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Social Media for Sustained Business Growth
Dr. Jim Hamill www.energise2-0.com
@drjimhamill
17th October, 2011
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Agenda
Part 1• Overview of Social Media• The ‘Key Things to Remember’• Social Media in Action: Case ExamplesPart 2• Benchmarking Exercise – for your own company or a company of
your own choice• Benchmark your current social media activities against accepted
‘best practice’. The resulting ‘Strategic Gap’ i.e. the ‘Gap’ that exists between ‘where you are’ and ‘where you could be’, provides a very strong foundation for future strategy development in this area
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Brief Word on Our Approach
‘Social Media Planning Pays’
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www.energise2-0.com
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Use a Simplified Balanced Scorecard
• Will ensure that the social media actions and initiatives you take are fully aligned with and supportive of your overall business goals and objectives; that KPIs are agreed for monitoring and evaluating social media performance, business impact and ROI; and all key success factors are considered, especially the organization, people and resource aspects critical to successful strategy implementation
• A Scorecard approach can also be very useful for internal and external communications – a simple framework to present social media goals, objectives, key actions and initiatives to colleagues, partners and other stakeholders
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Social Media Balanced Scorecard
• Not ‘paralysis by analysis’. By providing an agreed framework to follow, the Balanced Scorecard considerably speeds up strategy development and implementation
• The steps involved can be captured in a Social Media Strategy Map
• Five key questions to address……
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Social Media Balanced Scorecard
• What is the overall social media vision for your organization?
• What are the key objectives and targets to be achieved?
• Who are your customers?
• Key Actions and Initiatives
• Organisation, Resource and People Issues
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Social Media Strategy Map
Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective
Strategic Objectives KPIs / Targets
KPIs / Targets KPIs / Targets
KPIs / Targets
Customer Group 1
Customer Group 2
Customer Group 3
Customer Group 4
2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions
2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions
Organisation People Resource
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Without Planning……..
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What is Social Media?
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Web 2.0/Social Media
Web 2.0 Applications
Open sourceOnline Applications/ Web ServicesSocial Network SitesSocial Content – Social BookmarkingBlogs or WeblogsWikisPodcasts/ VodcastsVirtual RealitiesMash UpsRSS FeedsMobile Web; Internet TelephonyTwitterCharacteristics
Communities and NetworksOpennessSharingPeeringHosted Services – online applications; the Internet as the platformInteractivitySocial ElementMass CollaborationEmpowermentGlobal
Business Impact
MindsetBusiness IntelligenceCustomer Insight and UnderstandingCustomer InteractionEnhanced Customer Experience –
Rich Internet ApplicationsReputation ManagementSales and Marketing Product Development and R&D e.g.
engage and co-createIT/Software/ApplicationsOperations, Internal Processes and
HRM
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How important has it become?
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Social Media Revolution
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Key Things to Rememberabout Social Media
The Rules of the game have changed
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A conversationnot a broadcast platform
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Advertising – Customer Breakup
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Key Things to Remember
• It’s social– A key feature is online democracy – with content being provided
by the network for the network – represents a fundamental and revolutionary change in online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet
– Conversations are already taking place relevant to your company/organisation. Are you listening?
• Power shift– Social media empowers customers, empowers the network.
Recognizing this shift is the cornerstone of future success • Declining effectiveness of traditional approaches
– Does anyone listen any more?
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Do You Listen?
Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (www.slideshare.com)
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Do You Listen?
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The Customer Manifesto
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What is Social Media?
NOT a broadcast medium. Its about listening to and engaging with customers, partners, your community, your tribe
This is something we are not very good at doing. We prefer telling people how good we are
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Key Things to Remember
• Pull v push– Consumers/users decide what information they wish to access
• New ‘mindsets’ are required– Marketing as a conversation with your customers/network–
dialogue not broadcasting– But this is something that most of us are not very good at doing.
We prefer ‘telling’ people• SM ‘winners’ and ‘losers’
– ‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships
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Key Things to Remember
• New performance measures– Business success depends on the quality of your customer base;
the strength of the relationship you have with quality customers; and your ability to leverage that relationship
– In a social media era, business success depends on the • Quality of your network• Relationship strength• Ability to leverage
• Social media monitoring/performance management tools
• The need for new business/marketing models
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Performance Measurement
Involvement – network/community numbers/quality, time spent, frequency, geography
Interaction – actions they take – read, post, comment, reviews, recommendations
Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc
Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking
Insight – customer insight Impact – business impact
Social Media Monitoring Tools –Audit, Assess, Impact
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The ‘6Is’ Approach
Insight and Impact
Involvement
InteractionIntimacy
Influence
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Key Things to Remember
The need for new business/marketing models
– Traditional approach:• Product development – Differentiate – Market and Promote -
Sell
– New model based on: • Communities, networks, openness, peering, sharing,
collaboration, customer empowerment, ‘think and act’ globally
• Engage and energise• ‘Create the Buzz’
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Potential Business Benefits of Social Media
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Business Benefits
• Market Knowledge
• Customer Insight and Understanding
• Customer Interaction
• Enhanced Customer Experience
• Business Intelligence
• Reputation Management
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Business Benefits
• Improved Sales and Marketing
• Identify and network with high value, high growth prospects
• Product Development and R&D e.g. engage and co-create
• Internal cost savings
• Improved Operations and Internal Processes
• Increased ROI
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Potential Business Benefits
5 main areas:
• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and hosted apps)
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Social Media in Action
Quick Examples
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In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand
A quick ‘personal experience’
Dubai Hotel
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From the web site
• This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments.
