The Business Value of
Social Networking
October 27, 2009
Presented by:
Chris Coldewey, Ian Cruickshank, Marie Foxall,
Nikh...
2
what the bleep?

(Source: wikipedia.org)
3
what the bleep?
• Social media are media designed to be disseminated

through social interaction, created using highly
acc...
what the bleep?
•Social media supports the human

• Social media are media interaction, using
need for social designed to ...
4
Agenda
• What’s changed
• Tools
• Current uses
• What’s the ROI
• Who’s responsible
• What are the risks

5
Agenda
• What’s changed
• Tools
• Current uses
• What’s the ROI
• Who’s responsible
• What are the risks

5
The shift

From Portals to Communities

6
The shift

From Portals to Communities

6
So what are people doing
online?
Sent or received email

99%

Used a search engine

96%

Visited news or information websi...
So what are people doing
online?
Sent or received email

99%

Used a search engine

96%

Visited a blog
Comparison shopped...
So what are people doing
online?
Sent or received email

99%

Used a search engine

96%

Visited a blog
Comparison shopped...
What are they doing in
social media?
Use the Internet to contact someone you
have lost touch with

51%

Participate in liv...
What are they doing in
social media?
Use the Internet to contact someone you
have lost touch with

51%

Participate in liv...
...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yah...
...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yah...
...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yah...
...and what sites are
people using?
0
Facebook
Myspace
Twitter
Classmates
MyLife
Windows Live Profile
Buzznet
Bebo
Digg
Yah...
Top misconceptions

10
Top misconceptions
• Social media is only right for
certain brands

10
Top misconceptions
• Social media is only right for
certain brands

10
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Top misconceptions
• Social media is only right for
certain brands

• Social media is all about

getting traffic — and quic...
Social Media Tools
• Engaging with your customers
• ...where they are
• ...where you are
• Internal use

11
Engaging with your
customers...where they are

Broad social
network platforms

Niche social
network platforms

12
Engaging with your
customers...where they are

Realtime, direct
communication

Engaging with
each other
...about you

13
Engaging with your
customers...where you are
Blogs, videos, sites, products

14
Internal
Communication
Knowledge Management
Project Management
Recruitment

15
How is Social Media
being used?
16
Marketing & Metrics
Using trackable links
allows the company to
measure the
effectiveness of the
message.

Establishing me...
Marketing & Metrics

18
Marketing & Metrics

19
Research & Analysis

Reporters assess
consumer
interest in news
topics based on
social media
response.

20
Troubleshooting

21
Measuring Success
• “Social software in business” survey
- 86% of professionals using social media for
business

• 57% for...
Measuring Success: Dell
• @DellOutlet has been using Twitter to post
offers and answer questions since 2007

• Now has 1.3...
Measuring Success:
Salesforce.com
• Launched Idea Exchange in 2006 to collect and

prioritize product development ideas fr...
Measuring Success
• The key to measuring success is knowing
what success looks like for you

- Who do you want to reach?
-...
So, whose responsibility is
Social Media?
• Here’s some common responses
• The Public Relations Departments’!
• Social Med...
Findings from the
Digital Readiness Report 2009
278 public relations, marketing and
human resource professionals in US–
ba...
So far, Public Relations is leading the Social Media
Revolution inside organizations of all types and sizes.
(Source: http...
Meet some interesting
‘Others’
• Director of Internal
Audit

• General Manager for
Online Communities

• A former Barista
...
Meet some interesting
‘Others’
• Director of Internal
Audit

The Starbucks account is for
• General Manager
Online Communi...
Are we ready for Social
Media: Act II?
• The need for business
specific metrics

• How far can Marketing
take this?

