becoming a social business

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  1. 1. Becoming a Social BusinessITSMA December 4, 2012Richard Margetic, Dell Director, Global Social Media
  2. 2. Our Journey to Becoming a Social BusinessDell saw Social Media as an opportunity to build and furthernurture customer relationships through listening to, andengaging with, customers in meaningful ways. Realization: Social was impacting many parts of the business Challenge: Establish a framework that could scale across thebusiness Solution: Define a platform-agnostic strategy, a governancemodel to manage, a communication system to educate /inform, an insights program to measure impact and a culturethat embraces itGlobal Marketing
  3. 3. More than six years of social media experienceFebruary 2006 March 2008June 2009DellMichael Dell asked February 2007Accepted SolutionsGlobal Twitter namedWhy dont we reach out and help revenues ofAltimeter IdeaStorm launched launched on Community recognized Dellthe No.bloggers with tech support issues?$6.5 M A voting based site allowing Dell France begins Onlinewith Open 1 most customers and others toCommunity Outreach submit ideas for Dell. May 2008Leadership Award socialDell Outlet achievedfor Innovation and brand ExecutionOctober 2007$0.5M in sales via TwitterMichael Dell quoted in Business MarchWeek2010December 2006 In response to Jeff Jarvis question aroundDellRatings and whether companies want to be part of theonline conversation: My argument is youjoinsreviews launchedJanuary 2009absolutely do. You can learn from them. You Sinaon can improve your reaction time. And you can Dell OrganizesJune 2009 Weibobe a better company by listening and beinginto fourinvolved in that conversation. $2M+ Salesin December 2010customervia Twitter China Social Mediafocused Listeningbusiness units Command Center launched20062007 2008 2009 201020112012 July 2006 Direct2Dell launched June 20072009 Social Media & Today Direct2Dell exists inDell joined Twitter June 2008Dell TechCenterCommunity English, Spanish, Norwegian,Channel University (SMaC U) Japanese and Chinese.EmployeeStormblogSpring 2009 launchedlaunched January5,000 team 6 Awards for thelaunchedMembers ofDecemberInternal Blogs Launched2008 members trained by Social Media Listeningfor Employees.Community 2009 Dell alignsend of yearCommand Centerand Huffington organizationConversations Post Blog January 2007for success StudioDell launcheddeployedB2B pages on November 2007within each of Dells video and podcast site, withFacebook helpful tips and tricks. Eventually DellShares the new DellAugust 2006expanding this into the YouTube launched Business unitsBlog outreachchannel making sharing easier.The first investorApril 2008expanded beyond relations blog by a Inside IT launched public company. Blog focused on business June 2010tech Support customers, and Cloud CAP Days launched Computing. In-person events for vocalonline customers 3 Global Marketing
  4. 4. RealizationGlobal Marketing
  5. 5. Marketingbefore itbecameformalIntimate,customerconnections5 Global Marketing
  6. 6. 2005-2006 Companies viewed customer support andmarketing as primarily one-way. Marketing by Dell, its competitors andbusiness in general involved traditionaluse of mass media. Thousands of conversations about Dell andrelated topics of interest4,000 online conversations Conversations rich with valuable insights per day Various parts of the business impacted regarding Dell Online traffic/time spent shifting to social No Dell voiceGlobal Marketing
  7. 7. ChallengeGlobal Marketing
  8. 8. Meeting the Opportunity Shifting from one way communications to conversations Undefined benefits from investing in social Belief in social media impact will only get us so far Incremental resources needed How do you justify shifting roles to social media management? Solve the complexity of coordination across multiple businessunits and regions Conversations were around products, customer issues, technologytrends, sales and moreGlobal Marketing
  9. 9. Solution 1. A platform-agnostic strategy 2. A governance model tomanage and scale 3. A communication system toeducate and inform 4. An insights program tomeasure impact 5. A culture that embraces itGlobal Marketing
  10. 10. Solution 1. A platform-agnostic strategy 2. A governance model tomanage and scale 3. A communication system toeducate and inform 4. An insights program tomeasure impact 5. A culture that embraces itGlobal Marketing
  11. 11. All social activities share the same roots Global Marketing
  12. 12. Smart business fundamentals never change12 ConfidentialGlobal Marketing
  13. 13. Social roots+ business fundamentals core social business strategyGlobal Marketing
