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World Class Communities




The Characteristics of Community Excellence
Rob Howard & Cecilia Edwards, Telligent




                                          2011
Table of Contents
Building World Class Communities                                                                      1
    Executive Summary                                                                                 1
    What is a community?                                                                              2
         Social is the new normal                                                                     2
         Social technology doesn’t equal community                                                    5
	        The	definition	of	community	is	regular	interaction,	a	common	objective,	and	relationships	   6
	        Social	media	facilitates	relationships;	community	has	an	objective			      	        	        7
	        Online	communities	are	part	of	the	social	ecosystem	       	        	      	        	        7
    Criteria for World Class Communities                                                              10
						   Company-owned	communities	 	              	        	       	        	      	        	        10
						   Relationship-oriented	     	      	       	        	       	        	      	        	        10
						   Active	membership	         	      	       	        	       	        	      	        	        10
						   Planned	sustainability	    	      	       	        	       	        	      	        	        10
    Characteristics of World Class Communities                                                        11
						   Identifiable	business	objectives	 	       	        	       	        	      	        	        11
						   An	emphasis	on	being	personal	 	          	        	       	        	      	        	        12
						   A	culture	of	belonging	    	      	       	        	       	        	      	        	        13
						   Major	source	of	relevant	content	 	       	        	       	        	      	        	        14
						   Leverage	the	wisdom	of	the	crowd	         	        	       	        	      	        	        15
						   Influential	members	are	highlighted	      	        	       	        	      	        	        16
						   Reward	with	pixels	        	      	       	        	       	        	      	        	        16
					    Establish	and	enforce	guidelines		        	        	       	        	      	        	        17
						   Membership	has	its	privileges	    	       	        	       	        	      	        	        18
    How to Become a World Class Community                                                             19
						   Back	to	basics	 	          	      	       	        	       	        	      	        	        19						
	        Think	big,	start	small	    	      	       	        	       	        	      	        	        19
						   Performance-based	metrics	        	       	        	       	        	      	        	        20
						   Be	visible	and	engaged	 	         	       	        	       	        	      	        	        20
						   Constantly	evolve	         	      	       	        	       	        	      	        	        21
    Conclusion                                                                                        22
Building World Class Communities



     Executive Summary
     There	is	a	revolution	happening	right	now.	It’s	name	is	social	networking.	Not	since	
     the	emergence	of	email	has	the	business	world	experienced	such	a	dramatic	shift.	To	
     stay	on	top	of	the	trend,	organizations	are	investing	aggressively	in	tools,	people,	and	
     processes.	This	includes	social	software	that	will	help	these	organizations	share	and	
     manage	information	socially	with	customers,	partners	and	employees.

     Gartner	predicts,	“The	worldwide	market	for	enterprise	social	software	will	top	$769	
     million	in	2011,	up	15.7	percent	from	the	$664	million	spent	in	2010.”1 Businesses
     are	 building	 and	 launching	 a	 myriad	 of	 online	 communities.	 These	 community	
     investments	span	from	launching	proprietary	corporate	communities	to	investing	in	
     consumer	social	networking	sites	like	Facebook	and	Twitter.	All	of	this	is	in	an	effort	to	
     reach	new	audiences	and	sell	more	products	and	services.	
                                                                                                                       “Our end goal is to have
     However,	 littered	 along	 this	 changing	 landscape	 are	 numerous	 ghost	 towns	 —	                             a world class commu-
     communities	that	have	failed	due	to	lack	of	participation,	too	much	control,	or	lack	of	
                                                                                                                       nity filled with passion-
     response	to	users’	changing	needs.	
                                                                                                                       ate and engaged users.
                                                                                                                       Users willing to discuss
     Why	is	it	that	some	communities	prosper	while	others	wither	and	die?	Is	the	creation	
                                                                                                                       not just the positives,
     of	a	great	online	community	simply	luck?	Should	businesses	simply	throw	money	at	
     community	technology,	features	and	functionality,	and	then	simply	sit	back	and	watch	                             but the areas we need to
     it	grow?	Or	is	there	a	more	precise	and	predictable	process	that	any	organization	can	                            improve and then help us
     be	guided	through?                                                                                                collaboratively make
                                                                                                                       those improvements.
     Much	research	and	analysis	has	been	done	to	identify	leading	communities;	these	                                  Once we have that type
     leading	communities	are	widely	agreed	upon.	However,	little	research	has	yet	been	                                of user base, our
     performed	to	identify	what	causes	one	community	to	succeed	and	another	to	fail	—	                                 opportunities with the
     and	more	importantly,	what	makes	a	community	“world	class”.                                                       community expand
                                                                                                                       immensely.”

                                                                                                                       Telligent World Class Communities
                                                                                                                       Survey	Participant

     1.		Predicts	2011:	CRM	Enters	a	Three-Year	Shake-Up,	Gartner,	November,	2010



                                                                                    Building World Class Communities   1
11-07-01
World class communities are those which harness the knowledge and passion
      of their audiences to improve customers’ brand perception, and create
      measurable business results.

      The	 purpose	 of	 this	 white	 paper	 is	 to	 breakdown	 what	 makes	 a	 community	 world	
      class	and	how	those	attributes	can	be	duplicated.




      What is a community?
      An	 online	 community	 is	 a	 website	 or	 part	 of	 a	 website	 that	 is	 typically	 owned	 by	
      a	business	or	organization.	It	makes	use	of	social	software	technologies	—	blogs,	
      forums,	user	profiles	—	to	enable	interaction	between	people	who	 have	a	shared	
      interest	in	the	objective.	The	community	has	a	specific	purpose	or	objective	that	the	
      organization	and	the	audience	together	desire	to	accomplish.

      Social is the new normal
      Social	has	become	the	new	“normal”	for	day-to-day	communication.	More	importantly,	
      it	is	the	new	measure	for	how	important	decisions	are	made.	Harvard Business Review
      called	social,	“the	most	significant	business	development	of	2010”	that is	“enabling	
      business	leaders	to	regain	trust	and	credibility	lost	over	the	last	10	years.”2

      Social	networks	like	Facebook	have	become	part	of	our	daily	routine.	Its	more	than	
      500	million	users	spend	approximately	700	billion	minutes	on	the	site	every	month.3
      Telligent	conducted	a	World	Class	Communities	survey	and	found	that	63	percent	of	
      the	participants	had	a	corporate	Facebook	account	and	78	percent	had	a	corporate	
      Twitter	account.




      2.		How	Social	Networking	Has	Changed	Business,	Bill	George,	Harvard	Business	Review,	December	23,	2010
      3.		Facebook	worldwide	usage	statistics,	December,	2010


                                                                                   Building World Class Communities   2
11-07-01
Current deployments of social media or communities
                                                                                                       Response
                                                                                                        Percent

       Twitter Account                                                                                     78.0%

       Facebook Account                                                                                    63.4%

       YouTube Account                                                                                     58.5%

       Business-to-business Community                                                                      43.9%

       Customer Support Community                                                                          43.9%

       Association Member-to-member Community                                                              36.6%

       Interactive Marketing Community                                                                     24.4%

                                                                    Social networks are part of our daily routine.



     This	commitment	to	social	is	further	validated	by	research	conducted	with	Forrester	
     which	 analyzed	 spending	 patterns	 for	 social	 investments.	 “Social	 media	 spending	
     is	expected	to	grow	at	a	compound	annual	growth	rate	of	34%	over	the	next	four	
     years.“4
                                                                                                                       Organizations that ignore
     Forrester	found	that	“86%	of	interactive	marketers	plan	to	increase	their	spending	                               social technology as part
     on	social	media	over	the	next	four	years…engaging	and	managing	a	community	of	                                    of the new normal risk
     consumers	is	a	top	priority.”5                                                                                    missing out on a major
                                                                                                                       market opportunity and
     U.S.	drug	manufacturers,	for	example,	realize	the	importance	of	social	as	a	channel	                              will have to spend sig-
     to	their	customers.	They	have	been	excluded	from	full	engagement	because	of	the	
     requirement	to	communicate	the	fine	print	of	the	risks	associated	with	particular	drugs.	
                                                                                                                       nificantly to catch up to
     They	have	recently,	however,	been	pressing	the	U.S.F.D.A.	for	legislation	to	enable	                              the competition.
     them	to	advertise	in	social	networks	and	thus	more	fully	engage	with	their	customers	
     the	way	the	other	industries	can.6




     	4.	Midyear	Planning,	Forrester	Research,	July	29,	2010
     	5.	Community	Management	Checklist,	Forrester	Research,	June	29,	2010
     	6.	As	Drug	Marketers	Embrace	Social	Media,	FDA	Mulls	New	Rules,	National	Public	Radio,	August	12,	2010


                                                                                    Building World Class Communities   3
11-07-01
Social	 forms	 of	 communication	 are	 also	 present	 inside of	 companies.	 Businesses	
      recognize	the	value	of	creating	communities	within	their	organization.	Andrew	McAfee	
      coined	the	term	“enterprise	2.0”	to	describe	how	businesses	use	social	technologies	
      to	more	efficiently	manage	the	collaboration	that	takes	place	day-to-day	within	the	
      business.	

      Why	do	businesses	care	about	bringing	social	technologies	into	the	enterprise?	IDC	
      estimates	that	upwards	of	30	percent	of	employees’	time	is	focused	on	finding	the	
      data	 they	 need	 to	 accomplish	 a	 task,	 and	 that	 another	 15-25	 percent	 is	 spent	 on	
      non-productive	information-related	activities	instead	of	asking	colleagues	for	help.7
      Social	technologies	are	aimed	at	significantly	reducing	this	non-productive	time.

      In	Telligent’s	World	Class	Communities	survey,	respondents	who	deployed	enterprise	
      2.0	communities	confirms	this	observation:


       Greatest Benefit of Enterprise 2.0 (Employee Communities)

                       2.4%         2.4%                          Solving business problems through
                                                                  collaboration
                                                                  Connecting employees to strengthen
                                                                  the company's culture
                                       19.5%
                                                                  Engaging employees to drive innovation

                                                                  Understanding the needs and
                  56.1%                     14.6%                 wants of employees

                                                                  Identifying experts within the organization

                                                2.4%              Communicating corporate messages
                                                                  quickly and effectively
                                                   There are numerous business benefits to internal communities.




      7. The High Cost of Not Finding Information, IDC, 2001


                                                                                      Building World Class Communities   4
11-07-01
Social technology doesn’t equal community
     Businesses	have	not	hesitated	in	responding	to	the	new	social	wave	as	evidenced	by	
     the	current	and	predicted	budgets	allocated	to	social	spending.	

