Understanding the Social CustomerRyan Turner, Director of Social Media, Westryan.turner@razorfish.com@wryanturner
Questions?
Razorfish creates experiences that build business.
Banana phone slide
But is this really any different than previous technology “revolutions?”
Everything’s amazing, but nobody’s happy.
Yes, it’s a revolution. And the revolution in this case is not technological but social.
What happened?
Broadband.WSIWYG.YouTube.
Some Context: Ryan’s Ten-Cent History of the WebCommunity-FocusedBroadcastParticipatoryUser-GeneratedBottom-UpHTMLHigh Threshold of EntryLow BandwidthText-BasedCollaborationCorporation-DrivenTop-DownData-DrivenNo entryFlash intros!Text and ImagesTransactionUser-GeneratedBottom-UpStandards-DrivenLower Threshold of EntryHigh BandwidthMultimediaInteraction1980’s-19941994-20052005-Now
Web 2.0 and social media are social phenomena above all. Blogs Discussion BoardsForums Chat IMVlogsMoblogsSMS PodcastsMicroblogsPhoto BlogsPrediction Markets RSSCollaborationCollectiveIntelligence CommunitiesWikis Recommender SystemsMashupsUser-GeneratedContentVSSocial media is made up of people, relationships among people, and things people create and share
AgendaThe Digital CustomerInfluenceBrand PersonalityExtend the BusinessDevice Proliferation
5 Ideas to considerLetting customers do the workHarness influencer dynamicsMake your brands more humanCreate new businessesTake digital on the road
These are difficult times
But every year we spend more time online1999 :7 hours
2000 : 7 hours
2001 : 7 hours
2002 : 7 hours
2003 : 9 hours
2004 : 8 hours
2005 : 9 hours
2006 : 9 hours
2007 : 11 hours
2008 : 14 hours
2009 : 13 hours
And social media is exploding
“If we add up all the time people have spent playing World of Warcraft, it would total approximately 5.93 million years. That’s the same amount of time that homo sapiens has existed.”-- Jane McGonigal, TED 2010
Because we took a wrong turn somewhereMost products were originally sold based on a personal relationship in a high-touch environmentBut busy lifestyles required efficiency and organizations needed the scaleThe internet brought customership into our homes and officesMobile took these interactions out of home and gave us even more control over where and when we transacted
The more we invested in technology, the more distant we got from our customers
The Idea! We spent the last 30 years using technology to separate ourselves from our customers . . .Let’s spend the next 30 using technology to get closer to our customers.
Ironically, digital is going to play a big part in making that happen.
There are challenges.
76% of people think companies lie in ads77%trust companies less than they did last year38%of people believe companies will do what is right15% of people enjoy the ads as much as the programs2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire.Page 25© 2009 Razorfish. All rights reserved.
1. Has an experience you have had online ever changed your opinion (either positively or negatively) about a brand or the products and services it offers?65.3% Yes34.7% No
2. Has that experience influenced whether or not you purchased a product or service from the brand?97.1% Yes2.9% No
3. Have you ever made your first purchase from a brand because of a digital experience (e.g., a web site, microsite, mobile coupon, email)?64.1% Yes35.9% No
Increasingly, digital is the first—and frequently only—customer touchpoint.
Success requires personal, high-touch interactions.And we already have examples of companies creating transformative digital experiences…
Here are just a few of them
Bottom Line: Digital Is Not Just an Ad ChannelDigital is not simply an “awareness” or CRM play, it’s a customer-creation play. The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly.Digital is quickly becoming the first and most important customer touchpoint. It’s transforming your customer relationships, whether you like it or not.
It’s not about understanding what you can do, it’s about knowing what you should do.
5 concepts to consider
1DiSo enables WoMIDEALet customers do the work for you
1IDEA“The purpose of a business is to create a customer”– Peter Drucker
1IDEA“The purpose of a business is to create a customer who creates customers”
1IDEALeaving your only job to be taking care of your existing customersTrust me, that’ll be harder not easier…
1IDEA1 billion total media impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans
1IDEA
2Syndication magnifies influenceIDEAHarness influencer dynamics.
