How to sell the vision & value of online community

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How to sell the vision & value of online community

Online communities are the life force of many customer, partner, and employee engagement programs, but community and marketing leaders often struggle to communicate ROI for the business. This roundtable discussion will share practical ways to create, measure, and communicate the business returns of your online community program.

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How to sell the vision & value of online community

  1. 1. HOW TO SELL THE VISION & VALUE OF ONLINE COMMUNITY October  30,  2013  
  2. 2. TODAY’S PANELISTS: •  Vanessa DiMauro, CEO and Managing Partner, Leader Networks •  Lisa Sacquitne, Manager of Non-Integrated Services, SPS Commerce •  Jessica McDouall, Senior Manager of Non-Integrated Services, SPS Commerce •  Robert Miller, President & CEO, IntelliQ Research & Strategy
  3. 3. L E A D E R NETWORKS The  Online  Community  Landscape   •  Gartner  predicts  70%  of  sponsored  online  communiDes  will  fail  by  2014   fail  aFer  generaDng  liGle  or  no  return  for  some  of  the  world's  largest   companies.   –  –  –  –  Failure  to  establish  a  business  case   Fail  to  gain  tracDon  with  engagement  or  member  growth   Fail  to  meet  member  expectaDons   Fail  to  achieve  measureable  ROI   •  But  success  is  possible  and  offers  great  returns!       –  Forrester  Research  calculates  that  a  10-­‐percentage-­‐point  improvement  in  a   company’s  customer  experience  score  can  translate  into  more  than  $1  billion   in  revenue.     -­‐  Success  oFen  found  in  cost  reducDon,  increased  customer  retenDon,  more   producDve  partner  relaDons,  new  ideas  generated,  beGer  use  of  the  products   and  services  offered.     Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro  
  4. 4. L E A D E R NETWORKS Achieving  A  Higher  Success  Rate  With  Community   Many  companies  are  generaDng  significant  returns  from  their  online  communiDes.        Cost  reduc>on   •  Autodesk’s  online  customer  community  has  cut  support  costs  by  $6.8  million  annually.     •  HewleG  Packard  reported  that  over  50%  of  its  online  support  requests  are  resolved  by  fellow  customers   online,  which  translates  into  $50  million  in  savings  per  year.       Product  Innova>on   •  Eighty-­‐four  percent  of  Analog  Devices’  Engineer  Zone  is  a  community  of  12,000+  electrical  design   engineers  say  the  community  helped  them  speed  their  design  process,  and  three-­‐quarters  were  more   likely  to  buy  products  from  the  company  because  of  the  community.     •  SAP’s  Online  Community  charges  its  communiDes  with  surfacing  new  ideas  for  product  enhancements.   Last  year,  they  delivered  more  than  90  ideas  that  became  product  features.       Revenue  Genera>on   •  Within  6  months  of  launch,  The  Palladium  Group  (founders  of  the  balanced  scorecard)  online  community  –   XPC  was  generaDng  revenue  through  partner  and  sponsor  programs  and  premium  membership.       Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro  
  5. 5. L E A D E R NETWORKS Seven  Common  Community  Mis-­‐steps   1.  Community  goals  are  skewed  to  company  –   not  member  -­‐-­‐  needs.     –  2.    “Tool  talk”  precedes  strategy.     –  3.  6.     Failure  to  feed  the  content  beast.   –  7.   Community  management  is  a  profession  –  hire   and  pay  accordingly.      Chasing  only  business  metrics  and  not   member-­‐driven  ones.   –  Companies  should  begin  evaluaDng  community   soFware  only  aFer  they  have  clearly  arDculated   and  market-­‐tested  the  community  features  with   prospecDve  members.   Community  programs  and  plans  should  focus  on   short  sprints  -­‐-­‐  not  a  big-­‐bang  approach.      Poor  community  management  skills.     –    Mausoleums  are  built  instead  of  sherpa  tents.   –  4.  Community  must  be  maniacally  focused  on   serving  the  members  first  and  business  goals   second.    That  is  how  relaDonships  are  built.     5.   Companies  oFen  track  metrics  that  don’t  maGer   to  the  business  but  are  the  easiest  to  gather.     For  example,  if  customer  saDsfacDon  and   retenDon  is  a  core  goal,  how  has  the  community   helped  customers  beGer  resolve  their  problems   and  avoid  your  call  center?      No  community  zealot  at  the  top:     –  Online  communiDes  need  a  strong  and  visible   execuDve  champion.     Online  communiDes  need  a  constant  flow  of   new,  valuable  informaDon  for  members.   Members  come  for  content  and  stay  for   community.       Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro  
