Royal Australian Chemical Institute
Social Media in Business
1 Why this Social Media addiction - an Australian perspective?
2 Consequences of this Social Media wave for enterprise and executives
3 A strategic view of Social Media within and outside the enterprise
4 Review of Social Media use cases that deliver ROI
Why this Social Media addiction - an
Your, my, our desire…
• to be taken seriously.
• to find my place in the world.
• to have something to believe in.
• to connect with each other.
• to be useful.
• to belong.
• for more.
• for control.
• for something to happen.
• for love and to be loved.
Maslow’s Hierarchy of
Consequences of this Social Media wave
for enterprise and executives
E LIVE IN A MULTI-SCREEN
TTENTION DEFICIT DISORDER
OMMUNICATION HAS NO
VERYONE HAS A VOICE, INFLUENTIAL
B RANDS NEED TO START THINKING
LIKE MEDIA COMPANIES
THE BRIGHT & SHINY “THING” CALLED ….
E XECUTIVE DILEMMA
Social Media “Marketing” Has Caused
Internal Business Challenges
Inappropriate use of social media Social media programs globally
Confusion of roles & responsibilities Governance models & Policies
Social media measurement practices Content & Community Practices
Crisis communications models Selection and adoption within the org
A strategic view of Social Media within and
outside the enterprise
ORE BUSINESS REMAINS THE SAME
81% of consumers using social media say it's important for
businesses to respond to questions and complaints and within
a reasonable amount of time.
• Most social customers don’t think of themselves as social customers
• Their behavior is dynamic
• Conversations sprout everywhere – Twitter, Instagram, Pinterest, Facebook
• Social Customers are influential regardless of how many friends, fans and
followers they have
Stakeholder Ecosystem Value Creation Model
COLLABORATION COMMUNITY ENGAGEMENT
3 KNOWLEDGE SHARING 2 CUSTOMER/SALES SUPPORT
SOCIAL ENABLEMENT CUSTOMER SATISFACTION
INTERNAL THE SOCIAL BUSINESS EXTERNAL
(employees) (customer, partners, media)
4 IMPROVEMENT 1 CUSTOMER ADVOCACY
PRODUCT INNOVATION PRODUCT FEEDBACK
Social Brand Vs. Social Business
SOCIAL BRAND SOCIAL
Research & Development
Policies & Guidelines
Source: David Armarno
So then what is a Social Business?
• focuses on internal communications - so that the organisation is in step with it
customers, markets, shareholders and so on.
• is all about engagement with employees - so that employees are better
connected with their customers.
• should be owned by the entire organisation - collaboration leads to better and
more inclusive decision making
• is measured by organisational change - and how processes such as
marketing campaign launches are better thought out.
• Most investments in social business initiatives revolve around internal
communities, social technologies, and training.
• ...and most importantly the change, measurement, culture and focus of the
Social Business objectives are owned by the executive management within
Review of Social Media use cases that
Social Business Affects More Than
Deeper levels of engagement with the social customer through
COMMUNICATIONS consistent and relevant content; ability to scale operations
CUSTOMER SERVICE The ability to solve customer problems quickly and efficiently.
Increased collaboration between sales professionals in the
SALES industry; robust social CRM platform and analytics
PRODUCT DEVELOPMENT Product and process innovation using the collective intellect of the
HUMAN RESOURCES Staffing & recruiting, employee engagement and empowerment
Bring products to market faster through increased collaboration
SUPPLY CHAIN with partners in the supply chain
Executive and Organisational
• Social is about engagement and relationships
• Fit social into your business - not the other way around
• Social is not a Silo
• Social involves your entire Organisation
• Engagement cannot be Outsourced
• Success requires Engagement without Fear
• Social is based on Sharing
• Social is Not Ad Hoc
• Fish where the fish are
• Social is Measurable
YOU MUST BE PREPARED TO TRANSFORM YOUR BUSINESS AT THE SPEED OF
Social Business requires a New Leadership
Social Media and channels like Twitter and Facebook is just “a thing”; the real change
comes from within us (the think > do > get paradigm) and starts with:
• A shift from “I” to “we”
• A shift from “what’s in it for me” to “what’s best for the common good”
• A shift from being the “best in the world” to the “best for the world”
Take control. Succeed. Lead.
It’s time to ask more of your Social Media.
• Is your Social strategy actively increasing the value of your business?
• Is it measureable? Predictable? Responsive?
• Do you know exactly what’s working, and what isn’t?
• Do you have a clear view of who’s talking about your business, and what’s being said?
