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1




The Power Of Groundbreaking
Social Technologies


Charlene Li
Altimeter Group
Twitter: @charleneli
Email: charlene@altimetergroup.com
2




© 2011 Altimeter Group
OUT of CONTROL?




© 2011 Altimeter Group
4




© 2011 Altimeter Group
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© 2011 Altimeter Group
It’s about RELATIONSHIPS




© 2011 Altimeter Group
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                          Agenda
                          Strategy
                          Lead
                          Prepare




© 2011 Altimeter Group
8



                          Agenda
                          Strategy
                          Lead
                          Prepare




© 2011 Altimeter Group
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       Strategy Process Stages




                                    Formulation
             Discovery   Ideation                 Planning   Roadmap
                                    & Alignment




© 2011 Altimeter Group
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       Strategy Process Stages

                                    Formulation
             Discovery   Ideation                 Planning   Roadmap
                                    & Alignment




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




© 2011 Altimeter Group
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       Align social with key strategic goals


                              Examine your
                              2011 goals

                               Pick ones where
                               social will have an
                               impact



© 2011 Altimeter Group
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       Objectives differ by level

         Corporate
             Risk
          management      Business unit
                           Consistency
            Leadership
           development
             & culture
                          across brands


                          Social strategist
                                              Brand
                              & COE
                                                              Community
                                                                          Engagement
                                              Channel focus   manager &
                                                                            metrics
                                                              education
          Value metrics     ROI metrics




© 2011 Altimeter Group
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       Use appropriate metrics at each level


                          Corporate        Business metrics: revenue,
                                           CSAT, reputation.

                           LOB/Geo         Social media analytics: Insights,
                         Stakeholders      share of voice, resonance,
                                           WOM.
                            Social         Engagement metrics: fans,
                    Strategist/Community   followers, clicks.
                          Manager



© 2011 Altimeter Group
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       Strategy Process Stages - Ideation

                                          Formulation
             Discovery         Ideation                 Planning    Roadmap
                                          & Alignment




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




© 2011 Altimeter Group
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       Evaluate each initiative


                         Impact             Readiness
                         • How does it      • Are there
                           support an         people who
                           objective?         can do this?
                         • What metrics     • Is there
                           matter?            budget?


                         Risks              Priority
                         • What are the     • Does this
                           risks if we do     initiative
                           this?              enable other
                         • What if we         work?
                           don’t?




© 2011 Altimeter Group
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       Define Your Strategy With Objectives

                                  Dialog


                         Learn   Support


                                 Innovate


© 2011 Altimeter Group
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




© 2011 Altimeter Group
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       People in B2B use social media for work

                     Read user ratings/reviews for
                                                                                                          62%
                       business products/services
                 Visit company profiles on social
                                                                                                          62%
                                     media sites

                                  Visit company blogs                                                55%

                     Participate in online business
                                                                                                  51%
                            communities or forums

                          Ask questions on Q&A sites                                             49%

                         Use Twitter to find or request
                                                                                  29%
                                business information


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

© 2011 Altimeter Group
19



                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
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       Track brand mentions with basic tools




                                  What would happen
                                   if every employee
                                    could learn from
                                       customers?



© 2011 Altimeter Group
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       Integrate monitoring with workflow

                                                  Other providers

                                                  Alterian
                                                  BrandsEye
                                                  Buzzmetrics
                                                  Cymfony
                                                  Sysmos
                                                  Visible Tech.




From Radian 6, to be acquired by Salesforce.com

© 2011 Altimeter Group
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       Go beyond basic monitoring to analytics



                                                                                                       Monitoring &
                                                                                                       analytics support
                                                                                  Deep monitoring to   integrated into
                                                                                  prep & support       everyday workflow
                                                                                  campaigns
                                                             Centralized
                                                             monitoring but not
                                                             actionable in
                                                             business unites
                                         Tracks brand
                                         mentions using
                                         basic tools
                                         (Google, Twitter)

                         No monitoring
                                                                           Make course corrections
                         in place                                             nearly real-time.
                                                                          Use predictive analytics to
                                                                             anticipate demand.
© 2011 Altimeter Group
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       Your customers want to be “known”




                         I walk into my local grocery store
© 2011 Altimeter Group
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       The store knows it’s me




               • Social check-ins (Four Square, Yelp, Facebook Places)
               • Near Field Communications
© 2011 Altimeter Group
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       I get coupons to use right away




© 2011 Altimeter Group
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       And connect my phone to in-store GPS
       shopping cart




© 2011 Altimeter Group
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       Community insight platforms




      » Communispace and
            Passenger offer
           online focus groups
                solutions.

© 2011 Altimeter Group
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       Pros and cons of private communities
        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



© 2011 Altimeter Group
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       Go beyond traditional data to understand
       your customers
                         Demographic

                          Geographic

                         Psychographic

                          Behavioral

                         Socialgraphic

© 2011 Altimeter Group
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       Socialgraphics asks key questions
       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.


