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Understanding the Social Customer Ryan Turner, Director of Social Media, West ryan.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 Web Community-Focused Broadcast Participatory User-Generated Bottom-Up HTML High Threshold of Entry Low Bandwidth Text-Based Collaboration Corporation-Driven Top-Down Data-Driven No entry Flash intros! Text and Images Transaction User-Generated Bottom-Up Standards-Driven Lower Threshold of Entry High Bandwidth Multimedia Interaction 1980’s-1994 1994-2005 2005-Now
Web 2.0 and social media are social phenomena above all.  Blogs Discussion Boards Forums Chat IMVlogs MoblogsSMS Podcasts MicroblogsPhoto Blogs Prediction Markets RSS CollaborationCollective Intelligence Communities Wikis Recommender Systems MashupsUser-Generated Content VS Social media is made up of people, relationships among people, and things people create and share
Agenda The Digital Customer Influence Brand Personality Extend the Business Device Proliferation
5 Ideas to consider Letting customers do the work Harness influencer dynamics Make your brands more human Create new businesses Take digital on the road
These are difficult times
But every year we spend more time online 1999 :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 somewhere Most products were originally sold based on a personal relationship in a high-touch environment But busy lifestyles required efficiency and organizations needed the scale The internet brought customership into our homes and offices Mobile 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 ads 77%trust companies less than they did last year 38%of people believe companies will do what is right 15% of people enjoy the ads as much as the programs 2008 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%  Yes 34.7%  No
2.  Has that experience influenced whether or not you purchased a product or service from the brand? 97.1%  Yes 2.9%  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%  Yes 35.9%  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 Channel Digital 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
1 DiSo enables WoM IDEA Let customers do the work for you
1 IDEA “ The purpose of a business is to create a customer ” – Peter Drucker
1 IDEA “ The purpose of a business is to create a customer who creates customers ”
1 IDEA Leaving your only job to be taking care of your existing customers Trust me, that’ll be harder not easier…
1 IDEA 1 billion total media impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans
1 IDEA
2 Syndication magnifies influence IDEA Harness influencer dynamics.
Why does influence matter online? 72% of internet users say they are exposed to too much advertising
2 IDEA
2 IDEA
2 IDEA What are the implications of this? ,[object Object]
You can optimize your media spend even further
Your social influencers can bring in more consumers
You need new metrics for evaluating customer value,[object Object]
3 IDEA Brand Voices Singular company voice Reflects the brand personality Everybody follows the brand voice Appears in all brand touch points Usually unique to the company Sometimes manifested in a person Used everywhere –signage to ads SIM Voices Multiple, authentic individual voices Transparent and discoverable Engaging and conversational Appears where conversations are Unique to the person not the company Manifested in a real person Used only by real people
3 IDEA Brand VoiceSocial Voice	                        Social Brand
3 IDEA
3 IDEA 1.0 Strategy & Planning Research & Development Operations Marketing & Sales Corporate Communications Human Resources Customers 2.0 Strategy & Planning Research & Development Operations Marketing & Sales Corporate Communications Human Resources Customers
2.3.10 Governance Documents Workflow, Routing, and Escalation Social Media Governance Charter Community Guidelines Internal Participation Policy Responsibility Matrix One-Page Social Media Orientation Performance Metrics  Online Brand Personality Brief Brand Guidelines More: www.socialmediagovernance.com
2.3.10 Business, Marketing. Compliance leadership “I’ve got something to share” Venue host Expert Advisor Friendly promoter Internal and external contributors Active & prominent Social Media participants Compliance and Brand Authority Social 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 matrix 2.3.10
3 IDEA What are the implications of this? ,[object Object]
You need to practice permission marketing
Create personal, not personalized, experiences
Cede partial brand ownership to your customers,[object Object]
4 IDEA Over 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
4 IDEA
4 IDEA What are the implications of this? ,[object Object]
You’ve got hidden assets to be leveraged
Your front-line customer interactions will matter even more
Your customers can help you navigate this world,[object Object]

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Understanding the Social Customer

