SXSW 2011 - The Crisis of Trust in a Social Age: Issues and Opportunities

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Presented by Guy Gould-Davies & Kevin MacLean at the 2011 SXSW Interactive Festival.

Read the live blog of the session here: http://ideaengineers.sapient.com/strategy/sxsw-the-crisis-of-trust-in-a-social-age/

Published in: Business, Technology

SXSW 2011 - The Crisis of Trust in a Social Age: Issues and Opportunities

  1. The Crisis<br />ofTRUST<br />in a<br />Social Age<br />03.12.11<br />
  2. It is safe?<br />Watch this clip from the movie “Marathon Man” (1976)<br />
  3. SOCIAL MEDIA CONTINUES ITS METEORIC RISE<br />41%<br />23%<br />ALL INTERNET TIME SPENT ON SNS<br />YAG<br />248 MM<br />48%<br />UNIQUE MONTHLY VISITORS TO TOP 8 SNS SITES<br />YAG<br />61%<br />50%<br />INTERNET USERS WITH AN SNS PROFILE<br />YAG<br />Source: Nielsen NetView - June 2009-June 2010<br />
  4. CONSUMER DECISION MAKING IS BECOMING INCREASINGLY SOCIAL<br />“Do I look good? I really love this dress. I don’t think pictures do it justice.”<br />84<br />I LIKE IT<br />I HATE IT<br />%<br />LIKE IT<br />Photo Credit: Kris Krüg<br />
  5. TRUST IN THE PEOPLE WE KNOW HAS ERODED<br />CREDIBILITY OF INFORMATION SOURCES ABOUT COMPANIES<br />2008<br />2010<br />TV NEWS<br />RADIO NEWS<br />NEWSPAPERS<br />FRIENDS/PEERS<br />0%<br />10%<br />20%<br />30%<br />40%<br />50%<br />Source: Edelman Trust Barometer, 2010<br />
  6. AND WE REQUIRE MORE PROOF<br />60% OF PEOPLE REPORT NEEDING TO HEAR SOMETHING ABOUT A SPECIFIC COMPANY 3-5X TO BELIEVE IT IS TRUE<br />Source: Edelman Trust Barometer, 2010<br />
  7. 40%<br />18%<br />41%<br />UNSURE ABOUT THE NUMBER OF OPINIONS BUT IT’S GETTING HARDER TO TELL<br />TRUST AND SOCIAL MEDIA OPINIONS ONLINE<br />MORE OPINIONS AND TRUST MORE<br />MORE OPINIONS AND TRUST LESS<br />Source: Sapient Global Trust Survey March 2011<br />
  8. THREE POSSIBILITIES<br />ROCK THE VOTE!<br />TWEET 1, 2 OR 3 TO #quest4trust NOW<br />NOT A PROBLEM:<br />1<br /><ul><li>TRUST IS NOT AS IMPORTANT AS IT USED TO BE</li></ul>MAYBE A PROBLEM<br />2<br /><ul><li>IT’S TOO EARLY TO TELL</li></ul>YES, IT’S A PROBLEM:<br />3<br /><ul><li>TRUST HAS ERODED - QUESTION IS WHY & WHAT TO DO</li></li></ul><li>CONFIDENCE IN THE FUTURE IN RELATION<br />TO SOMETHING OF VALUE<br />WHAT IS TRUST?<br />
  9. TO COMMUNE.<br />TO LIVE.<br />TO PROTECT WHAT’S <br />VALUABLE.<br />WHY DOES TRUST EXIST?<br />
  10. RISK SHAPES TRUST<br />SELF-ACTUALIZATION:<br />achieving one’s full potential including creative activities<br />SELF-FULFILLMENT NEEDS<br />ESTEEM NEEDS:<br />prestige and feeling of accomplishment<br />PSYCHOLOGICAL NEEDS<br />BELONGINGNESS AND LOVE NEEDS:<br />intimate relationships, friends<br />SAFETY NEEDS:<br />security, safety<br />BASIC NEEDS<br />PHYSIOLOGICAL NEEDS:<br />food, water, warmth, rest<br />Source: A Theory of Human Motivation, 1943 - A. Maslow <br />
  11. THE MOB RULES<br />
  12. TRUST IS AN AGGREGATE<br />COMPANY<br />CONSUMER<br />EXPECTATIONS<br />CONNECTION<br />BRAND<br />PRODUCT<br />PLACE<br />SERVICE<br />PRICE<br />PROMOTION<br />REPUTATION<br />BELIEFS<br />PR<br />ADVERTISING<br />FRIENDS<br />SOCIAL MEDIA<br />EMOTIONAL<br />RATIONAL<br />ASSOCIATIONS<br />PSYCHOLOGICAL<br />PHYSICAL<br />EXPERIENCE<br />SHOPPING<br />CONSUMPTION<br />
