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The Socially Powered Enterprise (for #SM201)

SEATTLE, WASHINGTON, USA - April 15, 2010 - Presentation for the Microsoft Social Media 201 Conference (#SM201) held in Redmond, WA. Audio track to follow within a week.

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THE SOCIALLY POWERED ENTERPRISE,[object Object],ERIC WEAVER, TRIBAL DDB CANADA			,[object Object],PHOTO: ALASTAIR MCMILLAN,[object Object]
2,[object Object],YOUR SOPHOMORE YEAR,[object Object],The “speech bubbles” shown here on Slideshare have been added to bring clarity.,[object Object]
3,[object Object],?,[object Object],SO YOU’RE ON LINKEDIN.,[object Object],YOU’VE GOT “A TWITTER.”,[object Object],YOU’VE GOT “A FACEBOOK.”,[object Object],NOW WHAT?,[object Object]
WE ARE IN THE MIDST OF A PROFOUND CULTURALSHIFT,[object Object],4,[object Object]
5,[object Object],NUMBER OF PEOPLE JOINING LINKEDIN DAILY,[object Object],67,000+,[object Object]
PEOPLE ON FACEBOOK,[object Object],450,,[object Object],000,,[object Object],000,[object Object],6,[object Object],SOURCE: FACEBOOK,[object Object]

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The Socially Powered Enterprise (for #SM201)

