Making Web 2.0 Work for B2B Brands

Web 2.0 for B2B Brands Laurence Vincent Group Director, Strategy Baptie & Company Webinar 24 September 2008

“The B2B world has energetically embraced the grand online colloquy known as the two-way talk-back conversation.” + Ned Madden Editor, eCommerce Times

agenda + what is web 2.0? + how are B2B companies using web 2.0? + how do B2B brands make web 2.0 work? + the B2B / web 2.0 agenda + discussion

1 what is web 2.0?

what is web 2.0? Web 2.0 is an idea – it refers to changes in the ways that software developers and end- users utilize the web. When it’s at its best, it delivers five benefits: + enhanced creativity + improved information distribution + frequent collaboration + better functionality + richer user experience

web 2.0 taxonomy level description examples 0 applications that work as well offline as they do online + MapQuest + Yahoo! Local + Google Maps Source: Tim O’Reilly, explained at first O’Reilly Media Web 2.0 conference in 2004

web 2.0 taxonomy level description examples 0 applications that work as well offline as they do online + MapQuest + Yahoo! Local + Google Maps 1 applications that operate offline but gain features and + Google Docs functionality when connected online + iTunes Source: Tim O’Reilly, explained at first O’Reilly Media Web 2.0 conference in 2004

web 2.0 taxonomy level description examples 0 applications that work as well offline as they do online + MapQuest + Yahoo! Local + Google Maps 1 applications that operate offline but gain features and + Google Docs functionality when connected online + iTunes 2 applications that can operate offline, but gain the most + Flickr advantage when used online Source: Tim O’Reilly, explained at first O’Reilly Media Web 2.0 conference in 2004

web 2.0 taxonomy level description examples 0 applications that work as well offline as they do online + MapQuest + Yahoo! Local + Google Maps 1 applications that operate offline but gain features and + Google Docs functionality when connected online + iTunes 2 applications that can operate offline, but gain the most + Flickr advantage when used online 3 applications that exist only on the internet, deriving their + eBay effectiveness from inter-human connections and from the + Craigslist network effects the web makes possible – they actually + Wikipedia grow in effectiveness as more people use them + del.icio.us + Skype Source: Tim O’Reilly, explained at first O’Reilly Media Web 2.0 conference in 2004

“It’s fun to play with the new stuff coming online, but 99% of what people in my company do on the internet is still email and Google.” + Senior Executive 2008 Siegel+Gale client study on digital media

2 how are B2B companies using web 2.0?

web 2.0 reality in B2B tier description examples everywhere Established web tools entrenched in + proprietary web sites the day-to-day functions and + email marketing communications of companies. + online advertising + search engine optimization + search engine marketing + webinars Source: 2007 Survey of Association of National Advertisers and BtoBOnlinecom

web 2.0 reality in B2B tier description examples emerging Integrated tools that add new media + blogs functionality; especially focused on + rss feeds the infusion of motion, sound and + podcasts elective participation. + video-on-demand + distributed services everywhere Established web tools entrenched in + proprietary web sites the day-to-day functions and + email marketing communications of companies. + online advertising + search engine optimization + search engine marketing + webinars Source: 2007 Survey of Association of National Advertisers and BtoBOnlinecom

web 2.0 reality in B2B tier description examples hyped but Immersive online experiences that + wikis require a high degree of socialization + mobile seldom used or specific technologies to make the + viral video most out of features and functions. + social networks + virtual worlds (e.g., Second Life) emerging Integrated tools that add new media + blogs functionality; especially focused on + rss feeds the infusion of motion, sound and + podcasts elective participation. + video-on-demand + distributed services everywhere Established web tools entrenched in + proprietary web sites the day-to-day functions and + email marketing communications of companies. + online advertising + search engine optimization + search engine marketing + webinars Source: 2007 Survey of Association of National Advertisers and BtoBOnlinecom

