Web 2.0 and the Rise of Social Marketing
Karen Orton
VP, Enterprise Solutions

Agenda
Web 2.0 and Social Driven Marketing
What is social?
Who are these people and what’s their
motivation?
How it is changing the rules?
The New Center of the Universe – your customer
Business results?
Tools and techniques
Examples
How to get started

Lithium Technologies

Some of Lithium’s customers
4

Birth of Web 2.0
• Cultural shift from passive Web surfers to active
content creators who want to share
• Surf (mid‐90s)
• Search (2000 ‐ 2005)
• Subscribe/Publish (2006 on)
• Shift from push marketing to mix of push/pull
• Increased number and two‐way customer dialogues
• Easy, inexpensive technology to create/distribute
content
• Google, Microsoft, Yahoo promoted use of Web 2.0

Trust Weighted Towards Peers Online & Offline.
6

Rise of Social Computing
Source: Forrester Research

Online Word-of-Mouth – Most Powerful
• 113 million Americans research products
online
• Word‐of‐mouth valued as best source of
information
• 93% vs. 67% in 1977
• Twice the value of advertising and editorial
content
• Why it’s powerful
• Too much information, too many
products
• Global impact
• Link sharing and search results extend
the power even more
• Source: RoperASW

What are they doing? Use of Web 2.0 Tools
Source: Forrester North American Social Technographics Online Survey, July 2007

Do they behave the same? Types of Users
Source: Forrester Research

What can it mean to you?
•Lower cost to market and sell
• Use customers to market and sell
• Encourage self‐service or peer‐to‐peer inquiries
• Get more sales from each visit and more visits
• Ensure that every page cross‐sells or up‐sells
• Solicit consumer‐generated content
•Increase brand loyalty
• Provide a personalized experience
• Lower churn; increase lifetime value of customer
• Increase sales from loyal customers
• Increase customer satisfaction
• Communicate regularly and get feedback
• Respect customers’ TIME – they can shop 24x7

Questions to Consider – “think before starting”
Who are we selling to?
1)
2) What are the best ways to reach our target audience?
3) How do consumers want to interact with our brands?
4) Does our target audience demand consumer‐led
marketing?
5) How can we break through the clutter?
6) How do we get consumers to talk about our products?
7) Does our target audience demand consumer‐controlled
media?
8) Is our target audience social networking driven?
9) Does our target audience demand consumer‐generated
content?
10) What are the global implications?

Engaging + Distributed by the Audience = Viral

Blogging – Direct Communication

Linkedin – Networking/Connecting
Chuck Hester. A veteran of technology public relations going back to the days of print, Hester has become a
disciple of the business networking service LinkedIn.
He uses LinkedIn to organize meetings and group dinners during his frequent travels and to maintain a list of
hundreds of business contacts.
When he wants to meet someone, he often starts with LinkedIn Answers or a query to his network. The strategy
has drawn media attention and made Hester a master connector in tech media.
And that’s paying off for his employer, e-mail service firm iContact.

Facebook

Micro-blogging – Twitter

Customer Communities – Build your own?
Social networking tool to provide customers with company and
customer‐generated information
Benefits:
Increases customer interaction touch points
Builds brand loyalty and trust
Increases customer value/lowers churn rate
Increases frequency and length of visits
Demand generation (WOM)
Market research and product feedback
Increases conversion rates
Reduces pre‐sales costs and sales cycle
Built with multiple technologies (forums, blogs, chat)
Customers of communities generate two‐thirds of sales but account
for only one‐third of visitors
(Source: 2001 McKinsey‐Jupiter Media Metrix Study)

Engage & Measure: Different Views
Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007)
Matthew Lees, Patricia Seybold Group
19

Engage & Measure: Different Views
Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007)
Matthew Lees, Patricia Seybold Group
20

A word about Reputation and Super Users
Support and
Product teams Marketing
Service
Tribal Knowledge Base
Customer
Heroes

myFICO

Symantec

Sage Software
Community launched in January 2008 ‐ the results:
15 point increase in Customer Loyalty (as measured by SatMetrix Net Promoter score)
Over 6.2 million page views, 90,000 forum logins in 7 months
Customers listened to each other, and provided answers to questions that are simply best
answered by one another
Many organizational and procedural changes have been made
Changed Contact Us page making it easier to find people & escalate issues.
Re‐routed general query calls from sales to customer service
300% more feedback than ever before during Beta phase of product release

Future Shop
Future Shop uses the REST API and created “Aaron” the video avatar that allows
customers to ask questions of the community from the home page.
Searches are performed against the community and two other knowledge bases

Communities for WOM and Demand Generation

Idea Generation

Community Benefits
Key findings include:
• 76% felt more positively about the company since
joining its community
• 52% were more inclined to purchase the company's
products
• 82% were more likely to recommend the company's
products
• 75% felt more respect for the company
• 63% trusted the company more
(Source: 2006 Communispace)

