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Developing a Social Strategy

For AmplifyJune 6-10, 2011

Jeremiah OwyangIndustry Analyst and Partner

© 2011 Altimeter Group

Agenda2

1. How the World Has Changed

2. 2011: The State of Social Business

3. Baseline Requirements Needed for Getting Ready Internally

4. Developing a Social Strategy by Objectives

5. Final Remarks


Agenda3





5. Final Remarks


4Image by ronni44052 used with Attribution as directed by Creative http://www.flickr.com/photos/ronnie44052/2730239605

How the World has Changed



Social media are easy to use web publishing

tools. As a result anybody can have a voice and

be found through simple tools like Google search.

This creates a power shift towards those who

participate – and those that don’t must catch up.


Over 50% of Facebook’s 600M active users log in everyday (February 2011)

Source: Facebook, February 2011

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There are 140 million tweets a day (March 2011)


The average user spends 6 hours a month on social networks, 66% more than last year (April 2010)

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Customer trust each other more than they trust brands

Now they can use these tools to connect with each other

Organizations who are not part of this conversation are not relevant

To regain power, organizations must use the same tools customers do

What it means9


Is social media a fad or a trend?

Exercise


Is it limited to youth only?

Exercise


Agenda12





5. Final Remarks


2011: Current State of Social Business


Image by Pieter Musterd used with Attribution as directed by Creative Commons http://www.flickr.com/photos/piet_musterd/1858568495


“Career Path of the Corporate Social Strategist”

Published November 2010

Download at: http://bit.ly/agreportcareerpath

Independent research report published under the principle of Open Research

We surveyed 140 global corporate social strategists14


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Most programs have existed less than 3 years (Oct 2010)


77% of programs are Novice or Intermediate16


Programs mostly report to Marketing or Corporate Communications

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

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Spending on 12 social business programs still nascent


41% of programs are reactive to requests20


ROI measurements are the top internal priority21


What’s the best way to determine a social media budget?

Exercise


Agenda23





5. Final Remarks


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Getting Ready Internally


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What you will learn:

5 steps to get ready internally.


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To be successful using social technologies,

companies must first prepare and align

internal roles, policies, processes and

education with their business objectives.

Social business is a profound change that

impacts all departments in the organization.


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Nestle’ lacked a Defense Strategy during crisis

Nestle’ was under attack by Greenpeace. No matter what, the deck was stacked against them. Lack of mature and trained staff, a process, nor a policy to enforce – exacerbated the situation.


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Southwest Airlines doesn’t recognize an Influencer Detractor

Southwest Airlines suffered from an attack after a celebrity had a bad customer experience. Had they had Social CRM in place, they may have been able to identify an influencer first.


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Fragmentation. Without central coordination, efforts will be fragmented and decentralized.

Lack of Efficiency. Costs increase as business units duplicate efforts and resources.

Lack of Accountability. Costs increase as business units deploy without proper “guardrails.”

Unable to Defend Brand. Without standard policies/processes, AAA will be less prepared for PR crises in social.

Inability to Scale. AAA will not be able to scale efforts to respond to increasing internal/external demands.

The opportunity costs of not getting coordinated


Disclosure/ethics policy: Company statement defining expectations

Social media policy: Clarity for stakeholders, and reduce risk for employees and company

Community policy: Guidelines for customers and employees

Privacy policy: To protect customers’ data

1. Policies30


Protect the company and community with external facing policies

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Walmart published a disclosure policy for its Elevenmoms program.

SeaWorld defines community expectations on its social media

properties, e.g. blog.


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Define expectations for associates with an internal Social Media Policy

Examples of Social Media Guidelines created by Intel and Cisco


Education:

• New forms of marketing and communication require new skills

• Inject fresh thinking and outsider perspectives

Sharing:

• What tools are in place to facilitate rapid sharing?

• How will different groups use these tools to learnfrom each other?

2. Education and Sharing33


Dell created a Social Media and Community (SMaC) program to train internal stakeholders

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Dell hosts internal unconferences, called SMaC, and created a social

media university. In 9 weeks, it trained 1500 employees face to face on topics like governance,

policy, and best practices.


Intel’s CoE empowers employees through education; has certified more than 1000 employees

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Intel created a “Digital IQ,” a global initiative to train all

employees to become active in social media.