• The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites.
• Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…
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The Customer Experience of the Brand
Tripadvisor
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From Tripadvisor
• It's getting old, the rooms are unappealing and it will never be more than a business hotel
• Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website.
• Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel
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Blendtec
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Will It Blend? - iPad
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5.7 Million Views
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United Breaks Guitars
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10.2 Million Views
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Crowdsourced NPD
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266,555 on Facebook
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1.6 Million Twitter Followers
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17,000 Twitter Followers
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Skittles on Facebook
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19.3 Million ‘Likes’
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Whole Foods
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Talk To Us
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Social Media Monitoring
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Monitoring the Conversations
• Use Social Media Monitoring Tools to monitor online conversations relevant to your brand – also for measuring the ‘buzz’ about your brand
• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, Topsy, IceRocket, Blogscope, Blogpulse and ViralHeat
• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar
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Social Media Monitoring
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Innocent Drinks - Limited ‘Buzz’
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Social Mention
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Social Mention
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Social Mention
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Social Mention
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Social Mention
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Social Mention
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‘Getting There’
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‘Getting There’
• Get More Involved– Google Alerts, Twitter, Social Media Monitoring Tools
• Learn more• Develop a strategy• Implement• Monitor
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‘Be Customer Led’
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Be Customer Led
• Who are our customers, community, tribe?
• Where do they hang out in social media?
• How can we best engage with and energise them?
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In Summary……..’Social Media Planning Pays’
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Stop and Reflect
Key Questions to Address
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Key Questions to Address
• Do you need to engage with Social Media?• What progress has been made benchmarked against industry
‘best practice’, the potential of social media for your business and, more importantly, against the growing expectations of customers?
• What are the key objectives and targets to be achieved from social media? Are these fully aligned with and supportive of your overall business goals and objectives?
• Who are your customers? Where do you find them ‘hanging out’ on social media? How can you best engage with them?
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Key Questions to Address
• What are the main Social Media Actions and Initiatives you need to take – short, medium and longer term?
• What generic social media strategy should you follow (number of channels used/ depth of engagement in each channel)?
• For each priority Social Media Channel, what are your core objectives for that channel; what KPIs will be used for measuring on-going channel performance; what are your targets for each KPI; what key tasks are needed to achieve these targets?
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Key Questions to Address
• Do we have the right organisational ‘culture’ and ‘mindset’ for Social Media? ‘Be social before doing social! Is the right organisational and decision-making structure in place?
• Has agreement been reached on resource allocation?• Who will be responsible for your social media activities? What
balance has been agreed between internal and external roles and responsibilities?
• Who is the Social Media Champion?• Do you have agreed Social Media Policies and Guidelines in
place covering ‘Proper Use’, ‘Content Management’, ‘Customer Response Times/Quality’ and ‘Legal’ aspects?
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How You Doing?
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Benchmarking Exercise
Benchmark your own company/organisation (or one of your own choice) against the following 10 questions
Give yourself a score 1 (poor) – 10 (excellent)
Be Honest!!!!!
Honest Answers Produce Honest Results!!!!!
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Question 1
How well are you using Social Media Monitoring Tools for listening? Do you have an agreed strategy in place for deriving actionable insights from the online conversations taking place relevant to your business?
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Question 2
Do you have a clear social media vision and strategy? What is it?
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Question 3
Have you documented and communicated the core business objectives to be achieved from Social Media? Have you agreed KPIs (Key Performance Indicators) and targets for each core business objective?
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Question 4
Are your Social Media activities underpinned by a detailed ‘Customer Mapping and Segmentation Analysis’? To what extent are your Social Media activities focused on ‘quality’ customers i.e. high value, high margin, high growth potential customers? Is Social Media in your company driven by the need to build a ‘Quality Customer Base’ i.e. Identify, Acquire, Retain and Grow Quality Customers; or are you wasting valuable time and resource on ‘below zero’ customers (actual and potential)?
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Question 5
Have you agreed the core business objectives, KPIs and targets to be achieved from each priority Social Media Channel?
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Question 6
Are formal procedures in place for monitoring and evaluating Social Media performance and business impact benchmarked against strategic business objectives?
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Question 7
On a scale 1-10, how would you rate the positive business benefits derived from your Social Media activities (1-no or minimal impact; 10 – major positive impact) benchmarked against the full potential
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Question 8
Compared to other companies in your industry, are you a ‘leader’ or ‘laggard’ in your use of Social Media? Do you benchmark your Social Media performance and business impact against industry ‘best practice’, the potential of social media for your business and, more importantly, against the growing expectations of customers?
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Question 9
How well is your company organised and resourced to actively engage with Social Media? Are you a ‘social’ organisation? Are your Social Media activities resourced properly?
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Question 10
Do you have a clear plan in place covering future development of your Social Media activities?
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How did you do?
What ‘actionable insight’ did you derive?
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