Understand Your Customers’ Social Behaviors<br
/>Charlene Li<br />Altimeter Group<br />January 2010<br />1<br />Jeremiah Owyang<br />Altimeter Group<br />#socialgraphics<br />

Research is the foundation of
any strategy –without it, you’re just “fondling the hammer.”<br />This webinar (Part 1) will focus on how to use socialgraphics to create your own Engagement Pyramid.<br />Part 2 will focus on developing a social strategy based on goals, and getting your company ready.<br />A 2-part series<br />2<br />

A company who sells ‘snackums’
is trying to reach moms.<br />Brands would find out who has the biggest number of moms, HGTV, Food Network.<br />Apply traditional demographics, and broadcast marketing<br />Yet brands miss out on the specific behaviors of consumers –and their intricate relationships online.<br />The Old Way? Carpet Bombing<br />3<br />

Socialgraphics<br />4<br />Demographic<br />Geographic<br />Psychographic<br
/>Behavioral<br />Socialgraphic<br />

Where are your customers online?<br
/>What are your customers’ social behaviors online?<br />What social information or people do your customers rely on?<br />What is your customers’ social influence? Who trusts them?<br />How do your customers use social technologies in the context of your products.<br />Socialgraphics asks key questions<br />5<br />

90-9-1 Principle<br />6<br />“In social
groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule where:”<br />

Social technology adoption by consumers
is no longer nascent – it’s nearly a mainstream activity.<br />To be accurate in your social strategy, you must know the specific behaviors of your customer base.<br />This updated framework provides a modern approach to social strategy.<br />An updated framework<br />7<br />

The Engagement Pyramid<br />8<br />Curating<br
/>Producing<br />Commenting<br />Sharing<br />Watching<br />

Watching<br />9<br />Curating<br />Producing<br />Commenting<br
/>Sharing<br />Watching<br />

What?:Consume content only, e.g. visit
social networking sites, read blogs, watch videos, or listen to podcasts<br />Why?: Seeking social-created content to help with making decisions, learning from peers, or entertainment<br />Watching<br />10<br />

Watching<br />11<br />Most people watch
videos on YouTube – very few upload.<br />

How to Engage?:<br />First, understand
the content that they are currently consuming.<br />Be relevant - what do customers want to read, watch, or hear? <br />Create content that engages Watching, based upon existing habits.<br />Tactics: Engaging Watching<br />12<br />

Sharing<br />13<br />Curating<br />Producing<br />Commenting<br
/>Sharing<br />Watching<br />

What?: Update status on social
sites or Twitter, upload/forward photos, videos, articles, etc.<br />Why?: Want to share the information they have with peers, both to support others, and demonstrate knowledge<br />Sharing<br />14<br />

Sharing<br />15<br />Twitter enables real-time
sharing.<br />

Sharing<br />16<br />ShareThis reported a
200% increase in sharing through the ShareThis button in 2009. Overall, sharing is growing. <br />

How to Engage?:<br />Simplify and
innovate sharing tools, see “ShareThis.com” and “AddThis.com”<br />Advanced should seek Gigya*, Pluck, Kickapps.<br />Recognition and rewards<br />Allow Facebook, LinkedIn and Twitter connect features<br />Tactics: Engaging Sharing<br />17<br />* Disclosure: An Altimeter Group client.<br />

Commenting<br />18<br />Curating<br />Producing<br />Commenting<br
/>Sharing<br />Watching<br />

What?: Respond to others’ content,
for e.g. comment on blogs or news stories, review or rate products<br />Why?: Actively participate, support, or contribute ideas/opinions, but usually one-off’s <br />Commenting<br />19<br />

Commenting<br />20<br />Facebook commenting and
“Likes” simplified how users responded to other people’s content.<br />

Commenting<br />21<br />Retail sites encourage
ratings and reviews by shoppers.<br />

How to Engage?:<br />Allow every
webpage to have commenting features<br />Develop a community policy<br />Foster an open and friendly environment (and discourage spammers and trolls)<br />Seek community vendors like Lithium*, Jive, Mzinga, Awareness, LiveWorld*, Kickapps, Pluck.<br />Tactics: Engaging Commenting<br />22<br />* Disclosure: An Altimeter Group client.<br />

Producing<br />23<br />Curating<br />Producing<br />Commenting<br
/>Sharing<br />Watching<br />

What?: Create and publish their
own content, for e.g. websites, blogs, or podcasts<br />Why?: Want to express identity, own content, be heard, or be recognized<br />Producing<br />24<br />

