This document discusses strategies for businesses to succeed in a world transformed by social media. It provides a six-phase framework for developing social business maturity: 1) Planning, 2) Presence, 3) Engagement, 4) Formalized, 5) Strategic, and 6) Transformation. The key lessons are that social strategies often fail due to a lack of clear business goals; strategy requires planning initiatives across departments and over multiple years; and transforming the business fully is the ultimate goal, where business itself is social.

1. Winning in a World Transformed
by Social Media
Charlene Li, Founder & Analyst, Altimeter Group
@charleneli | charlene@altimetergroup.com
April 2, 2013 | Simmons Leadership Conference

2. 2

3. Social is About
RELATIONSHIPS
Not Technology

4. STRATEGY
ORGANIZATION
PREPARE
© 2011 Altimeter Group

5. Why Most Social Strategies Fail
No Clear
Business
Impact

6. Strategy Requires Planning

7. Six Phases of Social Business Maturity

8. 1 Planning
“Listen to Learn”
8

9. Red Cross monitors social channels during
disasters to direct relief efforts
During disasters, the Red Cross is able to find out about specific incidents,
spot trends, and anticipate public needs. Red Cross representatives can use
the command center to quickly match disaster victims with aid relief.
9

10. 2 Presence
“Stake Our Claim.”
10

11. Shell Tracks Reputation Impact…Daily

12. Have The Courage
to Take the Leap
© 2011 Altimeter Group

13. 3 Engagement
“Dialog Deepens
Relationships”
13

14. 14
Develop rules for engagement
Source: “Social Media Strategy Secret Sauce: How Intel Makes Data-driven Decisions,”
Allen Stephens, Keith Molesworth, and Tiffany Peery, March 21, 2011

15. 4 Formalized
“Organize For Scale”
15

16. Ebay’s Global CoE coordinates across
functions, properties, and geographies
• Responsible for social strategy
• Alignment of roadmaps and plans
• Analytics and reporting infrastructure
• Monthly Social Media Council
meetings, with knowledge sharing
initiatives
Source: http://www.slideshare.net/influencepeoples/ali-croft-monitoring-social-media-ebay

17. 5 Strategic
“Become a Social Business”
17

18. Sephora integrates
social + digital in
communities as
well as in stores.
Goal: Understand
their “superfans” customer spending
who spend 10X. average customer
2.5x community user
superfan
10x

19. 6 Transformation
“Business is social.”
19

20. 20
ARAMARK must contend with separate
businesses and differing goals and objectives
ARAMARK’s challenges:
1. Over 255K employees
2. Organized into separate
businesses by industry
3. 1000s of client locations
4. Different client goals and
objectives
5. Ingredient brand

21. 21
It’s equipped and enabled over 400+ locations
to manage social media – within parameters
 Rebranded for social
engagement, around
voice, purpose, and
image.
 Previously siloed, now
creating new processes
that result in improved
customer satisfaction and
sales across the value
chain

22. STRATEGY
ORGANIZATION
PREPARE
© 2011 Altimeter Group

23. (re)Organize Marketing for Agility
and Resilience
Rigid Organizations Adaptive Organizations

24. Success Factors of A Social Business

25. Strategy is What
You Decide To Do
And What You
Decide NOT To Do

26. Social Business Initiatives Framework
• Learn: What can be learned
from customers and community Dialog
• Dialog: The nature of our
interactions with customers
Advocate
• Advocate: How to build
advocacy among customers Learn
and community Support
• Support: How to provide
support via social channels
• Innovate: Using customer and Innovate
community to drive innovation

27. Plan out what will happen over time
Year One Year Two Year Three
MONTHS 1-6 MONTHS 7-12 MONTHS 1-6 MONTHS 7-12 MONTHS 1-6 MONTHS 7-12

28. Example: Social Business Initiatives, organized 28
by Goals into a 3 Year Roadmap
Now – 6 6-12 12-18 18-24 24-30 30-36
Category Initiative months months months months months months
Create greater loyalty to drive sales
Advocate Initiative
Support Initiative
Advocate Initiative
Advocate Initiative
Advocate Initiative
Increase share in SMB market
Learn Initiative
Dialog Initiative
Dialog Initiative
Advocate Initiative
Create four new products
Innovate Initiative
Innovate Initiative
Learn Initiative
Reduce customer service costs
Learn Initiative
Dialog Initiative
Support Initiative
Support Initiative
Support Initiative

29. Most companies organize as Hub & Spoke,
but are moving toward Multiple Hub & Spoke
9.4% 29.1% 35.4% 23.6% 2.4%

30. 30
Create Discipline In Engagement
Source: “H&R Block’s Response Process” David Armano, Edelman 2010

31. Social Media Training is About Developing
Judgment -- and the Confidence to Use It
What you What you
Judgment is needed in between
should do shouldn’t do

32. STRATEGY
ORGANIZATION
PREPARE
© 2011 Altimeter Group

33. #1 Align Executives With Clear
Business Goals

34. #2 Ask the Right Questions 34
About Value
“We tend to overvalue the things
we can measure, and undervalue
the things we cannot.”
- John Hayes, CMO of American Express
© 2011 Altimeter Group

35. 35
#3 Create a Culture of Sharing

36. 36
#4 Master the Art of Failure
No relationships are perfect
Google’s mantra:
“Fail fast, fail smart”
© 2011 Altimeter Group

37. #5 Determine Your Personal
Social Strategy

38. Warrior engages colleagues and friends
through both work…

39. 39
…and personal passions

40. Social is About
RELATIONSHIPS
Not Technology

41. © 2012 Altimeter Group