How to Maximize Your Overall Return on Social Media Investment A recent R2integrated study shows that of companies who had profited or increased revenues from social media were about 2x as likely to have a formal strategy, and almost 2x as likely to have a dedicated headcount for managing social media. Learn how to approach, develop and execute social media strategies and tips to maximize your overall social media ROI. * Ken Chow, VP of Marketing, R2integrated

1. How to MaximizeYour Overall Return onSocial Media Investment Or How I Learned to Stop Worryingand Love Facebook

2. Agenda Survey says...! The Gulf Between Winners and Losers Four Steps to Recovery Start With Buying Behavior Develop a Framework Adapt Your Organization Case Study: Precision Tune Auto copyright r2integrated, LLC 2009 – confidential and proprietary

3. Social Media Survey Header Subtitle copyright r2integrated, LLC 2009 – confidential and proprietary

13. Summary of Opinions A lot of us think we can do without it Only about half of us have an actual strategy A lot of us think we’re “proficient” or “expert” A lot of us don’t know why we’re doing this Most of us don’t follow the leaders Most of us aren’t making any money copyright r2integrated, LLC 2009 – confidential and proprietary

14. The Gulf BetweenWinners and Losers What separates those who profitfrom those who don’t? copyright r2integrated, LLC 2009 – confidential and proprietary

22. Social Media Death Spiral copyright r2integrated, LLC 2009 – confidential and proprietary Lack of Understanding Wrong Approach Failure toInvest UnworkablePrograms IncorrectMetrics Inability toMeasure Lack ofResults

23. Coming to Grips The 5 Stages ofTechnology Introduction: Denial Anger Bargaining Depression Acceptance

24. Coming to Grips The 5 Stages ofTechnology Introduction: Skepticism

25. Coming to Grips The 5 Stages ofTechnology Introduction: Skepticism Experimentation

26. Coming to Grips The 5 Stages ofTechnology Introduction: Skepticism Experimentation Disappointment

27. Coming to Grips The 5 Stages ofTechnology Introduction: Skepticism Experimentation Disappointment Practice

28. Coming to Grips The 5 Stages ofTechnology Introduction: Skepticism Experimentation Disappointment Practice Adoption

29. Four Steps to a Good Start How the winners got there… copyright r2integrated, LLC 2009 – confidential and proprietary

30. Four Steps to a Good Start Understand the Medium Strategy Begins with Customer Behavior Then Develop a Framework Adapt Your Organization copyright r2integrated, LLC 2009 – confidential and proprietary

31. Understand the Medium The Nature of the Relationship Search and social have shifted the balance of power to the customer. You have to treat the Web’s as a buying engine, not a distribution platform. The job is to intersect buying behavior with key content and interaction. copyright r2integrated, LLC 2009 – confidential and proprietary

32. 6 Quick Truths… The consumer is in control Content and peer advice now drive decisions Self-organized communities Old media hierarchy subverted Brands must engage consumers directly Sharing is the X factor

33. The Two Types of Social Networks We seek to reduce risk and gain rewards… Technical Networks Commonality: occupation, interest, or technical skill Seeking/Giving: technical data, or specific job-related information Sharing Motivation: inclusion, status, reputation, reciprocity Trust and Admiration Networks Commonality: personal affiliation (friends, associates) Seeking/Giving: personal views and status, advice on decisions and purchases Sharing Motivation: ego (recognition, admiration, and trust) copyright r2integrated, LLC 2010 – confidential and proprietary

34. Technical Networks copyright r2integrated, LLC 2009 – confidential and proprietary

35. Trust and Admiration Networks copyright r2integrated, LLC 2009 – confidential and proprietary

36. Understand the Medium Sharing Is The Key The real promise of scalability happens through sharing, which people primarily do for reasons related to ego. If you can tap into this behavior, social media can be exploited as a non-efficient system. copyright r2integrated, LLC 2009 – confidential and proprietary

37. Sharing Motivation People share things that meetone or more of these basic criteria: Transactional Value – “I’m generous” Entertainment – “I’m fun” Information Useful for Daily Life – “I’m smart” copyright r2integrated, LLC 2010 – confidential and proprietary