     Technology	 plays	 a	 very	 important	 role	 in	 facilitating	 a	 community,	 but	 solely	 as	
     an	enabler.	A	clear	set	of	technology	norms	are	emerging	for	everyone	due	to	the	
     widespread	adoption	of	social	networks	–	predominately	Facebook.		For	example,	
     they	 expect	 modern	 and	 robust	 forums	 for	 support,	 blogs	 for	 learning	 about	 new	
     insights	directly	from	the	business,	and	comments,	ratings,	and	reviews.

     In	Telligent’s	World	Class	Communities	survey,	45	percent	of	the	participants	indicated	
     that	technology	was	very	important	in	terms	of	capabilities	and	ranked	it	third	after	
     ease	of	use	and	search	tools.


       Importance of Community Capabilities

                                               163                Search tools

                                                                                                           “Engagement is what
                                123                               Ease of use
                                                                                                           makes a community
                                                                  Richness of community                    great, but the tools/
                                121                               technologies (wikis, blogs,
                                                                  forums, etc.)                            platform need to at least
                  80                                              Rich user profiles                       not be a hindrance, but
                                                                                                           at best, facilitate, and
                                                                  Branding/look-and-feel                   expand users’ participa-
                74                                                of the community
                                                                                                           tion.”
           50      75      100     125        150      175
                         Relevance Points
                                                                                                           Telligent World Class Communities
                                              The most important community capability is usability.        Survey	Participant




                                                                        Building World Class Communities   5
11-07-01
The definition of community is regular interaction, a common objective,
      and relationships
      Online	communities	form	when	the	technology	facilitates	regular	interaction	around	
      a	 common	 cause.	 For	 example,	 today	 people	 expect	 and	 desire	 to	 troubleshoot	
      problems	themselves	rather	than	contact	a	help	center	via	the	phone.

      Most	consumers	regularly	—	often	daily	—	use	Google	or	other	search	engines	to	
      seek	out	information	for	particular	problems	they	encounter.	“Where	is	a	good	place	
      to	eat	near	here?”	“What	kind	of	hybrid	car	should	I	buy?”	“What	do	people	similar	to	
      me	recommend	that	I	read?”

      It	is	the	dialog	that	occurs	within	the	pages	found	by	Google	that	matters	most	to	our	                                          While search technology
      decision	making	process.	People	trust	search	engines	to	narrow	the	information	they	                                             is great, the simple ques-
      need	to	look	at,	but	decisions	are	made	based	on	what	peers	say.
                                                                                                                                       tion of, “What is the best
      Consumers	want	to	interact	with	peers	and	friends	to	learn	what	recommendations	                                                 laptop?” yields nearly
      they	have.	Research	from	the	Nielsen	Global	Online	Consumer	Survey	shows	that	                                                   500,000 results in Google.
      90	percent	of	consumers	trust	peer	recommendations.8

      Modern	consumer	search	engines	recognize	this.	Google	includes	information	about	
      discussions	 within	 search	 results	 to	 help	 you	 quickly	 see	 how	 many	 people	 have	
      responded	 on	 a	 given	 topic.	 In	 an	 interesting	 side	 note,	 Facebook	 has	 taken	 an	
      increasing	portion	of	this	search	market	space	from	Google	in	the	last	few	years.
                                                                                                                                       Your customers are talk-
      Interactions can be both positive and negative                                                                                   ing about you. Ignore
      In	 1983,	 TARP	 Worldwide,	 a	 customer	 experience	 agency,	 famously	 published	 a	                                           them at your own peril.
      study	which	stated	that	one	disgruntled	client	speaks	with	an	average	of	10	clients.9

      Today	in	the	United	States,	there	are	upwards	of	3.5	billion	brand-related	conversations	
      happening	every	day,	and	social	media	enables	people	to	move	these	conversations	
      online.	According	to	more	recent	research	by	TARP	Worldwide,	one	unhappy	client	
      who	escalates	their	issue	to	management	represents	50	clients,	on	average,	who	
      either	 complain	 locally	 or	 don’t	 complain	 at	 all.	 And	 taken	 further,	 one	 escalated	
      complaint	is	spread	to	over	1,300	people	via	word-of-mouth.10                                                                    1 unhappy customer ex-
                                                                                                                                       perience = 50 customers
                                                                                                                                       and 1,300 conversations




      8. Nielsen Global Online Consumer Survey, 2009
      9. The Bottom Line Benefits of Consumer Education, Atlanta, GA: Coca Cola. Inc., TARP, 1983
      10. TARP Worldwide Research, 2008



                                                                                                    Building World Class Communities   6
11-07-01
Social Network                                      Online Community




                                           Primary Purpose                Business
                 Relationships                                            Objectives



                                           Primary Enabler



                              The purposes of social networks and online communities are different.


     Social media facilitates relationships; community has an objective
     As	stated	earlier,	social	networks	and	communities	are	very	different.	In	the	illustration	
     above	the	primary	purposes	and	enablers	of	both	social	networks	and	communities	
     are	shown.

     A	 social	 network’s	 primary	 purpose	 is	 creating	 and	 fostering	 relationships,	 and	
     the	primary	enabler	is	common	activities.	For	example,	Facebook	enables	people	
     to	 connect	 with	 one	 another,	 but	 the	 relationships	 that	 are	 created	 typically	 have	
     commonality	between	activities:	school,	work,	sports,	etc.

     Contrast	this	with	a	community,	whose	primary	purpose	is	a	business	objective	(e.g.,	
     product	support.)	The	enabler	for	a	community	is	the	relationships	that	form	to	meet	
     business	 goals.	 For	 example,	 a	 community	 like	 Psion	 Teklogix’s	 provides	 support	
     to	 customers,	 but	 the	 enabler	 is	 the	 relationships	 that	 form	 between	 customers,	
     prospects,	partners,	and	experts	as	they	ask	and	answer	questions.

     Online communities are part of the social ecosystem
     Does	this	mean	that	a	business	should	not	have	a	social	network,	but	instead	only	
     have	a	community?	No.	World	class	communities	recognize	that	social	media	is	a	new	
     channel	for	engaging	customers;	and	that	social	networks	complement	communities	
     via	sourcing	members,	providing	a	holistic	view	of	social	interaction	in	one	central	
     place.

     The	primary	purpose	of	a	social	network	is	social	—	to	facilitate	relationships	between	
     people	who	share	common	interests	—	while	a	community	exists	to	solve	a	specific	
     business	problem	through	relationships.




                                                                         Building World Class Communities   7
11-07-01
Businesses must understand that their audiences need a social ecosystem that is                                               Social fans are an asset
      comprised	 of	 both	 consumer-facing	 social	 networks	 as	 well	 as	 company-owned	                                          that you can build with a
      communities.	
                                                                                                                                    campaign and then tap
      Social	 media	 is	 providing	 marketers	 greater	 reach	 for	 less	 money.	According	 to	 a	                                  into again in the future
      2010	survey	sponsored	by	the	AMA,	within	one	year,	social	media	is	expected	to	be	                                            as long as they remain
      10	percent	of	all	marketing	budgets	and	18	percent	in	five	years.11                                                           engaged with your
                                                                                                                                    brand.


                                                   The Social Ecosystem

                                                                                     Forums
                     Participating                                         Wikis                 Blogs
                     Listening, establishing reputation




                     Managed
                     Listening, supporting, building
                     reputation, marketing
                                                                                     External
                                                                                   Communities

                     Owned                                                     Closed Network
                     Listening, supporting,
                     building relationships,
                     collaborating

                      Example: customer communities                                  Internal
                                                                                   Communities
                      Example: channels, members

                      Example: Intranets, communities of practice



                World Class Communities

           Understand what your strategy is at each layer of the Social Ecosystem. Your online community
                                                                                       is only one aspect.




      11. The CMO Survey Highlights and Insights, Christine Moorman and T. Austin Finch, CMOSurvey.org, August 2010



                                                                                                 Building World Class Communities   8
11-07-01
Telligent’s	 early	 research,	 documented	 in	 Mashable,	 identifies	 three	 types	 of	
     communities	 in	 the	 social	 universe	 that	 work	 together	 for	 businesses	 as	 an	
     ecosystem.12

     Participating
     These	 are	 communities	 started	 and	 managed	 by	 individuals	 or	 groups	 of	 users,	
     typically	 on	 consumer-facing	 social	 networking	 sites,	 but	 sometimes	 also	 with	
     proprietary	 software.	 Participating	 communities	 include	 Facebook,	 Twitter	 and	
     LinkedIn.	An	example	here	would	be	a	fan	site	for	Microsoft’s	Xbox	or	an	independent	
     Porsche	enthusiast	group.	Typically,	the	organization	whose	products	or	services	are	
     the	topic	of	discussion	can	participate,	but	has	no	authority	over	or	access	to	the	data	
     created	within	the	community.

     Managed
     These	 are	 communities	 started	 and	 managed	 by	 the	 organization,	 but	 run	 on	
     consumer-facing	social	networking	sites	like	Twitter,	Facebook	or	LinkedIn.	Examples	
     here	include	the	National	Breast	Cancer	Foundation’s	Facebook	page,	Starbucks’	
     Flickr	group	pool,	or	Dell’s	presence	on	Twitter.	The	organization	is	responsible	for	
     running	and	managing	the	community,	but	does	not	necessarily	benefit	from	the	rich	
     data	and	user	profiles	created	within	the	community.	Typically,	the	facilitator	of	the	
     community	(Twitter,	Facebook,	etc.)	benefits	the	most	from	the	underlying	data.

     Company-Owned
     These	 are	 communities	 owned	 and	 managed	 by	 a	 company	 typically	 running	
     commercial	 or	 open	 source	 community	 and	 enterprise	 collaboration	 software.	
     Examples	 include	 the	 National	 Breast	 Cancer	 Foundation’s	 community	 website,	
     Starbucks’	 blog,	 or	 Dell’s	 support	 community.	 The	 organization	 is	 responsible	 for	
     running	and	managing	the	community	and	benefits	from	rich	data	and	user	profiles	
     created	 within	 that	 community.	These	 include	 private	 B2B	 and	 internal	 employee-
     targeted	communities.




