How to Become a Social Business

How To Integrate Social Media Into The Marketing Mix How To Become A Social Business? Michael Brenner Sr. Director, Integrated Marketing November 2011 @BrennerMichael

What is Marketing? “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself… … The aim of marketing is to make selling superfluous.” ~ Peter F. Drucker “Marketing is too important to be left to the marketing department.” ~ David Packard © 2011 SAP AG. All rights reserved. Confidential 4

Marketing is Hard! Your Marketing Sucks • Consumers are bombarded with over 2,000 marketing messages per day • More than 200 Million Americans have joined the U.S. “Do Not Call” list • 86% of people skip television ads • 44% of direct mail is never opened • 99.9% of banner ads do not receive clicks • 90% of emails are never opened and 99.5% don’t produce even a single click. • Buyers wait until they have completed 60% to 80% of their research before reaching out to vendors. © 2011 SAP AG. All rights reserved. Confidential 5

Everything is Online Business is Personal “Buyers don’t want to be an object of a sale . . . . . . but rather the subject of an experience. “ ~Paul Greenberg © 2011 SAP AG. All rights reserved. Confidential 9

YOU Are the Future of Marketing Forrester CMO Mandate: Adapt or Perish: “Three out of four CMOs plan to revamp their organizations for the digital age by the end of 2011. The reason? Their initial efforts to create digital departments and outsource digital capabilities have left their organization in a state of disarray. . . To truly transform the marketing department into a more agile and innovative organization, CMOs must adopt these habits: 1) Accept change 2) Dare the status quo 3) Act continuously 4) Participate personally 5) Tear down boundaries Leaders of Adaptive Marketing organizations will grow their business faster, build stronger brands, and create a competitive advantage in both the short term and the long term.” © 2011 SAP AG. All rights reserved. Confidential 10

Business Has Become More Personal Or Maybe Not So Socially Savvy? Connor Riley ”Cisco just offered me a job. Now I have to weigh the utility of a fatty paycheck against the daily commute to San Jose and hating the work” © 2011 SAP AG. All rights reserved. Confidential 11

“Social Networks have existed for as long as we have.” ~ Paul Adams, Google: The Real Life Social Network

~ Paul Adams, Google: The Real Life Social Network

“Social networking is a means to an end. You need to understand what the end is.” ~ Paul Adams, Google: The Real Life Social Network

The Scream explained by Paul Wineguy

The Power of Social Media: They Find You  57% of businesses have acquired a customer through their blog  41% of B2B companies have acquired a customer through Facebook  Company websites with a blog get 55% more visitors  Inbound marketing leads cost 62% less than outbound Center for Marketing Research at the University of Massachusetts © 2011 SAP AG. All rights reserved. Confidential 16

The Goal: Sales. Experience. Equity. “ What are the best CRM products “ Check out OnDemand solutions” for a law firm?” “Web visitors from social sites convert at 59% higher rates to sales” ~ MarketingSherpa Search Marketing Benchmark Survey © 2011 SAP AG. All rights reserved. Confidential 17

Most Marketers Are (Still) Behind “A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies…Markets are Conversations” ~ Levine, Locke, Searls and Weinberger in The Cluetrain Manifesto Center for Marketing Research at the University of Massachusetts © 2011 SAP AG. All rights reserved. Confidential 18

Social Media As A Platform For Change “Conventional marketing wisdom long held that a dissatisfied customer tells ten people. But…in the new age of social media, he or she has the tools to tell ten million.” ~ Paul Gillin, author of The New Influencers © 2011 SAP AG. All rights reserved. Confidential 19

Social Networking Changing The Dynamics Of Business SALES Social isn’t just a new way of Social COMMS Social Selling HR Marketing… Social Public Recruiting Relations It’s a new way of CHANNEL BUYING Doing Business Social Social Ecosystem Procurement It’s a new way of MKTG Social COO Social Customer Working Marketing Service We need to stop interrupting what people are interested in and be what people are interested in. ~ Craig Davis, former CCO J Walter Thompson © 2011 SAP AG. All rights reserved. Confidential 20