• Do you have an accurate, comprehensive and up-to-the-minute view of what your
competitors are up to?
The route to successful social enterprise
EVALUATE ESTABLISH EXECUTE
A STRATEGY & TEAM OPERATIONALISE THE SOCIAL BUSINESS CENTER OF EXCELLENCE
• Conversation and sentiment • Define strategy (goals, LISTEN PLAN ENGAGE
analysis actions, KPIs)
• Identify listening and CRM • Create plan for employee and • Launch programs, events
• Surveys, polls and • Identify the right teams, software partner training and campaigns
stakeholder interviews stakeholders and emp
• Establish a social media • Process and collaboration • Manage internal collaboration
• Data mining from social • Establish roles & listening center design and communication projects
• Determine internal & external • Crisis coms and customers • Expand teams and channels
• Intelligence gathering Market & • Achieve buy-in from senior topics support escalation tree globally
• Social Architecture Review • Establish Social Architecture
• Identify Business Use Cases & a measurement framework
Hugh Mackay – in his book “What makes us tick?”The desire to be taken seriously – this is the big one. To be taken seriously in life, in love, at work. Not to be serious, just to be seen as having a valid position, worthy of consideration. Hell, even if people oppose your position, that’s validation. ‘Persecution reinforces ethnic identity.’The desire for ‘my place’ – more than just a physical place but a sense of belonging, having a connection to a tribe. At its extreme, territorialism.The desire for something to believe in – with only 15% of Australians attending Church, you might question our desire for belief but this one includes a broad and colourful spectrum. Take astrology, conspiracy theories, superstition, eastern mythology, western medicine, placebo effects…the list goes on.The desire to connect – with others and with ourselves. The burst of social connectedness in the online world illustrates our need (sometimes desperate) to connect.( This is where the term KINSHIP came about).The desire to be useful – redundancy is not a word you want to hear. We tell our graduates ‘make yourselves indispensible’ – it’s about being useful to someone, somehow and reinforcing this. Becoming useless or being perceived to lack utility destroys connection, thwarts our self belief, damages our sense of belonging and renders us invalid. Pretty nasty stuff, no wonder it’s in our top ten desires.The desire to belong – connected to our identity. Sometimes we want to belong, sometimes we don’t…or do we just want to belong to the non-belongers?The desire for more – inescapable in our consumer driven society. More messages, more growth, more choices, more money, more life.The desire for control – control freak or not, we all want it at some point. Whether you seek it passively or aggressively, control gives us purpose and power. A loss of control often manifests itself in a fear…of flying, heights, enclosed spaces…public speaking….The desire for something to happen – life is pinpointed by things that happen, without them, life just well…goes on…Without a little bit of drama to relay, small talk becomes well…a little bit boring. Hugh gives a an example that if we’re honest, we’ve all used at some point “We like to make it sound as if something worth recounting has happened to us – even if something almost happened …’A woman in our office would have been on that plane that crashed if she’d gone on Thursday instead of Tuesday.’The desire for love. ‘nuff said.
If this is what’s happening in our world, and these are the desires we have as human beings, what are the consequences of this social behaviour of people in our society on us as executives, and our enterprises, or businesses?
Google unveils that 90% of people move between devices to accomplish a goal, whether on smartphones, PCs, tablets or TV. Searching for products, doing your banking, I have to admit, that this presentation was prepared by my colleague, Mike Green. I haven’t seen this being presented, and what I received from Mike was this slide deck, No notes. I had a few options in front of me, considering how to prepare for this presentation – I could have asked for Mike’s notes.I could have made my own.Any other ideas?What I actually did, is pull Mike into the board room, closed the door, and made him present it to me. I recorded his presentation on my phone, in full HD.How can you, as a brand, compete or prepare for that?How does this trend effect you as an organization? BYO Device policy? There has to be an IT infrastructure to support it. I had a chat this week with a friend from one of the largest supply chain supplier in the country (if not the biggest). They have faced an issue of communicating with their people, spread across 12,000 locations around Australia. How can you deal with that? You need to consider some form of centralised Mobile Communication strategy.
How do you crack through this – these are not only our children. These are our employees, suppliers, clients. A friend of mine is a marketing lecturer. She told me about a very frustrating incident she had recently, where she gave an assignmnet to be completed in class, which required group discussion. The class was as quiet as if they where no one there. No commotion as you would expect from a few dozens of students in a group discussion. She approached one of the students and screamed at her, that she’s suppose to work with her group, which is right behind her. The petrified student showed my friend an entire conversation they were having on Skype, sitting in a similar setting as you can see here..