© 2011 Altimeter Group
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       Engagement Pyramid

                          Curating

                          Producing

                         Commenting

                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid - Watching
                                         Watch videos
                          Curating     Read blog posts
                                      Listen to podcasts
                                         Read tweets
                          Producing
                                       Read discussion
                                         forum posts
                         Commenting

                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid - Sharing

                          Curating         Share a link
                                          Share photos
                                          Share videos
                          Producing   Write a status update
                                             Retweet
                         Commenting

                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid - Commenting

                          Curating    Comment on a blog
                                        Write a review
                                        Rate a product
                          Producing     Participate in a
                                       discussion forum
                         Commenting   @Reply on Twitter


                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid - Producing

                          Curating      Write a blog
                                      Create videos or
                          Producing      podcasts
                                        Tweet for an
                                         audience
                         Commenting

                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid - Curating

                          Curating
                                      Moderate a wiki or
                                       discussion forum
                          Producing   Curate a Facebook
                                           fan page
                         Commenting

                           Sharing

                          Watching


© 2011 Altimeter Group
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       Engagement Pyramid Data

                                                                                    United
                                              Spain                 Italy    UK
                                                                                    States
        Curating                                <1%                 <1%     <1%      <1%

        Producing                             30.3%               38.7%     52.7%   26.1%

        Commenting                            45.1%               37.4%     54.0%   34.4%

        Sharing                               58.6%               63.6%     79.3%   63.0%

        Watching                              82.2%               77.3%     89.3%   78.1%
        Source: Global Wave Index Wave 2, Trendstream.net, January 2010




© 2011 Altimeter Group
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       Putting socialgraphics to work
        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.


© 2011 Altimeter Group
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       Summary - Learn
        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.




© 2011 Altimeter Group
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                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
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       The New Normal
        Conversations, not messages

        Human, not corporate

        Continuous, not episodic




© 2011 Altimeter Group
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       Boeing uses blogs to engage




© 2011 Altimeter Group
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       Kohl’s engages directly with customers




© 2011 Altimeter Group
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       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.




© 2011 Altimeter Group
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       Spain Tourism used multiple channels to encourage
       dialog/sharing




© 2011 Altimeter Group
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       B2B can also use Facebook




                             • Develop
                               relationships with job
                               candidates,
                               prospects, and
                               current employees
                             • Insert your content
                               into newsfeed of fans
                             • B2B is really people
                               to people
© 2011 Altimeter Group
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       Also encourage dialog inside the company




© 2011 Altimeter Group
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   Premier Farnell supports engineers with
   community, and employees with “OurTube”




© 2011 Altimeter Group
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       Getting people to share within your
       company

        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.




© 2011 Altimeter Group
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       Tivo joined an existing community




© 2011 Altimeter Group
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       Advocacy – A five-phase approach




                                                     Phase 4:
      Phase 1:           Phase 2:     Phase 3:                   Phase 5:
                                                        Put
       Internal           Identify       Build                    Foster
                                                     Advocates
      Readiness          Advocates   Relationships                Growth
                                                       First




© 2011 Altimeter Group
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       Tesco engages influencer blogs




                                   Blog post series
                                 highlights & drives
                                  traffic to blogs by
                                 Influencers. Twitter
                                   feed encouages
                                  engagement too.

© 2011 Altimeter Group
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       Summary - Dialog
        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.




© 2011 Altimeter Group
It’s about RELATIONSHIPS




© 2011 Altimeter Group
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                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
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       Vodafone Italy and Spain take disparate,
       effective approaches to online support




© 2011 Altimeter Group
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       Ritz-Carlton managers monitor Twitter for
       real-time service




                                   Property manager
                                    helped unhappy
                                    honeymooners

© 2011 Altimeter Group
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       DellOutlet supports sales with Twitter




© 2011 Altimeter Group
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       iRobot ties discussion boards into
       customers support




                                    iRobot escalates
                                       unanswered
                                      questions into
                                     support centers

© 2011 Altimeter Group
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       Salesforce.com Service Cloud ties
       social channels back to customer data




© 2011 Altimeter Group
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       Solarwinds’ community is strategic




© 2011 Altimeter Group
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       Summary - Support
        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.




© 2011 Altimeter Group
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                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
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       How to encourage innovation
        Participate in crowdsourcing to understand how it
         works.
        Create a culture of sharing and collaboration
         within the company.
        Encourage “intrapreneurship”.
               • 85% of innovations involve optimizing one parameter.
               • Use social media to collect and prioritize ideas.
        Reduce “power distance” with open leadership
         and management.



© 2011 Altimeter Group
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       Italian Telecom launches small business
       social network




           Wind Italy displays
           support, innovation
            towards the small
          business community



© 2011 Altimeter Group
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       Danish bank asks for help to improve
       mobile banking on Facebook




© 2011 Altimeter Group
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      Fiat Mio, the world’s first crowdsourced car




© 2011 Altimeter Group
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       Starbucks involves 50 people around the
       organization in innovation




                                   Over 100 ideas
                                     have been
                                    implemented
© 2011 Altimeter Group
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       P&G uses reviews to improve products




© 2011 Altimeter Group
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       P&G goes outside for innovation




                                          P&G made
                                           outside-in
                                         innovation a
                                            priority
© 2011 Altimeter Group
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       Summary - Innovating
        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.




© 2011 Altimeter Group
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       Strategy Process Stages

                                      Formulation
             Discovery     Ideation                 Planning   Roadmap
                                      & Alignment




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

                         Scenarios development
                         • Implementation roadblocks
                         • Company and leadership implications
                         • Risk identification
                         • Build resilience
© 2011 Altimeter Group
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       What’s the Next Big Thing?




