4 business trends supporting social deployment
TRANSCRIPT
Four Business Trends
that Make the Case for
Digital & Social
Deployment
Patrick Milan
Creative Destruction Officer
Tunheim
@pmilan
PRSA Social Media Bootcamp
Spokane, May 22, 2014
of companies using or
planning to use
social media79
58% CURRENTLY USE
21% PREPARING TO
LAUNCH INITIATIVES
Harvard Business Review, May 2011
Harvard Business Review, May 2011
Four key trends that make the business case for deploying a
digital and social deployment
Welcome to Digital Darwinism
The traditional sales model is broken
Proving Business Value is not enough
Owning Thought Leadership
GM
Exxon
Firestone
Douglas
P&G
Republic Steel
Citgo
ConocoPhillips
U.S. Steel
General Electric
Esmark
Chrysler
Armour
Gulf Oil
Mobil
DuPont
Amoco
Bethlehem
Steel
CBS
GM
Ford
Wal-Mart
Exxon
GE
IBM
Citigroup
Altria Group
Boeing
AT&T
Bank of
America
State Farm
Mobil
Hewlett-
Packard
Sears Roebuck
DuPont
P&G
TIAA-CREFF
Merrill Lynch
Borden
Chemical
Lockheed
Martin
Alcoa
International
Paper
Wilson
Sunoco
United
Technologies
American Can
General
Dynamics
General Mills
National
Intergroup
Curtis-Wright
Olin
Asarco
71
The blistering change of pace has reeked havoc on
businesses’ ability to stay on top
1955 1999AT&T Shell Oil
Navistar
Rockwell
Eastman Kodak
Goodrich
Continental
Group
Bendix
Atlantic Richfield
Fortune Brands
Ryerson Tull
Armco
Honeywell Intl
Amax
Allis-Chalmers
Jones & Laughlin
Steel
RCA
Union Carbide
General Foods
Uniroyal
52%
Safeway
Costco
ConAgra
Johnson &
Johnson
Bellsouth
Walt Disney
PepsiCo
Ingram Micro
Wachovia
Cigna
McKesson
Loews
Safeway
Costco
ConAgra
Johnson &
Johnson
Bellsouth
Target
JC Penney
Home Depot
Lucent
Motorola
SBC
Kroger
Merck
ChevronTexaco
Met Life
Intel
Lockheed
Martin
Allstate
United
Technologies
Bank One
GTE
UPS
Marathon Oil
Welcome to the age of “Digital Darwinism”
Brian Solis
Author of:
What’s the Future
of Business?
The End of
Business as Usual
Rewire the Way
You Work to
Succeed in the
Consumer
Revolution
Engage: The
Complete Guide
for Brands and
Businesses to
Build, Cultivate, an
d Measure
Success in the
New Web
How fast is information moving?
AT&T’s answer
The speed of high risk information…
2003 = 24 hours
2009 = 4 hours
2013 = 4
minutes
Source: AT&T
Four key trends that make the business case for developing
and deploying a social and digital strategy
Welcome to Digital Darwinism
The traditional sales model is broken
Proving Business Value is not enough
Owning Thought Leadership
+ Longer sales cycle times
+ Lower conversion rates
+ Less reliable forecasts
+ Compressed margins
Sales performance growing increasingly erratic
Source: Corporate Executive BoardThe Sales Model is Broken
We must find ways to create value
“Today’s customers are better
informed than ever before. By
the time they approach
suppliers, they generally have
a clear idea of the problem they
need to solve, the solutions
that are available, and the price
they are willing to pay.”
“Dismantling the Sales Machine”
Corporate Executive Board, November 2013
Insight is the key to differentiation… and winning
+ Acknowledging the hurdle of selling
beyond the C-suite
+ Sharing novel and important information
about the business that the customer
has overlooked
+ Linking insights that arise to the
solutions you provide
Four key trends that make the business case for developing
and deploying a social and digital strategy
Welcome to Digital Darwinism
The traditional sales model is broken
Proving Business Value is not enough
Owning Thought Leadership
Supplier Centric
Business Value
Personal Value
The Corporate Executive Board is
the leading member-based advisory
board. They identify and build upon
the proven best practices of the
world’s best companies.
