16. Surprising Sometimes!
Where your fans are…
…and what they share
Special Thanks to
BlaM4C and Marshalus
& more than 4000 customers before Dell
was on Flickr
Global Marketing
24. Proof Points
• We found that customers who engage with companies over
social media spend 20 percent to 40 percent more
money with those companies than other customers. They
also demonstrate a deeper emotional commitment to the
companies, granting them an average 33 points higher Net
Promoter® score (NPS®)
Bain
• More than 60 percent of
Internet-connected indi-
viduals in the US now en-
gage on social media
platforms every day. IBID
Global Marketing
27. Application Generates Business Benefit
conversion & margin lift revenue/visitor is 3X higher in Japan; 134% higher in US
62 Countries
14 Languages
Over 170,000 Reviews Submitted
14,461 Different Products Reviewed
75% of All Ratings 4 or 5 Stars
Global Marketing
27
31. ROI?
Business Value
across the full
customer
lifecycle
31 Global Marketing
32. Social Media Conversations: Not Just Marketing.
• People are speaking to each other in a powerful new way
• These networked conversations are enabling powerful
new forms of social organization and knowledge
exchange to emerge.
• As a result, markets are getting smarter, more
informed, more organized.
• Participation in a networked market changes people
fundamentally.
Global Marketing
33. Social commerce transcends transactions
• Insight: Social media improves
Dell’s reach and share of voice
• Insight: SM keeps customers • Insight: Established causality
engaged, provides solutions between social media activity
and improves loyalty. and purchase
Dell.com
Our External
Communities Communities
• Insight: Social media based • Insight: Social Media provides
support improves sentiment high Business Value and
and correlates with higher contributes to demand gen
revenue vehicle
Global Marketing
34. The world around us is changing
Control
is not as successful
as influence
companies that embrace this the fastest will win
• Disintermediation between the customer and the expert is happening already
• Users spending more time across the web engaging – beyond company’s website
• Customers trust their peers more than anyone else
• Traditional methods are not scaling; Does Social Media?
34 Global Marketing
35. Dell’s Direct & Online Heritage: Critical Enablers
Leader in online
First to sell complex First company to frictionless
configurable items hit $1M a day in commerce from
online revenue order to delivery
One of the first One of the first
companies to Early adopter of
to launch online social media
discussion forums launch online
support
36. Six years of experiments and experience
December 2006 October 2007 May 2008 June 2009
Ratings and Michael Dell quote in Business Week Dell Outlet achieves Global Twitter Dell named #1 most
February 2006
Jeff Jarvis story quote, “These conversations are social brand in
Michael Dell Asks reviews on $0.5M in sales via Twitter revenues of $6.5 M
going to occur whether you like it or not. Do you ranking of 100 top
Why don’t we reach out and help Dell.com want to be part of that or not? My argument is you
Community team active on Twitter
brands
bloggers with tech support issues?
absolutely do. You can learn from them. You can Small Business
improve your reaction time. And you can be a blog launched
better company by listening and being involved in
that conversation.”
August 2006
Blog outreach
expands beyond
tech support February 2007 March 2008 March 2010
Accepted Solutions China Micro-
IdeaStorm Launched
A voting based site allowing launched on Community January 2009 June 2009 Blogging
customers and others to submit Dell France begins Online Dell Organizes in to $2M+ Sales
ideas for Dell. Community Outreach 4 customer focused via Twitter
business units Social Media Listening
Command Center
2006 2007 2008 2009 2010 2011
July 2006 Dell Social Media and
Community University
Direct2Dell launched June 2007 April 2008 2009 launched/5,000 team
Today Direct2Dell exists in members trained by
English, Spanish, Norwegian,
Dell joins Twitter Inside IT launched Dell TechCenter
Blog focused on business end of year
Japanese and Chinese. January (Aug.)
Dell launches 2008
customers, and Cloud
Computing.
EmployeeStorm Dell aligns
Internal Blogs
organization Spring 2009 December 2009 Altimeter recognizes Dell with
Launched for
for success
Employees. Some Members of Huffington Post Blog
“Open Leadership Award for
Community and Innovation and Execution”
Conversations (Oct.)
deployed within each Dell
April 2006 of the new Dell launches
January 2007 B2B pages
Tech support StudioDell launched Business units
Facebook
outreach to blogs Dell’s video and podcast (Jun.)
site, with helpful tips and February 2008
tricks. Eventually expanding
this into the YouTube channel Twitter expanded
November 2007
making sharing easier.