© 2011 Altimeter Group
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       How Time Flies


         iPhone                      Facebook                  Nexus One                    Facebook
          Debut                       Connect                 Android Debut                  Timeline
        Jan 2007                     July 2008                January 2010                  Sept 2011




                         Facebook                iPhone App                   iPad Debut
                          Platform                  Store                      April 2010
                         May 2007                 July 2008




      Our notions of sharing
         & privacy have
        changed as well


© 2011 Altimeter Group
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       Identify and prioritizing disruptions that matter




     User Experience     Business Model     Ecosystem Value
     •Is it easy for     •Does it tap new   •Does it change
      people to use?      revenue            the flow of
     •Does it enable      streams?           value?
      people to          •Is it done at a   •Does it shift
      connect in new      lower cost?        power from one
      ways?                                  player to
                                             another?
© 2011 Altimeter Group
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       1) Likenomics (credit to Rohit Bhargava)
       “How personal relationships, individual opinions,
       powerful storytelling and social capital are helping
       brands…become more believable.”


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



                                See http://bit.ly/rohit-likenomics for Rohit’s take
© 2011 Altimeter Group
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       Likenomics evaluation
        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


© 2011 Altimeter Group
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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)

© 2011 Altimeter Group
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       Social Search evaluation
        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.



© 2011 Altimeter Group
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       3) Big Data
        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


© 2011 Altimeter Group
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       Big Data evaluation
        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.




© 2011 Altimeter Group
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       4) Game-ification




© 2011 Altimeter Group
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       TurboTax used “games” to encourage
       sharing and support




                                 Social design can
                                  enter training,
                                   collaboration,
                                  support, hiring




© 2011 Altimeter Group
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       Gamification evaluation
        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.




© 2011 Altimeter Group
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       5) Curation




© 2011 Altimeter Group
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       Curation evaluation
        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.




© 2011 Altimeter Group
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       Summary of disruptions
                            User      Business    Value
                         Experience    Model     Networks
       Likenomics         Moderate    Moderate     Low
       Social Search      Moderate    Moderate   Moderate
       Big Data             Low        High      Moderate
       Gamification        High       Moderate     Low
       Curation           Moderate    Moderate   Moderate




© 2011 Altimeter Group
It’s about RELATIONSHIPS




© 2011 Altimeter Group
89



                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
OUT of CONTROL?




© 2011 Altimeter Group
91




                         Photo by stanjourdan via Flickr



© 2011 Altimeter Group
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        Photo by Steve Rhodes via Flickr

© 2011 Altimeter Group
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                         Photo by Steve Rhodes via Flickr

© 2011 Altimeter Group
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       Social media helps brands listen…




© 2011 Altimeter Group
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       ..and respond. But it’s not enough.




© 2011 Altimeter Group
96



       Open Leadership



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




© 2011 Altimeter Group
97



       10 elements of openness
                         Information Sharing

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

                         Decision Making

                         •   Centralized
                         •   Democratic
                         •   Consensus
                         •   Distributed


© 2011 Altimeter Group
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       Explaining strategic decisions




                Open book management


                                       Managing leaks
© 2011 Altimeter Group
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       Updating with every day stuff




© 2011 Altimeter Group
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       Kohl’s has conversations on Facebook




© 2011 Altimeter Group
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       Open Mic: When people contribute




© 2011 Altimeter Group
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       Crowdsourcing new Walkers flavour




© 2011 Altimeter Group
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       Open platforms make it easy to partner
       and share
               Open architecture   Open data access




© 2011 Altimeter Group
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       Decision making models




                         Centralized   Democratic




                         Consensus     Distributed
© 2011 Altimeter Group
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       Social technologies make distributed
       decision making possible
               Manage complex tasks   Organizing for speed




            170 employees             65,000 employees
            100 modules with          16 Councils,
             “module owners”            50 Boards make
            One person makes           strategic decisions
             the final decision in     Joint leadership of
             each module                each group
© 2011 Altimeter Group
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       Determine how open you need to be with
       information to meet your goals




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


© 2011 Altimeter Group
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       Complete the Openness Audit




© 2011 Altimeter Group
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       Traits of Open Leaders




                         Authenticity   Transparency


© 2011 Altimeter Group
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       Transparency as an imperative




© 2011 Altimeter Group
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       How Best Buy became open and social




© 2011 Altimeter Group
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       Barry’s first post




© 2011 Altimeter Group
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       The Premier Black Fiasco



       6.8 million
       emails sent
       instead of
       1,000 test




© 2011 Altimeter Group
Developing Open Leaders




© 2011 Altimeter Group
  2010
“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




© 2011 Altimeter Group
  2010
115



                          Agenda
                          Strategy
                           • Learn
                           • Dialog
                           • Support
                           • Innovate
                          Lead
                          Prepare




© 2011 Altimeter Group
116


       Strategy Process Stages

                                      Formulation
             Discovery     Ideation                 Planning   Roadmap
                                      & Alignment




                         Roadmap
                         • Three year plan
                         • Six month milestones
                         • Capabilities assessment and preparedness
                         • Metrics in place to measure progress
© 2011 Altimeter Group
117

       Open Research Report: Social Business Readiness


                                               Methodology

                                               •63 Interviews and briefings with
                                               ecosystem contributors
                                               •Survey data from 144 social
                                               business programs
                                               •Analysis of 50 social media crises




                         Read the full report, Creative Commons
© 2011 Altimeter Group
118


       Climb the Social Business Hierarchy of Needs

                                             Holistic,
                                            Real-time
          Enlightenment                     Predictive

