keynote: invest in scalable social business programs

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The World Changed


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An Open Leader Emerges


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Internal Storms Hinder Progress


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Compounding DemandsCompounding Demands


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What is the future?


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Path 1: Grounded to Social Media Help Desk

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Path 2: Achieve Escape Velocity

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Building Your Social Strategy:Prioritizing Efforts for Scale

Jeremiah OwyangIndustry Analyst and Partner

For Bazaarvoice Social Commerce SummitApril 5, 2011

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Open Research: Use and share with attribution

Available for download at www.altimetergroup.com/media-room


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Agenda

Grounded to Social Media Help Desk

Achieve Escape Velocity with Scalable

Programs

Path 1: Path 2:


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Path 1: Grounded to Social Media Help Desk

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Most programs have existed less than 3 years, with the average at just under 2 years old


41% of programs are reactive to requests14


Strategists work with limited budgets – averaging just $833,000 for all corporations

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The Situation

Customers become accustomed to “yelling in public”

Business units adopt “social media fever” and deploy on their own

The Problem

With limited resources, companies can’t scale 1:1

dialog Social efforts are uncoordinated and

fragmented

Relegated to the “Social Media Help Desk”16

As internal and external demands mount, companies become mostly reactive, relegating themselves to a “Social

Media Help Desk.”


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Companies who head towards

Path 1 will not scale


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Path 2: Achieve Escape Velocity



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Five Steps to Achieve Escape Velocity –

Stay out of the Social Media Help Desk


Formalize how your social business program will be organized


1. Formalize a Hub and Spoke model quickly21

Move from fragmentation and decentralization to coordination where business units can deploy own their

own. Tip: Governance > Process > Education will organically manifest as a Hub.


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You can never hire enough community managers or deploy and manage efforts.

Therefore, establish a “Center of Excellence” at the Hub to support and enable business units

Become an enabler for business units


2. Scale with peer-to-peer communities23

Dell’s support forum Best Buy community


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Best Buy leverages “super users” to answer 30% of all questions

Started in 2008, Best Buy’s community receives 2.5 million visitors a year,

generating 100,000 conversations. In addition, 25 super users spend 8-12 hours a week on the site answering about 30 percent of all the questions

asked.


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The myFICO community has served over 850K members since its inception

Launched in 2007, the myFICO community serving FICO’s consumer

division, has 300K registered users, with 10K new users registering every month. There are 20K posts a month and 400K

searches a month.


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Sephora extends Facebook conversations by launching its own community, Beauty Talk

“We had such a robust natural conversation on Facebook,” said Bridget Dolan, vice president of

interactive media. “We saw that women were asking each other questions -- they’d say, ‘What’s a great

waterproof mascara?’ And within an hour, they’d have about 17 really well-thought-out answers.”


Community platforms are a top social business priority for all maturity levels

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Purchase

3. Integrate socially relevant discussions at every phase of the customer lifecycle

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Awareness

Consideration

Comparison

Intent

Implement

Support

Renewal

Advocacy

Purchase


Corporate website integration will be the #1 priority

Source: Survey of Corporate Social Strategists, Altimeter Group, November 2010

We asked 140 Corporate Social Strategists: “What three external (go-to-market) social strategy objectives will you focus on most in 2011?”


New framework for 2011Evolution of the Social Corporate Website

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Windows 7 curates mentions of its new product on a dedicated page

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TurboTax aggregates support discussions within the product

While TurboTax customers use the product to do their

taxes, they can view support discussions within

the product.


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TripAdvisor visitors view friend reviews through Facebook Instant Personalization

TripAdvisor launched Facebook’s Instant

Personalization feature in December 2010, offering

friend ratings, reviews, and travel history.


4. Formalize a customer advocacy program34

Walmart original recruited 11 “mommy bloggers” for

its Eleven program.

Microsoft selects MVPS annually.


Fiskars’ “Fiskateer” moms lead a crafting brigade

Four women are selected as “Fiskateers” – to blog about crafts and “spread the Fiskars love.” The

program added an online community, 50 “Certified Fiskars Demonstrators,”


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Ford mobilized 100 “Agents for the Fiesta Movement

Ford chose 100 digital influencers, from 4000

applicants, to test drive their new Fiesta for 6-months.

Agents were required to post at least one video per month

and content was aggregated in real time at

fiestamovement.com.


Approx. 100 SAP mentors are nominated by the community and selected by internal team.

Benefits: SAP events, press/analyst briefings, meetings with executives, private forum and wiki, technical resources, blog

Duration: 1 year

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SAP Mentors


Intermediate and Advanced programs spend 50K-60K on influencer programs

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Social Media Management Systems (SMMS) vendors include CoTweet, (left), HootSuite, Sprinklr, Objective

Marketer, Expion, Seesmic, Awareness, and SpredFast (right), see full list

5. Streamline workflow with SMMS39

http://www.web-strategist.com/blog/2010/03/19/list-of-social-media-management-systems-smms/


Corporations Struggle to Manage Hundreds and Thousands of Accounts

Kenneth Cole and Chrysler Debacles Prove Need for Parental Controls

Expect Regulatory Industries to Require This Safeguard System

Direct/Email Marketers Want a Piece of Social Marketing to Blast in New Channels

Agencies Know SMMS Provides Client Lock-in and Recurring

A Complementary Toolset for Social Platforms, Social Commerce, Brand Monitoring Vendors, Marketing Automation

Why Social Media Management Systems?40


SMMS investments are low across all companies41


1. Get ready internally, focus on governance, process, then education to emerge in the center of excellence.

2. Remember 1:1 doesn’t scale, leverage the crowd for first response, then interact in escalations.

3. Integrate social to increase relevancy and reduce costs on creating content.

4. Standardize social media management tools now so data can be aggregated.

5. Remember the future is more than social marketing: It cascades to support, product innovation, then supply chain.

Closing Thoughts on Priorities42

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Jeremiah [email protected]

m

web-strategist.com/blog

Twitter: jowyang

Q&A

Research team includes significant contributions from Christine Tran, and Charlene Li, Altimeter Group


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Achieve Escape Velocity


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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage. We have four areas of focus:

Leadership and Management, Customer Strategy,

Enterprise Strategy, and Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

ABOUT US

http://www.altimetergroup.com/

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