Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
L E A D E R NETWORKS 
Building Your Business Case 
For A Branded Online 
Community 
Thursday, October 16, 2014 
Vanessa Di...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
About Leader Networks 
Leader Networks is a strategic researc...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
Leader Networks Clients 
3
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
Research Methods 
Fernado Castagnari, 
Manager, Training & 
C...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
The Business Case Imperative 
Online communities have 
become...
L E A D E R NETWORKS 
Six Steps to Building a Business Case for Community 
Assemble 
executive 
sponsors 
Identify 
busine...
L E A D E R NETWORKS 
Step 1: 
Assemble 
Executive Sponsors 
Executive 
involvement has 
much to do with 
how well 
commun...
L E A D E R NETWORKS 
Assembling Executive & Cross Functional Stakeholders 
Executive sponsors can be found throughout the...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
9 
Created with Haiku Deck
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
After I sold the idea of community internally, I needed to 
e...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
STEP 2: 
IDENTIFY A BUSINESS NEED 
11
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
Identify A Business Need 
Many large-scale online community 
...
L E A D E R NETWORKS 
Example Business Needs To Fuel Community Business Case 
Customer Service & Support 
• Cost savings f...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
STEP 3: 
IDENTIFY 
AUDIENCE NEEDS & 
CORE MEMBERS 
14
L E A D E R NETWORKS 
Map Business Need to Audience Need 
What business needs from community What members need from commun...
L E A D E R NETWORKS 
Who the 
community will 
serve informs the 
content and 
engagement 
opportunities. 
Copyright © 201...
L E A D E R NETWORKS 
Step 4: Mapping Member and Business Needs to 
What 
members 
need from 
Community 
Copyright © 2014 ...
L E A D E R NETWORKS 
Map General Business & Audience Needs to Specific 
Business Requirements & Community Features 
Copyr...
L E A D E R NETWORKS 
Create A Business Requirements & Features Map 
Business Need Member Need Activity/Requirement Featur...
L E A D E R NETWORKS 
STEP 5: Measure What Matters 
Copyright © 2014 Leader Networks, LLC 
20
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
• To demonstrate the impact of 
community on your organizatio...
L E A D E R NETWORKS 
Metrics to Measures: How to Track Business Outcomes 
Example Success Metric Measures 
Increase sales...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 
“Some examples of metrics we track at 
SPS Commerce include C...
L E A D E R NETWORKS 
STEP 6: Prepare A Budget 
Copyright © 2014 Leader Networks, LLC 
24
L E A D E R NETWORKS 
Executive Expectations For A Community Budget 
• Your budget should include both the cost and revenu...
L E A D E R NETWORKS 
COSTS Category Estimate 
Strategy & support costs 
Copyright © 2014 Leader Networks, LLC 
Planning (...
L E A D E R NETWORKS 
Direct 
Revenues 
Category Estimate 
In-community transactions (pay-per-download, pay-per-answer, pa...
L E A D E R NETWORKS 
The Net/Net for Building A Business Case For Online 
Community 
 Engage your executive sponsors on ...
L E A D E R NETWORKS 
Copyright © 2014 Leader Networks, LLC 29
Upcoming SlideShare
Loading in …5
×

Building The Business Case For A Branded Online Community

3,010 views

Published on

This presentation is about how to build a business case for a branded online community. It is part of an education series which includes a detailed report. The webinar recording can be found here https://www.brighttalk.com/community/content-marketing/webcast/11085/127003

