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How the Social Data Revolution Changes the Way Consumers Make Decisions

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How the Social Data Revolution Changes the Way Consumers Make Decisions

  1. 1. e-business me-business we-business:How the Social Data Revolution Changes the Way Consumers Make Decisions Digital Day China Shanghai, 22 Nov 2011
  2. 2. Why this revolution?It addresses the 3 deep needs: Approval Belonging Communication
  3. 3. What is the revolution?Irreversible shift inmindset of customersabout who they are,how they relate,how they make decisions
  4. 4. e-business (company focus, Web 1.0)• Website provides controlled information• Website possibly allows for transactions
  5. 5. me-business (user focus, Web 2.0)• Consumer in the center• Self-expression, 晒 (shai, show off)
  6. 6. we-business (community focus, Web 3.0)• Collective intelligence• The social consumer
  7. 7. SocialLocalMobile
  8. 8. USA: Who do Consumers Trust?• Friends: People who like you – Offline – Online• Peers: People like you – Similar background – Similar situation• Experts
  9. 9. average(1-10 scale) | China: Credibility 8.5 | Friends and family 8.0 | Internet word of mouth 7.0 | News and authorities 5.3 | Sales person 5.0 | AdsSource: CIC 2010 Efluencer Survey
  10. 10. Two meanings of “social”1. Social graph Who is connected with whom?2. Social data
  11. 11. Case study: What data for targeting a new phone product?Traditional segmentation Connection data• Demographics • Who called who?• Loyalty
  12. 12. 1.35% Adoption rate 4.8x 0.28%Traditional Connectionsegmentation data
  13. 13. Amazon.com Share the Love
  14. 14. 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)
  15. 15. Two meanings of “social”1. Social graph2. Social data Consumer create and share data Knowingly and willingly
  16. 16. Purpose of communication:to transmit information? Or is information just an excuse for communication?
  17. 17. Nike+Customers- engage- connect- 3 times per week on average
  18. 18. Corner / Oversized Rooms: Rooms Ending in: Oversized, Corner Room, Quiet 04 Room Oversized, Corner Room with North 24 Times Square Views (Higher Floors are PreferredRooms to Avoid:Rooms Ending in: 01, 21 Possible Ice Machine / Elevator Noise 08, 17 Limited View Rooms
  19. 19. SocialLocalMobile
  20. 20. Local Absolute: Place, time • Individual: Identity, History • Aggregate: Insights Relative: Distance • To a business: Advertising • Between people: Dating • Between devices: Risk
  21. 21. Location HistoryGoogle Latitude
  22. 22. Social Local Mobile“SoLoMo”
  23. 23. Mobile Context, situation • Sound • Light Customers interact • Tag • Scan
  24. 24. Attention Situation • Clicks, Transactions • Geo-location • Device Intention • SearchUser generated Connection • Reviews • Social graph
  25. 25. Question:What is the biggest change in the last 5, 10 years you have seen?
  26. 26. 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
  27. 27. Data = Digital Air
  28. 28. In the last Minute…10,000,000 Web searches Ad requests Text messages 1,000,000 Facebook posts 100,000 Product searches Tweets
  29. 29. Fundamental Shift in Communication One-way  Two-way Asynchronous  Synchronous Planning  Interaction List  Flow Private  Public
  30. 30. A. Production: Everybody creates data.B. Distribution: Everybody shares data.C. Consumption: Everybody uses data. •  The study of the consumer has changed •  The consumer has changed
  31. 31. Consumer Decision Making
  32. 32. Marketer-generated Consumer-generatedaware share consider opinion buy use Funnel Megaphone
  33. 33. “Tina Jiang is my go to LV person”
  34. 34. Top 8 Brands (by number of posts)Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)
  35. 35. Category (by number of posts)Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)
  36. 36. Topic (number of posts)
  37. 37. Content (by number of posts)
  38. 38. Who Can You Get To Work For You? 100M Customers 100k Employees 100 Specialists
  39. 39. CompanyCustomers
  40. 40. Customer Product Brand
  41. 41. Product Culture Help people make better decisions Make it trivially easy for them to contribute Give people an excuse to connectNote: Products/services that use social data improve over timeTake the test yourself http://socialdatalab.com/intelligence
  42. 42. Data Culture Do not have  Somewhere already Cannot get  Can! User will give Must not use  Embrace it Be secretive  Be transparent Information  Information asymmetry symmetry
  43. 43. Company Culture (“DNA”) 1. Facebook Designed for contribution and distribution 2. Google Take whatever you can get 3. Amazon Customer-centric: Help them make decisions
  44. 44. Ingredients for engagement:AdvertisingBrandingCorporate Communication
  45. 45. Ingredients for engagement:ApprovalBelongingCommunication
  46. 46. Twitter: The Illusion of an Audience?Two Monologues are not a Dialogue!
  47. 47. 1993“On the Internet, nobody knows you’re a dog”
  48. 48. 2011“On the Internet, everybody knows you’re a dog”
  49. 49. e-business me-business we-business aweigend@stanford.edu +86 138 1818 3800 www.weigend.comDr. Andreas Weigend, Social Data Lab

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