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Presentation at Seminarium Peru on 15 November 2012 by Charlene Li in Lima. Two presentations were given. Speech #1: Creating A Successful Social Business Marketing Strategy With almost a billion members, Facebook's growth and stature is representative of the maturing social media landscape. Social technologies are no longer a bright shiny object, instead representing valuable relationships that require a coherent strategy and disciplined execution. This session will make a case that social technologies should be a mainstay of your marketing program rather than a second cousin of interactive marketing. We'll look at the implications of this priority shift, using case studies from companies who are making changes to their overall business and marketing programs. We'll also go through a checklist of the actions you'll need to prioritize to be successful. Speech #2: Title: Marketing In The Era Of Social Technologies The excitement around social media often centers on the technologies -- Facebook, blogs, Twitter, etc. etc. But this is the wrong approach. Rather than think about crafting a strategy around social technologies, leaders should be pondering how they can use social technologies to support and strengthen customer relationships. For many, Groundswell was the book that broke down barriers to accepting social technologies as an opportunity to make their businesses better. Open Leadership picks up where Groundswell left off, showing leaders how to open up business and create a culture that will make social media adoption–and on a greater level, adoption of a social business model–possible and successful. We'll be looking at the art -- and the science -- of how to tap into the power of customers and employees, including examples of what organizations and leaders are successfully doing today, as well as how to get your organization started.

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    slide1

    1

    Creating A Successful Social

    Business Marketing Strategy

    15 November 2012

    Charlene Li

    @charleneli

    slide2

    2

    © 2012 Altimeter Group

    slide3

    3

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide4

    4

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    social business is about relationships

    Social Business is

    ABOUT RELATIONSHIPS

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    strategy

    STRATEGY

    INTEGRATION

    FUTURE

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide7

    7

    Elements of a Coherent Social Strategy

    Understanding

    Customers

    Business Goal

    Alignment

    Long-term Vision

    Strategy Roadmap

    Organization &

    Governance

    Resources, People

    and Skills

    Risk Management

    © 2012 Altimeter Group

    1 understand customers map relationships

    #1 Understand Customers: Map Relationships throughout the

    Dynamic Customer Journey

    © 2012 Altimeter Group

    slide9

    9

    #2 Align Social with Key Strategic Goals

    Examine your 2012

    & 2013 goals

    Pick ones where

    social will have

    significant impact

    Then double down

    © 2012 Altimeter Group

    slide10

    10

    Common Business Goals

    © 2012 Altimeter Group

    slide11

    11

    #3 Create A Strategic Social Business Vision

    A short, engaging, inspiring

    statement of what your ideal

    customer relationship will

    look like in the future

    © 2012 Altimeter Group

    slide12

    12

    Vision Statements

    Ford’s Social Strategy Vision: To humanize the

    company by connecting constituents with Ford

    employees and with each other when possible,

    providing value in the process.

    © 2012 Altimeter Group

    slide13

    13

    #4 Strategic framework to guide strategy

    • Learn: What can be learned

    from customers and community

    Dialog

    • Dialog: The nature of our

    interactions with customers

    • Support: How to provide

    support via social channels

    Support

    Learn

    • Advocate: How to build

    advocacy among customers

    and community

    Advocate

    Innovate

    • Innovate: Using customer and

    community to drive innovation

    © 2012 Altimeter Group

    analyze initiatives to identify long term gaps

    Analyze initiatives to identify long-term gaps in

    readiness, as well as immediate opportunities

    14

    5.0

    High Value, Poor Capability

    High Value, Highly Capable

    Immediate

    opportunities

    identified for short-

    term roadmap

    execution

    Gaps identified in

    organizational

    readiness to plan

    long-term

    4.0

    Overall Program Value

    3.0

    Low Value, Poor Capability

    Low Value, Highly Capable

    Track for changes

    in value and

    organizational

    readiness over time

    Track for changes

    in value over time

    2.0

    0.0

    0.0

    2.0

    3.0

    4.0

    5.0

    Organization Capability (Readiness)

