KTG w/ Sean McDonald 3.9.10- "Social Media--Is it Good for Business?"
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McCombs Knowledge To Go March 9, 2010
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22-Sep-2014 -
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Social Media is a phenomenon that has been talked about, debated, and complicated for variety of reasons. Business has either watched or jumped into the social game. Listen to Sean McDonald share his experience from the March 9 Knowledge To Go webinar. He will also share observations of how social media transforms business (yes, small business too).
Transcript of KTG w/ Sean McDonald 3.9.10- "Social Media--Is it Good for Business?"
McCombs Knowledge To Go
March 9, 2010
Thesis 1: This is not Al Gore’s Internet
The Web has gone Social1995
Today
1. People want to connect and create
2. Technology is the global enabler of scale
3. Economics have changed the funnel, its about influencers
1 person writesa blog postor tweets
9 peopleread/comment orlink back to other
sites
90 people read from multiple
sourcesacross the web
New Customer Funnel
Adapted from Forrester Groundswell 1:9:90 model
Three Forces have Aligned
Social Web 101
Thesis 2: Humans have changed faster than Business
It is a Global thing
20% of China population is online, 2 years ago 10% I have a Voice: Universal appeal is ability to learn, share, explore
beyond my local network Customers not waiting for products to reach them, instead search/find
and make decisions
(source: Internet World Stats)
China , 298M
U.S. , 220M
Japan , 94MIndia , 81M
Brazil , 67M
Germany , 55M
UK, 43M
France , 41M
Russia , 38M
Korea , 36M
Canada , 28M
Italy , 28M Mexico , 27M
Spain , 27M
Turkey, 26M
Indonesia , 25MArgentina ,
20MPhilippines, 20M
1.3 Billion Online
Thesis 3: Your company’s message is noise
Less people are listening to your messages
65% of all marketing spend in 2007 had NO EFFECT on consumers
Source: Fournaise Marketing Group’s 2007 Global Marketing Effectiveness Report
Trust in companies is at an all-time low
Edelman Trust Barometer 2009
Too many messages
Thesis 4: Humans value Relationships; Businesses value Transactions
We measure what we value
Thesis 5: Social is not just for Marketing
Social touches every department (almost)
R&D
Marketing
Sales
Customer support
Operations
Listening: Gathering customer insights as input for innovation
• Brand monitoring• Research communities• Innovation communities• Competitive listening
• Insights gained• Usable product ideas• Faster development speed
Talking: Using conversations with customers to promote products
• Communities & social networks• Video & Blogs• Influencer recognition
• Better market awareness• Word of mouth• Increased sales, revenue• Reach and efficiency
Energizing: Identifying passionate customers and bringing them closer to the sales process
• Social networking sites• Evangelism programs• Communities
• Community membership• Word of mouth• Increased sales, revenue
Supporting: Enabling customers to answer or solve one another’s questions or problems
• Support forums• Communities• Third-party outreach• Influencer recognition
• Number of participants• Volume of questions answered, self service• Decreased volume of support calls, costs
Managing: Providing employees with tools, access to collaborate with each other and customers, partners
• Social networks (internal/external)• Communities• Guidelines & playbooks
• Number of participants• Increased operational efficiency• Decreased email volumes
Department Objectives Strategies Metrics
Ste
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ip:
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Ste
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• Collaborate with Stakeholders
What can a company do?
Dell didn’t know how to react; so we did
nothing
Dell didn’t know how to react; so we did
nothing
20052005
Jeff Jarvis & “Dell Hell”
Customer Satisfaction: 56% to 74%
Negative Brand Sentiment:
49% to 22%
ResultsResults
20072007
Dell case study
Customer Satisfaction and Brand Sentiment in negative territory
20062006Dell Finally Takes ActionDell Finally Takes Action
CustomerSvc
PR
Marketing
What about small business?
threadless
B2B
6 social principles1. Social Media is a means to an end, not a solution
2. The act of being “social” requires you to give first and expect nothing in return, this rubs some of us the wrong way
3. Human beings still value relationships, Social Media can put relationships on a steroids program
4. Technology is an enabler, not the solution or substitute for relationships
5. Marketing has always been about conversations, the mediums did not always support it
6. Change Management is necessary to operate social media alongside rest of the enterprise, not to replace it
• Human Beings talk with each other – a conversation
• Traditional business communications are a one way communication – easy to ignore
• Social Web opens up ability to have conversations – to participate, and to be relevant
© Hugh McLeod
Parting thoughts
Please Give Back to McCombs!This webinar has been brought to you by the
McCombs MBA Alumni Advisory Board, coordinated by
alumni for the benefit of the Alumni Network.
Please get involved with the Alumni Network!
All alumni benefit when we work together to build the quality
and value of the Alumni Network and the McCombs brand.
Time: Get involved in your local club
Talent: Mentor another alumni or speak at a future webinar
Treasure: Make a donation to McCombs
www.mccombs.utexas.edu/alumni
Suggested fund: MBA Alumni Excellence Fund
Please use response code KTG
Send me your feedback -- [email protected]
