The Facebook Era
Preparing for a New Kind of Customer
Relationship
“The Facebook Era recognizes
Clara Shih that we’ve come to a place where
Author, The Facebook Era people can represent their real
identity—and use the social filters
CEO, Hearsay Labs on the Web to connect with the
world around them.”
—Sheryl Sandberg
October 15, 2009 Chief Operating Officer, Facebook

Practice what we preach
@clarashih
#EEC09
TheFacebookEra.com

Agenda
Trends and Numbers
New Consumer Psychology
Rethinking Sales and Marketing
Q&A
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The trends and numbers
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Welcome to The Facebook Era
On Facebook alone . . .
Over 300M active users
8 billion minutes spent each day
1 million developers
from 180 countries
is email dead?
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PUBLISH
everybody‐to‐
everybody
many‐to‐many
1‐1 1‐many
CONSUME

Winning mainstream audience appeal
Source: Nielsen Online Global Index, Dec 2008
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Facebook’s growth just keeps going
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CMOs are shifting dollars to social media
CMO Council – March
2009
“ Digital marketing and new
media dominates demand
generation and advertising
spend allocation priorities for
the coming year, with budgets
aimed at online and Web 2.0
initiatives almost 50% higher
than spend earmarked for
traditional media. ”
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Three Pillars of Facebook Marketing
Facebook Apps Facebook Pages Facebook Ads

The new consumer pyschology
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(short video)
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Why Facebook was different
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Facebook as a forum for online identity
Photos and interests
Demographic info
Employer, school, city
Friends
Socially acceptable to share
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Facebook Connect extends trusted identity to
any website
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Example. http://thefacebookera.com
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As a result, user expectations have changed
Due diligence expected
Personalized interactions
Transitive trust
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Facebook and Twitter invented new modes
of communication
Casual
But emotional
Foster weak ties
Capture long tail
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Rethinking Sales & Marketing
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Sales: The Power of Transitive Trust
Qualify leads early
Low‐cost way of staying in touch
Build personal rapport
Navigate buyer orgs
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Sales: Prospecting Friend‐of‐Friend Networks
Example:
Aster Data Systems
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Customer Service: Crowdsource
to Your Customers
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The ultimate opt‐in marketing channels
Example
Dell Outlet moved $2M in inventory over
Twitter last year
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Marketing: The power of hypertargeting
“ Fifty percent of my Minimize wasted ads
advertising is wasted, I
Latent interest
just don’t know which
fifty percent” Test new segments and
messaging
TheFacebookEra.com

Marketing: The power of referrals
Word of mouth
automated
Existing customers = your
sales force
Search.twitter.com
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eMarketer: Endorsements from friends
matter most
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Social Customer Lifetime Value (sCLV)
Social CLV = CLVold
+ Word‐of‐mouth referrals
+ Customer support cost savings
+ Sales resulting from idea contributions
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Thank you
Stay in touch
http://facebook.com/thefacebookera
RELEASED APRIL 2009
Featured in The New York Times
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