Understanding And Capitalizing On The Groundswell Charlene Li Altimeter Group May 14, 2009 If you would like a copy of the slides, please leave a business card with me.

Is this what social media is about? Source: Wordle.net

It’s about the relationship

What kind of relationship do you want? Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal Focus on relationships, not technologies

But it’s hard to form relationships

What you need is a strategy What will you do? What won’t you do?

Link digital goals to corporate strategy

Goals define your strategy

Learn with monitoring tools

How Oracle encouraged feedback

Build dialog with the Engagement Pyramid Base: Global active Internet users (uses the Internet every day/every other day Note: Percent of active Internet users that do this at least weekly Source: Universal McCann Social Media Tracker Wave 3, March 2008 *Source: Lithium Technologies, May 2009 Edit a wiki Moderate a forum Write in a blog – 21% Upload a video – 18% Rate a product or service Comment on a blog post Write in a discussion forum – 47% of users* Share online video – 37% Update profile – 35% Upload photos – 23% Watch online video – 59% Read blogs – 48% Download podcasts – 23%

Edit a wiki

Moderate a forum

Write in a blog – 21%

Upload a video – 18%

Rate a product or service

Comment on a blog post

Write in a discussion forum – 47% of users*

Share online video – 37%

Update profile – 35%

Upload photos – 23%

Watch online video – 59%

Read blogs – 48%

Download podcasts – 23%

Let’s talk about taxes For H&R Block, it’s a conversation, not a campaign

Dialog with Frank Eliason, Comcast

Dawn supports with reviews

Starbucks innovates across the organization

Getting started

#1 Get the right people on the bus

Find your revolutionaries Lionel Menchaca Dell Ed Terpening Wells Fargo Paula Drum H&R Block

Have a plan to deal with different social media mindsets Find the “moments of faith” and “moments of crisis” for each mindset

#2 Measure the right things Your goals determine your metrics Use the same metrics as your marketing goals

Example “micro” metrics

Higher order metrics to consider How likely are you to recommend this to someone you know? Net Promoter Score Lifetime revenue Cost of acquisition Cost of retention Customer referral value (CRV) Lifetime Value

#3 Get the right help See a list at wiki.altimetergroup.com

How to find good help Focuses on relationships, not campaigns. Uses social media successfully themselves. Commits resources to learning and training. Has learned from their mistakes. Respects and is humbled by the medium.

Focuses on relationships, not campaigns.

Uses social media successfully themselves.

Commits resources to learning and training.

Has learned from their mistakes.

Respects and is humbled by the medium.

#4 Start small Experiment Listen first

Convincing your curmudgeon “ It’s a fad and waste of time.” - Make it real. “ There’s no ROI.” - Tie it to goals. “ It’s way too risky.” - Develop worst case scenarios.

#5 Embrace failure Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. Prepare everyone for the inevitable failures.

Wal-mart failed many, many times

Buyer blog hit the right note

Photo: Kantor, http://www.flickr.com/photos/kantor

An essential tool to have

Thank You Charlene Li Altimeter Group [email_address] blog.altimetergroup.com Twitter: @charleneli To get a copy of slides, please leave your business card Copyright © 2009 Altimeter Group