Social Media and Startups


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Presentation to Pitch & Mix at Idea Space on 23 September, 2010

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  • Transitive logic1. No disagreement – 10 years ago, but not now.2. Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity. Big numbers, Facebook, Twitter, LinkedIn3. To ignore defies good biz practice and logic
  • companies focus on the tools and technologies, yet fail to understand the behaviours of their own customers online. As a result, they miss the mark.
  • Community building – Engagement, being part of the conversation around particular topics and industry communities builds a good network of potential referrals and gets notice. Being an active brand in the marketplace = good brand image. Customers want to deal with businesses they feel a connection with.
  • The internet is the story of Google and search – Google is now the de facto first place that everyone looksLips of friends/colleagues is recommendation or WoMIt is at the intersection of the Internet and WoM where Social Media’s power lies.
  • This makes intuitive sense – our experience is that in many instances we ask friends for recommendations.
  • Facebook = 500M+ 3rd largest countryTwitter = 1500% growthYouTube is 2nd largest search engineBig numbers! It’s not the platforms themselves but the general trend – people are spending time in social networks, talking about things that are important to them – your brand? Your competitors? Your industry?
  • Traditional marketing is becoming less and less effective
  • Sometimes I hear that the 60 yo FD is not on
  • Community building – Engagement, being part of the conversation around particular topics and industry communities builds a good network of potential referrals and gets notice. Being an active brand in the marketplace = good brand image. Customers want to deal with businesses they feel a connection with.
  • Creating authority - by helping people, giving away info/expertise, answering questions, providing insight, etc in the social network arena a company establishes its credibility, its value, its quality.  Customers look for the credible, quality brand.
  • Facebook now tops Google for weekly traffic in the US.
  • You are connecting with your customers – delivers ROI ROI = gain less cost/cost
  • Content – Raise knowledge of customersDemonstrate expertiseNetworkWho you know / Who they knowKnowledge baseRelationshipsRelationships are Almighty in B2BEstablish Trust thru additional touch points – online not golf course or dinnerBridge gaps between and around salesSupporting stuff that helps the sale along, shortens the cycle, secures the dealStory – How tell our business storyLinkedIn, Blog, Step outside the tools –what do they help you DO not how they lookHelp create relationship framework
  • Intrigue: No promotion on boxes, just inspirational message and URL – 95% clickedHigher purpose: not salesy, not a cheap ploy, - good message, little brandingExclusivity: those chosen to receive a box, felt honoured. At least 1 other person called to complain they didn’t get one.
  • Customer service/support
  • 3 days, 100 finalists got a Zi8, 2 winners selected; “Play” and “Sport”
  • When Domino’s employees posted disgusting videos on YouTube, the ensuing negative storm caught Domino’s Corporate unaware and unprepared.
  • Platforms that scan the social networks for mentions, conversations, keywordsRealtimeCRMSentiment taggingWorkflow
  • Customer Lifetime Value (revenue from customer and immediate family over lifetime) now becomes Customer Referral Value = a measure of advocacy and positive business value that an influencer bringsWe are now in a world that not only is forcing businesses to engage customers but to consider the influences on their business that rests among their partners, suppliers, prospects…hell, all the stakeholders in the company’s particular ecosystem.
  • Decide who will be responsible. Establish the timeframe within which we plan to achieve the (goals). Figure out what milestones should be targeted and what tools, platforms and programmes are required. And lastly, determine how we will measure the outcomes along the way.
  • Plug the programme into the organisation. Staffing - internal or new? Working across departments. Tools, configuration, workflows. Train staff – marketing, customer services, HR, product development. Create guidelines, policies, procedures
  • Day to day execution of the programme. Content production and publishing. DistributionCommunity engagement. Customer support. Business intelligence. Market research. Monitoring.
  • The currency here is probably numbers or statistics: numbers of followers/friends, number of social mentions, click-throughs, comments, website visitors, discussions, emails delivered, and, ideally, sales. But the currency might also be less defined: positive or negative press, change in sentiment about your brand, company or product, tone of discussions, and positive or negative word of mouth.This means social media monitoring tools, conversion metrics, web analytics, RSS feed counters, even things like feedback forms, surveys, and customer recommendations.