“The average consumer does not know the difference between the browser, the internet, and the search box.” + Mitchell Baker Chairperson, Mozilla Foundation

trends in B2B utilization 58 web services 70 34 blogs 21 33 rss 24 32 wikis 24 29 podcasts 23 28 social networking 27 18 peer-to-peer 37 10 mash-ups 11 2007 2008 Source: Building the Web 2.0 Enterprise, McKinsey Global Survey Results, 2008

web 2.0 satisfaction by region asia pacific 40 52 8 developing markets 26 57 17 europe 20 58 22 north america 20 51 29 india 18 64 18 china 17 62 21 latin america 13 68 19 High Satisfaction Neutral Low Satisfaction Source: Building the Web 2.0 Enterprise, McKinsey Global Survey Results, 2008

“Drowning workers in choices and overloading them with creativity-enhancing tools is no way to increase productivity.” + CIO Insight

realities from the field it has changed the way we communicate 38% with customers and suppliers it has changed the way we hire and retain talent 16% it has created major new roles or 16% functions within our organization it has changed the way our organization is structured (eg., flatter hierarchy) 14% the use of web 2.0 technologies and tools has not changed the way the 36% company is managed and organized Source: Building the Web 2.0 Enterprise, McKinsey Global Survey Results, 2008

3 how do B2B brands make web 2.0 work?

making web 2.0 work in B2B What functions Business and benefits must the technology enable?

“Traditionally, people think more is better. More may work, but it's painful, expensive, very cold-war. Think about one- downing people, under-doing your competitors.” + Jason Fried 37 Signals

web 2.0 and bound business objectives bounded platforms web 2.0 provides a platform that delivers an ongoing set of capabilities the organization can flexibly build upon within a context that suits the brand bounded events web 2.0 is a great catalyst for bound business activities – activities that have a discrete scope, time horizon or group of participants bounded communities web 2.0 is particularly good at aggregating discrete communities of people around a brand objective Source: The Three Archetypes of Innovation Management Tools, Forrester Research, 2998

the internal twitter

37 signals + create products that “get real” and deliver dead simple solutions to business issues + case study in ‘bounded’ design + best-in-class utilization of web 2.0 technology + compelling brand story linked to business functionality

“We must transform the Intelligence Community into a community that dynamically reinvents itself by continuously learning and adapting as the national security environment changes ... several new technologies will facilitate this transformation. Two examples are self-organizing knowledge websites, known as Wikis, and information sharing websites known as Blogs.” + D. Calvin Andrus, Ph.D. Toward a Complex Adaptive Intelligence Community US Central Intelligence Agency

intellipedia + In the intelligence business, something that is 80 percent on time, accurate and sharable is much more valuable than a perfectly formatted report that’s overclassified, has perfect fonts and comes too late.

a wiki for secret agents + built on same software platform as wikipedia + collaborative environment for everyone in the intelligence community + includes tools to aggregate, communicate, tag, and share + integrated im and rss + uses web 2.0 features similar to those offered on flickr, youtube, and del.icio.us

making web 2.0 work in B2B Business How does it improve the customer experience? User

“These are great technologies, with potential benefits. But that has to be tempered with a clear understanding of who people are and what they want to do.” + Joe Sokohl Director of User Experience, Keane

failing experience grades 82% reaching buying getting service 66% 67% 61% 54% 45% 43% 40% 37% 34% 32% 27% 22% 17% 13% web in-person phone rep email phone self service Source: The Customer Experience Journey, Forrester Research, 2008

personal brand narrative + customers are consumers, too + consumers “script” their identities from cultural feedback and association with brand archetypes + life is a performance – we’re all in our own version of The Life Movie + brand consumption plays a role in the story – Preparation – Performance – Evaluation + the working identity is part of the life movie, too

personal narrative and brand experience

“Unlike purely cognitively based priming effects, which decrease after a short delay, our results show that the effect was actually magnified: while participants primed with IBM (a goal-irrelevant brand) were uninfluenced by delay, Apple-primed participants’ creativity increased in strength over time, a hallmark of goal-directed behavior.” + Journal of Consumer Research June, 2008

digital brand communities a place to… + create a brand culture + study attitudes, perceptions and behavior + connect platforms, products and services with the culture’s belief system but not a place to… + preach and sell + police + manipulate

