The business case for online communities

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    The business case for online communities - Presentation Transcript

    1. The Business Case  for Online Communities for Online Communities Don Tapscott – Author, Wikinomics Barry Libert – Author, We Are Smarter Than Me  b h h Aaron Strout, VP New Media, Mzinga
    2. What You’ll Get Out of Today’s Session The Benefits of Community Featured Case Studies Featured Case Studies` Market Pricing for Communities Demonstrated ROI D t t d ROI How to Get Started: 5 Simple Steps Q&A with the Experts, Don and Barry Reference Materials
    3. Types of Online Communities Marketing Effectiveness • Lead Generation Customer Communities Customer Communities • New Customer Acquisition New Customer Acquisition  • Customer Adoption & Loyalty • Prospects • Customers • Product & Service Innovation • Partners • Customer Service & Support • Market Research Market Research Employee Communities Employee Effectiveness • Employees • Alumni • Recruiting & Retention • Shareholders • Communications • Training & Development • Employee Performance & Growth • Innovation • Intellectual Property 3
    4. The Power of Customer Communities Extend Brand Visibility Market  Market • Establish a continual dialogue with the market Demand  Research Generation • Actively promote thought leadership • Create viral “buzz” around progress & success Product  Prod ct Customer  Customer New  • Extend market reach & access to new target  g Customer  Innovation Community  Acquisition audiences Increase Revenue & Drive Efficiencies Customer  Customer  Service &  Adoption &  • E il di di t l id tif i bl l d Easily and immediately identify viable leads Support Loyalty • Streamline in‐ & out‐bound sales & marketing  communications • Reduce marketing costs by leveraging viral Reduce marketing costs by leveraging viral  channels • Shorten sales cycle 4
    5. The Power of Customer Communities Elevate Customer Satisfaction Market  Market • Provide an outlet for inquiries, suggestions, etc. Demand  Research Generation • Provide direct access to key experts / executives  within your business New  • Leverage the speed of trust Product  Prod ct Customer  Customer Customer  Innovation Community  Acquisition • Streamline customer education  Customer  Customer  Increase Productivity Service &  Adoption &  Support Loyalty • Create an extensible services & support model • Centralize access to resources • Minimize the need for one point of contact  Manage Risk • Proactively address client issues • Increase business agility Increase business agility • Obtain more immediate information re:  product/service concerns 5
    6. The Power of Customer Communities Speed Time to Market Market  Market • Leverage wisdom of crowds to help drive  Demand  Research Generation product and service enhancements • Streamline launch & rollout processes Customer  Customer New  Prod ct Product  Community  Customer  Innovation Acquisition Gain Direct Access to Business Intelligence • Reduce the cost of R&D Customer  Customer  • Capture, track and analyze trends, areas of Capture, track and analyze trends, areas of  Service &  Adoption &  Support Loyalty interest, etc. 6
    7. The Power of Employee Communities Attract & Retain Talent Intellectual  Intellectual Property Recruiting &  • Create a culture of openness l f Retention • Identify and reward employee contributions • Connect people across departments & locations Workplace  Workplace Commun‐ Comm n Innovation Community  ications • Foster teamwork and collaboration Improve Employee Morale & Satisfaction Performance Performance  & Growth Training &  • id li Establish organization‐wide alignment E t bli h i ti t Development • Create clear channels of communication • Reduce barriers between executives & staff • P Proactively address change management i l dd h • Invite employees to participate in business  decisions • Collect feedback & measure ongoing satisfaction Collect feedback & measure ongoing satisfaction 7
    8. The Power of Employee Communities Enhance Employee Productivity Intellectual Intellectual  • Capture and sharing best practices Recruiting &  Property Retention • Provide centralized access to key information,  documentation and experts • Drive knowledge sharing Workplace  Workplace Commun‐ Comm n Innovation Community  ications • Increase virtual team effectiveness Performance Performance  & Growth Training &  Drive Employee Growth & Performance Di E l G th & P f Development • Facilitate formal and social learning • Establish mechanisms for mentoring • Easily identify budding talent & SMEs E il id if b ddi l & SME • Locate employees with ancillary skill sets to their  job roles • Promote opportunities for horizontal & upward  Promote opportunities for horizontal & upward career advancement 8