  • Social Media and Startups

    1. 1. Social media & startups<br />Presented at Pitch & Mix at IdeaSpace<br />Cambridge, 23 September 2010<br />
    2. 2. Eric Swain<br />Managing Director<br />
    3. 3. if<br />Businesses need an Internet presence<br />and<br />The Internet is increasingly social<br />then<br />Businesses must have a social element<br />David Gillespie<br />
    4. 4. What<br />social networks<br />social media<br />social business<br />
    5. 5. Don’t focus on the tools!<br />
    6. 6. It’s about people having conversations, connecting and engaging online.<br />
    7. 7. Unsocial /Social <br />unsocial<br />social<br />advertise<br />attention<br />target<br />televised<br />one to many<br />impressions<br />campaigns<br />control<br />entertain<br />participation<br />content<br />friended<br />one to one, many to many<br />expressions<br />movements<br />leverage<br />
    8. 8. Connected 2.0 Principle<br />
    9. 9. Connected 2.0 Principle<br />
    10. 10. 90-9-1 Principle<br />10<br />“In social groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule:”<br />
    11. 11.
    12. 12. Social media and startups<br />challenges<br />opportunities<br />resources<br />unknown<br />noise<br />not your customers<br />no brand<br />resources<br />need speed<br />access to passion<br />idea<br />reach<br />networks<br />fresh brand<br />freedom<br />build real relationships<br />
    13. 13. Why<br />social networks<br />social media<br />social business<br />
    14. 14. Be found when and where your customers are looking<br />This means on the Internet and the lips of friends<br />The new marketing is about being found by customers when they are looking to buy what you are selling.<br />
    15. 15. A recommendation from a friend would make 71% of people more comfortable with a product or service – more so than advertising (15%) or even personal experience (63%)<br />MediaLab<br />Startup Ideas<br />
    16. 16. Vertical engagement<br />Between the org and people<br />Campaign-based, valuable but limited<br />This is your engagement activity<br />
    17. 17. lateral engagement<br />Between people<br />For startups, this starts with the Idea<br />“We have to share this”<br />
    18. 18. 2/3<br />Of the global Internet population visit social networks<br /><br />
    19. 19. The power of social media lies in people using these tools – the creation of self-organised communities of like-minded people– making it a good way for businesses to understand, inform and connect with the people who buy their products and services. <br />
    20. 20. Re-thinking marketing<br />old marketing<br />new marketing<br />telemarketing<br />print ads<br />direct mail<br />trade shows<br />tv/radio ads<br />spam<br />interruption!<br />seo/search marketing<br />blogging<br />social media<br />rss<br />viral videos<br />word of mouth<br />permission<br />Startup Ideas<br />
    21. 21. “My customers don’t use social networks”<br />
    22. 22. Why<br />Relationship<br />Authority<br />Discovery<br />
    23. 23. relationships<br />
    24. 24. authority<br />
    25. 25. Discovery - 75/25 Google Principle <br />Search click rates<br />SEO<br />Google weighs external links over on-site keywords 75/25<br />25%<br />75%<br />
    26. 26. Discovery – Social search<br />
    27. 27. Why? - ROI<br />Cost Reduction<br />Ops efficiency<br />Reduced marketing spend<br />Shorten sales cycles<br />Cheaper customer service<br />Market research<br />Business intelligence<br />Revenue Increase<br />More transactions<br />Higher yield<br />Net new customers<br />Customer loyalty<br />
    28. 28. ROI – f.r.y.<br />Frequency<br /> Increase how often customers buy from us<br />Reach<br /> Increase net number of transacting customers<br /> Increase net number of transactions per customer<br />Yield<br /> Increase average spend per transaction<br />FRY from Olivier Blanchard<br />My illustration<br />
    29. 29. Gary Vaynerchuk grew his family wine shop from $4 million to $50 million using social media. <br />
    30. 30. $15k Direct Mail = 200 new customers<br />$7.5k Billboards = 300 new customers<br />$0 Twitter = 1,800 new customers<br />$0 Twitter = 1,800 new customers<br />
    31. 31. b2b<br />Content<br />Network<br />Expert<br />Connections<br />Show (not) Tell<br />Knowledge base<br />Relationships<br />Story<br />Tools<br />Trust<br />Soften & Support<br />Framework<br />
    32. 32. What<br />social networks<br />social media<br />social business<br />
