Understanding the Social Customer

Understanding the Social Customer
Ryan Turner, Director of Social Media, West
ryan.turner@razorfish.com
@wryanturner

Questions?

Razorfish creates experiences that build business.

Banana phone slide

But is this really any different than previous technology “revolutions?”

Everything’s amazing, but nobody’s happy.

Yes, it’s a revolution. And the revolution in this case is not technological but social.

What happened?

Broadband.WSIWYG.YouTube.

Some Context: Ryan’s Ten-Cent History of the Web
Community-Focused
Broadcast
Participatory
User-Generated
Bottom-Up
HTML
High Threshold of Entry
Low Bandwidth
Text-Based
Collaboration
Corporation-Driven
Top-Down
Data-Driven
No entry
Flash intros!
Text and Images
Transaction
User-Generated
Bottom-Up
Standards-Driven
Lower Threshold of Entry
High Bandwidth
Multimedia
Interaction
1980’s-1994
1994-2005
2005-Now

Web 2.0 and social media are social phenomena above all.
Blogs Discussion Boards
Forums Chat IMVlogs
MoblogsSMS Podcasts
MicroblogsPhoto Blogs
Prediction Markets RSS
CollaborationCollective
Intelligence Communities
Wikis Recommender Systems
MashupsUser-Generated
Content
VS
Social media is made up of people, relationships among people, and things people create and share

Agenda
The Digital Customer
Influence
Brand Personality
Extend the Business
Device Proliferation

5 Ideas to consider
Letting customers do the work
Harness influencer dynamics
Make your brands more human
Create new businesses
Take digital on the road

These are difficult times

But every year we spend more time online
1999 :7 hours 2000 : 7 hours 2001 : 7 hours 2002 : 7 hours 2003 : 9 hours 2004 : 8 hours 2005 : 9 hours 2006 : 9 hours 2007 : 11 hours 2008 : 14 hours 2009 : 13 hours

And social media is exploding

“If we add up all the time people have spent playing World of Warcraft, it would total approximately 5.93 million years. That’s the same amount of time that homo sapiens has existed.”
-- Jane McGonigal, TED 2010

Because we took a wrong turn somewhere
Most products were originally sold based on a personal relationship in a high-touch environment
But busy lifestyles required efficiency and organizations needed the scale
The internet brought customership into our homes and offices
Mobile took these interactions out of home and gave us even more control over where and when we transacted

The more we invested in technology, the more distant we got from our customers

The Idea!
We spent the last 30 years using technology to separate ourselves from our customers . . .
Let’s spend the next 30 using technology to get closer to our customers.

Ironically, digital is going to play a big part in making that happen.

There are challenges.

76% of people think companies lie in ads
77%trust companies less than they did last year
38%of people believe companies will do what is right
15% of people enjoy the ads as much as the programs
2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire.
Page 25© 2009 Razorfish. All rights reserved.

1.
Has an experience you have had online ever changed your opinion (either positively or negatively) about a brand or the products and services it offers?
65.3%
Yes
34.7%
No

2.
Has that experience influenced whether or not you purchased a product or service from the brand?
97.1%
Yes
2.9%
No

3.
Have you ever made your first purchase from a brand because of a digital experience (e.g., a web site, microsite, mobile coupon, email)?
64.1%
Yes
35.9%
No

Increasingly, digital is the first—and frequently only—customer touchpoint.

Success requires personal, high-touch interactions.
And we already have examples of companies creating transformative digital experiences…

Here are just a few of them

Bottom Line: Digital Is Not Just an Ad Channel
Digital is not simply an “awareness” or CRM play, it’s a customer-creation play.
The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly.
Digital is quickly becoming the first and most important customer touchpoint. It’s transforming your customer relationships, whether you like it or not.

It’s not about understanding what you can do, it’s about knowing what you should do.

5 concepts to consider

1
DiSo enables WoM
IDEA
Let customers do the work for you

1
IDEA
“
The purpose of a business is to create a customer
”
– Peter Drucker

1
IDEA
“
The purpose of a business is to create a customer who creates customers
”

1
IDEA
Leaving your only job to be taking care of your existing customers
Trust me, that’ll be harder not easier…

1
IDEA
1 billion total media impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans

1
IDEA

2
Syndication magnifies influence
IDEA
Harness influencer dynamics.

Why does influence matter online?
72% of internet users say they are exposed to too much advertising

2
IDEA

2
IDEA
What are the implications of this?
You’ve got new marketing tactics to leverage
You can optimize your media spend even further
Your social influencers can bring in more consumers
You need new metrics for evaluating customer value

3
IDEA
Make your brands even more human

3
IDEA
Brand Voices
Singular company voice
Reflects the brand personality
Everybody follows the brand voice
Appears in all brand touch points
Usually unique to the company
Sometimes manifested in a person
Used everywhere –signage to ads
SIM Voices
Multiple, authentic individual voices
Transparent and discoverable
Engaging and conversational
Appears where conversations are
Unique to the person not the company
Manifested in a real person
Used only by real people

3
IDEA
Brand VoiceSocial Voice Social Brand

3
IDEA

3
IDEA
1.0
Strategy & Planning
Research & Development
Operations
Marketing & Sales
Corporate Communications
Human Resources
Customers
2.0
Strategy & Planning
Research & Development
Operations
Marketing & Sales
Corporate Communications
Human Resources
Customers

2.3.10
Governance Documents
Workflow, Routing, and Escalation
Social Media Governance Charter
Community Guidelines
Internal Participation Policy
Responsibility Matrix
One-Page Social Media Orientation
Performance Metrics
Online Brand Personality Brief
Brand Guidelines
More: www.socialmediagovernance.com

2.3.10
Business, Marketing. Compliance leadership
“I’ve got something to share”
Venue host
Expert Advisor
Friendly promoter
Internal and external contributors
Active & prominent Social Media participants
Compliance and Brand Authority
Social Media Governance Board:
Participant/Content Creator:
Moderator:
Curator:
Evangelist:
Key Contributors:
Social Media Leadership Team:
Approver:
There will be overlap (people will wear more than one hat). A member of the governance board could be a key contributor as a curator for a niche market. A moderator not only can, but should, be a key contributor.
ROLES AND RESPONSIBILITIES

Governance documents: responsibility matrix
2.3.10

3
IDEA
People connect with people more than brands
You need to practice permission marketing
Create personal, not personalized, experiences
Cede partial brand ownership to your customers

4
IDEA
Create new businesses out of hidden assets

4
IDEA
Over the next decade, two out of every three companies will face the challenge of their corporate lives: redefining their core business.
Buffeted by global competition and facing an uncertain future, more and more executives will realize that they must make fundamental changes in their core even as they continue delivering the goods and services that keep them in business today

4
IDEA

4
IDEA
Your business is going to radically change
You’ve got hidden assets to be leveraged
Your front-line customer interactions will matter even more
Your customers can help you navigate this world

5
IDEA
Take your digital experiences on the road

5
IDEA
Functionality
Mobility

5
IDEA

5
IDEA
Context joins content at the core of digital experiences
Social media goes mobile in a fundamental way
Real time activity will drive brand perception

5 Ideas to consider
Letting customers do the work
Harness influencer dynamics
Make your brands more human
Create new businesses
Take digital on the road

Know me. Create value.
Be relevant.
QUESTIONS…

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Understanding the Social Customer

by Ryan Turner

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