Social Media Evolution - Revolution - So What?

Social Media:Revolution, evolution... ...and so what?

Tommi Pelkonen

Strategist @ Frantic

April 29, 2010

perjantaina 8. lokakuuta 2010

Frantic - leading Finnish digital agency

Tommi Pelkonen - Digital Strategist @ Frantic

• Born 1971, married, daughter

• M.Sc. (Econ.): 1999, Helsinki School of Economics, HSE, International Business, Finance & Accounting, Information Technology

• 2008-2010: Business Consultant at Finpro Budapest in ICT/software business

• 2005-2008: Strategist at Satama Amsterdam

• 1999-2005: Business Consultant at Satama Helsinki

• 1996-1999: Research at the HSE Electronic Commerce Institute, focus: digital media service companies

• Lecturer and author of several publications & articles in the fields digital media, internationalisation of SMEs and service business

Today we’ll be talking about…

• RATIONALE: What is social media? Why social media matters?

• US AND OUR BEHAVIOUR: What kind of consumer trends is deriving from social media?

• BUSINESS: How should companies react? What are the threats and possibilities of social media for companies?

• LEARNINGS: How to succeed in social media?

Photo by transCam: http://www.flickr.com/photos/transkamp/54371294/

WHAT IS SOCIAL MEDIA?1 2 3 4

According to Wikipedia (2009)…What is social media? 1 2 3 4

According to Wikipedia (2009)…

• ” Social media supports the human need for social interaction with technology, transforming broadcast media monologues (one to many) into social media dialogues (many to many)...”

What is social media? 1 2 3 4

• … ” It supports the democratization of knowledge and information, transforming people from content consumers into content producers.”

Note, that companies shouldn’t see social media as just dialogues

between customers, but as dialogues between the brand and persons.

Social media is global conversation that takes place online

In practice we’re talking about…

• Social networking sites (Facebook, LinkedIn, Ning, Bebo…)

• Blogs (WordPress, Blogger, TypePad, LiveJournal, Vuodatus…)

• Microblogging (Twitter, Tumblr, Brightkite, Qaiku, Facebook statuses…)

• Social bookmarking (Delicious, Digg…)

• Media sharing & streaming (Flickr, YouTube, Vimeo, Qik, Livestream…)

• Wikis, Review sites, Virtual worlds, online gaming, Podcasts, Event sites etc. etc.

• Co-creation and crowdsourcing•

+ a endless amount of mashups & other stu!

Instead of old model…… where the brand is broadcasting to the consumers…

CONSUMERCONSUMER

CONSUMER

CONSUMERCONSUMERCONSUMER

SHOUT / BROADCAST

… the social media is like this…

1. Shift from one dimensional passive consumers into multidimensional active persons.

PERSON

USER PRODUCER CUSTOMER CONSUMERMEMBER

of community

… and like this.

1. Shift from one dimensional passive consumers into multidimensional active persons.

2. Shift from broadcast media monologues into social media dialogues

PERSON

PERSON PERSON

PERSON

LISTEN & DISCUSS

Social media has five main layers and eras in it - there is history, too!

Major hype emerged around social media from 2007 onwards

Hype around ”Anything 2.0” is calming down and we are about to see real business usage of it soon

Source: Gartner, 2009

Some real numbers and forecasts about social media and busines impact of it

Photo by by birgerking: http://www.flickr.com/photos/birgerking/3145391821/

WHY SOCIAL MEDIA MATTERS?21 3 4

Why social media matters? 21 3 4

13 hours of video material updated to YouTube every minute

Photo by by Auntie P: http://www.flickr.com/photos/auntiep/3708440426/

13 000 000 articles available on Wikipedia

Photo by quartermane: http://www.flickr.com/photos/mikeeperez/2453225588/

3 600 000 000 photos archived on Flickr (June 2009)

Photo by m!les: http://www.flickr.com/photos/awayken/90943453/

20 000 000 tweets per day on Twitter (Sep 2009)

Photo by carrotcreative: http://www.flickr.com/photos/carrotcreative/2511539541/

120 000 000 users each day visiting Facebook (Summer 2009)

Photo by Amit Gupta: http://www.flickr.com/photos/superamit/1174257667/

1 000 000 000 pieces of content shared each week on Facebook

Photo by smileham: http://www.flickr.com/photos/smileham/3387867021/

9 hours of media consumption / day22% used to social media (2009)

65 000 000 users accessing Facebook through their mobile devices

BUT ALL THE NUMBERS ARE IRRELEVANT.

