Social Media and Startups


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Presentation to Pitch & Mix at Idea Space on 23 September, 2010

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Social Media and Startups

  1. 1. Social media & startups<br />Presented at Pitch & Mix at IdeaSpace<br />Cambridge, 23 September 2010<br />
  2. 2. Eric Swain<br />Managing Director<br />
  3. 3. if<br />Businesses need an Internet presence<br />and<br />The Internet is increasingly social<br />then<br />Businesses must have a social element<br />David Gillespie<br />
  4. 4. What<br />social networks<br />social media<br />social business<br />
  5. 5. Don’t focus on the tools!<br />
  6. 6. It’s about people having conversations, connecting and engaging online.<br />
  7. 7. Unsocial /Social <br />unsocial<br />social<br />advertise<br />attention<br />target<br />televised<br />one to many<br />impressions<br />campaigns<br />control<br />entertain<br />participation<br />content<br />friended<br />one to one, many to many<br />expressions<br />movements<br />leverage<br />
  8. 8. Connected 2.0 Principle<br />
  9. 9. Connected 2.0 Principle<br />
  10. 10. 90-9-1 Principle<br />10<br />“In social groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule:”<br />
  11. 11.
  12. 12. Social media and startups<br />challenges<br />opportunities<br />resources<br />unknown<br />noise<br />not your customers<br />no brand<br />resources<br />need speed<br />access to passion<br />idea<br />reach<br />networks<br />fresh brand<br />freedom<br />build real relationships<br />
  13. 13. Why<br />social networks<br />social media<br />social business<br />
  14. 14. Be found when and where your customers are looking<br />This means on the Internet and the lips of friends<br />The new marketing is about being found by customers when they are looking to buy what you are selling.<br />
  15. 15. A recommendation from a friend would make 71% of people more comfortable with a product or service – more so than advertising (15%) or even personal experience (63%)<br />MediaLab<br />Startup Ideas<br />
  16. 16. Vertical engagement<br />Between the org and people<br />Campaign-based, valuable but limited<br />This is your engagement activity<br />
  17. 17. lateral engagement<br />Between people<br />For startups, this starts with the Idea<br />“We have to share this”<br />
  18. 18. 2/3<br />Of the global Internet population visit social networks<br /><br />
  19. 19. The power of social media lies in people using these tools – the creation of self-organised communities of like-minded people– making it a good way for businesses to understand, inform and connect with the people who buy their products and services. <br />
  20. 20. Re-thinking marketing<br />old marketing<br />new marketing<br />telemarketing<br />print ads<br />direct mail<br />trade shows<br />tv/radio ads<br />spam<br />interruption!<br />seo/search marketing<br />blogging<br />social media<br />rss<br />viral videos<br />word of mouth<br />permission<br />Startup Ideas<br />
  21. 21. “My customers don’t use social networks”<br />
  22. 22. Why<br />Relationship<br />Authority<br />Discovery<br />
  23. 23. relationships<br />
  24. 24. authority<br />
  25. 25. Discovery - 75/25 Google Principle <br />Search click rates<br />SEO<br />Google weighs external links over on-site keywords 75/25<br />25%<br />75%<br />
  26. 26. Discovery – Social search<br />
  27. 27. Why? - ROI<br />Cost Reduction<br />Ops efficiency<br />Reduced marketing spend<br />Shorten sales cycles<br />Cheaper customer service<br />Market research<br />Business intelligence<br />Revenue Increase<br />More transactions<br />Higher yield<br />Net new customers<br />Customer loyalty<br />
  28. 28. ROI – f.r.y.<br />Frequency<br /> Increase how often customers buy from us<br />Reach<br /> Increase net number of transacting customers<br /> Increase net number of transactions per customer<br />Yield<br /> Increase average spend per transaction<br />FRY from Olivier Blanchard<br />My illustration<br />
  29. 29. Gary Vaynerchuk grew his family wine shop from $4 million to $50 million using social media. <br />
  30. 30. $15k Direct Mail = 200 new customers<br />$7.5k Billboards = 300 new customers<br />$0 Twitter = 1,800 new customers<br />$0 Twitter = 1,800 new customers<br />
  31. 31. b2b<br />Content<br />Network<br />Expert<br />Connections<br />Show (not) Tell<br />Knowledge base<br />Relationships<br />Story<br />Tools<br />Trust<br />Soften & Support<br />Framework<br />