Why does influence matter online?72% of internet users say they are exposed to too much advertising
2IDEA
2IDEA
2IDEAWhat are the implications of this?You’ve got new marketing tactics to leverage
You can optimize your media spend even further
Your social influencers can bring in more consumers
You need new metrics for evaluating customer value3IDEAMake your brands even more human
3IDEABrand VoicesSingular company voiceReflects the brand personalityEverybody follows the brand voiceAppears in all brand touch pointsUsually unique to the companySometimes manifested in a personUsed everywhere –signage to adsSIM VoicesMultiple, authentic individual voicesTransparent and discoverableEngaging and conversationalAppears where conversations areUnique to the person not the companyManifested in a real personUsed only by real people
3IDEABrand VoiceSocial Voice	                        Social Brand
3IDEA
3IDEA1.0Strategy & PlanningResearch & DevelopmentOperationsMarketing & SalesCorporate CommunicationsHuman ResourcesCustomers2.0Strategy & PlanningResearch & DevelopmentOperationsMarketing & SalesCorporate CommunicationsHuman ResourcesCustomers
2.3.10Governance DocumentsWorkflow, Routing, and EscalationSocial Media Governance CharterCommunity GuidelinesInternal Participation PolicyResponsibility MatrixOne-Page Social Media OrientationPerformance Metrics Online Brand Personality BriefBrand GuidelinesMore: www.socialmediagovernance.com
2.3.10Business, Marketing. Compliance leadership“I’ve got something to share”Venue hostExpert AdvisorFriendly promoterInternal and external contributorsActive & prominent Social Media participantsCompliance and Brand AuthoritySocial Media Governance Board:Participant/Content Creator:Moderator:Curator:Evangelist: Key Contributors:Social Media Leadership Team:Approver:There will be overlap (people will wear more than one hat). A member of the governance board could be a key contributor as a curator for a niche market. A moderator not only can, but should, be a key contributor. ROLES AND RESPONSIBILITIES
Governance documents: responsibility matrix2.3.10
3IDEAWhat are the implications of this?People connect with people more than brands
You need to practice permission marketing
Create personal, not personalized, experiences
Cede partial brand ownership to your customers4IDEACreate new businesses out of hidden assets
4IDEAOver the next decade, two out of every three companies will face the challenge of their corporate lives: redefining their core business. Buffeted by global competition and facing an uncertain future, more and more executives will realize that they must make fundamental changes in their core even as they continue delivering the goods and services that keep them in business today
4IDEA
4IDEAWhat are the implications of this?Your business is going to radically change
You’ve got hidden assets to be leveraged
Your front-line customer interactions will matter even more
Your customers can help you navigate this world5IDEATake your digital experiences on the road

Understanding the Social Customer

  • 1.
    Understanding the SocialCustomerRyan Turner, Director of Social Media, Westryan.turner@razorfish.com@wryanturner
  • 2.
  • 3.
    Razorfish creates experiencesthat build business.
  • 4.
  • 6.
    But is thisreally any different than previous technology “revolutions?”
  • 8.
  • 9.
    Yes, it’s arevolution. And the revolution in this case is not technological but social.
  • 10.
  • 11.
  • 12.
    Some Context: Ryan’sTen-Cent History of the WebCommunity-FocusedBroadcastParticipatoryUser-GeneratedBottom-UpHTMLHigh Threshold of EntryLow BandwidthText-BasedCollaborationCorporation-DrivenTop-DownData-DrivenNo entryFlash intros!Text and ImagesTransactionUser-GeneratedBottom-UpStandards-DrivenLower Threshold of EntryHigh BandwidthMultimediaInteraction1980’s-19941994-20052005-Now
  • 13.
    Web 2.0 andsocial media are social phenomena above all. Blogs Discussion BoardsForums Chat IMVlogsMoblogsSMS PodcastsMicroblogsPhoto BlogsPrediction Markets RSSCollaborationCollectiveIntelligence CommunitiesWikis Recommender SystemsMashupsUser-GeneratedContentVSSocial media is made up of people, relationships among people, and things people create and share
  • 14.
