What is Social Media? It’s basically about communication: you want your customers to know, like, and trust you, and these are powerful tools Don’t focus too much on the channels — these are like different languages. The content and value of the conversation is what counts It’s a process, not an event — to build relationship with potential customers, and maintain a good relationship with existing customers
Five Reasons to Embrace Social Media 1. You’re already involved in social media Your employees are doing it Discussions about brand are taking place If you participate you can shape outcomes 2. Comparative advantages Word of mouth is the #1 influencer of purchases Does not require a media budget Viral effect can carry a message a long way 3. Revenue growth Among the top 100 Brands, those using social media saw 18% lift in revenue (Altimeter/Wet Paint 2009) 91% of Inc. 500 use social media (Umass Dartmouth 2009)
Five Reasons to Embrace Social Media 4. Must-have for corporate awareness Creating brand awareness and consideration Inbound marketing / research Community relations Recruiting / employee relations Investor relations Crisis / corporate communications 5. Search engine rankings Can produce great results
Social Media is Important Social networks now represent the fastest growing Internet segment – 3x the rate of overall Internet growth. (2009) Social networking sites are growing at the rate of 47% annually, reaching 45% of total web users. (2006) Social networking and blogging are now the 4th most popular online activities according to Nielsen’s recently released Global Faces and Networked Places report. (2009) Source: UMASSD Center for Marketing Research 2008
Leading Companies are Turning to Social Media Source: UMASSD Center for Marketing Research 2008
Social Media Pitfalls 1. Rush to action without a plan 2. Lack of objectives and measurement 3. Content guidelines 4. Failing to engage audience 5. Limited reach
Social Media Pitfall #1: Rush to Action Rushing to action without a plan (shiny new object) Hasty decisions and knee-jerk reactions One-off approach Focus on the wrong objectives or platforms Failing to understand requirements and resources
Social Media Pitfall #2: Measurement Success requires Defined and measurable objectives Metrics that tie to those objectives Tools and knowledge for tracking metrics Ability to translate online activity into business results Methodology to translate ROI
Social Media Metrics Engagement Metrics Site visits Unique visitors Visit frequency Page views per visit Time on site Registrations Conversions Web 2.0 Metrics Posts Tweets and ReTweets Facebook Fans Followers Ration: following to follers Mentions Content Views Content Uploads Shared pages Sentiment ration Page 1 search rankings
Social Media Pitfall #3 Content While content is critical, it is often an afterthought Must be engaging Requires content planning Format: copy, video, photos, audio Type: original vs. repurposed Source: where will it come from Brand guidelines, legal issues, etc.
Social Media Pitfall #4 Social Media is about listening and interacting vs. shouting “Spray and Pray” doesn’t work Think: Telephone vs. Megaphone Engagement hurdles: Lack of interesting and relevant content Self-focused content Too much self-promotion
Social Media Pitfall #5: Limited Reach Social media only works with a large audience Process of building a network is often overlooked Without reach, there is no ROI
Avoiding Social Media Pitfalls Goals: Who and What Define audiences and identify influencers Define objectives Set reasonable expectations Media: which social platforms? Engagement: how to listen and interact? Content: types of media, voice, frequency Duties: producing, posting, sharing, responding Policy: addressing negative comments Reach: how will you promote your program? Online, email, offline, PR, word of mouth How will you build your network? Resources: what is needed: what will it cost? People, process, assets, tools, etc. Metrics: how will you measure success What metrics will you use? What tools will you use? How will you translate into ROI?
Social Media Strategy Tactics: Facebook,twitter, etc. Research, planning, listening… Components of a social media strategy: Audiences Objectives and metrics for measuring success Team and resources Key influencers (and tactics for engaging them) Social media sites, networks, and groups Content guidelines Operational plan for producing, posting, sharing Marketing plan to promote and build network Tools (influencer tracking, monitoring, reporting) Methodology for translating activity into ROI
Forrester’s 4-step approach to set social strategy P O S T PeopleAssess your customers’ social activities ObjectivesDecide what you want to accomplish StrategyPlan for how relationships with customers will change TechnologyDecide which social technologies to use
People Where are your customers online? What are your customers’ social behaviors online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? How do your customers use social technologies in the context of your products.
