Social media is Global Tools, technologies, conversations Enabling a fundamental shift in how we communicate Dialogue & debate taken to the next level by tools that are freely available Touches nearly every aspect of our personal & professional lives Not just for marketing & public relations! Ease & speed at which information can be distributed throughout your networkInternet revolutionized almost every facet of our business & personal livesToday we are in the early stages of another far reaching revolutionDriven by peopleEnabled by social media
Social media is a convergence of many of these forces… We are in the early stages of a far-reaching evolution. One that is changing business models and approaches at speeds never before experienced. On one level social media isn’t new. It has its roots in book clubs, knitting clubs and gardening clubs of our past. What is new is the volume of information, the speed at which it is coming at us and …Today 92% of consumers rate ‘word of mouth’ as the best source for product & brand information, up from 67% in 1977. Social media is ‘word of mouth’ on steroids. In 2000, the shelf life of a conversation was 3 or 4 days. Today the shelf life of that same conversation is mere minutes. There is a massive amount of information readily available and it is creating a massive socio-economic shift. We are moving toward a world with total retail and product performance transparency where the market will be less tolerant of poor product, poor service, and low corporate responsibility.
Social media influences on global responsibility are seen almost daily in the news cycle. A good example of this is Nestlé's battle with environmental activists last year. Environmental activists used social media to wage war on Nestle over purchases of palm oil caught the food giant off guard. Protesters posted negative videos on YouTube, deluged Facebook page and peppered Twitter with claims that Nestle was contributing to the destruction of Indonesia’s rain forest, potentially exacerbating global warming and endangering orangutans. Nestle had already stopped using the supplier which supplied only 1.25% of Nestlé's palm oil in the last year. Bad to worse: Nestle asked YouTube to remove the videos and told users it would delete Facebook comments. Incited protestors. Now working to repair the damage. Partnership with The Forest Trust. Active member of Round Table on Sustainable Palm Oil. Response is authentic, genuine, transparent. PR campaign couldn’t get them out of it in this day and age.
If a picture is worth a thousand words, how much is a video worth?Before the Internet, consumption was primarily limited to locally available products and services. Today consumers can “shop” around the world, and they can use Internet knowledge to inform their decisions not simply related to the product/service itself, but also the practices of the company.
Consumers are using knowledge gained via social media to make purchasing decisions best aligned with their preferences. Nielsen study indicates that 78% of people trust their peers opinions – compared to only 14% trust in advertising. It’s no wonder that companies like Ford and Coca-Cola are budgeting 25% of their marketing budget to social media. Social media is making information instantly available. Consumer behavior moves at “speed of the electron” pace in both positive and precipitously negative directions. Providers will find themselves needing to respond at similar rates to the collective behavior of customers.One of the strengths of social media is its ability to connect companies directly to their customers and provide an open dialogue for conversation, customer service and awareness. A company can build loyalty by giving your customers an inside view of your business and giving them something that not only excites them, but that they can also relate to.July 19th – Dell’s 2nd annual Customer Advisory Panel meeting. Last year 10 employees listening in 1 language. Today 70 employees monitoring 11 languages (English, plus Japanese, Chinese, Portugese, Spanish, French, German, Norwegian, Danish, Swedish, and Korean)25,000 social media events per dayEngage and respond in less than 24 hours – often more quicklyNot always the case. 2005 Jeff Jarvis wrote a blog about lousy product and lousy service, hit a nerve and went viral. Burned by this, they learned quickly and just 2 years later they had increased service spending by 35%, cut outsourcing partners from 14 to 6 and retrained staff. In 2007 Dell implemented IdeaStorm, a social media outreach project. Dell consumers provided invaluable feedback and voted on their favorite ideas. While listening to their customers, Dell was able to create customized PCs that met the needs of consumers. Since IdeaStorm’s inception, Dell has gathered more than 10,000 ideas and implemented approximately 400 of them. It has allowed them to connect their product development directly to their customers.In 2009 Dell started offering exclusive discounts via Twitter. Other companies offer special deals via Facebook as a way to build loyalty. Can go the other way, though. Companies need to deliver on promises, be consistent, be engaged, respond well to criticism.
Facebook translated into 65 languages, all by usersSpanish translation = 2 weeksFrench = 24 hours!Cost savings? Millions!
We are social beings by natureMaslow’s Hierarchy of Needs = Physiological(food/shelter), Safety, Belonging/Love, Esteem, Self-ActualizationHighly receptive when social media came alongData from Nielsen Report on social media usage in 2011. For the past three decades, IT groups have focused on implementing systems of record. That is, digital systems which record all transactions making up the business. The next two decades will be about systems of engagement—the communication, collaboration, and interaction systems that enable people to work more productively—regardless of their location—with each other, with partners, and with customers.
