Stitching Marketing Conference 2009 presentation on December 5, 2009 in Ghent, Belgium, "Thriving In Turbulent Times With The Help Of Your Friends"

1. Thriving In Turbulent Times With The Help Of Your Friends Charlene Li Altimeter Group 5 December 2009 Twitter: #SMC2009 For a copy of slides, send an email to slides@altimetergroup.com

2. Meet Dave Carroll Source: davecarrollmusic.com

4. Success in the groundswell requires Open Leadership 4 Have the confidence to let go and still inspire results When people get what they need from each other

5. It’s about relationships

6. 6 A culture of sharing

7. Open LeadershipHaving the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals. Photo: Kantor, http://www.flickr.com/photos/kantor

8. Goals define your strategy

9. Always start with Learn

10. Learn with monitoring tools

11. Asos encourages “tweet-back” 11

12. Dialog with your community

13. The Engagement Pyramid

14. Vodafone UK engages on Facebook 14

15. Baby-Olifant.be created a relationship 15

16. Engagement scores of 100 brands 16 +18% revenue +15% gross margin growth +5% revenue +3% gross margin growth +10% revenue +1% gross margin growth -6% revenue -11% gross margin growth Source: EngagementDB.com

17. Help your members support each other

18. Premier Farnell supports engineers and employees with “OurTube” 18

19. Providing support via Twitter 19

20. Reviews from friends support sales Note: This is a mock-up, not an actual product Source: Razorfish

21. Goals define your strategy

22. Starbucks encourages ideas 22

23. Crowdsourcing new Walkers flavour 23

24. Getting started

25. #1 Start small, start now Understand audience “Socialgraphics” Set a clear goal

26. #2 Understand the benefits of openness “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express 26

27. Fans have value only if you do something with them. Buy more Coke Tell others how much they love Coke 4 million fans 27

28. Use metrics to manage openness Net Promoter Score How likely are you to recommend this to someone you know? Lifetime Value Lifetime revenue Cost of acquisition Cost of retention Customer referral value (CRV)

29. Making decisions with metrics Find more fans with large networks Encourage fans to make more referrals 29

30. #3 Build trust and manage risk The Sandbox Covenant

31. #4 Plan to fail well Identify the top 5-10 worst case scenarios. Encourage risk taking and forgive failures. 31

32. New rules of open leadership 32

33. Thank You Charlene LiAltimeter Group charlene@altimetergroup.com blog.altimetergroup.com Twitter: @charleneli For slides, send an email to slides@altimetergroup.com 33 Copyright © 2009 Altimeter Group