Creating A Coherent
Social Media Strategy
1
Charlene Li
Altimeter Group
2011 April 12
Twitter: @charleneli
Email: charlene...
© 2011 Altimeter Group
2
© 2011 Altimeter Group
It’s time to move past experiments
3
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
 Strategy
 Lead
 Prepare
Agenda
5
© 2011 Altimeter Group
 Strategy
 Lead
 Prepare
Agenda
6
© 2011 Altimeter Group
Strategy Process Stages
Discovery Ideation
Formulation
& Alignment
Planning Roadmap
7
© 2011 Altimeter Group
Strategy Process Stages
Discovery Ideation
Formulation
& Alignment
Planning Roadmap
Set context
• D...
© 2011 Altimeter Group
Align social with key strategic goals
9
Examine your
2011 goals
Pick ones where
social will have an...
© 2011 Altimeter Group
Corporate
Risk
management
Leadership
development
& culture
Value metrics
Business unit
Consistency
...
© 2011 Altimeter Group
Ask the Right Questions about Value
“We tend to overvalue the things we can
measure, and undervalue...
© 2011 Altimeter Group
Use appropriate metrics at each level
12
Corporate
LOB/Geo
Stakeholders
Social
Strategist/Community...
© 2011 Altimeter Group
 Highlight where you are strong, where you need
to develop.
 Don’t create strategies that you can...
© 2011 Altimeter Group
Benchmarking Social Readiness (Before)
14
December 2009
© 2011 Altimeter Group
Benchmarking Social Readiness (After)
15
April 2010
© 2011 Altimeter Group
Strategy Process Stages - Discovery
Discovery Ideation
Formulation
& Alignment
Planning Roadmap
Col...
© 2011 Altimeter Group
Impact
• How does it
support an
objective?
• What metrics
matter?
Readiness
• Are there
people who
...
© 2011 Altimeter Group
Define Your Strategy With Objectives
18
Learn
Dialog
Support
Innovate
© 2011 Altimeter Group
How does social media matter to B2B?
Chief stakeholders may
not be using social media.
• But lieute...
© 2011 Altimeter Group
People in B2B use social media for work
29%
49%
51%
55%
62%
62%
Use Twitter to find or request
busi...
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
21
© 2011 Altimeter Group
Track brand mentions with basic tools
22
What would happen
if every employee
could learn from
custo...
© 2011 Altimeter Group
Integrate monitoring with workflow
23
From Radian 6, to be acquired by Salesforce.com
Other provide...
© 2011 Altimeter Group
Be sure to track the actual conversations,
not just the tweets
24
@JaimieH is a top
diabetics advis...
© 2011 Altimeter Group
How KLM listened and surprised flyers
25
© 2011 Altimeter Group
No
monitoring
in place
Tracks brand
mentions
using basic
tools
(Google,
Twitter)
Centralized
monito...
© 2011 Altimeter Group
Shoppers want to be “known”
27
I walk into the store
And plans my visit
Store knows it’s me
Give me...
© 2011 Altimeter Group
Community insight platforms
28
» Communispace and
Passenger offer
online focus groups
solutions.
© 2011 Altimeter Group
 Private communities give better control
• Get input from specific communities
• Can target specif...
© 2011 Altimeter Group
30
Learn also from your employees
© 2011 Altimeter Group
Go beyond traditional data to understand
your customers
31
Demographic
Geographic
Psychographic
Beh...
© 2011 Altimeter Group
1. Where are your customers online?
2. What social information or people do your
customers rely on?...
© 2011 Altimeter Group
Engagement Pyramid
33
Curating
Producing
Commenting
Sharing
Watching
© 2011 Altimeter Group
Engagement Pyramid - Watching
34
Curating
Producing
Commenting
Sharing
Watching
Watch videos
Read b...
© 2011 Altimeter Group
Engagement Pyramid - Sharing
35
Curating
Producing
Commenting
Sharing
Watching
Share a link
Share p...
© 2011 Altimeter Group
Engagement Pyramid - Commenting
36
Curating
Producing
Commenting
Sharing
Watching
Comment on a blog...
© 2011 Altimeter Group
Engagement Pyramid - Producing
37
Curating
Producing
Commenting
Sharing
Watching
Write a blog
Creat...
© 2011 Altimeter Group
Engagement Pyramid - Curating
38
Curating
Producing
Commenting
Sharing
Watching
Moderate a wiki or
...
© 2011 Altimeter Group
Spain Germany UK
United
States
Curating <1% <1% <1% <1%
Producing 30.3% 21.1% 52.7% 26.1%
Commentin...
© 2011 Altimeter Group
 Conduct research to identify the social behaviors of your
target customer
 Also identify:
• Wher...
© 2011 Altimeter Group
 Listen and learn from your customers.
