This document outlines four laws of social business according to Jeremiah Owyang of the Altimeter Group: 1. Don't focus on social media technologies but rather understand customers and their behaviors. 2. Ensure the company is ready for social media internally before launching external efforts. Only 20% is about technologies while 80% is internal preparation. 3. Treat customers holistically across departments rather than focusing on silos with the adoption of social customer relationship management (CRM) systems. 4. Real-time responses are not fast enough in today's social media environment.

1. Four Laws of Social BusinessJeremiah OwyangAltimeter GroupMay 20101SMASH SUMMITT

2. There are more than four.Laws can be broken, but not without consequences.Whether a buyer or seller, abide by these to prosper.The thing about the laws…2

3. Four Laws of Social Business3

4. Image taken by 0108dk used with Attribution as directed by Creative http://www.flickr.com/photos/0108dk/4181928709/1) Don’t Fondle the Hammer© 2010 Altimeter Group

5. Run when you hear “Twitter Strategy” or “Facebook Strategy” – it’s putting the cart before the horse.Instead, focus on how you’ll understand customers.Then choose a business objective.First, focus on customers5

6. Socialgraphics6DemographicGeographicPsychographicBehavioralSocialgraphic

7. Where are your customers online?What are your customers’ social behaviors online?What social information or people do your customers rely on?What is your customers’ social influence? Who trusts them?How do your customers use social technologies in the context of your products.Socialgraphics asks key questions7

8. Social Strategy Objectives8

9. Focus on building the house – not the hammer

10. 2) Live the 80% rule© 2010 Altimeter Group

11. Treat social success like launching a new product.80% of success is getting your company ready – only 20% is about the technologies. You can’t love your customers ‘till you love yourself first. Get your company ready11

12. Crisis response plan12

13. Social media triage13Take reasonable action to fix issue and let customer know action takenNegativePositiveYesYesNoAssess the messageEvaluate the purposeDo you want to respond?Does customer need/deserve more info?Unhappy Customer?No ResponseYesAre the facts correct?Gently correct the factsYesNoNoNoCan you add value?DedicatedComplainer?Are the facts correct?YesYesNoNoYesRespond in kind & shareThank the personComedian Want-to-Be?Explain what is being done to correct the issue.Is the problem being fixed?YesNoYesLet post stand and monitor.

14. One department controls all effortsConsistentMay not be as authentice.g. FordCentralized14

15. Organic growthAuthenticExperimentalNot coordinatede.g. SunOrganic15

16. One hub sets rules, best practices, proceduresBusiness units undertake own effortsSpreads widely around the orgTakes timee.g. Red CrossCoordinated16

17. Similar to Coordinated but across multiple brands and units e.g. HPMultiple hub and spoke or “Dandelion”17

18. Each employee is empoweredUnlike Organic, employees are organized.e.g. Dell, ZapposHolistic or “Honeycomb”18

19. Social strategist: Responsible for the overall program, including ROICommunity manager: Customer facing role trusted by customersRoles19

20. 3) Customers don’t care what department you’re in© 2010 Altimeter GroupUsed with creative commons http://www.flickr.com/photos/faikevin/3176938440/

22. 22Customer don’t care what department you’re in

23. Now, with social tools, every employee can talk to customers and prospects. Yet, this could create confusion with clients. New systems will be needed to centralize data so customers have a holistic experience. Customers deserve a holistic approach23

24. Connects the Social Web with existing CRM SystemsEnables Brands to better manage relationshipsCatch leads in real timeAllow for better account managementAnticipate customer needsSocial CRM helps companies catch up24

25. The 18 Use Cases of Social CRM1. Social Customer Insights: The 5M’sMarketingSalesService & SupportInnovationCollaborationCustomerExperience2. Social Marketing Insights6. Social Sales Insights9. Social Support Insights12. Innovations Insights14. Collaboration Insights17. Seamless Customer Experience3. Rapid Social Marketing Response7. Rapid Social Sales Response10. Rapid Social Response13.Crowdsourced R&D15. Enterprise Collaboration18. VIP Experience4. Social Campaign Tracking8.Proactive Social Lead Generation11. Peer-to-Peer Unpaid Armies16. ExtendedCollaboration5. Social Event Management© 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

26. Not All 18 Social CRM Use Cases are Market Ready© 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

27. Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/4) Real time is *not* fast enough© 2010 Altimeter Group

28. Evolution of the web28

29. 29Real time is not fast enough

30. Microsoft’s MVPs empowers community

31. Walmart’s 11 Moms gives consumers a voice

32. The Four Laws Of Social Business32

33. How To Prosper33

34. 34THANK YOUJeremiah Owyangjeremiah@altimetergroup.comweb-strategist.com/blogTwitter: jowyang

35. 35About UsAltimeter Group is a Silicon Valley-based strategy research andconsulting firm that provides companies with a pragmaticapproach to disruptive technologies. We have four areas offocus: Leadership and Management, Customer Strategy,Enterprise Strategy, and Innovation and Design.Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.