Webinar: How to Build a Business Case for Social Marketing January 28 th , 2009 Find more webcast archives & good blog content at http://www.powered.com

Our Panelists Bill Johnston, Chief Community Officer Forum One Networks Rob Harles, Senior Vice President Sears Holdings Kate Niederhoffer, Senior Partner The Dachis Corporation

Bill Johnston, Chief Community Officer Forum One Networks

Making the case for social marketing Bill Johnston Chief Community Officer

Overview Intro: Bill Johnston Community builder since 1999 TechRepublic, Autodesk Forum One Networks Community Strategy Development – think “Ecosystem” Making the case Setting expectations Common Mistakes (and how to avoid)

Intro: Bill Johnston

Community builder since 1999

TechRepublic, Autodesk

Forum One Networks

Community Strategy Development – think “Ecosystem”

Making the case

Setting expectations

Common Mistakes (and how to avoid)

Ecosystem Diagram Corporate Site Mass Social Media (Facebook, You Tube, LinkedIn…) Independent Blogs Blogs Independent Communities Local User Groups Events Meetups Blogs Community Portal Idea Generation Discussion Groups

Making the case Stakeholder’s Attitudes toward value Online Community (Dec 2008):

Stakeholder’s Attitudes toward value Online Community (Dec 2008):

Making the case: Value in 2009 “ We find it’s not a negative change, it’s a positive one. Any way of reaching the market more directly, and cutting out the middle-man, is a bonus in this climate.” “ There is a more intense focus on community and social media as a more cost-effective way to promote and sell products.” “ They're even more committed to supporting and expanding these services as they are much more cost effective , immediate and interactive than other forms of communication.”

“ We find it’s not a negative change, it’s a positive one. Any way of reaching the market more directly, and cutting out the middle-man, is a bonus in this climate.”

“ There is a more intense focus on community and social media as a more cost-effective way to promote and sell products.”

“ They're even more committed to supporting and expanding these services as they are much more cost effective , immediate and interactive than other forms of communication.”

Making the case: tips Cost / Reach / Results compared to other activities Organic traffic vs. paid search Ideas / feedback vs. focus group Blogs vs. static web Members *can* become more loyal / net promoters Direct connection, opportunity for conversation Becoming expected as part of the social business license Cost of not engaging

Cost / Reach / Results compared to other activities

Organic traffic vs. paid search

Ideas / feedback vs. focus group

Blogs vs. static web

Members *can* become more loyal / net promoters

Direct connection, opportunity for conversation

Becoming expected as part of the social business license

Cost of not engaging

Common mistakes Focusing on fiduciary value only Not aligning community goals with Corp / Division goals Thinking quarter / quarter vs. year over year Budget projections 2-3 years out Understaffing Not engaging / no corporate skin in the game Being too risk-averse Not “right-sizing” expectations

Focusing on fiduciary value only

Not aligning community goals with Corp / Division goals

Thinking quarter / quarter vs. year over year

Budget projections 2-3 years out

Understaffing

Not engaging / no corporate skin in the game

Being too risk-averse

Not “right-sizing” expectations

Building and Managing an Online Community Practical Tips and Advice on How to Get Started and What to Watch Out For Rob Harles Senior Vice President

Building and Managing an Online Community

Practical Tips and Advice on How to Get Started and What to Watch Out For

Rob Harles

Senior Vice President

Getting Started – Community 101 Identify the customer value proposition upfront, e.g. Help/answers Connecting with others Access to research/special content Fame/recognition Incentives or rewards

Identify the customer value proposition upfront, e.g.

Help/answers

Connecting with others

Access to research/special content

Fame/recognition

Incentives or rewards

Setting the Vision and Objectives Vision – Infuse the voice of the customer in everything we do Objectives – Define clear objectives Measure, test and learn Build customer engagement Develop better view of customer demand Enhance retention and loyalty

Vision – Infuse the voice of the customer in everything we do

Objectives –

Define clear objectives

Measure, test and learn

Build customer engagement

Develop better view of customer demand

Enhance retention and loyalty

Finding and Engaging the Core Fanatics Regulars Passersby

Lessons and Watch-Outs It’s not just about the technology It is about authenticity – consumers can see through marketing tactics Managing ≠ sanitizing Incentives are not a substitute for a compelling value proposition You don’t own your community, your customers do

It’s not just about the technology

It is about authenticity – consumers can see through marketing tactics

Managing ≠ sanitizing

Incentives are not a substitute for a compelling value proposition

You don’t own your community, your customers do

Importance of Measurement Kate Niederhoffer Dachis Corporation

Acknowledge ambiguity of “good,” “vibrant,” “healthy” Appealing to think there’s a gold standard, but one size does not fit all Think of measurement as a framework for social incentives; a technical infrastructure to articulate a business goal Attention, Authority, Engagement, Virality, Health are Intermediate goals Measuring Communities

Acknowledge ambiguity of “good,” “vibrant,” “healthy”

Appealing to think there’s a gold standard, but one size does not fit all

Think of measurement as a framework for social incentives; a technical infrastructure to articulate a business goal

Attention, Authority, Engagement, Virality, Health are Intermediate goals

Many Goals, Many Metrics Potential Goals : Self- Support for cost-reduction Knowledge Management Customer Insight Customer Acquisition Employee retention Productivity Early Warning system Brand Image Potential Metrics : Well-being - positive sentiment Likelihood of response - answers per question Ideas - number of novel suggestions Activity - Volume of Posts, Number of messages per thread Involvement - Posts per author Popularity - Traffic, page views Stickiness - Time spent in community Backbone: Volume : Number of posts ; Number of individuals talking Sentiment : Attitudes toward product, issue, brand, feature Topics : Factors driving discussion via content analysis Traffic : Number of individuals participating in community; pages viewed Time : Number of minutes spent in community

Potential Goals :

Self- Support for cost-reduction

Knowledge Management

Customer Insight

Customer Acquisition

Employee retention

Productivity

Early Warning system

Brand Image

Potential Metrics :

Well-being - positive sentiment

Likelihood of response - answers per question

Ideas - number of novel suggestions

Activity - Volume of Posts, Number of messages per thread

Involvement - Posts per author

Popularity - Traffic, page views

Stickiness - Time spent in community

Backbone:

Volume : Number of posts ; Number of individuals talking Sentiment : Attitudes toward product, issue, brand, feature Topics : Factors driving discussion via content analysis

Traffic : Number of individuals participating in community; pages viewed

Time : Number of minutes spent in community

Takeaways Think about metrics that tap into social constructs. Explore unconventional angles. Avoid the temptation to measure what’s available because it’s available. Separate measurement from ROI.

Think about metrics that tap into social constructs.

Explore unconventional angles.

Avoid the temptation to measure what’s available because it’s available.

Separate measurement from ROI.

Questions? Bill Johnston, Chief Community Officer Forum One Networks Email: [email_address] Twitter: http://twitter.com/billjohnston Rob Harles, Senior Vice President Sears Holdings Email: [email_address] Kate Niederhoffer, Senior Partner The Dachis Corporation Email: [email_address] Twitter: http://twitter.com/katenieder

Bill Johnston, Chief Community Officer Forum One Networks Email: [email_address]

Twitter: http://twitter.com/billjohnston