How social media are generating revenue and expand the scope of business

1. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
SocialCRM
Thanachart Ritbumroong, Ph.D.

2. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
2
INFLUENCEpeople
With your

3. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What is more important?
3
Content-Centric Customer-Centric

4. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Why Social CRM is important?
Social Media and Social Network help
business
influence a massive number of people on
a small budget
4

5. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
We are influenced by what is around us
• We copy other people’s behavior, especially people like
us.
– People sitting next to heavy eaters eat more
– If your friends are happy, you’re more likely to happy
– Students who live with studious roommates tend to study more
• We are influenced by what people have done before us.
– On amazon.com, people tend to give things the same ratings as
other people have given before them
• We are influenced by the society we live in.
– Eastern cultures emphasize relationships and groups while
Western cultures emphasize individuals
• We are influenced by social norms.
– Thais remove your shoes before entry to a house
6

6. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Influence within groups
Groups can make better decisions than individuals.
• We are influenced by people in our group.
– We often change our behavior to conform to the expectations,
attitudes, and behaviors of our group.
• We increasingly turn to others to help us make decisions.
– When we are uncertain about what to do, we turn to others to help
us make a decision (we have limited access to information as well
as limited memory).
• Not everyone in a group is equal.
– We have unique relationships with the people in our life.
7

7. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What to do …
• Showing others’ behavior is a powerful way to influence people.
8

8. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
How experts exert influence
• Our trusted experts are often people we know.
– We often turn to people we see as experts in their domain such
as doctors, mechanics, etc.
– Nevertheless, the strength of our relationship with the expert
plays a role. Cancer patients trust their local care physician more
than world renowned cancer treatment centers.
• We overrate the advice of experts.
– One study quantified over 82,000 predictions of journalism
experts. 80% of predictions were wrong.
• We overestimate what we know.
– In one study, managers in the advertising industry were asked
questions about their domain. On average, they were correct
61% of the time, but were confident that they were correct 90%
of the time.
9

9. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What to do …
• Showing closet credible person as an expert.
10

10. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
How our brain influences us
• We are not rational thinkers. We rely on the emotional
brain
– Our conscious brain are not designed to process huge amounts
of information.
– Our nonconscious brain makes most of our decisions.
– Nonconscious brain generates a feeling that it sends to our
conscious brain. Conscious brain then uses this feeling to make
a decision.
• We experience the world through patterns.
– Our brain is constantly looking for patterns because it finds it
hard to deal with the idea that some things are random.
11

11. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What to do …
• Communicate with
their conscious brain
12

12. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Our memory is highly unreliable
• Our most frequent recollections are the least accurate.
– As we recall memories, we remake them. We add fictional
details to fill the missing gaps.
• People remember key relationships, not details
– The brain doesn’t care about accuracy or details.
• We can only remember a small amount at a time, in
sequence
– We can only recall small number of memories in the sequence.
13

13. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What to do …
14

14. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
How influence spread
15
Two types of hubs
• Innovative hub
People who are highly connected and have a low
threshold for new ideas
• Follower hub
People who are highly connected and have a high
threshold for new ideas

15. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
How hubs spread ideas
Innovative Hubs Follower Hubs
16

16. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Talking helps spreading ideas
17
 Most of our conversation is
with the people closet to us
 Who is listening to us
changes what we talk about

17. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
5-15-50-150-500
• The 5 people in your inner circle
• Up to 15 people you are very close to
• About 50 people you communicate
semi–regularly so that you generally
know what is going on in their lives
• About 150 people with whom you can
maintain stable social relations
• About 500 weak ties, people you
loosely know and can recognize
18

18. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Psychology behind talking
• To survive
– Sharing information makes life easier
– Sharing information about food supplies, dangerous animals,
weather patterns
• To form social bonds
– Conversations ensure that we understand one another.
– One key aspect is communal laughter.
• To help each others
– To some (or many), it is important to them to be perceived as
helpful.
• To manage how other perceives us
– Our identities are constantly shaped and refined by the
conversations we have.
19

19. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What to do …
20
1-800-flowers.com used Facebook to have mothers vote
on products that they prefer to receive as a gift

20. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
What we talk
• Many of our conversations are about other people
– 70% of conversations are about social relationships and
recounting personal experiences.
• We share feelings, not facts
– Awe, Anger, and Anxiety causes content to go viral
• We talk about the things that surround us
– As Halloween provides more environmental cues about the color
orange, products that are orange (Reese’s Pieces, Orange soda)
are more top of mind around the festive season.
• We talk about brands in passing
– Brands come up for a few seconds, and then disappear
21

21. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
Here’s what you need to do ….
1. How would you capture customer data?
– Identify technology to capture customer data
– Identify sources of data (social media included)
– Identify what customer data would be captured
2. Illustrate how to turn data into insights
– Profiling
– Segmentation
– Prediction
3. Discuss ways to turn insights into actions
22

22. 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 1 0 1 0 1 1 0 0 1 0 1 0 1 1 0 0 0 1 0 0 1 1 0 1 0 1 0 1 0 1
1 0 1 1 1 0 1 1 0 1 0 1
23