McKinsey & Company | 1
McKinsey on Marketing & Sales – Slideshare Brief LAREINA YEE | @LareinaYee @McK_MktgSales The Social Enterprise How your customers produce and consume in the social world

McKinsey & Company | 2
Productivity & Management Social is shaping enterprise

McKinsey & Company | 3
Social is easier today

McKinsey & Company | 4
Record speed adoption SOURCE: Multiple press reports Time to reach 50 million users Radio 13 years iPod 3 years Internet 4 years Facebook 1 year Twitter 9 months TV 38 years

McKinsey & Company | 5
Social is everyone SOURCE: eMarketer, February 2011, McKinsey Global Institute Analysis Age NOTE: Numbers may not sum due to rounding. 16 14 13 20 18 17 22 21 21 65+ 15 2 12--17 2011 0-11 18-24 25-34 35-44 45-54 55-64 18 10 4 2010 2 17 15 9 4 2009 2 16 14 8 3% of total US users

McKinsey & Company | 6
Social is growing faster than traditional communications Unique monthly visitors SOURCE: comScore Media Metrix, October 2011; McKinsey Global Institute Analysis 31 36 -5 p.p. 2011 64 2007 69 53 69 -16 p.p. 31 47 44 18 100% = 1,430 +26 p.p. 82 76056 E-mail Instant messaging Social networking Users of service Non-users % of global online population

McKinsey & Company | 7
Enterprise usage is growing fast SOURCE: McKinsey Global Institute 2011 41 2008 29 2011 50 2008 23 2011 38 2008 27 Blogs Video Sharing Social Networking % of respondents of enterprise users Social is in the enterprise

McKinsey & Company | 8
Social impacts enterprise processes SOURCE: McKinsey web 2.0 survey, 2011, McKinsey Quarterly Scanning external environment Finding new ideas Managing projects Developing strategic plan Allocating resources Social networking n = 1,728 Wikis n = 809 Micro- blogging n = 654 Prediction markets n = 190 Blogs n = 1,322 40 9 13 529 36 12 13 429 19 17 5 212 16 8 5 411 10 4 2 25 20 - 40% 5 - 10% 10 - 20% Less than 5% Top Ranking Dimensions Total 75 73 56 43 30

McKinsey & Company | 9
Greater collaboration drives value SOURCE: McKinsey Global Institute analysis Total value at stake % of revenue Product development Operations and distribution Sales and marketing Customer service Business support functions Financial services Insurance— P&C ~3–6 Insurance— life ~3–4 Retail banking ~4–7 Consumer packaged goods ~5–6 Professional services n/a ~8–11 Advanced manufacturing Semi- conductors ~5–7 Automotive ~4–6 <0.5 0.5–2.0 >2.0 Potential value chain productivity benefit

McKinsey & Company | 10
Distributes decision making Creates permeable organizational boundaries Rapid adaptation and a shift to more iterative problem solving and product delivery Your customers’ environment is different

McKinsey & Company | 11
5ways social is shaping your customers

McKinsey & Company | 12
Customers conduct research on products and services well ahead of the official start to the sales cycle #1DIY prospecting

McKinsey & Company | 13
Peer influence Customers pulse their peers at every step of the journey #2

McKinsey & Company | 14
Trial before purchase User testing; grassroot support; no longer a single decision instance; smaller purchase bundles #3

McKinsey & Company | 15
Buyer & user are the same#4 Changes decision and influence points in enterprise purchasing

McKinsey & Company | 16
Click to compare Pricing transparency is foundational; consumer expectations have shaped enterprise behavior #5

McKinsey & Company | 17
Change is good Reboot sales & marketing teams

McKinsey & Company | 18SOURCE:
Internet search, Salesforce.com video library; KLM Facebook page Reimagine data and customer loyalty

McKinsey & Company | 19SOURCE:
McKinsey Marketing and Sales practice, McKinsey Quarterly ―The consumer decision journey‖ 39 26 22 28 11 12 26 42 100% Marketing led by the company Marketing led by the consumer Previous experience with product/brand Contact in store/ with sales agent 31 5 37 21 ▪ Word of mouth ▪ Online research ▪ Recommendations/ criticisms ▪ Traditional advertising ▪ Direct marketing ▪ Sponsorship ▪ Store experience Consider | Evaluate | Buy Rethink how you reach customers

McKinsey & Company | 20
9.3% increase in customer satisfaction as benchmarked by American Customer Satisfaction Index 150,000 customers helped through Twitter Personalized 10 versus 25,000 @comcastcares = ―Make it Right‖ Alternative rather than primary customer support channel Handles customer complaint in public arena SOURCE: Internet search, Comcast Twitter Feed, Business Week 2009 ―Comcast’s Twitter Man‖ Reimagine service and information

McKinsey & Company | 21SOURCE:
McKinsey expert interviews Customer asks Account Leader for additional information about product capabilities . . . ~5-10 emails ~3 man hours 2 days round trip ~5-10 tweets/ Chatters/ Jabbers ~30 minutes 2 hours round trip Redefine sales team workflow

McKinsey & Company | 22
The business case is clear Your customers’ expectations are shifting Be ready to adapt Social sales & marketing

McKinsey & Company | 23
LAREINA YEE | @LAREINAYEE @McK_CMSOForum ―Social economy: unlocking value and productivity through social technologies‖ http://www.mckinsey.com/insights/mgi The Social Enterprise How your customers produce and consume in the social world