© 2008 Powered, Inc.

Webinar: How to Build a Business Case for Social MarketingJanuary 28th, 2009

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© 2008 Powered, Inc.

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Our Panelists

Bill Johnston, Chief Community OfficerForum One Networks

Rob Harles, Senior Vice President

Sears Holdings

Kate Niederhoffer, Senior PartnerThe Dachis Corporation

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Making the case for social marketing

Bill JohnstonChief Community Officer

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Overview

• Intro: Bill Johnston

– Community builder since 1999

– TechRepublic, Autodesk

– Forum One Networks

• Community Strategy Development –

think “Ecosystem”

• Making the case

• Setting expectations

• Common Mistakes (and how to avoid)

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Ecosystem Diagram

Blogs

Community Portal

Idea Generation

DiscussionGroups

CorporateSite

Mass Social Media

(Facebook, You Tube, LinkedIn…)

Independent Blogs

Blogs

IndependentCommunities

Local UserGroups

Events

Meetups

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Making the case

Stakeholder’s Attitudes toward value Online Community (Dec 2008):

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Making the case: Value in 2009

• “We find it’s not a negative change, it’s a positive one. Any way

of reaching the market more directly, and cutting out the

middle-man, is a bonus in this climate.”

• “There is a more intense focus on community and social

media as a more cost-effective way to promote and sell

products.”

• “They're even more committed to supporting and expanding

these services as they are much more cost effective,

immediate and interactive than other forms of communication.”

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Making the case: tips

• Cost / Reach / Results compared to other activities

– Organic traffic vs. paid search

– Ideas / feedback vs. focus group

– Blogs vs. static web

• Members *can* become more loyal / net promoters

• Direct connection, opportunity for conversation

• Becoming expected as part of the social business license

• Cost of not engaging

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Common mistakes

• Focusing on fiduciary value only

• Not aligning community goals with Corp / Division goals

• Thinking quarter / quarter vs. year over year

– Budget projections 2-3 years out

• Understaffing

• Not engaging / no corporate skin in the game

• Being too risk-averse

• Not “right-sizing” expectations

Building and Managing an Online CommunityBuilding and Managing an Online CommunityPractical Tips and Advice on How to Get Started Practical Tips and Advice on How to Get Started

and What to Watch Out Forand What to Watch Out For

Rob HarlesRob HarlesSenior Vice PresidentSenior Vice President

Getting Started – Community 101 Getting Started – Community 101

• Identify the customer value proposition Identify the customer value proposition upfront, e.g.upfront, e.g.– Help/answersHelp/answers– Connecting with othersConnecting with others– Access to research/special contentAccess to research/special content– Fame/recognitionFame/recognition– Incentives or rewards Incentives or rewards

Setting the Vision and ObjectivesSetting the Vision and Objectives

•Vision Vision – Infuse the voice of the customer in – Infuse the voice of the customer in everything we doeverything we do

•Objectives Objectives –– – Define clear objectivesDefine clear objectives– Measure, test and learnMeasure, test and learn– Build customer engagementBuild customer engagement– Develop better view of customer demandDevelop better view of customer demand– Enhance retention and loyaltyEnhance retention and loyalty

Finding and Engaging the Core Finding and Engaging the Core

FanaticsFanatics

RegularsRegulars

PassersbyPassersby

Lessons and Watch-OutsLessons and Watch-Outs

• It’s not just about the technology It’s not just about the technology

• It is about authenticity – consumers can see It is about authenticity – consumers can see through marketing tacticsthrough marketing tactics

• Managing ≠ sanitizing Managing ≠ sanitizing

• Incentives are not a substitute for a Incentives are not a substitute for a compelling value propositioncompelling value proposition

• You don’t own your community, your You don’t own your community, your customers docustomers do

Proprietary & Confidential — © 2008 DachisCorporation

Importance of MeasurementKate NiederhofferDachis Corporation

Proprietary & Confidential — © 2008 DachisCorporation

• Acknowledge ambiguity of “good,” “vibrant,” “healthy”

• Appealing to think there’s a gold standard, but one size does not fit all

• Think of measurement as a framework for social incentives; a technical infrastructure to articulate a business goal

• Attention, Authority, Engagement, Virality, Health are Intermediate goals

Measuring Communities

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Potential Goals: Self- Support for cost-reductionKnowledge ManagementCustomer InsightCustomer AcquisitionEmployee retentionProductivityEarly Warning systemBrand Image

Potential Metrics: Well-being - positive sentimentLikelihood of response - answers per questionIdeas - number of novel suggestionsActivity - Volume of Posts, Number of messages per thread Involvement - Posts per authorPopularity - Traffic, page views Stickiness - Time spent in community

Backbone:Volume: Number of posts; Number of individuals talkingSentiment: Attitudes toward product, issue, brand, featureTopics: Factors driving discussion via content analysisTraffic: Number of individuals participating in community; pages viewedTime: Number of minutes spent in community

Many Goals, Many Metrics

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Takeaways

1.Think about metrics that tap into social constructs.

2.Explore unconventional angles.

3.Avoid the temptation to measure what’s available because it’s available.

4.Separate measurement from ROI.

© 2008 Powered, Inc.

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Questions?

Bill Johnston, Chief Community OfficerForum One NetworksEmail: bjohnston@forumone.com

Twitter: http://twitter.com/billjohnston

Rob Harles, Senior Vice PresidentSears Holdings Email: rharles@searshc.com

Kate Niederhoffer, Senior PartnerThe Dachis CorporationEmail: k.niederhoffer@gmail.comTwitter: http://twitter.com/katenieder