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Social Business Journal v02

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The quarterly journal of social business thought leadership, published by Dachis Group.

The quarterly journal of social business thought leadership, published by Dachis Group.

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    Social Business Journal v02 Social Business Journal v02 Document Transcript

    • THE SOCIAL BUSINESS JOURNAL THE A-TEAM. ISSUE 02 · Q1 2013 IT’s the advocacy era — and ADVOCATES ARE THE SUPERHEROEs PLUS: CREATE AN advocacy PROGRAM in tHE FAST-PACED WORLD OF Performance Brand Marketing P10 IN 7 steps P13
    • 2 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 3THE ADVOCATES ARE BETTERSOCIAL + CONTACT US MARKETERS THAN YOU.BUSINESS DACHIS GROUP And Dachis Group’s Advocate Insight identifies and ranks a brand’s advocates 515 Congress Avenue based on their affinity to and interaction with specific social accounts of the brand. Suite 2420 Austin, Texas 78701JOURNAL USA AMERICAS: +1 512 275 7825 EUROPE: +44 0 20 7357 7358 www.dachisgroup.com sbj@dachisgroup.com+ DEPARTMENTS + ISSUE 02 · Q1 2013 PUBLISHER CONTRIBUTORS 4 BY DAVE GRAY Jeffrey Dachis Adam Clark Estes EDITORS NOTE EDITOR IN CHIEF Dave Gray Claire Gaul Jacob Heberlie Peter Kim Social is about authentic engagement, promising unprecedented access 6 to customers (900M Facebook users) and insights (350M tweets/day). THE BEST OF OUR BLOG Brian Kotlyar THE COLLABORATORY MANAGING EDITOR Lara Hendrickson Olga Kozanecka Kelly Kriegshauser James Macanufo But how do you reach your audience with just a handful of community managers? 8 THE SOCIAL BUSINESS INDEX CREATIVE DIRECTOR W. Scott Matthews ON THE MOVE IN SBI Bill Keaggy Ted May Rachel Meyerson To scale social engagement, smart brands are mobilizing advocates, partners, 30 SENIOR ILLUSTRATOR Lauren Picarello UNDERSTAND YOUR AUDIENCE WITH EMPATHY MAPS Chris Roettger Ray Renteria and employees to engage with their audience and spread their message. VIsual THINKING SCHOOL PROJECT MANAGER Carly Roye Susan Scrupski 35 BY SUSAN SCRUPSKI Krystal Spitz Allison Squires SOCial BIZ INSIDER Rick Vlaha 90 to be the % of internetmost credible form of advertising. PRINT MANAGER David Vordtriede Lisa Vorst Jeff Wilson users consider consumer recommendations [Emarketer, 2011] PRINTER COVER ILLUSTRATION+ FEATURES Stolze Printing David Vordtriede 67 an online % of shopperscommunity of friends. recommendations from spend more online after St. Louis, Missouri, USA 10 BY Brian Kotlyar, Rachel Meyerson, & Lauren Picarello THE ADVOCACY A TEAM ISSN 2166-3742 [Gannett and The Etailing Group, 2009 ] 14 ISSUE HASHTAG #SBJ02 ADVOCATE INSIGHT ADVOCACY AT VODAFONE UK: olga kozanecka interviews... JAKub Hrabovsky + ABOUT DG & SBJ 18 a book excerpt BY DION HINCHCLIFFE & PETER KIM Dachis Group helps improve your brand perfor- ADVOCACY & SOCIAL CRM mance by measuring and managing your social engagement via a powerful suite of SaaS tools Advocates are a more scalable — and more trusted — source for spreading and services. The Social Business Journal is a your story to the market. It all comes down to trust and money. 22 a timeline by carly roye, bill keaggy, & chris roettger free quarterly publication by Dachis Group. No milestones in social biz part of this publication can be reproduced, stored in a retrieval system or transmitted in any form or To learn more, sign up for a 1:1 tour at dachisgroup.com/tour by any means (electronic, photocopy, etc.), except 24 a book excerpt BY DAVE GRAY as permitted by the 1976 U.S. Copyright Act, THE CONNECTED customer without permission of the publisher. Requests can be submitted at sbj@dachisgroup.com. Any comments? Questions? Suggestions? Visit 32 DATA VISUALIZATION by jacob heberlie dach.is/02-sbj to let us know what you think. DISNEYs TWITTERVERSE Copyright 2012 by Dachis Corporation. All rights reserved.
    • 4 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 5 For global brands, social brings both the promise of CONNECTING WITH MILLIONS OF CUSTOMERS. + EDITOR’S NOTE: DAVE GRAY Welcome to the advocacy era Social Business makes engagement a necessity I n this quarter’s issue we focus on advocates — the genuine fans who spread positive word of mouth for by earning the energy and loyalty of advocates, both inside and outside their organizations. True advocates and the challenge of how to SCALE YOUR ENGAGEMENT your brand. cannot be bought. Their energy and As customers adopt social network loyalty must be earned. In this issue technologies, word of mouth has in- of The Social Business Journal, we AND MEASURE BUSINESS IMPACT. creased in importance to the point that highlight some stories, strategies, today, customers can make or break and tactics* that will help you create a brand by spreading their satisfac- strong social advocacy programs for tion, delight or dismay to thousands your brand. of people instantaneously. With digital They expect you to respond quickly Enjoy the issue — your feedback is publishing and search engine index- to their opinions, messages, and encouraged and appreciated. n ing, one consumer opinion may rapidly complaints. Unfortunately, most Best, reach over two billion people online. brands are woefully understaffed Today, brand marketers truly have and under-budgeted to engage at no choice — customers increasingly scale successfully. But some brands expect you to be in social channels. have succeeded, and even excelled, Dave Gray | @davegray“ Customers increasingly expect you to be in social channels. They expect you to respond quickly to Faced with a limited staff, many brands are turning to their their opinions, messages, and complaints.” constituents — including advocates, employees, and partners — to scale their engagement across customers, fans, and followers. * THE ADVOCACY ISSUE: WHAT ’S INSIDE EMPLOYEE INSIGHT is a subscription software service that helps you mobilize and measure your comapany’s staff to spread your message across social channels and measure brand impact. To learn more, sign up for a 1:1 tour at socialbusinessindex.com/employeeinsight STORIES | Imagine what you’d do if your STRATEGIES | Jakub Hrabovsky talks about TACTICS | Dion Hinchcliffe & Peter Kim Facebook wall gets overrun with negative completely changing social strategy, from mar- explain the four minimum capabilities a comments. Got advocates? PAGE 10 keting messages to true engagement. PAGE 14 social CRM solution should have. PAGE 18
    • 6 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 7+ B L O G R O U N D U P : D A C H I S G R O U P. C O M / B L O GThe best of the CollaboratoryEDITED BY CARLY ROYE & LARA HENDRICKSONILLUSTRATIONS by CHRIS ROETTGERAccelerate using Be curious, Five keys to great European diversity Building successful SAP’s slow startemployee advocates not furious employee advocacy makes social difficult advocacy programs in social By Dion Hinchcliffe By Peter Kim By Brian Kotlyar By Olga Kozanecka By Kate Rush Sheehy By Susan Scrupski EVP Strategy Former CSO Senior Strategist Consultant Former Strategist Founder, SBC Washington D.C. Austin Austin London Austin Austin @dhinchcliffe @peterkim @bkotlyar @olga_nk @katerushsheehy @ITSinsiderO ne of the most under appreciated components of social business is P ublic forums are open doors for de- tractors. Whether online or offline, C onsumers don’t trust companies — they trust other consumers. Brands around the world are realizing If European consumers are among the world’s most connected, why are their brands known for being so so- I t’s no news that creating a major advocacy program takes plenty of F or the past five years, there has been a reoccurring theme of SAPactually your most accessible re- there will always be individuals who time and money, but could that be giving social the cold shoulder. We’resource for achieving social success. try to build themselves up by belittling that customer advocates are essential cially clueless? DG London Consultant the understatement of the year? DG starting to see them embrace theEmployee advocacy happens when others, and the Internet is their favor- in turning prospects into buyers, but Olga Kozanecka explores the reasons Managing Strategist Kate Rush Sheehy principles of social business, buta business carefully cultivates their ite playground. From bloggers looking could their most valuable advocates why most European brands are falling recently attended a crash course for could they be doing it all wrong? Foremployees, and turns them into effec- to get hired after publicly insulting a be right in the mirror? Employee short of engaging their socially savvy marketers hosted by WordOfMouth.org, starters, SAP has chosen to begintive, empowered participants. Having brand’s social media campaign, to advocates are the untapped support customers, and how one company is where she learned just how much time their social journey with two sub-para small group of