How the Social Data Revolution Changes the Way Consumers Make Decisions

e-business me-business we-business:How the Social Data Revolution Changes the Way Consumers Make Decisions Digital Day China Shanghai, 22 Nov 2011

Why this revolution?It addresses the 3 deep needs: Approval Belonging Communication

What is the revolution?Irreversible shift inmindset of customersabout who they are,how they relate,how they make decisions

e-business (company focus, Web 1.0)• Website provides controlled information• Website possibly allows for transactions

me-business (user focus, Web 2.0)• Consumer in the center• Self-expression, 晒 (shai, show off)

we-business (community focus, Web 3.0)• Collective intelligence• The social consumer

SocialLocalMobile

USA: Who do Consumers Trust?• Friends: People who like you – Offline – Online• Peers: People like you – Similar background – Similar situation• Experts

Two meanings of “social”1. Social graph Who is connected with whom?2. Social data

Case study: What data for targeting a new phone product?Traditional segmentation Connection data• Demographics • Who called who?• Loyalty

1.35% Adoption rate 4.8x 0.28%Traditional Connectionsegmentation data

Amazon.com Share the Love

Result: Amazing conversion rates since customer chooses Content (the item) Context she ( just bought that item) Connection (she asked Amazon to email her friend) Conversation (information as excuse for communication)

Two meanings of “social”1. Social graph2. Social data Consumer create and share data Knowingly and willingly

Purpose of communication:to transmit information? Or is information just an excuse for communication?

Nike+Customers- engage- connect- 3 times per week on average

Corner / Oversized Rooms: Rooms Ending in: Oversized, Corner Room, Quiet 04 Room Oversized, Corner Room with North 24 Times Square Views (Higher Floors are PreferredRooms to Avoid:Rooms Ending in: 01, 21 Possible Ice Machine / Elevator Noise 08, 17 Limited View Rooms

SocialLocalMobile

Local Absolute: Place, time • Individual: Identity, History • Aggregate: Insights Relative: Distance • To a business: Advertising • Between people: Dating • Between devices: Risk

Location HistoryGoogle Latitude

Social Local Mobile“SoLoMo”

Mobile Context, situation • Sound • Light Customers interact • Tag • Scan

Attention Situation • Clicks, Transactions • Geo-location • Device Intention • SearchUser generated Connection • Reviews • Social graph

Question:What is the biggest change in the last 5, 10 years you have seen?

Social Data Growth is EXPONENTIAL The amount of data a person creates doubles every 1.5 years • after five years  x 10 • after ten years  x 100

Data = Digital Air

In the last Minute…10,000,000 Web searches Ad requests Text messages 1,000,000 Facebook posts 100,000 Product searches Tweets

Fundamental Shift in Communication One-way  Two-way Asynchronous  Synchronous Planning  Interaction List  Flow Private  Public

A. Production: Everybody creates data.B. Distribution: Everybody shares data.C. Consumption: Everybody uses data. •  The study of the consumer has changed •  The consumer has changed

Consumer Decision Making

Marketer-generated Consumer-generatedaware share consider opinion buy use Funnel Megaphone

“Tina Jiang is my go to LV person”

Top 8 Brands (by number of posts)Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Category (by number of posts)Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Topic (number of posts)

Content (by number of posts)

Who Can You Get To Work For You? 100M Customers 100k Employees 100 Specialists

CompanyCustomers

Customer Product Brand

Product Culture Help people make better decisions Make it trivially easy for them to contribute Give people an excuse to connectNote: Products/services that use social data improve over timeTake the test yourself http://socialdatalab.com/intelligence

Data Culture Do not have  Somewhere already Cannot get  Can! User will give Must not use  Embrace it Be secretive  Be transparent Information  Information asymmetry symmetry

Company Culture (“DNA”) 1. Facebook Designed for contribution and distribution 2. Google Take whatever you can get 3. Amazon Customer-centric: Help them make decisions

Ingredients for engagement:AdvertisingBrandingCorporate Communication

Ingredients for engagement:ApprovalBelongingCommunication

Twitter: The Illusion of an Audience?Two Monologues are not a Dialogue!

1993“On the Internet, nobody knows you’re a dog”

2011“On the Internet, everybody knows you’re a dog”

e-business me-business we-business aweigend@stanford.edu +86 138 1818 3800 www.weigend.comDr. Andreas Weigend, Social Data Lab

How the Social Data Revolution Changes the Way Consumers Make Decisions

by Andreas Weigend on Jan 13, 2012

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How the Social Data Revolution Changes the Way Consumers Make Decisions — Presentation Transcript