HSM Global-Madrid featuring Charlene Li

Creating A Coherent Social Media Strategy
1
Charlene Li
Altimeter Group
2011 April 12
Twitter: @charleneli
Email: charlene@altimetergroup.com

It’s time to move past experiments
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It’s about RELATIONSHIPS
© 2011 Altimeter Group

5
Agenda
Strategy
Lead
Prepare

6
Agenda
Strategy
Lead
Prepare

Strategy Process Stages
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8
Set context
Determine key objectives
Level of strategy (corporate, biz unit, brand)
Identify key metrics
Assess readiness

Align social with key strategic goals
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Examine your 2011 goals
Pick ones where social will have an impact

Objectives differ by level
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Ask the Right Questions about Value
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“We tend to overvalue the things we can measure, and undervalue the things we cannot.”
- John Hayes, CMO of American Express

Use appropriate metrics at each level
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Business metrics: revenue, CSAT, reputation.
Social media analytics: Insights, share of voice, resonance, WOM.
Engagement metrics: fans, followers, clicks.

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
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Communication
Mindset
Roles
Stakeholders
Monitoring
Reporting
Customer Profile
Market Analysis
Processes
Organizational Model
Education

Benchmarking Social Readiness (Before)
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December 2009

Benchmarking Social Readiness (After)
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April 2010

Strategy Process Stages - Discovery
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Collect and prioritize strategic options
Metrics-based value assessment
Prioritize against objectives

Evaluate each initiative
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Define Your Strategy With Objectives
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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

Why care about social technologies?
62% read user ratings/reviews for business products/services
62% visit company profiles on social media sites
55% visit company blogs
51% participate in online business communities or forums
49% ask questions on Q&A sites
29% use Twitter to find or request business-related information
Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393)
20

People in B2B use social media for work
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Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393)

22
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

Track brand mentions with basic tools
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What would happen if every employee could learn from customers?

Integrate monitoring with workflow
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Other providers
Alterian
BrandsEye
Buzzmetrics Cymfony
Sysmos
Visible Tech.
From Radian 6, to be acquired by Salesforce.com

Be sure to track the actual conversations, not just the tweets
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@JaimieH is a top diabetics advisor who was talking with an insulin pump maker

How KLM listened and surprised flyers
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Go beyond basic monitoring to analytics
27
Make course corrections nearly real-time.
Use predictive analytics to anticipate demand.

Shoppers want to be “known”
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I walk into the store
Store knows it’s me
Give me offers
And plans my visit

Community insight platforms
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Communispace and Passenger offer online focus groups solutions.

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
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Learn also from your employees

Go beyond traditional data to understand your customers
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Demographic
Geographic
Psychographic
Behavioral
Socialgraphic

Where are your customers online?
What social information or people do your customers rely on?
What is your customers’ social influence? Who trusts them?
What are your customers’ social behaviors online?
How do your customers use social technologies in the context of your products.
Socialgraphics asks key questions
33

Engagement Pyramid
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Engagement Pyramid - Watching
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Watch videos
Read blog posts
Listen to podcasts
Read tweets
Read discussion forum posts

Engagement Pyramid - Sharing
36
Share a link
Share photos
Share videos
Write a status update
Retweet

Engagement Pyramid - Commenting
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Comment on a blog
Write a review
Rate a product
Participate in a discussion forum
@Reply on Twitter

Engagement Pyramid - Producing
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Write a blog
Create videos or podcasts
Tweet for an audience

Engagement Pyramid - Curating
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Moderate a wiki or discussion forum
Curate a Facebook fan page

Engagement Pyramid Data
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Source: Global Wave Index Wave 2, Trendstream.net, January 2010

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
41

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
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43
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

Conversations, not messages
Human, not corporate
Continuous, not episodic
The New Normal
44

Blogs establish thought leadership
45
CEO Richard Edelman has been blogging consistently since Setpember 2004.

SonyEurope rewards Twitter followers with discount that drives significant sales
46
SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000 Twitter follower lead to over €1m worth of product ordered.

VW inserted a tweet analyzing tool into their banner ad to suggest a specific model
47

Spain Tourism used multiple channels to encourage dialog/sharing
48

Kohl’s engages directly with customers
49

B2B can also use Facebook
50
Develop relationships with job candidates, prospects, and current employees
Insert your content into newsfeed of fans
B2B is really people to people

Encourage commenting to get into the Facebook news feed
51

Premier Farnell supports engineers with community, and employees with “OurTube”
52

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
53

Tivo joined an existing community
54

55
Advocacy – A five-phase approach

Tesco engages influencer blogs
56
Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.

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
57

Support and Innovate With Your Customers
59
Charlene Li
Altimeter Group
2011 April 12

61
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

Vodafone UK uses Twitter to proactively communicate with customers
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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.

Ritz-Carlton managers monitor Twitter for real-time service
63
Property manager helped unhappy honeymooners

Support during a crisis
64
Used #euva and #ashtag to track conversations
Source: simplifying.com

DellOutlet supports sales with Twitter
65

Question & Answer sites provide opportunity for support

Q&A encourages dialog too
67

iRobot ties discussion boards into customers support
68
iRobot escalates unanswered questions into support centers

Salesforce.com Service Cloud ties social channels back to customer data
69

Solarwinds’ community is strategic
70

Retailer Best Buy has 2,500 employees providing support via Twitter
71

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
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73
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

P&G uses reviews to improve products
74

Danish bank ask for help to improve mobile banking on Facebook
75

Finnish post created an idea exchange
76

Fiat invites ideas for a new car
77

Archer collects product development ideas in a private community
78

Starbucks involves 50 people around the organization in innovation
Over 100 ideas have been implemented

Dell taps employee ideas too

P&G goes outside for innovation
81
P&G made outside-in innovation a priority

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
82

ModCloth has customers merchandise new products
83

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
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Strategy statement
What you will do
What you won’t do
Scenarios development
Implementation roadblocks
Company and leadership implications
Risk identification
Build resilience

What’s the Next Big Thing?
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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?