  6. 6. L E A D E R NETWORKS How  Do  We  Get  Company  Leadership  More  Involved  And   Convinced  Of  The  Value  Of  Community?   •  ExecuDve  sponsorship  is  key  to  successful  online  community  –  take  the   Dme  to  culDvate  it:  it  is  your  responsibility.     •  Always  be  able  to  answer  the  “so  what”  quesDon  with  consistency  and   clarity.       •  Community  must  be  Ded  to  organizaDonal  strategy  in  order  to  deliver   value:  make  those  linkages  apparent.     •  Tell  the  whole  community  story  in  business  terms.  Keep  your  execuDve   sponsor(s)  informed  and  enable  them  to  understand  the  opportuniDes,   outcomes  and  challenges  with  building  and  growing  online  community.     •  You  /community  succeed  when  your  enable  your  execuDve  sponsor  to   shine!       Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro  
  7. 7. L E A D E R NETWORKS Key  Ques>ons  All  Online  Communi>es  Must  Answer  To  Succeed   Strategy   Development   Market  Valida>on   Business  Alignment   - What  are  we  trying   to  accomplish?   - Which  stakeholders   are  we  looking  to   engage  with?   - Why?    What  is  the   business  case?   - Which  business   processes  will  be   enhanced?    How?   - How  does  this   iniDaDve  align  with   our  strategic   objecDves?   - How  can  we  test  our   - How  can  we  ensure   hypothesis  before   that  the  business   making  a  significant   requirements  will   investment?   drive  the  process?   - What  do  we  have  to   - How  will  we  know   offer  and  what   that  the  technical   would  we  like  to  see   requirements  align   in  return?   with  the  business   - Which  features  &   requirements?   content  really   - How  can  we  make   maGer?   sure  that  our   - If  we  build  it,  will   requirements  come   they  come  and  will   first  in  selecDng  and   they  return?   deploying  a   technology   plauorm?   Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro   Community   Opera>ons   - How  will  we  know  if   the  iniDaDve  aligns   with  our  strategic   objecDves?   - How  will  we   measure  success?   - How  do  we  go   about  establishing   social  policies  (e.g.   “rules  of  the  road”)?   - How  will  we  meet     member   expectaDons  on  an   on-­‐going  basis?   7  
  8. 8. L E A D E R NETWORKS What’s  The  Big  Deal  About  Measuring  Success?   Source:  Social  Business:  What  Are  Companies  Really  Doing?   MIT  Sloan  Management  Review,  Research  Report  2012  (in  collaboraDon  with  DeloiGe),   by  David  Kiron,  Doug  Palmer,  Anh  Nguyen  Phillips,  Nina  Kruschwitz   Source:  Social  Business:  ShiFing  Out  of  First  Gear   MIT  Sloan  Management  Review,  Research  Report  2013  (in  collaboraDon  with  DeloiGe   University  Press),  by  David  Kiron,  Doug  Palmer,  Anh  Nguyen  Phillips,  Robert  Berkman   Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro   8  
  9. 9. L E A D E R NETWORKS While  Social  Performance  Measurement  Is  In  Place,  It  Is  O^en   Disconnected  From  Strategic  Objec>ves   Source:  The  Social  Business  Benchmark  Study  –  2013  Preliminary  Findings   Leader  Networks,  LLC  (co-­‐launched  with  the  Society  for  New  CommunicaDons  Research  -­‐  SNCR)   Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro   9  
  10. 10. L E A D E R NETWORKS How  Can  We  Establish  A  Macro  Perspec>ve  For  Return-­‐on-­‐ investment?   Numerator  /  Net  Income:   -  IdenDfying  where  new  opportuniDes  lie   -  AnDcipaDng  changing  customers  needs   -  InvesDng  preempDvely  in  building      new  competencies   ROI  =  N  /  D   Denominator:   -  Investments   -  Net  assets   -  Capital  employed     -  People   Source:  CompeDng  for  the  Future   Gary  Hamel  &  C.K.  Prahalad   Harvard  Business  School  Press,   1994   Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro   10  
  11. 11. L E A D E R NETWORKS Online  Community  Metrics  Should  Be  Aligned  With  Business  /   Func>onal  Unit  And  Corporate  Objec>ves   Corporate  Objec>ves   Business  /  Func>onal  Unit     Objec>ves   –   Financial   –   Customer   –   Process   –   Learning  &  Growth   Online  Community  IniDaDve     (Business  Case  /  ROI)   Current   Target   Outcome   Delta    /  ROI   General  Metrics   Site  Metrics   Business     Metrics   Copyright  ©  2013  Leader  Networks,  LLC   HGp://www.leadernetworks.com              @vdimauro   11   11  
  12. 12. L E A D E R NETWORKS Thank  you!     QuesDons,  comments  and  keeping  the  conversaDon  going…     Vanessa  DiMauro   CEO  &  Managing  Partner,  Leader  Networks   617  484  0778   @vdimauro   vdimauro@leadernetworks.com   www.leadernetworks.com     For  more  informaDon  on  this  topic:   hGp://www.slideshare.net/vdimauro/how-­‐to-­‐excite-­‐your-­‐ execuDves-­‐about-­‐online-­‐community     Copyright  ©  2013  Leader  Networks,  LLC   12  