    © 2012 Altimeter Group

    slide15

    15

    Prioritize Initiatives by Value Created and

    Capabilities in Place to Execute

    Value of Initiatives vs. Capability to Execute

    5.00

    Support 1

    Dialog 1

    Learn 1

    Support 2

    Innovate 2

    Innovate 1

    Advocate 2

    Advocate 1

    4.00

    Support 3

    Support 5

    Learn

    Dialog

    Support

    Advocate

    Innovate

    Innovate 2

    Advocate 3

    Support 6

    Learn 2

    Innovate 3

    Support 4

    Overall Initiative Value

    Advocate 5

    Advocate 4

    Dialog 2

    Learn 3

    3.00

    Support 7

    Dialog 3

    Dialog 6

    Dialog 4

    Advocate 6

    Support 8

    Learn 4

    Dialog 5

    2.00

    1.00

    0.00

    0.00

    0.50

    1.00

    1.50

    2.00

    2.50

    3.00

    3.50

    4.00

    4.50

    5.00

    Organizational Capability (Readiness)

    © 2012 Altimeter Group

    example social business initiatives organized

    Example: Social Business Initiatives, organized

    by Goals into a 3 Year Roadmap

    16

    Now – 6

    months

    6-12

    months

    12-18

    months

    18-24

    months

    24-30

    months

    30-36

    months

    Category

    Create greater loyalty to drive sales

    Advocate Initiative

    Support

    Initiative

    Advocate Initiative

    Advocate Initiative

    Advocate Initiative

    Increase share in SMB market

    Learn

    Initiative

    Dialog

    Initiative

    Dialog

    Initiative

    Advocate Initiative

    Create four new products

    Innovate

    Initiative

    Innovate

    Initiative

    Learn

    Initiative

    Reduce customer service costs

    Learn

    Initiative

    Dialog

    Initiative

    Support

    Initiative

    Support

    Initiative

    Support

    Initiative

    Initiative

    © 2012 Altimeter Group

    slide17

    17

    #5 Governance and Organization

    © 2012 Altimeter Group

    sample 3 year organizational evolution

    Sample 3 Year Organizational Evolution

    2012

    2013

    2014

    2015

    Decentralized

    Centralized

    Hub & Spoke

    Evolve to Multiple

    Hub & Spoke

    18

    © 2012 Altimeter Group

    need to define role of the center of excellence

    Need to define role of the Center of Excellence

    within the context of existing departments

    19

    Marketing

    Executive

    PR

    CoE

    Operations

    Dot.com

    CRM

    SEO

    © 2012 Altimeter Group

    slide20

    20

    Example: Governance for Programs

    Launch

    &

    Monitor

    Initiate &

    Review

    Develop

    Program

    Educate

    BU develops the

    program (R)

    BU launches the

    program (R)

    CoE reviews

    against guidelines

    (A)

    BU decides it needs

    program (R)

    CoE monitors &

    measures for

    impact, suggests

    improvements (C)

    CoE checks if

    minimum

    requirements are

    met (A)

    CoE provides

    education if

    needed (C)

    CoE provides

    education on

    guidelines (R)

    CoE provides

    education if

    needed (C)

    Legal informed

    about the program

    (I)

    © 2012 Altimeter Group

    slide21

    21

    #6 Risk Management

    © 2012 Altimeter Group

    slide22

    22

    3

    #7 People and Skills Require Training

    Social

    Strategists

    Executives

    Marketing/P

    R Pros

    Employees

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    social media training is about developing

    Social media training is about

    developing judgment -- and the confidence to

    use it

    What you

    should do

    What you

    shouldn‘t do

    Judgment is needed in between

    © 2012 Altimeter Group

    slide24

    24

    Technology Selection Comes LAST

    © 2012 Altimeter Group

    slide25

    25

    The Social Business Strategy Maturity Stages

    6.

    Holistic

    5.

    Strategic

    4.

    Formalized

    3.

    Engagement

    2.

    Presence

    1.

    Planning

    © 2012 Altimeter Group

    strategy 1

    STRATEGY

    INTEGRATION

    FUTURE

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    develop a relationship throughout the dynamic

    Develop a Relationship throughout the

    Dynamic Customer Journey

    © 2012 Altimeter Group

    slide34

    34

    How Intel paid Influencers to ignite earned, and

    drive traffic back to owned

    121

    Pieces of content created by

    influencers

    24

    Influencers commissioned

    to create content

    1.1m

    Social interactions

    9,314

    Average actions per

    piece of content

    The company paid influencers

    to share content

    Across their

    networks

    © 2012 Altimeter Group

    © 2012 Altimeter Group

    slide35

    35

    Intel‘s iQ Social Publishing an industry first for

    integrated media curation

    The iQ experience, while still in beta, is comprised

    around social algorithms that curate content shared by

    Intel employees as well as owned and industry content.

    It is then filtered through a touch design based on the

    insights generated through all data in aggregate.

