George Krautzel: The Evolution of Online Communities

The Evolution of Online Communities:
From Knowledge Sharing to Personal Brand Building
George Krautzel, Co-Founder and President, Toolbox.com
OfficeArrow, LLC. 2009.

Table of Contents:
Section 1: Introduction
Section 2: Evolution of Online Communities
Section 3: How Professionals Are Using B2B Online Communities
Section 4: Personal Branding in B2B Online Communities
Section 5: Why Vendors Should Start Engaging Now in Online Communities
Section 6: Q&A

Section 1:
Introduction

Who is Toolbox.com?

Mission
Provide an online platform that enables professionals to easily share knowledge with their peers
Existing Communities
IT (11 years), HR (<1 yr), and Finance (<1 yr)
More than 3.0 million unique monthly visitors and 1.6 million registered members
Over 2.6 million pages of user-generated content
Advertising Services
More than 800 advertising partners, including: IBM, HP, Oracle, Microsoft, Dell

Toolbox.com Growth – Registered Members
Q3 2009
1,659

Toolbox.com in the Media Space
User-Generated

Content is communication, specific appeal
2-way conversations between friends
Personal experiences, socially driven
Content is communication, specific appeal
2-way conversations between peers
Personal experiences, best practices

Editorial

Content is carefully vetted, broad appeal
1-way conversation from experts to readers
News, consumer interests, and trends
Content is carefully vetted, broad appeal
1-way conversation from experts to readers
News, case studies, best practices

Consumer
Business

Section 2:
Evolution of Online Communities

Community is Not a New Concept

Usenet
Strengths

One of the first computer network communications systems (1980)
Precursor of discussion boards, peer-to-peer networking
Organized and categorized for easy knowledge sharing
Significant influence on online culture (coined “spam”, “FAQ”, etc.)

Gaps

Not moderated
Short binary retention time (although now archived as Google Groups)
No registration, anonymous participation = no brand building

AOL
Strengths

Made online service available to the masses (30 million users at peak)
Offered a graphical user interface (GUI) instead of command lines
Pioneered the chat room concept
Emphasis on communication with other members as value proposition

Gaps

Proprietary software/service needed to gain access (“walled garden”)
Repositioned as content provider instead of a community (lost focus)

Facebook
Strengths

Dominant reach- 250 million active members
Well designed to create member engagement
Wall/newsfeed functionality highlights activity of connections
Various applications for sharing/collaboration
Ability to leverage for B2B and B2C with Facebook Fan Pages

Twitter
Strengths

Simple communication vehicle – “What are you doing” in 140 characters
Easy way to stay current on news and trends in your areas of interest
Potential to connect with and influence the influencers
Fluid process for “following” and “unfollowing” connections

Section 3:
How Professionals Are Using B2B Online Communities

Tracking Social Media Consumption Among Professionals

Trend: consistent increase in social media consumption, up to 4.72 hours per week in June 2009
Results from the Toolbox.com/PJA Social Media Index Survey of 3,000+ IT pros in each of the four waves

Source: Toolbox.com/PJA IT Social Media Index, Wave 4, June 2009

How and Why Professionals Use Online Communities

Increase productivity and efficiency through knowledge sharing
Manage careers
Stay current
Solve problems faster
Research vendors
Make better decisions
Tap into tools for peer collaboration
Personal networks
Blogs
Discussion groups
Wikis

Cost-effective, timely, and better solutions
Member question
Community feedback

Solving Problems – Discussion Group Example

Section 4:
Personal Branding in B2B Online Communities

Managing Your Personal Brand

Personal branding is “your promise to the marketplace and the world”
Tom Peters, best selling author on business management
According to a recent survey by ExecuNet, the average tenure of an executive with the same company has slipped to 2.8 years
Loyalty to “You” does not have to be in conflict with loyalty to your company
In today’s business environment, proactive career management through active shaping of your personal brand is essential

The Permanence of Participation in Communities

“What happens in Vegas, stays on Google”
Scott Monty, head of social media at Ford Motors
While this quote has a negative connotation, the same understanding also creates opportunity
Professionals can leverage this permanence to support their personal brand management through active networking and participation

Reputation Management - Creating Value for Individuals and the Community

A clear, logical reputation management system can be a tide that lifts all ships in a professional community
For individuals
Answers “what’s in it for me” and provides a foundation for personal brand management
Increases likelihood of responses to inquiries
Produces the opportunity to leverage the community to vet answers
For the community
Provides incentive for transparency
Increases the quality of contribution

Reputation Management Key Ingredients – Ratings
Example: Digg
Ratings Systems

Easy to use voting system
Community assesses value
Highest rated posts receive the most visibility

