This document discusses how online communities can be used to drive business transformation and engagement. It provides examples of how Telefonica uses online forums to reduce customer service costs, increase customer retention, and generate user-generated content. Key points include: - Online communities allow all departments to interact with customers and transform business operations. - Telefonica's online forums reduce call volumes by 41% and customer churn by up to 52% while generating customer solutions and tutorials. - User engagement is measured through relationship mapping, profiling expertise, and managing member lifecycles. - Integrating online communities across the business maximizes their benefits, which include cost savings, increased sales, and product development ideas from customers.

1. Engagement As A Discipline: Extract Real Value
From Your Online Communities
Chief Community Officer, Telefonica, SOG @VincentBoon

2. Where we came from
• Founded 2009
• Revolutionary MVNO
• World-Leading Community
• Founded 2012
• Community Management
• Managing Telefonica
Communities globally

3. Transforming Business with Online communities
• A deep integration of Online communities connecting all departments drives the transformation
within the company.
All departments
interact with the
social ecosystem

4. The Philosophy Which Underpins a Great Community
1. Mutuality
2. Member Involvement
3. The collective good
4. Simple
5. Respect
6. Feedback
7. Ideas

5. Why DON’T we use Social Media sites like: ?
• No ownership of platform
• Likes ‡ Purchases or Brand loyalty
• Less engagement
• Competition with other Brands
• No search engine
• No MGM, Knowledge Base or Ideas Platform
• Not fit for customer support

6. Social Media is not listening…
it’s talking (about yourself)
6
Facebook is a broadcast channel. Pushing out content in this way does
not make customers feel any of the key 6 things: “Respected, worry-free,
informed, confident, understood, organised”
NatWest
post..
about
NatWest
ad
Comments
to the
post… all
about
grievances
with
NatWest

7. A Tale of two platforms - Oct 16th – Nov 5th ‘14
giffgaff facebook
• 30 new content pieces
• 0% customer content
• 534 comments
• 0 private messages
• 4,354 likes
• Light content:
• Funny pictures
• Competitions
• Quirky links
giffgaff forum
• 9,662 new content pieces
• 99% customer content
• 112,234 comments
• 12,883 private messages
• 22,675 kudos
• Wide range content:
• Customer Service
• Ideas
• Discussion
BROADCAST LISTENING

9. What is engagement ?
Academic view:
“A deeper, more meaningful connection
between the company and the customer, and
one that endures over time” (Economist Intelligence Unit)
Customer view:
“Listen to what customers say and act on it”
(TargetBase Claydon Heeley Customer Engagement Whitepaper)
9

10. Engagement as a discipline: Managing
forums this way is a brand new discipline
10
• Many different
processes
• Build deep long-term
relationships with
customers
• Create peer-to-peer
• Integrate into wider
business functions
• Scalable

11. Mapping Community Relationships
Relationship mapping helps us to:
• Virally spread information in the community
• Understand who the key influencers are
• Manage sentiment during service issues
• Effectively manage relationships between
members
The amount of community relations per active member is
critical to the success and health of the community.

12. Relationship Map of Super-users

13. Profiling Expertise & Interests
By profiling expertise and interests, we
are able to:
• Connect people with similar interests
• Manage effective support and advice.
• Further develop our members’ expertise
• Get members involved
Services
PAYM
Broadband
O2 Wallet
TU Go
Others…
Products
iOS
Android
Windows
Blackberry
Otherareas
Help
Discussions
Feedback
Off-topic
As a result of effective profiling, we’ve been able to:
• Create user generated self serve guides
• Develop a 13-fold increase in discussions & feedback
• Get far higher engagement on specific events
• Create applications, marketing material, etc.
A thriving community needs a team facilitating
conversations between members with similar interests.

14. Managing Member Lifecycles
We get customers involved by:
• Engaging with members and build
personal relationships
• Having scheduled interactions with each
member, specific to each engagement
stage
• Tracking interaction rates between stages
and encourage participation
• Managing churn to gain a deeper
understanding of improvement areas
Readers
Contributors
Helpers
Time
EngagementLevel
Customers want to help out, but they don’t always know
how. Show how fulfilling it can be and they will.

15. Integration of the Community
In order to optimise the wide range of community benefits, it is paramount that the forum is integrated
with the various areas of the business.