                                         Empowerment,
                                         Cross-Learning,
          Enablement                      Measurement

                              Asset Inventory, Best Practice Sharing,
          Formation                    Center of Excellence


                          Dedicated Team, Workflow, Crises Preparedness
          Safety

                              Objectives, Policies, Education, Access
          Foundation




© 2011 Altimeter Group
119



       Assess your readiness to be social
        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
                • Customer Profile       • Communication
                • Market Analysis        • Mindset
                • Processes              • Roles
                • Organizational Model   • Stakeholders
                • Education              • Monitoring
                                         • Reporting
© 2011 Altimeter Group
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       Benchmarking Social Readiness (Before)




                         December 2009

© 2011 Altimeter Group
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       Benchmarking Social Readiness (After)




                         April 2010

© 2011 Altimeter Group
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       #1 Create a Culture of Sharing




© 2011 Altimeter Group
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       Blogs establish thought leadership




                             CEO Richard Edelman has
                             been blogging consistently
                              since September 2004.


© 2011 Altimeter Group
124
       #2 Discipline is Needed to Succeed
                                                                                                             Take reasonable
                                                                                                            action to fix issue
                                                                                                             and let customer
                                                                                                            know action taken
                                   Positive                Negative
                                                                                      Yes                       Yes
                 No                                                                                           Does customer
                         Do you want          Assess the         Evaluate the
                                                                                                            need/deserve more
                         to respond?           message             purpose
                                                                                                                  info?



          No                    Yes                                Unhappy      Yes   Are the facts   No    Gently correct the
       Response                                                   Customer?             correct?                  facts

                                                                      No

                 Yes      Can you       No                        Dedicated     Yes   Are the facts   No
                         add value?                              Complainer?            correct?

                                                                      No              Yes

                                                                                         Is the               Explain what is
      Respond in                              Thank the           Comedian                            Yes
                                                                                        problem               being done to
      kind & share                             person            Want-to-Be?
                                                                                      being fixed?           correct the issue.
                                                                                                      No

           Adapted from US Air Force Comment Policy               Yes
                                                                                                            Let post stand and
                                                                                                                 monitor.


© 2011 Altimeter Group
125

       Five ways companies organize around social media




© 2011 Altimeter Group
126



       #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




© 2011 Altimeter Group
127



       A Framework For Social Analytics




© 2011 Altimeter Group
The new lifetime value calculation

                                            • Percent that refer
              + Value of purchases          • Size of their networks
                -Cost of acquisition        • Percent of referred
         + Value of new customers           people who purchase
                      from referrals        • Value of purchases
                 + Value of insights
                                            • Percent that provide
                 + Value of support
                                            support
                   + Value of ideas
          ____________________
                                            • Frequency and value of
         = Customer lifetime value
                                            the support

                          Spreadsheets for all calculations
                          available at open-leadership.com


© 2011 Altimeter Group
129



       35% increase in LTV captured
                                 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


© 2011 Altimeter Group
130



       Make decisions with metrics
               Find more fans
                  with large
                  networks                       Refers
                                 Large
                                network          Doesn’t
                                                  refer
                         Fans
                                                 Refers
                                 Small
                                network          Doesn’t
                                Encourage fans    refer
                                 to make more
                                    referrals

© 2011 Altimeter Group
131



       #4 Prepare for Failure



                         No relationships are perfect
                         Google’s mantra:
                              “Fail fast, fail smart”




© 2011 Altimeter Group
132




© 2011 Altimeter Group
133



       Structure your risk-taking and failure
       systems to create resilience
       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.


© 2011 Altimeter Group
134



       Action plan to prepare for 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.