Take our organization for example. Our business was only founded 3 years ago, with our first client was in Italy. Our second one was in Canada. Communication today goes beyond borders, and have no boundaries. We offer services that can be deployed anywhere, anytime (as long as you have internet connection). The Arab spring, the revolution in Egypt, the Israelis love Iranians facebook campaign (TED.com) http://www.ted.com/talks/israel_and_iran_a_love_story.html and other social media causes (like the Kony campaign all started as a local effort, which quickly gone beyond borders, physical and mental…http://www.digitaltrends.com/social-media/study-confirms-social-medias-revolutionary-role-in-arab-spring/ Researchers at the University of Washington sifted through more than 3 million tweets, countless hours of YouTube videos and gigabytes of blogs to find out whether the Internet, and social media services like Twitter and Facebook really played the revolutionary role many claimed they did. According to the study, online chatter about revolution often began just before actual revolutions took place. And social media also served as an outlet for citizens of the region to tell their stories of revolution, which played an inspirational role for neighboring countries, the study found.In Egypt, where the Arab Spring blossomed, Howard and his team found that the number of tweets that mentioned revolution in that country exploded from 2,300 per day to more than 230,000 per day. The number of videos, Facebook updates and blog posts about government opposition also rose dramatically.
We all have the opportunity to have a voice. To publish our knowledge, our opinions, our thoughts…Every 2 days we create as much information as we did from the dawn of civilization until 2003 (5 exabytes of data)Exabyte: 1 EB = 1000000000000000000B = 1018 bytes = 1000000000 gigabytes = 1000000terabytesFacebook has about 1000 IT people top to bottom, maintaining 100% availability, continuous upgrades, and supporting over 1 billion users. Westpac, as reported recently, has 3,000 IT staff in Australia and 3,000 offshore
McKinsey >Things like improved communication and collaboration from social media in four major business sectors could add $900 billion to $1.3 trillionA new report from McKinsey Global Institute, shows, According to an analysis of 4,200 companies by the business consulting giant, social technologies stand to unlock from $900 billion to $1.3 trillion in value. At the high end, that approaches Australia’s annual GDP. How’s that for a bottom line?Savings comes from some unexpected places. Two-thirds of the value unlocked by social media rests in “improved communications and collaboration within and across enterprises,” according to the report. Far from a distraction, in other words, social media proves a surprising boom to productivity.Companies are embracing social tools--including internal networks, wikis, and real-time chat--for functions that go way beyond marketing and community building. R&D teams brainstorm products, HR vets applicants, sales fosters leads, and operations and distribution forecasts and monitors supply chains.
If you look at social media – it’s just a thing. It’s shiny, relatively new, but its not good or bad – it’s just a thing. It’s not just what it is that’s important, it’s how you use it, harness it’s powers, learn its’ implications, that will effect your organization. It’s like the a fax machine, or the internet, or email. It’s a new THING. But as oppose to the fax, or the internet, this THING talks back to you, and this time you HAVE TO listen.
You and I as executives have got a dilema here. It’s not only a technology, but a cultural change. What we’re currently seeing in organization, is a great confusion about the place of social media within the organization. There’s a great debate and discussion about who “OWNS” social media. Probably due to the word media in Social Media, it originally fell with the marketing department. Either with PR, Comms, or another part of the marketing division. What we find in working with organizations on a large scale, is the impact of social media ACROSS the ENTIRE organization, certainly outside of the marketing function. The more organizations get into the real impact of Social Media on their day to day lives, the more that OWNERSHIP question hangs over everyone…
Organization are dabbling with social media, but aren’t geared to respond at the speed which is required. soon enough organizations relise the impact Social media have on their employees, their customers and their ecosystem, and discover what we see here:Most of us heard about some of the social media marketing disasters, where some marketing campaigns which weren’t thought through backfired – Qantas luxury pyjamas campaign (at the same time when Qantas was under scrutiny for grounding their entire Fleet). Or the ongoing negative sentiment around Vodafone about their service. One day that sentiment peaked when a Vodafone Social Media Expert (a store employee with glorified online persona) badmouthed customers in the store on Twitter.Due to the fast pace of the medium, stories like that can spread like wild fire. There was a case with United Airlines, publicised heavily in 2009, when a musician noticed the baggage handlers throwing his guitar around. As he feared, he noticed his $5000 Taylors Guitar was broken when he picked it up off the conveyer belt. Failing to get compensation from the airline, he wrote and posted a song about his incident on YouTube. Within the first day he had over 150,000 views, and the comments and negative sentiment in the following months caused the company’s stock price to dive 10%!This tells us, that we, as executives can ignore social media at our own peril. The beast is out of the cage. People are talking about us, our brand, our customers opening and sometime critically. We can choose to listen, or participate, or ignore. That’s our choice.Furthermore, we discover inefficiencies in our own procedures, we find outdated Crisis Communications models. We used to be able to respond to a crises within 48 hours, and put the fire out. Now we have 48 minutes, if that.I’ve touched briefly on BYO Device policy, and the implication on the company’s IT infrastructure, security, platform and software selection criteria etc… The more CTOs and CIOs understand the complexity, but also the opportunity Social Media brings to the organization, the better.Very few people understand the full magnitude and impact of the lack of social media governance in our organizations. There’s confusion as we’ve discussed before about ownership, which results in underperforming teams, missed opportunities at best, but putting the organization at real risk at the worst.I can go on and on about the internal challenges, but I think you get the idea..
