Customer Centricity:
The Art of Social Data
cleverbridge Networking Event, Boston
12 October 2011
Andreas Weigend
@aweigend
www.weigend.com

Building 1970’s
Computers

Connecting 1980’s
Computers

Connecting 1990’s
Pages

Connecting 2000’s
People

Connecting 2010’s
Sensors

Social vs Transactional
Data vs Social Media
Revolution vs Evolution

“Social Data is the New Oil”
UN General Assembly, 8 November 2011

Irreversible Shift
in Customer Mindset

Nike+
Customers
- engage
- connect
- share 3 times per week on average

Smartphones and Sensors
Context, situation
• Sound
• Light
Customers interact
• Tag
• Scan

Location: Google Latitude

Location
Absolute: Place, time
• Individual: Identity, History
• Aggregate: Insights
Relative: Distance
• To places: Advertising
• Between people: Dating
• Between devices: Risk

Create Distribute Consume
Everybody

Social Data Growth is EXPONENTIAL
The amount of data a person creates
doubles every 1.5 years
• after five years  x 10
• after ten years  x 100

Social Data Growth is EXPONENTIAL
This year people will generate
more data than mankind
has from its beginning
through last year

Economics of Social Data
* With social data being abundant, attention
has become the scarcest resource.
* To get attention, people will do anything,
including socialize their data

The ABC
Attention Advertising
Belonging Branding
Collaboration Confusion

Twitter -- The Illusion of an
Audience
World Innovation Forum, NYC, June 2010
Two Monologues don’t make a
Dialogue
GDI, Zurich, January 2010

Fundamental Shift in Communication
One-way  Two-way
Asynchronous  Synchronous
Planning  Interaction
List  Flow
Private  Public

Data Strategy
Attention Situation
• Clicks, Transactions • Geo-location
• Device
Intention
• Search
User generated Connection
• Reviews • Social graph

Case study: What data for
targeting of a new phone product?
Traditional segmentation Connection data
• Demographics • Who called who?
• Loyalty

1.35%
Adoption
rate
4.8x
0.28%
Traditional Connection
segmentation data

Company
Customers

Amazon.com Share the Love

Result: Amazing conversion rates
since customer chooses
Content (the item)
Context she ( just bought that item)
Connection (she asked Amazon to email her friend)
Conversation (information as excuse for communication)

Purpose of communication:
to transmit information?
Or is information just
an excuse for communication?

1993
“On the Internet, nobody knows you’re a dog”

2011
“On the Internet, everybody knows you’re a dog”

Social network intelligence
Social graph targeting: Provide prospects
Fraud reduction: Provide risk scores

Audience
C2B: Customer to Business
C2C: Customer to Customers
C2W: Customer to World

Amazon.com: Public sharing of interests

Who Can You Get To Work For You?
100M
Customers
100k
Employees
100
Specialists

Marketer-generated Consumer-generated
aware share
consider opinion
buy use
Funnel Megaphone

Get Your Customers To Work For You!
• Reduce barriers
for contribution
• Design incentives
that work

Corner / Oversized Rooms:
Rooms Ending in:
Oversized, Corner Room, Quiet
04 Room
Oversized, Corner Room with North
24 Times Square Views (Higher Floors
are Preferred
Rooms to Avoid:
Rooms Ending in:
01, 21 Possible Ice Machine / Elevator Noise
08, 17 Limited View Rooms

Customer
Product
Brand

From controlled production for the masses…
… to uncontrolled production by the masses

E  Me  We-commerce
Who talks to whom?
Consumers to consumers
Who trusts whom?
Shift from institutions to individuals
Who is in control?
From e-commerce (company focus, Web 1.0)
to me-commerce (customer focus, Web 2.0)
to we-commerce (relationship focus, Web 3.0)

Innovation
• Innovation
Internal  External
“Most smart people don’t work here.” Bill Joy
• Data
Collect and analyze  Create and share
• Experiments
Push and pray  Launch and learn

Data Culture
Do not have  Somewhere already
Cannot get  Can! User will give
Must not use  Embrace it
Be secretive  Be transparent
Information  Information symmetry
asymmetry

Product Culture
 Help people make better decisions
 Make it trivially easy for people to
contribute
 Give people an excuse to connect
Note: Products and services that use social data
improve over time

Company Culture
 Write the equations of your business in
terms of customer centric metrics
e.g., View-weighted availability
 Capture the space created by the
disappearing constraints of the past
e.g., Communication costs

Thank you!
Customer Centricity: The Art of Social Data
cleverbridge Networking Event, Boston
12 October 2011
Andreas Weigend
@aweigend
www.weigend.com