The Elusive Web 2.0 Fact or Fiction? Presented by: Tony Pietrocola

1 active marketing interactive Web 2.0 allows you to reach your audience with better measurement , more granular targeting and opportunities for collaboration and viral sharing -- Wall Street Journal

Ask yourself… Is my web presence Customer Centric? example Does it Motivate my audience? example Is my site being used to its fullest Collaborative Potential ? example It’s all about one thing: The Customer Experience Remember Ronald Reagan and the Pony! 2 active marketing interactive

Is my web presence Customer Centric? example

Does it Motivate my audience? example

Is my site being used to its fullest Collaborative Potential ? example

It’s all about one thing: The Customer Experience

Remember Ronald Reagan and the Pony!

What exactly is Web 2.0 Web 2.0 is a nebulous catchall to identify the newest generation of Internet collaboration, such as: MySpace, FaceBook, Flickr, Wikipedia and YouTube. An honest conversation driven by mass not the other way. The very notion that Web 2.0 is anything tangible is fiction. It’s about connecting. It’s about collaborative content and redefining customer experience. 3 “ If it’s cool, it’s probably Web 2.0.” active marketing interactive

Web 2.0 is a nebulous catchall to identify the newest generation of Internet

collaboration, such as: MySpace, FaceBook, Flickr, Wikipedia and YouTube.

An honest conversation driven by mass not the other way.

The very notion that Web 2.0 is anything tangible is fiction.

It’s about connecting.

It’s about collaborative content and redefining customer experience.

Web 2.0 is about connecting Allow end users to be part of a like minded community and have a voice. It’s no longer just about You it’s truly about your Customers. C-level decision makers are looking for exchange of ideas and openness. Let the more credible community vouch for your products and services. Direct conversations with consumers 9 active marketing interactive

Allow end users to be part of a like minded community and have a voice.

It’s no longer just about You it’s truly about your Customers.

C-level decision makers are looking for exchange of ideas and openness.

Let the more credible community vouch for your products and services.

Direct conversations with consumers

Web 2.0 benefits businesses There will continue to be major innovations that will forever change the way companies interact with their customers – blogs, RSS, social communities. Brands like General Motors, Ford, Whirlpool and Maytag are increasingly using the Web to present and sell their products, as well as to talk to and listen to their customers i.e. influence buying decisions. With 200 million Americans online, no company can afford to overlook the Internet as a way to connect with its customers. The key is to find the right mix of interaction that fits your business to inform, brand and market to your customers while providing a social forum. Easier sell – they are learning and being sold by more credible peers not by you. 4 active marketing interactive

There will continue to be major innovations that will forever change the way

companies interact with their customers – blogs, RSS, social communities.

Brands like General Motors, Ford, Whirlpool and Maytag are increasingly using

the Web to present and sell their products, as well as to talk to and listen to their

customers i.e. influence buying decisions.

With 200 million Americans online, no company can afford to overlook the

Internet as a way to connect with its customers.

The key is to find the right mix of interaction that fits your business to inform,

brand and market to your customers while providing a social forum.

Easier sell – they are learning and being sold by more credible peers not by you.

Benefits of Web 2.0 Inexpensive Mass Appeal Viral networking Easily segment Brand building New channel to influence customers Community of users creates additional value Differentiation means more sales 13 active marketing interactive

Inexpensive

Mass Appeal

Viral networking

Easily segment

Brand building

New channel to influence customers

Community of users creates additional value

Differentiation means more sales

What they are saying 60% of mid-size businesses are investing in Web 2.0 They are investing in… Collective Intelligence 48% Social Networking 37% RSS 35% Podcasts 35% Blogs 35% While industry investment looks like: Retail 77% Technology 74% Financial 63% Healthcare 53% MFG 48% Why: Better customer experience Collaboration Easy and inexpensive to enter new markets Brand differentiation Source: McKinsey Global Survey 2007 5 active marketing interactive

60% of mid-size businesses are investing in Web 2.0

They are investing in…

Collective Intelligence 48%

Social Networking 37%

RSS 35%

Podcasts 35%

Blogs 35%

While industry investment looks like:

Retail 77%

Technology 74%

Financial 63%

Healthcare 53%

MFG 48%

Why:

Better customer experience

Collaboration

Easy and inexpensive to enter new markets

Brand differentiation

Source: McKinsey Global Survey 2007

Why marketers are investing in Web 2.0 E-marketer 2007 Survey 6 active marketing interactive

Who has taken the leap Blogs: Sun | GM (The company’s representative should try to make bold opinions i.e. predictions on the company’s industry) Podcasts: Whirlpool (reach out on the treadmill or in the car) MySpace: VW Helga (be bold, stand out) Virtual Community: Second Life | Tenth Floor Business Communities: Jigsaw | LinkedIn | MetaFilter | Askeet | PartnerUp Our concept: sample | sample 2 RSS 7 active marketing interactive

Blogs: Sun | GM (The company’s representative should try to make bold opinions i.e. predictions on the company’s industry)

Podcasts: Whirlpool (reach out on the treadmill or in the car)

MySpace: VW Helga (be bold, stand out)

Virtual Community: Second Life | Tenth Floor

Business Communities: Jigsaw | LinkedIn | MetaFilter | Askeet | PartnerUp

Our concept: sample | sample 2

RSS

RSS works for everyone Online publishing has made it easy to push published content to subscribers Consumer Bottom Line: Subscribing to feeds saves time. Publisher Bottom Line: Instant distribution of subscribable content. Advertiser Bottom Line: Advertising advantages for opt ins and segments 8 active marketing interactive

Online publishing has made it easy to push published content to subscribers

Consumer Bottom Line: Subscribing to feeds saves time.