© 2011 Altimeter Group
It’s about RELATIONSHIPS




© 2011 Altimeter Group
© 2011 Altimeter Group

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Charlenelien iese7nov2011

  • 1. 1 The Power Of Groundbreaking Social Technologies Charlene Li Altimeter Group Twitter: @charleneli Email: charlene@altimetergroup.com
  • 3. OUT of CONTROL? © 2011 Altimeter Group
  • 6. It’s about RELATIONSHIPS © 2011 Altimeter Group
  • 7. 7 Agenda  Strategy  Lead  Prepare © 2011 Altimeter Group
  • 8. 8 Agenda  Strategy  Lead  Prepare © 2011 Altimeter Group
  • 9. 9 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment © 2011 Altimeter Group
  • 10. 10 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Set context • Determine key objectives • Level of strategy (corporate, biz unit, brand) © 2011 Altimeter Group
  • 11. 11 Align social with key strategic goals Examine your 2011 goals Pick ones where social will have an impact © 2011 Altimeter Group
  • 12. 12 Objectives differ by level Corporate Risk management Business unit Consistency Leadership development & culture across brands Social strategist Brand & COE Community Engagement Channel focus manager & metrics education Value metrics ROI metrics © 2011 Altimeter Group
  • 13. 13 Use appropriate metrics at each level Corporate Business metrics: revenue, CSAT, reputation. LOB/Geo Social media analytics: Insights, Stakeholders share of voice, resonance, WOM. Social Engagement metrics: fans, Strategist/Community followers, clicks. Manager © 2011 Altimeter Group
  • 14. 14 Strategy Process Stages - Ideation Formulation Discovery Ideation Planning Roadmap & Alignment Collect and prioritize strategic options • Metrics-based value assessment • Prioritize against objectives © 2011 Altimeter Group
  • 15. 15 Evaluate each initiative Impact Readiness • How does it • Are there support an people who objective? can do this? • What metrics • Is there matter? budget? Risks Priority • What are the • Does this risks if we do initiative this? enable other • What if we work? don’t? © 2011 Altimeter Group
  • 16. 16 Define Your Strategy With Objectives Dialog Learn Support Innovate © 2011 Altimeter Group
  • 17. 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 © 2011 Altimeter Group
  • 18. 18 People in B2B use social media for work Read user ratings/reviews for 62% business products/services Visit company profiles on social 62% media sites Visit company blogs 55% Participate in online business 51% communities or forums Ask questions on Q&A sites 49% Use Twitter to find or request 29% business information Source: 2009 Business.com Business Social Media Benchmarking Study (n=2,393) © 2011 Altimeter Group
  • 19. 19 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 20. 20 Track brand mentions with basic tools What would happen if every employee could learn from customers? © 2011 Altimeter Group
  • 21. 21 Integrate monitoring with workflow Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech. From Radian 6, to be acquired by Salesforce.com © 2011 Altimeter Group
  • 22. 22 Go beyond basic monitoring to analytics Monitoring & analytics support Deep monitoring to integrated into prep & support everyday workflow campaigns Centralized monitoring but not actionable in business unites Tracks brand mentions using basic tools (Google, Twitter) No monitoring Make course corrections in place nearly real-time. Use predictive analytics to anticipate demand. © 2011 Altimeter Group
  • 23. 23 Your customers want to be “known” I walk into my local grocery store © 2011 Altimeter Group
  • 24. 24 The store knows it’s me • Social check-ins (Four Square, Yelp, Facebook Places) • Near Field Communications © 2011 Altimeter Group
  • 25. 25 I get coupons to use right away © 2011 Altimeter Group
  • 26. 26 And connect my phone to in-store GPS shopping cart © 2011 Altimeter Group
  • 27. 27 Community insight platforms » Communispace and Passenger offer online focus groups solutions. © 2011 Altimeter Group
  • 28. 28 Pros and cons of private communities  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 © 2011 Altimeter Group
  • 29. 29 Go beyond traditional data to understand your customers Demographic Geographic Psychographic Behavioral Socialgraphic © 2011 Altimeter Group
  • 30. 30 Socialgraphics asks key questions 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. © 2011 Altimeter Group
  • 31. 31 Engagement Pyramid Curating Producing Commenting Sharing Watching © 2011 Altimeter Group
  • 32. 32 Engagement Pyramid - Watching Watch videos Curating Read blog posts Listen to podcasts Read tweets Producing Read discussion forum posts Commenting Sharing Watching © 2011 Altimeter Group
  • 33. 33 Engagement Pyramid - Sharing Curating Share a link Share photos Share videos Producing Write a status update Retweet Commenting Sharing Watching © 2011 Altimeter Group
  • 34. 34 Engagement Pyramid - Commenting Curating Comment on a blog Write a review Rate a product Producing Participate in a discussion forum Commenting @Reply on Twitter Sharing Watching © 2011 Altimeter Group
  • 35. 35 Engagement Pyramid - Producing Curating Write a blog Create videos or Producing podcasts Tweet for an audience Commenting Sharing Watching © 2011 Altimeter Group
  • 36. 36 Engagement Pyramid - Curating Curating Moderate a wiki or discussion forum Producing Curate a Facebook fan page Commenting Sharing Watching © 2011 Altimeter Group
  • 37. 37 Engagement Pyramid Data United Spain Italy UK States Curating <1% <1% <1% <1% Producing 30.3% 38.7% 52.7% 26.1% Commenting 45.1% 37.4% 54.0% 34.4% Sharing 58.6% 63.6% 79.3% 63.0% Watching 82.2% 77.3% 89.3% 78.1% Source: Global Wave Index Wave 2, Trendstream.net, January 2010 © 2011 Altimeter Group
  • 38. 38 Putting socialgraphics to work  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. © 2011 Altimeter Group
  • 39. 39 Summary - Learn  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. © 2011 Altimeter Group
  • 40. 40 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 41. 41 The New Normal  Conversations, not messages  Human, not corporate  Continuous, not episodic © 2011 Altimeter Group
  • 42. 42 Boeing uses blogs to engage © 2011 Altimeter Group