 Start with basic monitoring tools, but quickly
evolve the...
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
42
© 2011 Altimeter Group
 Conversations, not messages
 Human, not corporate
 Continuous, not episodic
The New Normal
43
© 2011 Altimeter Group
Blogs establish thought leadership
44
CEO Richard Edelman has
been blogging consistently
since Setp...
© 2011 Altimeter Group
SonyEurope rewards Twitter followers with
discount that drives significant sales
45
SonyEuropes 10%...
© 2011 Altimeter Group
VW inserted a tweet analyzing tool into their
banner ad to suggest a specific model
46
© 2011 Altimeter Group
Spain Tourism used multiple channels to
encourage dialog/sharing
47
© 2011 Altimeter Group
Kohl’s engages directly with customers
48
© 2011 Altimeter Group
B2B can also use Facebook
49
• Develop
relationships with job
candidates,
prospects, and
current em...
© 2011 Altimeter Group
Encourage commenting to get into
the Facebook news feed
50
© 2011 Altimeter Group
Premier Farnell supports engineers with
community, and employees with “OurTube”
51
© 2011 Altimeter Group
 Give out Flip cameras/smartphones
• Set up an internal “OurTube”
• Transcribe conversations into ...
© 2011 Altimeter Group
Tivo joined an existing community
53
© 2011 Altimeter Group
Advocacy – A five-phase approach
54
Phase 1:
Internal
Readiness
Phase 2:
Identify
Advocates
Phase 3...
© 2011 Altimeter Group
Tesco engages influencer blogs
55
Blog post series
highlights & drives
traffic to blogs by
Influenc...
© 2011 Altimeter Group
 Have an authentic conversation with your
customers that they want to have.
 Engage across and th...
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group© 2011 Altimeter Group
Support and Innovate With
Your Customers
1
Charlene Li
Altimeter Group
2011 April 12
Twitter: @charleneli
Email: charlene@...
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
3
© 2011 Altimeter Group
Vodafone UK uses Twitter to proactively
communicate with customers
Vodafone UK humanizes
their Twit...
© 2011 Altimeter Group
Ritz-Carlton managers monitor Twitter for
real-time service
5
Property manager
helped unhappy
honey...
© 2011 Altimeter Group
Support during a crisis
6
Used #euva and
#ashtag to track
conversationsSource: simplifying.com
© 2011 Altimeter Group
DellOutlet supports sales with Twitter
7
© 2011 Altimeter Group
Question & Answer sites provide opportunity
for support
© 2011 Altimeter Group
Q&A encourages dialog too
9
© 2011 Altimeter Group
iRobot ties discussion boards into
customers support
10
iRobot escalates
unanswered
questions into
...
© 2011 Altimeter Group
Salesforce.com Service Cloud ties
social channels back to customer data
11
© 2011 Altimeter Group
Solarwinds’ community is strategic
12
© 2011 Altimeter Group
Retailer Best Buy has 2,500 employees
providing support via Twitter
13
© 2011 Altimeter Group
 Real-time isn’t fast enough.
 Integrate “social” support into your support
infrastructure.
 Sca...
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
15
© 2011 Altimeter Group
P&G uses reviews to improve products
16
© 2011 Altimeter Group
Danish bank ask for help to improve
mobile banking on Facebook
17
© 2011 Altimeter Group
Finnish post created an idea exchange
18
© 2011 Altimeter Group
Fiat invites ideas for a new car
19
© 2011 Altimeter Group
Archer collects product development
ideas in a private community
20
© 2011 Altimeter Group
Starbucks involves 50 people around the
organization in innovation
Over 100 ideas
have been
impleme...
© 2011 Altimeter Group
Dell taps employee ideas too
© 2011 Altimeter Group
P&G goes outside for innovation
23
P&G made
outside-in
innovation a
priority
© 2011 Altimeter Group
 P&G developed technology from diaper research
 Reached out to competitor Clorox to form a new
jo...
© 2011 Altimeter Group
ModCloth has customers merchandise
new products
25
© 2011 Altimeter Group
 Innovating can come from any customer or
employee interaction.
 Dedicated innovation communities...
© 2011 Altimeter Group
Strategy Process Stages
Discovery Ideation
Formulation
& Alignment
Planning Roadmap
Strategy statem...
© 2011 Altimeter Group
What’s the Next Big Thing?
28
© 2011 Altimeter Group
29
© 2011 Altimeter Group
30
Identify and prioritizing disruptions that matter
User Experience
•Is it easy for
people to use?...
© 2011 Altimeter Group
“How personal relationships, individual opinions,
powerful storytelling and social capital are help...
© 2011 Altimeter Group
Likenomics evaluation
32
 User experience impact - moderate
• People with high social currency wil...
