This document discusses how companies can build effective online customer communities to enhance their business. It begins by noting that many companies currently respond chaotically to social media rather than strategically building communities. The document then outlines how communities can deepen relationships, improve financial returns, shorten innovation cycles, and provide better customer service. Examples are provided of successful communities built by Palladium Group and LexisNexis that drove new revenues, products, and referrals. Key factors for community success include expert facilitation, a balance of content, and persistent outreach. The presentation concludes by aligning community objectives with corporate goals.

1. L E A D E R NETWORKS
Building B2B Online Communities
Vanessa DiMauro
CEO, Leader Networks
SNCR Board Member, Research Co-Chair
@ vdimauro
April 1, 2012
PRSA Conference
Copyright © 2012 Leader Networks, LLC 1

2. L E A D E R NETWORKS
Copyright © 2012 Leader Networks, LLC 2

3. L E A D E R NETWORKS
Many Companies Are Responding Chaotically
To The Social Chatter
Customer
Retention
Thought
Leadership
On-line Unstructured
Community Information
B2C
Twitter
Wiki Blog
B2B
Facebook
RSS
Web 2.0
LinkedIn
YouTube
Copyright © 2012 Leader Networks, LLC 3

4. L E A D E R NETWORKS
Which Can Result In Social Media Muddle
 Customer
Service monitors
Facebook, Twitter
 Marketing
etc. for angry
focuses on getting
customers Product fans & followers to
Groups view its marketing
 Customer Distribution
campaigns
Service resolves
customer issues
Product  Marketing
 Customer
Online Development doesn’t use
Sales &
community Facebook, Twitter,
Service doesn’t Channel
Partners etc. to transact
share issues with
internal
 Marketing
stakeholders
Customer doesn’t mine
Service interactions to
 Customer Marketing
identify new
Service doesn’t
customers or
pass on pleased
feedback
customers to Sales
or Marketing
Copyright © 2012 Leader Networks, LLC 4

5. L E A D E R NETWORKS
The Shift From Chaos To Focus
To move from a set of discrete interactions
to a dynamic and connected ecosystem of
influence relationships.
Copyright © 2012 Leader Networks, LLC 5

6. L E A D E R NETWORKS
Online Customer Communities Changes Business As
Usual… For The Better
Deepen client
relationships to
increase
retention
Deliver
improved Build greater
brand equity
financial returns
Social Capital
In-person + online
Extend accelerate
Provide better
product &
customer care
services delivery
Shorten product
innovation cycle
Copyright © 2012 Leader Networks, LLC 6

7. L E A D E R NETWORKS
Online Community’s Day Has Come!
Copyright © 2012 Leader Networks, LLC 7

8. L E A D E R NETWORKS
Fact
Nearly two-thirds (65%) of organizations
surveyed in 2010 are engaged in private
online communities hosted by the
companies that sell them computer
hardware, software and the services.
ITSMA 2010 report, How Customers Choose Solutions Providers, 2010: The New Buyer Paradox, by Julie
Schwartz, Katie Espinola and Olivier Nguyen Van Tan.
Copyright © 2012 Leader Networks, LLC
8

9. L E A D E R NETWORKS
Fact
49% of all B2B companies manage an
online community dedicated to customers
or prospects, and a third planned to create
a customer community in the near future.
Business.com Business Social Media Benchmarking Study (2009)
Copyright © 2012 Leader Networks, LLC
9

10. L E A D E R NETWORKS
Which Companies Need Online Customer Communities the Most?
Common Characteristics of the Early Community Builders
Customer
Customers problems
(which their products or services addresses)
• Willing to share information with • Critical, ongoing and ever-
other customers changing
• Have purchased a platform • Knowledge for solving problems
product and need to becomes obsolete quickly
communicate with each other
about how to capitalize on it • Customers gain major value by
learning from the experiences of
• Willing to participate in off-line other customers
user groups or in person
customer summits • Urgent need to share
experiences
Copyright © 2012 Leader Networks, LLC 10

11. L E A D E R NETWORKS
Three General Models For Community
Gated Public Hybrid
Select, narrow target Open call, all
interested Tiered membership
audience
Member directed Consensus/Trend driven
Acceptance criteria
Public forum Public forum w/ private area
Protected dialog
Big bang Thought leadership
Managed topical agenda
Ad generated support Hybrid Revenues
Sponsor supported
Initial purchase of a product / service, product / service upgrade (e.g. new functionality), new
application (e.g. increased footprint inside or outside of an operating / business unit) and
ongoing maintenance (very profitable and predictable).
Copyright © 2012 Leader Networks, LLC 11