social managers to online fans who turn against a com- system that companies are missing out doing it right. Because these brands and money it can take. Brands tend to social platforms that have seen littleengage, interact, and help millions pany that won’t hire them, there is on. Not only are employees experts haven’t invested the time or resources get discouraged when time passes and traction in large enterprises. Social isof customers just isn’t feasible, and no shortage of virtual jerks. Peter Kim on the company’s products, but they into social, they haven’t found a way they don’t see immediate results, but about reinventing the way we work,automated engagement tools practi- has seen it all and offers his advise for represent a trustworthy relationship to capture the linguistic and cultural some of the most successful ambas- and until SAP grasps that, they willcally kill all previous efforts. Not only dealing with the noise: don’t get furi- between employer and company to the differences of Europe’s diverse geog- sador programs have taken years to ac- never capture the human potential ofare your employees experts on your ous, get curious. rest of the world. DG Senior Strategist raphy. Only when you blend central complish, not to mention huge chunks social media.business, but they are also a plentiful Brian Kotlyar explores five key factors and local efforts can brands capture of marketing budgets. Don’t give up! Aresource made up of people who have to successfully running an employee an audience as connected and social successful advocacy program is alwaysvested interest in seeing your com- advocacy program, and determining as Europe’s. worth the hard work.pany succeed. whether or not your company is ready.Read the entire blog post at dach.is/QPr24S Read the entire blog post at dach.is/QPrjoe Read the entire blog post at dach.is/QPqT16 Read the entire blog post at dach.is/QPqBr4 Read the entire blog post at dach.is/QPrGPG Read the entire blog post at dach.is/QPrpwh
    • 8 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 9+ SOCIALBUSINESSINDEX.COM: A SNAPSHOT OF MOVERSSocial successes on SBIBY ALLISON SQUIRES & ADAM CLARK ESTESGRAPHICS by RICK VLAHA & JEFF WILSON + W H AT W E ’ R E R E A D I N G : BOOKS & BLOGS Good to Great: WhyAs the world becomes an increasingly noisy space, brands continue to look for Picarello. One post featuring colored Starbucks Some Companies dresses earned 10,000 likes and over Make the Leap...ways to scale their social engagement and measure performance. The Social 300 comments, in part thanks to the and Others Don’tBusiness Index, a free site run by Dachis Group, has quickly become an industry brands expanding global presence. Pi- By Jim Collins carello added, “We expect to see Foreverbenchmark for Social Business performance, measuring and ranking the social 21 continue gaining traction in the sum- Cynthia Pflaum (@cpflaum) Strategist, New York conversations across 30,000 companies and 100 million social accounts. mer months across social platforms as the engaging content stream continues its shift from colored denim to colored A HologramE ach week, The Atlantic Wire and Da- chis Group take a look at who’s makinga move in social, how they’re engaging WWE videos and retweets of WWE wrestlers’ content — and updates its Facebook page at least half a dozen times a day. The bikinis.” Did you know that the Frappuccino Facebook page has 9.3 million fans? for the King By Dave Eggersand why it matters. This article showcases frequency and well balanced variety end It’s true, and they’re active. Starbucks Zoë Scharf (@zoescharf)a few brands highlighted in the weekly up giving voracious fans just the excite- broke back into the top 10 this week Designer, St. Louis“Top 20 in Social Media” series, which ment they crave. Wendy’s thanks to a well executed Frappuccinocan be found at dach.is/PpuHM7. promotion and a community service Over the past few months, we saw campaign. For the former, Starbucksbrands swing up and down on the Social invited its customers to post Twitter and “I frequent ThedailyBusiness Index. From riding the coattails Instagram images of their favorite frozen wh.at & adweek.com/of the Instagram announcement to the Remember wrestling? The fake sport Forever 21 coffee treat during a weeklong Frappuc- adfreak for industryexcitement of a brand announcing new company WWE (formerly WWF) that cino Half Price Happy Hour promotion, and cultural news.”products or events, spring brought some hit its peak popularity in the 1990s is and those that added the hashtag #frap- Nate Custard (@natecustard)interesting shifts in the social sphere. surging in social media in April thanks to puccinohappyhour had the chance to Associate Creative Director, A few common takeaways from brands innovative uses of the theatrical elements This was the week of Instagram and Lincoln win prizes. There was also the chancemaking big moves: that make wrestling entertaining in the Wendy’s managed to get a boost in to create your own Frappuccino mixes1. A diligent and effective social media first place. WWE jumped 16 spots on the the rankings thanks to a single photo. The Art of the Start online and share them with friends. team that responds quickly and con- Social Business Index and entered the top Zooming up 14 ranks to No. 103, the By Guy Kawasaki “Starbucks takes deliberate measures to sistently shows fans they can reach ten. “The lift was catalyzed by two televi- fast food chain simply put an Insta- create social components for many Joe Pinaire (@joeknowsjoe) the brand via social sion events (Wrestlemania and Monday Forever 21 is creeping towards the top gram photo of fries dunked in a Frosty investments in their marketing portfolio, Associate, Austin2. Providing fans with interesting and Night Raw), but what really caused the 100 having boosted itself 22 spots on Facebook, and fans responded in a lesson all companies should learn,” relevant content inspires influencers to rankings shift was the interplay of current in the ranks this week landing at No. droves. Nearly 7,000 of them in fact. says David Mastronardi of Dachis syndicate content to their friends and past wrestling legends on the screen 136. Believe it or not, it was all about What really helped is posting the photo on Wendy’s subsidiary Frosty page for Group. In addition to Starbucks3. Leveraging multi-media content related combined with an online content blitz,” the weather for the fast-fashion retailer. its two million fans to see. It wasn’t so employees launching local projects, the to a current event engages and excites said Dachis Group strategist Brian Kotlyar. Rather than simply adding updates to Vote Give Grow program used online The Age of Spiritual a brand’s audience And blitz is a perfect word to use, as Facebook, Forever 21 takes it a step much that the picture was pretty, Dachis ballots to help give out $4 million in Machines: When4. Adding a social component to a brand WWE didn’t necessarily do anything par- further and provides its fans with useful analyst Allison Squires explained: “Both Computers Exceed ticularly innovative in order to build buzz content like fashion tips and notices the Wendy’s and the Frosty Facebook funding to 124 non-profits. Because campaign greatly amplifies marketing Human Intelligence around their events. Their social media about sales. “Whether it’s colored denim pages appealed to their audience the ballots were shareable, the program efforts in the online space By Ray Kurzweil team was just plain diligent and efficient. or colored hair chalk, fashion followers through this picture by sparking a play- drummed up some good chatter acrossThe following excerpts were written by Jed Singer (@jedsinger) The company tweets roughly once an have a lot to dive into on Forever 21’s fully delicious debate.” But seriously social media platforms. And all for aAdam Clark Estes (@adamclarkestes) at Engagement Manager, hour — a mix of links back to photos and Facebook page,” says Dachis’s Lauren have you ever tried it? good cause! nThe Atlantic Wire. Philadelphia n
    • 10 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 11 THE A-TEAM. IT’s the advocacy era — and ADVOCATES ARE the SUPERHEROEs in tHE FAST-PACED WORLD OF Performance Brand Marketing. BY Brian Kotlyar, Rachel Meyerson, & Lauren Picarello ILLUSTRATIONS BY DAVID VORDTRIEDE Imagine this scenario: It’s 8:00 a.m. on January 12, 2012 and the half dozen social media staff members at a company called Triple T Teas wake up to find the brand’s Facebook page overrun with negative comments. The usual positive conversation has been replaced by curiosity and outrage. Fans are engaged in a back and forth debate — are Triple T Teas unhealthy? While some are questioning the basic ingre- dients of Triple T Teas, many more are watching from the sidelines. How does a staff of six begin to systematically address this public relations issue taking root on a social platform in front of such an enormous audience?