• A cu...
The Risks of Social
Media
• Branding issues
• House of Brands vs.
Branded House

• One-way to two-way
communication

• Spe...
Pepsi: “AMP Up Before
you Score” iPhone App

32
Pepsi: “AMP Up Before
you Score” iPhone App
“Our app tried 2 show the humorous lengths
guys go 2 pick up women. We apologi...
Honda: Crosstour CUV

34
Honda: Crosstour CUV

34
Electronic Arts: Sin-toWin Contest

35
Electronic Arts: Sin-toWin Contest

35
Electronic Arts: Sin-toWin Contest

35
Electronic Arts: Sin-toWin Contest

36
The Risks of Social
Media

37
The Risks of Social
Media
“There is no such thing as bad
publicity...”

37
The Risks of Social
Media
“There is no such thing as bad
publicity...”
“...except your own obituary.”
- Brendan Behan (192...
Conclusion
• The conversation is happening
• Start listening now
• Begin the conversation at your

organization about how ...
Questions?

39
Upcoming SlideShare
Loading in …5
×

The Business Value of Social Media

30,499 views
29,624 views

Published on

Published in: Social Media, Technology, Business

The Business Value of Social Media

  1. The Business Value of Social Networking October 27, 2009 Presented by: Chris Coldewey, Ian Cruickshank, Marie Foxall, Nikhil Jagtiani, Sharlene Myers, and Jason Robertson 1
  2. 2
  3. what the bleep? (Source: wikipedia.org) 3
  4. what the bleep? • Social media are media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media supports the human need for social interaction, using Internet- and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Businesses also refer to social media as user-generated content (UGC) orconsumer-generated media (CGM). (Source: wikipedia.org) 3
  5. what the bleep? •Social media supports the human • Social media are media interaction, using need for social designed to be disseminated through social interaction, created using highly accessible and scalable and web-based Internet- publishing techniques. Social media supports the human need for social interaction, using Internettechnologies to transform and web-based technologies to transform broadcast media monologues (one to many) into social media broadcast media monologues (one dialogues (many to many). It supports the democratization of knowledge and information, to many) people from content consumers into content transforming into social media producers. Businesses also refer to social media as usergenerated content (UGC) orconsumer-generated dialogues (many to many). media (CGM). (Source: wikipedia.org) 3
  6. 4
  7. Agenda • What’s changed • Tools • Current uses • What’s the ROI • Who’s responsible • What are the risks 5
  8. Agenda • What’s changed • Tools • Current uses • What’s the ROI • Who’s responsible • What are the risks 5
  9. The shift From Portals to Communities 6
  10. The shift From Portals to Communities 6
  11. So what are people doing online? Sent or received email 99% Used a search engine 96% Visited news or information websites 88% Comparison shopped 84% Visited a newspaper website 82% Conducted online banking 77% Visited a magazine website 67% Used Ig to chat with friends or family 65% Listened Internet to radio stations 59% Visited a blog 58% Visited/browsed online social networks Played games online against strangers Played games online against friends 44% 38% 34% (Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520)) 7
  12. So what are people doing online? Sent or received email 99% Used a search engine 96% Visited a blog Comparison shopped Visited news or information websites 88% 84% 58% Visited a newspaper website 82% Conducted online banking 77% Visited a magazine website 67% Used Ig to chat with friends or family 65% Listened Internet to radio stations 59% Visited a blog 58% Visited/browsed online social networks Played games online against strangers Played games online against friends 44% 38% 34% (Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520)) 7
  13. So what are people doing online? Sent or received email 99% Used a search engine 96% Visited a blog Comparison shopped Visited news or information websites 88% 84% 58% Visited a newspaper website 82% Conducted online banking 77% Visited a magazine website 67% Visited/browsed online Listened Internet to radio stations Visited blog sociala networks Used Ig to chat with friends or family 44% Visited/browsed online social networks Played games online against strangers Played games online against friends 65% 59% 58% 44% 38% 34% (Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520)) 7