  13. HOW TRUST WORKS<br />TRUST<br />OWNERSHIP /<br />EXPERIENCE<br />EXPECTATION<br />PUT IN<br />GET OUT<br />$$$<br />PHYSICAL<br />PSYCHIC<br />RATIONAL<br />EMOTIONAL<br />
  14. IT FRAMES THE VALUE PROPOSITION<br /> VALUE =<br />BENEFITS<br />COSTS<br />VS.<br />PUT IN<br />GET OUT<br />TRUST<br />
  15. ‘FUTURE PROOF’ IS A TRUST PLAY<br /> VALUE =<br />COSTS<br />BENEFITS<br />VS.<br />GET OUT<br />PUT IN<br />TRUST<br />
  16. TRUST IS<br />FEELING GOOD.<br />Photo Credits: Heinrich Klaffs<br />
  17. AN ECONOMIC GALE OF DARWINIAN PROPORTIONS<br />WW II ENDS<br />MID 1980s<br />2008<br />ERA OF INDULGENCE<br />ERA OF CONSEQUENCES<br />ERA OF READINESS<br />RISK ABRUPTLY RETURNS UNEXPECTEDLY CREATING UNCERTAINTY,<br />REASSESSING EXTERNALITIES<br />RISK THOUGHT TO BE MANAGEABLE WITH HIGH-TECH MACRO-ECONOMIC TOOLS.<br />INDULGING RISK<br />ECONOMIC RISK EVER-PRESENT DESPITE BEST EFFORTS TO MANAGE IT.<br />STANDING ON GUARD.<br />Source: A Darwinian Gale - The Futures Group 2010<br />
  18. WELCOME TO <br />THE ERA OF CONSEQUENCES<br />“The new consumer psychology on the rise around the world is one of networks and prioritization, of explicitly pricing in consequences and of giving more than lip service to being resourceful and and vigilant to downside risks This is the global zeitgeist now aborning.”<br />Source: A Darwinian Gale - The Futures Group 2010<br />
  19. OTHER MACRO FORCES ADD TO THE ‘CONSEQUENCE’ UNDERCURRENT <br />ECONOMIC<br />CONSUMPTION<br /><ul><li>LAID OFF OR WORK SCALED BACK
  20. HOMES WORTH LESS THAN DEBT
  21. RETIREMENT FUNDS DECIMATED
  22. ECOLI IN FOOD SUPPLY
  23. TOXIC DOG FOOD
  24. LED PAINT IN TOYS
  25. OBESITY</li></ul>ENVIRONMENT<br />INSTITUTIONS<br /><ul><li>SEVERE WEATHER AND DAMAGE
  26. BIRD FLU, SWINE FLU
  27. GLOBAL WARMING
  28. 9/11
  29. MORTGAGE COLLAPSE
  30. INVESTMENT MELTDOWN
  31. AUTO INDUSTRY BAILOUTS</li></li></ul><li>EFFECTS ON CONSUMER BEHAVIOR<br />The decision calculus of consumer choice will be different. The process of arriving at decisions will be different, even when the outcomes are the same.<br />Consumers are redefining what value means to them.<br />Source: A Darwinian Gale - The Futures Group 2010<br />
  32. HAS EVOLVED THE VALUE PROPOSITION<br /> VALUE =<br />BENEFITS<br />COSTS<br />VS.<br />PUT IN<br />GET OUT<br />TRUST<br />
  33. HAS EVOLVED THE VALUE PROPOSITION<br />PUT IN<br />TAKEN<br />AWAY<br /> VALUE =<br />BENEFITS<br />COSTS<br />VS.<br />GET OUT<br />TRUST<br />HOW IT’S MADE<br />INGREDIENTS<br />PROCESSING<br />FOOTPRINT<br />
  34. SOCIAL MEDIA HAS A CHARACTER ISSUE<br />
  35. SKEWED CONTRIBUTIONS<br />NEGATIVE<br />POSITIVE<br />MOTIVATION / VOLUME OF COMMENTS<br />NEUTRAL<br />SENTIMENT CHARACTER<br />
  36. OPAQUE INTEGRITY<br />NEGATIVE<br />POSITIVE<br />MOTIVATION / VOLUME OF COMMENTS<br />NEUTRAL<br />SENTIMENT CHARACTER<br />
  37. TALK <br />IS<br />CHEAP<br />
  38. REFERRAL MODERATED BY REPUTATIONALRISK<br />
