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1
15 November 2012
Charlene Li@charleneli
Creating A Successful Social Business Marketing Strategy
© 2012 Altimeter Group
2
© 2012 Altimeter Group© 2011 Altimeter Group
3
© 2012 Altimeter Group© 2011 Altimeter Group
4
© 2012 Altimeter Group
Social Business isABOUT RELATIONSHIPS
© 2010 Altimeter Group
© 2012 Altimeter Group
STRATEGY
INTEGRATION
FUTURE
© 2011 Altimeter Group
© 2012 Altimeter Group
Elements of a Coherent Social Strategy7
Understanding Customers
Business Goal Alignment Long-term Vision Strategy Roadmap
Organization & Governance Risk Management Resources,
People and Skills
© 2012 Altimeter Group
#1 Understand Customers: Map Relationships throughout the Dynamic Customer Journey
© 2012 Altimeter Group
#2 Align Social with Key Strategic Goals9
Examine your 2012 & 2013 goals
Pick ones where social will have significant impact
Then double down
© 2012 Altimeter Group
Common Business Goals10
© 2012 Altimeter Group
A short, engaging, inspiring statement of what your ideal customer relationship will look like in the future
#3 Create A Strategic Social Business Vision11
© 2012 Altimeter Group
Vision Statements12
Ford’s Social Strategy Vision: To humanize the company by connecting constituents with Ford employees and with each other when possible,
providing value in the process.
© 2012 Altimeter Group
• Learn: What can be learned from customers and community
• Dialog: The nature of our interactions with customers
• Support: How to provide support via social channels
• Advocate: How to build advocacy among customers and community
• Innovate: Using customer and community to drive innovation
#4 Strategic framework to guide strategy13
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
Analyze initiatives to identify long-term gaps in readiness, as well as immediate opportunities
14
Ove
rall
Pro
gra
m V
alu
e
Organization Capability (Readiness)
Low Value, Poor Capability Low Value, Highly Capable
High Value, Poor Capability High Value, Highly Capable
5.0
5.0
0.0
4.0
3.0
2.0
0.0 4.03.02.0
Gaps identified in organizational
readiness to plan long-term
Immediate opportunities
identified for short-term roadmap
execution
Track for changes in value over time
Track for changes in value and
organizational readiness over time
© 2012 Altimeter Group
Prioritize Initiatives by Value Created and Capabilities in Place to Execute
15
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.000.00
1.00
2.00
3.00
4.00
5.00
Value of Initiatives vs. Capability to Execute
Organizational Capability (Readiness)
Ove
rall
In
itia
tive
Val
ue
Learn 1
Support 5
Dialog 6Support 7
Learn 4Dialog 5
Support 8
Support 6
Learn 3
Learn 2
Advocate 1
Innovate 2Support 2
Innovate 3 Support 4
Innovate 2
Advocate 2Innovate 1
Dialog 1Support 1
Support 3
Advocate 3
Advocate 4Dialog 2
Advocate 5
Dialog 3Dialog 4Advocate 6
LearnDialogSupportAdvocateInnovate
© 2012 Altimeter Group
16Example: Social Business Initiatives, organized by Goals into a 3 Year Roadmap
Category InitiativeNow – 6 months
6-12 months
12-18 months
18-24 months
24-30 months
30-36 months
Create greater loyalty to drive salesAdvocate InitiativeSupport InitiativeAdvocate InitiativeAdvocate InitiativeAdvocate InitiativeIncrease share in SMB marketLearn Initiative
Dialog InitiativeDialog InitiativeAdvocate InitiativeCreate four new productsInnovate InitiativeInnovate InitiativeLearn Initiative
Reduce customer service costsLearn InitiativeDialog InitiativeSupport InitiativeSupport InitiativeSupport Initiative
© 2012 Altimeter Group
#5 Governance and Organization17
© 2012 Altimeter Group 18
2012 2014 20152013
Decentralized Hub & Spoke Evolve to Multiple Hub & Spoke
Centralized
Sample 3 Year Organizational Evolution
© 2012 Altimeter Group
19
Need to define role of the Center of Excellence within the context of existing departments
CoE
Marketing
PR
Dot.com
SEOCRM
Operations
Executive
© 2012 Altimeter Group
Launch &
Monitor
Develop Progra
m
Initiate &
ReviewEducate
CoE provides education on guidelines (R)
BU decides it needs program (R)
BU develops the program (R)