© 2011 Altimeter Group
33
2) Social Search – Beyond Friends to Interests
Social sharing rises
as a search ranking
signal, ...
© 2011 Altimeter Group
Social Search evaluation
34
 User experience impact - Moderate
• Search becomes more useful, relev...
© 2011 Altimeter Group
 Social monitoring merges with Web analytics
• HOT: Omniture, Coremetrics/IBM, Webtrends
 Technol...
© 2011 Altimeter Group
Big Data evaluation
36
 User experience impact - Low
• Most users won’t directly experience Big Da...
© 2011 Altimeter Group
37
4) Game-ification
© 2011 Altimeter Group
TurboTax used “games” to encourage
sharing and support
38
Social design can
enter training,
collabo...
© 2011 Altimeter Group
Gamification evaluation
39
 User experience impact – High
• Experiences get richer, more engaging
...
© 2011 Altimeter Group
40
5) Curation
© 2011 Altimeter Group
Curation evaluation
41
 User experience impact – Moderate
• User authority established from better...
© 2011 Altimeter Group
User
Experience
Business
Model
Value
Networks
Likenomics Moderate Moderate Low
Social Search Modera...
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
44
Thank you
44
Charlene Li
charlene@altimetergroup.com
charleneli.com/blog
Twitter: charleneli
For...
Leading The Open
Organization
1
Charlene Li
Altimeter Group
2011 April 12
Twitter: @charleneli
Email: charlene@altimetergr...
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
3
© 2011 Altimeter Group
OUT of CONTROL?
© 2011 Altimeter Group
© 2011 Altimeter Group© 2011 Altimeter Group
5
© 2011 Altimeter Group© 2011 Altimeter Group
6
© 2011 Altimeter Group
How to give up control
© 2011 Altimeter Group
but still be in command
7
© 2011 Altimeter Group
Open Leadership
8
Having the confidence
and humility to give up
the need to be in control,
while in...
© 2011 Altimeter Group
10 elements of openness
9
• Explaining
• Updating
• Conversing
• Open Mic
• Crowdsourcing
• Platfor...
© 2011 Altimeter Group
Explaining strategic decisions
10
Open book management
Managing leaks
© 2011 Altimeter Group
11
Updating with every day stuff
© 2011 Altimeter Group
Kohl’s has conversations on Facebook
12
© 2011 Altimeter Group
Open Mic: When people contribute
13
© 2011 Altimeter Group
Crowdsourcing new Walkers flavour
14
© 2011 Altimeter Group
Open platforms make it easy to partner
and share
15
Open architecture Open data access
© 2011 Altimeter Group
16
Centralized Democratic
Consensus Distributed
Decision making models
© 2011 Altimeter Group
 170 employees
 100 modules with
“module owners”
 One person makes
the final decision in
each mo...
© 2011 Altimeter Group
Determine how open you need to be with
information to meet your goals
18
Openness audit available a...
© 2011 Altimeter Group
Complete the Openness Audit
19
© 2011 Altimeter Group
Traits of Open Leaders
20
Authenticity Transparency
© 2011 Altimeter Group
Transparency as an imperative
21
© 2011 Altimeter Group
How Best Buy became open and social
22
© 2011 Altimeter Group
Best Buy’s First Social Media Experts
23
Steve Bendt &
Gary Koelling
© 2011 Altimeter Group
The Executive Advocate
24
Barry Judge
CMO of Best Buy
© 2011 Altimeter Group
Barry’s first post
25
© 2011 Altimeter Group
The Premier Black Fiasco
26
6.8 million
emails sent
instead of
1,000 test
© 2011 Altimeter Group
Developing Open Leaders
© 2010 Altimeter Group
© 2011 Altimeter Group
“You can imagine the Chatterati creating as
much value as an SVP in the organization by
sharing the...
© 2011 Altimeter Group
 Strategy
• Learn
• Dialog
• Support
• Innovate
 Lead
 Prepare
Agenda
29
© 2011 Altimeter Group
#1 Create a Culture of Sharing
30
© 2011 Altimeter Group
#2 Discipline is Needed to Succeed
Can you
add value?
Evaluate the
purpose
Respond in
kind & share
...
© 2011 Altimeter Group
Five ways companies organize around social media
32
© 2011 Altimeter Group
#3 Ask the Right Questions about Value
“We tend to overvalue the things we can
measure, and underva...
© 2011 Altimeter Group
+ Value of purchases
-Cost of acquisition
____________________
= Customer lifetime value
The new li...
© 2011 Altimeter Group
35% increase in LTV captured
35
Year 1 Year 2 Year 3
Number of customers 10,000 5,000 3,500
Gross p...
© 2011 Altimeter Group
Fans
Large
network
Refers
Doesn’t
refer
Small
network
Refers
Doesn’t
refer
Find more fans
with larg...
