Social Media Intro For Business Intelligence People

Social Media Intro for Business Intelligence Professionals www.ThirdNature.net Mark R. Madsen Slide 1

Social Media Intro for Business Intelligence Professionals May, 2009 Mark R. Madsen www.ThirdNature.net

Social Media

Wikipedia on social media (naturally): “…activities that integrate technology, telecommunications and social interaction , and the construction of words, pictures, videos and audio.” How about “people conversing online” instead?

Mixed Up Terminology Social software – software designed for collaboration & sharing, i.e. the umbrella term Social networks – social platforms, not “about” anything other than the social network Social sites / applications –the primary interaction is around a topic, function or object; it’s “about” something, unlike social networks Social media – a subtype of social site / application built around published media of some type; blogs, video, music, games, virtual worlds www.ThirdNature.net Mark R. Madsen Slide 5

Many Social Features and Tools Blogs Wikis Microblogging SMS Chat Widgets Social networks Social bookmarks Collective tagging Message Boards Podcasts Video sharing Photo sharing Comments Ratings RSS www.ThirdNature.net Mark R. Madsen Slide 6

Online Community Types Lightweight social processes • Very low barrier to social involvement Digg, Last.fm, Amazon, Twitter Collaborative information structures • The core product is generated or enhanced by social components Flickr, YouTube, Threadless, Etsy High end collaboration • Extensive involvement and collaboration required Wikipedia, any-other-pedia, CouchSurfing, open source projects www.ThirdNature.net Mark R. Madsen Slide 7

Lightweight Example: Twitter www.ThirdNature.net Mark R. Madsen Slide 8

Collaborative Example: Threadless www.ThirdNature.net Mark R. Madsen Slide 9

High End Example: Lostpedia www.ThirdNature.net Mark R. Madsen Slide 10

Social Networks www.ThirdNature.net Mark R. Madsen Slide 11

Social Network Evolution Source: FaberNovel Consulting www.ThirdNature.net Mark R. Madsen Slide 12

Social Network Participants Creators Synthesizers Consumers Inactives www.ThirdNature.net Mark R. Madsen Slide 13

Why should you care?

Follow the money www.ThirdNature.net Mark R. Madsen Slide 15

Follow the Eyeballs www.ThirdNature.net Mark R. Madsen Slide 16

There are 1.4 billion internet users www.ThirdNature.net Mark R. Madsen Slide 17

45% have blogged www.ThirdNature.net Mark R. Madsen Slide 18

80% have watched online video >100 million videos viewed (per day) www.ThirdNature.net Mark R. Madsen Slide 19

60% joined a social network www.ThirdNature.net Mark R. Madsen Slide 20

…Where They Are Talking About You Tell someone about a product/service by messenger Tell someone about a product/service by email Comment on a product/service review on a blog/ weblog Write a review of a seller on an auction site Recommend a product/ service on blog/ weblog Write review of product/service on ecommerce/retail site Comment on product/ service review on ecommerce/retail site Post opinion on social network personal profile Write a review of a product/service on yr blog/weblog Create product wish/ favs list on ecommerce/retail site Post a video clip featuring a product/service 0 5 10 15 20 25 30 35 40 45 50 Monthly Reach “In the age of social media, what people say about your company or its products can and will become very public, very quickly. My job is about engaging in a constructive dialogue with customers, in creating active conversation streams.” – Lionel Menchaca, chief blogger, Dell www.ThirdNature.net Mark R. Madsen Slide 21

They Don’t Listen to You >90% of people who can ad-skip do ad-skip www.ThirdNature.net Mark R. Madsen Slide 22

They Don’t Trust You www.ThirdNature.net Mark R. Madsen Slide 23

They Trust Each Other, Even Strangers www.ThirdNature.net Mark R. Madsen Slide 24

Business Implications

Social Software Affects Buying Behavior www.ThirdNature.net Mark R. Madsen Slide 26

Marketing and Sales Are Most Affected www.ThirdNature.net Mark R. Madsen Slide 27

Some Unpleasant Marketing Facts Marketers don’t have confidence in their ability to manage their budget to meet objectives: • Only 25% of marketers said senior management is confident or very confident in forecasts of marketing impact on sales • Only 15% of marketers agreed or agreed completely that they could forecast the impact of a 10% budget cut www.ThirdNature.net Mark R. Madsen Slide 28

Bad News if You Want to Buy Advertising Number of prime-time 60 second TV commercials required to reach 80% of 18-49 year-olds • In 1965: 3 • In 2002: 117 People with DVRs watch 12% more TV ☺ Yet 90% of them skip the ads www.ThirdNature.net Mark R. Madsen Slide 29

The obvious solution hasn’t worked very well.

