hsm global-madrid featuring charlene li

Creating A Coherent Social Media Strategy

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Charlene LiAltimeter Group2011 April 12Twitter: @charleneliEmail: [email protected]

© 2011 Altimeter Group

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It’s time to move past experiments3


It’s about RELATIONSHIPS



Strategy Lead Prepare

Agenda5


Strategy Lead Prepare

Agenda6


Strategy Process Stages

Discovery IdeationFormulatio

n & Alignment

Planning Roadmap

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n & Alignment

Planning Roadmap

Set context • Determine key objectives• Level of strategy (corporate, biz unit, brand)• Identify key metrics• Assess readiness

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Align social with key strategic goals9

Examine your 2011 goals

Pick ones where social will have an impact


Corporate

Risk managemen

t

Leadership development

& culture

Value metrics

Business unit

Consistency across brands

Social strategist &

COE

ROI metrics

BrandChannel focus

Community manager & education

Engagement metrics

Objectives differ by level10


Ask the Right Questions about Value

“We tend to overvalue the things we

can measure, and undervalue the

things we cannot.”

- John Hayes, CMO of American

Express


11


Use appropriate metrics at each level12

Corporate

LOB/Geo Stakeholde

rsSocial

Strategist/Community Manager

Business metrics: revenue, CSAT, reputation.

Social media analytics: Insights, share of voice, resonance, WOM.

Engagement metrics: fans, followers, clicks.


Highlight where you are strong, where you need to develop.

Don’t create strategies that you can’t execute.

Demonstrate impact of strategic work. Categories for readiness assessment

Assess your readiness to be social13

• Communication

• Mindset

• Roles

• Stakeholders

• Monitoring

• Reporting

• Customer Profile

• Market Analysis

• Processes

• Organizational Model

• Education


Benchmarking Social Readiness (Before)

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December 2009


Benchmarking Social Readiness (After)

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April 2010


Strategy Process Stages - Discovery


n & Alignment

Planning Roadmap

Collect and prioritize strategic options• Metrics-based value assessment• Prioritize against objectives

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Impact• How does it

support an objective?

• What metrics matter?

Readiness• Are there

people who can do this?

• Is there budget?

Risks• What are the

risks if we do this?

• What if we don’t?

Priority• Does this

initiative enable other work?

Evaluate each initiative17


Define Your Strategy With Objectives18

Learn

Dialog

Support

Innovate


How does social media matter to B2B?

Chief stakeholders may not be using social media.• But lieutenants will be.

Social media is impacting how B2B decisions are being made.• Background research• Expertise• Search results impact


Why care about social technologies?

• 62% read user ratings/reviews for business products/services

• 62% visit company profiles on social media sites

• 55% visit company blogs• 51% participate in online business

communities or forums• 49% ask questions on Q&A sites• 29% use Twitter to find or request business-

related information Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)

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People in B2B use social media for work

Use Twitter to find or request business information

Ask questions on Q&A sites

Participate in online business communities or forums

Visit company blogs

Visit company profiles on social media sites

Read user ratings/reviews for business products/services

29%

49%

51%

55%

62%

62%

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Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393)


Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda22


Track brand mentions with basic tools

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What would happen if every employee could

learn from customers?


Integrate monitoring with workflow24

From Radian 6, to be acquired by Salesforce.com

Other providers

AlterianBrandsEyeBuzzmetrics CymfonySysmosVisible Tech.


Be sure to track the actual conversations, not just the tweets

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@JaimieH is a top diabetics advisor who was talking with an insulin pump maker


How KLM listened and surprised flyers

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No monitoring in place

Tracks brand mentions using basic tools (Google, Twitter)

Centralized monitoring but not actionable in business unites

Deep monitoring to prep & support campaigns

Monitoring & analytics support integrated into everyday workflow

Go beyond basic monitoring to analytics

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Make course corrections nearly real-time.

Use predictive analytics to anticipate demand.


Shoppers want to be “known”28

I walk into the store

And plans my visit

Store knows it’s me

Give me offers


Community insight platforms29

» Communispace and Passenger offer

online focus groups solutions.


