November 3, 2010

The Social Media (r)evolution: back to roots for motoring clubs ?

FIA General Assembly – Member Benefit Forum

Alexandre Vandermeersch

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Agenda

Value creation

Social Media facts & laws

Closing thoughts, Q&A

Motoring Clubs

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Social Media is more than Facebook…but mainly Facebook

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Main categories – 101 on social media

• Social networks • Mutual acceptance – mapping real life connections

• Micro-blogging & curating

• Followership – simply requires to ‘subscribe’ to someone or ‘submit’ ‘vote’ / ‘tweet’ for a topic/link

• Crowd-sourced media

• Upload/create & share - Media/content is uploaded/created by a small community then seen by a large group (+ as well voted, curated, funded,…)

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Is Social Media a fad?

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Internet is soon becoming Europe’s first media

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20111009080706052004

Internet-slowing CAGR

Internet-flat CAGR

TV-falling

TV-flat

Internet consump-tion is estimated to average 14.2 hours per week against 11.5 hours for TV by 2010

SOURCE: Microsoft Europe Logs On Report 2009

Hours per week of usage in Europe

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Social media – seniors still flock ‘en masse’ in the US

+13%

SOURCE: Pew Research Center

Penetration of 50 yrs + in social media in the US

April 2009 May 2010

76%

86%

Age 18-29

+27%

Age 30-49

April 2009 May 2010

48%61%

+88%

Age 50-64

April 2009 May 2010

25%

47%+100%

Age 65+

April 2009 May 2010

13%

26%

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They are addictive

Source: 2008 McKinsey iConsumer survey

26% play console games

EVERY WEEK …

33% watch Internet video clips

43% visit social networks(spending an hour a day)

38% send SMS messages

39% read magazines

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4 laws of social media

Law of gravity

Law of networks

Law of switch costs

Zuckerberg’s law of information sharing

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1 – Laws of networks - be the fastest and best at building the network

• Network’s value increases with new nodes (not all nodes are created equal)

• Two-sided networks are tougher to crack but unlock more value

• Critical focus put on ‘getting new nodes’(ie member recruiting & on boarding)

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2 – Law of gravity – 3 reasons why content publishers/advertisers go to social media

• Built-in sharing vs opt-in sharing

• Convenient Reach – less ‘click costs’ to join

• Top of mind – users only remember few sites to check in regularly, rarely used bookmarks

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3 – Law of switch costs – why it’s hard to leave

• Building your personal network online took time & energy

• If you switch, who will follow ?

• Registering all data is a pain

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4 – Zuckerberg’s law of information sharing: increasing online disclosure

• « Every year, people share twice as much information as they did last year »

• People progressively see ‘more value than costs & risks’: socializing, ease of sharing (e.g mobile), privacy concerns adressed,…

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Agenda

Social Media facts & laws

Value creation

Closing thoughts, Q&A

Motoring Clubs

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A Facebook fan is worth…

SOURCE: Syncapse research, June 2010

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Online engagement is creating value across the value chain…

SOURCE: McKinsey Technology Initiative

R&D/ Product development Procurement/Production Marketing/PR Sales Service

Support functions – HR, IT, Training

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….And a “Coppernician revolution” - My experience with Microsoft

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Social media complete each other and build links fostering trust & loyalty around a company/Brand

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Especially if you show case testimonials, right on your web site

Put it on your site

Powered by:

Conversion rate +25%

Sales +10%

Credibility

SEO

Word of Mouth amplification

http://www.dialogfeed.com

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Agenda

Social Media facts & laws

Motoring clubs

Closing thoughts, Q&A

Value creation

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Some definitions

Club A club is an association of two or more individuals united by a common interest or goal

Source: Wikipedia

A virtual community is a social network of individuals who interact through specific media, potentially crossing geographical and political boundaries in order to pursue mutual interests or goals.

Virtual community

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Back to roots ?

The Nineties

2010+ (?)

The thirties

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Recruiting – aren’t your members your best ambassadors ?

Ambas-sadors

Brand

Other consumers

Relationship building:• Free trials, sampling,..• Feedback• Read responses• Intervene in community

• Word of Mouth/ mouse (« This service is great and values its consumers – I will go the extra mile to promote them »)

Re-enforcement of WoM activities

Virtuous circle for the brand!

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Blue sky thinking – can your members solve big problems ?

• Rather than trying to solve the problem, can you build & facilitate an ecosystem for a solution ?

- Mobility self-support- Pollution avoidance ? - Group buying ?- Self-support ?- Connect passionate

people?

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Some threats

• Commoditization – aggregators

• Disintermediation – self-regulated travel assistance?

• Attack of adjacent players – traditional insurance companies going social

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Agenda

Social Media facts & laws

Closing thoughts, Q&A

Motoring clubs

Value creation

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Consumer trends: you simply may have no choice

Source agenet wildfire/DDB Tribal Canada

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Our perspective – E^4

SOURCE: Brandialog white paper

End-to-End External Engagement (E^4) is the ability to truly engage with external stakeholders continuously in time, for consumer insights, innovation, marketing, sales and customer service

R&DOpera-tions

Marketing Sales Service

CEO = Chief Engagement Officer

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What should you do when you are back ? Our 5 simple steps

• What business objectives are you after, with whom (by type of relationship) ?

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• Who are those people and what to they do & say ?

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• How do I engage them & build social currency/value, sales, reduce costs, raise satisfaction ?

• How do I scale & leverage ?

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Where we play

Get your own 300-500 private community, online, available for co-

creation, 360° feedback, and ambassadorship building

Get a dedicated dialogue section/web site, with the

social media testimonials back on your web site, open a

dialogue section, humanizing your brand, raising credibility

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Questions ?

• Alexandre Vandermeersch

• Alexandre @dialogsolutions.com

• Twitter: @alexvdm• Blog: http://alexvdm.com

www.dialogsolutions.com

www.brandialog.com

www.dialogfeed.com