CoE reviews against guidelines (A)
BU launches the program (R)
CoE monitors & measures for
impact, suggests improvements (C) CoE provides
education if needed (C)
CoE checks if minimum
requirements are met (A)
CoE provides education if needed (C)
Legal informed about the program
(I)
Example: Governance for Programs20
© 2012 Altimeter Group
#6 Risk Management21
© 2012 Altimeter Group
22
© 2011 Altimeter Group
#7 People and Skills Require Training3
Social Strategists
Executives
EmployeesMarketing/PR Pros
© 2012 Altimeter Group
Social media training is about developing judgment -- and the confidence to use it
What you should do
What you shouldn’t do
Judgment is needed in between
© 2012 Altimeter Group
Technology Selection Comes LAST24
© 2012 Altimeter Group
1. Planning
2. Presence
3. Engagement
4. Formalized
5. Strategic
6. Holistic
The Social Business Strategy Maturity Stages25
© 2012 Altimeter Group
© 2012 Altimeter Group
© 2012 Altimeter Group
© 2012 Altimeter Group
© 2012 Altimeter Group
© 2012 Altimeter Group
© 2012 Altimeter Group
STRATEGY
INTEGRATION
FUTURE
© 2011 Altimeter Group
© 2012 Altimeter Group
Develop a Relationship throughout the Dynamic Customer Journey
© 2012 Altimeter Group
The company paid influencers to share content
Across their networks
How Intel paid Influencers to ignite earned, and drive traffic back to owned
34
121 Pieces of content created by
influencers
9,314 Average actions per
piece of content
© 2012 Altimeter Group
1.1m Social interactions
24 Influencers commissioned
to create content
© 2012 Altimeter Group
Intel’s iQ Social Publishing an industry first for integrated media curation
35
The iQ experience, while still in beta, is comprised around social algorithms that curate content shared by Intel employees as well as owned and industry content. It is then filtered through a touch design based on the
insights generated through all data in aggregate.
© 2012 Altimeter Group
Use analytics to accurately reflect the Dynamic Customer Journey
36
Traditional Attribution Model
Dynamic Attribution Model
© 2012 Altimeter Group
Intel among the first to reorganize… merging social media team with global media team
37
“Why does this make sense? I found we were having similar conversations across teams. For the past several years, I have been encouraging every opportunity for them to work as one, sharing information and insights — driving cross media opportunities with our partners and thinking about a new world where the idea of “paid” or transactional media dissolves.”
© 2012 Altimeter Group
Digital Paid, Owned, and Earned media38
MicrositesCorporate blog
Corporate websiteSponsored posts,
adsPPC ads
Display, banner ads
Pay per post blogging
© 2012 Altimeter Group
39
Paid Owned
Earned
Visualizing Paid, Owned, and Earned
Requires media buy Owned or controlled but does not require media buy
User-generated content surrounding brand
© 2012 Altimeter Group
Investment in Earned and Owned increases in 2012 40
Source: Society of Digital Agencies (SoDA) via eMarketer, 2012
© 2012 Altimeter Group
STRATEGY
INTEGRATION
FUTURE
© 2011 Altimeter Group
© 2012 Altimeter Group
My smartphone isn’t very smart42
Who do I talk with mostRespond to quicklyOr ignore completely
Prioritize my contacts based on behavior
Add travel time based on my locations
© 2012 Altimeter Group
In the internet of things, data is the new currency
Ubiquitous sensorsReal-time algorithms
Ubiquitous experiences
© 2012 Altimeter Group
Ubiquitous sensors collect data everywhere44
“We are not going to design anything
fragmented — it has to be integrated.”
© 2012 Altimeter Group
‘Smart Pajamas’ is just one of many wearable sensor use cases
© 2012 Altimeter Group
Detect and understand motions – and emotions46
© 2012 Altimeter Group
Google’s Car is the future, but lower insurance rates exist today
47
© 2012 Altimeter Group
Data and Insight Will Be Everywhere And Autonomous
48
© 2012 Altimeter Group
What do you really know about your customers?49
25-55 years old, married, kids, working, graduate degree, reads Real Simple & Wired
© 2012 Altimeter Group
What would you do with a Watson in your pocket?
