developing a social strategy webinar

Developing a Social Strategy

Charlene LiAltimeter GroupFebruary 24, 2010

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Jeremiah OwyangAltimeter Group#socialstrategy

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Research is the foundation of any strategy.

Our first webinar (Part 1) of this series focused on how to use socialgraphics to create your own Engagement Pyramid.

This webinar (Part 2) will focus on developing a social strategy based on business goals.

The next webinar (Part 3) will explain how to get your company ready to execute a social strategy.

A 3-part series

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It’s not about the technologies3

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TransactionalOccasionalImpersonalShort-term

PassionateConstantIntimate

Loyal

Focus on relationships, not technologies

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Social Strategy

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Four goals define your strategy, but always start with learn

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Learn

Dialog

Support

Innovate

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Learn with monitoring tools7

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Paid services provide monitoring8

From Radian 6

Other providers

Buzzmetrics CymfonyDow Jones Scout LabsTechrigy/AlterianVisible Technologies

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Ethnographic research using Delicious

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Dialog with your community10

Learn

Dialog

Support

Innovate

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Engagement Pyramid: Focus on Watching and Sharing

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Curating

Producing

Commenting

Sharing

Watching

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At Southwest, a planner engages

This post received 98 comments over

10 days. In the future, everyone is

a marketer.

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DellOutlet drives sales with Twitter13

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Kohl’s engages directly with customers

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Help your members support each other

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Learn

Dialog

Support

Innovate

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Wells Fargo Supports Customers16

Ask Wells Fargo supports customers in real time –while keeping true to their bankers hours tradition. Rather than hide behind a logo, they use

real human voices and names, increasing trust

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Premier Farnell supports engineers with community, and employees with “OurTube”

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Starwood guests help each other18

FlyerTalk has over 20,000 threads on the site, with up to

tens of thousands of views each. Starwood guests are

visiting the forum and finding answers, while Starwood

collects market intelligence.

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Microsoft’s MVP Experts Support –and Advocate

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Microsoft’s MVP programs nominates helpful customers

and professionals once a year. This unpaid army

supports other customers –and becomes community

advocates

* Disclosure: Microsoft is an Altimeter Client, learn more about our disclosure policy at http://www.altimetergroup.com/disclosure

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Innovate with customer feedback20

Learn

Dialog

Support

Innovate

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Gauging interest for Bacon Salt21

Makers of BaconSalt reached out to fans of bacon on MySpace to

gauge interest in their new product. Baconaisse and bacon-flavored sunflower seeds were later created after listening to customer

requests.

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Fiat gathers product and market intelligence

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Contributors submit ideas, and can include pictures and embed

videos. Fiat gets valuable ideas for

features and design, and marketing and

advertising.

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P&G used ratings & reviews to improve

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Dell innovates across the organization

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Use new listening platforms, identify in-house and

external experts, and know and influence key people

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What to do first

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#1 Start small, start now26

At the least, listen to learnPick a goal

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Where to start? Align social with strategic goals

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Examine your 2010 goals

Pick one where social can have an impact

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#2 Understand the valueWhat’s the value of a fan or follower?

+4 million fans

16,965 followers

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+ Value of purchases- Cost of acquisition

= Customer lifetime value

+ Value of new customers from referrals

+ Value of insights+ Value of support

The new lifetime value calculation, based on your goals

• Percent that refer• Size of their networks• Percent of referred

people who purchase• Value of purchases

• Percent that provide support

• Frequency and value of the support

+ Value of ideas

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Fans

Large network

Refers

Doesn’t refer

Small network

Refers

Doesn’t refer

Find more fans with

large networks

Encourage fans to make

more referrals

Make decisions with metrics30

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#3 Prepare for new workflows

Social technologies will disrupt traditional organization structures

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Organize for different types of openness

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Organic- Natural growth requiring few resources- Deep adoption- Non-consistent- Eg. Humana, Microsoft

Centralized

- One department controls all efforts- Experimental, fast moving- Not spread or used broadly- Eg. Starbucks, Ford, Dell

Coordinated

- Sets rules, best practices, policies- Each department executes- Takes time, not cutting edge- Eg. HP, Red Cross

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#4 Practice Open Leadership33

When people get what they need from each other

Have the confidence to let go and still inspire results

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Open Leadership

Having the confidence and humility to give up the need to be in control, while inspiring commit-ment from people to accomplish goals.

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10 elements of openness35

• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms

Information Sharing

• Centralized• Democratic• Self-managing• Distributed

Decision Making

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Social + open = competitive advantage

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+2,200 Best Buy employees answer questions sent to @twelpforce

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Plan to fail well – Wal-Mart case study

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Buyer blog hit the right note38

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Build trust and manage risk 39

The Sandbox Covenant

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Like any relationship, the best ones are best on built on listening and understanding.

Pick one goal and master that, then layer on more.

When choosing a social strategy goal, align it with your business goals and those of your customers.

Benchmark your progress based upon your business goals, not “engagement” data.

Change your mindset: letting go will yield more results.

Summary40

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Thank you

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Charlene Licharlene@altimetergroup.co

m

blog.altimetergroup.com

Twitter: charleneli

Jeremiah Owyangjeremiah@altimetergroup.c

om

web-strategist.com/blog

Twitter: jowyang

© 2010 Altimeter Group

About Us

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Altimeter Group is a strategy consulting firm that provides

companies with a pragmatic approach to disruptive

technologies. We have four areas of focus: Leadership and

Management, Customer Strategy, Enterprise Strategy, and

Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

info@altimetergroup.com.