    • 12 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 13risks and opportunities what is advocacy? nutrition debaters ensue. Triple T Teas to business as usual in a matter of hours.in a social age Credibility of CEOs and government officials plummet while For brands, advocacy is the activation follows a steady drumbeat of carefully Companies that have endured far worseMany companies, like Triple T Teas,have embraced social media as a place to peers and regular employees see dramatic rise of people who are, or could be, pas- written broadcast communications and crises in recent months — Chapstick, sionate enough to engage on behalf of feeds a steady diet of trustworthy, ac- Goldman Sachs and JP Morgan Chase tointeract with customers, prospects and the brand and ultimately expand the curate talking points and insider updates name a few — could stand to learn a thinginterested bystanders in novel ways. Over customer base. to its advocacy community. or two from Triple T Teas’ tactics.eight million brands have established Advocacy goes beyond the idea of The result? A rapid decline in crisis con- How can other organizations leveragepages on Facebook alone. With such influencer outreach and beyond even versation and a calm exit from crisis mode advocacy to obtain similar results?unprecedented access, however, come word of mouth as a driver of commercialchallenges. How can an organization transactions. Advocacy in the age of socialauthentically engage with such a largeaudience? What happens when internal media encompasses the full gamut of HERE’S HOW — AN ILLUSTRATED GUIDE ON HOW TO UTILIZE advocacy in 7 steps: potential positive outcomes that could bebusiness process breaks down? Or a crisis driven by a passionate and empoweredoccurs? The rules are changing and large individual. These outcomes range fromorganizations must change with them. word of mouth referrals, new product ideas, to crisis management and most DEFINE OBJECTIVES > identify > Recruit > ACTIVATE > amplify > MEASURE > learn & OPTIMIZEwhy we need advocates importantly — brand building. 10:00 a.m. Triple T Teas’ marketing decision mak-ers hold an emergency meeting. What what advocates do For some, advocacy is very narrowly W ith social business, we now have the ability to see the true value of ad- vocacy and to use it as a lever to drive performance. At Dachis Group, we’ve broken down advocacy programs into a seven stage maturity curveis happening on the Facebook page and defined as a source of referrals, a way to that enables us to quickly implement advocacy programs and prove businessmost importantly, what do we do about it? distribute samples, or a source of product outcomes at large organizations.The typical social media PR playbook is recommendations. Each of these is The creation of an advocacy program is a seven step process: define objec-quickly activated with a variety of tactics measured for its direct ability to influ- tives, identify, recruit, activate, amplify, measure and learn and optimize.employed, ranging from a press release ence sales. This is the wrong way to lookand influencer outreach tactics to direct at advocacy. Others include research associal media communications. a potential value of advocacy. Companies 1. define objectives In identifying advocates, we recom- However, there is an underlying is- mend that organizations cast a broad net like Communispace and Drillteam pio-sue with all of these tactics — scale. If and consider every possible advocate that neered the use of large communities ofa small team of community managers could be beneficial to the organization. The Edelman 2012 Trust Barometer report shows huge changes in spokesperson credibility in just users as a viable platform for product andattempts to engage with thousands of Given the myriad forms advocacy can the last year. SOURCE: EDELMAN DIGITAL · DATA ©EDELMAN DIGITAL · CHART BY TED MAY marketing research at large brands.outraged individuals, their efforts are take, it rarely makes sense to limit the A new era of advocacy has begun.quickly overwhelmed. Realizing this, scope of the search at the start. None of the previous roles of advocatesTriple T Teas turns to their community frightening trend for large organizations people are turning to their peers for It is also important to remember that have been discarded. Sampling stillof advocates known as the Triple T Teas — consumers no longer view traditional trusted information. A “person like me” advocates don’t exist solely outside the matters. Referral programs still matter.Ambassadors. Identified and recruited sources of information as trustworthy. saw the biggest increase in credibility walls of the organization. The rise in Research communities remain critical.by Triple T Teas for their passion and Edelman Digital, an agency specializing since 2004 in the most recent study. credibility of regular employees is one of Nonetheless, the era of advocates asloyalty for the brand, this group of in public relations, has conducted a trust A similar rise in credibility was found Advocacy programs often suffer from a the single most important findings from brand builders and reputation manag-individuals holds the key to an authentic study every year for the past 12 years, among regular company employees, lack of clear objectives at the outset and the 2012 Trust Barometer study. Employ- ers has arrived. As individuals live theirand scalable response to the crisis. Each and it is now clear that the world has now featured as fourth on the Trust a lack of solid measurement throughout ees can create influence online with cred- lives online — sharing content, likingAmbassador is briefed and empowered passed an inflection point in the nature Barometer list. their lifecycle. Setting clear brand and ible expertise, and a direct relationship to brands, or listening to music — they areto spread accurate, credible messages to of trusted communications. Trusted communications also impact business outcomes that frame what the brand. Dell, for instance, has enabled also engaging in the endorsement andthe wider community. According to the 2012 Edelman business results. E-Tailing Group precisely the program is expected to thousands of employee advocates to help co-creation of brands. This is both an op- Advocates are critical to the modern Trust Barometer, international attitudes recently noted that six percent of online influence will do two critical things: first, engage with consumers, build trust, and portunity and a threat for most brands.organization’s marketing mix for two about trust have shifted dramatically. shoppers spend more after receiving rec- it informs the strategy of the program. If produce results. The best way to grapple with this trendprimary reasons. The first we’ve already For example, CEOs are now considered ommendations from friends. In another you understand your Key Performance A few common sources of advocate is through advocacy programs. These pro-outlined using the story of Triple T Teas. among the least credible spokespeople study, Nielsen Global found that 90% of Indicators, you can plan your activities to candidates are NPS surveys, loyalty grams marshal individuals into groupsTo get the outcomes that organizations in the world — the largest drop in Trust consumers said recommendations from influence them efficiently. Second, it en- program databases, look-alike targeting, and systematically activates them on be-desire, marketers must design programs Barometer history. Experts and aca- friends were the most trusted form of ables ongoing optimization. If an activity frontline employee referrals and primary half of the brand to serve business needs.and tactics that have the ability to scale demics have seen a drop as well. The advertising. Coming in second (at 70%) isn’t affecting your goals, then you can research on social media outlets. An This could be for something as simple asto serve the needs of social media. message is clear — the general popula- were consumer opinions shared online. make adjustments much more rapidly. emerging means of finding advocates, ‘liking’ brand content, as difficult as aid- The second reason for the ascen- tion no longer trusts business leaders All of this points to consumer and em- is to employ software-based aids. Dachis ing in customer service, or as essential asdancy of advocacy is the simple issue of to tell the truth. As CEOs become less ployee advocacy as the necessary levers responding during a brand crisis. 2. identify advocates Group offers a SaaS application calledtrust. Studies in recent years highlight a of a source of credible information for brands’ success online today. Advocate Insight that helps organizations 11:00 a.m. identify a pool of potential advocates Triple T Teas sends a message to its based on big data processing of socialData captured by Dachis Group’s Social advocate community asking for help media activity. This application can jump-Performance Index SaaS product makes combating the spreading social mediaclear a dramatic rise in negative market start the creation of an advocacy program crisis on its Facebook page. Momentssignals (the debate’s emergence) and the by streamlining the “identifying” stage of later the Triple T Tea Ambassadorssignificant drop immediately afterward the advocacy process. spring into action. Acknowledging their(the advocates’ swift action).CHART BY TED MAY high sugar and calorie content, dozens of conversations between advocates and Continued on page 31
    • 14 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 15+ SOCIAL BUSINESS PROFILE: JAKUB HRABOVSKY Anytime, anywhere advocacy As head of Social Media and Web Relations at Vodafone UK, Jakub Hrabovsky is responsible for digital and social media reputation management, online communities, and customer care. Dachis Group’s Olga Kozanecka met with him in London to discuss the importance of customer advocacy. INTERVIEW BY OLGA KOZANECKA PHOTOGRAPHY BY Claire Gaul
    • 16 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 17Olga Kozanecka: How do you define face, etc. What is different nowa- The influence they have can be within Vodafone or more generally networks. Their Facebook page half years has resulted in 20% calladvocacy? days is that we can have conversa- positive for a brand, or negative. within the European market? literally went from a couple of hun- deflection, which literally meansJakub Hrabovsky: I see advocacy as tions with our advocates wherever By general rule, influencers have I think Costa Coffee is a great dred people to over 500,000 in a saving millions of pounds for thethe way our customers and employ- they are, and in real time, as those a large following on social chan- example of an advocacy program in very short time. I see this as a tre- brand. In terms of communityees are talking about and promoting conversations are taking place out nels — precisely because what they the UK market. The company has mendous success for the brand and building and advocates cultivation,our brand and services. in the open. And of course those share is seen as interesting and completely changed their strategy a sign that they’ve done something the return on investment is clearly advocacy messages spread much relevant. Advocates on the other when it comes to social media very right in terms of activating visible. What we’ve been doing allDo you think advocacy has evolved more easily now across the social hand are your brand loyalists — engagement, in particular through their customers and turning them this time is using advocacy outreachalongside the digital and social universe, in effect making advo- people who are passionate about Facebook. Whereas in the begin- into advocates. tactics on our own forum and acrosslandscape? cates more powerful. your brand and your products, and ning they were trying to engage all available social media channelsI think advocacy as a phenomenon who at free will spread a good word with customers by communicating So how have advocates played a where we’re continually nurturinghas always been around, regard- How do you see the relationship about your brand, albeit often at marketing messages on their social role for Vodafone? our super-users and influencers wholess whether we’ve been commu- between advocates and influencers? a smaller scale. Both advocates channels, they went to create a Where we are finding social me- are providing expert advice to thenicating offline or online. People I think that in the social media and influencers can also help you real online haven for coffee lovers, dia particularly beneficial is call Vodafone community by offeringhave always been expressing their world any customer interacting with identify issues you might have not focusing on great content and the deflection and the ability to utilize