Proving Business Value is not enough
Source: Corporate Executive Board
Providing Business Value is not enough
Study: “Business Value does not lead to purchase”
Supplier Centric
Business Value
Personal Value
Personal Value focuses on
the benefits to the
individual customer
stakeholder:
• Professional goals
• Social interactions
• Emotional drivers
Source: Corporate Executive Board
First, we recognize that there are two dramatically
different audiences within each prospect
The Recommenders …
and the Decision Makers.
You won’t even get a chance to pitch unless the
Recommenders serve you up
This group wants consultant-level
information without any hint of a sales pitch.
Channels:
Shared
Owned
Earned
Recommenders
For Recommenders, it’s all about content
Conte
nt
Owned
Shared
Earned
AUDIENCE
Public Radio
National Newspapers
Regional Journals
Blogs
Local Papers
CHANNELSMEDIUM
YouTube
.com sites
YouTube
Mobile App
© Tunheim, 2014 All Rights Reserved
Recommenders are the audience that communicators are best
suited to engage
The Recommenders will complete
57% of the selection process… and they control which
suppliers will land in front of
the Decision Makers.
Recommenders
For Recommenders, it’s all about content
Decision Makers are relationship oriented
Decision
Makers
Conte
nt
Rela
tionship
s
Owned
Shared
Earned
Paid
AUDIENCE
SPONSORSHIPS & BOARDS
Professional Theatre
Opera
Arts
Orchestras
Chambers of Commerce
ADVERTISING
Public Radio
National Newspapers
Regional Journals
Local Papers
Social Media Ads
Public Radio
National Newspapers
Regional Journals
Blogs
Local Papers
CHANNELSMEDIUM
YouTube
.com sites
YouTube
Mobile App
© Tunheim, 2014 All Rights Reserved
The adoption of of digital marketing is absolutely
critical to survival
“Industrial companies are
starting to catch up to
consumer brands in their use of
social media marketing, using
LinkedIn, Facebook and even
YouTube to reach buyers for
decidedly unsexy products
such as electrical
components, industrial
lubricants, generators and
contract manufacturing.”
-- Wall Street Journal
January 5, 2013
The adoption of social/digital by B2B manufacturers
68%
Source: Chief Marketer Magazine
Social channels drive new business conversion
Etratech: electronic design and manufacturing firm
+ President and board set aggressive sales goals
for 2012
+ Advertising too expensive and rarely worked
+ Reluctantly embraced social media
Etratech used social channels to break through
competitive clutter
Etratech invites its
website visitors to tour
their plant. This link is
almost always clicked
by prospective new
customers…
Etratech social business results
Closing deals:
Before: 6-8 months
Now: 6-8 weeks
Growth targets have increased, sell
times are faster and customer
comments have proven social
business channels are an important
part of marketing Etratech’s
manufacturing business.
Jan Feb Mar AprMa
yJun
Jul Aug
Ja
n
Fe
b
Four key trends that make the business case for developing
and deploying a social and digital strategy
Welcome to Digital Darwinism
The traditional sales model is broken
Proving Business Value is not enough
Owning Thought Leadership
If you are not the market leader,
you have to be the
thought leader.
Thought LeadershipThe Process to Building and Leveraging Thought Leadership Initiatives
Identify audience
Understand their issues
Develop unique ideas
Create content team
Deliberately engage
Measure impact
Improve
IDENTIFY DEVELOP
ENGAGE
MEASURE
EVALUATE
Identify the key purchasing
influencers
Go deep to understand customer
Know where they look for
answers
Build your thought leadership brand
Set your roster
Share your content – with
everyone:
Owned channels
Earned & paid media
Employees
Salespeople = SMEs
Track conversations
Tie it to sales
Evaluate
Adapt
Repeat
Commercial Banks 78% 94% 22%
Food: Consumer 73% 93% 33%
Insurance 65% 53% 20%
Retail 96% 91% 46%
Telecommunications 88% 82% 53%
Utilities 44% 73% 26%
23%4%4%
Source: UMass|Dartmouth , 2013
Big companies Get Excited About Social Media
Credit: DC Interactive
Sources:
Mayo Clinic
American Hospital Association
Journal of Medical Internet Research
PwC HRI Medical Consumer Survey
Optum Institute
Pew
Getting the green light on a digital rollout
is an amazing experience
This is the day you get the green light…
This is about
60 days later
Four Business Trends
that Make the Case for
Digital & Social
Deployment
Patrick Milan
Creative Destruction Officer
Tunheim
@pmilan