DellShares launched
The first investor relations blog by June 2008
a public company.
Channel blog
launched
36 Global Marketing
37. B2B Storefront
• Social media has a huge impact on Dell’s sales funnel, from
SMB to Enterprise. Just as consumers are spending more time
in social channels, so are B2B customers.
Analyst firm
SiriusDecisions
estimates that by
2015, more than
75% of leads will
be sourced
through inbound
channels like social
media. This chart
shows where
social platforms
and content types
typically reside in
the sales funnel.
Global Marketing
At Dell, we are keenly aware of storefronts shifting in time. The digital rise that resulted in the shift to ecommerce is now being impacted by a shift to social, returning an element of human intimacy to what had become electronic transactions. The personal relationships built by mom and pop stores are now in reach of the largest online organizations, bringing a new element to what ‘direct’ means. This presentation explores the online ecosystem and its importance to social commerce strategies.Shopping behavior has changed dramatically in the past century. In horse and buggy days, purchases happened close to home in the general stores.
In the mid-1920s, with the growing popularity of the automobile and mass transit, the lowered cost of travel allowed consumers to be more mobile. Going into the big city to shop, especially for higher ticket items, became common.http://www.rootsweb.ancestry.com/~arbradle/places/warren_1920s.html
After WWII, the interstate roadway system diminished transportation costs to the suburbs and by the mid-1940s, large department stores were building outside the central business district for the first time.
In 1956, the first “enclosed shopping center”, read “mall”, was opened near Minneapolis. Two rival merchants made the decision and discovered, to their surprise, that placing the two stores together increased business for both of them. Central Place theory was born. http://media.photobucket.com/image/recent/micechat/SAMLAND/2011/malls/pic1.jpg
According to The National Mail Order Association, Benjamin Franklin is believed to have been the first cataloguer in the United States. In 1744, he formulated the basic mail order concept when he produced the first catalogue, which sold scientific and academic books. He is also credited with offering the first mail order guarantee: "Those persons who live remote, by sending their orders and money to B. Franklin may depend on the same justice as if present". The earliest surviving mail-order business, now known as HammacherSchlemmer, was established by Alfred Hammacher in New York City in 1848. Offering mechanic's tools and builder's hardware, its first catalogue was published in 1881.[3] Now known for offering an eclectic assortment of items, it is America's longest running mail-order business.Catalogues removed an element of intimacy and personality, the loss increased with the phone and eCommercehttp://www.wishbookweb.com/
The home shopping/electronic retailing industry was created in 1977, when small markettalk radio show host Bob Circosta was asked to sell avocado-green-colored can openers live on the air by station owner Bud Paxson, when an advertiser traded 112 units of product instead of paying his advertising bill. Hesitant at first, Circosta reluctantly obliged – and to both men's great surprise, all 112 avocado green can openers sold out within the hour. Paxson sensed the vast sales potential of home-based commerce, and founded the world's first shopping channel on cable television, later launching nationwide with the Home Shopping Network (rebranded as HSN). Bob Circosta was America's first ever TV home shopping host.The Home Shopping Club launched on local cable in June 1982. Two years later, sales were $11 million. In 1985, the Home Shopping Network (HSN) was born.
1979: Michael Aldrich invented online shopping[2]Aldrich invented online shopping by connecting a modified domestic TV to a real-time transaction processing computer via a domestic telephone line. The intellectual basis for his system was his view that videotex, the modified domestic TV technology with a very simple menu-driven human–computer interface, was a 'new, universally applicable, participative communication medium-the first since the invention of the telephone.' This enabled 'closed' corporate information systems to be opened to 'outside' correspondents not just for transaction processing but also for messaging [e-mail] and information retrieval and dissemination [later known as e-business.][5]1984: In April 1984, CompuServe launches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.[3]1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer. It opened for commercial use in 1991. In 1994 other advances took place, such as online banking and the opening of an online pizza shop by Pizza Hut.[1] During that same year, Netscape introduced SSL encryption of data transferred online, which has become essential for secure online shopping. Also in 1994 the German company Intershop introduced its first online shopping system. 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.In 1995 Amazon launched its online shopping site, and in 1996 eBay appeared.[1]1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb. In 1997, Dell sells $1million a day.
