Understand Your Customers’ Social BehaviorsCharlene LiAltimeter GroupJanuary 20101Jeremiah OwyangAltimeter Group#socialgraphics

Research is the foundation of any strategy –without it, you’re just “fondling the hammer.”This webinar (Part 1) will focus on how to use socialgraphics to create your own Engagement Pyramid.Part 2 will focus on developing a social strategy based on goals, and getting your company ready.A 2-part series2

A company who sells ‘snackums’ is trying to reach moms.Brands would find out who has the biggest number of moms, HGTV, Food Network.Apply traditional demographics, and broadcast marketingYet brands miss out on the specific behaviors of consumers –and their intricate relationships online.The Old Way? Carpet Bombing3

Socialgraphics4DemographicGeographicPsychographicBehavioralSocialgraphic

Where are your customers online?What are your customers’ social behaviors online?What social information or people do your customers rely on?What is your customers’ social influence? Who trusts them?How do your customers use social technologies in the context of your products.Socialgraphics asks key questions5

90-9-1 Principle6“In social groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule where:”

Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity.To be accurate in your social strategy, you must know the specific behaviors of your customer base.This updated framework provides a modern approach to social strategy.An updated framework7

The Engagement Pyramid8CuratingProducingCommentingSharingWatching

Watching9CuratingProducingCommentingSharingWatching

What?:Consume content only, e.g. visit social networking sites, read blogs, watch videos, or listen to podcastsWhy?: Seeking social-created content to help with making decisions, learning from peers, or entertainmentWatching10

Watching11Most people watch videos on YouTube – very few upload.

How to Engage?:First, understand the content that they are currently consuming.Be relevant - what do customers want to read, watch, or hear? Create content that engages Watching, based upon existing habits.Tactics: Engaging Watching12

Sharing13CuratingProducingCommentingSharingWatching

What?: Update status on social sites or Twitter, upload/forward photos, videos, articles, etc.Why?: Want to share the information they have with peers, both to support others, and demonstrate knowledgeSharing14

Sharing15Twitter enables real-time sharing.

Sharing16ShareThis reported a 200% increase in sharing through the ShareThis button in 2009. Overall, sharing is growing.

How to Engage?:Simplify and innovate sharing tools, see “ShareThis.com” and “AddThis.com”Advanced should seek Gigya*, Pluck, Kickapps.Recognition and rewardsAllow Facebook, LinkedIn and Twitter connect featuresTactics: Engaging Sharing17* Disclosure: An Altimeter Group client.

Commenting18CuratingProducingCommentingSharingWatching

What?: Respond to others’ content, for e.g. comment on blogs or news stories, review or rate productsWhy?: Actively participate, support, or contribute ideas/opinions, but usually one-off’s Commenting19

Commenting20Facebook commenting and “Likes” simplified how users responded to other people’s content.

Commenting21Retail sites encourage ratings and reviews by shoppers.

How to Engage?:Allow every webpage to have commenting featuresDevelop a community policyFoster an open and friendly environment (and discourage spammers and trolls)Seek community vendors like Lithium*, Jive, Mzinga, Awareness, LiveWorld*, Kickapps, Pluck.Tactics: Engaging Commenting22* Disclosure: An Altimeter Group client.

Producing23CuratingProducingCommentingSharingWatching

What?: Create and publish their own content, for e.g. websites, blogs, or podcastsWhy?: Want to express identity, own content, be heard, or be recognizedProducing24

Producing25

Producing26

How to Engage?:Become a platform for the voice of your customers.Provide public recognition for most helpful community members.Sponsored Discussions: Intel Insiders, Microsoft MVP, Walmart ElevenmomsNote: Understand and abide by FTC GuidelinesTactics: Engaging Producing27

Curating28CuratingProducingCommentingSharingWatching

What?: Moderate or are heavily involved in online communities, for ex. Wikipedia, fan pages, or discussion boardsWhy?: Invested in success of a product, service, or community, want to give back, or be recognized Curating29

Curating30The Coca-Cola Facebook fan page was started, and continues to be administered, by two regular fans.

Curating31Dell Community Ambassadors help manage and support customer forums.

How to Engage?:Rely on them as trusted advisors, consider them non-paid partnersIdentify influencers or community builders, recognize them in public.Tactics: Engaging Curating32

Read tweets (Watching)Re-tweet (Sharing)@reply (Commenting)Tweet (Sharing/Producing)#hashtag (Curating)The Twitter Problem33

Engagement Pyramid Data34Source: Global Wave Index Wave 1, Trendstream.net, July 2009

Conduct research to identify the social behaviors of your customer base – before you do anythingAlso identify:Where are they online: Surveys or brand monitoringWho do they trust: SurveysWho do they influence: Survey or brand monitoringHow 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 it to work35

1) Where are your customers online?Action: Don’t aimlessly approach social networks without knowing if they are there, if they are in Hyves, go there.2) What are your customers’ social behaviors online?Action: Which social features should we deploy? Example: if they are commenters, allow them to comment.3) What social information or people do your customers rely on?Action: If they rely on their friends, facilitate a marketing program that encourages customers to share with friends.4) What is your customers’ social influence? Who trusts them?Action: If your customers are trusted by others, highlight your customers in front of their community. Example: Intercontintental Hotel features the photos created by top guests.5) How do your customers use social in regards to your brand?Action: Understand how customers use these tools in researching new products, decision making, and supportSocialgraphics makes you actionable36

Situation: A healthy snack food company trying to reach moms, and their goal is to introduce them to a new product called “Snackums”. (fictional)Where are they online today? Use monitoring tools to find hot spots of conversationsUse survey to find specific URL locations through and open ended questionsExample: The data found that a third of the targeted moms visited Facebook at least weekly, and more than half visited at least monthly.Conduct qualitative analysis to find out what topics moms are talking about.Example: Brand monitoring indicated that the most talked about topic when discussing health foods was price and convenience.What are their online social behaviors?They deployed a survey, and found they are mainly watching and sharing, very few producersBut those that are producing are highly involvedNew Way: Learning about Moms37

Findings: Through the survey, found that most moms don’t talk about the product. However a smaller group did influence those that are watchers,Yet those watchers, don’t share in that greater community, they share it with their immediate friends in Facebook.ActionWith this, this company was able to identify, who the influencers were, how to reach them, and to spur on word of mouth to the ‘average’ moms reaching a greater segment of customers. Example: Activating Moms38

Understand the socialgraphics of your customers by conducting surveys or obtaining secondary research.You’ll need to get the data from multiple sources –we don’t have all the data.We believe in ‘Open Research’ and we want to share –so the industry can advance together.Couple with your existing profiles or personas of customers, create an engagement pyramid for each persona.Next, identify what social goals your organization will take on (covered in our next webinar).Summary39

Success in the Groundswell requires Open Leadership40When people get what they need from each otherHave the confidence to let go and still inspire results

Thank you4141Charlene Licharlene@altimetergroup.comblog.altimetergroup.comTwitter: charleneliJeremiah Owyangjeremiah@altimetergroup.comweb-strategist.com/blogTwitter: jowyangFollow the conversation at #socialgraphicsSlides and recording will be available at altimetergroup.com

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 Practice.Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.