Introducing the Analogic framework for business planning applications
Visit Lanarkshire Nov 2011
1. ENERGISE2-0.COM
Social Media for Sustained
Business Growth
Dr Jim Hamill – jim.hamill@energise2-0.com
Alan Stevenson – alan.stevenson@energise2-0.com
Vincent Hamill – vincent.hamill@energise2-0.com
www.energise2-0.com
6. Social Media: The State of Play
Where are you with social
media?
What progress has been
made?
Where are you going?
ENERGISE2-0.COM
7. Our View on Progress Made
Interest and enthusiasm has grown rapidly
Everyone is now a social media expert
Channels are being set up
But lack of strategic planning leads to
problems down the line - resourcing, content,
customers, performance measurement etc
A broadcast mentality prevails…….
ENERGISE2-0.COM
8. Is there something fundamentally
wrong with our approach to Social
Media?
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9. Something Wrong…..
In too many companies, social media is seen as just another
PR/marketing channel for broadcasting messages AT
customers telling them how good we are
Are our customers listening
anymore?
The rules of the game
have changed!
ENERGISE2-0.COM
10. Our Role Today
Encourage you to adopt a new
approach to social media –
an ‘outside-in’,
customer led approach
Use social media as an
engagement platform for talking
WITH rather than AT customers
Also – adopt a strategic approach
‘Social Media Planning Pays’
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11. Be Social
New ‘mindsets’ are
required to be successful in
social media
‘BE SOCIAL BEFORE
DOING SOCIAL’
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12. Two Videos
• The Social Media Revolution
• The Advertiser/Customer Break-Up
Ask yourself – So What?
Implications for my business?
Implications for Lanarkshire/Scottish tourism?
ENERGISE2-0.COM
15. The rules of the game have changed
The 5 key things to remember
about Social Media
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16. 1. It’s a Revolution
A fundamental and revolutionary change
in online behaviour, expectations and
the online customer experience.
The end of the ‘read only’ internet
Content generated by the network for
the network
We are no longer passive consumers of
content/brand messages
ENERGISE2-0.COM
17. 2. It’s Social
A conversation
not a broadcast
platform
Conversations are taking
place relevant to your
brand – are you listening?
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19. 3. Power Shift
Social media empowers
customers, empowers the network
We no longer control the brand
The brand becomes the customer
experience of the brand –
experiences that are widely
shared online
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21. 4. Declining Effectiveness
Declining effectiveness of traditional
approaches to sales and marketing
Does anyone listen any more?
We are no longer passive sheep
waiting to be ‘driven’ to your web site
If you treat us like sheep, we will tell you
to ‘flock off’.
ENERGISE2-0.COM
22. Do You Listen?
Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare
(www.slideshare.com) ENERGISE2-0.COM
24. 5. The End of Business as Usual
New ‘mindsets’, new business
approaches and new performance
measures are required
NOT a broadcast medium. Its
about listening to and engaging
with customers, partners, your
community, your tribe
This is something we are not very
good at doing. We prefer telling
people how good we are
ENERGISE2-0.COM
25. The End of Business as Usual
‘Winners’ will be those organisations who fully utilise
the interactive power of Web 2.0 technology for
engaging with and energising customer and network
relationships
ENERGISE2-0.COM
26. New Performance Measures
• Business success depends on the quality of your customer
base; the strength of the relationship you have with quality
customers; and your ability to leverage that relationship
• In a social media era, business success depends on the
– Quality of your network
– Relationship strength
– Ability to leverage
The 6Is Approach
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27. Performance Measurement
Involvement – network/community numbers/quality, time spent,
frequency, geography
Interaction – actions they take – read, post, comment, reviews,
recommendations
Intimacy – affection or aversion to the brand ; community sentiments,
opinions expressed etc
Influence – advocacy, viral forwards, referrals and recommendations,
social bookmarking
Insight – customer insight
Impact – business impact
Social Media Monitoring Tools –Audit, Assess, Impact
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28. The ‘6Is’ Approach
Insight and
Impact
Influence Involvement
Intimacy Interaction
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29. Bob Dylan
Come gather 'round people
Wherever you roam
And don’t criticise
What you can't understand
Your sons and your daughters
Are beyond your command
Your old road is
Rapidly agin‘
Then you better start swimmin’
Or you'll sink like a stone
For the times they are a-changin’
ENERGISE2-0.COM
31. Inbound Marketing
Spread your content as widely
as possible to get found
Pull people to your
web site, blog etc
Flood your ‘funnel’ with
suspects
Analyse and Convert
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37. The Customer Manifesto
We are not sales suspects,
prospects or leads. We do not
want to be converted
We are no longer an ‘audience’
We are people. In fact,
‘We Are The People’
We are your customers and
we are King! Social media
empowers us. We control the
Information Age.