Private communities give better control • Get input from specific communities• Can target specific hard-to-reach communities

But they are hard to create – and maintain• Who needs to be included? Excluded?• Provide non-monetary incentives/rewards for

participating in the community• Deserves and requires dedicated community

manager• Integrate into your company’s support and

innovation process

Pros and cons of private communities

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Learn also from your employees


Go beyond traditional data to understand your customers

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Demographic

Geographic

Psychographic

Behavioral

Socialgraphic


1. Where are your customers online?

2. What social information or people do your customers rely on?

3. What is your customers’ social influence? Who trusts them?

4. What are your customers’ social behaviors online?

5. How do your customers use social technologies in the context of your products.

Socialgraphics asks key questions33


Engagement Pyramid34

Curating

Producing

Commenting

Sharing

Watching


Engagement Pyramid - Watching35

Curating

Producing

Commenting

Sharing

Watching

Watch videosRead blog posts

Listen to podcasts

Read tweetsRead discussion

forum posts


Engagement Pyramid - Sharing36

Curating

Producing

Commenting

Sharing

Watching

Share a linkShare photosShare videosWrite a status

updateRetweet


Engagement Pyramid - Commenting37

Curating

Producing

Commenting

Sharing

Watching

Comment on a blog

Write a reviewRate a productParticipate in a

discussion forum@Reply on

Twitter


Engagement Pyramid - Producing38

Curating

Producing

Commenting

Sharing

Watching

Write a blogCreate videos or

podcastsTweet for an

audience


Engagement Pyramid - Curating39

Curating

Producing

Commenting

Sharing

Watching

Moderate a wiki or discussion

forumCurate a

Facebook fan page


Spain Germany UKUnited States

Curating <1% <1% <1% <1%

Producing 30.3% 21.1% 52.7% 26.1%

Commenting

45.1% 31.9% 54.0% 34.4%

Sharing 58.6% 61.8% 79.3% 63.0%

Watching 82.2% 78.9% 89.3% 78.1%

Engagement Pyramid Data40

Source: Global Wave Index Wave 2, Trendstream.net, January 2010


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Conduct research to identify the social behaviors of your

target customer

Also identify:

• Where are they online: Surveys or brand monitoring

• Who do they trust: Surveys

• Who do they influence: Survey or brand monitoring

• How they use these tools in context of your products: Most often surveys.

When you first understand your customers, your marketing efforts will naturally unfold.

Putting socialgraphics to work


Listen and learn from your customers.

Start with basic monitoring tools, but quickly evolve them.

Invest in analytics that matter. Use metrics that are relevant to your business.

Understand the socialgraphics of your customers.

Summary - Learn42


Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda43


Conversations, not messages

Human, not corporate

Continuous, not episodic

The New Normal44


Blogs establish thought leadership45

CEO Richard Edelman has been blogging consistently since Setpember 2004.


SonyEurope rewards Twitter followers with discount that drives significant sales

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SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000

Twitter follower lead to over €1m worth of product ordered.


VW inserted a tweet analyzing tool into their banner ad to suggest a specific model

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Spain Tourism used multiple channels to encourage dialog/sharing

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Kohl’s engages directly with customers

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B2B can also use Facebook50

• Develop relationships with job candidates, prospects, and current employees

• Insert your content into newsfeed of fans

• B2B is really people to people


Encourage commenting to get into the Facebook news feed

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

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Give out Flip cameras/smartphones• Set up an internal “OurTube”• Transcribe conversations into emails and posts

Ask people for best practices, reactions, advice, opinion in areas of passion.

Recognize key contributors.

Getting people to share within your company

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Tivo joined an existing community54


Advocacy – A five-phase approach55

Phase 1: Internal

Readiness

Phase 2: Identify

Advocates

Phase 3: Build

Relationships

Phase 4: Put

Advocates First

Phase 5: Foster Growth


Tesco engages influencer blogs56

Blog post series highlights & drives traffic to blogs by

Influencers. Twitter feed encouages engagement too.


Have an authentic conversation with your customers that they want to have.

Engage across and through social communities

Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers

in real time.

Summary - Dialog57

Support and Innovate With Your Customers

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Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda61


Vodafone UK uses Twitter to proactively communicate with customers

Vodafone UK humanizes their Twitter account by

including pictures of their support team and

identifying different respondents by an “^”

and the team member’s initials.