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Editor's Notes

  1. Hello, everyone. My name is Eric Weaver and I am a digital strategist and account director for Tribal DDB Canada. We are the digital marketing division of DDB, one of the worlds largest ad agencies. I’m here to talk to you today about the Socially Powered Enterprise: how you can inject the voice, whim and desires of the customer into many aspects of your business.I'd like to thank Mike Whitmore and the rest of the organizers for SM201 and to thank YOU for taking the time out from your busy days to attend the conference. I promise we’ll do our best to make sure that your TREK out here to Redmond was worthwhile.
  2. I'd like to also welcome to your sophomore year. You've hopefully investigated Twitter, Facebook, blogs, etc. for your business. In fact let's take a quick survey:How many of you are actively building business right now using social media? How many on Twitter? How many have Facebook fan pages? How many of you have a business blog?
  3. The socialized business concept is no fad. It is part of a much broader cultural shift, a profound one, that is absolutely transforming our society.Let’s look at some numbers.
  4. How many of you have joined LinkedIn? More importantly, how many of you have created LinkedIn profiles for your business?That’s good because every day, <CLICK> more than 67,000 people join Linkedin.
  5. And then there’s Facebook. Any guess as to how many people are now members? That’s right: 450 MILLION.
  6. Every day, more than 830 THOUSAND people join Facebook. Every day, I’ve been told, they add three floors of data center space. Never before in history have so many people joined one website. And to put things into perspective, imagine every single man, woman and child in Seattle and several large suburbs joining Facebook each day. That is a hugely significant number.
  7. And these are not short checkins each day, or rare visits every week or so. The average Facebook user spends <CLICK> a total of 55 minutes on Facebook each day. Multiply that times hundreds of millions of people and you have a tremendous amount of time, attention and trust.
  8. So what, you say. How does that help my business? Well it turns out that consumers are more likely to buy if they are engaged within social sites. 50% reported this year that they are more likely to buy from you if you live where they live online. During the greatest recession of our lives, this is a significant number.
  9. How many of you have a business page on Facebook? More than 1.5 million businesses do. And did you know that every day, <CLICK> more than 20 MILLION people fan something? They tie their personal identity, their online affinity, to something. That’s powerful.
  10. Each one of these online “fannings” is more than a click of a Join button. It becomes a touchpoint on someone’s facebook wall. And not just there. Consumers are creating brand representations and touchpoints around YOUR BRAND, everywhere. McKinsey estimates that 66% of all touchpoints are now generated by customers! I used to be the guy making those touchpoints! Not any more. Your brand has become OUR brand, owned by the collective We.
  11. I used to create shiny, interactive banners that tried to get your attention. They had Flash, they had video, they had quizzes. They were distractions. And nowadays, they have an abysmal .19% clickthrough. But those customer-generated touchpoints now include things like Facebook Wall Posts. So I might fan Virgin America and as my friend, you might see that and wonder about it. Because of that inherent trust, wall posts have a 6.49% clickthrough. 34x the standard clickthrough of a banner.
  12. So, social media and the benefits it brings are as profound a change as when the freeways went in. And we know what happened to businesses that didn’t think about the freeway.So let’s take a step back and look at how you can socialize your business to recognize these massive shifts and rethink your approach to your market. Let’s look at how you can fish where the fish are.
  13. Today we’re going to examine the entire value chain and look for ways to inject our customers’ desires, whims, psychological triggers, eagerness to impact your product or service, and provide you with valuable feedback, at multiple points in the value chain.
  14. Let’s start with Marketing. I want to start by showing you a video explaining how the relationship has changed between we advertisers and our customers.
  15. Let’s take a quick quiz. Winston tastes good like…
  16. Maxwell House Coffee is …
  17. Yet marketers are still stuck in the past. When yellow page companies leave these on your doorstep unbidden, where’s the first place it goes? Who is it benefitting?When those flashing LED billboards light up the freeway and blind you at night, when advertisers are willing to put their offer above the safety of your children, does this build trust?And when airlines decide to put advertising on every seatback chair, is that a benefit to the consumer? Or to the advertiser? Does this build trust?
  18. Yet marketers are still stuck in the past. When yellow page companies leave these on your doorstep unbidden, where’s the first place it goes? Who is it benefitting?When those flashing LED billboards light up the freeway and blind you at night, when advertisers are willing to put their offer above the safety of your children, does this build trust?And when airlines decide to put advertising on every seatback chair, is that a benefit to the consumer? Or to the advertiser? Does this build trust?
  19. So Oprah does her last show, but you can’t see it. You rush home after work, and find out that MSNBC has a copy. You’re only one click away. You click and… you’re forced to sit through a commercial about WhiteStrips. Are you positively predisposed after watching this?
  20. And trust isn’t just some secondary lever. It’s perhaps the most important.91% of people surveyed globally will buy from a company based on their trust of that company. And here’s the kicker: 77% of people surveyed refuse to buy from companies they distrust. So of all these levers, trust is the one that drives preference. Trust drives transactions.
  21. The exciting news is that social tools can be used to build trust all along the purchase funnel. Traditional media, done smartly, can provide air cover while social sites can steer the swarm, coach the dialogue, provide value and amplify brand enthusiasm.
  22. Now let’s take a look at PR.
  23. Last year I spoke on talent and how HR could use social media to acquire, vet and retain talent. So we won’t go into that too much this year.
  24. But I will show you this case study. An Alberta credit union put out a job notice on Twitter and YouTube advertising for a youth spokesperson. This person would reach out using the same tools to other young adults. The entrants submitted videos and the job was awarded to a young woman who got busy and through social media, generated 2MM impressions, 2300 new accounts and 4MM in new deposits. Why did this work? It’s because young people trusted this spokesperson.
  25. Product management, product design, product naming. How does this happen in many small to mid-sized businesses? Owner whim. What if you could crowdsource your development to be sure you were designing something your customers actually wanted? Social channels can help get insights and create market-friendly innovations.
  26. Just before the Consumer Electronics Show this month, Kodak CMO Jeffrey Hayzlett asked his users over Twitter what they would call the latest waterproof version of their ZI-8 pocket hi-def video camera. The winner would win a free trip to Vegas to join Jeffrey as they unveiled the new camera to thousands of attendees. Jeffrey said:
  27. Investor relations has some challenges in that the SEC very carefully watches corporate messaging and many public firms are hesitant to risk any entanglement with them. But some are using social media for IR.