a culture with juice

BreakingPoint

Honeywell: industry expert Search Advertising Trade Communities Information Interactive New Channels Search Display Ads Honeywell positions Blogs Features Mobile A prototype Second Optimization Honeywell’s itself as an expert in Life project offers A dedicated blog site Multimedia Honeywell’s site on advertisement on its online trade value-added business shares information on iPhone is the full web Well-optimized for presence. National Flash-enabled videos of brand keyword Avionics Magazine Business Aviation applications and a marketing activities as version. speaks to a specific customer training well as customer and product offerings. searches. Search Association’s (NBAA) results go directly to audience. The page website promotes experience product support. Blog Honeywell's Audio top level pages of links users to the several Honeywell While Honeywell does has separate URL but Archives provides audio Honeywell website. Honeywell solutions technical not actively participate is integrated into the files of past earnings page subcommittees, on YouTube or Twitter, main site. conference calls Honeywell is also well- showing Honeywell’s optimized for industry Click-through is linked leadership role within they monitor and send News Alerts + Microsites to Honeywell’s page the industry thank you gifts for and product searches. about reducing turn videos that feature eNewsletters Honeywell uses a Search Marketing time, creating a In addition, Honeywell their products Investor relations microsite, seamless transition to sponsors webinars on section offers email HoneywellScience.com, Sponsored links for Their Facebook page to share information on the most relevant key trade sites, like features a company alerts and investor products are typically information for the user ATW, suggesting a level presentations in a corporate initiative. online retailers, description and links to Distinct site has its of expertise and company websites. webcast and PDF including some Sponsorships “helping” format. own look and feel. Honeywell-dedicated Sponsoring events Honeywell employees retailers create knowledge News feed panel links provide additional web to top Honeywell presence and increases groups through social networking to share stories. linkage. and facilitate the flow Honeywell’s online of information. AeroTech Magazine Honeywell Buildings talks up positive news, Forum benefits channel such as Honeywell’s partners, but the Green Initiative. information is not shared with the public. High ranking search result Online sponsorship of FMA Honeywell’s virtual trade show Honeywell’s YouTube response Honeywell’s Adrian’s Corner blog Honeywell on-site video

making web 2.0 work in B2B Brand What does the technology do to convey the Business brand promise and voice? User

tying the web to the brand Pu ll u sh Search P Search Optimization Search Marketing Information Advertising Blogs Display Ads News Alerts + Sponsorships Brand Platform eNewsletters Trade Presence Promise Magazines Interactive Features Virtual Trade Shows Values Multimedia Voice Microsites Communities Social Networking New Channels Websites Mobile Forums + Chat Rooms 43

brands connect functionality and experience to a promise The External View Promise Values Voice The Internal View

what ‘digital’ brings to brand voice… + behavior communications + online/offline integration + immediacy + choice of platforms + transparency + dialogue with constituents + consistency + segmentation of audiences + optimization (by platform) + more interfaces with constituents + expectation of utility for constituents

successful voice in digital media + participates in a dialogue rather than delivering a monologue (onsite + offsite) + customizes experiences rather than broadcasting one message to all (one to one, one to many, many to many) + adapts based on property and platform rather than presenting a uniform face + integrates offline and online experiences + delivers utility and value rather than a static experience

New York Times The New York Times digital voice embodies every aspect of its offline voice: it is comprehensive, open and mindful of its heritage as a preeminent and trusted news source. + writing style is authoritative, objective and comprehensive + experiential elements are consistent + design elements are targeted to same audience across all mediums + style and tonality is maintained wherever the content lives + the site prominently features the New York Times rather than claiming a .com identity + external feeds, such as AP and Reuters are clearly demarcated

New York Times The New York Times takes advantage of web 2.0 digital tools where appropriate while not giving control over to the masses.

the other side of the coin + CNN’s digital voice is filtered through a lens of top stories and pop culture. + News comes from multiple news sources + Channels are poorly integrated + Point of view is unclear

CNN’s discombobulated voice 1 2 3 1. partnerships position the brand as a portal to external content, but make it unclear where the CNN brand starts and ends. 2. ad placement and integration exists within the site which does not draw clear distinction between the ad and editorial offices. 3. lack of visual and written consistency between platforms, publications or channels.