    AgendaThe Digital CustomerInfluenceBrandPersonalityExtend the BusinessDevice Proliferation
  • 15.
    5 Ideas toconsiderLetting customers do the workHarness influencer dynamicsMake your brands more humanCreate new businessesTake digital on the road
  • 16.
  • 17.
    But every yearwe spend more time online1999 :7 hours
2000 : 7 hours
2001 : 7 hours
2002 : 7 hours
2003 : 9 hours
2004 : 8 hours
2005 : 9 hours
2006 : 9 hours
2007 : 11 hours
2008 : 14 hours
2009 : 13 hours
  • 18.
    And social mediais exploding
  • 19.
    “If we addup all the time people have spent playing World of Warcraft, it would total approximately 5.93 million years. That’s the same amount of time that homo sapiens has existed.”-- Jane McGonigal, TED 2010
  • 20.
    Because we tooka wrong turn somewhereMost products were originally sold based on a personal relationship in a high-touch environmentBut busy lifestyles required efficiency and organizations needed the scaleThe internet brought customership into our homes and officesMobile took these interactions out of home and gave us even more control over where and when we transacted
  • 21.
    The more weinvested in technology, the more distant we got from our customers
  • 22.
    The Idea! Wespent the last 30 years using technology to separate ourselves from our customers . . .Let’s spend the next 30 using technology to get closer to our customers.
  • 23.
    Ironically, digital isgoing to play a big part in making that happen.
  • 24.
  • 25.
    76% of peoplethink companies lie in ads77%trust companies less than they did last year38%of people believe companies will do what is right15% of people enjoy the ads as much as the programs2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire.Page 25© 2009 Razorfish. All rights reserved.
  • 26.
    1. Has anexperience you have had online ever changed your opinion (either positively or negatively) about a brand or the products and services it offers?65.3% Yes34.7% No
  • 27.
    2. Has thatexperience influenced whether or not you purchased a product or service from the brand?97.1% Yes2.9% No
  • 28.
    3. Have youever made your first purchase from a brand because of a digital experience (e.g., a web site, microsite, mobile coupon, email)?64.1% Yes35.9% No
  • 29.
    Increasingly, digital isthe first—and frequently only—customer touchpoint.
  • 30.
    Success requires personal,high-touch interactions.And we already have examples of companies creating transformative digital experiences…
  • 31.
    Here are justa few of them
  • 32.
    Bottom Line: DigitalIs Not Just an Ad ChannelDigital is not simply an “awareness” or CRM play, it’s a customer-creation play. The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly.Digital is quickly becoming the first and most important customer touchpoint. It’s transforming your customer relationships, whether you like it or not.
  • 33.
    It’s not aboutunderstanding what you can do, it’s about knowing what you should do.
  • 34.
  • 35.
    1DiSo enables WoMIDEALetcustomers do the work for you
  • 36.
    1IDEA“The purpose ofa business is to create a customer”– Peter Drucker
  • 37.
    1IDEA“The purpose ofa business is to create a customer who creates customers”
  • 38.
    1IDEALeaving your onlyjob to be taking care of your existing customersTrust me, that’ll be harder not easier…
  • 39.
    1IDEA1 billion totalmedia impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans
  • 40.
  • 41.
  • 42.
    Why does influencematter online?72% of internet users say they are exposed to too much advertising
  • 43.
  • 44.
  • 45.
    2IDEAWhat are theimplications of this?You’ve got new marketing tactics to leverage
  • 46.
    You can optimizeyour media spend even further
  • 47.
    Your social influencerscan bring in more consumers
  • 48.
    You need newmetrics for evaluating customer value3IDEAMake your brands even more human
  • 49.
    3IDEABrand VoicesSingular companyvoiceReflects the brand personalityEverybody follows the brand voiceAppears in all brand touch pointsUsually unique to the companySometimes manifested in a personUsed everywhere –signage to adsSIM VoicesMultiple, authentic individual voicesTransparent and discoverableEngaging and conversationalAppears where conversations areUnique to the person not the companyManifested in a real personUsed only by real people
  • 50.
  • 54.
  • 55.