  • 43. 43 Kohl’s engages directly with customers © 2011 Altimeter Group
  • 44. 44 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. © 2011 Altimeter Group
  • 45. 45 Spain Tourism used multiple channels to encourage dialog/sharing © 2011 Altimeter Group
  • 46. 46 B2B can also use Facebook • Develop relationships with job candidates, prospects, and current employees • Insert your content into newsfeed of fans • B2B is really people to people © 2011 Altimeter Group
  • 47. 47 Also encourage dialog inside the company © 2011 Altimeter Group
  • 48. 48 Premier Farnell supports engineers with community, and employees with “OurTube” © 2011 Altimeter Group
  • 49. 49 Getting people to share within your company  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. © 2011 Altimeter Group
  • 50. 50 Tivo joined an existing community © 2011 Altimeter Group
  • 51. 51 Advocacy – A five-phase approach Phase 4: Phase 1: Phase 2: Phase 3: Phase 5: Put Internal Identify Build Foster Advocates Readiness Advocates Relationships Growth First © 2011 Altimeter Group
  • 52. 52 Tesco engages influencer blogs Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too. © 2011 Altimeter Group
  • 53. 53 Summary - Dialog  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. © 2011 Altimeter Group
  • 54. It’s about RELATIONSHIPS © 2011 Altimeter Group
  • 55. 55 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 56. 56 Vodafone Italy and Spain take disparate, effective approaches to online support © 2011 Altimeter Group
  • 57. 57 Ritz-Carlton managers monitor Twitter for real-time service Property manager helped unhappy honeymooners © 2011 Altimeter Group
  • 58. 58 DellOutlet supports sales with Twitter © 2011 Altimeter Group
  • 59. 59 iRobot ties discussion boards into customers support iRobot escalates unanswered questions into support centers © 2011 Altimeter Group
  • 60. 60 Salesforce.com Service Cloud ties social channels back to customer data © 2011 Altimeter Group
  • 61. 61 Solarwinds’ community is strategic © 2011 Altimeter Group
  • 62. 62 Summary - Support  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. © 2011 Altimeter Group
  • 63. 63 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 64. 64 How to encourage innovation  Participate in crowdsourcing to understand how it works.  Create a culture of sharing and collaboration within the company.  Encourage “intrapreneurship”. • 85% of innovations involve optimizing one parameter. • Use social media to collect and prioritize ideas.  Reduce “power distance” with open leadership and management. © 2011 Altimeter Group
  • 65. 65 Italian Telecom launches small business social network Wind Italy displays support, innovation towards the small business community © 2011 Altimeter Group
  • 66. 66 Danish bank asks for help to improve mobile banking on Facebook © 2011 Altimeter Group
  • 67. 67 Fiat Mio, the world’s first crowdsourced car © 2011 Altimeter Group
  • 68. 68 Starbucks involves 50 people around the organization in innovation Over 100 ideas have been implemented © 2011 Altimeter Group
  • 69. 69 P&G uses reviews to improve products © 2011 Altimeter Group
  • 70. 70 P&G goes outside for innovation P&G made outside-in innovation a priority © 2011 Altimeter Group
  • 71. 71 Summary - Innovating  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. © 2011 Altimeter Group
  • 72. 72 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Strategy statement • What you will do • What you won’t do Scenarios development • Implementation roadblocks • Company and leadership implications • Risk identification • Build resilience © 2011 Altimeter Group
  • 73. 73 What’s the Next Big Thing? © 2011 Altimeter Group
  • 74. 74 How Time Flies iPhone Facebook Nexus One Facebook Debut Connect Android Debut Timeline Jan 2007 July 2008 January 2010 Sept 2011 Facebook iPhone App iPad Debut Platform Store April 2010 May 2007 July 2008 Our notions of sharing & privacy have changed as well © 2011 Altimeter Group
  • 75. 75 Identify and prioritizing disruptions that matter User Experience Business Model Ecosystem Value •Is it easy for •Does it tap new •Does it change people to use? revenue the flow of •Does it enable streams? value? people to •Is it done at a •Does it shift connect in new lower cost? power from one ways? player to another? © 2011 Altimeter Group
  • 76. 76 1) Likenomics (credit to Rohit Bhargava) “How personal relationships, individual opinions, powerful storytelling and social capital are helping brands…become more believable.” Understand the supply, demand, and thus, value of Likes as social currency See http://bit.ly/rohit-likenomics for Rohit’s take © 2011 Altimeter Group
  • 77. 77 Likenomics evaluation  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 © 2011 Altimeter Group
  • 78. 78 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) © 2011 Altimeter Group
  • 79. 79 Social Search evaluation  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. © 2011 Altimeter Group
  • 80. 80 3) Big Data  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 © 2011 Altimeter Group
  • 81. 81 Big Data evaluation  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. © 2011 Altimeter Group
  • 82. 82 4) Game-ification © 2011 Altimeter Group
  • 83. 83 TurboTax used “games” to encourage sharing and support Social design can enter training, collaboration, support, hiring © 2011 Altimeter Group
  • 84. 84 Gamification evaluation  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. © 2011 Altimeter Group
  • 85. 85 5) Curation © 2011 Altimeter Group
  • 86. 86 Curation evaluation  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. © 2011 Altimeter Group
  • 87. 87 Summary of disruptions User Business Value Experience Model Networks Likenomics Moderate Moderate Low Social Search Moderate Moderate Moderate Big Data Low High Moderate Gamification High Moderate Low Curation Moderate Moderate Moderate © 2011 Altimeter Group
  • 88. It’s about RELATIONSHIPS © 2011 Altimeter Group
  • 89. 89 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 90. OUT of CONTROL? © 2011 Altimeter Group
