There’s advantage to be won in the Social Media Wild, Wild West…The playing field is tilted in favor of those who act: 1% of customer conversations (in public social media) are assimilated as organizational knowledge 9% touch the organization, but no learning occurs 90% never touch the organization 2009 Consortium for Service InnovationCustomer feedback in general is not much better, butat least how invisible customers are here is private: 95% collect customer feedback (by various means) 50% alerted staffs 30% used insight gained 10% made improvements 5% told customers of the changes made 2001 Gartner Referenced Study 79% of executives have only superficial Win advantage understanding of their customers 2006 IBM Study in three ways… 2
(1) Build value-creating communities…Three aspects of value are required for a community to BE.Initiatives—what the community DOES beyond being—build more value and increase participation/engagement. Reputation/ Promise: Affinity or reason to be affiliated with the community and/or the sponsor(s) BRAND VALUE Community Delivery/ Use: PRODUCT Value Communication of information of interest VALUE Community Experience: Interactions, enabled RELATIONSHIP VALUE by technology ------------------------------------ Community Initiatives: Support, Evangelize, Collaborate
(2) Understand relationships better than competitors do. And (3) act on that inside intelligence to• Take Real-Time Operational Control: Paradoxically, in an environment where things look even more out of control than usual and what happens is public knowledge, winners can have more control and proactively influence outcomes through communities.• Monetize Communities: Winners can tie the individual relationships developed through social media and purposeful communities to profit and other positive outcomes/patterns—to repeat success.• Gain Sustainable Competitive Advantage: Winners can turn a data overload into actionable, proprietary intelligence to manage with a relationship development KPI and leading indicator for profit and satisfaction. v Who wins…
1. Social Media Wild, Wild West WinnersTechnology Companies Who Enable Data Access andDelivery in Real Time and Companies Who Provide theTechnologies, Business Methods, and AnalyticsCritical to Social Media and Communities. Obviously.These are the winners, no matter what. They can bebigger winners if they act to• Innovate/collaborate with their customers/user groups on new approaches in the next generation of technology.• Leverage their customer base/user group relationships to develop more business, other markets.• Build upon their customer base/user groups in Stakeholder Communities to incorporate other relationships critical to their company’s success. .
2. Social Media Wild, Wild West Winners3rd-Party Community Players Who Collaborate withStakeholder Community Marketers. They will act to use3rd-Party Communities to• Become part of the Stakeholder Community workflow.• Measure and manage their part of the relationship development process and hand off interaction flows.• Add value with benchmark data and pattern analysis.Who Plays:• Public and Private Label Media Companies who transform their content and conference businesses.• Niche Marketers who own a market segment and the associated thought leadership.
3. Social Media Wild, Wild West WinnersCMOs and the CFOs Who Collaborate with Them. Theywill act to use Stakeholder Communities to:• Take responsibility for retention where the money is.• Own all of the relationships that matter for the success of the company. Leverage individual interaction flows.• Use a KPI to measure and then manage relationship development for their company’s competitive advantage.• Tie individual relationships to profit and other positive outcomes/patterns to repeat success.• Pilot real-time operational control for the Enterprise by starting in communities where relationships are king and social media and communities have paved the way for integration of Acquisition/ Closing/ and Retention.
Why Stakeholder Communities Matter: 1. A Stakeholder Community can be a hub for critical interactions with customers and other key stakeholders. Social Networks: Communities Links, WOM, Search fed by Social Networks, Social Media and Traditional 3rd Party Stakeholder Traditional Direct Community: Links, WOM, Search, Leads, Community Direct Marketing Tactics: Marketing Conferences, Interaction Flows, Benchmark Data Tactics Events, Surveys Tactics are critical in executing a customer3rd Party Communities Social Media Tactics: relationshipcollaborate with marketers Blogs, Tweets, RSS Feeds, strategy andin Stakeholder Communities, WOM, Wikis, YouTube creating value.becoming part of their workflow.