Roles Social strategist: Responsible for the overall program, including ROI Community manager: Customer facing role trusted by customers 36
Social Technographics Ladder Publish a blog Publish your own Web pages Upload video you created Upload audio/music you created Write articles or stories and post them Creators Post ratings/reviews of products/services Comment on someone else’s blog Contribute to online forumsContribute to/edit articles in a wiki Model audiencepropensity to usesocial media inbusiness decisionmaking/adoptionactivity Critics Use RSS feeds Add “tags” to Web pages or photos “Vote” for Web sites online Collectors Maintain profile on a social networking site Visit social networking sites Joiners Read blogs Watch video from other users Listen to podcasts Read online forums Read customer ratings/reviews Spectators Groups include people participating in at least one of the activities monthly. None of the above Inactives
Today: Product-Centric Channels C C C C C C C C C Retailer MSP VAR Vendor Distributor Offers Customer Master VAR DMR Referral Partner
Tomorrow: Customer-Centric Channels C C C C C C C Retailer MSP VAR Vendor Distributor Customer Needs Master VAR DMR Referral Partner
Progressive approach to becoming a social enterprise Customer Advocacy TRANSFORM Loyalty Evolve Relationships ENGAGE
Agencies Test to see that they focus on relationships, not campaigns. Ask when they failed at social media – and what they learned. Hire only agencies with “scar tissue.” Leverage agencies and have them train you in all things social. Enable fast, concerted entry into the market. Be wary of agencies wanting to craft your strategy – only you can do that. 41
Example “Social Readiness” Health Check Survey 42 Ideally, you should be at “4.0” for launch. Area of opportunity.
A Kryptonite lock is picked apart by a blogger with a Bic pen. First blogs, then the New York Times amplify the feat as the company fails to respond. Social Relevance: Viral effect costs $15 million in product recalls. September 2004: Kryptonite
L’Oreal is skinned alive by the first big fake blog fiasco Social Relevance: The first demonstration that flashy advertising values don’t work in social media. June 2005: L'Oreal
Jeff Jarvis invents “angry blogger slams customer service syndrome”. Hundreds of others blog about similar shoddy Dell customer service. Social Relevance: Dell is one of the first companies to learn that, in social media, you ignore your customers at your peril. August 2005: Dell
Chevy’s Design your own Tahoe competition loses its big end to crowdsourced complaints. Social Relevance: A big brand learns first-hand it has no control when it comes to social media marketing. April 2006: Chevy Tahoe
Folksy “Isn’t Wal-Mart great” travel blog “Wal-Marting Across America” hits a reputation pot-hole when unmasked as being paid for by company. Social Relevance: Black eye for Wal-Mart amid accusations that it was trying to shift attention away from criticism of its labor practices. October 2006: Wal-Mart
Taco Bell suffers the ultimate PR horror, rats taking over one of its Manhattan chains. And a local TV news crew was there to document it. Social Relevance: Rodents in the kitchen making local news isn’t exactly new. But 1.2 million views on YouTube? That’s global embarrassment and one still viewed. February 2007: Taco Bell
Unilever’s Dove brand finds itself on the receiving end of an aggressive Greenpeace social media campaign against palm oil-driven deforestation. Social Relevance: Greenpeace, understanding the power of compelling, shareable content uses YouTube to stoke consumer ire against the largest palm oil buyer. April 2008: Dove
In the wake of an employee gross-out video that spread virally on YouTube, Domino’s USA president takes a leaf out of JetBlue’s book and issues a social media apology. Social Relevance: Once crisis comms was handled by press releases and carefully co-ordinated TV interviews. Now the discourse plays out online in real time. April 2009: Domino’s Pizza
United Airlines handles hundreds of lost and damaged baggage complaints each year. But aggrieved Dave Carroll went viral with his ballad of a broken guitar. Social Relevance: United had 9 months to placate Carroll before he penned his protest song. Instead they were confronted with a backlash millions empathised with. July 2009: United
Greenpeace targeted Nestle but only when activists besieged Nestle’s Facebook page and the company got aggressive and deleted posts did it become a global story. Social Relevance: Nestle’s inept social media community management made it look like an arrogant, tin-eared corporate to the public. Just what Greenpeace wanted. February 2010 Nestle
BP spills millions of barrels of the oil into the Gulf of Mexico. Finds its online PR response clogged by Facebook outrage and a fake, hilarious Twitter account. Social Relevance: While BP spent £93m on ads, social media kept the pressure on. 350 “Boycott BP” Facebook groups formed and 188,000 followed fake @BPGlobalPR. June 2010: BP
Social Media Triage 55 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes This framework was built using the USAF Blog Triage. Let post stand and monitor.