Published in: Business

Building The Business Case For A Branded Online Community

  1. 1. L E A D E R NETWORKS Building Your Business Case For A Branded Online Community Thursday, October 16, 2014 Vanessa DiMauro, CEO Copyright © 2014 Leader Networks, LLC 1
  2. 2. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC About Leader Networks Leader Networks is a strategic research and consulting firm that helps clients develop social business strategies, create online communities and lead social media marketing programs. Social Business Operations & Training: ROI, integrated marketing programs, online community operations Social Business Research: tracking, community health check, and user validation Social Strategy Development for online communities and social media marketing 2
  3. 3. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC Leader Networks Clients 3
  4. 4. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC Research Methods Fernado Castagnari, Manager, Training & Communications, Mars Petcare J.J. Levett, Director, Community Programs, CA Technologies Jessica McDouall, Director, Customer Operations, SPS Commerce Jennifer McClure, Vice President, Digital & Social Media, Thomson Reuters Claire Bovill, Sales Business Development Manager, Cisco Scott Wilder, Global Nation Builder: Corporate Marketing, Head of Community, User Groups and Ecosystem Engagement at Marketo Steve Roth, Independent Contractor, SchoolDude Robin Carey, CEO Social Media Today 4 This report draws on decades of online community best practice and implementation experience, including in-depth interviews with eight successful online community leaders with real-world examples to back up their suggestions and advice.
  5. 5. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC The Business Case Imperative Online communities have become a strategic necessity for many organizations. Well developed business plans for community help manage expectations and fuel buy-in. Successful communities start with a strong strategic foundation. A business case is the official proposal process -- usually resulting in a document of some type -- for securing an internal commitment from a business entity to create a branded online community. 5
  6. 6. L E A D E R NETWORKS Six Steps to Building a Business Case for Community Assemble executive sponsors Identify business needs Copyright © 2014 Leader Networks, LLC Identify audience needs and core members Map business & audience needs to community features Define and measure success Prepare a budget 6
  7. 7. L E A D E R NETWORKS Step 1: Assemble Executive Sponsors Executive involvement has much to do with how well communities influence revenue. Copyright © 2014 Leader Networks, LLC Two-thirds of organizations with highly involved executives are seeing their communities influence 16% or more of the organizations’ total revenue. Source: “Online Communities: Driving Customer Engagement & Influencing Revenue” (Demand Metric, September 2014) 7
  8. 8. L E A D E R NETWORKS Assembling Executive & Cross Functional Stakeholders Executive sponsors can be found throughout the organization (e.g. marketing, customer care, strategy, communications, HR, product development) Copyright © 2014 Leader Networks, LLC Ways To Engage Focus on the strategic goals of the company Identify who has the most pressing needs that community can help solve and accelerate Frame the opportunity in business terms Answer the question “what happens if we don’t build community?” Gather examples of community success 8
  9. 9. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC 9 Created with Haiku Deck
  10. 10. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC After I sold the idea of community internally, I needed to engage the potential members. The first step was to showcase the community concept at a sales conference to the potential audience and engage them regarding what they wanted in the future. My objective was to help them feel part of the project. Then I met with distributors and showed them how I could get information and training to them and give them what they need, as well as a space for them to share information. The message to them was different than the one I told to sales people because I focused on their business needs. -- Fernando Castagnari, Mars Petcare – Fernado Castagnari Manager, Training and Communications, Mars Petcare Brazil 10
  11. 11. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC STEP 2: IDENTIFY A BUSINESS NEED 11
  12. 12. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC Identify A Business Need Many large-scale online community success stories begin by solving a single business problem, and evolved into more wide-ranging solutions which delivered outcomes not possible prior to establishing the community. 12
  13. 13. L E A D E R NETWORKS Example Business Needs To Fuel Community Business Case Customer Service & Support • Cost savings from contact reduction Increase self-service • Solve middle-of-the-night problems Achieve scale and efficiencies • Scale collaboration and information sharing. Greater customer intimacy • Leads to increased customer satisfaction Gather customer ideas to increase speed to market • Fuels innovation & new product adoption Sales support and outreach • Nurture leads through engagement Copyright © 2014 Leader Networks, LLC 13
  14. 14. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC STEP 3: IDENTIFY AUDIENCE NEEDS & CORE MEMBERS 14
  15. 15. L E A D E R NETWORKS Map Business Need to Audience Need What business needs from community What members need from community Increased sales leads Copyright © 2014 Leader Networks, LLC Information about new products and services Thought leadership amplification Learning and sharing best practices from experts New (patentable) ideas Sharing feedback and ideas with product development A birds-eye-view on customer experiences Peer-peer discussions (forums) Fast customer satisfaction feedback Product and service ratings for purchase decisions Reduce call center traffic Get better support help more quickly 15
  16. 16. L E A D E R NETWORKS Who the community will serve informs the content and engagement opportunities. Copyright © 2014 Leader Networks, LLC Start with a sharp focus on the specific audiences or users who will be most closely aligned with the business needs and issues driving the community initiative. Consider the following: • Who are your most important customers, partners or stakeholders? • How would you describe individuals who would make the best members? • Can they be identified by customer segments, geographies, titles or specific activities within your organization's lines of business? 16
  17. 17. L E A D E R NETWORKS Step 4: Mapping Member and Business Needs to What members need from Community Copyright © 2014 Leader Networks, LLC Community Features What business needs to get from Community F e a t u r e s “I put together a plan of use cases, features, personas, etc. to determine which content should be open for lurkers, which content should be open for people that authenticate but are not customers and which content should be closed off to just customers.” Scott K. Wilder, Marketo 17
