Introduction to social business models 8th august 2011 - small

Social Business Workshop
Social Tools In Action

Julie Walker – Social Business Strategy

 2001 – 2011
 2003-2011 social and insight based projects for both large and small companies
 Alterian, develop social business proposition & go to market strategy for UK marketing
technology vendor, combining the assets of 2 social business acquisitions
 P&G Social Insight strategy project
 Lloyds Banking Group, introduced social technology to support internal communications
 HSBC, social business strategy workshop
 Nestle, led marketing ROI, econometric modelling project in NYC
 Ogilvy, operationalised business strategy to create global production services companies
 2001-03 Founded Purple Spinnaker to develop an online community based loyalty
program for hotel, airline and online travel, had initial discussions with IHG,
Starwood, Marriott, Virgin and Bookers – concept was too early.

 1988-2001
 13 years working in the software industry
 Business & Operations Consultant, Business Development, Channel Sales,
 Re-located to Hong Kong. Setup ASEAN operations for US software vendor,
 2-10 employees in 18 months generating US$200k per month
 Clients included,
 Magic Circle Law Firms (Clifford Chance, Linklaters, SNR Denton) & Top 50 UK Law Firms
 Hong Kong & Singapore Government Depts, Asian Law Firms, Citibank, Schlumberger
 Bankgirot & Postgirot in Sweden
 BT, M&S Money, AMEX, TSB, UK Utility Companies
©Copyright purple spinnaker Ltd. 2011

• What experience is in the room
• Introducing Social Tools
Setting the • Social Tools in Action
Scene

Campaign focused Social Initiatives
Campaign Red Nose Kilimanjaro Climb
KOGI BBQ

Direct Sales Channel
Sales Twitter.com/Delloutlet
Asos – online Retail Channel

Online Listening Teams
Listening Gatorade

Customer Customer Service
Service JetBlue
Southwest

Changing Changing Business Model
Business Starbucks
Model

New New Business Model
Business Giffgaff
Model


Campaign Red Nose Kilimanjaro Climb - 2009 One-off Campaign
KOGI BBQ

Kilimanjaro
Climb
Website

Twitter Kilimanjaro
Climb
Facebook
Page

Follow the climbers
Hourly/Daily
Post Updates
Radio 1
Website
Youtube

BBC
Website

Flickr

Campaign Red Nose Kilimanjaro Climb - 2009 One-off Campaign
KOGI BBQ

Purpose Raise Money for Red Nose Charity

Strategy Instantly communicate progress of climb

Tools Primary Tools Twitter, Youtube
Secondary Tools Websites, Facebook & Flickr

Result £3million raised through the climb


Campaign Red Nose Kilimanjaro Climb - 2009 On-going Campaign
KOGI BBQ

Tweet – location of BBQ vans in LA

Web site Facebook Flickr

Campaign Red Nose Kilimanjaro Climb - 2009 On-going Campaign
KOGI BBQ

Purpose Sell Korean BBQ Tacos in Los Angeles

Strategy Instantly communicate location of vans

Tools Primary Tool Twitter
Secondary Tools Website, Facebook & Flickr

Result Nov 2008 – 1 van
July 2011 – 5 vans + 1 restaurant
89,000 loyal followers and taco purchasers
300-800 customers at each location buy BBQ


Direct Sales Channel Delloutlet – daily deals online

US Delloutlet

UK local market
Delloutlet

1.59million followers

9k followers


Direct Sales Channel Delloutlet – daily deals online

Purpose Direct Sales Channel to sell Dell discounted
products in local markets

Strategy Communicate current deals through Twitter

Tools Primary Tools Twitter US
plus local market accounts
Secondary Tools Dell Websites

Result 0 – 24months US$2m
24 - 36 months US$4.5m (march 2010)
The acceleration of revenue in months 24-36 is
due to growing reach.

Direct Sales Channel – Strategy & Approach, Delloutlet


Direct Sales Channel ASOS Multi-Digital Channel Sales
ASOS – online Retail Channel
ASOS Online Shops
UK France

Germany USA



918,000 Fans

Listen to

Asos

Customers


Direct Sales Channel ASOS Multi-Digital Channel Sales

Jan 2011 – Asos launched full functioning Facebook store



Purpose To develop and test an online ASOS social commerce shop
extending the buying experience to social channels

Strategy To setup a social commerce shop, which has the SAME look
and feel as online stores and to capitalise on the online
social elements of Facebook, sharing what you like,
thinking about buying are buying…..