     12. How Businesses can Harness the Power of Online Communities, Rob Howard, Mashable, April 2010



                                                                                              Building World Class Communities   9
11-07-01
Criteria for World Class Communities
       In	 the	 evaluation	 of	 world	 class	 communities,	 Telligent	 considered	 only	 those	
       communities	that	met	the	following	criteria:                                                       “...many communities
                                                                                                          that I find valuable (even
       Company-owned communities                                                                          the communities that
       There	are	many	great	communities	that	have	been	started	and	grown	to	world	class	                  appear on discussions/
       status	 through	 grass	 root	 efforts,	 such	 as	 Wikipedia.	 Some	 open-source	 software	
       communities,	 such	 as	 Linux,	 are	 great	 examples	 of	 well-disciplined,	 engaged,	
                                                                                                          comments in blogs), but
       cohesive	communities.	In	fact,	many	of	these	communities	are	the	pioneers	in	this	                 none are outstanding.
       space	since	widespread	enterprise	communities	are	less	than	a	decade	old.	While	                   None make me stop and
       there	is	much	to	learn	from	these	communities,	their	challenges	and	objectives	are	                say, this is the way to do
       different	from	those	of	businesses,	so	we	chose	to	focus	only	on	company-owned	
       communities	—	external	and	internal.
                                                                                                          things.”

                                                                                                          Telligent World Class Communities
       Relationship-oriented                                                                              Survey	Participant
       As	 described	 earlier,	 community	 is	 not	 synonymous	 with	 engagement.	 While	
       community	cannot	take	place	without	engagement,	engagement	can	certainly	take	
       place	without	community.	Many	support	forums	fall	into	this	category.	Engagement	is	
       taking	place	in	the	form	of	asking	questions	and	getting	answers.	There	is	even	a	bit	
       of	reputation	that	can	be	developed	by	the	most	frequent	answerers.	But	that	tends	
       to	be	where	the	engagement	ends	(i.e.	once	a	problem	is	solved,	the	engagement	
       is	over).	Thus,	no	relationship	is	formed.	World	class	communities	must	go	beyond	
       limited	engagement	to	create	a	sense	of	belonging	and	relationship.
                                                                                                          “...world class goals
       Active membership                                                                                  are still further out than
       While	 great	 design	 is	 important,	 people	 and	 engagement	 are	 imperative	 to	 all	           most have accomplished
       communities.	There	are	many	aspiring	communities	full	of	cool	features,	impressive	
       bells	and	whistles,	and	award	worthy	design,	but	lacking	an	audience.	So	while	ease	
                                                                                                          to date.”
       of	use	and	user	interface	can	certainly	enable	communities,	they	were	not	a	major	
                                                                                                          Telligent World Class Communities
       focus	for	this	report.	Visitors,	members,	and	engagement	are	what	matter	most.                     Survey	Participant

       Planned sustainability
       Many	communities	are	formed	around	specific	campaigns	—	e.g.	political	campaigns	
       or	product	launches	—	and	are	very	successful.	For	Telligent,	the	real	test	of	whether	
       these	communities	are	world	class	is	their	staying	power.	Is	there	a	way	to	keep	the	
       visitors	coming	and	keep	the	members	engaged	when	the	original	campaigns	end?	
       While	tactics	used	for	communities	around	campaigns	are	interesting	and	worthy	of	
       being	leveraged	in	world	class	communities,	we	looked	more	broadly	at	what	it	takes	
       to	remain	sustainable.




                                                                       Building World Class Communities   10
11-07-01
Characteristics of World Class
     Communities
     In	 the	 survey	 conducted	 for	 this	 research,	 Dell,	 Starbucks,	 Intuit,	 and	Apple	 were	
     identified	 by	 a	 few	 respondents	 as	 leaders	 to	 be	 emulated.	 Most	 respondents,	
     however,	could	not	provide	an	example	of	a	world	class	community.	Telligent	believes	
     that	while	true	leaders	exist,	it	may	be	too	early	to	declare	that	anyone	has	reached	
     world	class	status	on	all	fronts.	

     Though	no	current	communities	have	achieved	a	world	class	standard,	Telligent	has	
     identified	nine	characteristics	that	if	met	would	merit	“world	class”	status.

     1. Identifiable business objectives

     World	 class	 communities	 have	 balanced	 objectives:	 the	 company	 is	 meeting	
     their business goals and the members are using the community to address their
     needs	 (support,	 product	 information,	 word-of-mouth	 recommendations,	 employee	
     networking,	etc.).

     As	stated	earlier,	one	of	the	distinguishing	characteristics	of	a	community	versus	a	
     social	network	is	that	the	community	has	a	business	objective	enabled	through	the	
     member-to-member	relationships.

     Examples	of	business	objectives	include:
                                                                                                           World class communi-
     Support -	This	is	the	most	common	use	case	for	external-facing	communities.	The	                      ties can execute multiple
     community	 is	 used	 to	 enable	 crowdsourced	 support	 for	 a	 company’s	 product	 or	               strategies simultane-
     service.	Example communities: Dell, Microsoft XBox, American Express                                  ously, but must start with
                                                                                                           a clear focus.
     Interactive marketing	-	Branded	communities	are	not	new.	What	is	new	is	the	use	of	
     communities	to	capture	the	new	consumer	behavior:	socializing	the	buying	process	         	
     using	 the	 voice	 of	 the	 customers	 to	 help	 sell	 and	 recommend	 products.	 Example
     communities: Electronic Arts, Starbucks, Cadbury

     Networking -	Networking	communities	are	most	often	used	for	B2B	or	employee-
     driven	communities.	The	objective	within	a	networking	community	is	to	tap	into	the	
     unstructured	 people-driven	 knowledge	 streams	 that	 were	 previously	 inaccessible.	
     Example communities: US Department of Defense (APAN), Psion Teklogix, Procter
     & Gamble

     Employee collaboration	-	Research	conducted	by	IDC		identified	that	for	an	enterprise	
     to	“gain	the	greatest	leverage	from	its	‘information	assets,’	knowledge	workers	must	
     be	able	to	share	and	reuse	information	regardless	of	format	or	location.”13	Employee	
     collaboration	through	social	technologies	is	based	on	the	new	normal	behavior	pattern	
     of	 how	 consumers	 locate,	 use,	 and	 manage	 information.	 Example communities:
     Procter & Gamble, Texas Instruments, Intel
     13. The High Cost of Not Finding Information, IDC, 2001


                                                                        Building World Class Communities   11
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Examples	of	member	needs	include:

      Find answers to questions	 -	 The	 most	 common	 landing	 page	 for	 users	 of	 the	
      community	is	the	page	they	were	directed	to	by	a	search	system	—	either	internal	
      or	external.	The	majority	of	people	within	the	community	will	always	be	consumers:	
      those	looking	for	solutions	to	problems	or	answers	to	questions.

      Make decisions based on the experience of peers	-	Amazon	is	the	showcase	for	
      enabling	people	within	the	community	to	learn	and	make	buying	decisions	based	on	
      the	shared	experience	of	peers.	Other	examples	include	popular	weight-loss	sites	
      that	enable	community	members	to	discuss	their	results	with	one	another.

      Find people that have knowledge needed to complete a task -	This	is	a	common	
      use	 case	 internally.	 Employees	 want	 to	 leverage	 the	 power	 of	 the	 community	 to	
      understand	who	within	the	organization	has	the	information	needed	to	complete	a	
      given	task.	Many	organizations	realize	that	the	new	competitive	advantage	is	how	
      quickly	employees	can	use	information	to	make	decisions.

      Procter	&	Gamble	(P&G)	is	a	multinational	company	with	138,000	employees	in	160-
      plus	countries	that	faces	“...countless	opportunities	—	and	as	many	hurdles	—	for	
      P&G	to	connect	ideas	and	expertise.”14

      According	to	Michael	Fulton,	P&G’s	enterprise	architecture	capability	manager,	“Until	
      now,	wikis,	blogs,	podcasts	—	they	felt	like	the	place	for	the	techno-elite.	This	[social]	
      platform	makes	it	easy	for	everyone	to	participate.”		

      Using	a	new	internal	community	named	PeopleConnect,	a	150-person,	geographically	
      disbursed	work	group	came	together	in	two	months	rather	than	in	six	to	12.	“This	
      platform	drove	speed,	transparency	and	a	desire	to	engage	with	the	change	previously	
      unseen	at	P&G,”	Fulton	said.

      2. An emphasis on being personal

      World	class	communities	are	personal	and	emphasize	connecting	members	with	real	                                             Businesses must realize
      people	within	the	business.                                                                                                  that social is a revolution
                                                                                                                                   in both how
      World	class	communities	foster	real	dialog	and	are	authentic.	It	is	critically	important	                                    customers are serviced
      that	the	business	does	not	attempt	to	falsify	activity	to	inflate	what	appears	to	be	active	
      participation	 (i.e.,	 impersonating	 members	 and	 asking	 questions	 or	 impersonating	                                    and how they experience
      customers	and	answering	questions).	Authenticity	is	critical.                                                                the brand.

      In	2009,	a	global	computer	hardware	manufacturer	was	caught	paying	for	positive	
      reviews	of	its	products	on	Amazon.	Not	only	were	good	reviews	being	paid	for,	these	
      same	reviewers	—	many	of	whom	never	used	the	products	—	were	also	asked	to	
      classify	negative	reviews	as	“not	helpful”.	


      14. How Procter & Gamble Got Employees to Use Social Networking at Work, Rick Swanborg, CIO, August 24, 2009



                                                                                                Building World Class Communities   12
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Part	of	being	personal	and	real	is	encouraging	community	participants	to	fully	complete	
     their	profiles	with	photos	and	additional	profile	details	that	enable	the	community	to	
     learn	about	them.	

     This	is	especially	important	for	the	community	manager.	Members	want	to	get	to	know	
     (and	befriend)	the	community	manager.	Within	world	class	communities,	members	
     will	see	the	community	manager	as	the	face	of	the	brand.




                                                                                                          Communities thrive on
                                                                                                          personal connections.



                                     Lionel Menchaca, Dell’s Chief Blogger


     Rather	than	presenting	filtered	information	through	a	PR	agency,	businesses	such	
     as	Dell	enable	passionate	individuals	who	are	intimately	familiar	with	the	company’s	
     products	and	services	to	directly	represent	the	brand.

     When	 you	 encourage	 and	 foster	 participation	 from	 the	 company,	 you	 strengthen	
     the	brand	with	the	customers.	In	fact,	over	time	you’ll	see	customers	become	brand	
     champions.

     3. A culture of belonging

     World	class	communities	foster	a	culture	of	collaboration	and	engagement.	

     New	members	are	welcomed	into	the	community	with	clear	and	concise	directions	
     for	how	to	participate,	how	to	set	up	their	profile,	where	to	ask	questions,	and	how	to	
     find	information.	

     Relationships	are	a	key	ingredient	to	success.	Communities	should	enable	automatic	
     friending,	where	new	members	are	automatically	connected	with	a	designated	person	
     within	 the	 community,	 such	 as	 the	 community	 manager.	 This	 way,	 new	 members	
     immediately	have	a	starting	point	for	forming	relationships.




