What has web 2.0 got to do with me?

Mark Riley

Strategic Partnership Manager

BT Tradespace

Quick question…

• Complete beginner

• See how the web can help my business

• I have or am planning a pure play internet business

• Here for the lunch

Times like these

Agenda

• What is web 2.0 anyway?

• What does that mean for small businesses?

• What BT has done about it?•An intro to BT Tradespace

What is Web 2.0?

• From Wikipedia, the free encyclopedia

• Web 2.0 refers to a perceived second generation of web-based communities and hosted services — such as social-networking sites, wikis and folksonomies — which aim to facilitate collaboration and sharing between users.

Essentially…

Conversation Community Collaboration

POWER - What's next?

• Feudalism – land ownership

• Industrialisation

• Printing Press, Steam engine, trade, states

• Emancipation and Enlightenment…

• Capitalism – means of production

• Marxism? (cancelled)

• Distribution Networks - supermarkets

• Knowledge Networks – Internet•Democratisation of Information

•Empowerment through collaboration

• Emancipation and Enlightenment…

= Digital Marxism – the knowledge revolution

The cacophony of computerised conversations

Web 2.0 terminology (or how to bluff your way at web 2.0)

• Blog

• Micro-blogging

• Podcast

• Mashup

• API

• UGC

• Crowdsourcing (Collective Intelligence)

• Cloud Computing

• Semantic web

• Generation C

Web 2.0 Terminology cont…

• Behavioural Targeting

• RSS

• Wiki

• P2P

What does this mean for small businesses?

Web 2.0: Small business gets it. Do you? Its good news by the way.

• Claim 1: Marketing innovation using social media is going to be driven by small business

• Claim 2: Large enterprises are going to struggle with Web 2.0 as a conversational marketing tool …

• Claim 3: ….unless they make big changes to the way marketing works and behave more like small businesses

Audience fragmentation hurts large enterprise

• On average, [European] online consumers spend 14.3 hours online a week compared with 11.3 hours watching TV and 4.4 hours reading newspapers and magazines (Forrester Research inc)

• 36% say that they watch less TV because they've been online (Forrester Research inc)

• Digital TV, IPTV, Web TV

• Top three influencers in purchasing decisions – “I trust” (Forrester Research inc)

• Recommendations from friends/family• Consumer opinions posted online• Requested email updates

• Top three reasons for trusting a company (BT Business Research June 07)

• Recommendations from a friend (75%)• Regular contact (63%)• Access to information about the company and its views (56%)

Online - What the Customer wants

A Voice!

To be understood

To be inspired

To be delighted

Respect

Will it blend? Over 100m hits!

Now look at how small business wins its customers …

• 52% of small businesses say up to half of their revenue is from referrals (BT Business research June 07)

• 31% say 75% of their work was from referrals (BT Business research June 07)

• Proximity to the customer and connection to WoM networks is natural for SMEs

•i.e. conversations that happen down the pub are now also happening on-line

Small business has an incentive to adopt Web 2.0

• Circa 40% of SMEs don’t have web sites today (BT Business research June 2007)

• Only 2% use online marketing (BT Business research June 2007)

• Only 8% claim to have a ‘fully comprehensive’ online marketing strategy (BT Business research June 2007)

• SMEs are struggling with Web 1.0, whilst the Web is growing in importance as a purchasing channel for consumers

• But Web 2.0 tools are suited to SMEs (and those same characteristics make them hard for large enterprise to use well)

Driving traffic to your website1. Paid search v Organic Search

2. Online channels like eBay, BT Tradespace, etc

3. Offline channels (collateral)

4. Website optimisation

Next steps:•Choose your words and URL well •Have good content because it contributes 30 percent to your weighting •Blogging helps your ranking•More spam = lower value •Google's results are becoming a blend of news, video, photos. •Linking or being linked.•Let the engines know you exist

Social networks and Communities

Good practice rules:

•Fish where the fish are

•Be yourself – transparent, authentic

•Be timely - contribute to the community – make it interesting

•Respond, link back to your blog, website

•Don’t sell; engage!

What has BT done about it?