Tools Primary Tools Bespoke Facebook Application
Secondary Tools Website & social channels to
communicate new channel

Result No case study or published results as yet
Looking to FY2011 Annual Results for announcements


Listening Gatorade

http://www.youtube.com/watch?v=InrOvEE2v38

Listening Gatorade

Purpose To monitor online conversations through a central point:
identifying key conversations around brand
identifying key online influencers
to monitor sentiment around the brand
to understand key topics of customer conversations
engage with customers and brand advocates
to communicate “real time” with brand

Strategy To setup a central digital brand listening station using a
range of social media monitoring and analytics tools

Tools Primary Tools Bespoke Dashboards
Social Media Monitoring Tools
Secondary Tools Data analytics engines

Result Lots of PR around mission control
No case study or published results as yet


Service Southwest

Southwest was also an early adopter of
Twitter as a customer communication
channel.

Southwest want customers to see their
“FUN” side through the online channels .

Southwest Airlines use Twitter to share
news and information about Southwest,
inform customers about flight delays or
weather issues, and route potential
customer service inquiries to appropriate
internal team members so they can assist.

Southwest Airlines have a blog which
brings together communication across
multiple social channels and use
listening tools to identify key topics
which are then passed onto the
relevant teams, customer service, PR,
Marketing, Product and Services.


Service Southwest

Purpose Southwest been paying careful attention to how their
customers interact with and respond to them online, and
they’ve decided that being fun and personable (in addition
to helpful and informative) is what their customers want
from them.

Strategy To use social tools, initially Twitter, adding a blog then
extending to Facebook to continue listening, responding
and informing in a fun and personable way with customers.

Tools Initial Tools Twitter
Radian6 (SMM and Listening)
Current Channels Twitter, Facebook, Youtube & Blog

Result Southwest has a reputation for being Fun and Personable


Service JetBlue

JetBlue was also an early
adopter of Twitter as a
customer communication
channel.

They now have a multi-
discipline team who provide
the face of the different
JetBlue internal teams.


Service JetBlue

Purpose To broadcast updates on flight services, weather
To listen & respond to customer queries, questions & issues.
identifying customer questions
to answer customer questions asap
to direct customer queries to correct internal team
to enable “real time” engagement with the airline

Strategy To provide an online customer service channel for communication

Tools Initial Tools (2007) Twitter

Current Tools Moved towards multi channel and
multi discipline strategy

Result Good PR around initial Twitter initiatives
Internal “learning” since 2007
Good level of knowledge to assist with new multi channel revenue &
communication streams (Facebook booking and loyalty)

Business Starbucks
Model


Business Starbucks
Model

Real World Footprint
Starbucks Coffee Quick Facts:

Founded by: Howard Schultz
Founded in: 1971
First Store: Seattle
Number of Stores: 15,000
Number of Countries: 54

Starbucks 5 ways of being:
• Be welcoming
• Be genuine
• Be considerate
• Be knowledgeable
• Be involved
“the Starbucks experience”, Joseph A. Michelli


Business Starbucks
Model

Starbucks Online Community
Global Online Footprint
Quick Facts:

Starbucks Hosted Communities:
MyStarbucksIdea: 107k ideas

Public Social Network Followers
Facebook: 23.57million
Twitter: 1.54 million
Flickr: 6,195
Youtube: 9,005

Integrated Social Platform
Frappuccino.com: 76k Frappuccinos
Frappuccino Public Social Networks
Frappuccino FB 7.1m FB followers
Frappuccino Twitter 9,153 followers

Numbers updated May 2011


Changing Changing Business Model Starbucks Engaged Community
Business Starbucks The new loyalty model
Model

Hosted Communities Branded Public Social Network Supported Communities

MyStarbucksIdea: 107k ideas
Ideas ARE Implemented:
VIE Instant Coffee
New Cup sizes
• Pico small size
• Trenta - supersize


Changing Changing Business Model Engaging with & learning
Business Starbucks from the Community….
Model

Starbucks Hosted Community www.mystarbucksidea.com

Starbucks provide an idea platform for their community to share and vote on ideas for Starbucks to
investigate and potentially launch.

A couple of the implemented and community supported ideas are:
adding new coffee cup sizes (pico and trenta in US and Canada)
launching Vie instant coffee

There are 107,000 ideas currently on the www.mystarbucksidea.com website with other
community members voting for each of them.