Our duty is now, to have a strategic view of our organization, and understand how Social Media affects us. From within and outside the enterprise.
We have to remember, that our core business remains the same!We’re not about to change our core business, but we do need to consider altering some of the ways we do business..We need to identify where social media can impact or add value to your business, and plug a social media element into those business processes. Whether it’s your PR and Comms strategies, Employee Engagement and retention strategies, IT infrastructure, Product development (crowdsourcing) or other aspects of your business..Create a clear strategy and action plan, before embarking on that shiny tactical activities.
The Challenge: Customers Want Timely RepliesIn an age of instant gratification, customers want to know you’re listening –and that you have an answer. In fact, 81% of consumers using social media say it's important for businesses to respond to questions and complaints and within a reasonable amount of time.The Solution: Respond Immediately & Take ActionCustomers and prospects want to know that you care about their needs. So it’s extremely important to check your Facebook page and Twitter mentions frequently and respond to any customer issues or pertinent questions right away. Big brands like AT&T try to keep all responses within 15 minutes, since that type of active response is highly valued by their customers.If customers have an issue that can’t be resolved within the limitations of social media, you should provide an offline channel such as an email or phone number for the customer to speak with you directly, and so you get the complete information you need to best address their complaint. Then, filter any product or service issues to the correct person(s) within your business to improve your operations and prevent future problems.The Challenge: Customer Experience Impacts PerceptionOne key part of your customer service strategy is the overall experience you provide customers both offline and offline, whether or not they have a problem or complaint. Many businesses take advantage social media to deliver a great customer experience, but it can be challenging for local businesses to build trust and engagement on social media sites. The Solution: Humanize your Social StrategyIf you have social pages on Facebook and Twitter, make sure they contain a profile pic, bio, and frequent posts that showcase your brand personality and authority in order to establish trust with online consumers. While it’s important to listen to and respond to comments and complaints, it’s equally beneficial for you to interact with your fans and followers on a regular basis and show them the human side of your business. In addition to providing interesting and informative content, you can also create a positive experience by thanking and rewarding fans and followers, participating in customer-initiated conversations, and sharing news about an event or charity you are involved in. Listening to how your customers respond to you will help you determine the best types of content and conversations that will drive the most engagement on your social media pages.
We have a two-fold view of social media impact on the organization. We’ve divided Social media impact into External impact, considering Customers, Partners, Media, and other stakeholders OUTSIDE the organization, and Internal Impact, on the organization’s employees.Four different use cases – revenue or costs related such as sales, product feedback and innovation, or less tangible like collaboration and knowledge sharing, or Employee advocacy.Many organizations start their focus on the external portion, but they are not yet geared internally to handle such fast paced involvement..The external and internal parts of Social Media effect on the corporation are interconnected, and can’t be viewed in isolation (that’s where most companies fail).
Another way of looking at this social business, is from an external point of view is around the outbound messaging and communicating with the outside world. This involves marketing campaigns, community management, event, crisis management, etc.Internally, we’re looking at training, policies and guidelines, collaboration and real cultural change within the organization.
Ultimately a social business is a Transparent business.
Communication – communicating with our communities in a cost effective way, and listening to what the community outside of ours in saying.Customer service – numerous examples of call centers being transformed to use social media listening and engagement tools to provide more efficient on demand.Sales – we’ve recently deployed a program at Rio Tinto, allowing their sales people to have deep insights into the market, clients and prospects, using social data, allowing them to engage in meaningful conversation and target their offering based on the customer needs at the time of discussion.Product development. – many companies, from CBA to Lorna Jane (apparel) using their community to get feedback and help tweak products to appeal to their customers more. Google is using their own internal resource (like many other software giants) to develop own project using company time and resources. The best products developed are being taken to the public.Human Resources – it’s a known fact that LinkedIn is doing real damage to the recruitment industry, as most professionals have their online profile and resume in the public domain, which allows many companies to save a ton of money on recruitment fees, and source their own talent.