What is a Social Business? (IBM) “As the world becomes more instrumented, interconnected and intelligent and the population continues to embrace social computing, today’s enterprises face the dawn of a new era – the era of the Social Business. Just as the Internet changed the marketplace forever, the integration of social computing into enterprise design represents another enormous shift in the landscape. Organizations that successfully transform into a Social Business can potentially reap great benefits – among them the ability to deepen customer relationships, drive operational efficiencies and optimize the workforce.” Digital Engaged Deeper Customer Relationships Social Transparent Operational Efficiencies Mobile Nimble Optimized Workforce © 2011 SAP AG. All rights reserved. Confidential 21

Proof of a Social Business? Trend: Inbound Marketing Comes of Age SiriusPerspective: The reality is that prospects find you when they’re ready; effective digital and inbound marketing makes you easier to find. Primary Lead Source Analysis 100% 90% 80% 70% 55% 58% 71% 60% Web 50% Direct Mail 40% Email 19% Events 30% 21% 20% 11% 14% 9% 10% 6% 15% 12% 9% 0% 2009 2010 2015 © 2011 SAP AG. All rights reserved. Confidential 22

It‟s not about the technologies… It‟s about the relationships It’s Not About The Technology (or stock photo images)… It’s About the Relationships © 2011 SAP AG. All rights reserved. Confidential 24

8 Steps To Play The Social Game 1. Define Goals / Metrics 2. Find Your Buyers 3. Define Influences (-ers) 4. Map The Org. Model 5. Set up Your Channels 6. Content Strategy 7. Customer Engagement Model 8. Employee Enablement / Encouragement Plan “Throw Away The Rulebook” ~ Dana Anderson, SVP Marcom Kraft © 2011 SAP AG. All rights reserved. Confidential 25

Social Disasters Sept „04: June „05: Aug „05: Apr 06: Feb „07: Apr „08: Apr „09: July „09: June ‟10: Kryptonite L‟Oreal Dell Chevy Taco Bell Dove Domino‟s United BP © 2011 SAP AG. All rights reserved. Confidential 27

Social Media Triage Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Assess the Does customer Do you want Evaluate the need/deserve more to respond? message purpose info? No Yes Unhappy Yes Are the facts No Gently correct the Response Customer? correct? facts No Yes Can you add No Dedicated Yes Are the facts No value? Complainer? correct? No Yes Is the Explain what is being Respond in Thank the Comedian Yes problem done to correct the kind & share person Want-to-Be? being fixed? issue. No Yes This framework was built using the USAF Blog Triage. Let post stand and monitor. © 2011 SAP AG. All rights reserved. Confidential 28

5 Steps to Executive Buy-in 1. Show Them The World Has Changed 2. Show Them The Money 3. Answer The Hard Questions 4. Present a Strategy 5. Get Them Involved © 2011 SAP AG. All rights reserved. Confidential 29

8 (Random) Closing Thoughts We live in a mobile-enabled, socially connected, real-time world. Where we all have entrusted our friends, photos, music and resumes to the cloud. Businesses cannot respond fast enough. The goal of the digital marketer is to drive employee-enabled real-time social business. Audience-first in everything! Provide policy but not too much governance Disclosure and crisis response is important Reward positive behavior publicly Promote the expression of your diversity Be Human and encourage real story telling © 2011 SAP AG. All rights reserved. Confidential 30

Thank You! More charts in the appendix… Email: michael.brenner@sap.com Marketing Blog: B2BMarketingInsider.com Social News Site: Business2Community.com Twitter: @brennermichael © 2011 SAP AG. All rights reserved. Confidential 31

SAP Social Media Guidelines for Employees Identify yourself Be Honest Be Respectful Separate Opinions from Facts Add Value Be Engaged and Be Informed Aim for Quality, not Quantity Don't Pick Fights Protect Your Privacy How to Handle Media Inquiries Legal Considerations Social Computing and Your Primary Role © 2011 SAP AG. All rights reserved. Confidential 32

Email Isn‟t Dead! #1 Method for sharing online content While many have hailed the death of email marketing, email remains one of the most effective marketing techniques primarily because it is still the primary way people share information. © 2011 SAP AG. All rights reserved. Confidential 36

“If you have more money than brains you should focus on outbound marketing. If you have more brains than money, you should focus on inbound marketing.” ~ Guy Kawasaki, author of Engage and Founder of Alltop “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself… The aim of marketing is to make selling superfluous.” ~ Peter Drucker © 2011 SAP AG. All rights reserved. Confidential 38

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