Four Laws of Social Business (Jeremiah Owyang, Altimeter Group)

Four Laws of Social Business
Jeremiah Owyang
Altimeter Group
May 2010
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SMASH SUMMITT

There are more than four.
Laws can be broken, but not without consequences.
Whether a buyer or seller, abide by these to prosper.
The thing about the laws…
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Four Laws of Social Business
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Image taken by 0108dk used with Attribution as directed by Creative http://www.flickr.com/photos/0108dk/4181928709/
1) Don’t Fondle the Hammer
© 2010 Altimeter Group

Run when you hear “Twitter Strategy” or “Facebook Strategy” – it’s putting the cart before the horse.
Instead, focus on how you’ll understand customers.
Then choose a business objective.
First, focus on customers
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Socialgraphics
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Demographic
Geographic
Psychographic
Behavioral
Socialgraphic

Where are your customers online?
What are your customers’ social behaviors online?
What social information or people do your customers rely on?
What is your customers’ social influence? Who trusts them?
How do your customers use social technologies in the context of your products.
Socialgraphics asks key questions
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Social Strategy Objectives
8

Focus on building the house – not the hammer

2) Live the 80% rule

Treat social success like launching a new product.
80% of success is getting your company ready – only 20% is about the technologies.
You can’t love your customers ‘till you love yourself first.
Get your company ready
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Crisis response plan
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Social media triage
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Take reasonable action to fix issue and let customer know action taken
Negative
Positive
Yes
Yes
No
Assess the message
Evaluate the purpose
Do you want to respond?
Does customer need/deserve more info?
Unhappy Customer?
No Response
Yes
Are the facts correct?
Gently correct the facts
Yes
No
No
No
Can you add value?
DedicatedComplainer?
Are the facts correct?
Yes
Yes
No
No
Yes
Respond in kind & share
Thank the person
Comedian Want-to-Be?
Explain what is being done to correct the issue.
Is the problem being fixed?
Yes
No
Yes
Let post stand and monitor.

One department controls all efforts
Consistent
May not be as authentic
e.g. Ford
Centralized
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Organic growth
Authentic
Experimental
Not coordinated
e.g. Sun
Organic
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One hub sets rules, best practices, procedures
Business units undertake own efforts
Spreads widely around the org
Takes time
e.g. Red Cross
Coordinated
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Similar to Coordinated but across multiple brands and units
e.g. HP
Multiple hub and spoke or “Dandelion”
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Each employee is empowered
Unlike Organic, employees are organized.
e.g. Dell, Zappos
Holistic or “Honeycomb”
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Social strategist: Responsible for the overall program, including ROI
Community manager: Customer facing role trusted by customers
Roles
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3) Customers don’t care what department you’re in
Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/

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Customer don’t care what department you’re in

Now, with social tools, every employee can talk to customers and prospects.
Yet, this could create confusion with clients.
New systems will be needed to centralize data so customers have a holistic experience.
Customers deserve a holistic approach
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Connects the Social Web with existing CRM Systems
Enables Brands to better manage relationships
Catch leads in real time
Allow for better account management
Anticipate customer needs
Social CRM helps companies catch up
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The 18 Use Cases of Social CRM
1. Social Customer Insights: The 5M’s
Marketing
Sales
Service & Support
Innovation
Collaboration
CustomerExperience
2. Social Marketing Insights
6. Social Sales Insights
9. Social Support Insights
12. Innovations Insights
14. Collaboration Insights
17. Seamless Customer Experience
3. Rapid Social Marketing Response
7. Rapid Social Sales Response
10. Rapid Social Response
13.Crowdsourced R&D
15. Enterprise Collaboration
18. VIP Experience
4. Social Campaign Tracking
8.Proactive Social Lead Generation
11. Peer-to-Peer Unpaid Armies
16. ExtendedCollaboration
5. Social Event Management
Attribution-Noncommercial-Share Alike 3.0 United States

Not All 18 Social CRM Use Cases are Market Ready
Attribution-Noncommercial-Share Alike 3.0 United States

Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/
4) Real time is *not* fast enough

Evolution of the web
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Real time is not fast enough

Microsoft’s MVPs empowers community

Walmart’s 11 Moms gives consumers a voice

The Four Laws Of Social Business
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How To Prosper
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THANK YOU
Jeremiah Owyang
jeremiah@altimetergroup.com
web-strategist.com/blog
Twitter: jowyang

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About Us
Altimeter Group is a Silicon Valley-based strategy research and
consulting firm that provides companies with a pragmatic
approach to disruptive technologies. We have four areas of
focus: Leadership and Management, Customer Strategy,
Enterprise Strategy, and Innovation and Design.
Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.

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Four Laws of Social Business (Jeremiah Owyang, Altimeter Group)

by SMASH Summit on May 12, 2010

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