  28. For example, J&J is using audio podcasts to disseminate investor information and provide news updates.
  29. Sales can benefit as well from social media, through opportunity mining, direct sales models and in-store tools.
  30. Some of you may have heard of Gary Vaynerchuk. He inherited his family’s New York liquor business. He decided that the wine industry was stuffy and didn’t really connect with consumers. So he started making videos of himself explaining wines in layman’s terms. He tried a number of different approaches. You can see how well the outbound approach worked. People trust Gary because they can relate to him. That trust has turned into business. And Gary now has over 850,000 followers on Twitter
  31. Many of you are probably familiar with Twelpforce, Best Buy’s leveraging of its employee base to engage with customer care requests over Twitter. At a recent workshop in Canada, one of my clients wondered aloud if it was a good idea to trust “random employees” with handling customer care requests. And immediately another attendees stated “we trust them on the sales floor, don’t we?”Great example of an unpaid army that leverages the trust inherent in social channels.
  32. Nature’s Path Foods is North America’s largest organic cereal producer. They’re also my client. They were brave enough to open up nearly every page of their website to customer comments. These comments are funneled into a Gmail inbox for assignment and processing. Currently Nature’s Path gets between 40-100 inbound customer care requests through both Twitter and the website. The primary need for online customer care is the ability to track individual requests and route them appropriately. Before you turn this type of thing on, you have to have organizationally-agreed-upon guardrails and process for resolution. The business also needs to have the appropriately trained staff to process the requests.Typically when you introduce ANY new customer care channel, particularly social ones, the volume will increase, sometimes dramatically. We learned some lessons with Nature’s Path because we had no idea there would be such a flood of inbound queries.
  33. My mom is not a believer in the internet. In fact she says things like, “oh that internet. Lots of bad people hang out there.” And so I tell her, “yeah, thank god they don’t use telephones. Or Freeways.”Many boomers like me also question the value of all these social tools. Here’s why.
  34. Many people quote-unquote GET ON social media by creating a Twitter account and or a fan page for their business. They might upload some content to YouTube, they might do some Google searches to try to see what comes up around their brand but basically, they’re pulling 2 levers. They’re still subscribing to the outbound model.The first thing we tell people is to STUDY. Find reliable thought leaders. But make sure you follow the right people.
  35. In April 2009, social media strategist BL Ochman found around 4500 self-described GURUS were on Twitter. Expert, superstar, rockstar, sensei, ninja, and even JEDI MASTER. Then Oprah got on Twitter and sent her first tweet. And within a few months the number of newly-minted gurus jumped to 16000. That translates to about 54 new gurus per day. It’s a bit of a joke.
  36. There are a number of free tools that let you monitor your brand’s online mentions and hence reputation. They are
  37. There are a number of free tools that let you monitor your brand’s online mentions and hence reputation. They are
  38. Many organizations start that journey with social monitoring. As of November, 54% of companies in a recent survey indicated they are monitoring the social space. That means another 46% don’t even do that! My counsel to them and to you: Legal will wake up this year and come forward with precedents and positions on social marketing. Don’t wait for them to do that: get them involved this year and proactively push them to help you set up the rules of engagement. Decide how you’re going to interact with customers and prospects and create the conversational guardrails to let you to fearlessly interact with customers.
  39. This is a website called Lookbook. On it, Millennials create their own amateur fashion spreads using famous brands. They tag these brands, along with the type of print, material, and colors and place their photos online where other Millennials rate their look. Talk about putting yourself out there! In this spread, a young would-be model from Des Moines is showing off a Penguin brand shirt, owned by my client Perry Ellis. The company had no idea that their brand was being marketed, by young people, to other young people, in a very real, very authentic way.
  40. There are a number of free tools that let you monitor your brand’s online mentions and hence reputation. They are
  41. If you have a local business like a retail store, you’ll find increasing references to it on Yelp, CitySearch and social games like FourSquare, where people will check in at your place of business and provide feedback, tips, watchouts and rants. Choices Market, a Canadian chain similar to Trader Joe’s, probably has no idea that people are commenting on their store with tips like this.
  42. Many of you are already publishing. Make sure that you are creating content that respects time starvation. Make it highly tagged and consumed. Build trust through proof points. Build utility through guides and how-tos that transcend a mere brand offering. And create localized content to increase relevancy. Does your business have a Google profile or listing? Have you sponsored and recorded and published a meetup?
  43. Create the right content, conversation and conditions to elicit engagement and interaction rather than consumption. But make sure you’ve created organizational responses so that people know how to engage, how not to engage, and when.
  44. This engagement process document used by the Air Force is so thoughtful it’s been used by countless companies in determining an initial approach to engaging stakeholders both on internal and external sites.
  45. I tell my clients to remember a key issue: you can’t have a conversation if you don’t have an entry point. If you’re not actively engaging socially, you’ll never be a participant in a conversation about your own offering.
  46. Think about schools of fish or flocks of birds. They often change course or behavior en-masse without a leader or a top-down mechanism driving this change. People act the same way in the social space. They gravitate in various directions. Our goal is to create influence among many by making our content and conversation easily liked, fanned, and forwarded to others. I’d like to show you a project designed and executed by our Radar DDB division, that shows efforts to influence both consideration and purchase. The client is the Canadian Tourism Commission. The problem was that Mexican tourists were not choosing Canada as a destination.
  47. And finally, once we have influenced, what actions have been generated? How have we activated our audience? Have they been inspired enough to advocate our offering? And how do their actions amplify and reverberate online? Or perhaps the action we want to inspire is internal amongst employees.I’m going to show you one last video, again for Canadian Tourism. Last year DDB Vancouver created a website called Locals Know. It allows Canadians to upload videos of their own favorite and sometimes hidden travel destinations within Canada. The goal was to inspire action and advocacy for Canada. It generated some interesting results. Let’s take a look.
  48. So there you have it. Six things you should be doing to socialize your business. I’d encourage you to move past studying and publishing to look for ways to get into engagement, influence and activation. And here are some tips.