    3IDEA1.0Strategy & PlanningResearch& DevelopmentOperationsMarketing & SalesCorporate CommunicationsHuman ResourcesCustomers2.0Strategy & PlanningResearch & DevelopmentOperationsMarketing & SalesCorporate CommunicationsHuman ResourcesCustomers
  • 57.
    2.3.10Governance DocumentsWorkflow, Routing,and EscalationSocial Media Governance CharterCommunity GuidelinesInternal Participation PolicyResponsibility MatrixOne-Page Social Media OrientationPerformance Metrics Online Brand Personality BriefBrand GuidelinesMore: www.socialmediagovernance.com
  • 59.
    2.3.10Business, Marketing. Complianceleadership“I’ve got something to share”Venue hostExpert AdvisorFriendly promoterInternal and external contributorsActive & prominent Social Media participantsCompliance and Brand AuthoritySocial Media Governance Board:Participant/Content Creator:Moderator:Curator:Evangelist: Key Contributors:Social Media Leadership Team:Approver:There will be overlap (people will wear more than one hat). A member of the governance board could be a key contributor as a curator for a niche market. A moderator not only can, but should, be a key contributor. ROLES AND RESPONSIBILITIES
  • 60.
  • 61.
    3IDEAWhat are theimplications of this?People connect with people more than brands
  • 62.
    You need topractice permission marketing
  • 63.
    Create personal, notpersonalized, experiences
  • 64.
    Cede partial brandownership to your customers4IDEACreate new businesses out of hidden assets
  • 65.
    4IDEAOver the nextdecade, two out of every three companies will face the challenge of their corporate lives: redefining their core business. Buffeted by global competition and facing an uncertain future, more and more executives will realize that they must make fundamental changes in their core even as they continue delivering the goods and services that keep them in business today
  • 66.
  • 67.
    4IDEAWhat are theimplications of this?Your business is going to radically change
  • 68.
    You’ve got hiddenassets to be leveraged
  • 69.
    Your front-line customerinteractions will matter even more
  • 70.
    Your customers canhelp you navigate this world5IDEATake your digital experiences on the road
  • 71.
  • 72.
  • 73.
  • 74.
    5IDEAWhat are theimplications of this?Context joins content at the core of digital experiences
  • 75.
    Social media goesmobile in a fundamental way
  • 76.
    Real time activitywill drive brand perception5 Ideas to considerLetting customers do the workHarness influencer dynamicsMake your brands more humanCreate new businessesTake digital on the road
  • 77.
    Know me. Createvalue. Be relevant.QUESTIONS…

Editor's Notes

  • #3 I’ve been at Razorfish just a month. What lured me? We recognized early on that digital isn’t just about the web site. Digital is more than a channel. It’s a business dimension—a way of thinking about relationships that creates new opportunities for businesses and customers BOTH.
  • #4 I’ve been at Razorfish just a month. What lured me? We recognized early on that digital isn’t just about the web site. Digital is more than a channel. It’s a business dimension—a way of thinking about relationships that creates new opportunities for businesses and customers BOTH.
  • #7 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  • #8 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  • #9 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology. That video kind of misleads through all the numbers it throws out—what’s actually interesting is not how much, but what kind.
  • #10 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology. That video kind of misleads through all the numbers it throws out—what’s actually interesting is not how much, but what kind.
  • #11 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  • #12 We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  • #17 Unemployment is extremely high
  • #19 But we’re talking so much more online.
  • #20 And WoW is really, really lame. Not just because it’s dorky but because it’s escapist. The good news is that meaningful time online—time spent interacting and communicating, dwarfs that number. It’s incalculable, at least for an English major like me. WoW: 11.5 M users. FB = 500 million and counting. Wow indeed. So, why does all this matter?
  • #23 Personalization has a way of feeling remarkably impersonal.
  • #26 And of that 15%, you have to ask, what percentage work in ad agencies?
  • #34 So how do you get started? There are an overwhelming number of possible approaches, but only one best one for your brand.
  • #50 Ryan.
  • #51 Ryan.
  • #52 Ryan.
  • #54 All functional areas have the potential to create customers.