Web 2.0 And The Rise Of Social Marketing

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Web 2.0 And The Rise Of Social Marketing

  1. 1. Web 2.0 and the Rise of Social Marketing Karen Orton VP, Enterprise Solutions
  2. 2. Agenda Web 2.0 and Social Driven Marketing  What is social?  Who are these people and what’s their  motivation?  How it is changing the rules?  The New Center of the Universe – your customer  Business results?  Tools and techniques  Examples  How to get started 
  3. 3. Lithium Technologies
  4. 4. Some of Lithium’s customers 4
  5. 5. Birth of Web 2.0 • Cultural shift from passive Web surfers to active  content creators who want to share • Surf (mid‐90s)   • Search  (2000 ‐ 2005)  • Subscribe/Publish (2006 on) • Shift from push marketing to mix of push/pull  • Increased number and two‐way customer dialogues • Easy, inexpensive technology to create/distribute  content • Google, Microsoft, Yahoo promoted use of Web 2.0
  6. 6. Trust Weighted Towards Peers Online & Offline. 6
  7. 7. Rise of Social Computing Source: Forrester Research
  8. 8. Online Word-of-Mouth – Most Powerful • 113 million Americans research products  online • Word‐of‐mouth valued as best source of  information • 93% vs. 67% in 1977 • Twice the value of advertising and editorial  content • Why it’s powerful • Too much information, too many  products • Global impact • Link sharing and search results extend  the power even more • Source:  RoperASW
  9. 9. What are they doing? Use of Web 2.0 Tools Source: Forrester North American Social Technographics Online Survey, July 2007
  10. 10. Do they behave the same? Types of Users Source: Forrester Research
  11. 11. What can it mean to you? •Lower cost to market and sell • Use customers to market and sell • Encourage self‐service or peer‐to‐peer inquiries • Get more sales from each visit and more visits • Ensure that every page cross‐sells or up‐sells • Solicit consumer‐generated content •Increase brand loyalty • Provide a personalized experience • Lower churn; increase lifetime value of customer • Increase sales from loyal customers • Increase customer satisfaction • Communicate regularly and get feedback • Respect customers’ TIME – they can shop 24x7
  12. 12. Questions to Consider – “think before starting” 1) Who are we selling to? 2) What are the best ways to reach our target audience? 3) How do consumers want to interact with our brands? 4) Does our target audience demand consumer‐led  marketing? 5) How can we break through the clutter? 6) How do we get consumers to talk about our products? 7) Does our target audience demand consumer‐controlled  media? 8) Is our target audience social networking driven? 9) Does our target audience demand consumer‐generated  content? 10) What are the global implications?
  13. 13. Engaging + Distributed by the Audience = Viral
  14. 14. Blogging – Direct Communication
  15. 15. Linkedin – Networking/Connecting Chuck Hester. A veteran of technology public relations going back to the days of print, Hester has become a disciple of the business networking service LinkedIn. He uses LinkedIn to organize meetings and group dinners during his frequent travels and to maintain a list of hundreds of business contacts. When he wants to meet someone, he often starts with LinkedIn Answers or a query to his network. The strategy has drawn media attention and made Hester a master connector in tech media. And that’s paying off for his employer, e-mail service firm iContact.
  16. 16. Facebook
  17. 17. Micro-blogging – Twitter
  18. 18. Customer Communities – Build your own? Social networking tool to provide customers with company and  customer‐generated information Benefits: Increases customer interaction touch points Builds brand loyalty and trust Increases customer value/lowers churn rate Increases frequency and length of visits Demand generation (WOM) Market research and product feedback Increases conversion rates Reduces pre‐sales costs and sales cycle Built with multiple technologies (forums, blogs, chat) Customers of communities generate two‐thirds of sales but account  for only one‐third of visitors  (Source:  2001 McKinsey‐Jupiter Media Metrix Study)
  19. 19. Engage & Measure: Different Views Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007) Matthew Lees, Patricia Seybold Group 19
  20. 20. Engage & Measure: Different Views Source: Measuring Success of Online Communities Customer Centric Approach to ROI (February 22, 2007) Matthew Lees, Patricia Seybold Group 20
  21. 21. A word about Reputation and Super Users Product teams  Support and  Marketing  Service  Tribal Knowledge Base Customer  Heroes 
  22. 22. myFICO
  23. 23. Symantec
  24. 24. Sage Software Community launched in January 2008 ‐ the results: 15 point increase in Customer Loyalty (as measured by SatMetrix Net Promoter score) Over 6.2 million page views, 90,000 forum logins in 7 months Customers listened to each other, and provided answers to questions that are simply best  answered by one another Many organizational and procedural changes have been made  Changed Contact Us page making it easier to find people & escalate issues. Re‐routed general query calls from sales to customer service 300% more feedback than ever before during Beta phase of product release
  25. 25. Future Shop Future Shop uses the REST API and created “Aaron” the video avatar that allows customers to ask questions of the community from the home page. Searches are performed against the community and two other knowledge bases
  26. 26. Communities for WOM and Demand Generation
  27. 27. Idea Generation
  28. 28. Community Benefits Key findings include: • 76% felt more positively about the company since  joining its community • 52% were more inclined to purchase the company's  products • 82% were more likely to recommend the company's  products • 75% felt more respect for the company • 63% trusted the company more  (Source:  2006 Communispace)