“The Buzz,” a monthly newsletter for internal

Social Media Practitioners (SMPs)


Triage: Who should respond to what in near-real time?

Crises response plan: How will you respond as crises arise, even during off hours?

Insights intake: How will customer opinion be gathered and shared internally?

Support: How will social interactions be integrated with customer databases?

3. Processes36


Prepare for social media triage37

Can you add value?

Evaluate the

purpose

Respond in kind & share

Thank the person

Unhappy Customer?

DedicatedComplainer

?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

No Response

No

Yes

Take reasonable action to fix issue and let customer know action taken

Are the facts

correct?

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Yes

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message

Adapted from the US Air Force Blog Triage


Situation: A customer is having a bad customer service experience while reporting an ATM card

theft. He starts tweeting about it in real time:

“Someone withdrew my entire checking account balance. Yet the AMP customer service line was

rude responding, ‘Yeah right.’”

What should you do?

Exercise #A


Situation: The customer records the conversation, and uploads in real time to YouTube.

Within 2 hours, it starts to spread on Twitter, and in blogs.

What should you do?

Exercise #B


Situation: The mainstream press like the Sydney Morning Herald are asking for

quotes via Twitter.

You see this, what should you do?

Exercise #C


4. Organizational Model


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DECENTRALIZED

- Organic growth- Authentic- Experimental- Not coordinated- e.g. Sun


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- One department controls all efforts- Consistent- May not be as authentic- e.g. Ford

CENTRALIZED


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HUB AND SPOKE

- One hub sets rules and procedures- Business units undertake own efforts- Spreads widely around the org- Takes time- e.g. Red Cross


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MULTIPLE HUB AND SPOKE OR “DANDELION”

- Similar to Hub and Spoke but across multiple brands and units

- e.g. HP


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HOLISTIC OR “HONEYCOMB”

- Each employee is empowered- Unlike Organic, employees are organized- e.g. Dell, Zappos


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Programs mostly organize into Hub & Spoke and Centralized


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Key Roles: Social Strategist Community Managers

Supporting Roles: Executives HR/Associates Legal Support Product IT

5. Roles


Who is the Corporate Social Strategist?49

Scott MontyHead of Social Media

Ford Motor Co.@ScottMonty

Manish MehtaVP, Social Media and

Community, Dell@ManishatDell

Maria PoveromoDirector, Social Media,

Adobe@mariapoveromo


Success in their roles comes from being multi-disciplinary and risk-taking

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How do the skills and responsibilities of the role change as the program matures?

Exercise


Agenda52





5. Final Remarks


Social Marketing Strategy

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What you will learn:

How to bring it back to business.


Five goals define your strategy, but always start with Learn and Listen

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Using social technologies to listen and

learn from customers who are already

speaking.

Definition of Learning


Learn with free search tools57


Paid services provide monitoring58

From Salesforce Radian6

Other providers:

Buzzmetrics CymfonyDow Jones LithiumTechrigy/AlterianVisible Technologies


From the Red Cross SM Policy: They’re listening to every conversation59


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Dell launches a Social Media Command Center

Dell uses Radian6 to power its social media monitoring of over 22K customer conversations

on the social web.


Inside your organization, who should be responsible for Listening?

Exercise


Start with the free or inexpensive tools like Google search, Google blog search, Twitter search.

Use terms related to your products, executives, and competitors products.

Quickly advance by using brand monitoring software and services like Lithium, Salesforce Radian6, Visible Technologies, and Cymfony.

Don’t scope too tight or too wide. The savvy will focus on customer pain points –not just brand or product mentions.

Learning Best Practices62


Dialog with your community63


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Using social technologies to respond to or

initiate conversations in social channels

Definition of Dialog


Wells Fargo blogs offers more conversational dialog65

Wells Fargo’s blog has multiple contributors,

identified by name and photo. It strikes a friendly

tone and embraces comments with a prominent

comment field.


INGDirect initiates conversations around saving money, not products, on its blog and Facebook

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Red Cross responds to Haiti FAQs on blog, YouTube, and Facebook

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Dialog KPIs in action• Share of Voice:

• Audience Engagement:

• Conversation Reach:


How is Dialog different than traditional marketing?