  14. What are they doing in social media? Use the Internet to contact someone you have lost touch with 51% Participate in live, online chat over the Internet 46% Visit/browse an online social network or online community 44% Take part in computer games with other people online 32% Download/browse videos from a video sharing network or online community 32% Participate in an online forum or bulletin board discussion 31% Use an online personals/dating/ introduction service Upload videos to a video sharing network or online community None of the above 17% 12% 19% (Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824)) 8
  15. What are they doing in social media? Use the Internet to contact someone you have lost touch with 51% Participate in live, online chat over the Internet 46% Visit/browse an online social network or online community In Q4’08 - 5.4 hours/week spent on social networking sites – about 1/3 of all online time – 44% Take part in computer games with other people online 32% Download/browse videos from a video sharing network or online community 32% Participate in an online forum or bulletin board discussion 31% Use an online personals/dating/ introduction service Upload videos to a video sharing network or online community None of the above 17% 12% 19% (Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824)) 8
  16. ...and what sites are people using? 0 Facebook Myspace Twitter Classmates MyLife Windows Live Profile Buzznet Bebo Digg Yahoo! Buzz Linkedin DeviantART Tagged hi5 Gaia Online 20000 40000 60000 80000 (000) (Source: May 2009, eMarketer) 9
  17. ...and what sites are people using? 0 Facebook Myspace Twitter Classmates MyLife Windows Live Profile Buzznet Bebo Digg Yahoo! Buzz Linkedin DeviantART Tagged hi5 Gaia Online 20000 40000 LinkedIn 60000 80000 90% (000) (Source: May 2009, eMarketer) 9
  18. ...and what sites are people using? 0 Facebook Myspace Twitter Classmates MyLife Windows Live Profile Buzznet Bebo Digg Yahoo! Buzz Linkedin DeviantART Tagged hi5 Gaia Online 20000 40000 LinkedIn 60000 80000 90% Facebook 97% (000) (Source: May 2009, eMarketer) 9
  19. ...and what sites are people using? 0 Facebook Myspace Twitter Classmates MyLife Windows Live Profile Buzznet Bebo Digg Yahoo! Buzz Linkedin DeviantART Tagged hi5 Gaia Online 20000 40000 LinkedIn 60000 80000 90% Facebook 97% (000) Twitter 2,681% (Source: May 2009, eMarketer) 9
  20. Top misconceptions 10
  21. Top misconceptions • Social media is only right for certain brands 10
  22. Top misconceptions • Social media is only right for certain brands 10
  23. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly 10
  24. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly 10
  25. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” 10
  26. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” 10
  27. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” • “I don’t need a professional to do social media for me” 10
  28. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” • “I don’t need a professional to do social media for me” 10
  29. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” • “I don’t need a professional to do social media for me” • Social media is just a fad 10
  30. Top misconceptions • Social media is only right for certain brands • Social media is all about getting traffic — and quickly • “By using social media we will lose control of our brand’s image” • “I don’t need a professional to do social media for me” • Social media is just a fad 10
  31. Social Media Tools • Engaging with your customers • ...where they are • ...where you are • Internal use 11
  32. Engaging with your customers...where they are Broad social network platforms Niche social network platforms 12
  33. Engaging with your customers...where they are Realtime, direct communication Engaging with each other ...about you 13
  34. Engaging with your customers...where you are Blogs, videos, sites, products 14
  35. Internal Communication Knowledge Management Project Management Recruitment 15
  36. How is Social Media being used? 16
  37. Marketing & Metrics Using trackable links allows the company to measure the effectiveness of the message. Establishing metrics related to sales leads to a better analysis of social media’s potential ROI. 17
  38. Marketing & Metrics 18
  39. Marketing & Metrics 19
  40. Research & Analysis Reporters assess consumer interest in news topics based on social media response. 20
  41. Troubleshooting 21
