Developing a Social StrategyCharlene LiAltimeter GroupFebruary 24, 20101Jeremiah OwyangAltimeter Group#socialstrategy

Research is the foundation of any strategy.Our first webinar (Part 1) of this series focused on how to use socialgraphics to create your own Engagement Pyramid.This webinar (Part 2) will focus on developing a social strategy based on business goals.The next webinar (Part 3) will explain how to get your company ready to execute a social strategy.A 3-part series2

It’s not about the technologies3

Focus on relationships, not technologies4

Social Strategy

Four goals define your strategy, but always start with learn6

Learn with monitoring tools7

Paid services provide monitoring8Other providersBuzzmetricsCymfonyDow Jones Scout LabsTechrigy/AlterianVisible TechnologiesFrom Radian 6

Ethnographic research using Delicious9

Dialog with your community10

11CuratingEngagement Pyramid: Focus on Watching and SharingProducingCommentingSharingWatching

At Southwest, a planner engages12This post received 98 comments over 10 days. In the future, everyone is a marketer.

DellOutlet drives sales with Twitter13

Kohl’s engages directly with customers14

Help your members support each other15

Wells Fargo Supports Customers16Ask Wells Fargo supports customers in real time –while keeping true to their bankers hours tradition. Rather than hide behind a logo, they use real human voices and names, increasing trust

Premier Farnell supports engineers with community, and employees with “OurTube”17

Starwood guests help each other18FlyerTalk has over 20,000 threads on the site, with up to tens of thousands of views each. Starwood guests are visiting the forum and finding answers, while Starwood collects market intelligence.

Microsoft’s MVP Experts Support –and Advocate19Microsoft’s MVP programs nominates helpful customers and professionals once a year. This unpaid army supports other customers –and becomes community advocates* Disclosure: Microsoft is an Altimeter Client, learn more about our disclosure policy at http://www.altimetergroup.com/disclosure

Innovate with customer feedback20

Gauging interest for Bacon Salt21Makers of BaconSalt reached out to fans of bacon on MySpace to gauge interest in their new product. Baconaisse and bacon-flavored sunflower seeds were later created after listening to customer requests.

Fiat gathers product and market intelligence22Contributors submit ideas, and can include pictures and embed videos. Fiat gets valuable ideas for features and design, and marketing and advertising.

P&G used ratings & reviews to improve23

Dell innovates across the organization24Use new listening platforms, identify in-house and external experts, and know and influence key people

What to do first

#1 Start small, start now26At the least, listen to learnPick a goal

Where to start? Align social with strategic goals27Examine your 2010 goalsPick one where social can have an impact

28#2 Understand the valueWhat’s the value of a fan or follower?16,965 followers+4 million fans

+ Value of purchases- Cost of acquisition= Customer lifetime value+ Value of new customers from referrals+ Value of insights+ Value of supportThe new lifetime value calculation, based on your goals 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 ideas

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

Find more fans with large networksEncourage fans to make more referralsMake decisions with metrics30

#3 Prepare for new workflowsSocial technologies will disrupt traditional organization structures

Organize for different types of openness32

#4 Practice Open Leadership33When people get what they need from each otherHave the confidence to let go and still inspire results

34Open LeadershipHaving the confidence and humility to give up the need to be in control, while inspiring commit-ment from people to accomplish goals.

10 elements of openness35

Social + open = competitive advantage36+2,200 Best Buy employees answer questions sent to @twelpforce

Plan to fail well – Wal-Mart case study37

Buyer blog hit the right note38

Build trust and manage risk 39The Sandbox Covenant

Like any relationship, the best ones are best on built on listening and understanding. Pick one goal and master that, then layer on more.When choosing a social strategy goal, align it with your business goals and those of your customers.Benchmark your progress based upon your business goals, not “engagement” data. Change your mindset: letting go will yield more results. Summary40

4141Thank youCharlene Licharlene@altimetergroup.comblog.altimetergroup.comTwitter: charleneliJeremiah Owyangjeremiah@altimetergroup.comweb-strategist.com/blogTwitter: jowyang

42About UsAltimeter Group is a strategy 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.