    © 2012 Altimeter Group

    slide36

    36

    Use analytics to accurately reflect the Dynamic

    Customer Journey

    Dynamic Attribution Model

    Traditional Attribution

    Model

    © 2012 Altimeter Group

    slide37

    37

    Intel among the first to reorganize… merging

    social media team with global media team

    “Why does this make sense? I found we were having similar

    conversations across teams. For the past several years, I have

    been encouraging every opportunity for them to work as one,

    sharing information and insights — driving cross media

    opportunities with our partners and thinking about a new world

    where the idea of “paid” or transactional media dissolves.”

    © 2012 Altimeter Group

    slide38

    38

    Digital Paid, Owned, and Earned media

    Corporate website

    Display, banner ads

    Microsites

    Corporate blog

    Sponsored posts, ads

    PPC ads

    Pay per post blogging

    © 2012 Altimeter Group

    slide39

    39

    Visualizing Paid, Owned, and Earned

    Paid

    Owned

    Earned

    Requires media buy

    Owned or controlled

    but does not require

    media buy

    User-generated content

    surrounding brand

    © 2012 Altimeter Group

    slide40

    40

    Investment in Earned and Owned increases in 2012

    Source: Society of Digital Agencies (SoDA) via eMarketer, 2012

    © 2012 Altimeter Group

    strategy 2

    STRATEGY

    INTEGRATION

    FUTURE

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide42

    42

    My smartphone isn‘t very smart

    Who do I talk with most

    Respond to quickly

    Or ignore completely

    Prioritize my

    contacts based

    on behavior

    Add travel time

    based on my

    locations

    © 2012 Altimeter Group

    in the internet of things data is the new currency

    In the internet of things, data is the new currency

    Ubiquitous sensors

    Real-time algorithms

    Ubiquitous experiences

    © 2012 Altimeter Group

    slide44

    44

    Ubiquitous sensors collect data everywhere

    ―We are not going to

    design anything

    fragmented — it has

    to be integrated.‖

    © 2012 Altimeter Group

    smart pajamas is just one of many wearable sensor

    ‗Smart Pajamas‘ is just one of many wearable

    sensor use cases

    © 2012 Altimeter Group

    slide46

    46

    Detect and understand motions – and emotions

    © 2012 Altimeter Group

    slide47

    47

    Google‘s Car is the future, but lower insurance rates

    exist today

    © 2012 Altimeter Group

    slide48

    48

    Data and Insight Will Be Everywhere And

    Autonomous

    © 2012 Altimeter Group

    slide49

    49

    What do you really know about your customers?

    25-55 years old, married, kids, working,

    graduate degree, reads Real Simple & Wired

    © 2012 Altimeter Group

    slide50

    50

    What would you do with a Watson

    in your pocket?

    ―By the end of this decade, the

    equivalent of Watson will fit in our

    pocket.‖ – Dr. John Kelly

    © 2012 Altimeter Group

    slide51

    51

    © 2012 Altimeter Group

    social business is about relationships 1

    Social Business is

    ABOUT RELATIONSHIPS

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    2012 altimeter group 2012 altimeter group

    © 2012 Altimeter Group

    © 2012 Altimeter Group

    slide54

    54

    Marketing in The Era of

    Social Technologies

    15 November 2012

    Charlene Li

    @charleneli

    social business is about relationships 2

    Social Business is

    ABOUT RELATIONSHIPS

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    slide56

    56

    Peru is in the top ten most engaged markets

    Source: ComScore Media Matrix, October 2011

    © 2012 Altimeter Group

    initiatives

    INITIATIVES

    ORGANIZATION

    PREPARATION

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide59

    59

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide60

    60

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide61

    61

    Definition of Learn

    Using social technologies to listen and

    learn and discover what customers and

    prospects are already saying.

    © 2012 Altimeter Group

    slide62

    62

    Track brand mentions with basic tools

    What would happen

    if every employee

    could learn from

    customers?

    © 2012 Altimeter Group

    slide63

    63

    Paid services provide monitoring

    Other providers:

    Attensity

    Converseon

    Crimson Hexagon

    Lithium

    NetBase

    Networked Insights

    NM Insite

    Topsy

    Simply Measured

    Sysomos

    Visible Technologies

    And many others

    From Salesforce Radian6

    © 2012 Altimeter Group

    slide64

    64

    Radian6 powers Dell‘s Social Media Listening

    Command Center

    Dell uses Salesforce

    Radian6 to power its

    social media

    monitoring of over 25K

    customer

    conversations on the

    social web.