One-to-One marketing concepts fared little better.

TV vs. Net, the Net is Winning www.ThirdNature.net Mark R. Madsen Slide 32

Marketing Spend is Shifting in Response www.ThirdNature.net Mark R. Madsen Slide 33

It’s a Multi-Channel World Now Each of these new channels has measurement data coming from different sources, often external and out of your control. www.ThirdNature.net Mark R. Madsen Slide 34

Marketing Has Relatively Few Outcome Metrics 1. Input: measures the upfront part of a process like cost • how much you spent on a TV spot during the super bowl 2. Delivery: measures the process but not the effect • reach of that super bowl ad 3. Outcome: measures the results • lift from the super bowl ad Harder things to measure: consumer sentiment, brand awareness, brand strength, brand equity 1 2 3 ? www.ThirdNature.net Mark R. Madsen Slide 35

Multichannel Challenges You can calculate the same core metrics for the online channel as for direct marketing or advertising. The hard part is knowing what to do with which channel. e.g. same cost, same reach: • Which is more effective? • For which customer segments? • Do they reinforce? 2 3 1 ? ? www.ThirdNature.net Mark R. Madsen Slide 36

Metric Development Developing online marketing metrics is beyond the scope of this class. A few pointers: • You will need input and delivery metrics for comparison, but should focus on outcome. • Develop delivery and outcome metrics that allow you to test and refine campaigns while they occur. • Try to attribute activity wherever possible • Link metrics to both objectives and tasks/functions www.ThirdNature.net Mark R. Madsen Slide 37

Forrester Metrics Example www.ThirdNature.net Mark R. Madsen Slide 38

Sample Online Marketing Metrics Sales development: Behavior cost per unqualified lead, qualified lead, sales Desired actions, Response to offers opportunity, revenue, margin, new customers Interactions, Feedback Transactions, Effectiveness / efficiency: Reach, Frequency, GRP (just like the old Sentiment models) on a per channel basis Sentiment and trends # of unique visitors, Visit frequency Similar PR metrics, e.g. favorable/unfavorable Time on site, Registrations mentions open rate, click rate, bounce rate Influence Loyalty: Inbound links related to a profile or user time on site relative to benchmarks other sites Ratio of links/clicks vs. all users repeat business / visits, % returning Timing of links/clicks, Connections customer loyalty survey data Engagement If you have widgets or applications:: an activity measure of users / total users Downloads, Installations Virality - % growth of message or advert Activations, Embeds Frequency of use www.ThirdNature.net Mark R. Madsen Slide 39

Online Marketing Case: Will It Blend? Measurements: • >2M views on YouTube • Google page 1 for “blend” • pagerank raised to 6 • 55,000 inbound links • 83,000 channel subscribers • > 500 Facebook groups • 5 Digg front page stories • TV news mentions • Newspaper mentions www.ThirdNature.net Mark R. Madsen Slide 40

The Online Channel Has Advantages The online channel can provide realtime feedback where old channels sometimes have a data lag of months. Messages and offers can be tested while a campaign is running, rather than between campaigns. This requires that you collect the data to manage the process. www.ThirdNature.net Mark R. Madsen Slide 41

About the Presenter Mark Madsen is president of Third Nature, a technology research and consulting firm focused on business intelligence, data integration and data management. Mark is an award-winning author, architect and CTO whose work has been featured in numerous industry publications. Over the past ten years Mark received awards for his work from the American Productivity & Quality Center, TDWI, and the Smithsonian Institute. He is an international speaker, a contributing editor at Intelligent Enterprise, and manages the open source channel at the Business Intelligence Network. For more information or to contact Mark, visit http://ThirdNature.net.

About Third Nature Third Nature is a research and consulting firm focused on new and emerging technology and practices in business intelligence, data integration and information management. If your question is related to BI, open source, web 2.0 or data integration then you‘re at the right place. Our goal is to help companies take advantage of information-driven management practices and applications. We offer education, consulting and research services to support business and IT organizations as well as technology vendors. We fill the gap between what the industry analyst firms cover and what IT needs. We specialize in product and technology analysis, so we look at emerging technologies and markets, evaluating the products rather than vendor market positions.