Social Media with SAP Who: Technology decision makers, buyers and influencers What: Twitter, Linkedin, Facebook, Social sharing, blogs, YouTube, SCN How: Active listening and support in all campaigns Results: Driving leads for SAP North America 5major groups, 2M+ members 10+ major groups 50K+ members 45K followers30+ accounts 55K fans, 30+ active pages 40K visits via blogs “SAP Community Network…may be the most extensive use to date of social media by a corporation.” Richard Adler, Leveraging the Talent-Driven Organization, The Aspen Institute, March 2010
Industry Best Practice Many businesses can create stickinessby building user communities. Every year, … SAP hosts conferences where customers can meet with IT experts, software developers, and, most important, each other. These aren’t sales events per se, but you can be sure that attendees leave with a feeling of partnership with SAP.” Jack and Suzy Welch, The Welch Way Business Week, September 2008 “ THE WELCH WAY SAP has set the standard— certainly within the tech industry — and offers a good example of the potential. SAP is one of the leaders in the scale, diversity, and integration of its vast ecosystem.” John Hagel and John Seely BrownHow SAP Seeds InnovationBusiness Week, July 2008 “ “ SAP ranks in the top ten of "the world's most valuable brands based on how they leverage social media to interact with customers.” Charlene Li The World’s Most Valuable Brands. Who’s Most Engaged? Altimeter, August 2009 SAP has elevated its community development into an entirepractice…it allows the most dedicated members of its community direct access to senior management to provide feedback on products, services, and strategy. This is the best way to stay customer-focused and relevant in a rapidly changing competitive environment.” Chris Andrews Four Components of Successful Innovation, Forrester, April 2009 “
SAP Social Media Guidelines for Employees Identify yourself Be Honest Be Respectful Separate Opinions from Facts Add Value Be Engaged and Be Informed Aim for Quality, not Quantity Don't Pick Fights Protect Your Privacy How to Handle Media Inquiries Legal Considerations Social Computing and Your Primary Role
SAP Employee NetworkMany Tools – One Intranet SAP Employee Network ManagedContent Spark Ideas Questions MyPage SAP Employee Network Tools Corporate Portal Tube Decisions Talk People Communities Documents Connect Social Media Wizard Search
SAP Employee NetworkCommunities What are Communities?
Collaborate online and network across teams
Provide information, give feedback and discuss
Find the right people (experts, peers, etc.) and share knowledge fast and easily
SAP Employee NetworkTalk What is Talk? Talk is a secure, internal microblogging platform for SAP. Users post short notices (up to 140 characters) which are broadcast to friends and colleagues across SAP via the web, desktop applications, email, or Blackberry client. Interesting features
SAP Employee NetworkQuestions What is Questions? Questions offers you the unique opportunity to ask or vote for questions or suggestions you’d like to see addressed at Global All Hands meetings and during special communications campaigns. Your votes can help ensure the most important questions get to the top. Make them count!
Post questions in your name or anonymously.
Vote for questions that are important to you.
An encrypted hash value of your UserID is maintained to hinder double voting.
However, to guarantee your anonymour vote, your actual user is not stored anywhere.
