KTG w/ Sean McDonald 3.9.10- "Social Media--Is it Good for Business?"


Published on

Social Media is a phenomenon that has been talked about, debated, and complicated for variety of reasons. Business has either watched or jumped into the social game. Listen to Sean McDonald share his experience from the March 9 Knowledge To Go webinar. He will also share observations of how social media transforms business (yes, small business too).

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • 1995 – big news was the browser and content providers like Yahoo. Users pulled info from the web 2000- after the dot.com bubble, the internet was resigned to be online commerce and advertising mediums – sure ways to make money off the web 2010 – everyone has access, not just from PCs, it is my internet – a place for me to share info, connect and communicate with the world – a big Party The mistake is consistent, everyone is focusing on the big thing, not the billions of little things. Reason why You Tube is second largest search engine? It is about me and things I want. The tag line is “broadcast yourself”
  • Previously media was controlled by creative agencies and publishing companies. Barrier was high cost of capital and limited channels Now, anyone, anywhere can create content and publish it within minutes. Low cost of capital, billions of channels.
  • Customers, Employees, Investors Volume Trust Influence Searchable
  • And 50,000 people get online for the first time everyday
  • 1 st Impressions - YouTube Is 2 nd largest search engine Customers – 3 out of 4 look to each other for purchase advice Conversations – are the driver of SOV, influence and recommendations 200 million blogs Humans adopting new ways to communicate, open to sharing. Looking to learn.
  • Content created by anyone, anywhere in variety of mediums Shareable Entertaining, Educational, Noise
  • 3000 ads daily Emails, texts, tweets, bump the number to over 5000 messages per day
  • When I say humans, I mean Customers, Employees, Investors Relationships are built on trust and personal connections Relationships count more to influence
  • Transactions can be counted, they turn into revenue, have associated expense. We like them. Relationships are not just a volume game, but a quality and longevitiy measurement. Don’t work well with Excel. But if you look hard, relationships do show up on the P&L. Relationships drive revenue and expenses, just not always in the short term, but make/break you in the long term Are you a company that looks at customers as an expense? Where is the Relationship department in your company? Who is in charg
  • When I say humans, I mean Customers, Employees, Investors Relationships are built on trust and personal connections Relationships count more to influence
  • Dell social media was born out of a crisis. MSD wanted results, did not give exact direction or how to operate. We did not have an airtight view of what would occur and how we would operate. We acted, learned, evolved. Explain the 3 bubbles were not departments, but skill sets. You can take skill sets and organize best way to serve customers. 2005: Only paid attention to “credible” media (NYT, Forbes, WSJ) Could not prove the ROI Rationalized: It is just a few customers. Ignore it, it will go away. Learnings Social Media exposed broken Brand Promise Address dissatisfaction head on Successful outreach does not require 100% coverage Don’t be afraid to apologize Outreach demonstrates Brand Promise
  • Restaurants, spas, apparel, travel, financial services, insurance, legal offices: All have opportunity to establish and improve relationships with customers. Social media is a public demonstration of your business relationships. Participation gives your business a channel to reach customers re: customer service, product feedback, partnerships, recruiting talent, brand perceptions, adv relevance.
  • Threadless is a community-centered online apparel store run by skinnyCorp of Chicago, Illinois, since 2000. Co-founders Jake Nickell and Jacob DeHart started the company with $1,000 in seed money after entering an Internet t-shirt design contest. [1][2] Members of the Threadless community submit t-shirt designs online; the designs are then put to a public vote. A small percentage of submitted designs are selected for printing and sold through an online store. Creators of the winning designs receive a prize of cash and store credit. Designers upload their t-shirt designs to the website, where visitors and members of the community score them on a scale of 0 to 5. On average, around 1,500 designs compete in any given week. Each week, the staff selects about ten designs. [3] Each designer selected receives $2,000 in cash, a $500 gift certificate (which they may trade in for $200 in cash), as well as an additional $500 for every reprint. [
  • Business customers give feedback on what they like and don’t like. Suggestions include: Only suggestion is maybe clarify that duty is added at time of delivery for international orders, shipping seemed a little expensive .
  • The traditional marketing mediums are one way channels. Web 2.0 opens up ability to have conversations and do it cheaply.
  • KTG w/ Sean McDonald 3.9.10- "Social Media--Is it Good for Business?"