38. Transactional Value copyright r2integrated, LLC 2009 – confidential and proprietary “I am generous.”

39. Transactional Value copyright r2integrated, LLC 2009 – confidential and proprietary “I am fun.” (“And I have a lot of spare time”)

40. Transactional Value copyright r2integrated, LLC 2009 – confidential and proprietary “I am smart.”

41. Social Bridging The Goal:Changing opinions and buying decisionsthrough the sharing of contentby others who accept your value proposition Making “advocates” copyright r2integrated, LLC 2009 – confidential and proprietary

42. Social Bridging The Method:Use social media not as a broadcast medium, but as a place to identify, empower, and reproduce advocates copyright r2integrated, LLC 2009 – confidential and proprietary

43. Social Bridging The Mission:To locate likely advocates,arm them with valuable content,and ensure sharing mechanisms are in place copyright r2integrated, LLC 2009 – confidential and proprietary This is not a “one and done” proposition, advocates represent an ongoing relationship that must be actively maintained.

44. Social Bridging copyright r2integrated, LLC 2009 – confidential and proprietary Identify – Empower –

45. Strategy Starts withCustomer Behavior If you don’t get this right, nothing else matters… copyright r2integrated, LLC 2009 – confidential and proprietary

46. Behavioral Model A framework for categorizing the various reasons people buy your products and the ways they buy them These might be discreet segments, or might represent a continuum of behaviors through which customers evolve copyright r2integrated, LLC 2009 – confidential and proprietary

49. Comparing vendors

51. Seeks to validate claims

53. Testing user acceptance

56. Highest-level of buy-inBehaviorCharacteristics

57. Behavioral Model copyright r2integrated, LLC 2009 – confidential and proprietary A B2C Software Company… X

58. Behavioral Model copyright r2integrated, LLC 2009 – confidential and proprietary A National Restaurant Chain…

59. Creating A Framework copyright r2integrated, LLC 2009 – confidential and proprietary

61. Needs/Wants

62. Influencers

63. Products

64. Basedon Behavior

65. Framework for managing influencers

66. Intersecting behavior with messages at the right place and time

67. Programs and campaigns

68. Infrastructure

69. Engaging contentcopyright r2integrated, LLC 2010 – confidential and proprietary

70. Buying Behavior Motivation Whose Problem is It? Aspirin or Vitamin? Risk/Reward Needs/Wants Form/Function Price Decision Making Influencers vs. DMs Evidence/Information References Peer Advice copyright r2integrated, LLC 2009 – confidential and proprietary Where are these communities? How do they operate? How do you intersect?

71. Content Generation Which Audience? Technical/Non-technical Match the Motivation Does it affect their “In Box”? Shareable Value Transactional Entertaining Useful Information copyright r2integrated, LLC 2009 – confidential and proprietary Ask yourself, and ask key customers: “Would you share this?” “Why?” Be honest…

72. Sharing Systems and Technologies E-mail The Original Social Network Embedded sharing mechanisms (e.g. influencer widgets) copyright r2integrated, LLC 2009 – confidential and proprietary

73. Sharing Systems and Technologies Social Media: Inherent Mechanism( e.g. Facebook) Adjunctive Mechanisms(e.g. Facebook Connect API) Share This Ad Buys copyright r2integrated, LLC 2009 – confidential and proprietary

74. copyright r2integrated, LLC 2009 – confidential and proprietary Sharing Systems and Technologies Other Community Environments: Company Micro-sites 3rd Party Promotion Sharing Sites (e.g. coupon sites) Partners

75. Adapting Your Organization Platforms, Content, Skill Sets

76. Platform and Technologies Brands used to rent the publishing platforms the used, now they must own or control them outright… Content Management Content Syndication Community Building Tools Mobile Applications Rich MediaTools Platform Layer

77. Vendors Content must match the mission… Strategy Creative Development Management Engagement Layer Content Management Content Syndication Community Building Tools Mobile Applications Rich MediaTools Platform Layer

78. Internal Skill Sets As must your own talent pool… Content Author Community Manager Technical Support Skill Sets Layer Strategy Creative Development Management Engagement Layer Content Management Content Syndication Community Building Tools Mobile Applications Rich MediaTools Platform Layer

79. Content Author Community Manager Technical Support Skill Sets Layer Strategy Creative Development Management Engagement Layer Content Management Content Syndication Community Building Tools Mobile Applications Rich MediaTools Platform Layer Adapting the Organization