                                                                       Building World Class Communities   13
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Forming	 relationships	 early	 is	 critical,	 unlike	 social	 networks	 where	 the	 primary	
      objective	 is	 the	 relationship.	 Within	 a	 community	 the	 relationship	 is	 the	 enabler.	
      Communities	that	promote	relationships	and	networking	within	the	community	see	a	
      much	higher	return	rate.

      Altimeter	stated	that,	“while	no	one	yet	has	the	data	to	determine	direct	cause	and	
      effect,	 what	 we	 do	 find	 is	 a	 financial	 correlation	 between	 those	 who	 are	 deeply	
      engaged	and	those	who	outperform	their	peers.”15

      4. Major source of relevant content

      World	class	communities	focus	on	creating	relevant	and	timely	content	that	cannot	
      be	found	elsewhere.

      Telligent’s	 research	 into	 world	 class	 communities	 validated	 that	 people	 who	 use	
      communities	 place	 a	 high	 amount	 of	 value	 on	 the	 content:	 finding	 answers	 to	 	
      questions	 quickly	 and	 identifying	 relevant	 information	 were	 ranked	 as	 extremely	
      important.


       Typical Community Uses
                                                                    Nice To                              Extremely      Rating
                                                 Not Needed          Have              Important         Important     Average

       Finding answers quickly                      0.0% (0)       0.0% (0)            24.4% (10)        75.6% (31)      3.76

       Identifying relavent information             0.0% (0)       4.9% (2)            39.0% (16)        56.1% (23)      3.51

       Identifying experts and/or
       influential people                           2.5% (1)       7.5% (3)            35.0% (14)        55.0% (22)      3.43

       Forming relationships with other
                                                    0.0% (0)       12.5% (5)           55.0% (22)       32.5% (13)       3.20
       community members

       Contributing content like FAQs,
       recommendations, reviews,                    2.4% (1)       14.6% (6)           58.5% (24)       24.4% (10)       3.05
       and opinions

       Influencing other
                                                    4.9% (2)       22.0% (9)           48.8% (20)       24.4% (10)       2.93
       community members

       Receiving recognition
       for participation                            2.5% (1)       27.5% (11)          47.5% (19)       22.5% (9)        2.90

       Sharing content across social
       media channels (e.g. Facebook,               7.3% (3)       41.5% (17)          31.7% (13)       19.5% (8)        2.63
       LinkedIn, Twitter)
                                                                                Content searching is a community driver.




      15. The world’s most valuable brands. Who’s most engaged, Altimeter, July 2009


                                                                                                    Building World Class Communities   14
11-07-01
When	 creating	 the	 first	 developer	 community	 for	 Microsoft’s	 ASP.NET	 product	 in	
     2001,	the	number	one	emphasis	was	creating	unique	content	that	could	not	be	found	
     elsewhere.	 Conference	 materials,	 special	 articles,	 sample	 code,	 and	 even	 blogs	
     written	by	the	ASP.NET	team	members	provided	a	plethora	of	unique	content	to	draw	
     developers	into	the	community.	It	was	only	later	that	forums	were	added	to	enable	
     those	members	to	interact	with	each	other.

     The	majority	of	people	who	visit	a	community	have	a	specific	need	or	problem	they	
     wish	to	solve.	The	unique	content	found	in	a	community	is	the	starting	point	for	building	
     longer-term	engagement	between	a	member	and	the	company.
                                                                                                                                     “If you want to make a
     5. Leverage the wisdom of the crowd                                                                                             correct decision or solve
                                                                                                                                     a problem, large
     World	class	communities	harness	the	essence	of	the	wisdom	of	crowds.	The	term	                                                  groups of people are
     “crowdsourcing”	was	coined	by	Jeff	Howe	in	2006	to	describe	this.16
                                                                                                                                     smarter than a few
     Experts	don’t	know	everything,	and	a	company	cannot	know	everything	about	their	                                                experts.”
     own	products	and	services.	The	people	who	join	communities	have	a	valuable	set	
                                                                                                                                     James	Surowiecki,	author,	Wisdom	
     of	opinions,	experiences,	ideas,	and	insight	that	other	members	and	companies	can	                                              of	Crowds
     benefit	from.

     When	someone	asks	a	question	about	a	product,	world	class	communities	will	often	
     wait	to	allow	someone	from	the	community	a	chance	to	answer	before	they	jump	
     in	as	a	way	to	encourage	“crowd”	participation.	They	even	pose	product	questions	
     themselves	 that	 the	 community	 would	 be	 better	 equipped	 to	 answer	 than	 their	
     experts.

     Ideation	is	social	technology	that	enables	participants	to	suggest	and	vote	on	ideas.	
     It	 is	 increasingly	 more	 visible	 in	 world	 class	 communities	 to	 enable	 the	 product	
     development	process.	In	addition	to	polls	and	surveys,	communities	like	My	Starbucks	
     Idea	are	asking	for	input	on	ideas,	allowing	the	community	to	express	their	collective	
     opinions,	and	then	sharing	the	results.	What	takes	this	practice	to	a	world	class	level	
     is	that	Starbucks	holds	itself	accountable	to	the	community	and	reports	on	what	was	
     done	with	each	idea	presented	—	whether	it	was	adopted	or	not.

     Very	little	guessing	needs	to	be	done	when	a	company	is	able	to	get	the	direct	input	
     from	 the	 community	 first-hand	 on	 how	 the	 products	 are	 used,	 issues	 that	 arise,	
     resolutions	 to	 those	 issues,	 and	 preference	 for	 new	 products.	This	 is	 the	 value	 of	
     crowdsourcing.




      16. Crowdsourcing: The Next Big Thing In Social Networking, Robert Bravery, Business Computing World, November 24, 2010


                                                                                                 Building World Class Communities   15
11-07-01
6. Influential members are highlighted

      World	class	communities	know	who	the	influencers	for	their	products	are.	And	once	
      influencers	 have	 been	 identified,	 businesses	 reinforce	 who	 the	 influencers	 are	 by	
      publicly	identifying	them	within	the	community.

      An	influencer	in	the	context	of	online	communities	is	a	person	within	a	community	that	
      can	influence	behavior	of	other	members	of	the	community.	People	read	what	they	
      write,	 comment	 on	 their	 contributions,	 follow	 their	 lead	 on	 behavior,	 and	 generally	
      take	their	recommendations.

      This	influence	can	be	for	purchasing	decisions,	but	it	can	also	be	information	decisions.	
      And,	an	important	distinction	that	is	often	overlooked:	influencers	can	be	both	positive	
      and	negative.	Positive	influence	can	motivate	a	consumer	to	make	a	buying	decision	
      or	use	a	specific	document	for	decision	making.	However,	negative	influence	has	the	
      opposite	effect	of	influencing	a	decision	not	to	purchase.	

      Within	communities,	positive	influence	and	negative	influence	can	be	measured.	The	                                               Why is identifying
      positive	influencers	can	then	be	highlighted	by	the	organization.	                                                                influencers important?
                                                                                                                                        People are three times
      Word-of-mouth	 is	 the	 primary	 factor	 behind	 20	 to	 50	 percent	 of	 all	 purchase	                                          more likely to trust peers
      decisions.18	When	making	decisions,	people	want	to	know	who	the	experts	are	and	
      whose	opinions	they	should	listen	to.                                                                                             over advertising.17

      World	 class	 communities	 encourage	 the	 formation	 of	 influencers,	 highlight	 their	
      contributions	within	the	community,	and	work	with	them	to	affect	the	culture.

      7. Reward with “pixels”

      World	class	communities	showcase	members	of	the	community	and	reward	them	for	
      participation,	even	those	who	are	not	considered	influential.

      This	doesn’t	necessarily	need	to	be	monetary	acknowledgment	either.	Instead,	world	
      class	communities	adopt	the	“pixels	vs.	pennies”	approach,	using	badges	and	other	
      digital	tools	to	call	out	different	participant	levels.




       17. Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape, Jupiter Research, March 2007
       18. A new way to measure word-of-mouth marketing, McKinsey Quarterly, April 2010

                                                                                                     Building World Class Communities   16
11-07-01
One	 company	 that	 has	 demonstrated	 this	 in	 a	 world	 class	 fashion	 is	 GameStop.	
     GameInformer.com	 is	 the	 digital	 publication	 of	 GameInformer,	 a	 monthly	
     magazine	published	by	GameStop.	GameInformer.com	is	full	of	tips,	reviews,	and	
     most	 importantly,	 perspective	 from	 the	 avid	 gamers	 who	 participate	 there	 daily.	
     GameInformer.com	recently	won	a	Webby	award	for	its	community.

     What	makes	GameInformer.com	unique	is	its	extensive	use	of	reputation	within	the	
     community	to	enable	gamers	to	unlock	new	capabilities	as	their	reputation	and	trust	
     level	increases.	In	other	words,	GameInformer.com	showcases	and	acknowledges	
     members	 by	 recognizing	 their	 contributions	 and	 continuously	 promoting	 their	
     contributions.

     8. Establish and enforce guidelines

     World	class	communities	publish	a	set	of	community	participation	guidelines	(e.g.,	
     what	 is	 considered	 acceptable	 behavior)	 and	 enforce	 them.	 The	 guidelines	 exist	
     to	ensure	that	bullies	and	trolls	—	people	who	simply	like	to	argue	for	the	sake	of	
     arguing	—	are	properly	moderated	within	the	community.

     Helpful	guidelines	for	participation	should	not	be	overly	complicated	but	address	the	
     following:

           •	 Represent	yourself	accurately	-	no	impersonation	of	other	people.
           •	 Respect	the	rights	of	others,	including	copyrights,	personal	information,	etc.
           •	 No	harassment	or	harmful	behavior.
           •	 Only	include	content	that	is	relevant	to	the	community.

     World	 class	 communities	 also	 make	 it	 clear	 what	 will	 happen	 if	 the	 rules	 are	
     violated.

     These	guidelines	are	not	used,	however,	to	remove	negative	feedback	or	criticism	
     of	 the	 company.	 World	 class	 community	 owners	 recognize	 that	 most	 people	 only	
     criticize	when	they	feel	compelled	to	make	their	experience	better.	Therefore,	they	
     encourage	 authentic	 feedback	 and	 engage	 with	 community	 members	 on	 ways	 to	
     improve.

     Highly	successful	communities	will	eventually	become	self-policing.	Members,	rather	
     than	the	community	manager,	will	identify	content	that	requires	moderation	and	take	
     appropriate	 actions.	 However,	 it	 is	 highly	 suggested	 that	 the	 software	 running	 the	
     community	also	supports	some	manner	of	auditing	to	ensure	there	is	accountability	
     for	all	actions.




