to be “elected” to join. However I get $200 if I participate after I am elected. But it looks like I have to drive to Mountain View to do the in person interview. A “market research institute” actually is doing the gigg. I don’t want to know what that cost in total.

So here is a company that has free feedback from millions of users and thousands of cases but just doesn’t bother to care – instead pays a research institute to create yet another source of feedback?

Paypals Social Web Presence
There is a paypal account on twitter, mainly tweeting “please follow us so we can DM you” – 63 updates, following 123 people
There are hundreds of paypal groups on Facebook from paypal fans to paypal frustrated customers
There are 18 groups focusing on paypal on LinkedIn with over 3,000 members
There are paypal customers on MySpace and many other sites, the feedback is priceless.
Yet paypal seem just not to care.

Even internally people know what the issues are: A support person inside paypal (very nice and very professional) “…I know, we asked numerous times to fix those issues but nobody seem to listen”.

How to actually fix the problem
Social Media for Paypal could become a life saver. Not as a marketing gigg but to improve and fix a dysfunctional operation.
1) At first a company team would aggregate and distill the customer feedback using established assessment methods and available reporting tools.
2) Then develop a customer supported advisory board and rigorously execute – fixing the top issues.
3) Tackle more problems and just grind through the list from top to bottom.
4) Ask the folks from “paypal sucks” groups and sites to HELP.
5) Using the, by then established, processes to figure out how new features need to be developed (co-creation)
6) Get feedback in a structured way through groups and networks rather than through useless questionnaires
7) Create forums where customers help customers, supported by maybe even less but better educated paypal support people

Non of the above has anything to do with sales or marketing – just building a better company.

Who Is Responsible?
Is this the responsibility of Dickson Chu Vice President of Global Product and Experience? Or is it Ryan D. Downs Senior Vice President, Worldwide Operations? Or is it Scott Guilfoyle Senior Vice President, Platform Services? Or Barry Herstein Chief Marketing Officer? Philipp Justus Senior Vice President, Global Markets, responsible for growing the company? Everybody has his/her fair share.

But No, Scott Thompson, the President is the one who need to engage his executive team in a cross functional initiative to fix the dysfunctional organization.

Social media is not a cool marketing gigg – it is a strategic engagement to react to the major changes in our society reflected by changing customer behavior and an ever more demanding market.

Axel Schultze MyXeeSM
Social Media Academy