© 2011 Altimeter Group
No relationships are perfect
Google’s mantra:
“Fail fast, fail smart”
#4 Prepare for Failure
© 2011...
© 2011 Altimeter Group© 2011 Altimeter Group
38
© 2011 Altimeter Group
Structure your risk-taking and failure
systems to create resilience
39
1. Conduct pre- and post-mor...
© 2011 Altimeter Group
 Audit the last few failures you and your
organization experienced.
• 25% - what happened.
• 25% -...
© 2011 Altimeter Group
It’s about RELATIONSHIPS
© 2011 Altimeter Group
© 2011 Altimeter Group
AND STILL BE IN COMMAND
Give Up Control
© 2011 Altimeter Group
42
© 2011 Altimeter Group© 2011 Altimeter Group
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Charlenelibaja 110511072201-phpapp02

  1. 1. Creating A Coherent Social Media Strategy 1 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com
  2. 2. © 2011 Altimeter Group 2
  3. 3. © 2011 Altimeter Group It’s time to move past experiments 3
  4. 4. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  5. 5. © 2011 Altimeter Group  Strategy  Lead  Prepare Agenda 5
  6. 6. © 2011 Altimeter Group  Strategy  Lead  Prepare Agenda 6
  7. 7. © 2011 Altimeter Group Strategy Process Stages Discovery Ideation Formulation & Alignment Planning Roadmap 7
  8. 8. © 2011 Altimeter Group Strategy Process Stages Discovery Ideation Formulation & Alignment Planning Roadmap Set context • Determine key objectives • Level of strategy (corporate, biz unit, brand) • Identify key metrics • Assess readiness 8
  9. 9. © 2011 Altimeter Group Align social with key strategic goals 9 Examine your 2011 goals Pick ones where social will have an impact
  10. 10. © 2011 Altimeter Group Corporate Risk management Leadership development & culture Value metrics Business unit Consistency across brands Social strategist & COE ROI metrics Brand Channel focus Community manager & education Engagement metrics Objectives differ by level 10
  11. 11. © 2011 Altimeter Group Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group 11
  12. 12. © 2011 Altimeter Group Use appropriate metrics at each level 12 Corporate LOB/Geo Stakeholders Social Strategist/Community Manager Business metrics: revenue, CSAT, reputation. Social media analytics: Insights, share of voice, resonance, WOM. Engagement metrics: fans, followers, clicks.
  13. 13. © 2011 Altimeter Group  Highlight where you are strong, where you need to develop.  Don’t create strategies that you can’t execute.  Demonstrate impact of strategic work.  Categories for readiness assessment Assess your readiness to be social 13 • Communication • Mindset • Roles • Stakeholders • Monitoring • Reporting • Customer Profile • Market Analysis • Processes • Organizational Model • Education
  14. 14. © 2011 Altimeter Group Benchmarking Social Readiness (Before) 14 December 2009
  15. 15. © 2011 Altimeter Group Benchmarking Social Readiness (After) 15 April 2010
  16. 16. © 2011 Altimeter Group Strategy Process Stages - Discovery Discovery Ideation Formulation & Alignment Planning Roadmap Collect and prioritize strategic options • Metrics-based value assessment • Prioritize against objectives 16
  17. 17. © 2011 Altimeter Group Impact • How does it support an objective? • What metrics matter? Readiness • Are there people who can do this? • Is there budget? Risks • What are the risks if we do this? • What if we don’t? Priority • Does this initiative enable other work? Evaluate each initiative 17
  18. 18. © 2011 Altimeter Group Define Your Strategy With Objectives 18 Learn Dialog Support Innovate
  19. 19. © 2011 Altimeter Group How does social media matter to B2B? Chief stakeholders may not be using social media. • But lieutenants will be. Social media is impacting how B2B decisions are being made. • Background research • Expertise • Search results impact
  20. 20. © 2011 Altimeter Group People in B2B use social media for work 29% 49% 51% 55% 62% 62% Use Twitter to find or request business information Ask questions on Q&A sites Participate in online business communities or forums Visit company blogs Visit company profiles on social media sites Read user ratings/reviews for business products/services 20 Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)
  21. 21. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 21
  22. 22. © 2011 Altimeter Group Track brand mentions with basic tools 22 What would happen if every employee could learn from customers?
  23. 23. © 2011 Altimeter Group Integrate monitoring with workflow 23 From Radian 6, to be acquired by Salesforce.com Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech.