                                                                         Building World Class Communities   17
11-07-01
9. Membership has its privileges

      For	 communities	 to	 have	 long-term	 sustainability,	 members	 must	 feel	 a	 sense	 of	
      belonging	 and	 even	 exclusivity.	 Members	 of	 a	 community	 want	 to	 feel	 as	 though	
      they	 have	 the	 inside	 scoop	 on	 what	 is	 happening	 at	 the	 company	 and	 that	 their	
      membership	provides	them	access	to	things	they	cannot	get	elsewhere.

      This	exclusivity	is	created	in	many	ways:

           •	 Announcements	made	in	the	community	prior	to	them	being	made	“publicly”
           •	 Product/service	pricing	specials	available	only	to	community	members
           •	 Reports,	articles	and	other	information	that	is	available	only	in	the	community
           •	 Priority	access	to	key	company	employees
           •	 Participation	in	member-only	beta	programs
           •	 Ability	to	provide	product	feedback
           •	 Engagement	in	ideation	for	new	products	and	product	improvement

      These	are	things	that	make	it	worth	joining	a	community	and	remaining	an	active	
      member.	 When	 people	 can	 get	 things	 in	 the	 community	 they	 are	 not	 able	 to	 get	
      elsewhere,	their	level	of	commitment	and	engagement	in	the	community	increases.




                                                                        Building World Class Communities   18
11-07-01
How to Become a World Class Community
     Not	every	community	will	become	world	class.	It	is	important	to	recognize	that	attaining	
     world	class	stature	requires	many	reviews	of	community	and	community	strategy,	a	
     clear	focus	on	engagement,	and	full	support	of	the	organization.	

     Back to basics
     While	 this	 document	 outlines	 a	 set	 of	 characteristics	 important	 to	 world	 class	
     communities,	it	is	often	in	the	basics	where	we	see	communities	fail.	

     First,	 ensure	 that	 there	 are	 easy	 ways	 to	 engage	 that	 make	 sense	 for	 what	 you	
     are	 trying	 to	 accomplish	 in	 a	 community.	 For	 example,	 if	 you	 are	 looking	 to	 start	
     discussions	 or	 allow	 people	 to	 ask	 and	 answer	 questions,	 make	 sure	 forums	 are	
     prominent	on	your	site.

     Second,	 if	 you	 have	 a	 clear	 set	 of	 experts,	 either	 within	 your	 company	 or	 your	
     community,	 enable	 blogging,	 where	 longer	 pieces	 can	 be	 crafted	 and	 responses	
     provided	by	others.	                                                                                    Failure most often occurs
                                                                                                             in executing the basics.
     Third,	media	galleries	are	a	must	if	you	want	members	to	share	photos	and	videos.	

     Fourth,	easy	ways	of	engagement,	such	as	commenting,	rating,	and	liking	are	great	
     ways	to	draw	in	members.

     Finally,	great	profiles	and	a	way	for	members	to	engage	with	each	other	are	a	must.	
     These	are	the	enablers	in	a	relationship	—	a	key	factor	in	establishing	a	sense	of	
     community.

     Think big, start small
     When	 launching	 —	 or	 revamping	 —	 a	 community,	 it	 is	 helpful	 to	 have	 an	 idea	 of	
     where	you	might	ultimately	like	to	take	the	community.	Therefore,	spend	some	time	
     thinking	about	what	you	would	really	like	to	get	out	of	your	investment	of	money	and	
     time.	Establish	a	vision	for	how	it	could	impact	the	way	your	company	does	business	
     and	interacts	with	customers,	partners,	and	employees.	Some	helpful	questions	to	
     consider	are:

            •	 Who	are	your	members?
            •	 How	do	they	like	to	engage?
            •	 What	pains	or	problems	can	potentially	be	addressed	in	the	community?

     Once	you	have	your	initial	plan	in	place,	choose	a	much	smaller	starting	place.	This	
     could	mean	fewer	elements,	fewer	target	audiences,	or	a	combination	of	both.	You	
     could	 start	 with	 a	 question-and-answer	 forum	 about	 your	 products	 and	 add	 blogs	
     later.	You	could	pick	a	small	group	of	customers	to	work	with	and	expand	based	upon	
     their	feedback	and	experience.	You	could	launch	a	pilot	for	one	of	your	products	with	
     a	sampling	of	customers.



                                                                          Building World Class Communities   19
11-07-01
Where	you	start	should	be	primarily	determined	by	your	company’s	experience	level,	
      culture,	structure,	and	capacity.	There	is	no	right	answer	for	everybody.

      Performance-based metrics
      Communities	 that	 arrive	 at	 world	 class	 status	 will	 share	 many	 of	 the	 same	
      characteristics,	including	having	clear	measurements	for	how	they	define	success.	

      Since	this	will	evolve	over	time	with	the	life	of	your	community	and	clearer	business	
      objectives,	the	list	of	metrics	does	not	need	to	be	long	or	complicated.	                              “What gets measured
      There	are	three	basic	forms	of	measurement	to	consider:                                                gets managed.”

                                                                                                             Peter	Drucker
           •	 Basic	 traffic-related	 measurements	 such	 as	 page	 views,	 visits,	 and	 time	 on	
              site.	These	provide	a	sense	of	whether	enough	people	are	coming	to	the	site.	
              No	matter	how	well	designed,	a	community	still	requires	visits	to	exist.

           •	 Engagement	 measures	 such	 as	 number	 of	 connections/friends,	 comments,	
              replies,	 and	 posts.	 These	 let	 you	 know	 that	 people	 are	 moving	 from	 just	
              consuming	 information	 —	 which	 can	 be	 done	 on	 a	 traditional	 website	 —	 to	
              engaging	with	each	other.

           •	 Qualitative	 feedback	 from	 polls,	 surveys,	 and	 sentiment	 analysis.	 If	 you	 are	
              engaged	regularly	in	your	community,	you	will	have	likely	established	a	culture	
              where	your	members	are	more	than	happy	to	tell	you	exactly	what	they	think	
              and	to	provide	suggestions	for	improvement.

      Be visible and engaged
      One	 of	 the	 biggest	 mistakes	 of	 managing	 communities	 is	 called	 “launched	 and	
      done.”	

      Businesses	will	plan,	select	a	strategy,	and	then	successfully	launch	a	community	
      only	 to	 leave	 it	 under-resourced.	 There	 must	 be	 a	 well-known,	 readily	 identifiable	
      community	manager.

      The	primary	areas	of	focus	for	your	community	manager	should	be	demonstrating	
      the	 desired	 behaviors	 you	 would	 like	 to	 see	 your	 community	 members	 emulate;	
      putting	a	face	and	personality	on	the	community	instead	of	merely	a	company	brand;	
      evangelizing	the	community	needs	to	the	company	and	the	company	brand	to	the	
      community;	and	enforcing	the	rules	of	the	community	to	prevent	unwanted	conduct.




                                                                          Building World Class Communities   20
11-07-01
Constantly evolve
     World	 class	 communities	 constantly	 adapt	 the	 community	 to	 the	 needs	 of	 the	
     members.	They	provide	timely	and	relevant	information,	address	new	and	different	
     ideas,	adjust	to	the	evolving	mix	of	members,	and	make	room	for	the	influence	of	
     leaders.	

     Communities	have	their	own	life	cycle.	The	management	of	the	community	must	match	
     the	prevalent	need	in	each	phase.	Newer	communities	require	guidance,	to	establish	
     a	culture	and	to	help	the	members	to	get	to	know	each	other.	Established	communities	
     need	to	support	the	contributions	of	emerging	leaders.	Mature	communities	need	to	
     be	reinvigorated	and	fresh.




                                                                   Building World Class Communities   21
11-07-01
Conclusion
      While	there	are	numerous	impressive	and	effective	communities	today,	according	to	
      our	criteria,	no	single	community	has	yet	reached	the	status	of	“world	class”.		

      Many	 of	 the	 characteristics	 that	 define	 world	 class	 communities	 seem	 obvious.		
      However,	 companies	 deploying	 communities	 still	 put	 the	 majority	 of	 emphasis	 on	
      technology	and	do	not	make	the	necessary	long-term	investments	to	properly	grow	
      their	community.		The	opportunity	for	a	distinct	market	advantage	exists	for	companies	
      that	put	community	at	the	core	of	how	they	work	with	their	customers	and	employees.	    	
      It	cannot	be	a	“bolt-on”	solution.

      To	truly	become	world	class,	leaders	will	invest	not	only	in	the	technology	to	run	the	
      community,	but	the	people	and	resources	to	support	the	community.		The	community	
      must	be	an	integral	part	of	the	entire	experience	and	culture	of	the	organization.

      Businesses	that	are	on	the	path	to	world	class	status	have	a	common	characteristic:	
      constantly	 measuring	 and	 improving.	 Leaders	 have	 begun	 to	 directly	 link,	 in	 a	
      measureable	way,	community	activities	to	business	behaviors.	Whether	it’s	a	change	
      in	 consumer	 behavior	 –	 one	 company	 has	 reported	 a	 link	 in	 increased	 shopping	
      cart	size	to	community	participation	–	or	the	effectiveness	of	employees	managing	
      information,	the	measurements	need	to	be	readily	available.

      Today’s	 business	 is	 defined	 by	 driving	 down	 costs	 and	 maximizing	 employee	
      productivity.	Companies	that	integrate	social	technologies	into	the	DNA	of	how	their	
      businesses	operate	will	write	the	future.	Enabling	faster	and	better	decisions,	while	
      dealing	with	more	information	than	ever	before,	will	be	the	competitive	advantage	of	
      business	2.0.	




      Rob Howard is	 the	 founder	 and	 CTO	 of	 Telligent.	 He	 is	 the	 vision	 behind	 the	
      company’s	product	development	and	innovation	and	is	known	throughout	the	industry	
      as	an	authority	in	social	community	and	collaboration	software.

      Cecilia Edwards	is	the	senior	director	of	strategy	for	Telligent.	She	uses	her	vast	
      experience	in	corporate	strategy	to	help	Telligent	customers	drive	the	most	value	out	
      of	their	online	communities.

      About Telligent
      Telligent	 powers	 social	 communities	 for	 more	 than	 3,000	 companies	 worldwide.	
      World	class	brands,	including	Dell,	Microsoft,	Electronic	Arts	and	Reader’s	Digest,	
      trust	 Telligent’s	 enterprise-grade	 social	 community	 suite	 to	 connect	 and	 engage	
      with	 customers,	 prospects,	 partners	 and	 employees.	 For	 more	 information,	 visit		
      telligent.com.