16. Best practise
examples/results

17. 45,954 4,046SolutionsPosts
846,772Minutes online
821,739
Page views
All of this from a 10 members
(Activity from 18/8/13 – 18/8/14)
Impressive Combined Super User Activity in 12 months

18. The high value of user-generated content
(Engaging the community)
25 Reviews
46 Guides
36 Video Guides
Example: Signal fault diagnosis
guide £5,000
(Used by Social Media teams
as a customer reference)
Saved - Monthly average

19. 41%
Call deflections
In the last 12 months
provided 5,678
Customer solutions
9.5 Million
Solution views
£3,880,411
Savings
14M Unique visitors
60M page views

20. Enero Feb Marz Abril Mayo Junio Julio
Minutes to First Response 5145 1150 151 196 62 104 29
0
1000
2000
3000
4000
5000
6000
Minutes to First Response
Results after starting a community for
Movistar Argentina after 6 Months

21. Topics + Replies
0
1000
2000
3000
4000
5000
6000
7000
8000
Noviembre Diciembre Enero Febrero Marzo Abril Mayo Junio Julio
Replies
Topics
2000 replies in November 2013 – almost 7000 in July 2014

22. (Engaging the community)
60 Tutorials & Guides
30 Product reviews
3 Video Guides
Estimated value of guides,
tutorials & reviews $300,180
(Over 1.5 Million views on just these guides,
tutorials & reviews in just 6 months)
Combined User Generated Content activity in 6 Months

23. 30%
Call deflections
In the last 6 months
provided 2,445
Customer solutions
1 Million
Solution views
$1,533,493
Savings
0.8M Unique visitors
2.2M page views

24. 100% visits
Knowledge
Base
22.4%
Email an agent
0.3%
Community
77.1%
Post in
community
0.2%
Search &
Browse behaviour
Average response time
2hrs (8am – 6pm)
Average response time
Below 3 minutes (24/7)

25. 3.282
ideas submitted
31.813 customer
comments on ideas
4.6 Million visitors
to the Idea Exchange
More than 20 apps created
by the community
Without the Ideas Board, we wouldn’t have:
• Gigabags
• Blackberry App
• Coverage map
• Twitter integration
• Giffgaff surveys
• Auto Top up
• Goodybags
• Christmas party 2011
• Topping up via vouchers
• Sim in a box
• Phone Apps in various guises
• Giffgaff T-Shirts
• Mobile Version of the community
• Mini Statements
• Splash Page for service Outages
• Forgotten username feature
And many more………

26. User Generated
Content
Members create many guides
and videos

27. • People connect on the go and it’s our community
that leads the way and supports that
• With well over 20 different mobile applications
created
• And downloads of these applications running into
the 100.000’s

28. Memoman 5000 promotional leaflets
Community lead projects

29. Adamf referral brochure
Community lead projects

30. Did You Know.. (visual comparisons) by joshaw
Community lead projects

31. Community lead projects

32. Goodybag stand by adamf
Community lead projects

35. The Output is Real Commercial Benefits
giffgaff results:
Customer Service
• Customer Care saving of 50% vs traditional methods
• CSAT = 79. NPS = +70
• Churn reduction
• 31% Reduction in 12mth churn (Posting once in forum)
• 41% Reduction in 12mth churn (Reading more than 5 pages)
• 52% Reduction in 12mth churn (Receiving any Payback)
• Reduced CPA
• SuperUsers activate an average of 40 other paying customers
• Any forum participation doubles your likelihood to activate a
friend
• Overall referrals from customers > 25% of all acquisition

36. Three Key Goals to Make a Community
Work for the Business
• Signposting
• Full integration in CRM program and the communications throughout a customers lifecycle
• Deflections from all channels
• Internal awareness
1. Raising Community Awareness
• Regular & varied incentives
• Forum as discussion platform
• Accessibility
2. Increasing Activity & Participation
• Defining key metrics /targets
• Understanding what’s important to the business (call deflections, increased sales,
engagement, extension of the brand, product development, etc.)
3. Quantifying Business Benefits
The more you integrate your community into your
business processes, the more value you get out

37. THANK YOU
ANY QUESTIONS?
Chief Community Officer, Telefonica, SOG @VincentBoon

38. Our methods are unique and give
outstanding advantage over technology alone
38
1.0 1.8
8.7
12.7 13.4
37.4
40.5
Staff needed per 1000 threads
12 x more cost-effective
than average
4 x faster
than average
All 7 companies above use identical forum technology. But only giffgaff
and O2 use our methods.
7
101
215 220
463
891
1146
Response time in minutes