Social Media MarketingThe Next Generation of Business Engagement

Dave Evans

December 16th, Orange County

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The Business of Social Media

• Social Components• Collaboration• Real-time Updates• Tags and Filters

Social Business Design is the intentional creation of dynamic and socially calibrated systems, process, and culture. Its goal is helping organizations improve value exchange among constituents.

-- Peter Kim, Dachis Group

http://www.beingpeterkim.com/2009/10/social-business-design-definition.html

Social Business

Work Society

Technology

Copyright, 2009 Dachis Group

Social Business: Indium

• Thought Leadership Blog– Platform: Blog– Marketing Cost Reduction– 25% Savings on Tradeshows

“[Being a Thought Leader] is being considered the best, most authoritative, trusted source. It means being the organization that others MUST HAVE involved with a project. And it all leads to increased sales, profits, and image or it simply didn’t matter.”

-- Rick Short, Indium

Social Business: Amex

• Customer Community– Platform: Oracle– +1 million monthly unique

visitors

http://www.openforum.com/

“The legal department can be helpful. We involve them early and often. When anything is new, questions are asked.”

--Jason Rudman, AMEX Open Forum

Social Business: Ford

• Supplier Portal– Platform: Covisint– Facilitates business partner

and supplier collaoration

“The Ford Supplier Portal allows Ford and its suppliers to share information in a secure environment…”

Social Business: Coke

• Social Activity– Platform: Social Networks– Create participative activities– Eliminate use of microsites– Replace with social sites

• Created by Cisco for networking professionals who work with Cisco technology:– More than 200,000+

registered members– Provides learning

resources, job openings and networking for members

https://learningnetwork.cisco.com

Social Business: Cisco

SOCIAL MEDIAIN BUSINESS

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be aware

consider

buy

The Purchase Funnel

relative media spending

brand awareness keyword

consumer-generated

(Think “megaphone”)

marketer-generated

(Think “funnel”)

be aware

consider

buy use

form opinion

talk

Social content, networks, and interactions

word-of-mouth

The Feedback Cycle

relative media spending

brand awareness keyword

The Old Organization

Operations Marketing

X

Departmental segregation – aka “silos.”

The New Organization

Operations Marketing

The challenges that CMOs are tasked with are often more operational than “marketing.” This has direct impact on the

design of a social media and social business program.

Case: Home Depot

• Home Depot– CMO Turnover

• What Drives Traffic?– It’s in stock– I can find it– The Associates

The “marketing” results (e.g., traffic and sales) at Home Depot are as much the result of Operations decisions as Marketing.

Mary Beth Kemp/ Forrester

• Playing to Wrong Tune• Connect the Dots• Disparate to Holistic• Prepare for Innovation

“Take the reins of the brand experience and ensure that all of the touch points in the company -- operations, retail, sales teams, the call center -- adhere to and promote that brand experience consistently.”

Case: Brooklyn Museum

Integrated Campaigns

Social Media

Magazines

TV and Radio

Direct MailOnline

Advertising

http://www.brooklynmuseum.org

ENGAGEMENT AND COLLABORATION

35

+ =

Advertiser Engagement

Customer Engagement

Fan Engagement

• More than consumption• Starts with curation• Creation is part of it• Collaboration defines it.

EvangelizationPurchaseTrialCollaborationCreationCurationConsumption

Redefining Engagement

consumer-generated

(Think “megaphone”)

marketer-generated

(Think “funnel”)

word-of-mouth

Markets are Conversations

Example: Boingo/ Support

• Twitter is a Customer Support Channel.Service process combines telephone and Twitter-based resources; the result is public credit to Boingo for resolution.

• Business Objectives:– Brand Recovery

• Approach Used:– Ideation, Re-orientation

• What Was Done:– “Stopped the Line”– My Starbucks Idea

• Results vs. Objectives– 100 innovations since 2008

“This is not about training. This is about the love and compassion and commitment that we all need to have for the customer.”