                                                                      Building World Class Communities   22
11-07-01

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characteristics-of-community-excellence-

  • 1. World Class Communities The Characteristics of Community Excellence Rob Howard & Cecilia Edwards, Telligent 2011
  • 2. Table of Contents Building World Class Communities 1 Executive Summary 1 What is a community? 2 Social is the new normal 2 Social technology doesn’t equal community 5 The definition of community is regular interaction, a common objective, and relationships 6 Social media facilitates relationships; community has an objective 7 Online communities are part of the social ecosystem 7 Criteria for World Class Communities 10 Company-owned communities 10 Relationship-oriented 10 Active membership 10 Planned sustainability 10 Characteristics of World Class Communities 11 Identifiable business objectives 11 An emphasis on being personal 12 A culture of belonging 13 Major source of relevant content 14 Leverage the wisdom of the crowd 15 Influential members are highlighted 16 Reward with pixels 16 Establish and enforce guidelines 17 Membership has its privileges 18 How to Become a World Class Community 19 Back to basics 19 Think big, start small 19 Performance-based metrics 20 Be visible and engaged 20 Constantly evolve 21 Conclusion 22
  • 3. Building World Class Communities Executive Summary There is a revolution happening right now. It’s name is social networking. Not since the emergence of email has the business world experienced such a dramatic shift. To stay on top of the trend, organizations are investing aggressively in tools, people, and processes. This includes social software that will help these organizations share and manage information socially with customers, partners and employees. Gartner predicts, “The worldwide market for enterprise social software will top $769 million in 2011, up 15.7 percent from the $664 million spent in 2010.”1 Businesses are building and launching a myriad of online communities. These community investments span from launching proprietary corporate communities to investing in consumer social networking sites like Facebook and Twitter. All of this is in an effort to reach new audiences and sell more products and services. “Our end goal is to have However, littered along this changing landscape are numerous ghost towns — a world class commu- communities that have failed due to lack of participation, too much control, or lack of nity filled with passion- response to users’ changing needs. ate and engaged users. Users willing to discuss Why is it that some communities prosper while others wither and die? Is the creation not just the positives, of a great online community simply luck? Should businesses simply throw money at community technology, features and functionality, and then simply sit back and watch but the areas we need to it grow? Or is there a more precise and predictable process that any organization can improve and then help us be guided through? collaboratively make those improvements. Much research and analysis has been done to identify leading communities; these Once we have that type leading communities are widely agreed upon. However, little research has yet been of user base, our performed to identify what causes one community to succeed and another to fail — opportunities with the and more importantly, what makes a community “world class”. community expand immensely.” Telligent World Class Communities Survey Participant 1. Predicts 2011: CRM Enters a Three-Year Shake-Up, Gartner, November, 2010 Building World Class Communities 1 11-07-01
  • 4. World class communities are those which harness the knowledge and passion of their audiences to improve customers’ brand perception, and create measurable business results. The purpose of this white paper is to breakdown what makes a community world class and how those attributes can be duplicated. What is a community? An online community is a website or part of a website that is typically owned by a business or organization. It makes use of social software technologies — blogs, forums, user profiles — to enable interaction between people who have a shared interest in the objective. The community has a specific purpose or objective that the organization and the audience together desire to accomplish. Social is the new normal Social has become the new “normal” for day-to-day communication. More importantly, it is the new measure for how important decisions are made. Harvard Business Review called social, “the most significant business development of 2010” that is “enabling business leaders to regain trust and credibility lost over the last 10 years.”2 Social networks like Facebook have become part of our daily routine. Its more than 500 million users spend approximately 700 billion minutes on the site every month.3 Telligent conducted a World Class Communities survey and found that 63 percent of the participants had a corporate Facebook account and 78 percent had a corporate Twitter account. 2. How Social Networking Has Changed Business, Bill George, Harvard Business Review, December 23, 2010 3. Facebook worldwide usage statistics, December, 2010 Building World Class Communities 2 11-07-01
  • 5. Current deployments of social media or communities Response Percent Twitter Account 78.0% Facebook Account 63.4% YouTube Account 58.5% Business-to-business Community 43.9% Customer Support Community 43.9% Association Member-to-member Community 36.6% Interactive Marketing Community 24.4% Social networks are part of our daily routine. This commitment to social is further validated by research conducted with Forrester which analyzed spending patterns for social investments. “Social media spending is expected to grow at a compound annual growth rate of 34% over the next four years.“4 Organizations that ignore Forrester found that “86% of interactive marketers plan to increase their spending social technology as part on social media over the next four years…engaging and managing a community of of the new normal risk consumers is a top priority.”5 missing out on a major market opportunity and U.S. drug manufacturers, for example, realize the importance of social as a channel will have to spend sig- to their customers. They have been excluded from full engagement because of the requirement to communicate the fine print of the risks associated with particular drugs. nificantly to catch up to They have recently, however, been pressing the U.S.F.D.A. for legislation to enable the competition. them to advertise in social networks and thus more fully engage with their customers the way the other industries can.6 4. Midyear Planning, Forrester Research, July 29, 2010 5. Community Management Checklist, Forrester Research, June 29, 2010 6. As Drug Marketers Embrace Social Media, FDA Mulls New Rules, National Public Radio, August 12, 2010 Building World Class Communities 3 11-07-01
  • 6. Social forms of communication are also present inside of companies. Businesses recognize the value of creating communities within their organization. Andrew McAfee coined the term “enterprise 2.0” to describe how businesses use social technologies to more efficiently manage the collaboration that takes place day-to-day within the business. Why do businesses care about bringing social technologies into the enterprise? IDC estimates that upwards of 30 percent of employees’ time is focused on finding the data they need to accomplish a task, and that another 15-25 percent is spent on non-productive information-related activities instead of asking colleagues for help.7 Social technologies are aimed at significantly reducing this non-productive time. In Telligent’s World Class Communities survey, respondents who deployed enterprise 2.0 communities confirms this observation: Greatest Benefit of Enterprise 2.0 (Employee Communities) 2.4% 2.4% Solving business problems through collaboration Connecting employees to strengthen the company's culture 19.5% Engaging employees to drive innovation Understanding the needs and 56.1% 14.6% wants of employees Identifying experts within the organization 2.4% Communicating corporate messages quickly and effectively There are numerous business benefits to internal communities. 7. The High Cost of Not Finding Information, IDC, 2001 Building World Class Communities 4 11-07-01
  • 7. Social technology doesn’t equal community Businesses have not hesitated in responding to the new social wave as evidenced by the current and predicted budgets allocated to social spending. Technology plays a very important role in facilitating a community, but solely as an enabler. A clear set of technology norms are emerging for everyone due to the widespread adoption of social networks – predominately Facebook. For example, they expect modern and robust forums for support, blogs for learning about new insights directly from the business, and comments, ratings, and reviews. In Telligent’s World Class Communities survey, 45 percent of the participants indicated that technology was very important in terms of capabilities and ranked it third after ease of use and search tools. Importance of Community Capabilities 163 Search tools “Engagement is what 123 Ease of use makes a community Richness of community great, but the tools/ 121 technologies (wikis, blogs, forums, etc.) platform need to at least 80 Rich user profiles not be a hindrance, but at best, facilitate, and Branding/look-and-feel expand users’ participa- 74 of the community tion.” 50 75 100 125 150 175 Relevance Points Telligent World Class Communities The most important community capability is usability. Survey Participant Building World Class Communities 5 11-07-01
  • 8. The definition of community is regular interaction, a common objective, and relationships Online communities form when the technology facilitates regular interaction around a common cause. For example, today people expect and desire to troubleshoot problems themselves rather than contact a help center via the phone. Most consumers regularly — often daily — use Google or other search engines to seek out information for particular problems they encounter. “Where is a good place to eat near here?” “What kind of hybrid car should I buy?” “What do people similar to me recommend that I read?” It is the dialog that occurs within the pages found by Google that matters most to our While search technology decision making process. People trust search engines to narrow the information they is great, the simple ques- need to look at, but decisions are made based on what peers say. tion of, “What is the best Consumers want to interact with peers and friends to learn what recommendations laptop?” yields nearly they have. Research from the Nielsen Global Online Consumer Survey shows that 500,000 results in Google. 90 percent of consumers trust peer recommendations.8 Modern consumer search engines recognize this. Google includes information about discussions within search results to help you quickly see how many people have responded on a given topic. In an interesting side note, Facebook has taken an increasing portion of this search market space from Google in the last few years. Your customers are talk- Interactions can be both positive and negative ing about you. Ignore In 1983, TARP Worldwide, a customer experience agency, famously published a them at your own peril. study which stated that one disgruntled client speaks with an average of 10 clients.9 Today in the United States, there are upwards of 3.5 billion brand-related conversations happening every day, and social media enables people to move these conversations online. According to more recent research by TARP Worldwide, one unhappy client who escalates their issue to management represents 50 clients, on average, who either complain locally or don’t complain at all. And taken further, one escalated complaint is spread to over 1,300 people via word-of-mouth.10 1 unhappy customer ex- perience = 50 customers and 1,300 conversations 8. Nielsen Global Online Consumer Survey, 2009 9. The Bottom Line Benefits of Consumer Education, Atlanta, GA: Coca Cola. Inc., TARP, 1983 10. TARP Worldwide Research, 2008 Building World Class Communities 6 11-07-01
  • 9. Social Network Online Community Primary Purpose Business Relationships Objectives Primary Enabler The purposes of social networks and online communities are different. Social media facilitates relationships; community has an objective As stated earlier, social networks and communities are very different. In the illustration above the primary purposes and enablers of both social networks and communities are shown. A social network’s primary purpose is creating and fostering relationships, and the primary enabler is common activities. For example, Facebook enables people to connect with one another, but the relationships that are created typically have commonality between activities: school, work, sports, etc. Contrast this with a community, whose primary purpose is a business objective (e.g., product support.) The enabler for a community is the relationships that form to meet business goals. For example, a community like Psion Teklogix’s provides support to customers, but the enabler is the relationships that form between customers, prospects, partners, and experts as they ask and answer questions. Online communities are part of the social ecosystem Does this mean that a business should not have a social network, but instead only have a community? No. World class communities recognize that social media is a new channel for engaging customers; and that social networks complement communities via sourcing members, providing a holistic view of social interaction in one central place. The primary purpose of a social network is social — to facilitate relationships between people who share common interests — while a community exists to solve a specific business problem through relationships. Building World Class Communities 7 11-07-01
  • 10. Businesses must understand that their audiences need a social ecosystem that is Social fans are an asset comprised of both consumer-facing social networks as well as company-owned that you can build with a communities. campaign and then tap Social media is providing marketers greater reach for less money. According to a into again in the future 2010 survey sponsored by the AMA, within one year, social media is expected to be as long as they remain 10 percent of all marketing budgets and 18 percent in five years.11 engaged with your brand. The Social Ecosystem Forums Participating Wikis Blogs Listening, establishing reputation Managed Listening, supporting, building reputation, marketing External Communities Owned Closed Network Listening, supporting, building relationships, collaborating Example: customer communities Internal Communities Example: channels, members Example: Intranets, communities of practice World Class Communities Understand what your strategy is at each layer of the Social Ecosystem. Your online community is only one aspect. 11. The CMO Survey Highlights and Insights, Christine Moorman and T. Austin Finch, CMOSurvey.org, August 2010 Building World Class Communities 8 11-07-01