Creative Commons Image Attributions Thanks to the people who supplied the creative commons licensed images used in this presentation: kid gives finger.jpg - http://flickr.com/photos/kevinclark/9826288/ riot police line small.jpg - http://flickr.com/photos/73594239@N00/25719098/ anne hathaway.jpg - http://flickr.com/photos/barbaradoduk/177959197/ baby birthday.jpg - http://flickr.com/photos/yoshimov/19513076/ teapot.jpg - http://flickr.com/photos/joi/411403/ darasuram temple.jpg - http://flickr.com/photos/ravages/129783888/ us capitol building.jpg - http://flickr.com/photos/jcolman/542294684/ hamadan people mosaic.jpg - http://flickr.com/photos/hamed/225868856/ well town hall.jpg - http://flickr.com/photos/tuinkabouter/1135560976/ watchmaker.jpg - http://flickr.com/photos/dashananda/310662720/ highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688 web1-0 corporate logo sheet web 2-0ized.jpg - http://flickr.com/photos/stabilo-boss/93136022/ web 2-0 logos part1.jpg - http://flickr.com/photos/stabilo-boss/93136022/ meerkat.jpg - http://flickr.com/photos/peasap/1089208526/ Gare do Oriente Lisbon.jpg - http://flickr.com/photos/higaara/228673603/ motionless in crowd2.jpg - http://flickr.com/photos/laburbuja/149566116/ snail1.jpg - http://flickr.com/photos/7147684@N03/1037533775/ social_architecture.jpg - http://flickr.com/photos/karen-ward/268612548/ baby_with_lemon 55381094_10694660e5.jpg - http://flickr.com/photos/pichichi/55381094/ laptop face.jpg - http://flickr.com/photos/sd/7746599/ www.ThirdNature.net Mark R. Madsen Slide 44

Creative Commons Thanks to the people who made their images available via creative commons: book of hours manuscript2.jpg - http://flickr.com/photos/jeffrey/89461374/ card catalog4.jpg - http://flickr.com/photos/deborahfitchett/2372385317/ royal library san lorenzo.jpg - http://flickr.com/photos/cuellar/370663920/ outdated gumshoe.jpg - http://flickr.com/photos/olivander/372385317/ book of hours manuscript1.jpg - http://flickr.com/photos/jeffrey/89461261/ semantic network visualization.jpg - http://flickr.com/photos/toby_maloy/102413554/ subway dc metro.jpg - http://flickr.com/photos/musaeum/509899161/ Gare do Oriente Lisbon airport.jpg - http://flickr.com/photos/higaara/228673603/ toolbox.jpg - http://www.flickr.com/photos/booleansplit/2376359338/ crowd_melbourne.jpg - http://www.flickr.com/photos/akc77/3370167184/ social_net_mosaic.jpg - http://www.flickr.com/photos/luc/1824234195/ befriend.jpg - http://flickr.com/photos/ehrgeizier/114385285/ martini.jpg - http://www.flickr.com/photos/tapps/2204393655/ four cupcake guys (frogs).jpg - http://www.flickr.com/photos/abielskas/114946978/ old man union square selling.jpg - http://flickr.com/photos/ktb/4683842/ highway storm.jpg - http://flickr.com/photos/areyoumyrik/235230688 Surfer - http://www.flickr.com/photos/millzero/2093324718 www.ThirdNature.net Mark R. Madsen Slide 45

Creative Commons Thanks to the suppliers of the following images: Market – http://flickr.com/photos/baboon/309793875/ Spider – http://flickr.com/photos/gyuvallos/72283771/ Orange wall – http://flickr.com/photos/satosugar/50776976/ Weaver in Peru – http://flickr.com/photos/slack12/442373910/ Apples and oranges – http://flickr.com/photos/thedepartment/131206032/ Envelope – http://flickr.com/photos/psd/1428129861/ Web services – http://flickr.com/photos/psd/479994769/ Two choices – http://flickr.com/photos/cayusa/1441194460/ Forest bluebells – http://flickr.com/photos/good_day/149239579/ Baobab - http://flickr.com/photos/dmontesi/66753950/ Writing code – http://flickr.com/photos/cdm/72250667/ Woodworking – http://flickr.com/photos/rigoletto/126367565/ Febo – http://flickr.com/photos/jshyun/1573065713/ cliff divers – http://flickr.com/photos/raveller/ Thai market – http://flickr.com/photos/tuey/55106754/ spider – http://flickr.com/photos/gyuvallos/72283771/ dehydrated water – http://flickr.com/photos/dcreeves2000/139184796/ Meerkat – http://flickr.com/photos/nicklawes/90796755 Subway – http://flickr.com/photos/neilsphotoalbum/504517855/ Robot Bastard – © 2001 Rob Schrab, http://robotbastard.robschrab.com/index.html www.ThirdNature.net Mark R. Madsen Slide 46

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Social Media Intro For Business Intelligence People

by mark madsen on May 22, 2009

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Social Media Intro For Business Intelligence People — Presentation Transcript