Most valued = GPS (from Nielsen Report on Social Media Usage, Q3, 2011)Multiple Individual Redundancies = millions of people performing the same tasks over and overMobile = mass customization of the user experience
Most valued = GPS (from Nielsen Report on Social Media Usage, Q3, 2011)Multiple Individual Redundancies = millions of people performing the same tasks over and overTo be really useful, social media has to improve the daily work of employees. Translation: An enterprise employing 1,000 knowledge workers wastes $48,000 per week, or nearly $2.5 million per year, due to an inability to locate and retrieve information. And we can add to that the cost of duplicating work that already exists. An enterprise employing 1,000 knowledge workers wastes $5 million per year because employees spend too much time duplicating information that already exists within the enterprise.
Unisys CEO Ed Coleman addressed this through leading by example. He became an early adopter of social computing tools to communicate with employees, and in the process became a role model for adoption among his senior executive team, as well as the employee population. Unisys launched “My Site” which included an “Ask Me About” feature to locate experts across the company using hashtags. In the first 18 months, 15,000 Unisys employees world-wide (out of 23,000 or 65%) have built profiles and created hashtags describing their expertise.Unisys integrated social media literacy training into all employee training, starting with their new hire orientation program. The goal: mandatory social media training along with annual re-fresher courses so employees know what and how to share on Inside Unisys as well as on external social networking sites such as Linkedin and Facebook.Strategy: Be sure there is buy-in and engagement from senior executives who are willing to lead by example.Alignment: Get involvement from stakeholder groups across the company.Technology: Determine the right mix of tools and technologies.Pilot: Identify pilot groups like Unisys did with the sales team.Governance: Establish guidelines for governance.Communications: Develop a communications plan.Metrics: Identify hard business metrics like increasing speed to innovation or speed for winning new business.Implementation: Create process for enterprise wide implementation new skills needed for success like social media literacy.
Contributes to morale – employees feel like they are contributing, adding valueChanges the flow of information, no longer top-down corporate messaging; front-line employees developing and creating the information they need to be more efficient and productive.
Customers helping customers
Best Buy Learnings From Their Social Media Experience:Listen first, talk secondIts OK to failThe same social mores apply online as offlineCustomers don’t care about channelsWe have to be ready ro respondCustomers will tell us and everyone else where our organization is broken. And expect a fixPeople are forgivingTenents that support Best Buy Social Media Marketing:DeliverBlow you awayNever leave you hangingMake a differenceMake sure you know all we knowBestBuy measures 85% lower turnover as a result of its Blue Shirt community
The performance review Gives new meaning to the phrase “being known by the company you keep”of the future…
As people live longer, healthcare costs will be a growing issues. Physicians in France created closed Google + group to discuss casesPhysicians in Spain Facebook group Med & Learn to discuss cases
In the past decade, thousands of patients have flocked to Internet chat rooms and message boards for support and advice on managing health problems.
Be the Match is a Minnesota-based non-profit organization that has connecting patients with life-threatening diseases in need of bone marrow or cord blood transplant with matching donors for the past 20 years. Now using social media to educate & encourage people to spread the word–Engage our partners online–Add Be The Match to existing social networking content–Provide tools for other social networking content owners
Use social media to educate the core, encourage people to spread the word–Engage our partners online–Add Be The Match to existing social networking content–Provide tools for other social networking content owners
Use social media to educate the core, encourage people to spread the word–Engage our partners online–Add Be The Match to existing social networking content–Provide tools for other social networking content owners
Last century quality was defined by control and improvement. No longer sufficient for 21st century. Change and transformation are the emerging tools of quality. Debate over whether the same professionals can span a skill continuum from control to transformationMust invest time in developing new tools for change and transformation, invest energy to obtain new skills.Opportunities are real & scalable for those willing to forge ahead into new frontier. Is quality of today “new frontier” oriented?
Consumers are taking ownership of brandsCompanies need to spend more time listeningPeople enjoy spreading informationNeed to focus on content & toolsHappier and engaged customers more likely to buy again
If innovation means the ability of a company to anticipate customer needs, expressed or unexpressed, known or unknown, and bring products/services to the marketplace that excite customers, then clearly innovation is the fuel of growth in today’s changing world, and more so tomorrow.Facebook translated into 65 languagesAll by usersSpanish translation = 2 weeksFrench = 24 hours!Cost savings? Millions!