  • 91. 91 Photo by stanjourdan via Flickr © 2011 Altimeter Group
  • 92. 92 Photo by Steve Rhodes via Flickr © 2011 Altimeter Group
  • 93. 93 Photo by Steve Rhodes via Flickr © 2011 Altimeter Group
  • 94. 94 Social media helps brands listen… © 2011 Altimeter Group
  • 95. 95 ..and respond. But it’s not enough. © 2011 Altimeter Group
  • 96. 96 Open Leadership Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals © 2011 Altimeter Group
  • 97. 97 10 elements of openness Information Sharing • Explaining • Updating • Conversing • Open Mic • Crowdsourcing • Platforms Decision Making • Centralized • Democratic • Consensus • Distributed © 2011 Altimeter Group
  • 98. 98 Explaining strategic decisions Open book management Managing leaks © 2011 Altimeter Group
  • 99. 99 Updating with every day stuff © 2011 Altimeter Group
  • 100. 100 Kohl’s has conversations on Facebook © 2011 Altimeter Group
  • 101. 101 Open Mic: When people contribute © 2011 Altimeter Group
  • 102. 102 Crowdsourcing new Walkers flavour © 2011 Altimeter Group
  • 103. 103 Open platforms make it easy to partner and share Open architecture Open data access © 2011 Altimeter Group
  • 104. 104 Decision making models Centralized Democratic Consensus Distributed © 2011 Altimeter Group
  • 105. 105 Social technologies make distributed decision making possible Manage complex tasks Organizing for speed  170 employees  65,000 employees  100 modules with  16 Councils, “module owners” 50 Boards make  One person makes strategic decisions the final decision in  Joint leadership of each module each group © 2011 Altimeter Group
  • 106. 106 Determine how open you need to be with information to meet your goals Openness audit available at http://bit.ly/opennessaudit © 2011 Altimeter Group
  • 107. 107 Complete the Openness Audit © 2011 Altimeter Group
  • 108. 108 Traits of Open Leaders Authenticity Transparency © 2011 Altimeter Group
  • 109. 109 Transparency as an imperative © 2011 Altimeter Group
  • 110. 110 How Best Buy became open and social © 2011 Altimeter Group
  • 111. 111 Barry’s first post © 2011 Altimeter Group
  • 112. 112 The Premier Black Fiasco 6.8 million emails sent instead of 1,000 test © 2011 Altimeter Group
  • 113. Developing Open Leaders © 2011 Altimeter Group 2010
  • 114. “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 © 2011 Altimeter Group 2010
  • 115. 115 Agenda  Strategy • Learn • Dialog • Support • Innovate  Lead  Prepare © 2011 Altimeter Group
  • 116. 116 Strategy Process Stages Formulation Discovery Ideation Planning Roadmap & Alignment Roadmap • Three year plan • Six month milestones • Capabilities assessment and preparedness • Metrics in place to measure progress © 2011 Altimeter Group
  • 117. 117 Open Research Report: Social Business Readiness Methodology •63 Interviews and briefings with ecosystem contributors •Survey data from 144 social business programs •Analysis of 50 social media crises Read the full report, Creative Commons © 2011 Altimeter Group
  • 118. 118 Climb the Social Business Hierarchy of Needs Holistic, Real-time Enlightenment Predictive Empowerment, Cross-Learning, Enablement Measurement Asset Inventory, Best Practice Sharing, Formation Center of Excellence Dedicated Team, Workflow, Crises Preparedness Safety Objectives, Policies, Education, Access Foundation © 2011 Altimeter Group
  • 119. 119 Assess your readiness to be social  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 • Customer Profile • Communication • Market Analysis • Mindset • Processes • Roles • Organizational Model • Stakeholders • Education • Monitoring • Reporting © 2011 Altimeter Group
  • 120. 120 Benchmarking Social Readiness (Before) December 2009 © 2011 Altimeter Group
  • 121. 121 Benchmarking Social Readiness (After) April 2010 © 2011 Altimeter Group
  • 122. 122 #1 Create a Culture of Sharing © 2011 Altimeter Group
  • 123. 123 Blogs establish thought leadership CEO Richard Edelman has been blogging consistently since September 2004. © 2011 Altimeter Group
  • 124. 124 #2 Discipline is Needed to Succeed Take reasonable action to fix issue and let customer know action taken Positive Negative Yes Yes No Does customer Do you want Assess the Evaluate the need/deserve more to respond? message purpose info? No Yes Unhappy Yes Are the facts No Gently correct the Response Customer? correct? facts No Yes Can you No Dedicated Yes Are the facts No add value? Complainer? correct? No Yes Is the Explain what is Respond in Thank the Comedian Yes problem being done to kind & share person Want-to-Be? being fixed? correct the issue. No Adapted from US Air Force Comment Policy Yes Let post stand and monitor. © 2011 Altimeter Group
  • 125. 125 Five ways companies organize around social media © 2011 Altimeter Group
  • 126. 126 #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 © 2011 Altimeter Group
  • 127. 127 A Framework For Social Analytics © 2011 Altimeter Group
  • 128. The new lifetime value calculation • Percent that refer + Value of purchases • Size of their networks -Cost of acquisition • Percent of referred + Value of new customers people who purchase from referrals • Value of purchases + Value of insights • Percent that provide + Value of support support + Value of ideas ____________________ • Frequency and value of = Customer lifetime value the support Spreadsheets for all calculations available at open-leadership.com © 2011 Altimeter Group
  • 129. 129 35% increase in LTV captured 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 © 2011 Altimeter Group
  • 130. 130 Make decisions with metrics Find more fans with large networks Refers Large network Doesn’t refer Fans Refers Small network Doesn’t Encourage fans refer to make more referrals © 2011 Altimeter Group
  • 131. 131 #4 Prepare for Failure No relationships are perfect Google’s mantra: “Fail fast, fail smart” © 2011 Altimeter Group
  • 133. 133 Structure your risk-taking and failure systems to create resilience 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. © 2011 Altimeter Group
  • 134. 134 Action plan to prepare for 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. © 2011 Altimeter Group
  • 135. It’s about RELATIONSHIPS © 2011 Altimeter Group