  18. 18. L E A D E R NETWORKS Map General Business & Audience Needs to Specific Business Requirements & Community Features Copyright © 2014 Leader Networks, LLC Specific Feature Capability • Ability to ask a questions or share ideas • Forums or content co-creation (e.g. wikis) Specific Business Requirement • Reduce load on internal customer service • Get answers to solve a problem General Member & Business Need Identification • (Business Need) Reduce call center traffic • (Member Need) Get better support help more quickly 18
  19. 19. L E A D E R NETWORKS Create A Business Requirements & Features Map Business Need Member Need Activity/Requirement Feature/Function Reduce load on internal customer service Copyright © 2014 Leader Networks, LLC Get answers to solve a problem Ability to ask a questions or share ideas Forums or content co-creation (e.g. wikis) Increase customer loyalty & engagement Competition for recognition and fun Inspire participation/ increase engagement Gamification and leaderboards Expand online and offline prospecting, selling and training Learn about new products, tech info and training Support in-person conferences and webinars Online booking capabilities; integrated video/screen sharing services Reduce call center and other support system costs per incident Get faster responses, self-service, avoid phone tag, 24x7 availability Reduce support contacts; improve customer support FAQs, forums, wikis, pay-per-answer, online troubleshooter apps 19
  20. 20. L E A D E R NETWORKS STEP 5: Measure What Matters Copyright © 2014 Leader Networks, LLC 20
  21. 21. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC • To demonstrate the impact of community on your organization, align community operations and measures with the organization's business goals and objectives. • Many "measurable" metrics (# of members, time on site, # of posts) are too far removed from the business strategy and member needs to be meaningful. • The real value of community can be found in understanding both the business definition of success and the members’ definition of success, each working to support the other. A Word On Metrics: Consider increased customer satisfaction measures, higher NPS scores, improved customer loyalty, more rapid customer service resolution, greater input from customers on product and service enhancements 21
  22. 22. L E A D E R NETWORKS Metrics to Measures: How to Track Business Outcomes Example Success Metric Measures Increase sales # leads generated by community Copyright © 2014 Leader Networks, LLC # sales made through community store (if applicable) # of product or service brochures downloaded on community Event attendance # of event registrations through the community Customer questions about how to use a product or service Contact reduction % # of questions asked online % of questions resolved online Learn from customers (e.g. feedback into product development) # of new ideas/requests % of ideas submitted that are investigated further Customer retention / satisfaction % increase in NPS score % of customers who are community members 22
  23. 23. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC “Some examples of metrics we track at SPS Commerce include Customer Engagement (measured by number of members and traffic on the community), Scalability (measured by contact reduction - % of viewed topics in a 'completed' status), and CSAT - measured monthly (result of establishing a self-service channel providing customers 24x7 access to training materials and information).” Jessica McDouall, Director, Customer Operations, SPS Commerce 23
  24. 24. L E A D E R NETWORKS STEP 6: Prepare A Budget Copyright © 2014 Leader Networks, LLC 24
  25. 25. L E A D E R NETWORKS Executive Expectations For A Community Budget • Your budget should include both the cost and revenue sides of the ledger. • You will probably be able to forecast costs with greater confidence than revenues. • Executive sponsors and community stakeholders may want to see a two- or three-year outlook, but the longer the time horizon, the greater the degree of uncertainty. • One strategy for managing senior leadership expectations is to prepare a budget using high, medium and low estimates for both costs and revenues. Copyright © 2014 Leader Networks, LLC 25
  26. 26. L E A D E R NETWORKS COSTS Category Estimate Strategy & support costs Copyright © 2014 Leader Networks, LLC Planning (e.g. internal assessment of needs) Consulting (e.g. strategic guidance, recommendations) Preliminary research (e.g. competitive analysis) Legal (e.g. user agreement, privacy, employee policy) Software platform Own or subscribe licenses Hosting fees Initial implementation fees Service and support fees (e.g. training) Ancillary products i.e. analytics, member management tools Design & development Community design treatment & branding Custom programming Ongoing enhancements Member acquisition, marketing & support Member acquisition programs / assets Online and off-line outreach programs Member incentives Content Repurposing existing assets New content creation Licensing fees for outside content (if applicable) Staffing 26
  27. 27. L E A D E R NETWORKS Direct Revenues Category Estimate In-community transactions (pay-per-download, pay-per-answer, pay-to-learn, lead generation, membership fees) Advertising & sponsorships (co-branding, partner or event marketing, co-sponsorships) Cost substitution (lower overall cost per customer served, per-incident cost differential vs. other channels) Reduced cost (cost per service incident; self-service for support needs, product information, sales inquiries) Indirect Revenues Increased customer satisfaction (faster response, reduced wait times, more knowledgeable responses from community member collaboration) Increased brand awareness (unsolicited brand mentions externally, positive brand comparisons on 3rd party sites, increased inquiry traffic across all channels) Increased prospect and sales leads (referrals, community mentions on 3rd party sites, word-of-mouth via community members) Copyright © 2014 Leader Networks, LLC 27
  28. 28. L E A D E R NETWORKS The Net/Net for Building A Business Case For Online Community  Engage your executive sponsors on business terms  Identify business problems or opportunities that online community can help solve  Carefully identify your audience segments  Understand what the future members want from community  Map the business and member needs to the community features Determine your and your members’ definitions of success  Create a budget that includes costs and revenue potential Copyright © 2014 Leader Networks, LLC 28
  29. 29. L E A D E R NETWORKS Copyright © 2014 Leader Networks, LLC 29

×