2. A Stakeholder Community can fulfill a variety of strategic purposes through its initiatives.# Purpose Support Evangelize Collaborate1 Solidify/invigorate your base/stimulate referrals X X X2 Innovate/ collaborate on new approaches X X3 Monitor trends/ refine messaging X4 Enable self help to solve problems X X5 Enable self help to expand use X X X6 Build support for a cause/ an idea X X7 Raise money/ resources X X X8 Help members keep on a program/ path X X9 Build a body of knowledge X10 Respond to a social/ business need X X X11 Make better use of resources X X12 Change the rules/ world X X13 Foster peace/ understanding X X X14 And more… X X X 9
3. A Stakeholder Community is not only a critical place to leverage relationships and their interaction flows to build marketplace buzz and momentum, it has the potential to be the center for corporate governance. What does it take to set Employees/ up a community to Partners/ measure and manage Supply Chain the data to achieve the operational control necessary? What forces are at play Stakeholder to make communities Community such a logical place Participants to pilot real-time External Suspects/ corporate Influencers/ Interested Prospects/ Customers governance… Parties
Real-Time Operational ControlTakes the Relevant Intelligence of Social CRI.• A unifying CRI FRAMEWORK to manage Acquisition, Closing, and Retention as a continuum. (Social media and communities are driving integration of the Marketing, Sales, and Customer Service silos. That reality and that many of the interactions are already digital makes measuring and managing communities a logical place to begin.)• Consistent relationship METRICS to track relationships and their interaction flows. (Interactions, Interaction Costs, and the KPI for relationship development—Relationship Value—measure relationships in communities and in all other tactics for strategy execution as well.)• A deliberate, systematic PROCESS using the unifying framework and metrics to build profitable relationships and create value. (The value created in communities helps execute customer relationship strategies for segments with profit improvement potential. It is a natural next step to expand the process beyond communities to other tactics.) 11
A Unifying CRI FRAMEWORK To Measure and Manage Real-Time Community Relationship DevelopmentRelationship development is the most important thing that people on the frontline in theMarketing, Sales, and Customer Service silos do. Yet typically, the silos are manageddiscreetly instead of being aligned behind a common strategy and managed explicitlyfor relationship development. Communities can be welcome process change agents. 12
Unifying CRI Framework, Consistent Metrics, and Deliberate, Systematic Process From Communities to the Enterprise Enterprise CRI CRI Segments Blah Social CRI Blah Blah Communities Social Media Wild, Wild West BlahBlahBlah Rules 13
Operational Control for Frontline Staff and Managers in 3rd-Party and Stakeholder Communities:Operational Social CRI (Community Relationship Intelligence) can answer:• What is happening right now with individual community members? At what cost? For what effect?• How does the community member experience compare to previous successful patterns? Real-Time• What is best to do next to develop the Dynamic Patterns community member relationship?• What is the most profitable action to take?• How well is this process working Real-Time Decisions in real time? 14
Operational Control for Executives:Enterprise-level operation control rolls up from business units--which rollup from channel/product group combinations--which roll over fromStakeholder Communities. Operational control comes from where theaction is as relationships are developed. Operational Social CRI(Community Relationship Intelligence) paired with CRI can help answer:• Where are you making more money?• Are you growing high-value customers? Real-Time Dynamic Patterns• Are Communities making a difference?• How well are you driving profit and satisfaction?• How can you achieve sustainable competitive advantage? Real-Time $ Decisions• How can you repeat success? Real-Time Profit Results• Where should you focus next? 15
Three Reasons Why Religence to Win in the Social Media Wild, Wild West1. Social CRI (Community Relationship Intelligence): A component of the Religence Framework for CRI, a business method to help you make sense of the data to • Achieve real-time operational control, • Tie the relationship development process to profit, • Deliver sustainable competitive advantage.2. Track Record in Building Successful Communities: Our engagement rate is three times the accepted norm because ours typically are purposeful communities with strong leadership and organizational infrastructure.3. Our Experienced Cross-Functional Consulting Team: We bring Marketing, Finance, and Operations to the table—and on the same customer-focused plate.
Want to know more about Social CRI and Enterprise CRI?More Resources in Social CRI Part Two:• Drill down more in the Religence Framework for Social CRI and Enterprise CRI—the FRAMEWORK, METRICS, and PROCESS.• Walk through a Value Creation Mapping example for a Community Collaboration Initiative.Resources Elsewhere:• Take a look at our CEO’s new book on Customer Relationship Intelligence at www.CRIbook.com.• Review the Next-Generation Thought Leadership Papers and extensive CRI Reference Section and FAQ Section at www.religence.com.• Join the CRI Community at www.CRIcommunity.com.• Ask about Executive Briefings and Workshops.