Mary Beth Kemp Forrester Research Presentatie

Mary Beth Kemp Forrester Research

How Consumers Participate in Online Communities and What That Changes Mary Beth Kemp Principal Analyst Forrester Research 19 June, 2008

Theme How connected consumers changes everything

Agenda How are European consumers adopting social computing and in particular social networks? How are companies positioning themselves in this space? What are the opportunities and evolutions?

How are European consumers adopting social computing and in particular social networks?

How are companies positioning themselves in this space?

What are the opportunities and evolutions?

Agenda How are European consumers adopting social computing and in particular social networks? How are companies positioning themselves in this space? What are the opportunities and evolutions?

How are European consumers adopting social computing and in particular social networks?

How are companies positioning themselves in this space?

What are the opportunities and evolutions?

Europeans are avidly adopting social computing Half of online Europeans engage in social computing Major brands are using it to reach consumers: Jeep, Coke, Lego, Dell…. And it’s influencing company policies; Cadbury’s Wispa, HSBC backdown on student charges…

Half of online Europeans engage in social computing

Major brands are using it to reach consumers: Jeep, Coke, Lego, Dell….

And it’s influencing company policies; Cadbury’s Wispa, HSBC backdown on student charges…

Lego listens to consumers Imperial Star Destroyer sold out in 5 weeks

Imperial Star Destroyer sold out in 5 weeks

Europeans are most-often spectators Percentage of consumers who use these technologies monthly or more often Base: 13,254 European online users Source: Forrester’s European Technographics Benchmark, Q2 2007

Peer-generated video divides the generations most Age Percentage of consumers who never use these technologies Base: 13,254 European online users Source: Forrester’s European Technographics Benchmark, Q2 2007

Technology adoption doesn’t tell you much Age Percentage of consumers who never use these technologies Base: 13,254 European online users Source: Forrester’s European Technographics Benchmark, Q2 2007

Social Technographics shows how consumers participate Consumers participating in at least one of the activities at least monthly Source: Q2 2007 European Technographics Benchmark Survey, Q3 2007 European Young Consumers Survey 19% 9% 13% 40% 53% 57% 17% 52% 81% 14% Creators Publish a blog Publish your own Web pages Upload video or music you created Critics Post ratings/reviews of products or services Comment on someone else’s blog Contribute to online forums Collectors Use RSS feeds Add “tags” to Web pages or photos Joiners Maintain profile on a social networking site Use social networking sites Spectators Read blogs, online forums Watch video from other users Listen to podcasts Read customer ratings/reviews Take part in discussions or online forums Inactives None of the above European online adults 10% Young online European consumers 39%

The Dutch are the keenest Creators Creators as a percentage of online adults

Innocent’ Big Knit has 662 Flickr photos…

The Dutch and Brits love joining networks Joiners as a percentage of online adults

Hyves is a thriving community

Over a third of European adults read social content Spectators as a percentage of online adults

The majority of young consumers do! Spectators as a percentage of online youth 12-24

A third of young consumers actually create content Creators as a percentage of online youth 12-24

Penguin’s Spinebreakers is written by teens for teens

Young French and German are networking holdouts Joiners as a percentage of young adults

Social Network users are voyeurs Base: 2,778 young users who visit or used to visit social networking sites Source: European Technographics® Online Youth Survey, Q3 2007

… who want to connect Base: 2,778 young users who visit or used to visit social networking sites Source: European Technographics® Online Youth Survey, Q3 2007

Agenda How are European consumers adopting social computing and in particular social networks? How are companies positioning themselves in this space? What are the opportunities and evolutions?

How are European consumers adopting social computing and in particular social networks?

How are companies positioning themselves in this space?

What are the opportunities and evolutions?

Definition: An Online Community An online community is an interactive group of people joined together by a common interest.

An online community is an interactive group of people joined together by a common interest.

Development Support Sales Marketing Research What do you want to achieve? Listening Talking Energizing Supporting Embracing

Listening: E & Y Engages In A Dialog With Prospective Employees On Facebook

Listening…InterContinental runs a private community for research and exchange

Speaking…with weight-loss candidates

Speaking with far-flung employees

Energizing: CarnivalConnections helps plan and coordinate cruises for groups

Energize…lingerie fans Users put VS Pink badges on their own pages, where friends see them Their friends then go and visit the VSPink profile page, where they can also download the badges

VSPink Has +300K Members And Thousands Of Comments

Support: Salesforce.com customers can find people like themselves for support and ideas

Supporting… ‘moms’

Embracing… dog lovers

A conversation with customers Del Monte: What does your dog eat for breakfast? George: . . . she would definitely want bacon and eggs and she would want ketchup on her eggs. She loves ketchup!!! Del Monte: Would you buy more treats if they had vitamins and minerals as ingredients?” George: I would buy healthier treats over ones that didn’t have vitamins and minerals. . . . I try to look for amino acids and omega 3 and fish oils.

