Global Marketing1 Confidential

Perspectives about Business: Opportunities in Social Media

Richard Binhammer, Director, Social Media and CommunityTrueMedia Social Media Workshop, August 2011

Global Marketing

Business and Technology

Rethink Relationships

Key enablers and strategies

go for a drive

Global Marketing3

A Revisionist and Simplistic Look at Evolution of Business Organizations and Marketing….

Global Marketing4

Business and Technology: aims for efficient organization of work through specialization of labor 1776, Adam Smith, Wealth of Nations

Global Marketing5

Business Management:

Getting people together to accomplish desired goals & objectives using available resources efficiently and effectively.

Global Marketing6

Bureaucracy:

a rational, efficient method of organization…hierarchical authority & functional specialization.

The Boss’ Colleague or

Corporate Competitor

The Boss

Direct Report, Specialty A

Direct Report, Specialty B

Direct ReportSpecialty C

Boss Assistant

Another Equal or Corporate Competitor

Global Marketing7

Marketing:

Evolved from production & efficiency models used in business to a selling orientation, where marketing deals with the needs, wants and demands of customers

Global Marketing

Tremendous Reach

Mass Markets

Customer Segments

Global Marketing9

Marketing and Business:

more efficient & productive…

All for you!

Global Marketing10

Creation of Iconic Brands

Global Marketing11

Business Success =

Dominance and Power

Global Marketing12

75 Year Difference in Business Life Expectancy since 1936

Source: Deloitte Report: John Hagel

Global MarketingSource: Mary Meeker, 2010 Internet Trends

Global Marketing14Source: Shanghai Web designers via Neville Hobson

Global Marketing

Global Conversations

Listen. Engage. Act

Global Marketing

A shift in who speaks for your brand

16

66%OF BRAND TOUCHPOINTS ARE NOW GENERATED BY CUSTOMERS

34%OF BLOGGERS POST OPINIONS ABOUT PRODUCTS

Global Marketing

Internet: Unlike other technologies, the Web was unpredictable; opened more opportunities to change perspectives anywhere it reached

17

Global Marketing18

Something is Happening.

Opportunities to dream? A dream for brands and business organizations

Global Marketing

Were markets really always relationships and conversations?

19

Global Marketing

If Markets are Conversations…• “Networked markets are beginning to self-

organize faster than the companies that have traditionally served them.

• Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations. Markets are conversations.

• Markets consist of human beings, not demographic sectors. Conversations among human beings sound human. They are conducted in a human voice, Whether delivering information, opinions, perspectives, dissenting arguments or humorous asides, the human voice is typically open, natural, uncontrived.”

20 Source: Cluetrain Manifesto

Global Marketing

…..But (Social Media) Conversations are Not Just Marketing• In both internetworked markets and among intranetworked

employees, people are speaking to each other in a powerful new way.

• These networked conversations are enabling powerful new forms of social organization and knowledge exchange to emerge.

• As a result, markets are getting smarter, more informed, more organized. (not siloed or segmented the way we normally think)

• Participation in a networked market changes people fundamentally.21 • Source: Cluetrain Manifesto

Global Marketing22Graphic thanks to @Gapingvoid

Love your product/service

Need help using it

Helping someone else

with your product

Conversations are

conversationsnot

Business segments

Where to find youShare an idea with you

Share with others how & why you have great products/services

…………….and more

Global Marketing23

Don’t Look, Listen or Touch

This is not a strategy that works.

Global Marketing

The world around us is changing

24

• Disintermediation between the customer and the expert is happening already

• Users spending more time across the web engaging – beyond company’s website

• Customers trust their peers more than anyone else

• Traditional methods are not scaling; Does Social Media?

companies that embrace this the fastest will win

Control is not as successful as influence

Global Marketing

Dell’s Social Media and Community Journey

25

First company tohit $1M a day inonline revenue

One of the first companies to launch online

support

First to sell complex

configurable items

Leader in online frictionless

commerce from order to delivery

Dell’s Direct & Online Heritage: Critical Enablers

One of the firstto launch online

discussion forums

Early adopter of social media

Global Marketing

Before the Social Web: Our Online Perspective

27

Dell.com Our Communities

Global Marketing28

Five years of experiments and experience

April 2006Tech support outreach to blogs

August 2006Blog outreach expands beyond tech support

December 2006Ratings and reviews on Dell.com

July 2006Direct2Dell launchedToday Direct2Dell exists in English, Spanish, Norwegian, Japanese and Chinese.

February 2006Michael Dell AsksWhy don’t we reach out and help bloggers with tech support issues?

January 2007StudioDell launchedDell’s video and podcast site, with helpful tips and tricks. Eventually expanding this into the YouTube channel making sharing easier.

February 2007IdeaStorm LaunchedA voting based site allowing customers and others to submit ideas for Dell.

June 2007Dell joins Twitter

Dell launchesEmployeeStormInternal Blogs Launched for Employees.

October 2007Michael Dell quote in Business WeekJeff Jarvis story quote, “These conversations are going to occur whether you like it or not. Do you want to be part of that or not? My argument is you absolutely do. You can learn from them. You can improve your reaction time. And you can be a better company by listening and being involved in that conversation.”

November 2007DellShares launchedThe first investor relations blog by a public company.

January 2008Dell aligns organization

for success

February 2008Twitter expanded

March 2008Accepted Solutions launched on Community Dell France begins Online Community Outreach

May 2008Dell Outlet achieves $0.5M in sales via TwitterCommunity team active on TwitterSmall Business blog launched

April 2008Inside IT launchedBlog focused on business customers, and Cloud Computing.