Entering another period of rapid innovation and change in the role technology plays in how we run our business; the products and services we offer and how we communicate, collaborate and respond to our customers – in a b2c or b2b contextRecent report released by Dell and Intel – entitled the Evolving Workforce we have explored some of the ways technology is changing the workplace again. And some of the social, technological and economic factors that are influencing that – gen Y entering our workforces (the first fully Internet generation); consumerisation of business technology; expectations of corporate transparency in the social era etc.Focus here on how we have changed as a business with the emergence of the social web – or social media. But this is just one of the ways our relationships and dialogue with customers of all types have changedCustomers are using the social web throughout their personal and business life. They increasingly expect their financial service provider to engage directly with them or provide services and information there too. Clearly in retail banking but increasingly in the b2b world too.Transparency/access and online reputaiton is a dominant factor in who we choose to buy from or work with.We also expect to be asked for feedback and to see the company respond with improvements or new products and services.We turn to the social web to assess the quality not just of the company’s products and services; but to see what customers think of them – and to ask for advice.We have too much choice so we turn to trusted intermediaries to help us navigate – and we don’t need deep relationships with these ‘advisors’ to trust what they say.Your brand exists not on your website or in your advertising alone – it is not only defined (and certainly not controlled) by you…it is defined by what comes up on a search engine or is said in Twitter. It is not within your 100% control…but this is not always a bad thing.As well as helping your run your businesses more efficiently – the change technology is bringing and developments like social media have the ability to turn that heavy investment to your commercial advantage.Even in regulated sectors like finance the same opportunities and threats hold true. A bad rating for service on an influential blog or a recommendation for a product on an online financial community can make the difference between success or failure.Companies or brands that ‘get it’ or embrace social web will succeed. Those that don’t – won’t.
While technology has taken personality and intimacy out of the experience, social elements continued to play a role.
Social is already part of your commerce, whether you are aware of it or not
And those commerce conversations are happening at an increasingly rapid pace
Globally
Social behavior patterns foretell purchase decisions. Identifying those patterns and optimizing for them increases conversion, margin and speed to decision.
Social commerce is not putting a buy button in Facebook.
Perhaps the strongest sign of our moving from merely exploring or settling new lands, is that we have also established the value and place for the general store in our communitiesBy delighting and connecting to customers, they are coming back for more and we are able to focus more on exactly what it is that enables them to do moreBy our work in measuring what matters, we now know that social media is a decision factor in both the consumer and b2b space; that social media is not simply about awareness or brand sentiment…it is that; but it is also about every aspect of the customer lifecycle and impacts the complete customer lifecycle….It impacts loyalty, and the amount returning customers purchase from Dell.This work is not done, but we are well on our way and we know where we are going Improves Dell’s reach and share of voice; we know there is causality between social media activity and purchase, it provides high business value and contributes to demand generation, Social media based support improves sentiment and correlates with higher revenue Engaged social media customers improve loyalty
Source: Cluetrain Manifesto Global Marketing
Ongoing commerce is about customer relationships and the ongoing experience. Transaction is one point on a continuum. People think social commerce is social conversion. Social commerce has a different timeline than eCommerce.
August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.August 2006Blog Outreach Expands Beyond Tech SupportEngagement with anyone who commented about the company. Business model and other issues considered.June 2007Dell joins TwitterWhy don’t we reach out and help bloggers with tech support issues?February 2008Twitter ExpandedStart experimenting with Twitter for business– another venue to help customers, but also thanking Dell customers. Outreach leads to some Twitters asking for help on purchases.May 2008Dell Outlet Achieves $0.5M in Sales via TwitterCommunity team active on TwitterJune 2009 $2M+ Sales via TwitterDell outlet on Twitter surpasses $2 million in sales with another $1 million dollars in sales at dell.com 2009Dell TechCenterA Collaborative Community for Datacenter pros grows by 400%December 2009Huffington Post BlogDell’s VP of Social Media and Community, Manish Mehta, begins blogging at Huffington PostJune 2009Global Twitter Revenues of $6.5 M Community across the social web =3.5 million direct customer connections
Imagine this kind of intimacy taking place across onlineThe new storefront is every part of business and everywhereSMEs and Customers are your new sales force Social patterns leading to sales
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.
Creating a social continuum puts the storefront everywhere. Paid, Owned and Earned should also be a continuum. Avoid thinking in silos.Social is an always-on activity, so the new storefront never closes. To optimize, shoot for real time engagement.Your customers have become your extended sales and marketing team. So the new storefront is, potentially, everyone. This includes your employees, who should be the face of the company.