Ratings Systems in a B2B Community

Helps determine the “best” solution to an issue
Provides a quick input to judge the competency of the poster

Reputation Management Key Ingredients – Achievements
Example: eBay
Achievements Systems

Powerful means of rewarding participation
Can be based on quality, quantity, response time, etc.
Feeds the human need of “Everyone wants a gold star”

Achievements Systems in a B2B Community

Creates a carrot for greater engagement and higher quality
Provides a system to identify high value contributors

Reputation Management Key Ingredients - Profiles
Example: Toolbox.com
Achievements:
Provides a systematic way to recognize high valued contributors, whether it is based on volume, quality, or response time.
Participation:
Shows contribution from a user that has taken place within the Toolbox.com community.
Capability:
Online résumé to detail relevant experience, accomplishments, interests, and values.
Connections:
Lists the community members who are part of a user’s network.

Benefits of Active Participation –
Example: Nic Harvard
“By participating in an active community, I can benchmark my skills and understand my knowledge gaps. By doing so, I can plan my career path, better position myself for new appointments, and/or understand the greatest value-add ability to a current employer. At the very least, it allows anyone, no matter where they are in their career, to know what they don’t know.”

Progressing Reputation to Commerce –
Example: Ron Fisher

Founder of Profiling Solutions, an Atlanta-based company
Transitioned from a consumer of Toolbox.com to a contributor to enhance brand
Benefits of participation:
Builds brand awareness
Positions company as having a deep pool of knowledge
Contributes to top line growth – 20-25% of annual new customer acquisitions come from the community

Section 5:
Why Vendors Should Start Engaging Now in Online Communities

Universal Truth in Marketing

“Advertising dollars always follow the audience”
Scott Karp, CEO of Publish2, Inc., and various sage marketers

Attitudes About Vendor Participation in Online Communities

More than 76% of community members believe it is important that vendors listen to their audience and participate in conversations
Results from the Toolbox.com/PJA Social Media Index Survey of 3,000+ IT pros in each of the four waves

Which of the following statements best reflects your attitude about vendor participation in online communities?
Source: Toolbox.com/PJA IT Social Media Index, Wave 4, June 2009

The Evolution of Online Marketing
Relationship
Direct Results

Value: Web as a relationship management platform
Primary Goals: Engaging prospects and customers outside of their Web site
Secondary Goals: Lead generation, drive traffic, thought leadership and branding
Measurements: Cost of sales, customer retention, brand penetration and measurements from direct results stage
Marketing Tactics:
Vendor communities
Two-way ads
Messaging connections using trigger marketing
Successful tactics from direct results stage

Experimentation

Value: Web as a direct results platform
Primary Goals: Drive traffic and lead generation
Secondary Goals: Thought leadership and branding
Measurements: CPL, CPC, brand measurements confirmed through surveys
Marketing Tactics:
Search ads
Lead generation – white papers, webcasts
Branding - IMUs, larger units, microsites
E-mail – list rentals
Value: Web as a promotional vehicle
Primary Goals: Trial a new media concept, gain eyeballs, build brand and drive awareness
Measurements: Cost per impression
Marketing Tactics:
Branding – buttons, banners
E-mail – newsletters, list rentals

2004-2009
2010-2015
1996-2003

Impact = Site visits/leads
Effort = Funding
Marketing ROI – Traditional Campaigns
Traditional Campaigns
With traditional campaigns there is a direct relationship between funding and results – once a campaign is over, that activity usually ceases (landing page visits, etc.).
VALUE
TIME
Source: Pauline Ores, IBM

Impact = Relevance and engagement
Effort = Funding
Marketing ROI – Online Community Campaigns
Social Media Impact
Social media marketing requires continuous, steady investment to build and manage the network, with eventual value created as the network grows and becomes self-sustaining.
VALUE
Marketing through an online community allows advertisers to quickly engage and make an impact with their target audiences.
TIME
Source: Pauline Ores, IBM

Creating a Beachhead Within Active Communities
About Section:
Provides an overview of the vendor, as well as links to allow community members to quickly connect with or contact the vendor.
Connections:
Lists the community members who have expressed their interest in engaging and staying current by creating a connection with the vendor.
Vendor Assets:
Prominently displays the vendor’s information assets, including white papers, webcasts, product demos, news, PR, and more.
Participation:
Shows related postings by the vendor within the Toolbox.com community.

To Start, Devise a SMART Strategy

Do not start without a basic strategy, execution should come second
Test, listen, engage, and learn
Like personal brands, in communities your company’s brand is being formed with or without your participation — actively shape it

Section 6:
Q&A

Contact Information
George Krautzel
Toolbox.com Co-Founder and President