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Ritz-Carlton managers monitor Twitter for real-time service

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Property manager helped

unhappy honeymooners


Support during a crisis64

Used #euva and #ashtag to

track conversations

Source: simplifying.com


DellOutlet supports sales with Twitter

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Question & Answer sites provide opportunity

for support


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Q&A encourages dialog too


iRobot ties discussion boards into customers support

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iRobot escalates unanswered

questions into support centers


Salesforce.com Service Cloud ties social channels back to customer data

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Solarwinds’ community is strategic70


Retailer Best Buy has 2,500 employees providing support via Twitter

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Real-time isn’t fast enough. Integrate “social” support into your

support infrastructure. Scaling support to meet the

groundswell will require that you create your own groundswell.

Summary - Support72


Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda73


P&G uses reviews to improve products

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Danish bank ask for help to improve mobile banking on Facebook

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Finnish post created an idea exchange

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Fiat invites ideas for a new car77


Archer collects product development ideas in a private community

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Starbucks involves 50 people around the organization in innovation

Over 100 ideas have been

implemented


Dell taps employee ideas too


P&G goes outside for innovation81

P&G made outside-in

innovation a priority


P&G developed technology from diaper research

Reached out to competitor Clorox to form a new joint venture

Helped Glad become Clorox’s second largest brand

Success story: Glad Press’n Seal82


ModCloth has customers merchandise new products

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Innovating can come from any customer or employee interaction.

Dedicated innovation communities require significant commitment and nurturing.

Extend your firewall to bring customers into your organization.

Summary - Innovating84




n & Alignment

Planning Roadmap

Strategy statement• What you will do• What you won’t

doScenarios development• Implementation roadblocks• Company and leadership implications• Risk identification• Build resilience

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What’s the Next Big Thing?86


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Identify and prioritizing disruptions that matter

User Experience•Is it easy for people to use?

•Does it enable people to connect in new ways?

Business Model•Does it tap new revenue streams?

•Is it done at a lower cost?

Ecosystem Value•Does it change the flow of value?

•Does it shift power from one player to another?


“How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.”

1) Likenomics (credit to Rohit Bhargava)

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Understand the supply, demand, and thus, value of Likes as social currency

See http://bit.ly/rohit-likenomics for Rohit’s take

http://bit.ly/rohit-likenomics


Likenomics evaluation90

User experience impact - moderate• People with high social currency will enjoy

benefits, richer experiences, receive psychic income.

• People with low social currency will find ways to get it.

Business model impact – moderate• New economics create opportunity for people

who understand Likenomics to leverage gas.• The cost of accessing social currency will

increase, and raise barriers to entry. Ecosystem value impact – none


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2) Social Search – Beyond Friends to Interests

Social sharing rises as a search ranking signal, esp in the enterprise

Create a social content hub to gain traction

Use microformats to highlight granularity (e.g. hProduct & hReview)


Social Search evaluation92

User experience impact - Moderate• Search becomes more useful, relevant to people.

Business model impact – Moderate• SEO takes on a different dimension, rewards

companies with social currency, personalized experiences.

Ecosystem value impact – Moderate• New power brokers are social data/profile

players who capture activity data and profiles.• Google has little of either.


Social monitoring merges with Web analytics• HOT: Omniture, Coremetrics/IBM, Webtrends

Technology like Hadoop makes it easy for companies to tap “Big Data”• E.g. New York Times making its archives public• Twitter archived by Library of Congress• Facebook Cassandra, Amazon Dynamo, Google

BigTable Data visualization tools make it easy to

digest Balancing privacy and personalization

3) Big Data93


Big Data evaluation94

User experience impact - Low• Most users won’t directly experience Big Data.

Business model impact – High• New businesses and initiatives can be started at

very low cost. Ecosystem value impact – Moderate

• Owners of Big Data repositories can assert control, demand payments for access.


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4) Game-ification


TurboTax used “games” to encourage sharing and support

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Social design can enter training, collaboration, support, hiring


Gamification evaluation97

User experience impact – High• Experiences get richer, more engaging

Business model impact – Moderate• Work gets done faster, cheaper.• New organizational structures and cultures

emerge. Ecosystem value impact – Low

• Service providers will remain focused, boutique firms.