    © 2012 Altimeter Group

    slide65

    65

    Centralized hubs can be basic but effective

    NVIDIA set up a Social

    Media Command

    Center with a few

    monitors

    Courtesy Nvidia

    © 2012 Altimeter Group

    slide66

    66

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide67

    67

    Definition of Dialog

    Using social technologies to initiate

    or respond to conversations

    in social channels

    © 2012 Altimeter Group

    slide68

    68

    Engage in conversations

    © 2012 Altimeter Group

    slide69

    69

    Spain Tourism used multiple channels to

    encourage dialog and sharing

    © 2012 Altimeter Group

    slide70

    70

    Have continuous, not episodic, dialog

    Boeing launched this blog as

    ―an experiment‖ in 2005.

    Randy Tinseth, VP of

    Marketing, posts about the

    company and its planes in a

    conversational and

    personal manner.

    © 2012 Altimeter Group

    slide71

    71

    Challenge: Create an authentic, local neighborhood

    experience when you have over 2000 locations

    © 2012 Altimeter Group

    slide72

    72

    Applebee‘s supports 7000 employees in 1K

    locations to monitor and respond in social media

    Source: Expion, Disclosure: An Altimeter client

    © 2012 Altimeter Group

    slide73

    73

    Implementation from corporate to local: How

    Farmers can transmit knowledge to the local level

    Applebees social strategist trained

    in-person on tool, developed

    strategy with insights

    Corporate

    Strategist trains entire field

    marketing team (responsible for

    company and franchise markets)

    Regional

    Corporate holds 90 min training

    sessions in regional meetings for

    all local restaurant managers

    Local

    © 2012 Altimeter Group

    slide74

    74

    What it looks like: National brand engaging

    locally

    © 2012 Altimeter Group

    slide75

    75

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide76

    76

    Definition of Support

    Assisting your customers directly, or by

    facilitating peer-to-peer support, via social

    technologies

    © 2012 Altimeter Group

    slide77

    77

    Vodafone Italy and Spain take separate, effective approaches to

    online support

    © 2012 Altimeter Group

    slide78

    78

    Metro Madrid gives real time route

    updates, is responsive to customer

    feedback

    © 2012 Altimeter Group

    slide79

    79

    GiffGaff mobile customers rewarded for support

    activities through payback system

    GiffGaff, a small UK-based mobile

    virtual network operator with only

    14 employees, has no call center.

    Instead, the community receives

    pre-pay credits and badges for

    contributions. The community

    answers 50% of customer

    questions. The average response

    time is 3 minutes.

    © 2012 Altimeter Group

    slide80

    80

    SolarWinds‘ customers self-support in its

    Thwack community

    Thwack was designed as a

    strategic asset from the start

    © 2012 Altimeter Group

    slide81

    81

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide82

    82

    Definition of Advocate

    Recruiting an ―unpaid army‖ of highly

    engaged fans to promote your brand

    through social technologies

    © 2012 Altimeter Group

    slide83

    83

    5-Phase Approach:

    Formalizing an Advocacy Program

    Phase 1:

    Get Ready

    Internally

    Phase 2:

    Identify

    Advocates

    Phase 3:

    Build

    Relationships

    Phase 4:

    Amplify

    Voices

    Phase 5:

    Foster

    Growth

    © 2012 Altimeter Group

    slide84

    84

    Get Ready Internally: This is a long-term program

    Microsoft‘s 4,000 strong MVP

    program sees them as long-

    term business partners.

    © 2012 Altimeter Group

    slide85

    85

    2 Staff

    Ratio: 1:100

    Sample: Program Size

    Ratio of Dedicated Staff to # of Advocates

    200

    Scale in efficacy as

    program matures, due

    to specialized and more

    efficient staff; optimized

    processes; as well as

    the types of programs

    which are initiated.

