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 Ideation Formulation & Alignment Planning Roadmap

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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 management

Leadership development

& culture

Value metrics

Business unitConsistency

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 Stakeholders

Social 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)14

December 2009


Benchmarking Social Readiness (After)15

April 2010


Strategy Process Stages - Discovery


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


People in B2B use social media for work

29%

49%

51%

55%

62%

62%

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

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


Strategy• Learn• Dialog

• Support

• Innovate Lead Prepare

Agenda21


Track brand mentions with basic tools22

What would happen if every employee could learn from

customers?


Integrate monitoring with workflow23

From Radian 6, to be acquired by Salesforce.com

Other providers

AlterianBrandsEyeBuzzmetricsCymfonySysmosVisible 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 flyers25


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 analytics26

Make course corrections nearly real-time.

Use predictive analytics to anticipate demand.


Shoppers want to be “known”27

I walk into the store

And plans my visit

Store knows it’s me

Give me offers


Community insight platforms28

» 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 communities29


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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 questions32


Engagement Pyramid33

Curating

Producing

Commenting

Sharing

Watching


Engagement Pyramid - Watching34

Curating

Producing

Commenting

Sharing

Watching

Watch videosRead blog posts

Listen to podcastsRead tweets

Read discussion forum posts


Engagement Pyramid - Sharing35

Curating

Producing

Commenting

Sharing

Watching

Share a linkShare photosShare videos

Write a status updateRetweet


Engagement Pyramid - Commenting36

Curating

Producing

Commenting

Sharing

Watching

Comment on a blogWrite a reviewRate a productParticipate in a

discussion forum@Reply on Twitter


Engagement Pyramid - Producing37

Curating

Producing

Commenting

Sharing

Watching

Write a blogCreate videos or

podcastsTweet for an

audience


Engagement Pyramid - Curating38

Curating

Producing

Commenting

Sharing

Watching

Moderate a wiki or discussion forum

Curate a Facebook fan page


Spain Germany UK United 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 Data39

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


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 work40


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 - Learn41


Strategy• Learn

• Dialog• Support


Agenda42


Conversations, not messages

Human, not corporate

Continuous, not episodic

The New Normal43


Blogs establish thought leadership44

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 customers48


B2B can also use Facebook49

• 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 community53


Advocacy – A five-phase approach54

Phase 1: Internal

Readiness

Phase 2: Identify

Advocates

Phase 3: Build

Relationships

Phase 4: Put

Advocates First

Phase 5: Foster Growth


Tesco engages influencer blogs55

Blog post series highlights & drives traffic to blogs by

Influencers. Twitter feed encouagesengagement 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 - Dialog56

Support and Innovate With Your Customers

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Strategy• Learn

• Dialog

• Support• Innovate

Lead Prepare

Agenda3


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.

4


Ritz-Carlton managers monitor Twitter for real-time service

5

Property manager helped unhappy honeymooners


Support during a crisis6

Used #euva and #ashtag to track conversationsSource: simplifying.com


DellOutlet supports sales with Twitter7


Question & Answer sites provide opportunity for support


Q&A encourages dialog too9


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 strategic12


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 - Support14


Strategy• Learn

• Dialog

• Support


Agenda15


P&G uses reviews to improve products16


Danish bank ask for help to improve mobile banking on Facebook

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Finnish post created an idea exchange18


Fiat invites ideas for a new car19


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 innovation23

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 Seal24


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 - Innovating26




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

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

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What’s the Next Big Thing?28


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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)31

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 evaluation32

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 evaluation34

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 Data35


Big Data evaluation36

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 evaluation39

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 evaluation41

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 LowSocial Search Moderate Moderate ModerateBig Data Low High ModerateEnterprise Soc Net High Moderate Moderate

Gamification High Moderate LowCuration Moderate Moderate Moderate

Summary of disruptions42


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Thank you44

Charlene Li

[email protected]

charleneli.com/blog

Twitter: charleneli

For more information & to buy the

book visit open-leadership.com

Leading The Open Organization

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Strategy• Learn

• Dialog

• Support


Agenda3


OUT of CONTROL?



5


6


How to give up control


but still be in command

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Open Leadership8

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 openness9

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

Information Sharing

• Centralized• Democratic• Consensus• Distributed

Decision Making


Explaining strategic decisions10

Open book management

Managing leaks


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Updating with every day stuff


Kohl’s has conversations on Facebook12


Open Mic: When people contribute13


Crowdsourcing new Walkers flavour14


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 Audit19


Traits of Open Leaders20

Authenticity Transparency


Transparency as an imperative21


How Best Buy became open and social22


Best Buy’s First Social Media Experts23

Steve Bendt & Gary Koelling


The Executive Advocate24

Barry Judge CMO of Best Buy


Barry’s first post25


The Premier Black Fiasco26

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


Agenda29


#1 Create a Culture of Sharing30


#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 media32


#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


33


+ 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 captured35

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 $122,500Traditional 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 $178,986Revised 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 metrics36


No relationships are perfectGoogle’s mantra:

“Fail fast, fail smart”

#4 Prepare for Failure


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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 failure40


AND STILL BE IN COMMANDGive Up Control


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charlene li

Business

social media matter

social engagement metrics

benchmarking social

social highlight

lobgeo social media

key metrics

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