Integrating the Web 2.0 Marketing Mix
Web 1.0 Marketing Mix Web 2.0 Marketing Mix
Public relations/Investor Word-of-mouth/viral marketing
relations Social networking
Advertising New Media advertising (Internet
Direct marketing radio & TV, mobile)
Trade shows/events Subscriptions/RSS/Tags/Alerts
Sales promotions Podcasting/Videocasting
Wikis
Collateral/sales tools
Self-service search/FAQs
Inquiry handling/fulfillment
Communities/Forums
Web site/Customer portals
Blogs
SEO/web optimization
Wikis
Online advertising
Twitter/Chat/IM
Email marketing
Widgets
Webinars/webcasts

Web 2.0 Brand Identity
•Consumer‐generated
•More word‐of‐mouth channels Communities
Forums
Our
Blogs YouTube
Twitter
Brand
•Customer satisfaction is more
Product
critical than ever
Reviews

Benefits of a Social Media Strategy
Gain insight into the customer
1.
Increase user engagement
2.
Lead generation tools
3.
Build brand visibility and loyalty
4.
Promote products and services
5.
Influence communities
6.
Increase Web site traffic
7.
Reduce service costs
8.
Better for target marketing.
9.
Innovate quicker, cheaper, and better
10.
Source: Forrester Research

“Right now, your customers are writing about your products on
blogs and recutting your commercials on YouTube. They’re
defining you on Wikipedia and ganging up on you in social
networking sites like Facebook. These are all elements of a social
phenomenon — the groundswell — that has created a
permanent, long‐lasting shift in the way the world works. Most
companies see it as a threat.”
TIME TO JOIN THE GROUNDSWELL

Resources
Groundswell – By Charlene Li and
Josh Bernoff
WOMMA – word of mouth marketing association
Jeremiah Owyang, Forrester, blog “Web Strategy”
Suzette Cavanaugh: Marketing consultant in enterprise
social media
Teaches Web 2.0 Marketing at UCSC Extension
Email: suzettecavanaugh@yahoo.com
Blog: http://neomarketeer.blogspot.com/

Enjoy the Journey!
Thank you
Karen Orton
Karen.Orton@lithium.com
415 309 4987

Social Networking

Lack of Trust in Traditional Media/Communication
36

Increased Purchasing
Source: Big Online Spenders Embrace Social Technologies (February 15, 2008)
Josh Bernoff, Forrester Research
37

Viral Marketing
Uses pre‐existing social networks to produce increases in brand
awareness or to achieve other objectives through self‐
replicating viral processes
Facilitates and encourages people to pass along a marketing
message voluntarily
It is claimed that a customer tells an average of three people
about a product or service he/she likes, and eleven people
about a product or service which he/she did not like
Successful viral marketing programs identify individuals with
high Social Networking Potential (SNP) and create Viral
Messages that appeal to this segment of the population and
have a high probability of being passed along.

Impact on Marketing
Printed brochures Web brochures Online FAQ/chat
Print ads Banner ads SEO RSS Feeds
Direct mail Email Subscription
Focus groups Web research Blogs
Press release Web conference Online Word‐of‐Mouth

Business benefits
Source: Social Computing (February 13, 2006)
Charlene Li, Chris Charron, Forrester Research
40

Encouraging Evangelists [a.k.a. Fansumers]
Already love your brand
Persuade them to talk about your
product/service to their network
They don’t need to be rewarded
They already do it
It makes them feel important
They want to look good
They don’t want to provide bad
information to friends/family
Important to be upfront if you post on a
message board

Blogs as a Marketing Tool
Promote thought leadership
Identify, engage, reward high value customers
Solicit user‐generated content
Build traffic and time on site for more sales
Customers feel like insiders; builds community
Company speaks with an individual(s) voice
Comment on news, push information out quickly,
introduce topics
Key tactic to efficiently reach most devoted customers
and enthusiast market

Twitter – How to Apply to Business
Micro blogging – means of staying in touch with friends and
family
Place for breaking news
Set up discussion channel with peers and eco‐system
Increase non‐paid traffic to website
Implementation:
Keywords
Employees
Following others

Social Networking
What is it?
• Tools for maintaining relationships
• Social, professional/business, special interest, brand networks
• Generally more consumer, but B2B starting to use
Types
• Social networks: Facebook.com, MySpace.com
• Special interest networks: Classmates Online, Xanga (blog‐based
community)
• Brand specific networks: customer communities built around a
product or service
• Professional/business networks: LinkedIn, Spoke Software,
Jigsaw, Plaxo
• Non‐profit: American Cancer Society’s Futuring and Innovation
Center

Social Networking
How to leverage for sales and marketing:
• Communications – primarily user communities to solve problems, share best
practices
• Tools available to track customer satisfaction
• Difficult to use networks effectively for viral or word‐of‐mouth promotions
but can’t be commercial – there must be credibility
• Reputation, market awareness, brand loyalty
• Demand generation: Sales uses business sites (LinkedIn) to search for
people/titles you want to market/sell to; search for connections inside
targeted companies; research industries.
• NBC used MySpace to show clips of “The Office” to build buzz and get
reaction before it went on air.
What to watch out for?
Problems with privacy and safety

What about Community Engagement?