  13. 13. ABOUT SPS COMMERCE SPS Commerce is the leading provider of retail supply chain cloud services, providing the critical capabilities retailers, suppliers, and channel partners need to succeed. Headquartered in Minneapolis, MN with 700+ employees world-wide.
  14. 14. OUR COMMUNITY •  Publicly available Support Center –  “Get Help. Give Help. Share Ideas.” •  December 2012: Pilot Launch to 1000 Customers •  January 2013: Formal Release to Focused Customer Base •  Reached 700+ Registered Members within 8 Months –  Active Members: 86%
  15. 15. MEASURING SUCCESS •  Scale Support Offering –  On-Demand Assistance •  Chat Integration into Support Center – CSAT 96% •  Searchable Training video Library – 20,000 Views •  Product Innovation/Feedback Loop –  53 New Ideas •  21 Under Consideration, 9 Planned, 2 Implemented! –  Engagement Across the Organization •  Product Management, Development, Customer Operations •  Enhanced Customer Experience –  On-Demand Assistance – 110,000 Topic Pageviews –  Transparency into New Product Features & Bugs –  Building Trust & Stronger Relationships – 60% Return Visitors
  16. 16. About  IntelliQ  Research  and  Strategy     Strategic  market  and  customer  insights  and  analyDcs  firm  with   domain  experDse  in  healthcare  and  B2B  including  manufacturing,   transportaDon,  chemicals,  professional  services,  and  informaDon   technology.        Started  in  1983.      Focused  on  the  market  research   use  case  for  community,  social  media  analyDcs,  and  ROI  metrics.                                      CincinnaD,  OH                                                                            State  College,  PA   www.intelliqresearch.com
  17. 17. ROI  Defini>on   “A performance measure used to evaluate the efficiency of an investment. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.” “The monetary benefits derived from having spent money on developing or revising a system.” KEY QUESTIONS à How do I know it is worth having a community? or Show me what I am getting out of this!
  18. 18. Types  of  Benefits   Hard   Benefits   Easily Quantifiable Profit + Revenue So^   Benefits   Hard to Quantify Customer Experience
  19. 19. How  to  communicate  value  to  leadership?     Show me the beef!! •  Cost avoidance (call deflection; number of calls deflected multiplied by cost of each call) •  Lead generation (new leads directly attributed to community) •  Improved lead close rates (activities in community that lead to sales closes) •  Customer feedback leading to better products & services (directly attributed to community discussions & comments) •  Higher levels of customer engagement that lead to greater satisfaction & loyalty (measurable events directly tied to community) 19  
  20. 20. Establishing  Metrics   1.  Be obsessive & detailed. 2.  Measure before establishing your community and measure at key intervals thereafter. START 3 mos. 6 mos. 1 year 3.  Gather & compile testimonials (e.g., success stories, instances where customers were helped, praises from community participants). 20  
  21. 21. What  to  measure?   1   2   3   4   5   6   •  Prospects  vs.  Customers   •  Organic  Search  Traffic   •  Lead  conversion/closure  rates   • Call  deflecDon  (before  &  aFer  metrics)   • IdeaDon  and  increased  flow  of  suggesDons   • Improved  customer  saDsfacDon  scores   Other Metrics à community growth, traffic, content growth, conversations/ discussions prevalence, first call resolution. 21  
  22. 22. The  Good  News!!   Cost Effective -- Software Platform -- Community Managers -- IT Support
  23. 23. ROI  Resources   •  “Best  PracDces  for  Measuring  the  Return  on   Investment  of  Online  CommuniDes.”      Oracle   CorporaDon,  2012.          www.oracle.com   •  “The  ROI  of  Owner  CommuniDes.”    Forrester   Research,  2013.          www.forrester.com   •  CompeDng  for  the  Future.      Gary  Hamel  &  C.K.   Prahalad.    Harvard  Business  School  Press,  1994.  
  24. 24. Panelists Contact Information Vanessa  DiMauro   CEO  &  Managing  Partner   LEADER  NETWORKS   vdimauro@leadernetworks.com   www.leadernetworks.com   Robert  Miller   President  &  CEO   INTELLIQ  RESEARCH  &  STRATEGY   rmiller@intelliqresearch.com   www.intelliqresearch.com   Lisa  Sacquitne   Manager,  Non-­‐Integrated  Services   SPS  COMMERCE   lsacquitne@spscommerce.com   www.spscommerce.com   Jessica  McDouall   Manager,  Non-­‐Integrated   Services   SPS  COMMERCE   jmcdouall@spscommerce.com   www.spscommerce.com  
  25. 25. Thank you for attending our webinar! Contact us! Call (877) 339-3997 or visit us online www.getsatisfaction.com

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