  14. 14. Foundation of social strategy:Focus on Value Drivers Value to Customers Value For DellSocial connections meet variety of needs Social connections create potential for tangibleacross customer segments, and enable impact against Dells key value drivers customers to 1. Make meaningful Marketing Spend Brand awareness connections based on Efficiency Lead generation shared interests Net Promoter Score Unique visitorsTraffic Visits/page views 2. Express themselves Leaks in purchase Conversion Ratepath 3. Receive exclusive rewards Average orderand recognition Basket Sizevalue Customer Retention 4. Get advice, validation, and Lifetime Value Profitabilityassurance about decisions Support Cost Savings Sales and marketing 5. Solve a specific problem(their own or someone Customerelses) Insights to Drive Indirect R&D savings InnovationGlobal Marketing
  15. 15. Integrate where Customer & Business Value arerealized across all business functionsProduct Development MarketingOnline Presence Feedback Loop Demand Forecast Ratings & Reviews Early Warning Lead Generation Communities New Product Message Reach Customer StoriesIdeationSalesCustomer ServiceCommunication Collaboration Listening Rich Media Thought Leadership Support Widgets Brand Reputation Blogs Outreach Influence Reputation Global Marketing
  16. 16. Listening to Be A Better Business, across the Business16 Confidential Global Marketing3/21/2
  17. 17. IdeaStorm Purpose Our goal through IdeaStorm is to give our customer an avenue to share their ideas on Dell Products, Services and Operations. Statistics 60,000+ User Accounts 18,000+ Ideas 739,000+ Votes 97,000+ Comments 520+ ideas Implemented Value Revenue from IdeaStorm members is ~50% higher than non-members Purchase frequency is 33% higher Higher Lifetime Value17
  18. 18. Solution 1. A platform-agnostic strategy 2. A governance model tomanage and scale 3. A communication system toeducate and inform 4. An insights program tomeasure impact 5. A culture that embraces itGlobal Marketing
  19. 19. Governance: Facebook Reinvention turned a jungle into a tended garden 2008, a search for Dell on Governance reduced the Facebook returned 485number of official and non- results, including official Dell pages, deleting abandoned, off-brand,noise & bringing focus to unmonitored siteshigh priority Dell initiatives. Agreed upon governance model Governance process rolled out to all social To contain unbridled proliferation of sites media platforms that would harm the brand Processed ~1,000 social media requests to Consistent branddate, To stay ensure alignment Cross-segment core team established to ensureResults Taxonomy frameworkToday interlocks and alignment To know where any new site fits and Extended team exceeds 50 weekly improve user experiencemembers Standardized tools Agreed upon core social strategy To minimize launch churn, maximize Enables establishing presence in new efficiencies by leveraging BIC functionality platforms friction-free (Google+, Tumblr) Shared agency Embedded tracking To maximize spend, avoid churn and stay Ensures all accounts in compliance are alignedtracked effectively19Global Marketing
  20. 20. SMaC Governance ReportingSocial Media RequestsSocial Media Fans & Followers by Platform60 Pinterest5040 Slideshare30Consumer YouTube20LE10 Qzone 0SMBCorporate/Global LinkedIn Google+ SinaProcessed Launched Sunset DeclinedFeb-11 Apr-11 RenRenJun-11 Aug-11Oct-11 Dec-11Feb-12 Apr-12 Jun-12 Tencent WeiboAug-12946 711101103 Oct-12 TwitterCompliance Social Media Fans & Followers by Region128 Issues were reported105 Pages were taken down6,000,00023 are Pending verification5,000,0004,000,000NARC Report3,000,0002,000,000 Processed LaunchedSunset 6% 1,000,000 40% -54% NA APJ GlobalEMEA LATAM Series1 5,301,14,918,0 1,345,0742,274 449,144
  21. 21. Customer ExperienceSocial Outreach Team Formed March 2006Team begins by just listening and monitoring earned social.Tech support experts were then hand-selected for their techproblem-solving expertise andsuperior interpersonal skills.When pointed at owned social, ournegative sentiment in Facebookwas halved in the first two monthsTodayOn average, the team addresses3,000 posts a week in 11 languages 98% resolution rate 45% ranters to raversGlobal Marketing
  22. 22. Solution 1. A platform-agnostic strategy 2. A governance model tomanage and scale 3. A communication system toeducate and inform 4. An insights program tomeasure impact 5. A culture that embraces itGlobal Marketing
  23. 23. Educating Employees:Social Media & Community University PrinciplesPolicyProcessesTraining & toolsGlobal Marketing
  24. 24. SMaC U Today > 12,000 employees trained > 7,000 employees certified We train globally in 55+ countries Focus on regions where our largestmarketing, sales and product teams exist Launched a Training Ambassador program, where certifiedemployees may apply to teach on behalf of the University. SMaC Champions: Certified employees given a list of socialactivities that they can participate in. One is crowdsourcedtranslations of social media content. Global Marketing
  25. 25. Social Media Playbook D