Businesses need to think about how to reorganize their product development systems to efficiently accept and build upon prototypes developed by users.
If innovation means the ability of a company to anticipate customerneeds, expressed or unexpressed, known or unknown, and bringproducts/services to the marketplace that excite customers, thenclearly innovation is the fuel of growth in today’s changing world,and more so tomorrow.Steve Kaufer, CEO of TripAdvisor, “The quickest death in this new world order is deliberating rather than doing.” Fear of failure is crippling to an organization or to an individual. Fail forward, fail fast, fail better.Acme Travel – first to create new app in Facebook tracking cities visited, successful but mandatory user name & email address to download application. 1 week after new app launched a user, Craig Elliott, notified Acme that the collection of user name and email address would discourage users and hurt success of application. Largely ignored. Why fix what wasn’t broken?Craig Elliott decided to build a better mousetrap – similar application Where I’ve Been. Graphically more appealing but most importantly not required to give user information. Quickly became top downloaded travel application helped created 7 person company. 800,000 active users attracted attention of big online travel agents. TripAdvisor saw potential in this social media application as marketing tool, began behind the scenes negotiations with Where I’ve Been. TripAdvisor came within a whisker of buying the company for $3M, so close in fact that a story was released about it. But then TripAdvisor pulled back and assessed the situation. Instead of investing $3M, they decided to build their own application at a fraction of the cost. First, attempted to leverage proven and successful product but then determined cost / value. Decided opportunity for more than one company to succeed in that space. TripAdvisor moved forward with bigger, better version leveraging pre-existing human capital and pre-existing products & solutions (like Google Maps) with total investment of $20,000. June 2010 5.2 million monthly active users. Where I’ve Been 1 million monthly active users.
Bacon Salt – product & brand built entirely using social media2 friends from Seattle joking over beer “wouldn’t it be great if there was a powder that made everything taste like bacon?” Created MySpace page dedicated to this idea, reached out to people who had mentioned bacon in their profiles (35,000 people!) to gauge their interest.Found interest – started receiving orders before they even had a product!Word of Mouth took over – viralSold 600,000 bottles in 18 monthsStarted with cheap spice bottles with printed logos taped to bottleStarted following customers and listening to them. Listen to Voice of the Customer but don’t turn
Social media is about participation, engagement & value creation.
Social media must be integral to strategyChoose right medium for right goalExample:Facebook good for building communities, Twitter good for real-time interaction with stakeholders
Not unlike studies that correlate quality with top financial performance.When companies deliver relevant content and listen and interact with stakeholders in a meaningful way, social media can be mutually beneficial for customers & companies.
Facebook good for building communitiesTwitter good for real-time interaction with stakeholdersAre you listening?Are you participating?Are you engaging?
Winners today are great companies with great products & servicesPeople win!
Twitter stats: 100,000,000+ active users (Texas, California, New York, Florida)230,000,000 tweets per day
Social media linked to strategy. Develop community. Develop partnerships & alliances. Connect with executives to learn how What is community to you?How can MNASQ use social media:To increase participation?To increase engagement?To create value?How do you want to engage with other members of the community?How do you want to interact with leadership team?How can MNASQ leverage social media to help you? Your career?
Social Media & The Future of Quality
Social Media &The Future of Quality MNASQ Program Meeting November 8, 2011
Presentation Notes• Many of the pictures used in this presentation are linked to articles about that topic.• For the links to work you need to be in Slide Show mode. – Hover mouse over picture to see if it has a link.• Note the link below the SlideShare viewer – Click to read presentation notes• Or you can download the presentation and access the notes that way. – Be sure to open presentation from PowerPoint to access edit mode. – Double-click from File Manager will launch in Slide Show mode. 2
Social Media & The Future of Quality• Key Forces from 2011 Future of Quality Study – Global Responsibility – Consumer Awareness – Globalization – Increasing Rate of Change – Workforce of the Future – Aging Population – 21st Century Quality – Innovation 3
Globalization• Social networking reached more than 60% of world’s online population – more than 1 billion global users – Not just Facebook• Global social networking revenues to reach $12.6 billion by 2016 – 121% increase – Emerging markets & developed markets• China’s social networks may be even larger than Facebook 7
Globalization• Much more aware of and in tune with changes happening around the world – Disasters tracked and disseminated more quickly – Japan earthquake: – Mobile phones silenced because of a spike in demand. Facebook and Twitter became the best link to worried family members – More than 9000 earthquake-related videos and 7000 tsunami-related videos in the first day 8