    150

    1.5 Staff

    Ratio: 1:50

    # of Advocates

    100

    200

    .75 Staff

    Ratio: 1:33

    50

    75

    25

    0

    Year 1

    Year 2

    Year 3

    #socialadvocate

    © 2012 Altimeter Group

    slide86

    86

    Sample: Advocate Contributions

    1. Term length: 1 year

    2. Post blog badge

    3. Participate in private advocate community – X times

    per month TBD

    4. Post original blog content – X times per quarter TBD

    5. Participate in existing communities, e.g. answering

    support questions – X times per quarter TBD

    6. Provide customer experience feedback and

    advocacy program feedback – X times per quarter

    TBD, or on as needed basis

    #socialadvocate

    © 2012 Altimeter Group

    slide87

    87

    Sample: Advocate Benefits

    Recognition

    Access

    Community

    Schwag

    1 consumer

    events per

    year

    Featured in

    campaigns

    Private

    community

    Monthly gift

    basket

    Content

    aggregation

    on website

    1 pre-

    briefing per

    year

    Dedicated

    community

    manager

    National

    events case

    by case

    Blog badge

    #socialadvocate

    © 2012 Altimeter Group

    slide88

    88

    Yelp‘s Elite program uses a public blog to

    showcase get-togethers and recruit

    © 2012 Altimeter Group

    slide89

    89

    Five Categories of Social Business Initiatives

    Dialog

    Support

    Learn

    Advocate

    Innovate

    © 2012 Altimeter Group

    slide90

    90

    Definition of Innovate

    Using social technologies to source and

    collect customer feedback on current or

    future products and services

    © 2012 Altimeter Group

    slide91

    91

    Reviews provide rich data on how

    to improve

    © 2012 Altimeter Group

    slide92

    92

    Danish bank ask for help to improve

    mobile banking on Facebook

    © 2012 Altimeter Group

    slide93

    93

    Starbucks involves 50 people around the

    organization in innovation

    Tens of thousands of customers

    have submitted, commented,

    and voted on ideas at My

    Starbucks Idea. As of March

    2012, more than 200 have been

    implemented.

    © 2012 Altimeter Group

    strategy 3

    STRATEGY

    ORGANIZATION

    PREPARATION

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide95

    95

    Meeting the needs of Dynamic Customers

    requires Adaptive Organizations

    Rigid Organizations

    Adaptive Organizations

    © 2012 Altimeter Group

    slide96

    96

    Marketing extends to all parts of the organization

    Sales

    Service

    Executives

    Marketing

    Product

    © 2012 Altimeter Group

    slide97

    97

    Culture and Leadership are the lynchpins

    of social media success

    Authenticity

    Transparency

    © 2012 Altimeter Group

    slide98

    98

    Build Trust Before A Crisis Hits

    © 2012 Altimeter Group

    slide99

    99

    FedEx‘s Response: Sincere but didn‘t

    resonate

    © 2012 Altimeter Group

    have the courage to take the leap into

    Have the Courage

    To Take the Leap

    Into Relationships

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    develop the ability to give up the need

    Develop the ability

    to give up the need

    to be in control

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide102

    102

    Open Leadership

    Having the confidence

    and humility to give up

    the need to be in control,

    while inspiring

    commitment from people

    to accomplish goals

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide103

    103

    Leaderships means having followers

    ―Leadership is a relationship between those who

    aspire to lead and those who choose to follow.‖

    - From ―The Leadership Challenge‖

    © 2012 Altimeter Group

    redefine what it means to be a leader

    Redefine what it means to be a leader

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    you can imagine the chatterati creating as much

    “You can imagine the Chatterati creating as

    much value as an SVP in the organization by

    sharing their institutional knowledge and

    expertise - and we should look at

    compensation structures with that in mind.”

    - Marc Benioff, CEO of Salesforce.com

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    strategy 4

    STRATEGY

    ORGANIZATION

    PREPARATION

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide107

    107

    #1 Prepare your Organization for Social Business

    © 2012 Altimeter Group

    slide108

    108

    Assess Your Readiness and Capabilities

    © 2012 Altimeter Group

    slide109

    109

    #2 Ask the Right Questions about Value

    “We tend to overvalue the things we can

    measure, and undervalue the things we

    cannot.”

    - John Hayes, CMO of American Express

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide110

    110

    #3 Create a Culture of Sharing

    © 2012 Altimeter Group

    slide111

    111

    #4 Discipline and process are crucial

    Source: ―H&R Block‘s Response Process‖ David Armano, Edelman 2010

    © 2012 Altimeter Group

    slide112

    112

    #5 Master the Art of Failure

    No relationships are perfect

    Google‘s mantra:

    “Fail fast, fail smart”

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    slide113

    113

    © 2012 Altimeter Group

    © 2011 Altimeter Group

    social business is about relationships 3

    Social Business is

    ABOUT RELATIONSHIPS

    © 2012 Altimeter Group

    © 2010 Altimeter Group

    2012 altimeter group 2012 altimeter group 1

    © 2012 Altimeter Group

    © 2012 Altimeter Group

    slide116

    116

    #2 Ask the Right Questions about Value

    “We tend to overvalue the things we can

    measure, and undervalue the things we

    cannot.”

    - John Hayes, CMO of American Express

    © 2012 Altimeter Group

    © 2011 Altimeter Group