Embracing…employees with a simple interface – and process - for people to submit ‘change’ ideas

Best practice 1: Make ONE person responsible for the community Have one key contact point to coordinate all community activities, vendor relations, dissemination/use of feedback No investment means no return Have the right measurements in place that gauge success Number of conversations, number of posts, frequency of visits Work through your ROI model BEFORE

Have one key contact point to coordinate all community activities, vendor relations, dissemination/use of feedback

No investment means no return

Have the right measurements in place that gauge success

Number of conversations, number of posts, frequency of visits

Work through your ROI model BEFORE

Social Media Strategist: Internal Leader The community strategist who organizes internal resources and supports the program This experienced business manager: Able to maneuver within the organization Leans on relationships with many business teams Manages the business program Leads the internal charge Develops the objectives and obtain resources Creates policy, deals with internal stakeholders, and provides ongoing reports to management. Ed Terpening VP, Social Media, Wells Fargo

The community strategist who organizes internal resources and supports the program

This experienced business manager:

Able to maneuver within the organization

Leans on relationships with many business teams

Manages the business program

Leads the internal charge

Develops the objectives and obtain resources

Creates policy, deals with internal stakeholders, and provides ongoing reports to management.

Community Manager: Member Champion The community manager or moderator who interacts with members. As a primary advocate of the community, the community manager: Balances the needs of the community with corporate objectives. Is a customer advocate, Is a brand evangelist May create editorial content Harvests customer needs for market intelligence Skills possess strong online communication skills, be approachable and conversational, and have the ability to relate to the members, including in person Lionel Menchca Digital Media Manager Dell Computers

The community manager or moderator who interacts with members.

As a primary advocate of the community, the community manager:

Balances the needs of the community with corporate objectives.

Is a customer advocate,

Is a brand evangelist

May create editorial content

Harvests customer needs for market intelligence

Skills

possess strong online communication skills, be approachable and conversational, and have the ability to relate to the members, including in person

Best practice 2: Create clear lines of responsability and processes Nearly every department is impacted: Marketing Product teams Account teams Support Client teams Setup mock simulations using internal versions of the tools Develop internal guidelines Create a rapid response team

Nearly every department is impacted:

Marketing

Product teams

Account teams

Support

Client teams

Setup mock simulations using internal versions of the tools

Develop internal guidelines

Create a rapid response team

Best practice 3: Select the right group Envision how the community will interact once it’s active Leverage your key personas, if they are available Define the initial link that ties the community together Recruit the members from specific sources Existing social networking sites Media sites Panels Company CRM system

Envision how the community will interact once it’s active

Leverage your key personas, if they are available

Define the initial link that ties the community together

Recruit the members from specific sources

Existing social networking sites

Media sites

Panels

Company CRM system

Remember the needs of the community and prepare to participate Succeed depends on interests of members first Valuable Content is defined by what’s valuable to the community — which means most traditional advertising and marketing materials don’t count. Help docs Behind-the-scenes videos Sneak previews

Succeed depends on interests of members first

Valuable Content is defined by what’s valuable to the community — which means most traditional advertising and marketing materials don’t count.

Help docs

Behind-the-scenes videos

Sneak previews

Best practice 4: Facilitate the community Communities don’t develop naturally They need to feel they are getting something out of the community in order to participate Have a specific purpose for the community Communities that are created without a specific object go nowhere Designate additional “community gardeners” who encourage good growth and pull out the “weeds”

Communities don’t develop naturally

They need to feel they are getting something out of the community in order to participate

Have a specific purpose for the community

Communities that are created without a specific object go nowhere

Designate additional “community gardeners” who encourage good growth and pull out the “weeds”

Best practice 5: Act on community feedback quickly Acknowledge negative comments Give feedback to the community on what’s being done Make sure your organization can act Best practice: The company anticipates feedback it will receive and has the resources in place to take immediate action Best practice: Communicate back to the community what the company is doing to follow-up on the feedback

Acknowledge negative comments

Give feedback to the community on what’s being done

Make sure your organization can act

Best practice: The company anticipates feedback it will receive and has the resources in place to take immediate action

Best practice: Communicate back to the community what the company is doing to follow-up on the feedback

Agenda How are European consumers adopting social computing and in particular social networks? How are companies positioning themselves in this space? What are the opportunities and evolutions?

How are European consumers adopting social computing and in particular social networks?

How are companies positioning themselves in this space?

What are the opportunities and evolutions?

Influence will become highly valuable Lifetime (or financial) value Social value Ambassadors Influencers Core buyers Misers + + - -

What will be important for social networks Marketers will pay to reach and influence valuable Each person will have their own “personal CPM”* Social networks will compete to have the best experience for high-influence individuals * From Marian Salzman, JWT

Marketers will pay to reach and influence valuable

Each person will have their own “personal CPM”*

Social networks will compete to have the best experience for high-influence individuals

Evolution of open platforms Walled garden services Portal aggregators 1993 1999 2003 2008-9 2013 Search freedom Data portability Ubiquitous social networks

Social Media is here to stay… It’s part of young consumer’s lives What they do might change, but the idea of social media sticks 5-10 years: Ubiquitous social networks Open technology Shared identities Information flow Advertising embraces social influence

It’s part of young consumer’s lives

What they do might change, but the idea of social media sticks

5-10 years: Ubiquitous social networks

Open technology

Shared identities

Information flow

Advertising embraces social influence

Thank you Mary Beth Kemp mbkemp@ forrester.com + 33 (0)1 47 58 93 22 www.forrester.com

Een initiatief van: Met medewerking van: Programma 08.30 Ontvangst & registratie 09.30 Opening dagvoorzitter 09.45 Keynote speaker: Mary Beth Kemp 10.45 Keynote speaker: Frans van der Reep 11.45 Coffee break 12.00 Recruitment Track Marketing Track Geert-Jan Waasdorp Sander Dullaart 12.45 Lunch break & Speed date 14.00 Recruitment Track Marketing Track Bas van de Haterd David Nieborg 14.45 Marco van Hurne Pascal Spelier 15.30 Tea break 15.45 Panel discussion