Notes de l'éditeur

  1. MUST INCLUDE
  2. We don’t own all of this data. We want to work with others. Including brand monitoring. You have to be holistic in your customer understanding
  3. http://boeingblogs.com/randy/archives/2011/05/back_when_i_first_started.htmlhttp://boeingblogs.com/randy/about.html
  4. http://www.businessweek.com/globalbiz/content/jun2009/gb20090619_984913.htmhttp://twitter.com/#!/vodafoneukAlmost ALL of Vodafone UK’s ~75,000 tweets are public @replies to customer inquiries. The only tweets that aren’t are to let customers now when their team is signing off for the night and signing back on in the morning. Although the article I read that mentioned them said they also used it for marketing purposes, I didn’t see any marketing messages recently.This is a great representation of dialog and support frameworks.
  5. http://www.typicallyspanish.com/news/publish/article_25232.shtmlTurespaña ( The Spanish Institute of Tourism) has launched an innovative online campaign on social networks, such as Facebook, Twitter and Youtube relating to the subject, “Spain, a country to share”. The project aims to completely change the way of communicating and promoting Spanish destinations, going beyond the classic idea of Spain as a destination for “sun and beach”.http://www.facebook.com/spain – nearly 500k fans, hundreds engaging on every post.http://www.formspring.me/ilovespainhttp://www.youtube.com/spain&lt;tags&gt;#europe#spain#facebook#dialog#tourism#charlene
  6. http://www.facebook.com/ernstandyoungcareers?sk=wall&amp;filter=120110330#charlene#facebook#b2b#dialog#hr#recruitment
  7. http://wearesocial.net/tesco/http://blog.clothingattesco.com/category/clothing-at-tesco-loves/
  8. We’ve seen South American telecom companies embrace social customer service to a higher degree – publically resolving issues on an individual basis. But Vodafone IT and ES both do a good job of listening to their customers and engaging in a way that supports their needs. Key differences: Italy tends to take things offline, aging customers to submit their numbers to the Italian team, while Vodafone Spain tackles issues head on, without publicly naming or tagging their Twitter customer support team.http://twitter.com/#!/vodafone_eshttp://twitter.com/#!/vodafoneit
  9. http://searchcrm.techtarget.com/news/1350030/Should-marketing-or-customer-service-manage-your-social-networking-efforts
  10. http://www.innovationmanagement.se/2010/11/24/innovation-in-south-america/
  11. Wind Italy (Italian Telecom company, roughly #3 in the country today) launched the Wind Business Network – a social network for budding entrepreneurs, small businesses and startups in Italy. It is receiving rave recognition in terms of awards…but engagement on the site is relatively lackluster. Still, they’ve provided support to 200+ small business, interacting together as a community. The community was launched as a means to grow subscriptions, and while data on results is not available – it is a truly innovative way for a service provider that all businesses need (phone, internet, etc) to support their community of potential customers.http://www.slideshare.net/TheBlogTV/theblogtv-value-behind-community-may-2011http://www.windbusinessfactor.it/
  12. http://www.facebook.com/danskebank?v=app_177360692283592http://www.visible-banking.com/2011/02/idebank-danske-bank-leverages-facebook-to-improve-its-mobile-banking-application.html“Activity &amp; UsageIn its first few weeks, Idebank has generated a good level of activity and usage. It is a good experiment which already generated a good level of involvement. Please find below a few stats:* 9,950+ monthly active users* 2,000+ votes* 169 ideas* 128 comments”Great quote here from the blog post:“Danske Bank has chosen one of the best ways to leverage its page: mobile banking is still cool, innovative, and customers are enthusiastic. The feedback is not a concern because it doesn&apos;t involve products, and it gives the bank a unique opportunity to identify its key advocates, its most passionate and influential customers about mobile and innovation, and build relationships with them.”March 16, 2011&lt;tags&gt;#financial#europe#sweden#facebook#innovate
  13. I think the frame stopped here in part 1 of the YouTube series is a powerful message. “Fiat stopped to listen.” It’s step 1 in the objectives (learn) and one that permeates through every aspect of the framework. Fiat set out (with help from the agency AgenciaClick Isobar) in unprecedented fashion to launch the first ever crowdsourced car. Fiat built a forum at http://www.fiatmio.cc/ - really a small social network – that created a workspace for exchange of dialog between Fiat drivers and car designers. Drivers posed and answered questions about features and functions they’d like to see. They told Fiat EXACTLY what they wanted to see via social media. This is the ultimate engagement, and exercise of trust between brand and consumer.More info: http://adage.com/article/global-news/top-social-media-campaigns-brazil-china-hungary/227440/#auto#b2c#innovate#learn#youtube
  14. Starbucks has a site where people can make suggestions on how they should improve. The key difference is that the suggestions are public, and people can vote for their favorite suggestions. Here’s an example of automatic ordering. Note that there is a status update here “Under Review”.http://mystarbucksidea.force.com/&lt;tags&gt;#foodbev&lt;region&gt;&lt;country&gt;#community#innovate&lt;market&gt;&lt;research area&gt;#charlene
  15. http://www.flickr.com/photos/ari/6250163533/
  16. http://www.flickr.com/photos/ari/6250107795/
  17. Define how open well.