An introduction to BTTradespace

• A place to find and get to know businesses– Rich business profiles built on

Web 2.0 tools– Ratings– Reviews– Recommendations

• A place to network and talk to businesses and other customers– Community discussions– Ask questions– Create and join events

• A place to buy and sell goods and services– Marketplace and ecommerce

• Business Directory + Community + Marketplace

• 200K businesses registered since May 07

BT Tradespace …the Place for Social Commerce

BT Tradespace: A Tool for Conversational Marketing

Showcase and sell

Recommend

Be reviewed

Demonstrateexpertise

Make contact easy

BT Tradespace … The Place for Social Commerce

• A place to find and get to know businesses

• Rich business profiles built on Web 2.0 tools

• Ratings

• Reviews

• Recommendations

• Sell online

• A place to network and talk to businesses and customers

• Community discussions

• Ask questions

• Create and join events

Launched April 2007, over 350K registered businesses

Small business gets it #1: Arena Flowers

“Although traditional means of generating traffic to the site are still effective, the Web 2.0 seems to have taken into a new level. User generated content plays a vital role in branding and marketing. For example, the facebook application has been a great branding exercise

for us with a good percent of traffic from it.“ Response to comment on Arena Flowers’ BT Tradespace Blog

Customer service agents blogging(and really well)

Building brand and winning new leads through Facebook

Small business gets it #2: Chocolate Truffle Company

Using blogs for customer research

Building a dialogue with customers

(and great chocs too)

Small business gets it #3: Steve the Brickie

Could Steve the brickie do a Blendtec?

Demonstrating expertise

Creating a new revenue stream

(if I ever need a brickie, he’s convinced me)

Go for it!

• Take the time to explore web 2.0 opportunities (its often free)

• Tell your story and be part of the conversation

• Take the leap – its cost effective sales and marketing

• Innovate to accumulate – don’t fear change

• There's an old Wayne Gretzky quote that I love. 'I skate to where the puck is going to be, not where it has been.' And we've always tried to do that at Apple. Since the very very beginning. And we always will." Steve Jobs 2007

How? • In 20 minutes – no expertise

needed

• Go to www.bttradespace.com

• Register and get chatting!

…then follow steps in your ‘Tradespace Manager’ and you are off….

What’s the media saying?

“BT Tradespace drags businesses kicking and screaming onto Web 2.0.”

THE REGISTER

“The thing I find most interesting about something like Tradespace is the way it’s partly bringing back some of that personal

interaction between customer and business that you had in the days when you

could chat to your local butcher / baker / candlestick maker while buying stuff.”

TECHSCAPE TV (blog)

The significance of this [BT’s on-demand and social media partnership with

Microsoft] cannot be over-emphasised.” SCOTLAND ON SUNDAY

LEADERSHIP

DELIVERY

VISION

What are customers saying?

“In the first three months of using BT Tradespace, Daisy Diva went from being a relatively unknown

business with no website to getting nearly 2,000 hits. And as well as upping sales, we got an entirely new business contract with a company called

Naturalicious, an online organic cosmetics company that was impressed with our

home-made products.”DAISY DIVA, NATURAL SKINCARE “After just one month using the BT Tradespace

service, the HedgePig Tradespace page had received over 1600 hits. This corresponded with the main website seeing a substantial

rise in visitors and sales, resulting in a monthly turnover increase of around 20%.”

HEDGEPIG, NOVELTY GIFTS

“Tradespace helps us to improve our business model…Being part of the BT Tradespace

community really does allow us to add that personal touch, particularly with the blogs

and podcasts options.”ARENA FLOWERS, ETHICAL FLOWER SALES

SALES

SERVICE

TRAFFIC

Thanks!

To continue the conversation …

mark.4.riley@bt.com

Search “Mark Riley BT” on Linked in

Or to find out how small businesses are using social media to promote themselves visit:

www.bttradespace.com – the place for social commerce

Further reading…

• Wikinomics – Don Tapscott and Anthony D Williams (Atlantic Books)

• We-Think - Charles Leadbeater (Profile Books)• The Long tail - Chris Anderson (Random House)• Groundswell – Josh Bernoff and Charlenne Li (Harvard Business

Press)

• The Fumoir (blog) http://www.fumoir.com/ • Techcrunch UK and Ireland http://uk.techcrunch.com/ • New Media Age Magazine http://www.nma.co.uk • Revolution Magazine http://www.brandrepublic.com/revolution/ • Jeremy Owyang (blog) http://www.web-strategist.com/blog/ • paidContent:UK http://www.paidcontent.org/ • ChannelAdvisor http://www.channeladvisor.com/ • RedHerring http://www.redherring.com/

Web 2.0 The Machine is Using us

• Youtube Video

Shift happens

• Video