  24. 24. © 2011 Altimeter Group Be sure to track the actual conversations, not just the tweets 24 @JaimieH is a top diabetics advisor who was talking with an insulin pump maker
  25. 25. © 2011 Altimeter Group How KLM listened and surprised flyers 25
  26. 26. © 2011 Altimeter Group No monitoring in place Tracks brand mentions using basic tools (Google, Twitter) Centralized monitoring but not actionable in business unites Deep monitoring to prep & support campaigns Monitoring & analytics support integrated into everyday workflow Go beyond basic monitoring to analytics 26 Make course corrections nearly real-time. Use predictive analytics to anticipate demand.
  27. 27. © 2011 Altimeter Group Shoppers want to be “known” 27 I walk into the store And plans my visit Store knows it’s me Give me offers
  28. 28. © 2011 Altimeter Group Community insight platforms 28 » Communispace and Passenger offer online focus groups solutions.
  29. 29. © 2011 Altimeter Group  Private communities give better control • Get input from specific communities • Can target specific hard-to-reach communities  But they are hard to create – and maintain • Who needs to be included? Excluded? • Provide non-monetary incentives/rewards for participating in the community • Deserves and requires dedicated community manager • Integrate into your company’s support and innovation process Pros and cons of private communities 29
  30. 30. © 2011 Altimeter Group 30 Learn also from your employees
  31. 31. © 2011 Altimeter Group Go beyond traditional data to understand your customers 31 Demographic Geographic Psychographic Behavioral Socialgraphic
  32. 32. © 2011 Altimeter Group 1. Where are your customers online? 2. What social information or people do your customers rely on? 3. What is your customers’ social influence? Who trusts them? 4. What are your customers’ social behaviors online? 5. How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 32
  33. 33. © 2011 Altimeter Group Engagement Pyramid 33 Curating Producing Commenting Sharing Watching
  34. 34. © 2011 Altimeter Group Engagement Pyramid - Watching 34 Curating Producing Commenting Sharing Watching Watch videos Read blog posts Listen to podcasts Read tweets Read discussion forum posts
  35. 35. © 2011 Altimeter Group Engagement Pyramid - Sharing 35 Curating Producing Commenting Sharing Watching Share a link Share photos Share videos Write a status update Retweet
  36. 36. © 2011 Altimeter Group Engagement Pyramid - Commenting 36 Curating Producing Commenting Sharing Watching Comment on a blog Write a review Rate a product Participate in a discussion forum @Reply on Twitter
  37. 37. © 2011 Altimeter Group Engagement Pyramid - Producing 37 Curating Producing Commenting Sharing Watching Write a blog Create videos or podcasts Tweet for an audience
  38. 38. © 2011 Altimeter Group Engagement Pyramid - Curating 38 Curating Producing Commenting Sharing Watching Moderate a wiki or discussion forum Curate a Facebook fan page
  39. 39. © 2011 Altimeter Group Spain Germany UK United States Curating <1% <1% <1% <1% Producing 30.3% 21.1% 52.7% 26.1% Commenting 45.1% 31.9% 54.0% 34.4% Sharing 58.6% 61.8% 79.3% 63.0% Watching 82.2% 78.9% 89.3% 78.1% Engagement Pyramid Data 39 Source: Global Wave Index Wave 2, Trendstream.net, January 2010
  40. 40. © 2011 Altimeter Group  Conduct research to identify the social behaviors of your target customer  Also identify: • Where are they online: Surveys or brand monitoring • Who do they trust: Surveys • Who do they influence: Survey or brand monitoring • How they use these tools in context of your products: Most often surveys.  When you first understand your customers, your marketing efforts will naturally unfold. Putting socialgraphics to work 40
  41. 41. © 2011 Altimeter Group  Listen and learn from your customers.  Start with basic monitoring tools, but quickly evolve them.  Invest in analytics that matter. Use metrics that are relevant to your business.  Understand the socialgraphics of your customers. Summary - Learn 41
  42. 42. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 42
  43. 43. © 2011 Altimeter Group  Conversations, not messages  Human, not corporate  Continuous, not episodic The New Normal 43
  44. 44. © 2011 Altimeter Group Blogs establish thought leadership 44 CEO Richard Edelman has been blogging consistently since Setpember 2004.
  45. 45. © 2011 Altimeter Group SonyEurope rewards Twitter followers with discount that drives significant sales 45 SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000 Twitter follower lead to over €1m worth of product ordered.