    33. 33. Use Cases of Social<br />Social Business/Social CRM<br />Marketing<br />Sales<br />Service & Support<br />Innovation<br />PR<br />CustomerExperience<br />Marketing Insights<br />Social Sales Insights<br />Support Insights<br />Innovations Insights<br />Reputation Management<br />Seamless<br />Customer Experience<br />Brand Managment<br />Rapid Social Marketing Response<br />Rapid Social Sales Response<br />Rapid Social Response<br />Crowdsourced R&D<br />VIP Experience<br />Enterprise Collaboration<br />Social Campaign<br />Proactive Lead Generation<br />Peer-to-Peer Unpaid Armies<br />Social Event Management<br />Altimeter Group<br />
    34. 34. Marketing Case Study –<br />Video and boxes of chocolate covered grasshoppers<br />Connection via social networks – not promotion, just conversation, photos, user videos, etc<br /><br />1st month: <br /><ul><li>93% increase in website clicks
    35. 35. 187,000 video views
    36. 36. 1,461 Tweets to 1M+ followers
    37. 37. More buzz than previous 6 yrs</li></li></ul><li>Sales Case Study – HP 31 Days of the Dragon<br />Promotion of new laptop system – HDX Dragon<br />Blogger outreach only<br />31 systems to giveaway – bloggers created contests for their readers<br /><ul><li>25,000 entries, website traffic up 14%
    38. 38. 50M impression, 10,000 videos created, 380,000 discussions
    39. 39. Dragon sales up 84%, PC sales up 10% (sustained)
    40. 40. blog traffic up 150% - Win/Win</li></li></ul><li>Sales Case Study – HP 31 Days of the Dragon<br />HP HDX Dragon Sales Results<br />Giveaways end<br />Even after the end sales remain<br />well above normal – long term <br />effects<br />Giveaways begin<br />
    41. 41. Customer Experience Case Study - FreshBooks<br />Customer-centric approach<br />Twitter engagement key<br />Userbase up 300% in 2 years<br />
    42. 42. Consumer Insights Case Study - Kodak<br />Dismay in the social networks at the name of the new Zi8<br />Kodak launched a contest to let users choose the next name.<br />1000s of suggestions via Twitter and blog<br />Press coverage everywhere<br />
    43. 43. PR Case Study – Nestlé<br />Greenpeace “ad” on YouTube<br />Facebook censorship<br />Tidal wave of attacks<br />Have a plan<br />
    44. 44. Domino’s were slow to react initially, but came good.<br />
    45. 45. How<br />social networks<br />social media<br />social business<br />
    46. 46. How<br />
    47. 47. Listen & Learn<br />Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity.<br />To be accurate in your social strategy, you must know the specific behaviors of your customer base.<br />43<br />
    48. 48. Socialgraphics asks key questions<br />Where are your customers online?<br />What are your customers’ social behaviors online?<br />What social information or people do your customers rely on?<br />What is your customers’ social influence? Who trusts them?<br />How do your customers use social technologies in the context of your products.<br />44<br />
    49. 49. Monitoring and Graphing<br />
    50. 50. The social customer<br />Social Landscape<br />CLV<br />CRV<br />Customer<br />Social Customer<br />“The Social Web is distributing influence beyond the customer landscape, allocating authority amongst stakeholders, prospects, and peers.” – Brian Solis<br />
    51. 51. Strategy<br />Align social with strategic business goals<br />Refer to what you learned monitoring<br />Set measureable objectives (measure the right things)<br />Create strategic plan and financial model<br />Develop tactics to achieve strategy<br />Who? What? When? Where?<br />
    52. 52. Implement / Integrate<br />Staffing<br />Cross-departmental<br />Tools, configurations, workflows<br />Training<br />Company guidelines, policies, procedures<br />
    53. 53. Manage<br />Customer support<br />Community engagement<br />Market research<br />Business intelligence<br />Day to day execution<br />Monitoring<br />Distribution<br />Content production/publishing <br />
    54. 54. Measure<br />Are the objectives being met?<br />Do we need to reassess or refine the strategy/tactics?<br />Are we successful?<br />
    55. 55. How<br />
    56. 56. Take Away<br />52<br />Start small, start now<br />Pick a goal<br />Where to start? Align social with strategic goals<br />Startup Ideas<br />Examine your 2010 goals<br />Pick one where social can have an impact <br />
    57. 57. Thank you!<br />Eric Swain<br />+44 7773 798259<br /><br /><br />@ericswain<br />