  32. 32. What<br />social networks<br />social media<br />social business<br />
  33. 33. Use Cases of Social<br />Social Business/Social CRM<br />Marketing<br />Sales<br />Service & Support<br />Innovation<br />PR<br />CustomerExperience<br />Marketing Insights<br />Social Sales Insights<br />Support Insights<br />Innovations Insights<br />Reputation Management<br />Seamless<br />Customer Experience<br />Brand Managment<br />Rapid Social Marketing Response<br />Rapid Social Sales Response<br />Rapid Social Response<br />Crowdsourced R&D<br />VIP Experience<br />Enterprise Collaboration<br />Social Campaign<br />Proactive Lead Generation<br />Peer-to-Peer Unpaid Armies<br />Social Event Management<br />Altimeter Group<br />
  34. 34. Marketing Case Study –<br />Video and boxes of chocolate covered grasshoppers<br />Connection via social networks – not promotion, just conversation, photos, user videos, etc<br /><br />1st month: <br /><ul><li>93% increase in website clicks
  35. 35. 187,000 video views
  36. 36. 1,461 Tweets to 1M+ followers
  37. 37. More buzz than previous 6 yrs</li></li></ul><li>Sales Case Study – HP 31 Days of the Dragon<br />Promotion of new laptop system – HDX Dragon<br />Blogger outreach only<br />31 systems to giveaway – bloggers created contests for their readers<br /><ul><li>25,000 entries, website traffic up 14%
  38. 38. 50M impression, 10,000 videos created, 380,000 discussions
  39. 39. Dragon sales up 84%, PC sales up 10% (sustained)
  40. 40. blog traffic up 150% - Win/Win</li></li></ul><li>Sales Case Study – HP 31 Days of the Dragon<br />HP HDX Dragon Sales Results<br />Giveaways end<br />Even after the end sales remain<br />well above normal – long term <br />effects<br />Giveaways begin<br />
  41. 41. Customer Experience Case Study - FreshBooks<br />Customer-centric approach<br />Twitter engagement key<br />Userbase up 300% in 2 years<br />
  42. 42. Consumer Insights Case Study - Kodak<br />Dismay in the social networks at the name of the new Zi8<br />Kodak launched a contest to let users choose the next name.<br />1000s of suggestions via Twitter and blog<br />Press coverage everywhere<br />
  43. 43. PR Case Study – Nestlé<br />Greenpeace “ad” on YouTube<br />Facebook censorship<br />Tidal wave of attacks<br />Have a plan<br />
  44. 44. Domino’s were slow to react initially, but came good.<br />
  45. 45. How<br />social networks<br />social media<br />social business<br />
  46. 46. How<br />
  47. 47. Listen & Learn<br />Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity.<br />To be accurate in your social strategy, you must know the specific behaviors of your customer base.<br />43<br />
  48. 48. Socialgraphics asks key questions<br />Where are your customers online?<br />What are your customers’ social behaviors online?<br />What social information or people do your customers rely on?<br />What is your customers’ social influence? Who trusts them?<br />How do your customers use social technologies in the context of your products.<br />44<br />
  49. 49. Monitoring and Graphing<br />
  50. 50. The social customer<br />Social Landscape<br />CLV<br />CRV<br />Customer<br />Social Customer<br />“The Social Web is distributing influence beyond the customer landscape, allocating authority amongst stakeholders, prospects, and peers.” – Brian Solis<br />
  51. 51. Strategy<br />Align social with strategic business goals<br />Refer to what you learned monitoring<br />Set measureable objectives (measure the right things)<br />Create strategic plan and financial model<br />Develop tactics to achieve strategy<br />Who? What? When? Where?<br />
  52. 52. Implement / Integrate<br />Staffing<br />Cross-departmental<br />Tools, configurations, workflows<br />Training<br />Company guidelines, policies, procedures<br />
  53. 53. Manage<br />Customer support<br />Community engagement<br />Market research<br />Business intelligence<br />Day to day execution<br />Monitoring<br />Distribution<br />Content production/publishing <br />
  54. 54. Measure<br />Are the objectives being met?<br />Do we need to reassess or refine the strategy/tactics?<br />Are we successful?<br />
  55. 55. How<br />
  56. 56. Take Away<br />52<br />Start small, start now<br />Pick a goal<br />Where to start? Align social with strategic goals<br />Startup Ideas<br />Examine your 2010 goals<br />Pick one where social can have an impact <br />
  57. 57. Thank you!<br />Eric Swain<br />+44 7773 798259<br /><br /><br />@ericswain<br />