Increasing Rate of Change• In less than 3 years social media became the most popular activity on the Web – 7.6% of time online checking email – 23% of time online blogs & social networking – 4 out of 5 active internet users visit social networks & blogs• Consumerization of IT 9
Increasing Rate of Change Click picture to go to video 10
Workforce of the Future• Mobile • 40% of social media users access social media from phone – Social networking apps are 2nd most valued phone feature• More productive – Eliminate Multiple Individual Redundancies – Leverage the work / research done by others – Capture time – redistribute • Time with family • Betterment of society 11
Workforce of the Future• Increased productivity – 15% to 35% of each day searching for the right information • 1000 employees = $2.5M per year – Plus costs of duplicating information that already exists • 1000 employees = $5M per year 12
Workforce of the Future• Pages about Stores• Pages about Customer Service Issues• Pioneer Stereo geeks in New York connected to Pioneer Stereo geeks in Nebraska• Pioneer Stereo geeks connected to Sony Stereo geeks• Stereo novices in Virginia connected to Stereo geeks in California 14
Workforce of the FutureSocial Media Marketing Mission: To connect customers and employees with the Best Buy brand and each other through the right tools platforms and collaboration delivered when, where and how they want. 15
Workforce of the FutureSocial Media Guidelines:• (Essentially don’t be stupid)• Listen• Be findable, think distributed• It’s about people • Be authentic• Enable creation • Be transparent• Make it social • Keep it simple• Listen some more • Make a commitment 16
Aging Population• Spontaneous Coronary Artery Dissection – Rare disease with high mortality rate – Patients connected online to discuss disease – Persuaded researchers to study disease – The social network "is a catalyst and it allows us...to gather a critical mass of patients to learn more about this disease," says Sharonne Hayes, a Mayo cardiologist who is leading the project. 24
21st Century Quality “We have to strike the right balance between being in touch and being in control. The irony is the more in control we are, the more out of touch we become.” Procter & Gamble CEO Alan George Lafley 28
21st Century Quality• Control impedes innovation• Balance with security & privacy issues• People driven revolution enabled by technology• Products & services will find us via our social networks• Need to allow end-user to discover what they can do with the technology 29
Innovation• Power to the People!• Consumers are driving innovation – If you are listening – If you aren’t listening, someone else might be – If you aren’t listening, consumer might do it themselves• Mass market >> a mass of niches• Market fragmentation 30
Social Media & The Future of Quality• Number of US & European companies using social media is constant from 2010 to 2011• But interactivity on social media has increased across all regions – Better sense of how to leverage social media – Dedicated resources to monitor & manage• Room for improvement – Most still broadcasting and not listening, not engageing 36
Social Media & The Future of Quality• Social media is a living & breathing thing that touches every aspect of your organization – It is wherever and however your customer chooses to reach out to you – Customers of today & tomorrow – Employees 37
Social Media & The Future of QualityENGAGEMENTdb Study: – Ranking of the top 100 global brands – The most valuable brands in the world are experiencing a direct correlation between top financial performance and deep social media engagement. – But the currency in social media isn’t $$ but meaningful engagement, participation and value creation. 39
Social Media & The Future of Quality• No choice IF engage in social media, HOW – What problem do you need to solve? – Don’t do it if it doesn’t add value – No one right way to participate in social media – Check in with Stakeholders • Where are they communicating? • What is important to them? • Where do they go for information? • What do you want them to know? 40
Social Media & The Future of Quality• Social media literacy is fast becoming a necessary skill for the workforce of the future.• Knowing what to share and how to share will be a critical skill for the 2020 workplace. – Business as usual? At your own peril! – You should be compelled to become part of the conversation – People want to hear from you – Start by listening 41
Social Media & The Future of Quality• Be interesting• Find balance between sharing & privacy• Share your passion• Join the conversation• Ask advice on LinkedIn• Comment on blogs• Reply to Tweets• Share on Facebook 42
Social Media & MNASQOur Mission:• Foster personal and professional relationships, connections and sense of belonging.• Equip our community with the skills, competencies and knowledge that impact the total customer experience.Our Vision:To be the community of choice providing professional development focused on the total customer experience. 43
Credits / Interesting Reading• HBR Blog - Increase Productivity with Social Media• IDC Report on The High Prices of NOT Finding Information• Unisys on the Consumerization of IT - 2011 Unisys-Sponsored Consumerization of IT Research• B2B Social Media on the Rise• Nielsen Social Media Report• How Dell Really Listens to Its Customers• Global Social Networking Revenue to Double by 2016• When Patients Band Together• BursonMarsteller 2011 Global Social Media Checkup 46