Presentation by Charlene Li on 24 May 2011 for HSM Mexico in Guadalajara, Jalisco, Mexico

1. Creating A Coherent Social Media Strategy 1 Charlene Li Altimeter Group 2011 May 24 Twitter: @charleneli Email: charlene@altimetergroup.com

2. 2

3. It’s time to move past experiments 3

4. It’s about RELATIONSHIPS © 2011 Altimeter Group

5. 5 Agenda Strategy Lead Prepare

6. 6 Agenda Strategy Lead Prepare

7. Strategy Process Stages 7

9. Level of strategy (corporate, biz unit, brand)

10. Identify key metrics

12. Objectives differ by level 10

13. Ask the Right Questions about Value 11 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

14. Use appropriate metrics at each level 12 Business metrics: revenue, CSAT, reputation. Social media analytics: Insights, share of voice, resonance, WOM. Engagement metrics: fans, followers, clicks.

16. Mindset

17. Roles

18. Stakeholders

19. Monitoring

20. Reporting

21. Customer Profile

22. Market Analysis

23. Processes

24. Organizational Model

26. Benchmarking Social Readiness (After) 15 April 2010

29. Define Your Strategy With Objectives 18

31. Expertise

33. 62% visit company profiles on social media sites

34. 55% visit company blogs

35. 51% participate in online business communities or forums

36. 49% ask questions on Q&A sites

37. 29% use Twitter to find or request business-related information Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393) 20

38. People in B2B use social media for work 21 Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393)

39. 22 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

40. Track brand mentions with basic tools 23 What would happen if every employee could learn from customers?

41. Integrate monitoring with workflow 24 Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech. From Radian 6, to be acquired by Salesforce.com

42. Go beyond basic monitoring to analytics 25 Make course corrections nearly real-time. Use predictive analytics to anticipate demand.

43. Shoppers want to be “known” 26 I walk into the store Store knows it’s me Give me offers And plans my visit

45. Go beyond traditional data to understand your customers 29 Demographic Geographic Psychographic Behavioral Socialgraphic

46. Where are your customers online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? What are your customers’ social behaviors online? How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 30

47. Engagement Pyramid 31

48. Engagement Pyramid - Watching 32 Watch videos Read blog posts Listen to podcasts Read tweets Read discussion forum posts

49. Engagement Pyramid - Sharing 33 Share a link Share photos Share videos Write a status update Retweet

50. Engagement Pyramid - Commenting 34 Comment on a blog Write a review Rate a product Participate in a discussion forum @Reply on Twitter

51. Engagement Pyramid - Producing 35 Write a blog Create videos or podcasts Tweet for an audience

52. Engagement Pyramid - Curating 36 Moderate a wiki or discussion forum Curate a Facebook fan page

53. Engagement Pyramid Data 37 Source: Global Wave Index Wave 2, Trendstream.net, January 2010

54. Conduct research to identify the social behaviors of your target customer Also identify: Where are they online: Surveys or brand monitoring Who do they trust: Surveys Who do they influence: Survey or brand monitoring How they use these tools in context of your products: Most often surveys. When you first understand your customers, your marketing efforts will naturally unfold. Putting socialgraphics to work 38

55. Listen and learn from your customers. Start with basic monitoring tools, but quickly evolve them. Invest in analytics that matter. Use metrics that are relevant to your business. Understand the socialgraphics of your customers. Summary - Learn 39

56. 40 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

57. Conversations, not messages Human, not corporate Continuous, not episodic The New Normal 41

58. Blogs establish thought leadership 42 CEO Richard Edelman has been blogging consistently since September 2004.

59. Dos Equis surpasses 1 million ‘likes’, uses social media to increase reach 43

60. Mundo-Contact establishes thought-leadership on Facebook and Twitter 44

61. The Central Bank of Brazil shares articles on twitter 45

62. Encourage commenting to get into the Facebook news feed 46

64. Insert your content into newsfeed of fans

66. ISS connects distributed work-force with social-powered intranet 49 “Everyone feels more connected. Socialtext is allowing us to work as a team towards our goals and serve customers more efficiently.” - Erick Vera, Enterprise Social Media Manager

67. Premier Farnell supports engineers with community, and employees with “OurTube” 50

68. Give out Flip cameras/smartphones Set up an internal “OurTube” Transcribe conversations into emails and posts Ask people for best practices, reactions, advice, opinion in areas of passion. Recognize key contributors. Getting people to share within your company 51

69. Tivo joined an existing community 52

70. 53 Advocacy – A five-phase approach

71. Tesco engages influencer blogs 54 Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.

72. Visa’s online video campaign increase card payments 19% 55

73. Have an authentic conversation with your customers that they want to have. Engage across and through social communities Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers in real time. Summary - Dialog 56

74. It’s about RELATIONSHIPS © 2011 Altimeter Group

75. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group

76. Support and Innovate With Your Customers 59 Charlene Li Altimeter Group 2011 May 24 Twitter: @charleneli Email: charlene@altimetergroup.com

