The Elusive Web 2.0

Fact or Fiction?Presented by:

Tony Pietrocola

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Web 2.0 allows you to reach your

audience with better measurement, more granular

targeting and opportunities for collaboration and viral sharing

-- Wall Street Journal

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Ask yourself…

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• Is my web presence Customer Centric? example

• Does it Motivate my audience? example

• Is my site being used to its fullest Collaborative Potential? example

• It’s all about one thing: The Customer Experience

• Remember Ronald Reagan and the Pony!

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What exactly is Web 2.0

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• Web 2.0 is a nebulous catchall to identify the newest generation of Internet collaboration, such as: MySpace, FaceBook, Flickr, Wikipedia and YouTube.

• An honest conversation driven by mass not the other way.

• The very notion that Web 2.0 is anything tangible is fiction.

• It’s about connecting.

• It’s about collaborative content and redefining customer experience.

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“If it’s cool, it’s probably Web 2.0.”

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Web 2.0 is about connecting

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• Allow end users to be part of a like minded community and have a voice.

• It’s no longer just about You it’s truly about your Customers.

• C-level decision makers are looking for exchange of ideas and openness.

• Let the more credible community vouch for your products and services.

• Direct conversations with consumers

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Web 2.0 benefits businesses

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• There will continue to be major innovations that will forever change the way companies interact with their customers – blogs, RSS, social communities.

• Brands like General Motors, Ford, Whirlpool and Maytag are increasingly using the Web to present and sell their products, as well as to talk to and listen to their customers i.e. influence buying decisions.

• With 200 million Americans online, no company can afford to overlook the Internet as a way to connect with its customers. 

• The key is to find the right mix of interaction that fits your business to inform, brand and market to your customers while providing a social forum.

• Easier sell – they are learning and being sold by more credible peers not by you.

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Benefits of Web 2.0

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• Inexpensive

• Mass Appeal

• Viral networking

• Easily segment

• Brand building

• New channel to influence customers

• Community of users creates additional value

• Differentiation means more sales

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What they are saying

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• 60% of mid-size businesses are investing in Web 2.0

• They are investing in…• Collective Intelligence 48%• Social Networking 37%• RSS 35%• Podcasts 35%• Blogs 35%

• While industry investment looks like:• Retail 77%• Technology 74%• Financial 63%• Healthcare 53%• MFG 48%

• Why:• Better customer experience• Collaboration• Easy and inexpensive to enter new markets • Brand differentiation

Source: McKinsey Global Survey 2007

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Why marketers are investing in Web 2.0

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2%

17%

32%

40%

49%

70%

77%Increase brand / media awareness

Generate leads for sales

Sell products directly online

Drive traffic to our site

Generate leads for a dealer/dist

To provide info/edu content only

Other

E-marketer 2007 Survey

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Who has taken the leap

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• Blogs: Sun | GM (The company’s representative should try to make bold opinions i.e. predictions on the company’s industry)

• Podcasts: Whirlpool (reach out on the treadmill or in the car)

• MySpace: VW Helga (be bold, stand out)

• Virtual Community: Second Life | Tenth Floor

• Business Communities: Jigsaw | LinkedIn | MetaFilter | Askeet | PartnerUp

• Our concept: sample | sample 2

• RSS

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RSS works for everyone• Online publishing has made it easy to push published content to subscribers

• Consumer Bottom Line: Subscribing to feeds saves time.

• Publisher Bottom Line: Instant distribution of subscribable content.

• Advertiser Bottom Line: Advertising advantages for opt ins and segments

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Breaking the trend

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• Entrepreneurs, CEO’s and marketers are control freaks

• Great brands have been built on mass media | NOT the case for new brands

• How can SMB compete and build brands efficiently? Easily

• Hand your megaphone to your customers so they can evangelize your product

• Think about how Jet Blue started advertising…

• Don’t control consumer network, let it go

• Smartest marketers aim to inspire not control

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Loyalty and Web 2.0

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• Customers who are strongly engaged in the brand community are more likely to remain attached to the group, participate and recommend the brand.

• Marketers have blogs, forums, chat rooms and online communities to facilitate conversations with their customers. Think Ducati (design and R+D).

• Consumer-generated marketing means entering into direct conversations with consumers.

• Offer premium content and rewards to loyal customers.

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Customer centricity via Web 2.0

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Customer centricity sets the foundation of your online presence and strategically aligns the online customer experience by:

• Greater control over customer actions• Greater connection with customers• Greater viral effect• Increase in profitability

Brand loyalty based on customer centricity is a set of core beliefs which result in:

• High switching costs• Increase in barriers to competitors• Increase in relationship lifetime• Reduced price comparisons• Real measurable results

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How do you harness Web 2.0

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The do’s…

• Watch the kids (remember Warren Buffett)

• Watch the kids in your own company

• Try it yourself

• Talk to customers

And the don’ts…

• Assume it’s only for consumers

• Limit employees online R&D, ok playing!

• Take it personally, use it as motivation

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Web 2.0 drives a superior online experience

• From Strategy driven by products to strategy driven by customer

• From Product matters most to online experience matters most

• From Product data is the key to customer data is the key

• From All customers are created equal to high profit and high potential

Building brand = High Profits

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MOBILEMobile devices outnumber desktops by a factor of two on a global scale:

• By 2010 over 2 billion will browse with cell phones

• Mobile is a revenue generator

• Mobile is customer centricity it is everywhere!

Forward-looking companies are laying the ground work for mobile publishing:

• Right-now research

• Promotion reminders - Product promotion codes driving mobile to web

• Broadcast advertising - mass response, measurement, follow-up

• Web / Email - Cross promotion and opt-in list building opportunities

• Account balances / supply chain alerts

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RECOMMENDATIONS

News Announcements Promotions Promotions with images

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To summarize

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• Be informal

• Candid dialog with customers

• Give up control

• Do something bold yet sensible

• Become a leader by sharing one’s knowledge about the industry

• Be different, very different!

Any Questions?

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Thank you for your time.

Tony Pietrocola | tonyp@tenthfloor.com | 216.575.1010