Publisher Bottom Line: Instant distribution of subscribable content.

Advertiser Bottom Line: Advertising advantages for opt ins and segments

Breaking the trend Entrepreneurs, CEO’s and marketers are control freaks Great brands have been built on mass media | NOT the case for new brands How can SMB compete and build brands efficiently? Easily Hand your megaphone to your customers so they can evangelize your product Think about how Jet Blue started advertising… Don’t control consumer network, let it go Smartest marketers aim to inspire not control 10 active marketing interactive

Entrepreneurs, CEO’s and marketers are control freaks

Great brands have been built on mass media | NOT the case for new brands

How can SMB compete and build brands efficiently? Easily

Hand your megaphone to your customers so they can evangelize your product

Think about how Jet Blue started advertising…

Don’t control consumer network, let it go

Smartest marketers aim to inspire not control

Loyalty and Web 2.0 Customers who are strongly engaged in the brand community are more likely to remain attached to the group, participate and recommend the brand. Marketers have blogs, forums, chat rooms and online communities to facilitate conversations with their customers. Think Ducati (design and R+D). Consumer-generated marketing means entering into direct conversations with consumers. Offer premium content and rewards to loyal customers. 10 active marketing interactive

Customers who are strongly engaged in the brand community are more likely

to remain attached to the group, participate and recommend the brand.

Marketers have blogs, forums, chat rooms and online communities to facilitate

conversations with their customers. Think Ducati (design and R+D).

Consumer-generated marketing means entering into direct conversations

with consumers.

Offer premium content and rewards to loyal customers.

Customer centricity via Web 2.0 Customer centricity sets the foundation of your online presence and strategically aligns the online customer experience by: Greater control over customer actions Greater connection with customers Greater viral effect Increase in profitability Brand loyalty based on customer centricity is a set of core beliefs which result in: High switching costs Increase in barriers to competitors Increase in relationship lifetime Reduced price comparisons Real measurable results 11 active marketing interactive

Customer centricity sets the foundation of your online presence and strategically aligns the online customer experience by:

Greater control over customer actions

Greater connection with customers

Greater viral effect

Increase in profitability

Brand loyalty based on customer centricity is a set of core beliefs which result in:

High switching costs

Increase in barriers to competitors

Increase in relationship lifetime

Reduced price comparisons

Real measurable results

How do you harness Web 2.0 The do’s… Watch the kids (remember Warren Buffett) Watch the kids in your own company Try it yourself Talk to customers And the don’ts… Assume it’s only for consumers Limit employees online R&D, ok playing! Take it personally, use it as motivation 12 active marketing interactive

The do’s…

Watch the kids (remember Warren Buffett)

Watch the kids in your own company

Try it yourself

Talk to customers

And the don’ts…

Assume it’s only for consumers

Limit employees online R&D, ok playing!

Take it personally, use it as motivation

Web 2.0 drives a superior online experience From Strategy driven by products to strategy driven by customer From Product matters most to online experience matters most From Product data is the key to customer data is the key From All customers are created equal to high profit and high potential Building brand = High Profits 14 active marketing interactive

From Strategy driven by products to strategy driven by customer

From Product matters most to online experience matters most

From Product data is the key to customer data is the key

From All customers are created equal to high profit and high potential

Building brand = High Profits

MOBILE Mobile devices outnumber desktops by a factor of two on a global scale: By 2010 over 2 billion will browse with cell phones Mobile is a revenue generator Mobile is customer centricity it is everywhere! Forward-looking companies are laying the ground work for mobile publishing: Right-now research Promotion reminders - Product promotion codes driving mobile to web Broadcast advertising - mass response, measurement, follow-up Web / Email - Cross promotion and opt-in list building opportunities Account balances / supply chain alerts 15 active marketing interactive

Mobile devices outnumber desktops by a factor of two on a global scale:

By 2010 over 2 billion will browse with cell phones

Mobile is a revenue generator

Mobile is customer centricity it is everywhere!

Forward-looking companies are laying the ground work for mobile publishing:

Right-now research

Promotion reminders - Product promotion codes driving mobile to web

Broadcast advertising - mass response, measurement, follow-up

Web / Email - Cross promotion and opt-in list building opportunities

Account balances / supply chain alerts

RECOMMENDATIONS News Announcements Promotions Promotions with images 16 active marketing interactive

To summarize 17 Be informal Candid dialog with customers Give up control Do something bold yet sensible Become a leader by sharing one’s knowledge about the industry Be different, very different! Any Questions? active marketing interactive

Be informal

Candid dialog with customers

Give up control

Do something bold yet sensible

Become a leader by sharing one’s knowledge about the industry

Be different, very different!

Any Questions?

Thank you for your time. Tony Pietrocola | tonyp@tenthfloor.com | 216.575.1010