  • 11. Telligent’s early research, documented in Mashable, identifies three types of communities in the social universe that work together for businesses as an ecosystem.12 Participating These are communities started and managed by individuals or groups of users, typically on consumer-facing social networking sites, but sometimes also with proprietary software. Participating communities include Facebook, Twitter and LinkedIn. An example here would be a fan site for Microsoft’s Xbox or an independent Porsche enthusiast group. Typically, the organization whose products or services are the topic of discussion can participate, but has no authority over or access to the data created within the community. Managed These are communities started and managed by the organization, but run on consumer-facing social networking sites like Twitter, Facebook or LinkedIn. Examples here include the National Breast Cancer Foundation’s Facebook page, Starbucks’ Flickr group pool, or Dell’s presence on Twitter. The organization is responsible for running and managing the community, but does not necessarily benefit from the rich data and user profiles created within the community. Typically, the facilitator of the community (Twitter, Facebook, etc.) benefits the most from the underlying data. Company-Owned These are communities owned and managed by a company typically running commercial or open source community and enterprise collaboration software. Examples include the National Breast Cancer Foundation’s community website, Starbucks’ blog, or Dell’s support community. The organization is responsible for running and managing the community and benefits from rich data and user profiles created within that community. These include private B2B and internal employee- targeted communities. 12. How Businesses can Harness the Power of Online Communities, Rob Howard, Mashable, April 2010 Building World Class Communities 9 11-07-01
  • 12. Criteria for World Class Communities In the evaluation of world class communities, Telligent considered only those communities that met the following criteria: “...many communities that I find valuable (even Company-owned communities the communities that There are many great communities that have been started and grown to world class appear on discussions/ status through grass root efforts, such as Wikipedia. Some open-source software communities, such as Linux, are great examples of well-disciplined, engaged, comments in blogs), but cohesive communities. In fact, many of these communities are the pioneers in this none are outstanding. space since widespread enterprise communities are less than a decade old. While None make me stop and there is much to learn from these communities, their challenges and objectives are say, this is the way to do different from those of businesses, so we chose to focus only on company-owned communities — external and internal. things.” Telligent World Class Communities Relationship-oriented Survey Participant As described earlier, community is not synonymous with engagement. While community cannot take place without engagement, engagement can certainly take place without community. Many support forums fall into this category. Engagement is taking place in the form of asking questions and getting answers. There is even a bit of reputation that can be developed by the most frequent answerers. But that tends to be where the engagement ends (i.e. once a problem is solved, the engagement is over). Thus, no relationship is formed. World class communities must go beyond limited engagement to create a sense of belonging and relationship. “...world class goals Active membership are still further out than While great design is important, people and engagement are imperative to all most have accomplished communities. There are many aspiring communities full of cool features, impressive bells and whistles, and award worthy design, but lacking an audience. So while ease to date.” of use and user interface can certainly enable communities, they were not a major Telligent World Class Communities focus for this report. Visitors, members, and engagement are what matter most. Survey Participant Planned sustainability Many communities are formed around specific campaigns — e.g. political campaigns or product launches — and are very successful. For Telligent, the real test of whether these communities are world class is their staying power. Is there a way to keep the visitors coming and keep the members engaged when the original campaigns end? While tactics used for communities around campaigns are interesting and worthy of being leveraged in world class communities, we looked more broadly at what it takes to remain sustainable. Building World Class Communities 10 11-07-01
  • 13. Characteristics of World Class Communities In the survey conducted for this research, Dell, Starbucks, Intuit, and Apple were identified by a few respondents as leaders to be emulated. Most respondents, however, could not provide an example of a world class community. Telligent believes that while true leaders exist, it may be too early to declare that anyone has reached world class status on all fronts. Though no current communities have achieved a world class standard, Telligent has identified nine characteristics that if met would merit “world class” status. 1. Identifiable business objectives World class communities have balanced objectives: the company is meeting their business goals and the members are using the community to address their needs (support, product information, word-of-mouth recommendations, employee networking, etc.). As stated earlier, one of the distinguishing characteristics of a community versus a social network is that the community has a business objective enabled through the member-to-member relationships. Examples of business objectives include: World class communi- Support - This is the most common use case for external-facing communities. The ties can execute multiple community is used to enable crowdsourced support for a company’s product or strategies simultane- service. Example communities: Dell, Microsoft XBox, American Express ously, but must start with a clear focus. Interactive marketing - Branded communities are not new. What is new is the use of communities to capture the new consumer behavior: socializing the buying process using the voice of the customers to help sell and recommend products. Example communities: Electronic Arts, Starbucks, Cadbury Networking - Networking communities are most often used for B2B or employee- driven communities. The objective within a networking community is to tap into the unstructured people-driven knowledge streams that were previously inaccessible. Example communities: US Department of Defense (APAN), Psion Teklogix, Procter & Gamble Employee collaboration - Research conducted by IDC identified that for an enterprise to “gain the greatest leverage from its ‘information assets,’ knowledge workers must be able to share and reuse information regardless of format or location.”13 Employee collaboration through social technologies is based on the new normal behavior pattern of how consumers locate, use, and manage information. Example communities: Procter & Gamble, Texas Instruments, Intel 13. The High Cost of Not Finding Information, IDC, 2001 Building World Class Communities 11 11-07-01
  • 14. Examples of member needs include: Find answers to questions - The most common landing page for users of the community is the page they were directed to by a search system — either internal or external. The majority of people within the community will always be consumers: those looking for solutions to problems or answers to questions. Make decisions based on the experience of peers - Amazon is the showcase for enabling people within the community to learn and make buying decisions based on the shared experience of peers. Other examples include popular weight-loss sites that enable community members to discuss their results with one another. Find people that have knowledge needed to complete a task - This is a common use case internally. Employees want to leverage the power of the community to understand who within the organization has the information needed to complete a given task. Many organizations realize that the new competitive advantage is how quickly employees can use information to make decisions. Procter & Gamble (P&G) is a multinational company with 138,000 employees in 160- plus countries that faces “...countless opportunities — and as many hurdles — for P&G to connect ideas and expertise.”14 According to Michael Fulton, P&G’s enterprise architecture capability manager, “Until now, wikis, blogs, podcasts — they felt like the place for the techno-elite. This [social] platform makes it easy for everyone to participate.” Using a new internal community named PeopleConnect, a 150-person, geographically disbursed work group came together in two months rather than in six to 12. “This platform drove speed, transparency and a desire to engage with the change previously unseen at P&G,” Fulton said. 2. An emphasis on being personal World class communities are personal and emphasize connecting members with real Businesses must realize people within the business. that social is a revolution in both how World class communities foster real dialog and are authentic. It is critically important customers are serviced that the business does not attempt to falsify activity to inflate what appears to be active participation (i.e., impersonating members and asking questions or impersonating and how they experience customers and answering questions). Authenticity is critical. the brand. In 2009, a global computer hardware manufacturer was caught paying for positive reviews of its products on Amazon. Not only were good reviews being paid for, these same reviewers — many of whom never used the products — were also asked to classify negative reviews as “not helpful”. 14. How Procter & Gamble Got Employees to Use Social Networking at Work, Rick Swanborg, CIO, August 24, 2009 Building World Class Communities 12 11-07-01
  • 15. Part of being personal and real is encouraging community participants to fully complete their profiles with photos and additional profile details that enable the community to learn about them. This is especially important for the community manager. Members want to get to know (and befriend) the community manager. Within world class communities, members will see the community manager as the face of the brand. Communities thrive on personal connections. Lionel Menchaca, Dell’s Chief Blogger Rather than presenting filtered information through a PR agency, businesses such as Dell enable passionate individuals who are intimately familiar with the company’s products and services to directly represent the brand. When you encourage and foster participation from the company, you strengthen the brand with the customers. In fact, over time you’ll see customers become brand champions. 3. A culture of belonging World class communities foster a culture of collaboration and engagement. New members are welcomed into the community with clear and concise directions for how to participate, how to set up their profile, where to ask questions, and how to find information. Relationships are a key ingredient to success. Communities should enable automatic friending, where new members are automatically connected with a designated person within the community, such as the community manager. This way, new members immediately have a starting point for forming relationships. Building World Class Communities 13 11-07-01
  • 16. Forming relationships early is critical, unlike social networks where the primary objective is the relationship. Within a community the relationship is the enabler. Communities that promote relationships and networking within the community see a much higher return rate. Altimeter stated that, “while no one yet has the data to determine direct cause and effect, what we do find is a financial correlation between those who are deeply engaged and those who outperform their peers.”15 4. Major source of relevant content World class communities focus on creating relevant and timely content that cannot be found elsewhere. Telligent’s research into world class communities validated that people who use communities place a high amount of value on the content: finding answers to questions quickly and identifying relevant information were ranked as extremely important. Typical Community Uses Nice To Extremely Rating Not Needed Have Important Important Average Finding answers quickly 0.0% (0) 0.0% (0) 24.4% (10) 75.6% (31) 3.76 Identifying relavent information 0.0% (0) 4.9% (2) 39.0% (16) 56.1% (23) 3.51 Identifying experts and/or influential people 2.5% (1) 7.5% (3) 35.0% (14) 55.0% (22) 3.43 Forming relationships with other 0.0% (0) 12.5% (5) 55.0% (22) 32.5% (13) 3.20 community members Contributing content like FAQs, recommendations, reviews, 2.4% (1) 14.6% (6) 58.5% (24) 24.4% (10) 3.05 and opinions Influencing other 4.9% (2) 22.0% (9) 48.8% (20) 24.4% (10) 2.93 community members Receiving recognition for participation 2.5% (1) 27.5% (11) 47.5% (19) 22.5% (9) 2.90 Sharing content across social media channels (e.g. Facebook, 7.3% (3) 41.5% (17) 31.7% (13) 19.5% (8) 2.63 LinkedIn, Twitter) Content searching is a community driver. 15. The world’s most valuable brands. Who’s most engaged, Altimeter, July 2009 Building World Class Communities 14 11-07-01
