Connecting with the Customer

Corporations &

Social Networking

By: Louise Ling, Sridhar Avuthu, Kay Nikookary

Introduction

Social Capital & Social Networking defined

Link between corporations and social media

Social Media Segments

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2

3

4

Legitimate reasons against social networks

Solutions to mediate & succeed

Examples of successful implementation

Conclusion

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2

3

4

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Network of Blogs

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ExecutiveParticipation

PowerTo

Employees

Loyalty&

Commitment

IBMcreated an entire network.

Lesson: Having a CEO that blogs is great, but increase the number of blogs and you increase the number of connections. Leveraging your employees to write about what they love conveys the corporate dedication to the industry.

400,000 hits per

month (2006)

Positive &

Negative Comments

TransparencyTrickles down •Employees•Customers•Partners

FacebookTwitterNetworkOf Blogs

CEO Blog

Transparency

Also on OtherSocial

Networks

Jonathan Schwartz’s blog

Sun MicrosystemsLesson: Social media is a culture of transparency and honesty that must be embraced, leading by example is one of the best ways to introduce it to a company. Few things are better than a CEO that blogs or uses twitter.

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CustomerFeedback

StrengthenCorporateMessage

Custom Tailored

Site

CustomerLead

Strategy

StarbucksLesson: Thinking of ways to build your company are great, but directly asking your consumers what they want, is better. Acting on that information and doing it publicly is key to the success of this campaign.

My Starbucks Idea.”

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@Comcast cares

Comcast

TargetThe

Problem

Real Time Customer Service

Handle Customer Complaints

Change speed of delivery

Lesson: Being active on Twitter is great but tracking and seeing who’s mentioning you, is the next step. Social media allows for the possibility of great customer service, and with it, better brand loyalty

Allow customers to solve problems

2.7MM

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Ad

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0.7MM

2.5MM

6.8MM

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www.willitblend.comhttp://www.youtube.com/watch?v=qg1ckCkm8YI

Blendtec

YouTube Video Marketing

Various Attention Getting Videos

Proving the point about the products

Customer participation in marketing

Lesson: Social media marketing doesn’t always need to cost a lot of money. Creating funny, original video and leveraging an already large user base can be used to increase sales.

Continued CustomerInteraction

With Personnel

EmployeesTo Share Insights

Thru Web Contact

CommunicationEngagingInterestingTrustConsistencyRoutine

Empower

Relationship

Empower

Zappos

Lesson: Take a CEO that twitters, add in a great personality and you have a recipe for social success. Ingraining social media into the culture of a corporation means that every consumer interaction is personal.

Zapposwww.zappos.com

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Belonging

Possibility

Event Hall Mall Museum

Park Music

Garage Homes

Toyota

Being a Second Life resident, the

possibilities of this seem fairly limited.

We are used to living where we

want (or where we can afford rent),

“razzing” whatever car we want (if we

own it), using whatever

transportation we want (you can’t

think of anything that we can’t

drive!)Toyota Metapolis

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www.youtube.com/watch?v=0v-0AVtg0eM&eurl=http%3A%2F%2Fwww.

vintfalken.com%2Ftoyota-metapolis-toyotas

-very-own-virtual-continent%2F&feature=

player_embedded

Introduction• Social Capital & Social Networking defined• Link between corporations and social media• Social Media Segments

– Internal Social Networks– Employee Personal use– Corporations on social networks as a profile

• Legitimate reasons against social networks• Solutions to mediate & succeed• Examples of successful implementation

IBM

• When IBM decided they wanted to start using blogs, they didn’t just create one blog, they created an entire network. IBM created a way and allowed their employees to write about their experiences, what they’re working on, or any other topic of choice.

• IBM capitalizes on the intelligence of their employees to give consumers insight into what happens behind the scenes. By giving the industry experts they’ve hired a voice, IBM is able to highlight the people behind their products. Users get to see how IBM operates, and are given a direct connection with IBM employees.

• Lesson: Having a CEO that blogs is great, but increase the number of blogs and you increase the number of connections. Leveraging your employees to write about what they love conveys the corporate dedication to the industry.

Sun Microsystems

• Want your blog to really make a splash? You could learn a lot from Sun Microsystems’ CEO blog. Jonathan Schwartz’s blog received about 400,000 hits a month (in 2006).

• It’s not the number of hits that make his blog a social media success, but the openness on it. Positive and negative comments are allowed, and even the most inane are approved. Transparency from the highest position in a company trickles down and increases trust from consumers.