knowledge and hands on expertise.opinions especially about topics your brand could potentially be an known about, because social media feeling of enjoyment that good cof- peer-to-peer help and community So our focus lies in making sure thethey feel strongly about — that’s influencer. It really depends on how give them the opportunity to share fee brings. The social element and advocacy. We are in a place right super-users feel appreciated andwhy successful brands could’ve interesting their story is. Social instant feedback. It’s important to joy of having a coffee with a friend now where we can quite comfort- recognized for the great work thatbeen successful long before the media is all about the quality of listen and learn. were crucial. What resulted was ably say that, and this is based on they’re doing simply out of theirinternet existed. Social media is a the content you share. This I think an online community of fans, who a thorough internal study as much passion for our brand and theirnew channel but brand related con- drives people’s online credentials What types of advocacy behaviors became well equipped to act as as on phone surveys, that our Web interest in technical matters.versations have always been taking and authority they get, and makes do you see exhibited among advocates of the brand and share relations approach that we’ve beenplace — over the phone, face-to- them influential in a particular area. consumers? the Costa story throughout their practicing for the last three-and-a- Continued on page 31 For a telecommunications organiza-Our web relations tion like Vodafone, when it comes to social media, around 90% of all the incoming traffic is customer service related, either reportingapproach that we’ve a problem or an issue or asking for help. The positive feedback comes when your brand recognizesbeen practicing for the there is a conversation happen- ing, engages if appropriate and delivers against customers needs. So whilst the initial contact that alast three and a half customer makes with us through social media might bear negative connotation or sentiment, we seeyears has resulted in a great opportunity to turn the negative into a positive response. Reacting in real time, leading with support and help, is the main op-20% call deflection, portunity to convert a detractor into a potential advocate. I think social media as a channel is particularlywhich literally means suitable for this purpose because more often than not people will reward you and spread good word, which strengthens [a] company’ssaving millions of reputation. The more traditional of- fline channels don’t enable similar real-time feedback.pounds for the brand. Can you think of a successful exam- ple of an advocacy program, either Jakub Hrabovsky: “Reacting in real time, leading with support and help, is the main opportunity to convert a detractor into a potential advocate. I think social media as a channel is particularly suitable for this purpose.” PHOTO BY Claire Gaul
    • Building advocacy18 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 19 Say goodbye to rigid processes. SOCIAL CRM via Say hello to Social CRM. by DION HINCHCLIFFE & PETER KIM A social ve VISUAL EXPLANATION by chris roettger Customer nue Excerpted from the sm a social id ust be able to es book Social Business en ta interact w tity and should b blish ith other e by Design, published as the co customer able to mp s as well CRM envi any’s workers in earlier this year by ronment. the social Jossey-Bass. D! $ BIG A $ Transaction $ @Jeanjeans you s ee me now ? driven $ Pin Can Conversation It! driven The OLD way MARKETING @Joejean The SOCIAL way Revolves around conversation and MARKETING engagement. One-way advertising is less effective as consumers have many other sources of information and influence. Customer SALES p mechanismarticipation Collects information from Social CR s transactions building a limited SALES M when par is more effective tic an database around existing Are interaction-based guide inp ipation mechanis d useful Social customer support e Contests uts ms telligenc customers, there’s no integrated and aimed as much and towar with specific req help in d product uir ive goals. ements ollectiveec tivities way to garner prospect info. at potential customers Shared lc RM tools direntt acto as existing ones. Doe, Jane Zip code? C in ocia nm ble Good s l CRM enviro le, and reusa ia b are of a soc ted, discovera ese activities , SUPPORT Uh, er... hold please. la th accumu e artifacts of uct suggestion s Th d Customer service often has limited hours, forms. solutions, pro er . often with service reps following scripts, custom opportunities giving customers limited, shallow support. and sale s SUPPORT Innovation and Dynamic and available via prediction markets Joint product design multiple platforms, accessible when & how the customer likes. My Pin s! HEY Y OU! I’m a reall y big LIMITED FEEDBACK ad Surveys provide limited feedback even as customers share experiences via word of mouth and unmanaged social channels. POSITIVE FEEDBACK Gets amplified to thousands — even millions — online while BIG negative sentiment is quickly Conversati onal scale ADGrWho HER detected and addressed. Deployin Hon g social to oce le k if you E! online cu ol stomers en s to interact with rs like b illb oar thousand Scaling m s of custommasse will enable ers to enga ec ds! social CR hanisms are esse ge. M to prod n uce effect tial for ive results .
    • 20 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 21I n 2011, only 6 percent of organi- rigid communication management a question publicly and let anyone 500 enterprises to small start-ups — development, or other business func- aimed at useful customer relationship zations had implemented social process. Because it is one part online else in the community, customer or while having consistent policies and tion. The best social tools aren’t overly scenarios. CRM, although a survey of community, one part crowdsourcing, employee, answer it. procedures for responses to custom- structured; social media are dynamic 3. Shared collective intelligence.thirty-three hundred companies in and one part customer self-service, Social CRM tools can also support er-initiated social engagement. and highly fluid, and it’s because of this Social media are most successful forlate 2011 determined that 56 percent social CRM can create an emergent, processes that generate new ideas Conversational scale is a significant characteristic that so many different businesses when focused participationare planning to do so. Research firm collaborative online partnership with from a community. Dell’s IdeaStorm challenge for companies without the outcomes are possible, so tools must creates a shared repository of knowl-Gartner estimates that social CRM customers that can result in an array allows customers to try to solve the right social business tools, because they be flexible and open-ended to accom- edge from combined user participa-will be a $1 billion industry by the of improvements to business perfor- company’s problems for user and are so outnumbered by the size of their modate a wide range of outcomes. tion. Good social CRM tools directend of 2012, reflecting increasing mance in the customer relationship company benefit. communities. Although social CRM activities of a social CRM environ- Aadoption by companies as a common process. Beyond being just for the For example, users generate an ultimately includes all customer rela- t a minimum, an effective ment into accumulated, discoverable,strategy and replacement for existing benefit of the business, however, idea such as pre-installing specific tionship touch points, Get Satisfaction social CRM solution should and reusable forms. The artifacts ofCRM approaches. By moving proven customers in social CRM approaches software packages, and the commu- focuses on customer service inquiry have four capabilities: these activities are customer solu-methods, use patterns, and features tend to have more control over the nity votes on its merit. At the core of resolution. When a customer arrives 1. A social venue. Customers must tions, product suggestions, salesinto a usable tool set, social CRM customer care process, have more making the process work is the ques- at a Get Satisfaction social CRM be able to establish a social identity opportunities, and so on. Successfulpromises to be a predictable, reliable sustained contact with the organiza- tion of who decides what the right community looking for help, he or she and perceive other customers and their social CRM creates relationships thatmodel, guided by the tenets of social tions they care about because they “official” answer to a customer prob- will ask a question. Get Satisfaction contributions, as well as be able to dis- get better the more people use them.business, for applying social media to are more likely to obtain what they lem is or which ideas will be selected realizes that a million questions from tinguish the company’s workers from 4. Mechanisms to deal with con-customer relationships. need, and use self-service, mutu- and how non-employee submitters a million customers are far too many other customers. They should be able versational scale. Many businesses Many of the social media tools ally visible participation, collective will be compensated. These are to deal with efficiently. Consequently, to interact with both types of parties still worry that deploying social toolsand communities that companies history, and social conversations to questions that organizations need to it puts similar questions into the same in the social CRM environment. to interact with online customers enhave deployed already to meet CRM assist each other as much as—and work through in order to transition bucket. If someone says, “I’m having 2. Customer participation mech- masse will create unexpected costs orneeds are good examples of social typically much more than — the clas- their customer relationship manage- problem X with your product,” and anisms. Although general-purpose overhead as thousands — and, in someCRM, despite the industry’s focus sic CRM model ever could or even ment to a social business model. We that question has been asked before discussion forums are open-ended cases, millions — of customers try toon optimized, pre-designed tools. was intended to. explore how best to determine moti- in similar fashion, the customer is and can be used for many types of engage with them. Since most existing vations and rewards for participants asked to combine his or her question participation, they social media tools have not been de-Social CRM paints a vision of creating in the social business design in Part Three of the book. with that bucket. Because it’s a social environment, everyone’s questions can allow customer contributions to signed explicitly to deal with this, this is an area where social CRM tools shine.a deeper, more engaging community- By its very nature, social CRM is be seen and combined when possible. head in any direc- Service-level agreements that guarantee asymmetrical when it comes to levels Instead of talking to customers about a tion, productive or that customers will get a response ifbased relationship with an organization’s of participation; there are always million individual issues, only perhaps otherwise. A little the community at large doesn’t deliver many more customers than work- a few thousand total conversational structure, though or tools that bucket identical inquiriescustomers and prospects instead of the ers. Success here is defined by how buckets exist instead, each of which not enough to kill together, as well as other scaling mecha-traditional approach where customers effectively the resulting social busi- ness solution deals with the number can have a conversational thread on how to resolve the issues contained in valuable emergent outcomes, can go Learn more about nisms, are essential for social CRM to produce effective results.are relegated to a well-defined, rigid of customers who will interact with a business through these new channels it. In fact, that’s exactly what happens after enough collective intelligence a long way. Social CRM becomes Social Business Social CRM will be the primary way that traditional organizations by Design here:communication management process. while still governing the relationship is built up in the community: when more effective and dach.is/sbdbook. will transform customer relation- to make it consistently responsive and a question is asked and then put in a useful when par- ships in the social business era.Whenever social media let customers Like many aspects of social busi- successful from a customer perspec- bucket with other common questions, ticipation mecha- However, the biggest barrier tohave