  39. TRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFIC<br />SOURCE FAMILIARITY<br />AGGREGATE CONSENSUS<br />OPINION ORIGIN<br />EXPERTISE<br />INDEPENDENCE<br />Source: Sapient Global Trust Survey March 2011<br />
  40. TRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFIC<br />SOMEONE YOU KNOW?<br />SOMEONE YOU DON’T KNOW<br />SOURCE FAMILIARITY<br />VS<br />AGGREGATE CONSENSUS<br />OPINION ORIGIN<br />EXPERTISE<br />INDEPENDENCE<br />Source: Sapient Global Trust Survey March 2011<br />
  41. TRUST IN SOCIAL MEDIA OPINIONS: MANY DRIVERS, CONTEXT SPECIFIC<br />SOMEONE YOU KNOW?<br />SOMEONE YOU DON’T KNOW<br />SOURCE FAMILIARITY<br />VS<br />AGGREGATE CONSENSUS<br />OPINION ORIGIN<br />EXPERIENCE?<br />WHAT SOMEONE HAS SEEN OR HEARD?<br />VS<br />EXPERTISE<br />INDEPENDENCE<br />Source: Sapient Global Trust Survey March 2011<br />
  42. WHICH RECOMMENDATION DO YOU TRUST MOST WHEN CHOOSING A HOTEL IN A NEW CITY?<br />71<br />29<br />%<br />%<br />CLOSEST FRIENDS OR FAMILY BASED ON WHAT THEY’VE HEARD <br />A HIGH SCHOOL FRIEND ON FACEBOOK YOU HAVEN’T SEEN IN A WHILE, WHO’S STAYED THERE <br />Source: Sapient Global Trust Survey March 2011<br />
  43. SALIENCE IS SHAPED BY A CONTEXT THAT’S UNCLEAR<br />41<br />PEOPLE WHO <br />UNDERSTAND <br />ME<br />EXPERT/<br />AUTHORITY<br />%<br />UNDERSTANDING<br />PEOPLE <br />LIKE ME<br />IT’S GETTING HARDER TO TELL WHICH OPINIONS ARE RELIABLE AND WHICH ONES AREN’T.<br />WHAT LOTS<br />OF PEOPLE<br /> LIKE<br />PEOPLE<br />I LIKE<br />FAMILIARITY<br />Source: Sapient Global Trust Survey March 2011<br />
  44. BRAND BEHAVIOR IN THE AGE OF PRISMATIC DISTORTION<br />
  45. OLD PARADIGM<br />
  46. NEWPARADIGM<br />
  47. BRAND RESIDUE<br />
  48. CUMULATIVE EFFECT?<br />TRUST OR MISTRUST…<br />WHY NOT AFFINITY / LACK THEREOF?<br />RESONANCE / DEAFNESS?<br />LOVE / HATE / INDIFFERENCE?<br />TRUST IS THE PRIME<br />
  49. WHAT TO DO?<br />
  50. GEAR UP BRAND COWBOYS(AND EMBRACE THE UNCERTAINTY)<br />
  51. SPEND LESS ON SUPERBOWL ADS<br />MORE ON SUPERBAD SUPPORT<br />AND<br /><ul><li>BEHAVIOR VS WORDS
  52. DISINTERMEDIATION VS INTERMEDIATION
  53. USERS VS SPECULATORS
  54. OVER TIME VS POINT </li></li></ul><li>BEHAVIOR WORDS<br />VS<br />
  55. DISINTERMEDIATION <br />INTERMEDIATION<br />AND<br />( ARE THE CROWDS REALLY ALL THAT WISE? )<br />
  56. TAKE ONE-TO-ONE TO THE NEXT LEVEL(“DIRECT RESPONSE” TO “DIRECT FEEDBACK”)<br />
  57. WHERE’S THE TWITTER ENTERPRISE DASHBOARD?<br />
  58. USERS SPECULATORS<br />VS<br />
  59. OVER TIME POINT IN TIME<br />VS<br />LIFETIME CUSTOMER CONVERSATIONS INCREASE LIFETIME CUSTOMER VALUE<br />
  60. OWNERSHIP / EXPERIENCE BASED SATISFACTION <br /><ul><li>ONLINE REVIEWS AND BRAND FEEDBACK FIXED IN TIME‘YOU RECENTLY PURCHASED / USED / VISITED’
  61. FEEDBACK HAS TO BE DIRECTLY SOLICITED AND INCENTED OVER LIFETIME OF RELATIONSHIP‘HOW DO YOU FEEL NOW?’</li></li></ul><li>People are finding social media opinion less reliableTrust depends on a interrelationship of contextual factors which determine content’s value<br />Marketers have an opportunity to forge a true one-to-one connection to build lasting value and earn trust<br />
  62. CHEERS!<br />#quest4trust<br />#kmacwithcheese<br />

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