  46. 46. © 2011 Altimeter Group VW inserted a tweet analyzing tool into their banner ad to suggest a specific model 46
  47. 47. © 2011 Altimeter Group Spain Tourism used multiple channels to encourage dialog/sharing 47
  48. 48. © 2011 Altimeter Group Kohl’s engages directly with customers 48
  49. 49. © 2011 Altimeter Group B2B can also use Facebook 49 • Develop relationships with job candidates, prospects, and current employees • Insert your content into newsfeed of fans • B2B is really people to people
  50. 50. © 2011 Altimeter Group Encourage commenting to get into the Facebook news feed 50
  51. 51. © 2011 Altimeter Group Premier Farnell supports engineers with community, and employees with “OurTube” 51
  52. 52. © 2011 Altimeter Group  Give out Flip cameras/smartphones • Set up an internal “OurTube” • Transcribe conversations into emails and posts  Ask people for best practices, reactions, advice, opinion in areas of passion.  Recognize key contributors. Getting people to share within your company 52
  53. 53. © 2011 Altimeter Group Tivo joined an existing community 53
  54. 54. © 2011 Altimeter Group Advocacy – A five-phase approach 54 Phase 1: Internal Readiness Phase 2: Identify Advocates Phase 3: Build Relationships Phase 4: Put Advocates First Phase 5: Foster Growth
  55. 55. © 2011 Altimeter Group Tesco engages influencer blogs 55 Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.
  56. 56. © 2011 Altimeter Group  Have an authentic conversation with your customers that they want to have.  Engage across and through social communities  Engage off of your Web site.  Recruit an army of customer advocates.  Respond to your prospects and customers in real time. Summary - Dialog 56
  57. 57. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  58. 58. © 2011 Altimeter Group© 2011 Altimeter Group
  59. 59. Support and Innovate With Your Customers 1 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com
  60. 60. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  61. 61. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 3
  62. 62. © 2011 Altimeter Group Vodafone UK uses Twitter to proactively communicate with customers Vodafone UK humanizes their Twitter account by including pictures of their support team and identifying different respondents by an “^” and the team member’s initials. 4
  63. 63. © 2011 Altimeter Group Ritz-Carlton managers monitor Twitter for real-time service 5 Property manager helped unhappy honeymooners
  64. 64. © 2011 Altimeter Group Support during a crisis 6 Used #euva and #ashtag to track conversationsSource: simplifying.com
  65. 65. © 2011 Altimeter Group DellOutlet supports sales with Twitter 7
  66. 66. © 2011 Altimeter Group Question & Answer sites provide opportunity for support
  67. 67. © 2011 Altimeter Group Q&A encourages dialog too 9
  68. 68. © 2011 Altimeter Group iRobot ties discussion boards into customers support 10 iRobot escalates unanswered questions into support centers
  69. 69. © 2011 Altimeter Group Salesforce.com Service Cloud ties social channels back to customer data 11
  70. 70. © 2011 Altimeter Group Solarwinds’ community is strategic 12
  71. 71. © 2011 Altimeter Group Retailer Best Buy has 2,500 employees providing support via Twitter 13
  72. 72. © 2011 Altimeter Group  Real-time isn’t fast enough.  Integrate “social” support into your support infrastructure.  Scaling support to meet the groundswell will require that you create your own groundswell. Summary - Support 14
  73. 73. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 15
  74. 74. © 2011 Altimeter Group P&G uses reviews to improve products 16
  75. 75. © 2011 Altimeter Group Danish bank ask for help to improve mobile banking on Facebook 17
  76. 76. © 2011 Altimeter Group Finnish post created an idea exchange 18
  77. 77. © 2011 Altimeter Group Fiat invites ideas for a new car 19
  78. 78. © 2011 Altimeter Group Archer collects product development ideas in a private community 20
  79. 79. © 2011 Altimeter Group Starbucks involves 50 people around the organization in innovation Over 100 ideas have been implemented
  80. 80. © 2011 Altimeter Group Dell taps employee ideas too
  81. 81. © 2011 Altimeter Group P&G goes outside for innovation 23 P&G made outside-in innovation a priority
  82. 82. © 2011 Altimeter Group  P&G developed technology from diaper research  Reached out to competitor Clorox to form a new joint venture  Helped Glad become Clorox’s second largest brand Success story: Glad Press’n Seal 24
  83. 83. © 2011 Altimeter Group ModCloth has customers merchandise new products 25
  84. 84. © 2011 Altimeter Group  Innovating can come from any customer or employee interaction.  Dedicated innovation communities require significant commitment and nurturing.  Extend your firewall to bring customers into your organization. Summary - Innovating 26
  85. 85. © 2011 Altimeter Group Strategy Process Stages Discovery Ideation Formulation & Alignment Planning Roadmap Strategy statement • What you will do • What you won’t do Scenarios development • Implementation roadblocks • Company and leadership implications • Risk identification • Build resilience 27
  86. 86. © 2011 Altimeter Group What’s the Next Big Thing? 28
  87. 87. © 2011 Altimeter Group 29
  88. 88. © 2011 Altimeter Group 30 Identify and prioritizing disruptions that matter User Experience •Is it easy for people to use? •Does it enable people to connect in new ways? Business Model •Does it tap new revenue streams? •Is it done at a lower cost? Ecosystem Value •Does it change the flow of value? •Does it shift power from one player to another?
