Welcome!

You will be redirected in 30 seconds or close now.

ColdFusion Authors: Yakov Fain, Jeremy Geelan, Maureen O'Gara, Nancy Y. Nee, Tad Anderson

Related Topics: @CloudExpo, Cognitive Computing , @BigDataExpo

@CloudExpo: Blog Feed Post

Customer Benchmarking Motivates Action | @CloudExpo #SaaS #Cloud #Analytics

Many CSMs at Software-as-a-Service companies conduct Quarterly Business Reviews with senior executives at key accounts

Customer Benchmarking Motivates Action
By Ed Powers

Electric utility companies promoting power conservation programs discovered that simply informing consumers of their electricity usage relative to neighbors lowered overall consumption. This type of normative social comparison has produced the same effects in other domains. Why does this work? How can the idea be used in Customer Success?

Keeping up with the Joneses
Homeowners typically receive letters from the power company showing how many kilowatt hours they've used over the past month compared with other homes in the vicinity. In addition to bar charts, consumers see a "smiley face" if they're doing well or a "frowny face" if they're trailing the average. The mailers typically also include a list of recommendations for conserving energy.

social norm

Surprisingly, this simple trick works. People change their behaviors when they see how they stack up against others. In multiple experiments run by the utility companies, providing benchmarks reduced overall power usage 2%.1 That may not sound like much, but across millions of homes the savings are substantial, helping power companies meet their government-mandated conservation goals. Similar outcomes from communicating descriptive norms have been shown in hospitality (reusing towels more often),2 voting (increasing turnout),3 and charitable giving (boosting the number of donors).4

What causes this behavior? Neuroscientist David Rock says subconscious social drivers are hardwired into our brains after eons of evolution.5 One primary driver is status, how we view ourselves in the "pecking order." Social bearing means survival-whether it's humans, birds, or wildebeest, members at the apex of the hierarchy are more likely to continue living and pass along genetic information. To aid our preservation, we reflexively perceive higher status as a reward and lower status as a threat. As a result, we savor outranking others and become anxious when we fall short.

Seeing rank expressed in numbers may increase the urgency to act. Neuroscientists have found that the brain uses the same circuitry to process number comparisons as it does to determine social status.6 The findings suggest we subconsciously use numbers to record social rank, and seeing status expressed numerically activates overlapping neural networks that may add fuel to our emotional response. Whenever emotions are strong, decisions and actions tend to follow.

Better business reviews
Many Customer Success Managers (CSMs) at Software-as-a-Service (SaaS) companies conduct Quarterly Business Reviews (QBRs) with senior executives at key accounts. Customers derive business value from deploying and using software, so a common objective is to ensure implementation milestones and adoption goals are met. Executive engagement and attendance at QBRs, however, is a chronic problem. Often CSMs do a poor job of describing how the software subscription impacts things like organizational productivity and decision making, but other times they simply fail to capture the attention of senior leaders.

Showing comparative data can help. Besides demonstrating progress vs. the customer's goals, showing results relative to the customer's own peer groups has greater impact. Executives are usually competitive people. When they see their organization is ahead of the pack, the fact suddenly becomes a talking point with their own bosses. When they see progress is behind the curve, they are more likely to push subordinates and make things happen. Sharing the tidbit garners increased attention and raises CSM status in the eyes of executives. "Information is power" is also true among top managers, and good intelligence is always appreciated.

The approach works at scale, too. Like the power company, automatically communicating descriptive social norms can move the needle in large populations of small customers. When SaaS companies show individual performance relative to benchmarks via tailored e-mails and in-product messages, they can influence behaviors in mass audiences without the need for personal contact. A simple change in how data are communicated can bump customer usage as well as CSM productivity.

New automation tools make the process much easier. OnlyBoth's benchmarking engine uses artificial intelligence to automatically uncover readable, motivating, action-provoking insights and customer comparisons. CSMs can use this novel intelligence to nudge customers toward greater success during business reviews and for routine, personalized e-mail communications campaigns.

We're naturally wired to compare ourselves with others. SaaS companies can easily capitalize on this basic human nature. And that would place them ahead of the pack.

References

1 Alcott, H. (2011). Social norms and energy conservation. Journal of Public Economics 95, pp. 1082-1095

2 Nolan, J., Schultz, W., Cialdini, R., Goldstein, N., Griskevicius, V. (2008). Normative influence is underdetected. Personality and Social Psychology Bulletin 34, pp. 913-923

3 Gerber, A. and Rogers, T. (2009). Descriptive social norms and motivation to vote: everybody's voting and so should you. The Journal of Politics 71, January 2009, pp. 178-191

4 Frey, B., and Meier, S. (2004). Social comparisons and pro-social behavior: testing "conditional cooperation" in a field experiment. The American Economic Review, December 2004, pp. 1717-1722

5 Rock, D. (2008). SCARF: a brain-based model for collaborating with and influencing others. NeuroLeadership Journal

6 Chiaoa, J., Haradaa, T., Obyb, E., Lia, Z., Parrish, T. Bridge, D. (2008). Neural representations of social status hierarchy in human inferior parietal cortex. Frontiers in Neuroscience.

Continue reading

Read the original blog entry...

More Stories By Raul Valdes-Perez

Raul Valdes-Perez co-founded OnlyBoth in March 2014 and is CEO. He co-founded Vivisimo in 2000, a search software company that provided enterprise products and web-based consumer services, serving as its CEO for nine years and as Chairman for twelve until its acquisition in 2012 by IBM.

At Vivisimo he was named a 2007 Ernst & Young Entrepreneur of the Year for the North Central Region and a top ten reader favorite for Entrepreneur of the Year by Inc. magazine. Earlier, he was on the Carnegie Mellon computer science faculty. He received seven research grants from the National Science Foundation and published 50 journal articles and book chapters in computer, natural, and social science.

He received a computer science PhD from Carnegie Mellon in 1991, where his advisor was the Nobel Laureate Herbert A. Simon, and B.S. and M.S. degrees in information engineering from the University of Illinois at Chicago. Raul authored the book Advice is for Winners: How to Get Advice for Better Decisions in Life and Work in late 2012, and is on several company and non-profit boards.

@ThingsExpo Stories
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...