  29. 29. Integrating the Web 2.0 Marketing Mix Web 1.0 Marketing Mix Web 2.0 Marketing Mix Public relations/Investor Word-of-mouth/viral marketing relations Social networking Advertising  New Media advertising (Internet Direct marketing radio & TV, mobile) Trade shows/events Subscriptions/RSS/Tags/Alerts Sales promotions Podcasting/Videocasting Collateral/sales tools Wikis Inquiry handling/fulfillment Self-service search/FAQs Web site/Customer portals Communities/Forums SEO/web optimization Blogs Online advertising Wikis Email marketing Twitter/Chat/IM Webinars/webcasts Widgets
  30. 30. Web 2.0 Brand Identity •Consumer‐generated •More word‐of‐mouth channels Communities Forums Blogs Our YouTube Twitter Brand •Customer satisfaction is more  critical than ever Product Reviews
  31. 31. Benefits of a Social Media Strategy 1. Gain insight into the customer 2. Increase user engagement 3. Lead generation tools 4. Build brand visibility and loyalty 5. Promote products and services 6. Influence communities  7. Increase Web site traffic 8. Reduce service costs 9. Better for target marketing. 10. Innovate quicker, cheaper, and better Source: Forrester Research
  32. 32. “Right now, your customers are writing about your products on  blogs and recutting your commercials on YouTube. They’re  defining you on Wikipedia and ganging up on you in social  networking sites like Facebook. These are all elements of a social  phenomenon — the groundswell — that has created a  permanent, long‐lasting shift in the way the world works. Most  companies see it as a threat.” TIME TO JOIN THE GROUNDSWELL  
  33. 33. Resources Groundswell – By Charlene Li and  Josh Bernoff  WOMMA – word of mouth marketing association Jeremiah Owyang, Forrester, blog  “Web Strategy” Suzette Cavanaugh: Marketing consultant in enterprise  social media Teaches Web 2.0 Marketing at UCSC Extension  Email:  suzettecavanaugh@yahoo.com Blog: http://neomarketeer.blogspot.com/
  34. 34. Enjoy the Journey! Thank you Karen Orton  Karen.Orton@lithium.com 415 309 4987 
  35. 35. Social Networking
  36. 36. Lack of Trust in Traditional Media/Communication 36
  37. 37. Increased Purchasing Source: Big Online Spenders Embrace Social Technologies (February 15, 2008) Josh Bernoff, Forrester Research 37
  38. 38. Viral Marketing Uses pre‐existing social networks to produce increases in brand awareness or to achieve other objectives through self‐ replicating viral processes Facilitates and encourages people to pass along a marketing  message voluntarily It is claimed that a customer tells an average of three people  about a product or service he/she likes, and eleven people  about a product or service which he/she did not like Successful viral marketing programs identify individuals with  high Social Networking Potential (SNP) and create Viral  Messages that appeal to this segment of the population and  have a high probability of being passed along.
  39. 39. Impact on Marketing Printed brochures   Web brochures  Online FAQ/chat Print ads    Banner ads   SEO   RSS Feeds Direct mail   Email   Subscription Focus groups   Web research   Blogs Press release  Web conference   Online Word‐of‐Mouth
  40. 40. Business benefits Source: Social Computing (February 13, 2006) Charlene Li, Chris Charron, Forrester Research 40
  41. 41. Encouraging Evangelists [a.k.a. Fansumers] Already love your brand Persuade them to talk about your  product/service to their network They don’t need to be rewarded They already do it It makes them feel important They want to look good They don’t want to provide bad  information to friends/family Important to be upfront if you post on a  message board
  42. 42. Blogs as a Marketing Tool Promote thought leadership Identify, engage, reward high value customers Solicit user‐generated content Build traffic and time on site for more sales Customers feel like insiders; builds community Company speaks with an individual(s) voice Comment on news, push information out quickly,  introduce topics Key tactic to efficiently reach most devoted customers  and enthusiast market
  43. 43. Twitter – How to Apply to Business Micro blogging – means of staying in touch with friends and  family Place for breaking news  Set up discussion channel with peers and eco‐system Increase non‐paid traffic to website  Implementation:  Keywords Employees  Following others 
  44. 44. Social Networking What is it? • Tools for maintaining relationships  • Social, professional/business, special interest, brand networks • Generally more consumer, but B2B starting to use Types • Social networks:  Facebook.com, MySpace.com • Special interest networks:  Classmates Online, Xanga (blog‐based  community) • Brand specific networks:  customer communities built around a  product or service • Professional/business networks:  LinkedIn, Spoke Software,  Jigsaw, Plaxo • Non‐profit:  American Cancer Society’s Futuring and Innovation  Center  
  45. 45. Social Networking How to leverage for sales and marketing: • Communications – primarily user communities to solve problems, share best  practices • Tools available to track customer satisfaction • Difficult to use networks effectively for viral or word‐of‐mouth promotions  but can’t be commercial – there must be credibility • Reputation, market awareness, brand loyalty  • Demand generation:  Sales uses business sites (LinkedIn) to search for  people/titles you want to market/sell to; search for connections inside  targeted companies; research industries.  • NBC used MySpace to show clips of “The Office” to build buzz and get  reaction before it went on air. What to watch out for? Problems with privacy and safety
  46. 46. What about Community Engagement?

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