Results from the 2008 Tribalization of Business Study

469 views
442 views

Published on

Presented by SNCR Senior Fellow Francois Gossieaux & Ed Moran, Deloitte, SNCR Research Partner

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
469
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Results from the 2008 Tribalization of Business Study

  1. 1. HOW TO ACHIEVE TRANSFORMATIONAL CHANGETHROUGH COMMUNITIES AND SOCIAL NETWORKS
  2. 2. Deloitte (www.deloitte.com)Beeline Labs (www.beelinelabs.com)Society for New Communications Research (www.sncr.org)
  3. 3. OVERVIEW: FIRST ACT: 
 UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES SECOND ACT: A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY THIRD ACT: THE MAJOR TAKEAWAYS FROM THE STUDY FOURTH ACT: SOME CASE STUDIES 3
  4. 4. FIRST ACT: 
UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES 4
  5. 5. WHAT’S THIS TRIBAL THING ALL ABOUT? TRIBALISM IS THE VERY FIRST SOCIAL SYSTEM THAT HUMAN BEINGS EVER LIVED IN, AND IT HAS LASTED MUCH LONGER THAN ANY OTHER KIND OF SOCIETY TO DATE. 
 (WIKIPEDIA) 5
  6. 6. WHY NOW? SOCIAL MEDIA HAPPENED…A PLATFORM AND CULTURE OF PARTICIPATION HAS EMERGED – GIVING POWER TO ALL YOUR EMPLOYEES, CUSTOMERS AND PROSPECTS TO BEHAVE TRIBALLY AGAIN 6
  7. 7. THE MOTIVATIONS ALLOWING THIS TO WORK… PEOPLE WANT TO CONNECT WITH PEOPLE PEOPLE WANT TO HELP AND BE HELPED
 PEOPLE OPERATE EITHER IN A SOCIAL FRAMEWORK 
 OR A MARKET FRAMEWORK 7
  8. 8. UNDERSTANDING THE DRIVING FORCES OFCOMMUNITIES THE MORE CONTENT YOU HAVE THE MORE MEMBERS YOU WILL GET. THE MORE MEMBERS YOU HAVE THE MORE CONTENT YOU WILL GET. THE BETTER YOU MATCH CONTENT AND MEMBERS TO MEMBER PROFILES THE MORE MEMBERS AND CONTENT YOU WILL GET.THE EASIER IT IS TO DO TRANSACTIONS THE MORE MEMBERS YOU WILL ATTRACT. THOSE PILLARS CREATE THE DYNAMICS OF INCREASING RETURNS WHICH HELP COMMUNITIES DELIVER GAME CHANGING RESULTS 8
  9. 9. SECOND ACT:A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY 9
  10. 10. TOP USAGE SCENARIOS: Customer service  Idea genera8on  Co‐innova8on  Amplifying Word of Mouth  New Product Development  Reputa8on management  Product tes8ng  CANARY IN THE COALMINE Market research  Developer rela8ons  Public rela8ons  LONG TAIL SALES Employee communica8ons  General Marke8ng  10
  11. 11. TOP BUSINESS OBJECTIVES: Reduce market research costs  Bring outside ideas into the organiza8on faster  Generate word of mouth  Improve PR effec8veness  Increase customer loyalty  Reduce customer support cost  Decrease customer acquisi8on cost  Increase brand awareness  Increase new product success ra8os  11
  12. 12. WHO’S IN CHARGE? Sales  Employee communica8ons  Product development  MARKETING  IT  Public Rela8ons  R&D  Finance  Customer service  12
  13. 13. DISCONNECT:
Not
in
support
of
any
goal…
 13
  14. 14. 14
  15. 15. MEASURING PROGRESS AND SUCCESS – QUALITATIVE Tonality  SoNware downloads  Sustainability  engagement  Sen8ment  Ac8vity levels  Par8cipa8on rate  Impact on sales  Impact on cost  Growth  Amount of learning  Anecdotal stories   15
  16. 16. 16
  17. 17. Could