Changing New Product Launch
Changing Business Model
Business VIA Instant Coffee
Starbucks
Model


Changing Changing Business Model the results..2008 - 2010
Business Starbucks
Model

The Numbers…. Operational Improvements

The Changing Business Model …. New Model opens other
growth opportunities


Business Starbucks
Model

Purpose Test, trial & review social media initiatives
Assess their value to the business

Strategy Setup a small team to test, trial and report on learnings
Listen to and learn from customers, engage where appropriate
Evaluate social initiatives against business results
Develop and integrate social into business strategy

Tools Initial Tools (2007/8) Blog, Youtube, Facebook, Twitter etc..

Current Tools Facebook, Twitter, Youtube, hosted
community, monitoring & listening

Result Proven Model for social engagement
New product development and business Innovation
Direct results to business US$180m from VIA product
Integration across all business units
Key focus of growth for Starbucks senior executive team


Business Giffgaff
Model

giffgaff is a “sim-only” mobile virtual network which is
owned by Telefonica/02.

giffgaff is an old Scottish phrase meaning mutual giving
or reciprocity which is the basis of social or community
business models.

giffgaff has been setup by Telefonica/02 as an internal
start-up limited company with a new community driven
business model with its own independent management
team and P&L

Initial funding is approximately £2million and the team
is 16 people.

The goal behind the business is to develop a
community which provides
its own customer support platform, reducing costs,
new business ideas
feedback on the business and services


Business Giffgaff
Model

The community is active, however
the most activity comes form the
support area, where the members
provide advice, knowledge and
Products support to each other around the
products and service.

giffgaff products/offers are simple,
clear and changed/refined through
feedback from the community. Consumers

Business
Ideas Customer
Member Support
Acquisition

The community support activity
vastly reduces the customer
support costs and can provide
insight into areas of concern
and also feeds back into new
business ideas.


Business Giffgaff
Model

Purpose Telefonica/02 wanted to trial a new social business model

Strategy Create a customer driven business model
Focusing on engagement through peer to peer customer support
identifying customer questions
to answer customer questions asap
to direct customer queries to correct internal team
to enable “real time” engagement with the airline

Tools Primary Tools Owned hosted community
Listening Platforms
Secondary Tools External hosted communities
Public Social Networks, Facebook, Twitter

Result 2011 – giffgaff recognised for innovation in business and marketing
accelerating participation in online communities, especially support


Develop, implement and manage strategy

SOCIAL STRATEGY FRAMEWORK


Social Strategy Framework
Learn from Conversations
Listen
Student needs
Who is talking Agent needs
Where are they talking School Positioning
What are they talking about Cambridge Education Group
Who is listening Positioning
Is it positive or negative Competitor Positioning
To competitor conversations Are people engaging with
??? Cambridge Education Group
Are people engaging about
schools/courses programs
Are social initiatives working?

Social Media Strategy Management

Grow Engage
Audiences
What does success look like? Channels
Grow students
Topics & Themes
Grow Cambridge
Education Group Customer Experience
Grow schools Employee Engagement
Grow ??? Plan, implement
Identify business goals Moderate, Manage
Identify social measures Review
????

Internal Employee/Colleague Awareness & Education Program


Student Acquisition & Alumni Retention Funnel

Integrated Student Acquisition
Social, SEO, WOM, Affiliates, Adwords….

Students can access service via multiple
channels and interest is sparked

Students, Parents, Agents
Student Clicks on ANY channel to find out more

Student/parent joins community

Student/parent applies to school

Student/parent participates in community

Student participates in school
community

Student builds school networks &
joins alumni

Student becomes advocate
& promotes service


Social Strategy Workstreams

•Company Guidelines
•Roles & Responsibilities
Social
Business
Policy
•Internal Skills
• Current skill
• New Skills for current team/internal training
• New hires)
•External Partnerships
People

•Business Operating Model (which teams are responsible for each activity)
• Listening Strategy
• Social Media Customer Engagement
• Digital Brand Management
Operational • Real time customer Support
Processes
• What is the customer value proposition
• What is the new online Customer Experience
• Create Customer Journeys/Use Cases
• Develop Customer Engagement Model
Customer • Identify Primary Communication Channels
Experience
• Listening
• Community Management
• Mobile Apps (buy, build or partner)
• Content (buy, build or partner
Tools • Website design
&
Partners
Frequency (no of students signing up for schools)
Reach (increase in customers/site visits)
Conversion (lookers to bookers)
Engagement (flow of communication)
Other measures may be identified through project activities
Measures


julie@purplespinnaker.com
+44 7887 644 799

Thank You

Introduction to social business models 8th august 2011 - small

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Introduction to social business models 8th august 2011 - small