“How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.”
1) Likenomics (credit to Rohit Bhargava)
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Understand the supply, demand, and thus, value of Likes as social currency
See http://bit.ly/rohit-likenomics for Rohit’s take

Likenomics evaluation
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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

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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)

Social Search evaluation
92
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.

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
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Big Data evaluation
94
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.
Owners of Big Data repositories can assert control, demand payments for access.

95
4) Game-ification

TurboTax used “games” to encourage sharing and support
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Social design can enter training, collaboration, support, hiring

Gamification evaluation
97
User experience impact – High
Experiences get richer, more engaging
Work gets done faster, cheaper.
New organizational structures and cultures emerge.
Ecosystem value impact – Low
Service providers will remain focused, boutique firms.

98
5) Curation

Curation evaluation
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User experience impact – Moderate
User authority established from better curation, better content is organized well.
Easier for businesses to create their content.
Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

Summary of disruptions
100

Leading The Open Organization
102
Charlene Li
Altimeter Group
2011 April 12

104
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

OUT ofCONTROL?

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107

108
How to give up control
but still be in command

Open Leadership
109
Having the confidence and humility to give up the need to be in control,
while inspiring commitment from people to accomplish goals

10 elements of openness
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Explaining strategic decisions
111
Open book management
Managing leaks

112
Updating with every day stuff

Kohl’s has conversations on Facebook
113

Open Mic: When people contribute
114

Crowdsourcing new Walkers flavour
115

Open platforms make it easy to partner and share
116
Open architecture
Open data access

117
Centralized
Democratic
Distributed
Consensus
Decision making models

170 employees
100 modules with “module owners”
One person makes the final decision in each module
Social technologies make distributed decision making possible
118
Manage complex tasks
Organizing for speed
65,000 employees
16 Councils, 50 Boards make strategic decisions
Joint leadership of each group

Determine how open you need to be with information to meet your goals
119
Openness audit available at http://bit.ly/opennessaudit

Complete the Openness Audit
120

Traits of Open Leaders
121
Authenticity
Transparency

Transparency as an imperative
122

How Best Buy became open and social
123

Best Buy’s First Social Media Experts
124
Steve Bendt & Gary Koelling

The Executive Advocate
125
Barry Judge CMO of Best Buy

Barry’s first post
126

The Premier Black Fiasco
127
6.8 million emails sent instead of 1,000 test

Developing Open Leaders

“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

130
Agenda
Strategy
Learn
Dialog
Support
Innovate
Lead
Prepare

#1 Create a Culture of Sharing
131

#2 Discipline is Needed to Succeed
132
Take reasonable action to fix issue and let customer know action taken
Negative
Positive
Yes
Yes
No
Assess the message
Evaluate the purpose
Do you want to respond?
Does customer need/deserve more info?
Unhappy Customer?
No Response
Yes
Are the facts correct?
Gently correct the facts
Yes
No
No
No
Can you add value?
DedicatedComplainer?
Are the facts correct?
Yes
Yes
No
No
Yes
Respond in kind & share
Thank the person
Comedian Want-to-Be?
Explain what is being done to correct the issue.
Is the problem being fixed?
Yes
No
Yes
Adapted from US Air Force Comment Policy
Let post stand and monitor.

Five ways companies organize around social media
133

#3 Ask the Right Questions about Value
134
“We tend to overvalue the things we can measure, and undervalue the things we cannot.”
- John Hayes, CMO of American Express

The new lifetime value calculation
Percent that refer
Size of their networks
Percent of referred people who purchase
Value of purchases
+ Value of purchases
Cost of acquisition
____________________
= Customer lifetime value
+ Value of new customers from referrals
+ Value of insights
Percent that provide support
Frequency and value of the support
+ Value of support
+ Value of ideas
Spreadsheets for all calculations available at open-leadership.com

35% increase in LTV captured
136

Find more fans with large networks
Encourage fans to make more referrals
Make decisions with metrics
137

No relationships are perfect
Google’s mantra:“Fail fast, fail smart”
#4 Prepare for Failure
138

139
Create
Sandbox
Covenants

Structure your risk-taking and failure systems to create resilience
140
Conduct pre- and post-mortems.
E.g. Johnson & Johnson after Motrin Moms.
Identify the top 5-10 worst case scenarios.
Develop mitigation and contingency plans.
E.g. Ford’s “lost” Fiesta.
Build in responsiveness.
E.g. Best Buy’s Black reward card.
Prepare yourself for the personal cost of failure.

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
141

143
Give Up Control
AND STILL BE IN COMMAND

Charlene Li
charlene@altimetergroup.com
charleneli.com/blog
Twitter: charleneli
For slides, send an email to slides@altimetergroup.com
For more information & to buy the book
visit open-leadership.com

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HSM Global-Madrid featuring Charlene Li

by Charlene Li on Apr 14, 2011

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HSM Global-Madrid featuring Charlene Li — Presentation Transcript