Welcome to our world, not yours! ENERGISE2-0.COM
38. The Customer Manifesto
Don’t treat us like passive sheep
waiting to be driven to your web site or blog
Use social media to deliver exceptional
Customer Experiences
That way, we will become brand
advocates and ‘spread the word’ for you
Our network will listen more to us than you
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39. We are the Children of the Revolution
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41. Practical Advice
and Next Steps to
Avoid the Road to
Nowhere
‘Social Media Planning Pays’
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42. ‘Getting There’
• Get more involved
• Learn more
• Develop a strategy
• Implement
• Monitor performance and business impact
‘Be Customer Led’
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48. Social Media Strategy and Action Plans
• Use a simplified Balanced Scorecard approach to social media
strategy development and implementation
• Will ensure that your future social media actions and
initiatives are fully aligned with and supportive of agreed
business goals; that KPIs are agreed for evaluating on-going
social media performance, business impact and ROI; and that
all key success factors are considered, including organization,
people and resource aspects
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49. Develop a Strategy
• What is the overall social media vision for your organization?
• What are the key objectives and targets to be achieved?
• Who are your customers?
• What are the key actions and initiatives you need to take?
• Organisation, resource and people issues
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50. Social Media Strategy Map
Brief statement of your overall 2.0/Social Media Vision and Mission
Strategic Objectives
Strategic Objectives
KPIs / Targets KPIs / Targets
KPIs / Targets KPIs / Targets
Customer Perspective
Customer Customer Customer Customer
Group 1 Group 2 Group 3 Group 4
Internal Management Perspective
2.0/Social Media 2.0/Social Media 2.0/Social Media 2.0/Social Media
Initiative 1 Initiative 2 Initiative 3 Initiative 4
- Objectives - Objectives - Objectives - Objectives
- KPIs - KPIs - KPIs - KPIs
- Targets - Targets - Targets - Targets
- Actions - Actions - Actions - Actions
Organisation Perspective
Organisation Resource People
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51. Key Questions to Address
• What is the overall social media vision for your organisation?
• What are the key objectives and targets to be achieved from
social media? Are these fully aligned with and supportive of
your overall business goals and objectives?
• Who are your customers? Where do you find them ‘hanging
out’ on social media? How can you best engage with them?
• What are the main Social Media Actions and Initiatives you
need to take – short, medium and longer term?
• What generic social media strategy should you follow
(number of channels used/ depth of engagement in each
channel)?
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52. Key Questions to Address
• For each priority Social Media Channel, what are your core
objectives for that channel; what KPIs will be used for
measuring on-going channel performance; what are your
targets for each KPI; what key tasks are needed to achieve
these targets?
• Do we have the right organisational ‘culture’ and ‘mindset’ for
Social Media? ‘Be social before doing social! Is the right
organisational and decision-making structure in place?
• Has agreement been reached on resource allocation?
• Who will be responsible for your social media activities? What
balance has been agreed between internal and external roles
and responsibilities?
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53. Key Questions to Address
• Who is the Social Media Champion?
• Do you have agreed Social Media Policies and Guidelines in
place covering ‘Proper Use’, ‘Content Management’,
‘Customer Response Times/Quality’ and ‘Legal’ aspects?
• Performance evaluation and business impact
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55. Business Benefits
• Market Knowledge
• Customer Insight and Understanding
• Customer Interaction
• Enhanced Customer Experience
• Business Intelligence
• Reputation Management
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56. Business Benefits
• Improved Sales and Marketing
• Identify and network with high value, high growth prospects
• Product Development and R&D e.g. engage and co-create
• Internal cost savings
• Improved Operations and Internal Processes
• Increased ROI
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57. Potential Business Benefits
5 main areas:
• Market/Customer Knowledge & Insight
• Engagement & Reputation Management
• Enhanced Customer Experience and Loyalty
• Sales/Marketing Effectiveness, Efficiency and ROI
• Operations/ Internal Processes (open source and hosted apps)
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59. Be Customer Led
• Who are our customers, community, tribe?
• Where do they hang out in social media?
• How can we best use Social Media to deliver an
exceptional customer experience at all stages of the
customer life cycle?
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61. Who Are Your Customers?