• Lesson: Social media is a culture of transparency and honesty that must be embraced, leading by example is one of the best ways to introduce it to a company. Few things are better than a CEO that blogs or uses twitter.

• Sun Microsystems also has a network of blogs, friends on Facebook, friends on Twitter, and their own Twitter account as well.

Starbucks

• Social media isn’t only about using existing websites, but sometimes creating your own. To get a better handle on consumer feedback, Starbucks did just that with “My Starbucks Idea.”

• The site allows users to submit suggestions to be voted on by Starbucks consumers, and the most popular suggestions are highlighted and reviewed. Starbucks then took it a step further and added an “Ideas in Action” blog that gives updates to users on the status of changes suggested.

• By empowering their exceptionally web savvy consumer, Starbucks strengthens their campaign to add a personal touch to coffee.

• Lesson: Thinking of ways to build your company are great, but directly asking your consumers what they want, is better. Acting on that information and doing it publicly is key to the success of this campaign.

• Starbucks has also embraced Twitter, you can see their stream at @Starbucks.

Comcast

• I never expected to be writing good things about Comcast, but because of Frank Eliason things have changed. Frank is the man behind @Comcast cares, a Twitter account setup to help Comcast users in need.

• Comcast has found a way to offer exceptional customer service to their consumers, but the thing that really makes them stand out is how well they monitor discontent. Complain about Comcast and you can bet you’ll hear from @comcastcares to see if they can help.

• Lesson: Being active on Twitter is great but tracking and seeing who’s mentioning you, is the next step. Social media allows for the possibility of great customer service, and with it, better brand loyalty.

Blendtec• Who doesn’t know about the “Will It Blend” series on YouTube? Created

by George Write, the marketing director of Blendtec, the campaign was low cost and instantly became a hit. In the video, Tom Dickson the CEO of Blendtec, attempts to blend objects in their blender. This simple idea led to a “five-fold increase in sales”.

• Blendtec leveraged YouTube’s subscriber base and tried something fun and original. The campaign was a success and continues to entertain and sell.

• Lesson: Social media marketing doesn’t always need to cost a lot of money. Creating funny, original video and leveraging an already large user base can be used to increase sales.www.willitblend.comhttp://www.youtube.com/watch?v=qg1ckCkm8YI

Zappos• The reason why Zappos stands out on Twitter is because of their ability to bring

the company to life. The Zappos CEO has lent his personality to the company brand, a personality that is friendly, helpful, funny, and trustworthy. They use Twitter to highlight interesting facts, and to talk to their consumers. Talking to Zappos is like talking to a friend that happens to sell shoes.

• The most obvious of companies to make Twitter work is Zappos, an online retailer that has really led the way in corporate Twitter use.

• The idea of micro-blogging and the sense of exceptional customer service is ingrained in the corporate culture. Most Zappos employees have an active account, and the Zappos site has a page that aggregates all the streams.

• Lesson: Take a CEO that twitters, add in a great personality and you have a recipe for social success. Ingraining social media into the culture of a corporation means that every consumer interaction is personal.

• Zappos also does a great job of using their blog and Facebook to engage their avid fan base.

Toyota• Toyota started its own virtual world to promote its products in Japan (site is in Japanese).• Their own virtual world? Well, not completely. More of a continent. Toyota Metapolis is

based on the MeetMe server technology and software. • For now, Toyota Metapolis exists of:

– Mall where you can buy Toyota cars. – Event Hall – The Museum is totally dedicated to Toyota. – Toyota’s Community Areas are split up in four main areas: Cars, Eco-park, music and

beginners – The Residential Areas aren’t as sophisticated as we are used to, – The Garage. I think this is a virtual first: building a giant structure, just to let your

residents park - and show off - their cars. • Being a Second Life resident, the possibilities of this seem fairly limited. We are used to

living where we want (or where we can afford rent), rezzing whatever car we want (if we own it), using whatever transportation we want (you can’t think of anything that we can’t drive!) but…

Virtual World of Toyota

www.youtube.com/watch?v=0v-0AVtg0eM&eurl=http%3A%2F%2Fwww.vintfalken.com%2Ftoyota-metapolis-toyotas-very-own-virtual-continent%2F&feature=player_embedded

Conclusion

• Corporations are looking for new ways to sell their products and engage their consumers.

• Companies from all sectors and all sizes are taking advantage of social media.

• Companies are taking part in the areas of concern or meeting various objectives.

• Commitment levels vary and range widely in cost.• The trend leaders are some what consistent. • All of the above are reasons to trust the growth of social

networks and social media.