Tapping The Power OfThe Groundswell

Charlene LiAltimeter GroupJune 5, 2009

If you would like a copy of the slides, please leave a business card with me.

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Welcome to the Groundswell

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Where social technologies enable people to get what they need from each other

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Coca-Cola spreads conversations through its fans

Agenda•How to think about customer engagement•Goal-oriented strategies for social

technologies•What the future holds•Recommendations and next steps

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What marketing often looks like today

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Basic online activity is just a start

Source: Pew Internet & American Life Project Tracking surveys (August 2006 to May 2008)

Percent of Internet users who report ever doing this activity

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The Engagement Pyramid

Source: Universal McCann Social Media Tracker Wave 3, March 2008*Source: Wiki data from Wetpaint, forum data from Lithium Technologies**Source: Pew Internet & American Life Project Tracking surveys

• Share online video – 37%• Update profile – 35%• Upload photos – 23%

• Share online video – 37%• Update profile – 35%• Upload photos – 23%

• Watch online video – 59%• Read blogs – 48%• Download podcasts – 23%

• Watch online video – 59%• Read blogs – 48%• Download podcasts – 23%

• Edit a wiki – <1%*• Moderate a forum – <1% • Edit a wiki – <1%*• Moderate a forum – <1%

• Write in a blog – 21% • Upload a video – 18%• Write in a blog – 21% • Upload a video – 18%

• Write in a discussion forum – 47%*• Rate a product or service – 32%**• Comment on a blog post – 22%**

• Write in a discussion forum – 47%*• Rate a product or service – 32%**• Comment on a blog post – 22%**

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How engaged are YOU?

Agenda•How to think about customer engagement•Goal-oriented strategies for social

technologies•What the future holds•Recommendations and next steps

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What kind of relationship do you want?

Transactional

OccasionalImpersonalShort-term

Transactional

OccasionalImpersonalShort-term

Passionate

ConstantIntimate

Loyal

Passionate

ConstantIntimate

Loyal

Focus on relationships, not technologies

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Four strategies, start with Learn

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Learn with monitoring tools

No size fits all for monitoring

• River of “noise” versus insight

• Need for scenario-based monitoring▫Response to

detractors▫Analytics for

planning▫Listen by

audience/site▫Sentiment

tracking/audits

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How Oracle encouraged feedback

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How to learn better

•Determine where fast, flexible learning is most needed to support business goals

•Figure out who you need to listen to, and where they are

•Find out who is best at listening to that audience▫Hint: It’s probably not Market Research

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B2B Twitter encourages engagement

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At Southwest, a planner talks

Post has received 98 comments over 10 days

Post has received 98 comments over 10 days

In the future, everyone is a marketer

In the future, everyone is a marketer

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Cable problems? Who do you call?

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BlueShirtNation.com supports Best Buy’s front line employees

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Salesforce innovates with customers

Agenda•How to think about customer engagement•Goal-oriented strategies for social

technologies•What the future holds•Recommendations and next steps

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Social networks will be like air

Three things are needed to make social networks like air

1. Identity – who you are2. Contacts - who you know 3. Activities – what you do

And it’s still very early, so patience is needed

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My identity, in context

Author, researcher, strategist Chauffeur, cook, play date organizer

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Social aggregators can map your relationships

Source: 33Across

Map explicit relationships

Identify “Influencers” who are connected AND share

Vendors:- 33Across- Lotame- Rapleaf

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Implicit social data fills in the relationship gaps

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Sharing activities to networks

Publish reviews from CitySearch to Facebook

Publish reviews from CitySearch to Facebook

Both CitySearch and Facebook get behavior and sharing data

Both CitySearch and Facebook get behavior and sharing data

Bring friends to CitySearchBring friends to CitySearch

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Aggregators can build rich profiles

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Who I email the mostWho I email the most

Who I meet withWho I meet with

Who I callWho I call

What I read and shareWhat I read and share

What sites I visitWhat sites I visit

What I buyWhat I buy

Who I know, what I didWho I know, what I did

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Evolution of profiles

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“Birds of a feather shop together”

“Lisa” buys on NineWest.comMedia6 maps “network neighbors” based on visits to profile sites via browser cookies (no PII involved)

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NineWest ads are shown to Lisa’s closest friends, without identifying or involving Lisa

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The rise of the personal CPM

Target & price on:• Influence• Number of friends• Influence among friends• Number of influential friends

Agenda•How to think about customer engagement•Goal-oriented strategies for social

technologies•What the future holds•Recommendations and next steps

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#1 Get the right people on the bus

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Find your revolutionaries

Lionel MenchacaDell

Ed TerpeningWells Fargo

Paula DrumH&R Block

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Have a plan to deal with different social media mindsets

Find the “moments of faith” and “moments of crisis” for each

mindset

Insecure Confident

Dependent

Independent

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Tactics

Audience

#2 Start small, but start now

Goal

Revolutionary

#3 Evaluate where social makes sense

Identify where social network data and content can/should be integrated in the business

Leverage existing identity and social graphs where your audience already is, e.g. Facebook Connect, Google Connect, LinkedIn

Get your privacy and permission policies and processes aligned with an open strategy

Find your trust agents and partners◦“In Google I trust”, or someone else?

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Get your backend data in order

Have a single identity for all customer records

Understand new data standards of the open social Web

Integrate mobile

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#4 Prepare for a new organization

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New forms of leadership will be needed

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Social transforms traditional orgs

Task Strategy ChangesMarket research Learn • Monitor conversations

• All employees listen & learn

Marketing/Sales Dialog • Every employee is a marketer• Bridge the consideration gap

Customer support

Help • Proactively seek out problems• Enable customers to help

Product development

Innovate • Seek ideas from customers• Broaden employees involved

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#5 Measure the right things

Your goals determine your metrics

Your goals determine your metrics

Use the same metrics as your marketing goals

Use the same metrics as your marketing goals

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Example “micro” metrics

Goal Metric Value

Learn # of customer feedback

Impact of faster, better insights

Dialog # of people reached # of interactions

AwarenessFaster, more sales

Help # of issues addressed

Customer satisfaction

Innovate # of implemented ideas

Faster, better development

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Higher order metrics to consider

How likely are you to recommend this to someone you know?

Net Promoter Score

Lifetime revenueCost of acquisitionCost of retentionCustomer referral value (CRV)

Lifetime Value

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#6) Embrace the loss of control

47Photo: Kantor, http://www.flickr.com/photos/kantor

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An essential tool to have

Thank You

Charlene LiAltimeter Group

charlene@altimetergroup.comblog.altimetergroup.com

Twitter: @charleneli

If you would like a copy of the slides, please leave a business card with me.

Copyright © 2009 Altimeter Group49

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