digital voice challenges + speaking effectively at once, to all audiences, globally + adapting to the rapidly evolving technical environment + aligning the organization around the needs of external audiences to deliver experiences, messages, and value + embracing the role of intermediaries + understanding the value of platforms and usability

General Electric background Founded in 1892, General Electric operates as a technology, media, and financial services company worldwide. It operates through four segments: GE Capital, Energy Infrastructure, Technology Infrastructure, and NBC Universal. brand voice Innovation and imagination. Its tagline is: Imagination at work. This theme is prevalent in GE’s well-known advertising campaign. digital voice The website succeeds in presenting GE as “Imagination at work”, primarily through the content and the tone of the site. This theme extends to additional digital touchpoints such as microsites and social networking sites. GE’s website is dedicated to showcasing GE’s commitment to innovation both through the products and services the company provides, as well as through the people it employs and the culture it breeds within its organization. Wherever you click, innovation is the main attraction.

GE homepage GE’s brand voice centers on “Imagination at Work”

GE “Our Culture” page The concept of innovation goes beyond the products and services section of the website. It is consistent across all digital touchpoints and the tonality conjures wonder and possibility.

GE – Ecomagination microsite Even microsites reflects the GE brand’s commitment to invest in innovative solutions to environmental challenges and speaks in the same optimistic voice.

when it’s away from home... GE Videos on Facebook, MySpace and YouTube: “Important Firsts”, “Do you want to change the world”, “Is GE right for you?”

non-negotiable brand criteria + is it clear? does the integration of web 2.0 features and functionality provide a demonstrable benefit to the brand audience? + is it compelling? does the web 2.0 integration strengthen associations about the brand – does it inspire preference, loyalty and/or evangelism? + is it credible? does the brand audience believe that the brand should be engaging in web 2.0 features and functionality? is the technology used in a way that seems naturally appropriate for the brand?

4 the B2B / web 2.0 agenda

making web 2.0 work in B2B Brand Business a rich and useful User user experience that reflects the promise of the brand

the imperative disaggregated business imperatives + bottom up functionality + less features, more practicality + improves efficiency and speed user imperatives + web based + easy to use + inherently social brand imperatives + consistent and compelling application of voice + credible brand behavior + clear connection to promise

the promised evolution

“Fundamental changes are beginning to take place among satisfied companies as a result of their ambitious use of Web 2.0. These companies are not only using more technologies but also ... taking steps to open their corporate ‘ecosystems’ by encouraging customers to join them in developing products and by using new tools to tap distributed knowledge.” + McKinsey & Company Building the Web 2.0 Enterprise

transition requires will and skill will + let the younger generation lead. the young people entering your workforce already communicate with Web 2.0 tools and want more than email to get the job done. + evolve to web 2.0 using your value chain. begin with staff, then move to partners and finally to your customers. + roll-out of web 2.0 in B2B requires ample socialization. practice evangelism and send constant reminders to change behavior and encourage adoption. + web 2.0 requires a new mindset – an open mindset – don’t be afraid to give users more control of the brand, but exercise diligent brand stewardship along the way. skill + train, train, and train again. cloud computing can be an easy way to launch and scale services and strategic initiatives, but you should spend a fair amount of time teaching those within and outside your organization on how to use the technology. + never deploy social media for the sake of deploying social media. develop a strategic rationale that supports business, user and brand objectives. + don’t forget that web 2.0 lives outside the berm of your website. encourage people to engage with your company outside of your .com business address. let them engage with your brand where they already like to go, like Facebook, MySpace, etc. drive push/pull brand dynamics.

lingering challenges + how much money to budget for web 2.0 integration? + how much skill to build internally vs. outsourcing? + how to measure the value delivered by web 2.0 integration?

5 discussion

Laurence Vincent Group Director, Strategy 10960 Wilshire Blvd Suite 400 Los Angeles, CA 90024 t +1 310 312 2235 e lvincent@siegelgale.com www.siegelgale.com

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Making Web 2.0 Work for B2B Brands

by Laurence Vincent

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Making Web 2.0 Work for B2B Brands Presentation Transcript