    9. The Power of Employee Communities Foster Innovation Intellectual Intellectual  • Leverage the wisdom of crowds to advance  Recruiting &  Property Retention your business • Solicit, rate, review and track suggestions, ideas  and insights on your business strategy, products  Workplace Workplace  Comm n Commun‐ Innovation Community  ications & l ti & solutions Performance  Performance Reduce Risk Training &  & Growth Development • Capture and repurpose subject matter expertise  & key intellectual capital  • Provide a platform for retirees and alumni to  stay engaged • Establish mechanism for alumni mentoring and  extended workforce 9
    10. Case Study: Procter & Gamble – R&D Situation: • In 2000, A.G. Lafley new CEO, change to R&D • Perception: Despite an incredible track record, innovation  Perception: Despite an incredible track record innovation was not happening fast enough Mission & Challenges • Goal: By the end of the decade, 50% of all new P&G  G l B th d f th d d 50% f ll P&G products and technologies come from outside • Massive change resistance Results By 2006: • 35% of all ideas are from outsiders • 60% productivity increases 60%  • 80% of product launches are successful  (industry average is 30%)
    11. Case Study: Brewtopia – New Marketing BlowFly Beer Situation: • Emerging company without capital Solution • Liam Mulhall invited 140 friends to contribute ideas for their  ideal beer  Results • Within weeks, there were more than 10,000 participants • The Community drove:  • Beer style (lager) & Color (pale amber) • Alcohol content (4.5%) • Shape of the bottle, and label colors Shape of the bottle, and label colors • Direct shipments; customers can define their own label • 4 years later – 50,000 customers worldwide • Wine, bottled water, soft drinks on the way…
    12. Alex Tapscott’s Wikinomicists Community Web 2.0 The  Net Generation The Social  Revolution The Economic  Revolution
    13. Harnessing Mass Collaboration 3. Prosumers
    14. Market Pricing for Online Communities Item Description Cost Community Setup Community Setup • Strategy $25,000 50,000 (one  $25,000‐50,000 (one • Design time) • Setup Community  C i •HHosted SaaS solution dS S l i $15 000 25 000 $15,000 ‐25,000  Hosting & Services • Ongoing moderation (month) • Content/Programming • Best practices • Business Intelligence Total Costs Total Costs $205,000‐350,000  $205 000 350 000 (annual)
    15. Demonstrated ROI Potential Annual Benefits Business Function Description Conservative Expected Optimistic Marketing g • Increase revenue from existing customers $0.75M $0.94M $1.12M • Reduce cost of lead generation by allowing  prospects to self qualify within the community • Reduce time to “qualified lead” by getting prospects  to get learn about your products quicker Support Reduce cost of support by allowing customers to  • Reduce cost of support by allowing customers to $.67M $ 67M $1 1M $1.1M $1 6M $1.6M help each other • Reduce cost of documentation and help with  customer created wikis • Reduce time to customer satisfaction by providing  access to experts quicker than traditional access to experts quicker than traditional  “escalation policy” Innovation • Increase revenue – customer create product  $0.63M $.69M $.75M extensions to new segments • Reduce cost of integration – customers create  adapters for native products d f d • Increase testing coverage into new and  unsupported environments $2.2M $2.96M $3.77M Courtesy Mukund Mohan, Best Engaging Communities
    16. How to Get Started: 5 Simple Steps 1. Pick a process 2. 2 Identify a crowd Identify a crowd 3. Give them the required tools and support 4. 4 Accept their wisdom A t th i i d 5. Measure their performance (and YOURS) as  community contributors community contributors
    17. Q&A with Barry and Don 17
    18. Resources We Are Smarter Than Me (the book) wearesmarter.org Wikinomics (the book) wikinomics.com Web Strategist blog: web‐strategist.com/blog Mzinga.com Del.icio.us [search for “mzinga”] Top Marketing Blogs: adage.com/power150 18
    19. Ongoing Monthly Webinar Series Featured Speakers Practical Advice Practical Advice Case Studies Steps for Success St f S

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    The business case for online communities
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