  • 17. When creating the first developer community for Microsoft’s ASP.NET product in 2001, the number one emphasis was creating unique content that could not be found elsewhere. Conference materials, special articles, sample code, and even blogs written by the ASP.NET team members provided a plethora of unique content to draw developers into the community. It was only later that forums were added to enable those members to interact with each other. The majority of people who visit a community have a specific need or problem they wish to solve. The unique content found in a community is the starting point for building longer-term engagement between a member and the company. “If you want to make a 5. Leverage the wisdom of the crowd correct decision or solve a problem, large World class communities harness the essence of the wisdom of crowds. The term groups of people are “crowdsourcing” was coined by Jeff Howe in 2006 to describe this.16 smarter than a few Experts don’t know everything, and a company cannot know everything about their experts.” own products and services. The people who join communities have a valuable set James Surowiecki, author, Wisdom of opinions, experiences, ideas, and insight that other members and companies can of Crowds benefit from. When someone asks a question about a product, world class communities will often wait to allow someone from the community a chance to answer before they jump in as a way to encourage “crowd” participation. They even pose product questions themselves that the community would be better equipped to answer than their experts. Ideation is social technology that enables participants to suggest and vote on ideas. It is increasingly more visible in world class communities to enable the product development process. In addition to polls and surveys, communities like My Starbucks Idea are asking for input on ideas, allowing the community to express their collective opinions, and then sharing the results. What takes this practice to a world class level is that Starbucks holds itself accountable to the community and reports on what was done with each idea presented — whether it was adopted or not. Very little guessing needs to be done when a company is able to get the direct input from the community first-hand on how the products are used, issues that arise, resolutions to those issues, and preference for new products. This is the value of crowdsourcing. 16. Crowdsourcing: The Next Big Thing In Social Networking, Robert Bravery, Business Computing World, November 24, 2010 Building World Class Communities 15 11-07-01
  • 18. 6. Influential members are highlighted World class communities know who the influencers for their products are. And once influencers have been identified, businesses reinforce who the influencers are by publicly identifying them within the community. An influencer in the context of online communities is a person within a community that can influence behavior of other members of the community. People read what they write, comment on their contributions, follow their lead on behavior, and generally take their recommendations. This influence can be for purchasing decisions, but it can also be information decisions. And, an important distinction that is often overlooked: influencers can be both positive and negative. Positive influence can motivate a consumer to make a buying decision or use a specific document for decision making. However, negative influence has the opposite effect of influencing a decision not to purchase. Within communities, positive influence and negative influence can be measured. The Why is identifying positive influencers can then be highlighted by the organization. influencers important? People are three times Word-of-mouth is the primary factor behind 20 to 50 percent of all purchase more likely to trust peers decisions.18 When making decisions, people want to know who the experts are and whose opinions they should listen to. over advertising.17 World class communities encourage the formation of influencers, highlight their contributions within the community, and work with them to affect the culture. 7. Reward with “pixels” World class communities showcase members of the community and reward them for participation, even those who are not considered influential. This doesn’t necessarily need to be monetary acknowledgment either. Instead, world class communities adopt the “pixels vs. pennies” approach, using badges and other digital tools to call out different participant levels. 17. Social Networking Sites: Defining Advertising Opportunities in a Competitive Landscape, Jupiter Research, March 2007 18. A new way to measure word-of-mouth marketing, McKinsey Quarterly, April 2010 Building World Class Communities 16 11-07-01
  • 19. One company that has demonstrated this in a world class fashion is GameStop. GameInformer.com is the digital publication of GameInformer, a monthly magazine published by GameStop. GameInformer.com is full of tips, reviews, and most importantly, perspective from the avid gamers who participate there daily. GameInformer.com recently won a Webby award for its community. What makes GameInformer.com unique is its extensive use of reputation within the community to enable gamers to unlock new capabilities as their reputation and trust level increases. In other words, GameInformer.com showcases and acknowledges members by recognizing their contributions and continuously promoting their contributions. 8. Establish and enforce guidelines World class communities publish a set of community participation guidelines (e.g., what is considered acceptable behavior) and enforce them. The guidelines exist to ensure that bullies and trolls — people who simply like to argue for the sake of arguing — are properly moderated within the community. Helpful guidelines for participation should not be overly complicated but address the following: • Represent yourself accurately - no impersonation of other people. • Respect the rights of others, including copyrights, personal information, etc. • No harassment or harmful behavior. • Only include content that is relevant to the community. World class communities also make it clear what will happen if the rules are violated. These guidelines are not used, however, to remove negative feedback or criticism of the company. World class community owners recognize that most people only criticize when they feel compelled to make their experience better. Therefore, they encourage authentic feedback and engage with community members on ways to improve. Highly successful communities will eventually become self-policing. Members, rather than the community manager, will identify content that requires moderation and take appropriate actions. However, it is highly suggested that the software running the community also supports some manner of auditing to ensure there is accountability for all actions. Building World Class Communities 17 11-07-01
  • 20. 9. Membership has its privileges For communities to have long-term sustainability, members must feel a sense of belonging and even exclusivity. Members of a community want to feel as though they have the inside scoop on what is happening at the company and that their membership provides them access to things they cannot get elsewhere. This exclusivity is created in many ways: • Announcements made in the community prior to them being made “publicly” • Product/service pricing specials available only to community members • Reports, articles and other information that is available only in the community • Priority access to key company employees • Participation in member-only beta programs • Ability to provide product feedback • Engagement in ideation for new products and product improvement These are things that make it worth joining a community and remaining an active member. When people can get things in the community they are not able to get elsewhere, their level of commitment and engagement in the community increases. Building World Class Communities 18 11-07-01
  • 21. How to Become a World Class Community Not every community will become world class. It is important to recognize that attaining world class stature requires many reviews of community and community strategy, a clear focus on engagement, and full support of the organization. Back to basics While this document outlines a set of characteristics important to world class communities, it is often in the basics where we see communities fail. First, ensure that there are easy ways to engage that make sense for what you are trying to accomplish in a community. For example, if you are looking to start discussions or allow people to ask and answer questions, make sure forums are prominent on your site. Second, if you have a clear set of experts, either within your company or your community, enable blogging, where longer pieces can be crafted and responses provided by others. Failure most often occurs in executing the basics. Third, media galleries are a must if you want members to share photos and videos. Fourth, easy ways of engagement, such as commenting, rating, and liking are great ways to draw in members. Finally, great profiles and a way for members to engage with each other are a must. These are the enablers in a relationship — a key factor in establishing a sense of community. Think big, start small When launching — or revamping — a community, it is helpful to have an idea of where you might ultimately like to take the community. Therefore, spend some time thinking about what you would really like to get out of your investment of money and time. Establish a vision for how it could impact the way your company does business and interacts with customers, partners, and employees. Some helpful questions to consider are: • Who are your members? • How do they like to engage? • What pains or problems can potentially be addressed in the community? Once you have your initial plan in place, choose a much smaller starting place. This could mean fewer elements, fewer target audiences, or a combination of both. You could start with a question-and-answer forum about your products and add blogs later. You could pick a small group of customers to work with and expand based upon their feedback and experience. You could launch a pilot for one of your products with a sampling of customers. Building World Class Communities 19 11-07-01
  • 22. Where you start should be primarily determined by your company’s experience level, culture, structure, and capacity. There is no right answer for everybody. Performance-based metrics Communities that arrive at world class status will share many of the same characteristics, including having clear measurements for how they define success. Since this will evolve over time with the life of your community and clearer business objectives, the list of metrics does not need to be long or complicated. “What gets measured There are three basic forms of measurement to consider: gets managed.” Peter Drucker • Basic traffic-related measurements such as page views, visits, and time on site. These provide a sense of whether enough people are coming to the site. No matter how well designed, a community still requires visits to exist. • Engagement measures such as number of connections/friends, comments, replies, and posts. These let you know that people are moving from just consuming information — which can be done on a traditional website — to engaging with each other. • Qualitative feedback from polls, surveys, and sentiment analysis. If you are engaged regularly in your community, you will have likely established a culture where your members are more than happy to tell you exactly what they think and to provide suggestions for improvement. Be visible and engaged One of the biggest mistakes of managing communities is called “launched and done.” Businesses will plan, select a strategy, and then successfully launch a community only to leave it under-resourced. There must be a well-known, readily identifiable community manager. The primary areas of focus for your community manager should be demonstrating the desired behaviors you would like to see your community members emulate; putting a face and personality on the community instead of merely a company brand; evangelizing the community needs to the company and the company brand to the community; and enforcing the rules of the community to prevent unwanted conduct. Building World Class Communities 20 11-07-01
  • 23. Constantly evolve World class communities constantly adapt the community to the needs of the members. They provide timely and relevant information, address new and different ideas, adjust to the evolving mix of members, and make room for the influence of leaders. Communities have their own life cycle. The management of the community must match the prevalent need in each phase. Newer communities require guidance, to establish a culture and to help the members to get to know each other. Established communities need to support the contributions of emerging leaders. Mature communities need to be reinvigorated and fresh. Building World Class Communities 21 11-07-01
  • 24. Conclusion While there are numerous impressive and effective communities today, according to our criteria, no single community has yet reached the status of “world class”. Many of the characteristics that define world class communities seem obvious. However, companies deploying communities still put the majority of emphasis on technology and do not make the necessary long-term investments to properly grow their community. The opportunity for a distinct market advantage exists for companies that put community at the core of how they work with their customers and employees. It cannot be a “bolt-on” solution. To truly become world class, leaders will invest not only in the technology to run the community, but the people and resources to support the community. The community must be an integral part of the entire experience and culture of the organization. Businesses that are on the path to world class status have a common characteristic: constantly measuring and improving. Leaders have begun to directly link, in a measureable way, community activities to business behaviors. Whether it’s a change in consumer behavior – one company has reported a link in increased shopping cart size to community participation – or the effectiveness of employees managing information, the measurements need to be readily available. Today’s business is defined by driving down costs and maximizing employee productivity. Companies that integrate social technologies into the DNA of how their businesses operate will write the future. Enabling faster and better decisions, while dealing with more information than ever before, will be the competitive advantage of business 2.0. Rob Howard is the founder and CTO of Telligent. He is the vision behind the company’s product development and innovation and is known throughout the industry as an authority in social community and collaboration software. Cecilia Edwards is the senior director of strategy for Telligent. She uses her vast experience in corporate strategy to help Telligent customers drive the most value out of their online communities. About Telligent Telligent powers social communities for more than 3,000 companies worldwide. World class brands, including Dell, Microsoft, Electronic Arts and Reader’s Digest, trust Telligent’s enterprise-grade social community suite to connect and engage with customers, prospects, partners and employees. For more information, visit telligent.com. Building World Class Communities 22 11-07-01