12. L E A D E R NETWORKS
Improving the Way You Enhance Your Products/Services
The Case of Palladium Group’s Execution Premium Community
Community Fast Facts
Sponsoring Company: Palladium
Group (founders of the Balanced
Scorecard approach to corporate
measurement)
Audience: Senior strategy
professionals from organizations
worldwide
Size: More than 2,700 organizations
Launch date: April 2010
Won multiple awards including
SNCR Best Online Community
Copyright © 2012 Leader Networks, LLC 12

13. L E A D E R NETWORKS
About Palladium Group’s XPC
Case for • Help practitioners of the Balanced Scorecard share knowledge
Community • Increase customer intimacy
• Raise awareness of products and services
• Tap into leading trends in strategy execution
• Create a new revenue-generating service line
• More than 50% of the membership from non-US countries,
Results to deepening Palladium’s market reach
Date • Drives conference attendance, consulting projects and
publishing arm of Palladium
• Revenue-generating in first 6 months
• Over 15% of new members come from peer referrals
Copyright © 2012 Leader Networks, LLC 13

14. L E A D E R NETWORKS
Deepening Customer Intimacy and Enhancing Product Development
The Case of LexisNexis Investigators Network (LNIN)
Community Fast Facts
Sponsoring Company: LexisNexis
Audience: Federal, State and Local
Law Enforcement
Size: More than 7K registered
members
Launch date: April 2010
Won Forrester Groundswell Award
2011
Copyright © 2012 Leader Networks, LLC 14

15. L E A D E R NETWORKS
About the LNIN Community
• Appeal to federal, state and local law enforcement
Case for • Bridge the gap between law enforcement
Community
• Service clients better
• Add value to the customer’s purchase decision
• Maintain strong market position
• Over 4000 members in its first year, 1,700 agencies/ 50 states
Results to • Three new product enhancements implemented
date
• Law Enforcement trends and hot spots
• 1100+ members have made peer-to-peer connections
• Analysts from Gartner recommended that law enforcement
managers “leverage the at-large community for access to
more information”
Copyright © 2012 Leader Networks, LLC 15

16. L E A D E R NETWORKS
Three Operational Processes Communities
Needed To Succeed
Expert community facilitation
A healthy balance of Institutional
content (IC) and
user generated content (UGC)
Persistent and programmatic outreach
Copyright © 2012 Leader Networks, LLC 16

17. L E A D E R NETWORKS
Types Of Members And How To Activate Them
Fame Connectors Problem
seekers Solver
Key Characteristic Seeks opportunities Seeks opportunity to Reticent participant
to grow reputation be valued. but overcomes in
showcase thought Connect people with order to get answer
leadership each other and with to their questions
content
Motivators Public recognition Off-line and online Timely response &
appreciation appreciation Information
Validation thru forum Thought leadership
post post
Example Rewards Member spotlight Additional Offline supplemental
Bylined article responsibility as research or pointers
opportunity content curator or to content or people
Shout-out in people matcher who may help them
newsletter or in a
discussion
Copyright © 2012 Leader Networks, LLC 17

18. L E A D E R NETWORKS
People come for content
and stay
for community!
Copyright © 2012 Leader Networks, LLC 18

19. L E A D E R NETWORKS
Online Customer Communities Changes Business As
Enabling customers to
Usual… For The Better Enhancing the brand
easily share detailed because the online
information on how Deepen client community can’t be
they’re using their relationships to quickly duplicated by
offerings with one increase competitors – it takes
another, which retention time to build a vibrant
increases their value community
Extend accelerate
Build greater
product &
Providing a large brand equity
services delivery
and ongoing
customer
research panel
Social Capital
In-person + online
Lowering the cost of
customer service by
Deliver improved Provide better
Identifying nascent financial returns customer care having customers
customer needs solve each other’s
before competitors problems
recognize them – and
before customers Shorten product
have well-articulated innovation cycle
them
Copyright © 2012 Leader Networks, LLC 19

20. L E A D E R NETWORKS
Community Initiatives Should Be Aligned With
Business / Functional Unit And Corporate Objectives
Corporate Objectives
– Financial
– Customer
– Process
– Learning & Growth
Business / Functional Unit
Objectives
Community Initiative
(Business Case / ROI)
Current Target Outcome Delta / ROI
General Metrics
Site Metrics
Business Metrics
Copyright © 2012 Leader Networks, LLC 20

21. L E A D E R NETWORKS
Thank You!
For more information please contact me
Vanessa DiMauro
CEO, Leader Networks
617-484-0778
vdimauro@leadernetworks.com
Read the blog -> http://blog.leadernetworks.com
http://www.leadernetworks.com
Copyright © 2012 Leader Networks, LLC 21