a relationship with a business ness, however, the crowd often has tive. Participation (for example, gen- a solution — and often even a set of nisms help guide inputs with specific adopting social CRM is not the— in other words, interaction that its own thoughts and feeling about erating user support questions) must solutions — is usually waiting for the requirements and toward productive technology, the tools, or customers:is publicly visible to other customers how work gets done. For social be balanced with equally effective customer. goals. These might include specific rather, it’s the mind-set about whatwhenever possible — social CRM CRM, this necessarily entails less de- issue communication and resolution, Given that early social CRM provid- features to enable transactions around CRM can and should accomplish.can occur. The old CRM model, a terministic control and outcomes at operating within the requirements of ers have focused on only a specific social customer support, competitive Social CRM is not about managingclosed, asocial mode of customer times, although many solutions now corporate policy and commercial law phase of social CRM, it begs the ques- contests, innovation and prediction customer records or maintaininginteraction, is the antithesis of social- zero in on and optimize for predict- guiding marketing, corporate commu- tion of the full range of functions that markets, or joint product design. email blast schedules. It’s aboutCRM and much less likely to lead to able and reliable behavior, even if nications, customer service, consumer a social CRM solution should have. Some services, such as Kluster, pro- forming a close partnership whererewarding outcomes for the business they reduce innovation. The Intuit privacy, and so on. As with most other aspects of social vide finely tuned controls that can be the organization retains a leadershipand its customers. example in Chapter Three of Social Get Satisfaction is a prime exam- media, there is now a wide range of adjusted to find the right mix of struc- role and the use of social media re- Social CRM paints a vision of Business by Design of encouraging ple of a targeted social CRM service social CRM tools, large and small, ture and open participation. Newer sults in the creation of vibrant cus-creating a deeper, more engag- customers to help other customers designed to address the problem simple and sophisticated. Therefore, as social CRM tools increasingly have tomer community relationships. Theing community-based relationship within Live Community is a prime of asymmetry in the company-to- an organization grows, it will want the pluggable participation applications elimination of decades of inadequatewith an organization’s customers example of the customer care aspect customer relationship. Get Satis- option of expanding the nature of the that let third parties offer rapidly de- channels of customer communica-and prospects instead of the tra- of social CRM in action. A canonical faction helps over sixty thousand social relationships it maintains with ployable, industry-specific customer tion will unleash a sudden tide ofditional approach where custom- pattern here is this: a social CRM organizations deal effectively with the marketplace, whether market- relationship solutions — very similar opportunities, as well as challenges,ers are relegated to a well-defined, environment will let a visitor ask “conversational scale” from Fortune ing, sales, customer service, product to Apple’s successful App Store but in the move to social business. n
    • 22 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 23 August: Salesforce embraces social as February: Twitter messaging platform for rolls out expanded customers and employees brand pages September: 2012 March: Pinterest March: Facebook October: Jive Social Business surpasses LinkedIn Timeline for brands releases its 4.0 Index launches and Tagged to is introduced software platform, become the 3rd defining it as Social January: largest social Business software Arab Spring networking site May: Facebook becomes the March: Skittles July: “United Breaks 2010 March: Pinterest 2011 largest tech IPO in history at January: At its annual home page is a Guitars” becomes a February: Old Spice launches visual $38 a share... so what’s next? Lotusphere conference, live Twitter stream YouTube hit launches its “The social bookmarking IBM declares Social Man Your Man Could Business the next wave Smell Like” campaign of enterprise computing January: Foursquare MILESTONES 1997 launches IN THE BEGINNING November: TheGlobe.com Spring: Six SOCIAL allows personalization, 1969 July: Amazon Degrees, the content publishing, and first social goes live with interaction with other users network, is user-generated July: ARPANET 2009 reviews launched April: Dachis Group is BUSINESS commissioned by DoD 1995 1999 founded by Jeffrey Dachis— WHAT A LONG, STRANGE TRIP IT’S BEEN April: The ClueTrain Manifesto the term Social (AND IT’S ONLY JUST BEGUN) Business is coined BY CARLY ROYE & BILL KEAGGY · INFOGRAPHIC BY CHRIS ROETTGER August: Blogger debuts, allowing November: Facebook 1980 1991 1994 August: Pizza Hut easy publishing to the Web. Pages debut CompuServe August: WWW June: AOL online orders introduces released by launches 2008 March: @ComcastCares online chat CERN 2000 joins Twitter, marking the rebirth of customer October: April: Dodgeball (precursor service online Dion Hinchcliffe October: The term “Web to Foursquare) launches location- expands the 2.0” and “the Read/Write based social networking definition of Web Web” is coined at the 2.0 to include Web 2.0 Conference, Early 2000s social media marking the beginning Crowdsourcing of a collaborative & communities medium on the Internet 2007 2003 June: The first September: Get February: JetBlue iPhone is sold Satisfaction launches 2005 May: Professional networking strands passengers site LinkedIn launches in the U.S. July: Yelp November: Office Max’s in grounded planes “Elf Yourself” gets 193 relaunches as a August: MySpace launches million visits during the user-submitted holiday season local review site September: Delicious debuts September: “social bookmarking” Facebook becomes July: Howard Dean available to anyone becomes the first 2004 13+ who has a valid candidate to build email address a social network February: YouTube and fundraising launches social video campaign online April: Andrew McAfee 2006 April: Burger King’s “The Subservient February: “The July: Twitter December: Wists launches June: The (“social publishes his E2.0 manifesto, as a visual bookmarking / Dell Hell Chicken” campaign goes live, marking Facebook” launches microcontent”) introducing online collaboration social shopping site story by the beginning of viral brand campaigns at Harvard launches for enterprises Jeff Jarvis
    • 24 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 25+ B O O K E X C E R P T: T H E C O N N E C T E D C O M PA N Y BY DAVE GRAY THE CONNECTED CUSTOMER PHOTO courtesy U.S. LIBRARY OF CONGRESS Customers are connecting, ILLUSTRATIONS by DAVE GRAY forming networked comm– unities that allow them to rapidly share information and to self-organize into powerful interest groups. Companies will have to be more responsive to customer needs and demands if they want to survive. This article is excerpted from the book The Connected Company by Dave Gray, SVP Strategy, Dachis Group, published September 2012 by O’Reilly. Learn more about it at dach.is/OGUpYC.
    • 26 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 27 planning process. But it soon became much more than age. Starbucks had no interactive presence online. No filed a claim with the airline, but they refused to honor it be- way to speak up quickly on our own behalf, to talk di- cause he had failed to make the claim within 24 hours. For that. A little over a week later, a colleague stepped into rectly to customers, investors, as well as partners, or let nine months, he tried to negotiate with the airline. Finally, Schultz’s office. “Someone leaked the memo,” he said. them talk directly to us…we were losing control of our “It’s on the internet.” in frustration, he wrote a song titled “United Breaks Guitars” story, in the stores as well as the real world. Schultz was shocked. and released a music video on YouTube. The song’s refrain: The leaked memo and its aftermath were a wake-up call “I should have flown with someone else, or gone by car, Reporters were already calling, but Schultz was too for Schultz. “I was not sure where to begin,” he writes to- shaken up to grant any interviews. This had been a con- ‘cause United breaks guitars.” day, “but we had to do something.” The video was an Internet hit. Within one day of its fidential memo to the CEO and a small group of senior executives in the company. He couldn’t believe any of release, it had amassed 150,000 views. In a few weeks, Something’s happening here them would have done such a thing. that number had risen to 5 million, and in December, The memo had first appeared on a blog called Starbucks Time magazine listed it as number 7 on a list of top viral videos of 2009.The balance of power is shifting Gossip and was quickly picked up by the mainstream me- If Starbucks didn’t have a voice in the global conversa- dia. The speed at which word spread, and the breadth tion, who did? The Starbucks Gossip blog, the main- Once the video was released, United contacted Carroll to and depth of the online conversations that ensued, as- stream media, readers, customers, analysts, and so on — try to right the wrong, but it seems that their efforts wereThe balance of power is shifting from companies to the tonished Schultz: in other words, anyone and everyone who was interested: too little, too late. Bob Taylor, owner of Taylor Guitars, gavenetworks that surround them. Connected, communicating The day after the memo was posted, the mainstream the network. And because the memo was interesting, it Carroll two free guitars, and Carroll refused compensationcustomers and employees have more choices, and more media picked it up like a whirlwind. The Wall Street cascaded through the network, gaining momentum as it from United, asking instead that they revise their customeramplified voices, than ever before. They have more knowl- Journal. The New York Times. The Associated Press. went, like a tidal wave. service policies and give the money to charity. United do-edge than ever before. These trends are only increasing Bloomberg, Reuters, the Financial Times. Online finan- These kinds of cascading effects are common in net- nated $3,000 to the Thelonious Monk Institute of Jazz aswith time. This means the network — customers, partners, cial news sites and independent blogs. Articles quoted works. An initial event strikes a chord: it’s interesting, fun- a gesture of goodwill, but by that point, the damage hadand employees — will increasingly set the agenda, deter- the memo and parsed my words, usually under dour ny, sad, disgusting, or enraging. As a result, it is shared, been done.mine the parameters, and make the decisions about how headlines that implied, or stated outright, that troublethey interact with companies. was brewing at Starbucks. Online, readers posted com- commented on, analyzed, and argued about. And as it ments one after the other. Many of them stung. Stunned moves through the network, it is amplified, sometimes to as I was that the memo had been leaked, I was also an exponential degree.A wake-up call at starbucksIn February 2007, Starbucks chairman Howard Schultz astonished by the depth of conversation it unleashed, as well as the speed. It seemed that everyone—custom- ers, partners, analysts, reporters, industry insiders, and Cascading effects can be initiated by customerssat down to write a difficult memo. business “experts” — had an opinion about the memo, In 2005, Dell learned a tough lesson when they shut down Schultz, always in the habit of visiting stores around its motive, what it meant for the future of the company peer-to-peer customer forums, and Dell customer (and as well as what it said about me as a leader.the world, had noticed that the Starbucks experience was blogger) Jeff Jarvis, who had recently bought a machinedeteriorating. And in 2006, Starbucks’ legendary growth Schultz says he took two very important lessons from his that almost immediately malfunctioned, expressed hishad started to slow. The amount of money customers were experience. First, nothing can be pre- dissatisfaction on the Web in a post titled, “Dell lies. Dellspending was starting to dip. sumed confidential. Second, Starbucks sucks.” Jarvis coined the term “Dell Hell,” saying Dell didn’t In his 2007 memo, “The Commoditization of the did not have a voice in the global “respect [customers] enough to listen to