• Your Social Media Strategy should be aimed at building a
‘quality’ customer base i.e. a strong online network of high
value, high growth potential customers providing your
company with a strong foundation for achieving sustained
growth and profitability
• First step:
– Undertake a detailed Customer Mapping and
Segmentation Analysis to identify your ‘Most Valuable’ and
‘Most Growable’ customers (actual and potential)
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62. Strategically position your customers
on a Customer Value Matrix based on
Customer Attractiveness
Probability of Success
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66. Business Benefits of this Approach
• Concentration of effort and resource on `quality’ customers – your
‘Most Valuable’ and ‘Most Growable’ customers
• Improved value delivery to existing high value customers. Build
learning relationships with them allowing you to better service their
emerging needs and wants through highly customised and
personalised products and services
• Maximise customer retention, loyalty and advocacy; ‘Up’ and
‘Cross’ selling opportunities
• Maximise customer profitability and lifetime value
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67. Business Benefits of this Approach
• Acquiring new `quality’ customers becomes easier because you
have got it right for existing customers
• Cost savings and improved marketing/sales efficiency through
targeting limited resources on `quality’ customers (actual and
potential)
• Building sustained customer and competitive advantage through
customer differentiation and brand advocacy
• Erection of loyalty barriers preventing your competitors from
stealing your `best’ customers
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69. Monitoring the Conversations
• Use Social Media Monitoring Tools to identify where your
customers ‘hang-out’ online and to monitor the conversations
relevant to your brand – also for measuring the ‘buzz’ about
your brand
• No or low cost tools such as Google Alerts, Yahoo Pipes, Social
Mention, Topsy, IceRocket, Blogscope, Blogpulse and
ViralHeat
• More expensive and sophisticated tools such as Radian6,
Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar
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81. Action Plans
Key issues in implementing your
social media strategy
– Channel Action Plans
– Performance Measurement
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82. Channel Action Plans
• Once your Social Media Strategy has been agreed, brief Action
Plans should be developed for each priority SM channel
• Cascade the Balanced Scorecard approach to each priority
channel e.g. Twitter, Facebook, Linkedin etc
• But not ‘Paralysis by Analysis’
• The Action Plan for each channel should include a clear
statement of…..
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83. Channel Action Plans
• Vision
• Channel Objectives
• KPIs and Targets
• Customers
• Key Channel Actions and Initiatives for ‘getting there
• Organisation, resource and people issues
• Tools and applications
• Performance measurement
• Do’s and Don’t’s
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84. Performance Measurement
To ensure that your Social Media activities deliver high ROI, it is
important to monitor, measure and evaluate your social media
performance on an on-going basis. Key questions to address:
• What social media performance measures and KPIs should be
used – both in terms of the overall ‘buzz’ created and
measures for individual channels?
• What tools/software will be used to assist performance
measurement?
• What reports will be produced, for who and how frequently?
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85. Performance Measurement
Should be undertaken at three main levels:
• Individual social media channels
• Overall ‘buzz’
• Business Impact
Using the 6Is approach
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86. Organization, Resource and People Issues
• Organization, resource and people issues sit at the bottom of
your SM Balanced Scorecard NOT because they are the least
important issues to address. In fact, the exact opposite is true.
The success of your social media strategy is very much
dependent upon appropriate decisions being made in the
areas listed below:
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87. Organization, Resource and People Issues
• Do we have the right organisational ‘culture’ and ‘mindset’ for
Social Media? ‘Be social before doing social!’ Is the right
organisational and decision-making structure in place?
• Has agreement been reached on resource allocation?
• Who will be responsible for your social media activities?
• Do you have agreed Social Media Policies and Guidelines in
place covering ‘Proper Use’, ‘Content Management’,
‘Customer Response Times/Quality’ and ‘Legal’ aspects?
ENERGISE2-0.COM
89. Thank You
Questions
www.energise2-0.com
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Editor's Notes
Market Knowledge: Competitors, Suppliers, Buyers, Influencers; Google insight, Google Alerts will provide a view on most companies within an industry. Also, there are a range of blogs and networks where amateurs and professionals will share their knowledge of a market. Customer Insight and Understanding: Listening to customers and prospects through the range of channels they inhabit; comments on YouTube, Networks where they ‘hang out’ Customer Interaction: the tools exist to not only listen and observe but also to discuss and converseBusiness Intelligence: media monitoring, alerts and related analysis tools provide a great source of structured Business Intelligence. You need not pay £600/month for the privilege, SocialMention and Google Alerts can keep you informed where you need to be. Reputation Management: one of the key aspects of web 2.0 is that it is Real Time. You can see and respond to comments as they arise and often, where the response is efficient and effective, create a positive effect. Consider, the Ethiopian Growers that challenged the coffee used by Starbucks in a video posted on YouTube. This video was viewed by 10,000 people. The CEO posted a response within 24 hours on YouTube, the response was viewed by several million.
We believe there is a strong correlation between positive word of mouth, online buzz and sales and marketing. Needless to say there are now numerous means of getting your message out there, growing followers (through sites like Twitter, and energising your customer base). Web 2.0 is immediate and direct. The example I like to use is of a safety harness company based in Edinburgh who considered using a traditional approach to International Sales and Marketing – find an agent, find prospects, etc. An alternative approach we suggested, used LinkedIn to find the Health And Safety Director of the largest Construction Project in the world. Now it is not a leap to suggest filming the harness on YouTube and sending an email with a link saying you are in Saudi Arabia and would he like to meet up. Numerous examples of customer insight and feedback leading to product improvement. Many car companies use Second Life to test their designs. A site called eBags sends out the latest designs to their top raters on the site. Internal cost savings. No 10 Downing Street example…Improved Operations and internal processes. There are applications for literally anything – wikis that compete with licenced intranets, email freeware that is better than Outlook, hosted network sites for £20/month that would cost £thousands to replicate. Increased Return on Investment. The holy grail or the achiles heal of Web 2.0. How do you make money from this thing…there is a growing level of evidence to suggest that it works.