Exercise


Have the right mindset: Once you start, customers are expecting you to maintain the conversation.

Like in real life, the same rules of conversation etiquette apply. Be a good listener, considerate, kind, and thoughtful.

As a best practice, first listen to the conversation then add value to existing discussions.

Rely on ongoing findings from brand monitoring to define the “conversation calendar.”

Dialog best practices70


Empower advocates for your brand71


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Recruiting an “unpaid army” of highly

engaged fans to promote your brand

through social technologies

Definition of Advocate


Visa capitalizes on World Cup fans desire to share videos73

Visa created its Go Fans YouTube channel to

connect with World Cup fans. Fans can view or

upload their own videos, or use its Match Planner

to create and share viewing schedules.


AmEx’s Members Project leverages cause marketing 74

AmEx’s charity project relies on Take Part as a platform, which

doesn’t leverage social media as well as Chase’s Community

Giving program. Voters do no have to Like its fan page to vote,

and sharing is not a primary feature.


Microsoft recognizes Most Valuable Professionals

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Advocacy KPIs in action• Active Advocates:

• Advocate Influence:

• Advocacy Impact:


What are the downsides of Advocacy programs?

Exercise


Don’t only think of advocacy in terms of short-term campaigns. Cultivate ongoing relationships with enthusiastic customers.

On social networks, leverage customers’ social graph through advocacy apps or promotions. See how vendors like Wildfire, Buddy Media, Zuberance, and Involvr help brands.

Put advocates front and center –e.g. acknowledge wherever possible to reward their loyalty – and invite them into the company

Advocacy best practices78


Help your customers support each other79


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Assisting your customers directly, or by

facilitating peer to peer support, via social

technologies

Definition of Support


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Wells Fargo responds to customers – within business hours

Demonstrating both a human voice and setting expectations of how they’ll help customers during office hours, Wells Fargo demonstrates best practices.


AmEx’s OPEN Forum connects small business owners with resources and networking

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OPEN Forum recruited 150 top experts to blog

on related topics, as well as provides a

“rolodex” where users can connect with other

small biz owners.


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Support kpis in action• Social Media Issue Resolution Rate:

• Resolution Time:

• Customer Satisfaction Score:


Who should provide social support in a company?

Exercise


Mindset: Customers complaints are opportunities –not threats.

Caution: As companies accelerate their social support efforts, responding to customers in social channels reinforces the behavior of complaining in public.

Fix the root issues, beyond the customer complaints.

Transform your support processes and go where customers are.

Know when to support customers –and when to shift to private channels.

Support best practices85


Innovate with customer feedback86


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Using social technologies to source and

collect customer feedback on current or

future products and services

Definition of Innovation


Charles Schwab uses private community to gather insight

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Charles Schwab launched a private community to gather insights from 350

Gen X non-clients. Schwab lowered account

minimums and made other changes as a

result.


TurboTax InnerCircle members submit and vote on ideas on Idea Exchange page

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With over 25K registered members, the InnerCircle community has resulted in over 50 implementations from over 100 ideas (as of

April 2011).


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Innovation kpis in action• Topic Trends:

• Sentiment Ratio:

• Idea Impact:


Do opinions sourced from social media represent the overall customer base?

Exercise


Develop internal processes to intake feedback and external policies to set customer expectations

Don’t pay contributors, instead provide them with recognition.

Be transparent about why some popular ideas aren’t implemented, so customers still feel like their voices matter.

Provide frequent updates to ideas implemented, or give general status updates of ideas in the works

Don’t be swayed by the masses – it’s okay to decline your top ideas.

Innovation best practices92


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5. Final Remarks


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Final Remarks



Adapt your mindset – there’s been a power shift.

Traditional go to market strategies do not apply, focus on dialog, transparency, real time, and authenticity .

Focus on business goals – and measure against them – not on technologies.

Empower business units with “guardrails”

Be pragmatic, get ready internally first.

Final remarks95


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Open Research: Use and share with attribution

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


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Jeremiah [email protected]

m

web-strategist.com/blog

Twitter: jowyang

THANK YOU

With assistance from Christine Tran, Sr. Researcher


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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage.

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

[email protected].

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