80. Consequences…

81. Case Study:Precision Tune Auto Care copyright r2integrated, LLC 2009 – confidential and proprietary

83. Needs/Wants

84. Influencers

85. Products

86. Basedon Behavior

87. Framework for managing influencers

88. Intersecting behavior with messages at the right place and time

89. Programs and campaigns

90. Infrastructure

91. Engaging contentcopyright r2integrated, LLC 2010 – confidential and proprietary

92. Tactics Leveraging Existing Investments Customer Behavior Strategy Tools & Content MyCarPage Email Acquisition Pay Per Click TV Commercials Local Search SEO Website & Micro sites Off-page SEO YellowPages.com CitySearch.com Media Buys Radio Commercials copyright r2integrated, LLC 2010 – confidential and proprietary

93. Tactics Leveraging Existing Investments Customer Behavior Strategy Tools & Content MyCarPage Email Acquisition Pay Per Click TV Commercials By overlaying a social framework, it integrates with and amplifies the companies existing assets and investments… Local Search SEO Website & Micro sites Off-page SEO YellowPages.com CitySearch.com Media Buys Radio Commercials copyright r2integrated, LLC 2010 – confidential and proprietary

94. Creating Effective Social Programs Tactics Customer Behavior Strategy Tools & Content copyright r2integrated, LLC 2010 – confidential and proprietary

97. Give them a reason to interact more often

98. Use engaging primary offers targeted at social relationships and key demographics

99. Make it easier for them to share positive experiences, and promotionscopyright r2integrated, LLC 2010 – confidential and proprietary

101. Develop widget to deliver content to the desktop

102. Grow the community of “reminded” and “proactive” buyers

104. Embed sharing technology to multiply reach and accelerate distributioncopyright r2integrated, LLC 2010 – confidential and proprietary

107. Fun (popular culture, quizzes, games)

108. Daily life (alerts, tips, reminders, facts)copyright r2integrated, LLC 2010 – confidential and proprietary

109. Tactics A Complete Framework Customer Behavior Strategy Tools & Content MyCarPage Email Acquisition Drive “Reminded” and “Proactive” buyers through community building programs. Drive “Reactive” buyers by growing size and loyalty of “Reminded” and “Proactive” and by facilitating social search Pay Per Click TV Commercials Local Search SEO Website & Micro sites Off-page SEO YellowPages.com CitySearch.com Media Buys Radio Commercials Community Hub (FB) Re-purposed Content Social Media Buys Shareable email New Social Content copyright r2integrated, LLC 2010 – confidential and proprietary

110. Tactical Overview Facebook portal delivers valuable content, builds loyalty Facebook Sharing allows members to recruit others through social “bridging”. Facebook Connectwith a micro-site or landing page amplifies it. Œ Sharing extends reach and drives acquisition of base. Promotion drives base to Facebook 300K+ email base Ž Join Join Acquire  Social Media buysdrive other outsidemembers to join  Email with engaging primary offer and sharing mechanisms. Size and loyalty of community drives more “Reminded” and “Proactive” transactions  ‘ copyright r2integrated, LLC 2010 – confidential and proprietary

111. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary

112. Sample Campaign Elements Note – During our research on the Precision Tune MyCarPage, it was discovered that in 2007, MyCarPage partnered with AskPatty, a leading social network auto advice for women, to launch their own MyCarPage service on their site. AskPatty is a very active community, with tens of thousands of members and over 9,000 Twitter followers … copyright r2integrated, LLC 2010 – confidential and proprietary

113. Sample Campaign Elements FacebookMedia Buy Email Coupon copyright r2integrated, LLC 2010 – confidential and proprietary

114. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary The social hub ties together the promotional campaigns to all of the other loyalty-building content and interactions that builds communities…

115. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary Popular culture…

116. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary Valuable information for daily life…

117. Sample Campaign Elements FacebookMedia Buy Email Coupon copyright r2integrated, LLC 2010 – confidential and proprietary

118. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary

119. Sample Campaign Elements FacebookMedia Buy Email Coupon copyright r2integrated, LLC 2010 – confidential and proprietary

120. Sample Campaign Elements copyright r2integrated, LLC 2010 – confidential and proprietary