them.”Starbucks Experience,” Schultz laid out his concerns. conversation: Within a week, Dell Hell was a story in The New York Cascading effects can be initiated by employeesEspresso machines, which increased efficiency, were too The heated online conversations Times and Business Week. Hundreds of other bloggers In 2009, two Dominos workers videotaped themselvestall; they created a wall that blocked the line of sight be- about the memo were beyond chimed in to tell their “Dell Hell” stories. At the time, Dell doing disgusting things to food — one put cheese up Starbucks’ influence, moretween customers and baristas, a barrier to conversation had an internal policy not to reply publicly to blogs. So the his nose and mucus on sandwiches while the other nar- so than any other con-and connection. Flavor-locked packaging, which guar- troversy we had experi- company remained silent, and the PR nightmare snow- rated — and they posted the video on the internet. Oneanteed fresh roasted coffee in every cup, also made the enced…the good things balled. Sales plummeted, along with Dell’s reputation. of the employees, who identified herself as Kristy, said,stores more antiseptic, depriving them of their rich, flavor- about us, our values and the Dell has learned from its mistake, and in 2010 launched “In about five minutes it’ll be sent out on delivery whereful, coffee aromas. Streamlining store designs increased acts that distinguished us, a “customer listening command center” to monitor and somebody will be eating these, yes, eating them, andefficiency, but many customers perceived them as sterile, these were getting lost in proactively respond to online conversations. Founder and little did they know that cheese was in his nose and thatcookie-cutter designs. the public conversation. The CEO Michael Dell is active on social media, engaging there was some lethal gas that ended up on their salami. millions of dollars we invest- “We have all been part of these decisions,” wrote Schultz. with customers directly. Now that’s how we roll at Domino’s.” ed in local communities. The“I take full responsibility myself, but we desperately need to In another incident, Canadian musician Dave Carroll was Within the week, the video had garnered over a million health-care coverage and stock we extended to part-look into the mirror and realize it’s time to get back to the timers, at a considerable cost to the company. While traveling on United Airlines in 2008 and had checked his views. “We got blindsided by two idiots with a video cameracore and make the changes necessary to evoke the heri- we never put forth press releases about many of these guitar into baggage, when his plane landed at Chicago’s and an awful idea,” said Dominos spokesman Tim McIntyretage, the tradition, and the passion that we all have for the initiatives — believing they were just the right things to O’Hare airport en route to Omaha. He became concerned to The New York Times.true Starbucks experience.” do — we also were not getting credit for them… as he watched baggage handlers on the runway throwing Kristy Hammonds, 31, later said in a company email that The memo was meant to be a wake-up call to the senior Our website, with its beautifully designed pages…was guitars. When he arrived in Omaha, he found that indeed it was just a joke and that she was sorry. But the damageexecutive team as they embarked on their yearly strategic primarily a one-way dialogue, inadequate in the digital the neck of his $3,500 Taylor guitar had been broken. He had been done.
    • 28 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 29Cascading effects can be initiated by enemies or competitors before this date, we will send a clear message that con- reviews, or if price is a priority, you might go to Priceline, to write negative reviews on the store’s website since theIn March 2011, conservative activist James O’Keefe, scious consumers won’t support companies with unethical where you can set your own price. Want to watch a movie? day they launched. That was a controversial decision atposing as a member of a Muslim education group, se- business practices.” You can find the best picks at Rotten Tomatoes, Netflix, or the time. Why would a retailer allow anyone to post infor-cretly videotaped NPR fundraising chief Ron Schiller Christian’s groundswell movement quickly snowballed. IMDB, where movie-watchers have a voice. mation that would help a customer decide to not to buysaying republicans were “racist” and “xenophobic,” and Within three days, 8,000 people had signed up to attend These peer-to-peer conversations subvert traditional mar- something? Jeff Bezos recalls a publisher calling him andthat NPR didn’t need federal funding. Schiller resigned the event. keting channels. Cust­ mers trust each other more than they o saying, “I don’t think you understand your business. Youand the CEO was forced to step down shortly thereafter. “I was tired,” wrote Christian in another post. “Tired of the trust companies, who have a vested interest in making them- make money when you sell books.” But Bezos knew bet- fee increases, tired of not being able to access my money selves look good. A 2009 Nielsen study found that 90% of ter. He understood that what connected customers value when I need to, tired of them using what little money I have customers trusted recommendations from other customers is a company that will help them make better buying deci-Cascading effects can be initiated by senior executives to oppress my brothers & sisters. So I stood up. I’ve been more than any other form of advertising. And customers sions. And today we all understand that.On June 30, 2011, tech blog The Boy Genius Report shocked at how many people have stood up alongside me. have begun to recognize, and exercise, their power. To think that this customer revolution won’t affect yourpublished an anonymous memo from an executive at With each person who RSVPs to this event, my heart swells. This power, in and of itself, is not necessarily new. business is naive. It will affect every business. It is al-Blackberry maker Research in Motion (RIM), addressed Me closing my account all on my lonesome wouldn’t have Customers have always had the power to choose what ready shifting the balance of power. It is changing the wayto the RIM Senior Management team, starting with the made a difference to these fat cats. But each of YOU stand- they wanted to buy. Customers and workers have always power is controlled and exercised. It will change the waywords, “I have lost confidence. While I hide it at work, my ing up with me…they can’t drown out the noise we’ll make.” had the power to share their experiences with friends and companies are organized and the way they do business.passion has been sapped.” The letter went on to plead for By November 4, the day before Bank transfer Day, at peers. They have always had the power to promote — or Eventually, every customer will be a connected custom-drastic changes. least 650,000 people had added $4.5 billion to cred- demote — a company based on what it promised and er. And if you want to win over connected customers, you The company issued an official reply, saying, “It is par- it union savings accounts. That same week, Bank of what it delivered. Customers have always been able to will need to become a connected company. nticularly difficult to believe that a high-level employee in America dropped its plan to charge additional fees. vote with their wallets.good standing with the company would choose to anony- But they weren’t connected to a global network withmously publish a letter on the web rather than engage Power in the network the potential to amplify their opinions and experiences to Notes for chapter onefellow executives in a constructive manner…RIM is none- hurricane strength. And that little thing we call “linking”theless fully aware of and aggressively addressing both makes all the difference.the company’s challenges and its opportunities.” By changing the way we create, access, and share infor- Any dictator will tell you that in order to control the state, The Boy Genius Report published the response, but at mation, social networks are changing the power structure you must control the media. So ask yourself: who controls Most of the stories herethe same time also published more anonymous letters in society. the media today? And which way are the trends heading? can easily be found byfrom RIM employees supporting the original memo and Customers like Kristen Christian can pick up a mega- In February 2010, a nonprofit organization called Google search. Influentialaccusing RIM of poor leadership, leading to low morale phone at any time, and if they have a message that reso- WikiLeaks began releasing classified cables between the sources include the sayingsthroughout the company. nates with the network, it can gain momentum very fast. US State Department and its consulates, embassies, and and writings of Doc Searls, Rogue individuals can target you in sting operations, as diplomatic missions around the world. It was the larg- David Weinberger, ClayThe ATM revolt James O’Keefe did, or they can simply act stupidly, as the est leak of classified material in the history of the world, Shirky, Peter Kim, and Dion Domino’s employees did. and there was nothing the US government could do about Hinchcliffe. If you haven’t Disgruntled employees can get their message out it. Once information is released to a network, it can’t be read it yet, check out The through leaks or anonymous memos like those from pulled back. Wikileaks has demonstrated definitively that Cluetrain Manifesto. Starbucks and RIM. no secret, corporate or political, is safe for long. Starbucks: For that anecdote,In September of 2011, Bank of America announced that However it happens, once something is released to a We’ve been saying the customer is king so long that I’m indebted to the candidit would start charging customers network, it can rapidly spin out of control. it has become a cliché. And in most cases, our actions thoughts Howard Schultz$5 per month to shop with their Clearly, social networks such as Twitter and Facebook, don’t match those words. But customers will be kings and expressed in his book, Onward: How Starbucks Foughtdebit cards. In early October, a which didn’t exist in 1999, have gained momentum far queens, not only in name, but in fact. One by one, cus- for Its Life Without Losing Its Soul, (Rodale Inc., 2011).27-year-old gallery owner in Los more quickly among the general population than they tomers are recognizing the power that comes from a worldAngeles named Kristen Christian Domino’s: Stephanie Clifford, “Video Prank at Domino’s Taints have in corporations. Customers are connecting and shar- in which their choices are infinite and their voices are am-set up a Facebook event page, Brands,” The New York Times, April 15, 2009. ing information at a far faster rate than the companies plified. They are connecting. They are organizing. They areinviting 500 of her Facebook that serve them. There’s no question that when it comes gaining mass and momentum. Bank of America: Bank withdrawal numbers from the Credit Unionfriends to move their accounts to social networking, companies lag behind their markets. Customers don’t need to revolt in an active way. All National Association newsletter, November 4, 2011.to local credit unions by Networked customers can easily bypass formal channels that is required is for a new company to come along andNovember 5, which she called Customer recommendations: 2009 Nielsen Global Online Consumer to get information and support directly from each other. offer a better service. Connected customers will become“Bank Transfer Day.” Survey. Think about where you go when you want to make a aware of such services far more easily than they have in “Together we can ensure that buying decision today. In general, you go to peers first. If the past, and share the information more quickly, too. AMAZON: “Jeff Bezos recalls a publisher calling him and say-these banking institutions will al- you want to go to a restaurant, you might go to Yelp! or If the new service is interesting, it will quickly cascade ing ‘I don’t think you understand your business. You makeways remember the 5th of November,” she Urbanspoon to read recommendations and reviews from through the network. money when you sell books.’” From “A Conversation withwrote. “If we shift our funds from the for-profit customers. Booking a hotel? If you care about comfort Some companies have figured out how to create these Jeff Bezos” by François Bourboulon, Les Echos (blog), Junebanking institutions in favor of not-for-profit credit unions and service, you might go to Hotels.com to read some kinds of direct relationships. Amazon allowed customers 23, 2011.