  89. 89. © 2011 Altimeter Group “How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.” 1) Likenomics (credit to Rohit Bhargava) 31 Understand the supply, demand, and thus, value of Likes as social currency See http://bit.ly/rohit-likenomics for Rohit’s take
  90. 90. © 2011 Altimeter Group Likenomics evaluation 32  User experience impact - moderate • People with high social currency will enjoy benefits, richer experiences, receive psychic income. • People with low social currency will find ways to get it.  Business model impact – moderate • New economics create opportunity for people who understand Likenomics to leverage gas. • The cost of accessing social currency will increase, and raise barriers to entry.  Ecosystem value impact – none
  91. 91. © 2011 Altimeter Group 33 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)
  92. 92. © 2011 Altimeter Group Social Search evaluation 34  User experience impact - Moderate • Search becomes more useful, relevant to people.  Business model impact – Moderate • SEO takes on a different dimension, rewards companies with social currency, personalized experiences.  Ecosystem value impact – Moderate • New power brokers are social data/profile players who capture activity data and profiles. • Google has little of either.
  93. 93. © 2011 Altimeter Group  Social monitoring merges with Web analytics • HOT: Omniture, Coremetrics/IBM, Webtrends  Technology like Hadoop makes it easy for companies to tap “Big Data” • E.g. New York Times making its archives public • Twitter archived by Library of Congress • Facebook Cassandra, Amazon Dynamo, Google BigTable  Data visualization tools make it easy to digest  Balancing privacy and personalization 3) Big Data 35
  94. 94. © 2011 Altimeter Group Big Data evaluation 36  User experience impact - Low • Most users won’t directly experience Big Data.  Business model impact – High • New businesses and initiatives can be started at very low cost.  Ecosystem value impact – Moderate • Owners of Big Data repositories can assert control, demand payments for access.
  95. 95. © 2011 Altimeter Group 37 4) Game-ification
  96. 96. © 2011 Altimeter Group TurboTax used “games” to encourage sharing and support 38 Social design can enter training, collaboration, support, hiring
  97. 97. © 2011 Altimeter Group Gamification evaluation 39  User experience impact – High • Experiences get richer, more engaging  Business model impact – Moderate • Work gets done faster, cheaper. • New organizational structures and cultures emerge.  Ecosystem value impact – Low • Service providers will remain focused, boutique firms.
  98. 98. © 2011 Altimeter Group 40 5) Curation
  99. 99. © 2011 Altimeter Group Curation evaluation 41  User experience impact – Moderate • User authority established from better curation, better content is organized well.  Business model impact – Moderate • Easier for businesses to create their content.  Ecosystem value impact – Moderate • Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.
  100. 100. © 2011 Altimeter Group User Experience Business Model Value Networks Likenomics Moderate Moderate Low Social Search Moderate Moderate Moderate Big Data Low High Moderate Enterprise Soc Net High Moderate Moderate Gamification High Moderate Low Curation Moderate Moderate Moderate Summary of disruptions 42
  101. 101. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  102. 102. © 2011 Altimeter Group 44 Thank you 44 Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For more information & to buy the book visit open-leadership.com
  103. 103. Leading The Open Organization 1 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com
  104. 104. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  105. 105. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 3
  106. 106. © 2011 Altimeter Group OUT of CONTROL? © 2011 Altimeter Group
  107. 107. © 2011 Altimeter Group© 2011 Altimeter Group 5
  108. 108. © 2011 Altimeter Group© 2011 Altimeter Group 6
  109. 109. © 2011 Altimeter Group How to give up control © 2011 Altimeter Group but still be in command 7
  110. 110. © 2011 Altimeter Group Open Leadership 8 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals
  111. 111. © 2011 Altimeter Group 10 elements of openness 9 • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Information Sharing • Centralized • Democratic • Consensus • Distributed Decision Making
  112. 112. © 2011 Altimeter Group Explaining strategic decisions 10 Open book management Managing leaks
  113. 113. © 2011 Altimeter Group 11 Updating with every day stuff
  114. 114. © 2011 Altimeter Group Kohl’s has conversations on Facebook 12
  115. 115. © 2011 Altimeter Group Open Mic: When people contribute 13
  116. 116. © 2011 Altimeter Group Crowdsourcing new Walkers flavour 14
  117. 117. © 2011 Altimeter Group Open platforms make it easy to partner and share 15 Open architecture Open data access
  118. 118. © 2011 Altimeter Group 16 Centralized Democratic Consensus Distributed Decision making models