50
“By the end of this decade, the equivalent of Watson will fit in our
pocket.” – Dr. John Kelly
© 2012 Altimeter Group
51
© 2012 Altimeter Group
Social Business isABOUT RELATIONSHIPS
© 2010 Altimeter Group
© 2012 Altimeter Group
Charlene Li
charleneli.com/blog
Twitter: charleneli
For slides, send an email to
For more information & to buy the
books
visit charleneli.com
© 2012 Altimeter Group
54
15 November 2012
Charlene Li@charleneli
Marketing in The Era of Social Technologies
© 2012 Altimeter Group
Social Business isABOUT RELATIONSHIPS
© 2010 Altimeter Group
© 2012 Altimeter Group
Peru is in the top ten most engaged markets56
Source: ComScore Media Matrix, October 2011
© 2012 Altimeter Group
© 2012 Altimeter Group
INITIATIVES
ORGANIZATION
PREPARATION
© 2011 Altimeter Group
© 2012 Altimeter Group
Five Categories of Social Business Initiatives59
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
Five Categories of Social Business Initiatives60
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
61
Using social technologies to listen and learn and discover what customers and
prospects are already saying.
Definition of Learn
© 2012 Altimeter Group
Track brand mentions with basic tools62
What would happen if every employee could
learn from customers?
© 2012 Altimeter Group
Paid services provide monitoring63
From Salesforce Radian6
Other providers:
AttensityConverseonCrimson HexagonLithiumNetBaseNetworked InsightsNM InsiteTopsySimply Measured SysomosVisible TechnologiesAnd many others
© 2012 Altimeter Group
Radian6 powers Dell’s Social Media Listening Command Center
Dell uses Salesforce Radian6 to power its
social media monitoring of over 25K
customer conversations on the
social web.
64
© 2012 Altimeter Group
Centralized hubs can be basic but effective65
Courtesy Nvidia
NVIDIA set up a Social Media Command Center with a few
monitors
© 2012 Altimeter Group
Five Categories of Social Business Initiatives66
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
67
Using social technologies to initiate or respond to conversations
in social channels
Definition of Dialog
© 2012 Altimeter Group
Engage in conversations68
© 2012 Altimeter Group
Spain Tourism used multiple channels to encourage dialog and sharing
69
© 2012 Altimeter Group
70
Boeing launched this blog as “an experiment” in 2005.
Randy Tinseth, VP of Marketing, posts about the
company and its planes in a conversational and personal manner.
Have continuous, not episodic, dialog
© 2012 Altimeter Group
71
Challenge: Create an authentic, local neighborhood experience when you have over 2000 locations
© 2012 Altimeter Group
Source: Expion, Disclosure: An Altimeter client
72
Applebee’s supports 7000 employees in 1K locations to monitor and respond in social media
GOVERNANCE
SHARING
REAL TIME
EFFICIENCY
© 2012 Altimeter Group
Implementation from corporate to local: How Farmers can transmit knowledge to the local level
73
Applebees social strategist trained in-person on tool, developed
strategy with insights
Strategist trains entire field marketing team (responsible for company and franchise markets)
Corporate holds 90 min training sessions in regional meetings for
all local restaurant managers
Corporate
Regional
Local
© 2012 Altimeter Group
What it looks like: National brand engaging locally74
© 2012 Altimeter Group
Five Categories of Social Business Initiatives75
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
76
Assisting your customers directly, or by facilitating peer-to-peer support, via social
technologies
Definition of Support
© 2012 Altimeter Group
Vodafone Italy and Spain take separate, effective approaches to online support
77
© 2012 Altimeter Group
Metro Madrid gives real time route updates, is responsive to customer feedback
78
© 2012 Altimeter Group
79
GiffGaff mobile customers rewarded for support activities through payback system
GiffGaff, a small UK-based mobile virtual network operator with only 14
employees, has no call center. Instead, the community receives pre-pay credits and badges for contributions. The community
answers 50% of customer questions. The average response
time is 3 minutes.
© 2012 Altimeter Group
80
SolarWinds’ customers self-support in its Thwack community
Thwack was designed as a strategic asset from the start
© 2012 Altimeter Group
Five Categories of Social Business Initiatives81
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
82
Recruiting an “unpaid army” of highly engaged fans to promote your brand
through social technologies
Definition of Advocate
© 2012 Altimeter Group
5-Phase Approach:Formalizing an Advocacy Program
83
Phase 1: Get Ready Internally
Phase 2: Identify
Advocates
Phase 3: Build
Relationships
Phase 4: Amplify Voices
Phase 5: Foster Growth
© 2012 Altimeter Group
Get Ready Internally: This is a long-term program84
Microsoft’s 4,000 strong MVP program sees them as long-
term business partners.
© 2012 Altimeter Group
#socialadvocateYear 1 Year 2 Year 3
0
50
100
150
200
25
75
200
Sample: Program SizeRatio of Dedicated Staff to # of Advocates
# of
Adv
ocat
es
.75 StaffRatio: 1:33
1.5 StaffRatio: 1:50
2 StaffRatio: 1:100
Scale in efficacy as program matures, due
to specialized and more efficient staff; optimized processes; as well as the types of programs
which are initiated.