--Howard Schultz, Founder, CEO, Starbucks

Case: Starbucks

Since 2008, Starbucks has

implemented 100 “My Ideas” innovations

Case: Starbucks

• Business Objectives:– “New” T-shirt Business

• Approach Used:– Customer Contests

• What Was Done:– Customer Curation

• Results vs. Objectives– Customer-driven design

builds direct product value

– Profitable online business since launch about ten years ago.

Case: Threadless

• Lifestyles, Causes, Passions:

• How do you connect at a deep level and build life-time ambassadors?

• How does your brand understand and participate in these platforms?

Case: The Good Guide

• Customer Support– Customers stood up

for DELL– DELL connected with

customers, created tools to drive advocacy;

– Built on Lithium Technologies discussion forums platform, Dell Support reduced costs and improved support experience.

Case: Dell

• IdeaStorm– Solicits ideas

directly from customers.

Case: Dell

• Employee Storm– Employee community

that facilitates collaboration and response to customer issues

Case: Dell

• Customer Communities– Built around lifestyle of

“mobile”

– Indirectly promotes Dell hardware.

– Built around lifestyle of small biz owners, rather than Dell.

– Operated by Dell Small Biz team.

Case: Dell

• SMB Business Page– Facebook Social

Media for Small Business: Conveys what DELL has learnt to its Small Business customers.

– Connects to DELL’s Slideshare and related content.

Case: Dell

http://dellgogreen.com

• Dell “Go Green”– Consumer generated

content contest where consumers submit ideas to redesign, reuse of recycle hardware.

Case: Dell

• SMB Twitter– +5 million followers– +$3,000,000 sales

Dell Outlet– +$5,000,000 sales

Dell Small Biz Offers

Case: Dell

• Employee Collaboration– Platform:

Lithium– Complements

Idea Storm

“Employee Storm has generated 2,700 ideas and seen visits from 22% of Dell's employees.”Josh Bernoff, Forrester Research

Case: Dell

• Business Objectives:– Customer Innovation

• Approach Used:– Ideation

• What Was Done:– IdeaStorm

• Results vs. Objectives

• Linux preinstalled (Promoted on Digg)

• Extension: Knowledge shared with SMB via Facebook

Case: Dell

• Nokia Ideas:– Direct solicitation of new ideas– Sponsorship of interns/fellows– Ongoing innovation program

Case: Nokia

BUILDING ASOCIAL BUSINESS

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• Raw Data– Google Alerts

• Conversational Data– Alterian SM2– Netbase– Radian6– BlogPulse– Cymfony– Collective Intellect

• Diagnostic Data– Net Promoter Score

Active Listening

Can you add value?

Evaluate the

purpose

Respond in kind & share

Thank the person

Unhappy Customer?

DedicatedComplainer?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

No Response

No

Yes

Take reasonable action to fix issue and let customer

know action taken

Are the facts

correct?

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue

Yes

Is the problem

being fixed?

Yes

Let post stand and monitor

NoYes

NoYes

Yes

Assess the message

Source: USAF, modified by Altimeter Group

Active Listening: Responding

• BudURL: Track shortened URLs across Social Web

• Infinigraph: Track all the way through to conversion

• Buzzstream: Identify and connect with influencers

Active Listening: Tracking

Case: The Network Hub

• Look for the little things that matter to your customers

• Do them well • These are the things

they’ll talk about.

Active Listening: Reacting

Case: Domino’s

• Rebuilt their Pizza• Re-visited “holdouts”• Used the video as the

basis for campaign

Building Your Team

• Brand management on the social web means collaboration with customers:– Legal issues– Operations issues– Supply Chain– More…

• Social technology necessarily involves the entire business.

Transparency and Disclosure

• Belkin• Prowler• Walmart• DELL

Social Computing Policies

• Who can post• What is off

limits• Process for

disclosure

http://www.ibm.com/blogs/zz/en/guidelines.html

SUMMARYBEST PRACTICES

5

Tips and Best Practices

• Listen, Respond• Encourage Collaboration• Measure Everything• (Don’t) Ignore Change• (Don’t) Use Social Media Alone• Build a Team

– Customers– Employees– Partners and Suppliers

• Implement Policies• Practice Transparency

THANK YOU

Questions and Answers

0