  119. 119. © 2011 Altimeter Group  170 employees  100 modules with “module owners”  One person makes the final decision in each module Social technologies make distributed decision making possible 17 Manage complex tasks Organizing for speed  65,000 employees  16 Councils, 50 Boards make strategic decisions  Joint leadership of each group
  120. 120. © 2011 Altimeter Group Determine how open you need to be with information to meet your goals 18 Openness audit available at http://bit.ly/opennessaudit
  121. 121. © 2011 Altimeter Group Complete the Openness Audit 19
  122. 122. © 2011 Altimeter Group Traits of Open Leaders 20 Authenticity Transparency
  123. 123. © 2011 Altimeter Group Transparency as an imperative 21
  124. 124. © 2011 Altimeter Group How Best Buy became open and social 22
  125. 125. © 2011 Altimeter Group Best Buy’s First Social Media Experts 23 Steve Bendt & Gary Koelling
  126. 126. © 2011 Altimeter Group The Executive Advocate 24 Barry Judge CMO of Best Buy
  127. 127. © 2011 Altimeter Group Barry’s first post 25
  128. 128. © 2011 Altimeter Group The Premier Black Fiasco 26 6.8 million emails sent instead of 1,000 test
  129. 129. © 2011 Altimeter Group Developing Open Leaders © 2010 Altimeter Group
  130. 130. © 2011 Altimeter Group “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2010 Altimeter Group
  131. 131. © 2011 Altimeter Group  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare Agenda 29
  132. 132. © 2011 Altimeter Group #1 Create a Culture of Sharing 30
  133. 133. © 2011 Altimeter Group #2 Discipline is Needed to Succeed Can you add value? Evaluate the purpose Respond in kind & share Thank the person Unhappy Customer? Dedicated Complainer? Comedian Want-to-Be? NegativePositive Yes No Do you want to respond? No Response No Yes Take reasonable action to fix issue and let customer know action taken Are the facts correct? Gently correct the facts No No No Yes Are the facts correct? Does customer need/deserve more info? Yes Explain what is being done to correct the issue. Yes Is the problem being fixed? Yes Let post stand and monitor. No Yes NoYes Yes Assess the message Adapted from US Air Force Comment Policy © 2011 Altimeter Group 31
  134. 134. © 2011 Altimeter Group Five ways companies organize around social media 32
  135. 135. © 2011 Altimeter Group #3 Ask the Right Questions about Value “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group 33
  136. 136. © 2011 Altimeter Group + Value of purchases -Cost of acquisition ____________________ = Customer lifetime value The new lifetime value calculation • Percent that refer • Size of their networks • Percent of referred people who purchase • Value of purchases • Percent that provide support • Frequency and value of the support + Value of new customers from referrals + Value of support + Value of ideas + Value of insights Spreadsheets for all calculations available at open-leadership.com
  137. 137. © 2011 Altimeter Group 35% increase in LTV captured 35 Year 1 Year 2 Year 3 Number of customers 10,000 5,000 3,500 Gross profit of purchases $400,000 $200,000 $140,000 Cost of acquisition $150,000 $25,000 $17,500 Net profit $250,000 $175,000 $122,500 Traditional LTV/customer $74.89 Value of referrals $30,000 $45,906 $45,287 Value of insights $10,000 $5,438 $4,080 Value of support $5,438 $8,156 $6,120 Value of ideas $2,000 $1,000 $1,000 Net profit and value $297,438 $235,500 $178,986 Revised LTV per customer $101.48
  138. 138. © 2011 Altimeter Group Fans Large network Refers Doesn’t refer Small network Refers Doesn’t refer Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 36
  139. 139. © 2011 Altimeter Group No relationships are perfect Google’s mantra: “Fail fast, fail smart” #4 Prepare for Failure © 2011 Altimeter Group 37
  140. 140. © 2011 Altimeter Group© 2011 Altimeter Group 38
  141. 141. © 2011 Altimeter Group Structure your risk-taking and failure systems to create resilience 39 1. Conduct pre- and post-mortems. • E.g. Johnson & Johnson after Motrin Moms. 2. Identify the top 5-10 worst case scenarios. • Develop mitigation and contingency plans. • E.g. Ford’s “lost” Fiesta. 3. Build in responsiveness. • E.g. Best Buy’s Black reward card. 4. Prepare yourself for the personal cost of failure.
  142. 142. © 2011 Altimeter Group  Audit the last few failures you and your organization experienced. • 25% - what happened. • 25% - what you learned. • 50% - what you will do next.  Keep a failure file.  Identify risk-taking training needs.  Build failure into your planning and operating processes.  Create support networks for the inevitable failures. Action plan to prepare for failure 40
  143. 143. © 2011 Altimeter Group It’s about RELATIONSHIPS © 2011 Altimeter Group
  144. 144. © 2011 Altimeter Group AND STILL BE IN COMMAND Give Up Control © 2011 Altimeter Group 42
  145. 145. © 2011 Altimeter Group© 2011 Altimeter Group
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