85
© 2012 Altimeter Group
#socialadvocate
1. Term length: 1 year
2. Post blog badge
3. Participate in private advocate community – X times per month TBD
4. Post original blog content – X times per quarter TBD
5. Participate in existing communities, e.g. answering support questions – X times per quarter TBD
6. Provide customer experience feedback and advocacy program feedback – X times per quarter TBD, or on as needed basis
Sample: Advocate Contributions86
© 2012 Altimeter Group
#socialadvocate
Sample: Advocate Benefits
Recognition
Featured in campaigns
Content aggregation on website
Blog badge
Access
1 consumer events per
year
1 pre-briefing per
year
National events case
by case
Community
Private community
Dedicated community manager
Schwag
Monthly gift basket
87
© 2012 Altimeter Group
Yelp’s Elite program uses a public blog to showcase get-togethers and recruit
88
© 2012 Altimeter Group
Five Categories of Social Business Initiatives89
Learn
Dialog
Support
Advocate
Innovate
© 2012 Altimeter Group
90
Using social technologies to source and collect customer feedback on current or
future products and services
Definition of Innovate
© 2012 Altimeter Group
Reviews provide rich data on how to improve
91
© 2012 Altimeter Group
Danish bank ask for help to improve mobile banking on Facebook
92
© 2012 Altimeter Group
Starbucks involves 50 people around the organization in innovation
Tens of thousands of customers have submitted, commented, and voted on ideas at My Starbucks Idea.
As of March 2012, more than 200 have been
implemented.
93
© 2012 Altimeter Group
STRATEGY
ORGANIZATION
PREPARATION
© 2011 Altimeter Group
© 2012 Altimeter Group
95
Meeting the needs of Dynamic Customers requires Adaptive Organizations
Rigid Organizations Adaptive Organizations
© 2012 Altimeter Group
Marketing
Sales
Service
Executives
Product
Marketing extends to all parts of the organization96
© 2012 Altimeter Group
Culture and Leadership are the lynchpins of social media success
97
Authenticity Transparency
© 2012 Altimeter Group
Build Trust Before A Crisis Hits98
© 2012 Altimeter Group
FedEx’s Response: Sincere but didn’t resonate
99
© 2012 Altimeter Group© 2011 Altimeter Group
Have the Courage To Take the Leap Into Relationships
© 2012 Altimeter Group
Develop the ability to give up the need to be in
control
© 2011 Altimeter Group
© 2012 Altimeter Group
Open Leadership102
Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals
© 2011 Altimeter Group
© 2012 Altimeter Group
Leaderships means having followers103
“Leadership is a relationship between those who aspire to lead and those who choose to follow.”
- From “The Leadership Challenge”
© 2012 Altimeter Group
Redefine what it means to be a leader
© 2010 Altimeter Group
© 2012 Altimeter Group
“You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.”
- Marc Benioff, CEO of Salesforce.com
© 2010 Altimeter Group
© 2012 Altimeter Group
STRATEGY
ORGANIZATION
PREPARATION
© 2011 Altimeter Group
© 2012 Altimeter Group
#1 Prepare your Organization for Social Business107
© 2012 Altimeter Group
Assess Your Readiness and Capabilities108
© 2012 Altimeter Group
#2 Ask the Right Questions about Value
“We tend to overvalue the things we
can measure, and undervalue the
things we cannot.”
- John Hayes, CMO of American
Express
© 2011 Altimeter Group
109
© 2012 Altimeter Group
#3 Create a Culture of Sharing110
© 2012 Altimeter Group
#4 Discipline and process are crucial111
Source: “H&R Block’s Response Process” David Armano, Edelman 2010
© 2012 Altimeter Group
No relationships are perfect
Google’s mantra: “Fail fast, fail
smart”
#5 Master the Art of Failure
© 2011 Altimeter Group
112
© 2012 Altimeter Group
Create
Sandbox
Covenants
© 2011 Altimeter Group
113
© 2012 Altimeter Group
Social Business isABOUT RELATIONSHIPS
© 2010 Altimeter Group
© 2012 Altimeter Group
Charlene Li
charleneli.com/blog
Twitter: charleneli
For slides, send an email to
For more information & to buy the
books
visit charleneli.com
© 2012 Altimeter Group
© 2012 Altimeter Group
#2 Ask the Right Questions about Value
“We tend to overvalue the things we
can measure, and undervalue the
things we cannot.”
- John Hayes, CMO of American
Express
© 2011 Altimeter Group
116