FORGET THEM.

INSTEAD, WE SHOULD THINK OF

THE MEANING OF THIS ALL

Networked way becomes natural way

• As social media becomes customary way of communicating and participating, it will inevitably reshape the way we see the world.

PERSON PERSON

PERSON

From fragmented audiences to fragmented communities

PERSON

of community

From fragmented audiences to fragmented communities• People will consider themselves as

part of communities, rather than part of audiences.

PERSON

of community

• People don’t want to be treated like audiences anymore • Passive media consumption will exist

(it may be popular even), but people want to make the choice of their activity level themselves

PERSON

of community

• People don’t want to be treated like audiences anymore • Passive media consumption will exist

(it may be popular even), but people want to make the choice of their activity level themselves

• What are communities organized around?I. Shared values

II. Shared interests

III. Shared beliefs

PERSON

of community

The experience triangle

In the past

Fitting the user needs (utility)

Easy to use (usability)

Pleasurable experience(satisfaction)

Even this should tell us that we need to focus on making things right

In the past

Good ExperienceI tell to 4 persons

In the past

!Bad ExperienceI tell to 18 persons

!Bad ExperienceI tell to 40 persons

and broacast it to all my connections

Photo by Just kronis!: http://www.flickr.com/photos/kronis/3465297614/

Losing of control

• Example:

• Domino's Pizza is an american international fast food pizza delivery corporation. There are currently about 8,500 corporate and franchised stores in all 50 states and 55 countries.– Wikipedia

Losing of control

• Example:

2 of Domino’s Pizza employees got bored and filmed a nasty prank at restaurant’s kitchen.

They uploaded the video to YouTube.

In a matter of days, thanks viral social media, the clip had been viewed more than a million times.

References to it were in five of the 12 results on the first page of Google search for “Dominos”.

Losing of control

• Example:

2 of Domino’s Pizza employees got bored and filmed a nasty prank at restaurant’s kitchen.

They uploaded the video to YouTube.

In a matter of days, thanks viral social media, the clip had been viewed more than a million times.

References to it were in five of the 12 results on the first page of Google search for “Dominos”.

Losing of controlWhy social media matters? 21 3 4

Losing of control

• Losing control don’t mean you couldn’t a!ect it at all.

Losing of control

• It’s better to be in Social Media before you have crisis

Losing of control

• It’s better to be in Social Media before you have crisis

Losing of control

• Companies have already lost control over their brands and communications around them – or at least they will!

• You’re on mercy of your customers, so take good care of them.

Losing of control

• Companies have already lost control over their brands and communications around them – or at least they will!

• You’re on mercy of your customers, so take good care of them.

Key people are outside looking in

• Customers are company’s best (or worst) spokesmen

• Shift from management to ”fanagement”

• All e!orts should be addressed to empowering clients instead of brand controlling

• Make people your marketers and co-producers

Empower people – they’ll return the favorWhy social media matters? 21 3 4

Empower people – they’ll return the favor

• Ask not how you can make benefit for your company – ask how you can make benefit for your customers

• Future of marketing will be about doing things with and for people = COLLABORATIVE

• Facilitation will lead to engagement

” The best way to get people to do stu! with you, is to first join them in what they are doing!” – Paul Isakson

WHAT TO DO? 31 2 4

Photo by djking: http://www.flickr.com/photos/djking/3244795479/

The brand and marketeer is challenged with overload of media to use & master

What to do? 31 2 4

KEY TO SUCCEESS: FOCUS!

The brand and marketeer is challenged with overload of media to use & master

What to do? 31 2 4

KEY TO SUCCEESS: FOCUS!

Marketeer will need to focus to create a solid strategic and operational approach

What to do? 31 2 4

New approaches needed for planning marketing and customer operations

EXAMPLE: At Frantic we use our own ”REAN”-framework to plan activities

MARKETING

SALESSERVICE

RETENTION

BRAND/CONSUMER/CUSTOMER

conversion point

What to do? 31 2 4

We design services to boost the flow between the phases and measure the impact

Serious considerations for companies

What to do? 31 2 4

ASK: ”HOW CAN I HELP YOU?”What to do? 31 2 4

Photo by Je! Sandquist: http://www.flickr.com/photos/je!sand/1133352230/

ASK: ”HOW CAN I HELP YOU?”

• Less brand making

•More facilitating

•More inviting people

What to do? 31 2 4

Photo by Je! Sandquist: http://www.flickr.com/photos/je!sand/1133352230/

… AND JUST HOPE!What to do? 31 2 4

Photo by Isaac Leedom:http://www.flickr.com/photos/risus_in_silva/1424133440/

… AND JUST HOPE!

