Four Laws of Social Business (Jeremiah Owyang, Altimeter Group)

Four Laws of Social Business

Jeremiah OwyangAltimeter GroupMay 2010

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SMASH SUMMITT

© 2010 Altimeter Group

There are more than four. Laws can be broken, but not without

consequences. Whether a buyer or seller, abide by these to

prosper.

The thing about the laws…2


Four Laws of Social Business3


1) Don’t Fondle the Hammer


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Run when you hear “Twitter Strategy” or “Facebook Strategy” – it’s putting the cart before the horse.

Instead, focus on how you’ll understand customers.

Then choose a business objective.

First, focus on customers5


Socialgraphics6

Demographic

Geographic

Psychographic

Behavioral

Socialgraphic


1. Where are your customers online?

2. What are your customers’ social behaviors online?

3. What social information or people do your customers rely on?

4. What is your customers’ social influence? Who trusts them?

5. How do your customers use social technologies in the context of your products.

Socialgraphics asks key questions7


Social Strategy Objectives8


Focus on building the house – not the hammer


2) Live the 80% rule



Treat social success like launching a new product.

80% of success is getting your company ready – only 20% is about the technologies.

You can’t love your customers ‘till you love yourself first.

Get your company ready11


Crisis response plan12


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Social media triage

Can you add value?

Evaluate the

purpose

Respond in kind & share

Thank the person

Unhappy Customer?

DedicatedComplainer

?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

No Response

No

Yes

Take reasonable action to fix issue and let customer know action taken

Are the facts

correct?

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Yes

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message


One department controls all efforts

Consistent

May not be as authentic

e.g. Ford

Centralized14


Organic growth

Authentic

Experimental

Not coordinated

e.g. Sun

Organic15


One hub sets rules, best practices, procedures

Business units undertake own efforts

Spreads widely around the org

Takes time

e.g. Red Cross

Coordinated16


Similar to Coordinated but across multiple brands and units

e.g. HP

Multiple hub and spoke or “Dandelion”

17


Each employee is empowered

Unlike Organic, employees are organized.

e.g. Dell, Zappos

Holistic or “Honeycomb”18


Social strategist: Responsible for the overall program, including ROI

Community manager: Customer facing role trusted by customers

Roles19


3) Customers don’t care what department you’re in

© 2010 Altimeter Group Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/


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Customer don’t care what department you’re in


Now, with social tools, every employee can talk to customers and prospects.

Yet, this could create confusion with clients. New systems will be needed to centralize

data so customers have a holistic experience.

Customers deserve a holistic approach

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Connects the Social Web with existing CRM Systems

Enables Brands to better manage relationships• Catch leads in real time• Allow for better account management• Anticipate customer needs

Social CRM helps companies catch up

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Marketing SalesService & Support

Innovation

Collaboration

CustomerExperienc

e

2. Social Marketing Insights

3. Rapid Social

Marketing Response

4. Social Campaign Tracking

1. Social Customer Insights: The 5M’s

5. Social Event

Management

6. Social Sales

Insights

7. Rapid Social Sales Response

8. Proactive Social Lead Generation

9. Social Support Insights

10. Rapid Social

Response

11. Peer-to-Peer Unpaid

Armies

12. Innovations

Insights

13.Crowdsource

d R&D

14. Collaboration Insights

15. Enterprise

Collaboration

17. Seamless Customer

Experience

18. VIP Experience

16. Extended

Collaboration

© 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

The 18 Use Cases of Social CRM


© 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

Not All 18 Social CRM Use Cases are Market Ready


4) Real time is *not* fast enough


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Evolution of the web28


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Real time is not fast enough


Microsoft’s MVPs empowers community


Walmart’s 11 Moms gives consumers a voice


The Four Laws Of Social Business32


How To Prosper33


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Jeremiah [email protected]

m

web-strategist.com/blog

Twitter: jowyang

THANK YOU


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Altimeter Group is a Silicon Valley-based strategy

research and

consulting firm that provides companies with a

pragmatic

approach to disruptive technologies. We have four

areas of

focus: Leadership and Management, Customer Strategy,

Enterprise Strategy, and Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

About Us

http://www.altimetergroup.com/

Four Laws of Social Business (Jeremiah Owyang, Altimeter Group)

Technology

Transcript of Four Laws of Social Business (Jeremiah Owyang, Altimeter Group)