The Facebook EraPreparing for a New Kind of Customer Relationship

Clara ShihAuthor, The Facebook EraCEO, Hearsay Labs

October 15, 2009

“The Facebook Era recognizes that we’ve come to a place where people can represent their real identity—and use the social filters on the Web to connect with the world around them.” —Sheryl SandbergChief Operating Officer, Facebook

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Practice what we preach

@clarashih#EEC09

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Agenda

Trends and Numbers

New Consumer Psychology

Rethinking Sales and Marketing

Q&A

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The trends and numbers

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Welcome to The Facebook Era

On Facebook alone . . .

Over 300M active users

8 billion minutes spent each day

1 million developers from 180 countries

is email dead?

PUBL

ISH

CONSUME

1-1 1-many

many-to-many

everybody-to-everybody

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Winning mainstream audience appeal

Source: Nielsen Online Global Index, Dec 2008

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Facebook’s growth just keeps going

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CMO Council – March 2009

“ Digital marketing and new media dominates demand generation and advertising spend allocation priorities for the coming year, with budgets aimed at online and Web 2.0 initiatives almost 50% higher than spend earmarked for traditional media. ”

CMOs are shifting dollars to social media

Three Pillars of Facebook Marketing

Facebook Apps Facebook Pages Facebook Ads

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The new consumer pyschology

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(short video)

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Why Facebook was different

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Facebook as a forum for online identity

Photos and interests

Demographic info

Employer, school, city

Friends

Socially acceptable to share

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Facebook Connect extends trusted identity to any website

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Example. http://thefacebookera.com

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Due diligence expected

Personalized interactions

Transitive trust

As a result, user expectations have changed

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Facebook and Twitter invented new modes of communication

Casual

But emotional

Foster weak ties

Capture long tail

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Rethinking Sales & Marketing

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Sales: The Power of Transitive Trust

Qualify leads early

Low-cost way of staying in touch

Build personal rapport

Navigate buyer orgs

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Sales: Prospecting Friend-of-Friend Networks

Example:

Aster Data Systems

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Customer Service: Crowdsource to Your Customers

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The ultimate opt-in marketing channelsExample

Dell Outlet moved $2M in inventory over Twitter last year

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Marketing: The power of hypertargeting

Minimize wasted ads

Latent interest

Test new segments and

messaging

Fifty percent of my advertising is wasted, I just don’t know which fifty percent

“

”

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Marketing: The power of referrals

Word of mouth automated

Existing customers = your sales force

Search.twitter.com

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eMarketer: Endorsements from friends matter most

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Social Customer Lifetime Value (sCLV)

Social CLV = CLVold + Word-of-mouth referrals + Customer support cost savings + Sales resulting from idea contributions

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Thank you

Stay in touchhttp://facebook.com/thefacebookera

RELEASED APRIL 2009Featured in The New York Times