  • 1. Understanding the Social Customer Ryan Turner, Director of Social Media, West ryan.turner@razorfish.com @wryanturner
  • 3. Razorfish creates experiences that build business.
  • 5.
  • 6. But is this really any different than previous technology “revolutions?”
  • 7.
  • 8. Everything’s amazing, but nobody’s happy.
  • 9. Yes, it’s a revolution. And the revolution in this case is not technological but social.
  • 12. Some Context: Ryan’s Ten-Cent History of the Web Community-Focused Broadcast Participatory User-Generated Bottom-Up HTML High Threshold of Entry Low Bandwidth Text-Based Collaboration Corporation-Driven Top-Down Data-Driven No entry Flash intros! Text and Images Transaction User-Generated Bottom-Up Standards-Driven Lower Threshold of Entry High Bandwidth Multimedia Interaction 1980’s-1994 1994-2005 2005-Now
  • 13. Web 2.0 and social media are social phenomena above all. Blogs Discussion Boards Forums Chat IMVlogs MoblogsSMS Podcasts MicroblogsPhoto Blogs Prediction Markets RSS CollaborationCollective Intelligence Communities Wikis Recommender Systems MashupsUser-Generated Content VS Social media is made up of people, relationships among people, and things people create and share
  • 14. Agenda The Digital Customer Influence Brand Personality Extend the Business Device Proliferation
  • 15. 5 Ideas to consider Letting customers do the work Harness influencer dynamics Make your brands more human Create new businesses Take digital on the road
  • 17. But every year we spend more time online 1999 :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 media is exploding
  • 19. “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
  • 20. Because we took a wrong turn somewhere Most products were originally sold based on a personal relationship in a high-touch environment But busy lifestyles required efficiency and organizations needed the scale The internet brought customership into our homes and offices Mobile took these interactions out of home and gave us even more control over where and when we transacted
  • 21. The more we invested in technology, the more distant we got from our customers
  • 22. 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.
  • 23. Ironically, digital is going to play a big part in making that happen.
  • 25. 76% of people think companies lie in ads 77%trust companies less than they did last year 38%of people believe companies will do what is right 15% of people enjoy the ads as much as the programs 2008 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 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% Yes 34.7% No
  • 27. 2. Has that experience influenced whether or not you purchased a product or service from the brand? 97.1% Yes 2.9% No
  • 28. 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% Yes 35.9% No
  • 29. Increasingly, digital is the 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 just a few of them
  • 32. Bottom Line: Digital Is Not Just an Ad Channel Digital 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 about understanding what you can do, it’s about knowing what you should do.
  • 34. 5 concepts to consider
  • 35. 1 DiSo enables WoM IDEA Let customers do the work for you
  • 36. 1 IDEA “ The purpose of a business is to create a customer ” – Peter Drucker
  • 37. 1 IDEA “ The purpose of a business is to create a customer who creates customers ”
  • 38. 1 IDEA Leaving your only job to be taking care of your existing customers Trust me, that’ll be harder not easier…
  • 39. 1 IDEA 1 billion total media impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans
  • 41. 2 Syndication magnifies influence IDEA Harness influencer dynamics.
  • 42. Why does influence matter online? 72% of internet users say they are exposed to too much advertising
  • 45.
  • 46. You can optimize your media spend even further
  • 47. Your social influencers can bring in more consumers
  • 48.
  • 49. 3 IDEA Brand Voices Singular company voice Reflects the brand personality Everybody follows the brand voice Appears in all brand touch points Usually unique to the company Sometimes manifested in a person Used everywhere –signage to ads SIM Voices Multiple, authentic individual voices Transparent and discoverable Engaging and conversational Appears where conversations are Unique to the person not the company Manifested in a real person Used only by real people
  • 50. 3 IDEA Brand VoiceSocial Voice Social Brand
  • 51.
  • 52.
  • 53.
  • 55. 3 IDEA 1.0 Strategy & Planning Research & Development Operations Marketing & Sales Corporate Communications Human Resources Customers 2.0 Strategy & Planning Research & Development Operations Marketing & Sales Corporate Communications Human Resources Customers
  • 56.
  • 57. 2.3.10 Governance Documents Workflow, Routing, and Escalation Social Media Governance Charter Community Guidelines Internal Participation Policy Responsibility Matrix One-Page Social Media Orientation Performance Metrics Online Brand Personality Brief Brand Guidelines More: www.socialmediagovernance.com
  • 58.
  • 59. 2.3.10 Business, Marketing. Compliance leadership “I’ve got something to share” Venue host Expert Advisor Friendly promoter Internal and external contributors Active & prominent Social Media participants Compliance and Brand Authority Social 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
  • 61.
  • 62. You need to practice permission marketing
  • 63. Create personal, not personalized, experiences
  • 64.
  • 65. 4 IDEA Over 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
  • 67.
  • 68. You’ve got hidden assets to be leveraged
  • 69. Your front-line customer interactions will matter even more
  • 70.
  • 74.
  • 75. Social media goes mobile in a fundamental way
  • 76.
  • 77. Know me. Create value. Be relevant. QUESTIONS…

Editor's Notes

  1. 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.
  2. 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.
  3. We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  4. We all know social media is a big deal. The question is, how big? Answer: HUGE. Transformative. But not because of technology.
  5. 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.
  6. 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.
  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. Unemployment is extremely high
  10. But we’re talking so much more online.
  11. 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?
  12. Personalization has a way of feeling remarkably impersonal.
  13. And of that 15%, you have to ask, what percentage work in ad agencies?
  14. So how do you get started? There are an overwhelming number of possible approaches, but only one best one for your brand.
  15. Ryan.
  16. Ryan.
  17. Ryan.
  18. All functional areas have the potential to create customers.