• CONTROL IS LOST, so you just have to co-operate with consumers and HOPE that they’ll reward you

What to do? 31 2 4

… AND JUST HOPE!

• Move from tactical marketing to strategic marketing

What to do? 31 2 4

… AND JUST HOPE!

• Best marketing is BENEFICIAL to customers

What to do? 31 2 4

… AND JUST HOPE!

• Best marketing is BENEFICIAL to customers

• Brands that aren’t beneficial, will not be followed

What to do? 31 2 4

CROWDSOURCE!

What to do? 31 2 4

Photo by Jacob Bøtter:http://www.flickr.com/photos/jakecaptive/49915119/

CROWDSOURCE!

• Empower your customers by making them a part of your product development process• Better products

• Engaged customers who’ll become your spokesmen

• Make it simple enough though

What to do? 31 2 4

Photo by Jacob Bøtter:http://www.flickr.com/photos/jakecaptive/49915119/

SOCIALIZE CUSTOMER SERVICE!What to do? 31 2 4

Photo by lamont_cranston:http://www.flickr.com/photos/theshadowknows/2995004692/

SOCIALIZE CUSTOMER SERVICE!• Bring your customer service into social media

• Track customers in problems and o!er help

• Create a forum where customers can help each others

• DON’T leave them all by themselves though!

What to do? 31 2 4

Photo by lamont_cranston:http://www.flickr.com/photos/theshadowknows/2995004692/

Expand beyond the PC - reach your people where they are always on - mobile terminals!

What to do? 31 2 4

HOW TO BOWL A STRIKE? 41 2 3

Photo by djking: http://www.flickr.com/photos/djking/3244795479/

• Set goals

• Choose the right tools and venues

• Assign enough resources

1. Create a strategyHow to do it in Social Media? 41 2 3

Photo by willposh:http://www.flickr.com/photos/willposh/459447453/

How to do it in Social Media? 41 2 3

2. Concentrate on dialogs (rather than campaigns)

• Listen - for real

• Answer - to a real person

• Forget business jargon, don’t talk down Photo by Akuppa:

http://www.flickr.com/photos/90664717@N00/28225950/

3. Be authentic, have a faceHow to do it in Social Media? 41 2 3

People are more loyal and more merciful to other people than they are to faceless organizations.

Photo by amanky:http://www.flickr.com/photos/amanky/21541029/

4. CommitIt’s a marriage, not a one night stand!

Photo by Oh mon héros [Aka Suleiman Poher]:http://www.flickr.com/photos/86778817@N00/94049570/

5. Measure… and re-evaluate your strategy

Photo by redjar:http://www.flickr.com/photos/redjar/136165399/

+ BE PREPARED FOR THE UNEXPECTED

Social web is powered by people. Other people. People that are messy, clever, funny and rude. Clueless people and

genious people.

Hence, be ready for unpredictable

scenarios.

Photo by jcoterhals:http://www.flickr.com/photos/oter/2767051035/

How to succeed in a social relationship...

Left the Box blog by Samir Balwani:http://leftthebox.com/marketing/9-ways-social-media-is-just-like-sex/

How to succeed in a social relationship...• Treat your partner well, and they’ll return the favor

• Passion required - it’s not good if you’re not into it

• If it’s exceptionally good (or bad), you just have to tell someone about it later.

• Don’t imply for home run unless you’re up to it

• Nervous first time isn’t usually that great – but it gets better after you get some experience

• Always be honest, never cheat

• Communication usually required to reach results

• You can’t really fake it (or can you?)

Left the Box blog by Samir Balwani:http://leftthebox.com/marketing/9-ways-social-media-is-just-like-sex/

The Design Challenge - making experiences to happen

How to build coherent digital

services?

How to reach our target groups?

services?

How to improve search rankings?

services?

How to get site visitorsinterested?

services?

How to present usersoptions and facilitate selection?

services?

How to make deals online?

services?

How to service customer the best online?

services?

How to use online to reduce churn and keep our customers happy?

services?

How to measure all this and make actionable analytics

and sense out of it?

services?

Are you Interested in this?

services?

Are you Interested in this?

For more information:Tommi Pelkonen

tommi.pelkonen@frantic.com+358-40-50 50 821

Social Media Evolution - Revolution - So What?

Technology

Transcript of Social Media Evolution - Revolution - So What?

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