Dell + Customer Care = How Social Media and Communities have connected business back
We don’t know how to calculate the return on investment of social media efforts. Yet. Basically because hardly none of the companies that are trying to leverage that new breed of communication channel has put enough money on it and connected their business strategies with those efforts. But one example tends to prove social media and community management has changed the course of their business: it’s Dell.
Focus on Customer Care
Since the “Hell Dell” issue, the computer company has started back caring about their business revenues, their customers. Gut feeling of Michael Dell, when he took back the lead of his company was to focus one more time on the customer care. And the reality check has given him the figures to jump in the social bandwagon.
Potential customers spend 99% of their time on the web doing research and just 1% actually buying
Moving the needle from 1% to 3 or 4% would make the world change. And that’s what the social media and community thing may be done for if well shaped.
Be helpful and make people actually buy
If we don’t do that at Dell.com, it’s going to be on CNET or somewhere. (…) I’d rather have that conversation in my living room than in somebody else’s. - Michael Dell
Leveraging the 1-click-away concept is the key to generate more direct business. Providing people with interesting information and ideas to powerfully use computers while a click away from the shopping store is quite an obvious idea (have a look at what’s happening everyday at the maul) but it works (we did that at GenerationMP3.com and we got one of the best European click-through rate of the Kelkoo roaster). That’s what Dell community is made for, though they didn’t push that far the concept, which may explain why it takes time to audit the revenues to know whether the 42 people team hired to engage with consumers generate leads and sales.
Cut costs and speed up innovation
Direct sales aren’t the only metric of usefulness of the social media efforts. And that’s what’s important to keep in mind when calculating the return on investment: if well shaped the community is able to help you cut costs on support, avoid some brand image communication (like Microsoft is forced to deal with hiring Seinfeld), speed up innovation to catch up with competitors or keep seated in the leader chair.
More resource: Fortune article on Dell.