How do I lead:But here is what I tell anyone today who says they wish to become a social business: Social is about engagement and relationships - it is not about transactions. If you don't understand this then don't start. You have to focus and care as much about the 10th customer interaction as the first. This is not to say that results and ROI aren't important - they are, but they take a while in coming. But you will never be a social business if you don't understand relationships - a two way concept - is at the heart of everything you need to do. Fit social into your business - not the other way around. The focus is to use social constructs and methods into your business processes where it makes sense. The focus is NOT to have Facebook in the enterprise. But it also means that you have to think about social beyond marketing - the entire customer journey experience is affected when you become a social business. Social is not a Silo: if you do not connect your social efforts into your entire business it will fail to deliver the desired results. It's part of a marketing mix - therefore social campaigns must include and link to websites, email, eDMs and newsletters. Your Twitter account for service must be part of a fully fledged service experience that includes any other service response mechanism. If your PR crises management plan doesn't include social then it will likely fail you in an emergency. The customer experience is not linear and traverses many channels - they don't work in silos and if you do you will fail. 'Social everywhere it makes sense' should be your mantra. Social involves your entire Organisation : this is the biggest realisation for most companies and is mandatory to becoming a social business. You must focus even more internally than externally. You can't exhibit the traits of transparency, engagement and collaboration which are central to success in social if your organisation is based on a command and control culture and set of processes. There is no Faking IT in social. And it is not only about marketing - it impacts HR, sales, marketing, service, product management, engineering and more. Engagement cannot be Outsourced : A pet peeve of mine! You can use your agency for monitoring, for creative, for campaign creation but if you use your agency to create your regular posts and to respond to engagement then you have two problems. The wrong agency (for accepting this practice) and the wrong attitude towards your customers. See point one above. I don't care about your content calendars - if you don't talk to your customers how can you hope to understand and serve them. Success requires Engagement without Fear : once you realise it's more than marketing you must be prepared to put some basic rules and processes in place and then get out of the way and let your people at it. Everyone must have the choice to participate and its amazing what they can do for your brand, reach and revenue when they are let loose. Not to mention how your employee satisfaction, productivity and talent acquisition improves. Yes, the social channels are full of trolls, sideline commentators and idiots. So is the 'real world'. Get over it and get involved. Social is based on Sharing : this means not just sharing your product brochures endlessly or repeating your marketing messages over and over and over again. This is probably the biggest mistake that many organisations make. Social does provide an opportunity to tell the human stories behind your brand. After all, your customers want to deal with people. The obsession with being 'on message' is one that hurts many brands. And the social economy is based on reciprocity - you must share content of value from sources other than yourself if you are truly going to be perceived as a source of value in the social economy. I know it's shocking but you are not the only one in the world with value to add. Social is Not Ad Hoc : whilst the social networks may seem chaotic at first and it's difficult to relate to your current processes you should approach it as you would any other other business initiative. You need to go through the process of creating your overall social business strategy based on a thorough process of research, evaluation and review. You then need to associate goals, initiatives, priorities, programs, measurements, resources and activities. Social business is not an accident waiting to happen but well thought out piece of your corporate strategy. Plan it that way. A strategy for social media is not a social business strategy. Fish where the fish are - don't try to have a presence in every social network on the planet and don't agree to a page or account for every product / department / business unit / branch / state / country / language in your business. Consider only those networks where you KNOW for a fact your customers already exist and are ACTIVE. And think carefully today about your presence needs - every page, every account has to be managed, moderated, filled with content and provide an engaging experience. If it doesn't - get rid of it. This is a key part of what we call Social Architecture. Social is Measurable : Anyone who tells you that you can't measure your social initiatives and that ROI and social don't go together needs to be escorted off your premises as soon as possible. Measurements should be at 3 levels - reach metrics such as friends, fans and followers. Engagement metrics such as comments, re-tweets, social shares, user generated posts and so on. And ROI on your social campaigns and activities. All levels of measurement are both important and possible. And here is a bonus commandment that is perhaps the most important of all: YOU MUST BE PREPARED TO TRANSFORM YOUR BUSINESS AT THE SPEED OF CHANGE Nothing stays constant very long in a social business and to be successful you must be lean, agile and willing to change.