Producing<br />25<br />

Producing<br />26<br />

How to Engage?:<br />Become a
platform for the voice of your customers.<br />Provide public recognition for most helpful community members.<br />Sponsored Discussions: Intel Insiders, Microsoft MVP, Walmart Elevenmoms<br />Note: Understand and abide by FTC Guidelines<br />Tactics: Engaging Producing<br />27<br />

Curating<br />28<br />Curating<br />Producing<br />Commenting<br
/>Sharing<br />Watching<br />

What?: Moderate or are heavily
involved in online communities, for ex. Wikipedia, fan pages, or discussion boards<br />Why?: Invested in success of a product, service, or community, want to give back, or be recognized <br />Curating<br />29<br />

Curating<br />30<br />The Coca-Cola Facebook
fan page was started, and continues to be administered, by two regular fans.<br />

Curating<br />31<br />Dell Community Ambassadors
help manage and support customer forums.<br />

How to Engage?:<br />Rely on
them as trusted advisors, consider them non-paid partners<br />Identify influencers or community builders, recognize them in public.<br />Tactics: Engaging Curating<br />32<br />

Read tweets (Watching)<br />Re-tweet (Sharing)<br
/>@reply (Commenting)<br />Tweet (Sharing/Producing)<br />#hashtag (Curating)<br />The Twitter Problem<br />33<br />

Engagement Pyramid Data<br />34<br />Source:
Global Wave Index Wave 1, Trendstream.net, July 2009<br />

Conduct research to identify the
social behaviors of your customer base – before you do anything<br />Also identify:<br />Where are they online: Surveys or brand monitoring<br />Who do they trust: Surveys<br />Who do they influence: Survey or brand monitoring<br />How they use these tools in context of your products: Most often surveys.<br />When you first understand your customers, your marketing efforts will naturally unfold.<br />Putting it to work<br />35<br />

1) Where are your customers
online?<br />Action: Don’t aimlessly approach social networks without knowing if they are there, if they are in Hyves, go there.<br />2) What are your customers’ social behaviors online?<br />Action: Which social features should we deploy? Example: if they are commenters, allow them to comment.<br />3) What social information or people do your customers rely on?<br />Action: If they rely on their friends, facilitate a marketing program that encourages customers to share with friends.<br />4) What is your customers’ social influence? Who trusts them?<br />Action: If your customers are trusted by others, highlight your customers in front of their community. Example: Intercontintental Hotel features the photos created by top guests.<br />5) How do your customers use social in regards to your brand?<br />Action: Understand how customers use these tools in researching new products, decision making, and support<br />Socialgraphics makes you actionable<br />36<br />

Situation: A healthy snack food
company trying to reach moms, and their goal is to introduce them to a new product called “Snackums”. (fictional)<br />Where are they online today? <br />Use monitoring tools to find hot spots of conversations<br />Use survey to find specific URL locations through and open ended questions<br />Example: The data found that a third of the targeted moms visited Facebook at least weekly, and more than half visited at least monthly.<br />Conduct qualitative analysis to find out what topics moms are talking about.<br />Example: Brand monitoring indicated that the most talked about topic when discussing health foods was price and convenience.<br />What are their online social behaviors?<br />They deployed a survey, and found they are mainly watching and sharing, very few producers<br />But those that are producing are highly involved<br />New Way: Learning about Moms<br />37<br />

Findings: <br />Through the survey,
found that most moms don’t talk about the product. <br />However a smaller group did influence those that are watchers,<br />Yet those watchers, don’t share in that greater community, they share it with their immediate friends in Facebook.<br />Action<br />With this, this company was able to identify, who the influencers were, how to reach them, and to spur on word of mouth to the ‘average’ moms reaching a greater segment of customers. <br />Example: Activating Moms<br />38<br />

Understand the socialgraphics of your
customers by conducting surveys or obtaining secondary research.<br />You’ll need to get the data from multiple sources –we don’t have all the data.<br />We believe in ‘Open Research’ and we want to share –so the industry can advance together.<br />Couple with your existing profiles or personas of customers, create an engagement pyramid for each persona.<br />Next, identify what social goals your organization will take on (covered in our next webinar).<br />Summary<br />39<br />

Success in the Groundswell <br
/> requires Open Leadership<br />40<br />When people get what they need from each other<br />Have the confidence to let go and still inspire results<br />

Thank you<br />41<br />41<br />Charlene
Li<br />charlene@altimetergroup.com<br />blog.altimetergroup.com<br />Twitter: charleneli<br />Jeremiah Owyang<br />jeremiah@altimetergroup.com<br />web-strategist.com/blog<br />Twitter: jowyang<br />Follow the conversation at #socialgraphics<br />Slides and recording will be available at altimetergroup.com<br />

42<br />About Us<br />Altimeter Group
is a strategy consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Practice.<br />Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.<br />