[slides] leveraging social identity, by altimeter group

Leveraging Social Identity

July 10, 2014Andrew Jones, AnalystCharlene Li, Founder and Analyst

Table of Contents

1. Why does this matter?

2. Social Identity

a. Definition

b. Use cases

c. Examples

3. Getting Started

This was once the scale of a customer relationship

Today it’s not so easy.

How do we build one-to-one relationships at scale?

The Dynamic Customer Journey

Marketing Sales Customer Service Innovation


Loyalty


Marketing Sales Customer Service InnovationLoyalty


Awareness Consideration Intent Purchase Support Loyalty Advocacy

Marketing Sales Customer Service InnovationLoyalty

Customer identity is unresolved

“One of the biggest gaps is, how do we know Bob Smith on Twitter and in CRM are the same?” - Kim Matlock, Senior Director of Digital Marketing and CRM, Hard Rock

Ads lack context

“A friend of mine gets Christian Mingle ads, even though he’s Jewish and married. That shouldn’t happen. His religion and marital status are available on Facebook.”

-Bill Piwonka, former VP Marketing Janrain

Social Identity – definition

The information about an individual available in social media, including:1. Profile data2. Ongoing social activity

Modern Marketing requires us to know customers in order to engage them with relevant messages and experiences

Customer data and behaviors have evolved, but so have marketers’ options

Social profiles contain demographics, contact, friends, interests, skills, and more

Ongoing activity includes life events, music listens, games played, places visited…

…Follows, Shares, Mentions,Retweets, Views, etc.

Social Identity Provides Multiple Benefits

Leverage Influencers

Identify Prospects

Reach Custom Audiences

Find Lookalike Audiences

Nurture Leads

Personalize Products

Gain Real-time Insight

Retain and Reactivate

Reward Loyalty

Tap Advocates

Liberty Mutual agents track events that can help build relationships or make sales

VinTank helps wineries connect with customers and prospects using check-ins & nearby posts

Purina won my affection with my own dog

Some tools allow users to create rules to identify new opportunities

Oracle SRM, which integratesdirectly with Eloqua

Some vendors not only help find leads, but score and nurture them

NextPrinciples integrates with CRMto track traditional leads in social too

Facebook’s Custom or Twitter’s Tailored Audiences enable (re)targeting of existing contacts

Image source: http://www.stream20.com/social-direct-response-knowing-your-roi-from-your-elbow/

Facebook’s Lookalike audiences is similar but finds new audiences with similar attributes

Image source: http://www.insidefacebook.com/2014/05/27/5-effective-facebook-ad-tools-for-small-businesses/

NFL.com personalizes website and emails using social profile data from social login

Sales and support reps can benefit from greater context about individual interactions with tools like Salesforce’s Social Key

Image source: http://blog.salesloft.com/what-is-social-key

AmEx delivers deals, content & experiences based on Facebook likes and interests

“Link, Like, Love”

Capturing & Integrating Social Identity

∙ Vendors leverage Social Identity to provide value in many different ways

∙ There’s value in integrating Social Identity for use across channel and departments

Capturing Social Identity

1. Direct Association a. Email searchb Paid matching

2. Social Profiles a. Contests, etc.b. Social login

3. Social Signals a. Explicit actionsb. Text analysis

4. Inference Aggregate analysis

SEM

Website content

Ads:display,

retargeting, affiliate

Email

SMS

Integrating Social Identity enables personalization across channels

• Profile• Friends• Reviews• Comments• Location• Shares• Views• Likes

Personalization promotes better relationships

“Research shows that personalization can deliver five to eight times the ROI on marketing spend, and lift sales 10% or more.” - McKinsey, HBR

“When asked to prioritize one capability that will be most important to their company’s marketing moving forward, personalization ranked highest.” - Adobe

Interscope Records uses Social Identity to understand customer interests and send more relevant emails


1. Match social profiles to email through social login



2. Capture social signals• Facebook Likes• Twitter Follows• Spotify Listens• Youtube Views



Social scores

Append to email database

2. Capture social signals• Facebook Likes• Twitter Follows• Spotify Listens• Youtube Views

Non-Targeted EmailUnique Open Rate:

• “Batch & Blast”• Content Heavy, 20+

Promoted Items

UMG’s Interscope Records customer email

7%

Targeted Twitter Followers of • Will.i.am• Britney Spears• Lil Wayne• Diddy

Interscope sees lift in open rates by targeting with social scores

Semi-targeted EmailUnique Open Rate:

Targeted Twitter Followers of • Will.i.am• Britney Spears• Lil Wayne• Diddy

Interscope sees lift in open rates by targeting with social scores

Semi-targeted EmailUnique Open Rate:

16%

Targeted by:• “The XX” Social Scores*• Great Gatsby Social Scores

Combining social scores for even greater relevance, open rates increase 10x

Targeted EmailUnique Open Rate:

*Note: for those unfamiliar, “The XX” is a band

Targeted by:• “The XX” Social Scores*• Great Gatsby Social Scores

Combining social scores for even greater relevance, open rates increase 10x

Targeted EmailUnique Open Rate:

*Note: for those unfamiliar, “The XX” is a band

66.7%

Getting Started• Start with your challenges and objectives—what

is the best approach and will you need help from a vendor?

• Do you have existing Social Identity data? Where is it, and how is it used?

• Do you have the right data? If not, would you need outside help in finding or collecting it?

• Is or will the data be integrated? How?

• Privacy: is there permission, trust, and transparency?

• What does relevance look like to your customers? Will investment be worth it?

Trust: “Can we” vs. “Should we”

Relevance & Diminishing Returns

“We talk a lot about 1:1 marketing, but there’s a law of diminishing returns. What is relevant? How unique do we need to be for an individual vs. a persona or segment?”

- Hayden Mugford, Director, Global 1:1 Marketing

We don’t need to know everything, but wouldn’t it be nice if customer relationships felt a little more like this again?

Thank You

Charlene [email protected]@charleneli

Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any specific product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.

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Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models.

Andrew [email protected]@andrewjns