77. It’s about RELATIONSHIPS © 2011 Altimeter Group

78. 61 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

79. Telmex provides customer support on Twitter 62

80. Ritz-Carlton managers monitor Twitter for real-time service 63 Property manager helped unhappy honeymooners

81. DellOutlet supports sales with Twitter 64

82. Question & Answer sites provide opportunity for support

83. Q&A encourages dialog too 66

84. iRobot ties discussion boards into customers support 67 iRobot escalates unanswered questions into support centers

85. Salesforce.com Service Cloud ties social channels back to customer data 68

86. Solarwinds’ community is strategic 69

87. Retailer Best Buy has 2,500 employees providing support via Twitter 70

88. Real-time isn’t fast enough. Integrate “social” support into your support infrastructure. Scaling support to meet the groundswell will require that you create your own groundswell. Summary - Support 71

89. 72 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

90. Participate in crowdsourcing to understand how it works. Create a culture of sharing and collaboration within the company. Encourage “intrapreneurship”. 85% of innovations involve optimizing one parameter. Use social media to collect and prioritize ideas. Reduce “power distance” with open leadership and management. How to encourage innovation 73

91. P&G uses reviews to improve products 74

92. GE asked for ideas from around the globe 75

93. Starbucks involves 50 people around the organization in innovation 76 Over 100 ideas have been implemented

94. P&G goes outside for innovation 77 P&G made outside-in innovation a priority

95. P&G developed technology from diaper research Reached out to competitor Clorox to form a new joint venture Helped Glad become Clorox’s second largest brand Success story: Glad Press’n Seal 78

96. Mobile apps like utour are revolutionizing their industry 79

97. ModCloth has customers merchandise new products 80

98. Innovating can come from any customer or employee interaction. Dedicated innovation communities require significant commitment and nurturing. Extend your firewall to bring customers into your organization. Summary - Innovating 81

101. Company and leadership implications

102. Risk identification

104. 84

109. Likenomics evaluation 87 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

110. 88 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

111. Social Search evaluation 89 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

112. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 90

113. Big Data evaluation 91 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

114. 92 4) Game-ification

115. TurboTax used “games” to encourage sharing and support 93 Social design can enter training, collaboration, support, hiring

116. Gamification evaluation 94 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

117. 95 5) Curation

118. Curation evaluation 96 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

119. Summary of disruptions 97

120. It’s about RELATIONSHIPS © 2011 Altimeter Group

121. Leading The Open Organization 99 Charlene Li Altimeter Group 2011 May 24 Twitter: @charleneli Email: charlene@altimetergroup.com

122. It’s about RELATIONSHIPS © 2011 Altimeter Group

123. 101 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

124. OUT ofCONTROL? © 2011 Altimeter Group

125. 103 © 2011 Altimeter Group

126. 104 © 2011 Altimeter Group

127. 105 How to give up control but still be in command © 2011 Altimeter Group

128. Open Leadership 106 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals

129. 10 elements of openness 107

130. Explaining strategic decisions 108 Open book management Managing leaks

131. 109 Updating with every day stuff

132. Kohl’s has conversations on Facebook 110

133. Open Mic: When people contribute 111

134. Crowdsourcing new Walkers flavour 112

135. Open platforms make it easy to partner and share 113 Open architecture Open data access

136. 114 Centralized Democratic Distributed Consensus Decision making models

138. 16 Councils, 50 Boards make strategic decisions

140. Complete the Openness Audit 117

141. Traits of Open Leaders 118 Authenticity Transparency

142. Transparency as an imperative 119

143. How Best Buy became open and social 120

144. Best Buy’s First Social Media Experts 121 Steve Bendt & Gary Koelling

145. The Executive Advocate 122 Barry Judge CMO of Best Buy

146. Barry’s first post 123

147. The Premier Black Fiasco 124 6.8 million emails sent instead of 1,000 test

148. Developing Open Leaders © 2010 Altimeter Group

149. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2010 Altimeter Group

150. 127 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

151. #1 Create a Culture of Sharing 128

152. #2 Discipline is Needed to Succeed 129 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes Adapted from US Air Force Comment Policy Let post stand and monitor. © 2011 Altimeter Group

153. Five ways companies organize around social media 130

154. #3 Ask the Right Questions about Value 131 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

156. Size of their networks

157. Percent of referred people who purchase

159. Frequency and value of the support+ Value of support + Value of ideas Spreadsheets for all calculations available at open-leadership.com

160. 35% increase in LTV captured 133

161. Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 134

162. No relationships are perfect Google’s mantra:“Fail fast, fail smart” #4 Prepare for Failure 135 © 2011 Altimeter Group

163. 136 Create Sandbox Covenants © 2011 Altimeter Group

164. Structure your risk-taking and failure systems to create resilience 137 Conduct pre- and post-mortems. E.g. Johnson & Johnson after Motrin Moms. Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. E.g. Ford’s “lost” Fiesta. Build in responsiveness. E.g. Best Buy’s Black reward card. Prepare yourself for the personal cost of failure.

165. Audit the last few failures you and your organization experienced. 25% - what happened. 25% - what you learned. 50% - what you will do next. Keep a failure file. Identify risk-taking training needs. Build failure into your planning and operating processes. Create support networks for the inevitable failures. Action plan to prepare for failure 138

166. It’s about RELATIONSHIPS © 2011 Altimeter Group

167. 140 Give Up Control AND STILL BE IN COMMAND © 2011 Altimeter Group

168. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group