    1. 1. McCombs Knowledge To Go March 9, 2010
    2. 2. Social Media…Good for Business? Sean McDonald BBA ‘86, MBA ’95 [email_address] @iamseanmcdonald
    3. 3. Thesis 1: This is not Al Gore’s Internet
    4. 4. The Web has gone Social 1995 Today
    5. 5. <ul><li>People want to connect and create </li></ul><ul><li>Technology is the global enabler of scale </li></ul><ul><li>Economics have changed the funnel, its about influencers </li></ul>Social Web 101 1 person writes a blog post or tweets 9 people read/comment or link back to other sites 90 people read from multiple sources across the web New Customer Funnel Adapted from Forrester Groundswell 1:9:90 model Three Forces have Aligned
    6. 6. Thesis 2: Humans have changed faster than Business
    7. 8. It is a Global thing <ul><li>20% of China population is online, 2 years ago 10% </li></ul><ul><li>I have a Voice: Universal appeal is ability to learn, share, explore beyond my local network </li></ul><ul><li>Customers not waiting for products to reach them, instead search/find and make decisions </li></ul>(source: Internet World Stats)
    8. 9. Thesis 3: Your company’s message is noise
    9. 10. Less people are listening to your messages 65% of all marketing spend in 2007 had NO EFFECT on consumers Source: Fournaise Marketing Group’s 2007 Global Marketing Effectiveness Report
    10. 11. Trust in companies is at an all-time low Edelman Trust Barometer 2009
    11. 12. Too many messages
    12. 13. Thesis 4: Humans value Relationships; Businesses value Transactions
    13. 14. We measure what we value
    14. 15. Thesis 5: Social is not just for Marketing
    15. 16. Social touches every department (almost) R&D Marketing Sales Customer support Operations Department Objectives Strategies Metrics Stewardship: Collaboration & Orchestration Listening : Gathering customer insights as input for innovation <ul><li>Brand monitoring </li></ul><ul><li>Research communities </li></ul><ul><li>Innovation communities </li></ul><ul><li>Competitive listening </li></ul><ul><li>Insights gained </li></ul><ul><li>Usable product ideas </li></ul><ul><li>Faster development speed </li></ul>Talking : Using conversations with customers to promote products <ul><li>Communities & social networks </li></ul><ul><li>Video & Blogs </li></ul><ul><li>Influencer recognition </li></ul><ul><li>Better market awareness </li></ul><ul><li>Word of mouth </li></ul><ul><li>Increased sales, revenue </li></ul><ul><li>Reach and efficiency </li></ul>Energizing : Identifying passionate customers and bringing them closer to the sales process <ul><li>Social networking sites </li></ul><ul><li>Evangelism programs </li></ul><ul><li>Communities </li></ul><ul><li>Community membership </li></ul><ul><li>Word of mouth </li></ul><ul><li>Increased sales, revenue </li></ul>Supporting : Enabling customers to answer or solve one another’s questions or problems <ul><li>Support forums </li></ul><ul><li>Communities </li></ul><ul><li>Third-party outreach </li></ul><ul><li>Influencer recognition </li></ul><ul><li>Number of participants </li></ul><ul><li>Volume of questions answered, self service </li></ul><ul><li>Decreased volume of support calls, costs </li></ul>Managing : Providing employees with tools, access to collaborate with each other and customers, partners <ul><li>Social networks (internal/external) </li></ul><ul><li>Communities </li></ul><ul><li>Guidelines & playbooks </li></ul><ul><li>Number of participants </li></ul><ul><li>Increased operational efficiency </li></ul><ul><li>Decreased email volumes </li></ul>
    16. 17. What can a company do? <ul><ul><li>Collaborate with Stakeholders </li></ul></ul>
    17. 18. Dell case study Dell didn’t know how to react; so we did nothing 2005 Jeff Jarvis & “Dell Hell” Customer Satisfaction: 56% to 74% Negative Brand Sentiment: 49% to 22% Results 2007 Customer Satisfaction and Brand Sentiment in negative territory 2006 Dell Finally Takes Action Customer Svc PR Marketing
    18. 19. What about small business?
    19. 20. threadless
    20. 25. B2B
    21. 26. 6 social principles <ul><li>Social Media is a means to an end, not a solution </li></ul><ul><li>The act of being “social” requires you to give first and expect nothing in return, this rubs some of us the wrong way </li></ul><ul><li>Human beings still value relationships, Social Media can put relationships on a steroids program </li></ul><ul><li>Technology is an enabler, not the solution or substitute for relationships </li></ul><ul><li>Marketing has always been about conversations, the mediums did not always support it </li></ul><ul><li>Change Management is necessary to operate social media alongside rest of the enterprise, not to replace it </li></ul>
    22. 27. Parting thoughts <ul><ul><li>Human Beings talk with each other – a conversation </li></ul></ul><ul><ul><li>Traditional business communications are a one way communication – easy to ignore </li></ul></ul><ul><ul><li>Social Web opens up ability to have conversations – to participate, and to be relevant </li></ul></ul>© Hugh McLeod
    23. 28. Social Media…Good for Business? Sean McDonald BBA ‘86, MBA ’95 [email_address] @iamseanmcdonald
    24. 29. Please Give Back to McCombs! <ul><li>This webinar has been brought to you by the </li></ul><ul><li>McCombs MBA Alumni Advisory Board, coordinated by </li></ul><ul><li>alumni for the benefit of the Alumni Network. </li></ul><ul><li>Please get involved with the Alumni Network! </li></ul><ul><li>All alumni benefit when we work together to build the quality </li></ul><ul><li>and value of the Alumni Network and the McCombs brand. </li></ul><ul><li>Time: Get involved in your local club </li></ul><ul><li>Talent: Mentor another alumni or speak at a future webinar </li></ul><ul><li>Treasure: Make a donation to McCombs </li></ul><ul><li>www.mccombs.utexas.edu/alumni </li></ul><ul><li>Suggested fund: MBA Alumni Excellence Fund </li></ul><ul><li>Please use response code KTG </li></ul><ul><li>Send me your feedback -- [email_address] </li></ul>