  42. Measuring Success • “Social software in business” survey - 86% of professionals using social media for business • 57% for marketing • 39% for internal collaboration and learning • 29% for customer support - 84% not measuring the ROI (Source: eMarketer.com) 22
  43. Measuring Success: Dell • @DellOutlet has been using Twitter to post offers and answer questions since 2007 • Now has 1.3 million Twitter followers (Oct 2009) • Total: $3 million in revenue directly attributed to Twitter activity (June 2009) - $2 million direct Dell Outlet sales - $1 million other Dell sales (Source: Direct2Dell) 23
  44. Measuring Success: Salesforce.com • Launched Idea Exchange in 2006 to collect and prioritize product development ideas from customers - Allows customers to post ideas they’d like implemented in the next software update - Community votes on the ideas, helping set priorities • 5,000 ideas received in first year, customer votes helped establish which would be most valued • Salesforce put out four new releases in 2007 (vs. two in 2006), with twice as many new features per release • Half of new features come from Idea Exchange (Source: Li, Charlene and Bernoff, Josh. Groundswell: Winning in a World Transformed by Social Technologies) 24
  45. Measuring Success • The key to measuring success is knowing what success looks like for you - Who do you want to reach? - What do you want them to do? - What’s the best way to get them to take action? How can you measure it? • • Think about measurement from the beginning and build it in 25
  46. So, whose responsibility is Social Media? • Here’s some common responses • The Public Relations Departments’! • Social Media is the responsibility of those who champion it. • Social Media naturally belongs to HR and Training • This Social Media thing is quite complex so specialists will emerge with their own box on the Organization chart • Social Media cannot be controlled, so nobody will own it, there will be no specialists, everybody will just use it! (Source:http://www.smallbusinessnewz.com/blogtalk/2008/08/05/where-does-social-media-responsibility-fall) 26
  47. Findings from the Digital Readiness Report 2009 278 public relations, marketing and human resource professionals in US– based organizations of varying types and sizes were surveyed to identify trends regarding their approach to social media Eric Schwartzman Tom Smith Don Spetner Barbara McDonald 27
  48. So far, Public Relations is leading the Social Media Revolution inside organizations of all types and sizes. (Source: http://www.ipressroom.com/pr/corporate/social-media-communications-skills-survey.aspx) 28
  49. Meet some interesting ‘Others’ • Director of Internal Audit • General Manager for Online Communities • A former Barista • Community Animator (Source : http://mashable.com/2009/01/21/best-twitter-brands/) 29
  50. Meet some interesting ‘Others’ • Director of Internal Audit The Starbucks account is for • General Manager Online Communities followed by 421,799 people! • A former Barista • Community Animator (Source : http://mashable.com/2009/01/21/best-twitter-brands/) 29
  51. Are we ready for Social Media: Act II? • The need for business specific metrics • How far can Marketing take this? • A culture of Human Business - Through the doors of Corporate HR and the CEO’s office (Source : http://brandsavant.com/208/whats-wrong-with-social-media-marketing-strategy/) 30
  52. The Risks of Social Media • Branding issues • House of Brands vs. Branded House • One-way to two-way communication • Speed of communication (Source : eMarketer.com) 31
  53. Pepsi: “AMP Up Before you Score” iPhone App 32
  54. Pepsi: “AMP Up Before you Score” iPhone App “Our app tried 2 show the humorous lengths guys go 2 pick up women. We apologize if it's in bad taste & appreciate your feedback.” (Source : http://www.msnbc.msn.com/id/33310411/ns/technology_and_science-tech_and_gadgets/) 33
  55. Honda: Crosstour CUV 34
  56. Honda: Crosstour CUV 34
  57. Electronic Arts: Sin-toWin Contest 35
  58. Electronic Arts: Sin-toWin Contest 35
  59. Electronic Arts: Sin-toWin Contest 35
  60. Electronic Arts: Sin-toWin Contest 36
  61. The Risks of Social Media 37
  62. The Risks of Social Media “There is no such thing as bad publicity...” 37
  63. The Risks of Social Media “There is no such thing as bad publicity...” “...except your own obituary.” - Brendan Behan (1923-1964) 37
  64. Conclusion • The conversation is happening • Start listening now • Begin the conversation at your organization about how to engage in a way that is right for you 38
  65. Questions? 39

×