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5) Curation


Curation evaluation99

User experience impact – Moderate• User authority established from better curation,

better content is organized well. Business model impact – Moderate

• Easier for businesses to create their content. Ecosystem value impact – Moderate

• Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.


User Experience

Business Model

Value Networks

Likenomics Moderate Moderate Low

Social Search

Moderate Moderate Moderate

Big Data Low High Moderate

Enterprise Soc Net

High Moderate Moderate

Gamification

High Moderate Low

Curation Moderate Moderate Moderate

Summary of disruptions100

Leading The Open Organization

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Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda104


OUT of CONTROL?



How to give up control


but still be in command

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Open Leadership109

Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals


10 elements of openness110

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

Information Sharing

• Centralized• Democratic• Consensus• Distributed

Decision Making


Explaining strategic decisions111

Open book management

Managing leaks


112

Updating with every day stuff


Kohl’s has conversations on Facebook

113


Open Mic: When people contribute114


Crowdsourcing new Walkers flavour115


Open platforms make it easy to partner and share

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Open architecture Open data access


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Centralized Democratic

Consensus Distributed

Decision making models


170 employees 100 modules with

“module owners” One person makes

the final decision in each module

Social technologies make distributed decision making possible

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Manage complex tasks Organizing for speed

65,000 employees 16 Councils,

50 Boards make strategic decisions

Joint leadership of each group


Determine how open you need to be with information to meet your goals

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Openness audit available at http://bit.ly/opennessaudit


Complete the Openness Audit120


Traits of Open Leaders121

Authenticity Transparency


Transparency as an imperative122


How Best Buy became open and social

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Best Buy’s First Social Media Experts124

Steve Bendt & Gary Koelling


The Executive Advocate125

Barry Judge CMO of Best Buy


Barry’s first post126


The Premier Black Fiasco127

6.8 million emails sent instead of 1,000 test


Developing Open Leaders



“You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.”

- Marc Benioff, CEO of Salesforce.com



Strategy• Learn

• Dialog

• Support

• Innovate

Lead Prepare

Agenda130


#1 Create a Culture of Sharing131


#2 Discipline is Needed to Succeed

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.

No

Yes

NoYes

Yes

Assess the message

Adapted from US Air Force Comment Policy


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Five ways companies organize around social media133


#3 Ask the Right Questions about Value

“We tend to overvalue the things we

can measure, and undervalue the

things we cannot.”

- John Hayes, CMO of American

Express


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+ Value of purchases- Cost of acquisition

____________________

= Customer lifetime value

The new lifetime value calculation

• 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 new customers from referrals

+ Value of support+ Value of ideas

+ Value of insights

Spreadsheets for all calculations available at open-leadership.com


35% increase in LTV captured136

Year 1 Year 2 Year 3

Number of customers 10,000 5,000 3,500

Gross profit of purchases $400,000 $200,000 $140,000

Cost of acquisition $150,000 $25,000 $17,500

Net profit $250,000 $175,000 $122,500

Traditional LTV/customer $74.89

Value of referrals $30,000 $45,906 $45,287

Value of insights $10,000 $5,438 $4,080

Value of support $5,438 $8,156 $6,120

Value of ideas $2,000 $1,000 $1,000

Net profit and value $297,438 $235,500 $178,986

Revised LTV per customer $101.48


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 metrics137


No relationships are perfect

Google’s mantra: “Fail fast, fail

smart”

#4 Prepare for Failure


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Create

Sandbox

Covenants


139


Structure your risk-taking and failure systems to create resilience

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1. Conduct pre- and post-mortems.• E.g. Johnson & Johnson after Motrin Moms.

2. Identify the top 5-10 worst case scenarios.• Develop mitigation and contingency plans.• E.g. Ford’s “lost” Fiesta.

3. Build in responsiveness.• E.g. Best Buy’s Black reward card.

4. Prepare yourself for the personal cost of failure.


Audit the last few failures you and your organization experienced.• 25% - what happened.• 25% - what you learned.• 50% - what you will do next.

Keep a failure file. Identify risk-taking training needs. Build failure into your planning and

operating processes. Create support networks for the inevitable

failures.

Action plan to prepare for failure141


AND STILL BE IN COMMANDGive Up Control


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Charlene Li

[email protected]

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

[email protected]

For more information & to buy the

book

visit open-leadership.com