    • 30 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 31 THE A-TEAM For recruiting to work, the brand must be transparent with the expectations and privileges associated with the program. This also requires clarity of vision on your Continued from page 13 side — what do you expect out of the advo-+ VISUAL THINKING SCHOOL: EMPATHY MAPS cates? What resources are you prepared to 3. recruit advocates invest in the program? An understanding You should now be left with a sizable and of these elements lets you broker an au-Understand your audience detailed list of people who might prove to be thentic relationship with potential recruits. excellent advocates on behalf of your brand. Once you’ve defined the nature of the the specific goals you seek. For example, The challenge is turning that list into an relationship you desire, rank your advocate an advocacy program for customer service actual group of committed advocates. candidates by their likely ability to achieve should require extensive knowledge andBY W. SCOTT MATTHEWS & JAMES MACANUFO passion for brand products accompanied bySKETCHES by W. SCOTT MATTHEWS a willingness to share that knowledge. TakeGoal abstract or fictional title. But a real person Jakub Hrabovsky this opportunity to get the best of the best. One effective practice is to have individuals undergo a rigorous applica-Quickly develop holistic understanding of or role will get you stronger examples. Continued from page 17 because we wouldn’t be engaging tion process to become advocates. This issomeone with this visual persona we call beneficial for two reasons. First, it ensuresan Empathy Map 2. Based on what information you want to with people who are talking about that people who join the program are truly collect, label different areas around the head. Olga: How about using advocates our brand and services to us or their excited and committed to participation.Time You may want to start by writing “Hearing” for crisis management? peers, followers or friends. Second, it is an opportunity to elicit ad-10-15 minutes per subject to the left, “Seeing” to the right and “Think- Jakub: I think for that particular ditional information about your advocates ing” in the center of the head. Sometimes matter the internal social team How do you know who your and use it in your ranking and segmenta-Materials adding “Feeling” below can help. bears the bulk of responsibility. advocates are? tion of the advocate pool.Markers and whiteboard (or paper) 3. Putting yourself in this person’s shoes When it comes to technical problem We’re actively listening to online 4. activate advocatesPurpose How to do it is key to creating empathy. On a given resolutions, if customers don’t know conversations through regular socialThe best way to understand your target 1. Introduce the subject and draw their day, what is this person experiencing? Ask how to set up their handset etc., media analysis. We highlight par-audience is to get inside their head. “head” at whatever fidelity you can — everyone to fill in the blanks. What is he then yes, the community is likely to ticularly active users that are talkingWhether it’s a customer, a user, an em- even a large circle that will accommo- hearing? What is she thinking and seeing? take care of itself and the advocates about us and/or directly to us.ployee, we can start to define what it is date writing inside it will work (just add What is he doing, feeling? As you capture / super users will help togetherthat they think about and the forces that eyes, ears, and nose). Give this person a information, consider emphasizing the with the dedicated moderation of And how do you measure success?are at work on their lives. When we know name. When creating a representative of more significant pieces of the puzzle and the Web Relations team or through We have a clear set of measuresthis, we can begin to understand how a large or diverse group of people (users, color-coding different types of thoughts, peer-to-peer intervention. However, we’re looking at. On the one hand,best to solve their problems. for instance) it may be better to have an sights and sounds. n when it comes to corporate cri- we’re tracking the overall volume of ses, it’s the company and internal online conversations and looking at Advocate activation usually takes the spokespeople who are responsible sentiment scores. On the other hand, form of a series of creative ideas that for communicating through social we also measure how commercially benefit from the distributed authentic- media channels keeping the target viable our social media activities are, ity and passion of an advocacy program. audiences up to date. in terms of cost savings through call Advocacy brings unique challenges of deflection, and sales through direct managing, guiding, and empowering ad- vocate activity. Strong programs provide Do you differentiate between your sales via Web Acquisitions. the resources that advocates need to be super-user advocates on the forum effective, but also set them free to be their and your fans on the Vodafone Have you run any internal authentic selves. The goal is to inform Facebook page or your followers advocacy programs aimed at and guide without stifling love or passion. on Twitter? activating employees? At this stage, brand advocacy pro- As a brand we have the responsibil- We have a pretty open policy at grams commonly employ community ity to listen to all of our custom- Vodafone, providing our employees platforms and other technology to facili- ers. Whether on Facebook, Twitter, with a clear set of guidelines, rules tate communication, organize efforts, YouTube or our own forum we as a and principles as to how they should and build a unified advocate culture. Technology could be something as brand have a responsibility to listen engage on behalf of our brand. If simple as a Facebook group, as complex and engage with customers through they like Vodafone as a brand, they as a standalone forums and community whichever social media channel they will act as our advocates on their solution, as innovative as a mobile appli- prefer. Failing that we’d be missing own accord. Vodafone’s responsibil- cation or some combination of all three. opportunities from the reputation ity is to be a good employer, so that It is also important to consider how to management standpoint, customer people are proud to be associated reward advocates. There are a number of care angle, and the overarching NPS with the brand and promote our (Net Promoter Score) perspective, products and services. n Continued on page 34Learn more about visual thinking and facilitation techniques like this in the O’Reilly book Gamestorming by Dave Gray, James Macanufo, and Sunni Brown: dach.is/QPs4O9.