June 2008Channel blog launched

January 2009Dell Organizes in to4 customer focused business units

Spring 2009Some Members of Community and Conversations deployed within each of the new Dell Business units

June 2009$2M+ Salesvia Twitter

2009Dell TechCenter

June 2009Global Twitter revenues of $6.5 M

December 2009Huffington Post Blog

March 2010China Micro-Blogging

2006 2007 2008 2009 2010 2011

Altimeter recognizes Dell with “Open Leadership Award for Innovation and Execution”

(Oct.)

Dell Social Media and Community University launched/5,000 teammembers trained byend of year(Aug.)

DelllaunchesB2B pagesFacebook(Jun.)

Dell named #1 most social brand in ranking of 100 top brands

Social Media Listening Command Center

Global Marketing

Recognizing & Aligning a Powerful Ecosystem

Confidential29

Dell.com

External Communities Our Communities

Team Members

Global Marketing

Think of it as a tool, not a channel

Listen, Engage, Act. It’s at the heart of all strategies…

But How to Scale?

Global Marketing31 Confidential 04/07/2023

Listening to Be A Better Business, Across the Business

From 4,000 posts/day to 26,000 posts/day

Global Marketing

June 2005 – August 2006: Several Online Issues = Offline too

32

Global Marketing

Customers in need are critical opportunities

Social Media gives them voice & you opportunities

Global Marketing

@DellCares Across the Web Generates Positive Connections

34 Confidential

The Customer: Model Supplies Sales, Followers: 60,000+Issue/Resolution: The customer tweeted in regards to an LCD issue w/her PC on 4/18 to her friends. @DellCares identified the customer was in need of assistance and responded on 4/19, The issue was resolved on 4/29. MSD tweets her a thank you on 5/25, which she responds to immediately.

Customer voices frustration…

… Dell Listens, Engages and

Resolves issue…

… delighting the Customer whose

following retweets to 150k+ users

You're very welcome! @MichaelDell Thank you for the fantastic service - and for the reminder of things still to do! x0x 7:43 PM May 25th via web

Michael Dell jumps in…@ModelSupplies Thanks for contacting @dellcares and for positive feedback too. Thrilled to hear you are a happy Dell customer! 6:14 PM May 25th via web

Model Supplies raves

Global Marketing

Surprising Sometimes!

Where your fans are…

…and what they share

Special Thanks to BlaM4C and Marshalus

& more than 4000 customers before Dell was on Flickr

Global Marketing

New opportunities

Further our Direct connections with customers

36

Link Online:Behavioral Targeting and Deal Posting

Quality Interaction: No tricks or gimmicks

Relationship Marketing:

Global Marketing

Aggregation of Web Content, Rich Media

Global Marketing

Campaigns Scale, but are capital intensive.

You can not buy fans & followers for life …

Global Marketing

A Tool to be Leveraged Across the Fabric of a Company: different functions, uses and values

Product Development

• Feedback Loop• Early Warning• New Product

Ideation

Marketing

• Demand Forecast• Lead Generation• Message Reach

Online Presence

• Ratings & Reviews• Communities• Customer Stories

Sales• Leads• Collaboration• Thought

Leadership• Blogs

Customer Service

• Listening• Support Widgets• Outreach

Communication

• Rich Media• Brand Reputation• Influence• Reputation

Global Marketing

Customer Connected Employees are your company’s rock stars40

Global Marketing

Internal Social Networks

• Dell is using Chatter to increase cross-departmental team collaboration

• Over 90,000 Dell employees quickly and easily collaborate around documents and information like sales opportunities, team projects and campaigns

• Fosters relationships• A hybrid of Twitter, Facebook,

Sina, Ren-Ren, Orkut

41

Global Marketing

Empowering Employees: Social Media & Community University

Principles Policy

Governance

Training & tools

Global Marketing43

EmpoweringDell Team Members

Certified: 2357

Unique Team Members Trained: 5254

Global Marketing

Meanwhile …

Back at the Office

Global Marketing

They are asking about the social web infrastructure

Global Marketing

Starting Down a New Road, in a Vehicle, yet to be proven

Even today, the Infrastructure is evolving

46

Global Marketing47

Authority ExchangeCommunity

Global Marketing

Where is the ROI Business Value of Social Media

48

Global Marketing49

• Where customers are• Do they like/love you?• What are they saying • They recommend you• Share links with friends• Rating & Reviews• Publicly complaining• Going to your website

Primary social media focus Sentiment Listen, learn and improve

business Your fans deserve

appreciation Advocates deserve attention

too Inform your products Showing you care about

customer Purchase or deeper interestIdentify your business objective

Choose the metrics that help you measure & evolve

Global Marketing50

SM B2C & B2B

Global Marketing

Yes Virginia, there is ROI Business Value: It is measurable in many forms, there is not 1 number …

Global Marketing

Look across the entire customer lifecycle. It can be used everywhere …

• Insight: Social media improves Dell’s reach and share of voice

• Insight: Social Media provides high Business Value and contributes to demand gen vehicle

• Insight: SM keeps customers engaged, provides solutions and improves loyalty.

• Insight: Social media based support improves sentiment and correlates with higher revenue

• Insight: Established causality between social media activity and purchase

Awareness

Research and

Consideration

Demand / Lead Gen and Sales

Support

CLV (loyalty)Dell.com

External Communities

Our Communities

Global Marketing

Are Businesses Less Machine and more Networked Organism?

Human Organizations

53

Global Marketing

It’s about pragmatic approaches

Smart business fundamentals never

change

Global Marketing

Connected and Lit Up

55 Confidential

Global Marketing

you gonna miss the old car?

Thank You