lead
to
premature
shutdown
of
community
 17
  18. 18. 18
  19. 19. 19
  20. 20. THIRD ACT:THE MAJOR TAKEAWAYS FROM THE STUDY 20
  21. 21. TAKEAWAY #1: 
COMMUNITIES ARE ABOUT DELIVERING GAME-CHANGING RESULTS INCREASE REVENUE PER COMMUNITIES CAN CUSTOMER DRAMATICALLY – I.E., 50% INCREASE PRODUCT COMMUNITIES WILL INTRODUCTION SUCCESS RATIOS COMMUNITIES AMPLIFY EVERYTHING YOU DO – 
 INCREASING EFFECTIVENESS AND DECREASING COSTS 21
  22. 22. TAKEAWAY #2: 
THE RISE OF THE CMO 2.0? COMMUNITIES SHOULD BE AN IMPORTANT PART OF THE CMO’S TOOLSET(BUT FOR MANY LARGE COMPANIES – THERE IS AN UNDER-INVESTMENT AND SCALE PROBLEM) COMMUNITIES SHOULD EVOLVE THE ROLE OF THE CMO INTO 
 CHIEF COMMUNITY OFFICER(BUT THAT WILL REQUIRE DRASTIC CHANGES IN ATTITUDE AND APPROACH TO MARKETING) IF DONE PROPERLY, COMMUNITIES WILL TRANSFORM THE WAY MARKETING WORKS (REDUCED COSTS, IMPROVED EFFECTIVENESS, NEW OPPORTUNITIES) 22
  23. 23. TAKEAWAY #3: 
THE NEED FOR NEW MANAGEMENT THINKING MISMATCH BETWEEN COMMUNITY GOALS AND ASSOCIATED INVESTMENTS MAJOR GAPS BETWEEN COMMUNITY GOALS AND WHAT IS BEING MEASURED COMMUNITIES HAVE TO COMBINE WITH MAJOR TALENT INITIATIVES COMMUNITIES WILLTRANSFORM MOST BUSINESS PROCESSES 23
  24. 24. TAKEAWAY #3.5: 
THE WORST PRACTICES ENJOY WIDE ADOPTIONTHE BUILD IT AND THEY WILL COME (AGAIN) FALLACY THE LET’S KEEP IT SMALL SO IT DOESN’T MOVE THE NEEDLE PHENOMENON THE NOT INVENTED HERE SYNDROME 24
  25. 25. FOURTH ACT:SOME CASE STUDIES 25
  26. 26. Wal-Mart Stores 11 Moms
 –  Community for sharing money saving tips via video clips –  Independent community – not required to be Wal-Mart shoppers and can write about other deals –  10 best clips get $6,000 in groceries –  11 Moms are being invited to Bentonville for a company tour and for a meeting with the CEO –  Done in partnership: •  Joint partnership with Flip •  Joint partnership with YouTube 26
  27. 27. Fiskars – the fiskateers program
 –  3 original ambassadors –  Goal to recruit 250 additional ambassadors in 6 months – achieved that in 48 hours and reached 5000 Fiskateers in 18 months. –  Goal to increase chatter by 10% – 
 instead increased by 600% –  Goal to increase sales by 10% - 
 instead increased by 300% –  Community provided a huge support base when they ran into a PR nightmare –  Program, which is now the main marketing engine is now fully funded by the big box stores 27
  28. 28. THE DIFFERENCE BETWEEN THE TWO PROGRAMS? A Successful 
 A Successful Scrapbooking
MARKETING PROGRAM MOVEMENT(will need continuous attention) (Going by itself) 28
  29. 29. SCALABILITY ISSUES?Bank of America
 –  <20,000 members –  BoA has more than 10M small business users –  Scaling business by 0.5% = 500,000 new accounts –  New SB account is worth $100 to BoA through referral fees –  500K accounts = $50M –  This does not scale! 29
  30. 30. HOW MANY COMMUNITIES CAN YOU BELONG TO? Dozens of Small Business Communities 30
  31. 31. THINKING OUT OF THE BOX 31
  32. 32. QUESTIONS? Contacts: Francois Gossieaux, Beeline Labs: francois@beelinelabs.com Ed Moran, Deloitte: emoran@deloitte.com 32

×