    • 4m i @serenawilliams 2.7m lli on 32 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 33 fol low 3m ill ers + DG DATA VIZ: DISNEY ’S SBI RANK & TWITTER AUDIENCES on i fol low ers 2m ill io nf 50k oll ow 100k @DwightHoward 3.3m 1 ers mi lli on It’s a big world, after all fo llo we rs 10k sn ey t he Charting The Walt Disney Company’s Twitterverse Dia n y @FOXSports 160k WORDS & VISUALS BY JACOB HEBERLIE @NBCOlympics 180k lto m p T @NBCSports 109k witter didn’t exist in 1928 —and neither did cartoons ESPN’s network of journalists stoke the social fires Wa c 10k with synchronized sound. Regardless, one whistling by talking sports (and trash) and feeding us fast facts mouse character started a media revolution as disruptive via Twitter, driving the company to #2 on the Social dex 684 in as Twitter’s 140 characters. Business Index (socialbusinessindex.com). 2 s nes Walt Disney’s “Steamboat Willie” (considered the debut Still, Disney has competition. Companies like Viacom ore @NBCNews 282k us i of Mickey & Minnie Mouse) seems ancient to us now. But seem to be doing a better job making their fictional al b ; s c that grainy black and white cartoon rodent was ahead of his characters accessible on Twitter. Relative newcomer @NBC 174k i soc #2 we rs 100k time. And The Walt Disney Company continues to be ahead Spongebob Squarepants (Nickelodeon) has an audience k lo of the curve in the age of social. of half a million while Disney’s 100-year-old Tinker Bell r an fol l i o n Many of us start our day (“Good Morning America”) has just three thousand. er itt m i l and end it (“Jimmy Kimmel Live!”) with Disney property So... have you found and followed Nemo? What do tw . 7 ABC. Pixar and Disney films are practically part of the you think Buzz DMs to Woody? And then there’s Snow 30 family. But you may be surprised to learn that most of the White — what does she think about all of these remakes chatter in Disney’s Twitter portfolio isn’t about fairy tales and retweets? Disney and many others with huge (or or mind-blowing computer animation. not) followings have major engagement and advocacy Almost half of Disney’s +30 million opportunities via social. To the generations growing up in @DWAnimation 75k followers are thanks to interest in this connected world, will an @ reply from Mickey mean @spongebob 500k 10k DreamWorks Animation actual humans like LeBron more than hugging a sweaty person in a mouse costume @FOXNews 1.7m James, Hope Solo, Venus at a theme park? Williams, and Tim Tebow. Probably. n 100k @iCarly 775k 30.7 million total followers espn abc disney other 14.8m 7.9m 5.6m 2.4m@MirandaCosgrove 2.2m iCarly actress SOURCE: SOCIAL BUSINESS INDEX
    • 34 THE SOCIAL BUSINESS JOURNAL ISSUE 02 Q1 2013 35THE A-TEAM / advocacy in 7 stepsContinued from page 31 with the community in a visual, branded way overwhelms the brand’s ability to do include product and brand insights that can be integrated into business strategy. + SOCIAL BUSINESS INSIDER: SUSAN SCRUPSKI Now starring in your product’sdifferent ways to approach rewards in ad- anything but seek out images, composevocacy programs. These range from highly questions, and generate conversation. 7. learn & improvesymbolic (non-financial) rewards all the Advocates are an excellent way to ad- lifestream: the fabulous meway to paid compensation. Unfortunately, dress the issue.there is no simple set of rules that any or- Most advocacy programs, even theganization can follow to solve the advocacy most lightweight contests or promotions,rewards conundrum. Instead, it makes result in a bevy of user generated contentsense to adhere to a set of basic principleswhen interacting with advocates. The most important principle in of varying levels of quality. This content, amplified organically in social channels or even promoted with paid media, can gen- A t the end of 2008, I made some end-of-year predictions. Some right on the money, some completely secure and cultivate advocates is just beginning. When a brand is fortunate enoughrewarding advocates is to ensure that the erate authentic interest and conversation wrong (like Nokia over Apple on to enter into an individual’s orbit,rewards encourage a behavior that the around the brand. Longer term that con- smartphones. Sheesh). that’s an opportunity to secure a new Learn from your advocates. Ask themadvocates would commit anyway. Reward tent can be the foundation of the content One that I was right about, advocate. Advocates are passionate questions, thank them, show them thatschemes that incentivize advocates to calendar for months into the future. Some things are changing, and while you make however, and seemed odd at the brand defenders. They take bulletsbehave in unnatural or inauthentic ways Dachis Group clients work with their advocates to generate content postings, them a part of the process, also give them time was this one: “The Long Tail for you. They stake their own self-taint the spirit of the relationship and room to engage and develop as advocates. of Micro-Influence Will Disprupt... importance and reputation on yourmove dangerously close to pay-for-advoca- testimonials, blog posts, and even high- This stage of the advocacy process Everything.” product or service. But remember,cy schemes. This more cynical approach quality promotional videos — all at a lower seems easy, and in fact, it should be easy. I’ve often said these “sharing andmight work for a while, but it will typi- cost and with a greater level of authenticity Back then, Twitter was still gather- they are at the center of their social Unfortunately, most organizations reallycally backfire as advocates lose interest in and trust than traditional marketing. ing steam. The Arab Spring wouldn’t voicing” behaviors aren’t new, but center, not you. To the degree you struggle with capturing feedback fromhaving another ‘job’ advocating on your 6. measure advocates external sources and integrating it into happen for two more years, and the platform upon which we can can complement or “extend” theirbehalf. In addition, this re-introduces the operations. It is worth it though. Advo- Twitter’s charm was mostly (only) now take action is fresh and highly personal brand identity, there is a bigproblem of scalability into the program. appreciated by tech industry and significant. In 2012, every man, win-win in the offing. Remember, be- cates are typically not just a brand’s mostIf advocates only act for financial reasons, woman, child, and some influential outspoken customers, they are also often social media enthusiasts. The liner hind every tweet, like, mention, andthen the program is inherently limited in a brand’s most frequent and profitable notes on this slide read: domestic animals have become complaint is an attention-seekingits impact to the amount of financial re- customers. Learning from advocate com- the equivalent of celebrities. Each quasi-narcissist that demands yourward your organization can bring to bear. munities is not only a feel-good exercise “Twitter. Who knew? Something so personal Facebook News Feed and time and respect. To the degree you5. amplify advocates for the advocate community, it also con- innocuous could create so much Twitter stream (along with every can fold into their personal narrative, tributes to business performance. disruption. Mini micro web-celebs other personalized social feed’s you will earn their brand love — and with their legions of adoring fan/fol- activity stream) presents a custom- the advocacy opportunity all the rewards that are reaped from lowers will mess with reputation and With the correct tools and planning, Engaging with advocates is a business ized view of a world that orbits that special relationship. In other loyalty all across the globe. When advocate activity is one of the most and marketing tactic born of the social neatly around the individual. There’s words, the key to advocate passion networks of networks connect, the measurable contributors to business era and perfectly adapted to success in micro-sharing phenomenon will whip a heightened sense of self-impor- is relevance. Be worth their limited outcomes available to marketers. Brands the social era. Creating relationships its long tail and knock out the best tance that’s reinforced by the social time and attention. have the advantage of tools like Dachis with advocates is not easy — identifying, laid plans of strategic planners.” attention we give and get. We’re So, as for my 2008 prediction, I Group’s Advocate Insight, to locate and recruiting, activating, amplifying, and all moving toward a Social Atten- was correct. But in that prescient track brand contributions of advocates, learning from advocates requires entirely tion Economy where we are firmly Even Facebook didn’t roll out its observation, what I couldn’t see wasThere is a new problem emerging as well as foreknowledge of a program’s new skills that most organizations must ability to “Like” a page until 2010. established as the center of gravity how we can now use sophisticatedamong brands that have embraced social tactics and objectives to design measure- discover. Nonetheless, in business cases ment and reporting for their program. ranging from Vitaminwater to Red Bull But the unfettered ability to deliver for all that revolves around us. This tools to identify, attract, and cultivatemedia — the challenge of consistentlygenerating interesting content to share Most advocacy programs rely on a to Nestlé, the value of advocacy has been this kind of interactive brand power includes, family, friends, employ- those wild and woolly social beings.in social channels. For many brands this combined dashboard approach that en- proven many times over. Organizations into the hands of today’s consumers ers, partners, and yes, products As the socially connected worldis one of their greatest challenges on a compasses brand metrics, advocacy com- focused on seizing the social opportunity is staggering. The escalating strength and services. So when we “talk” to grows more dense, more rich, andday-to-day basis. After a few months the munity metrics, and business metrics. Ad- must look to advocacy to scalably unlock behind the consumer voice is writ- a brand, we expect a response. We more attention-starved, your brandresources required to constantly interact ditionally, the strongest programs will also the value waiting to be tapped. n ten about all the time, but mostly demand service from our brands in advocates will play an even greater by marketers who see the “target” a way that has only been reserved role in amplifying and legitimizing+ EVENTS: DACHIS GROUP AROUND THE WORLD shape-shifting into some sort of for celebrities, athletes, rock stars, your brand’s promise. The time brand-message-devouring monster. royalty, and the super wealthy. to start investing in an advocacyD achis Group is involved in speaking, participating, or sponsoring eventsand conferences around the globe. Last planet talking about Social Business — and we’re currently planning our 2013 Social Business Summit series. For ­ with us at speaking@dachisgroup.com. For more info and up-to-date lists visit our dachisgroup.com/events page and But, it’s important to see the con- sumer from the inside out — through So, what does this tell us about Advocacy? In short: advocates mat- program is now. Similar to the early days of the Internet, being ahead ofyear we hit nearly every continent on the speaking inquiries, please get in touch socialbusinesssummit.com. n their eyes. ter a lot to brands. And, the race to the curve will pay dividends. n
    • 36 THE SOCIAL BUSINESS JOURNAL DACHIS GROUP 515 Congress Avenue PRESORTED Suite 2420 STANDARD Austin, Texas 78701 U.S. POSTAGE PAID USA ST. LOUIS, MO PERMIT NO. 5283 Join the Social Business Council, a community of Social Business enthusiasts. We all share a common enthusiasm for bringing a new way of communicating and working to our representative organizations. We’ve come together in this peer-to-peer knowledge sharing network to learn from one another. Council membership is open to all business professionals personally involved in Social Business initiatives within a large business. If you want to share your experiences with your peers and learn from theirs, we invite you to submit your application for membership.Robert Caldera socialbusinesscouncil.comSenior Communications Manager @SocBizCPwC