Business Network Transformation Enterprise Processes
The Value of Social Networking for the Enterprise Improve team collaboration internally and externally Access the value of employee knowledge and networks Business Intelligence External Networks Internal Networks Enterprise Processes
The Value of Social Networking for the Enterprise ENTERPRISE SOCIAL NETWORKS Business Intelligence External Networks SOCIAL INTELLIGENCE Internal Networks COLLABORATION Enterprise Processes
Social CRM With social tools, every employee can talk to customers and prospects This can create confusion with clients You need to centralize data so customers have a holistic experience
SAP CRM social strategyDesign principals for leveraging the social Web with CRM CollaborationFacilitate collaboration capabilities across all roles andbusiness processes InsightConsolidated view of the enterprise (Operational and ‘Social’) Social Media InterfaceAbility to leverage new communication channels to gain better customer insight and improve customer experience Technology Enablers
Twitter Marketing Campaigns Features Simple and intuitive UI based on widely accepted CRM Web Client UI Provide Consolidated View of the Enterprise – Operational & ‘Social’ Insights with respect to quality of service offerings and marketing initiatives Leverage social media channels to execute planned and ad-hoc campaigns thus widening 'message' reach to where your customers are
Enterprise Performance Management Governance Risk and Compliance Strategy Management Planning, Budgeting and Forecasting RiskManagement Access Control Profitability andCost Management Process Control Global Trade Services Consolidation Spend and Supply Chain Environmental, Health and Safety BusinessIntelligence Information Management Query, Reporting, and Analysis Reporting Data Integration Data Quality Management Dashboards and Visualization Search and Navigation Master Data Management Metadata Management Advanced Analytics SAP BusinessObjects Product Portfolio
WiGo Prototype Internet Amazon, Epinions, Ciao, Buzillions... Unstructured Data WiGo (Cloud Native) Client Applications On-Demand & On-Premise ERP, CRM etc. Alerts Collect Text & SentimentAnalysis Visualize Structured Enterprise Data In-Memory Database DBMS
WiGo Project: Brand and Product Affinity using Structured and Unstructured Data Imagine you are a Product Manager…. 1.3 Billion blogs.. 3.5 Billion readers globally.. 7 million new web pages created daily.. 1 million blog posts in 24 hours .. Do you know what they are saying about your Products? Get closer to customers
Transform unstructured data from internal and external resources into actionable insights
Combine with structured data from enterprise systems (e.g. CRM, ERP etc.)
Perform instant analysis to support decision making
WiGo Architecture Internet Amazon, Epinions, Ciao, Buzillions... Unstructured Data WiGo (Cloud Native) Client Applications On-Demand & On-Premise ERP, CRM etc. Alerts Collect Text & SentimentAnalysis Visualize Structured Enterprise Data In-Memory Database DBMS
WiGo: Applications across the Enterprise Quality Innovation Loyalty Risk Insight Operations Voice of the Market Product Innovation Compliance Voice of the Customer Competitive Analysis Patent Monitoring New Product Launch Monitor Requirement Gathering Anti-Money Laundering Crisis Mitigation Issue Correction Risk Management Brand Reputation Management Discover Market Trends Communications Compliance Campaign Management Call Center Optimization Financial Monitoring Brand Infringement Brand Fraud Containment Procurement Optimization
The Value of Social Networking for the Enterprise ENTERPRISE SOCIAL NETWORKS Business Intelligence External Networks SOCIAL INTELLIGENCE Internal Networks COLLABORATION Enterprise Processes
Collaborative Decisions Sales Shipping Business Users Gartner Strategic Planning Assumption “In 2009, Collaborative Decision Making will emerge as a new product category that combines social software with BI platform capabilities”
Operational Costs Operation Risk Photo by Duncan Davidson on Flickr
Managing Risk and ComplianceEnd-to-End Process Managing Risk and Compliance ensures all categories of risk across the organization are aggregated at the enterprise level and managed holistically CFO Head of Compliance/ Internal Audit Vice President Tax/ Head of Compliance Head of Risk Management Head of Internal Audit/ Chief Security Officer Risk-Based Internal Controls Duty Reduction and Trade Compliance Enterprise Risk Management Access Management Strategy/ Planning Trade Policy Planning Risk Planning Risk Management Risk Identification Risk Analysis Access Planning Document Compliance Initiatives Import/Export Compliance Monitoring Minimize Duty, Taxes, Fines, Penalties Risk Response Risk Monitoring Business Operations Plan and Perform Assessments and Tests Remediate Issues and Certify Results Access Analysis & Response Access Monitoring Internal Audit
Thoughts about different social media Blogs Only if you’re passionate about something (but all marketing should feature somebody passionate about something) Twitter If you have any kind of public-facing role Internal micro-blogging E.g. SAP Talk, Yammer Great learning environment Everybody: Tell people what you’re doing Give links to useful resources Ask and questions Video In moderation… Facebook Personally, I think it’s too personal LinkedIn Not a bad place to host a conversation SDN Lots of people, not as broad as we’d like, SEO problems today Other Find out where prospects already hang out
Still treating social media as a fad? It is — just like email, the internet, PCs…
Fundamentals Conversation, Not Selling Relationships, Not Transactions Listen, Learn, Participate Slide144