Social Business, Culture and Branding

1. SMBME 24 - Now What?Back to Being Human,Social Culture, Caring & Branding July 31, 2011 @RobertCollins

2. …once again Business is becoming social

3. In the beginning – All business was social Satisfaction results in positive or negative word of mouth which makes a difference 3

4. Then business started scaling …but the social could not scale and made no difference anymore – so it disappeared from business 4

5. And companies started to develop real bad habits Interrupting people, targeting people, segmenting people – it felt like going to war with customers (& employees) 5

6. But then came the Internet and Social Media Blogs, wiki’s, discussion boards, tags, social networks – a massive platform of participation 6

7. And because humans are hardwired to be social The social reentered business and commerce with a vengeance – employees, customers could once again behave the way they’re hardwired to behave: humanly, tribally. 7

8. So to understand how to do business in a 2.0 world… You are better off understanding Human 1.0 – not as individuals, but as hyper-social creatures You do not need to understand the Web 2.0 technologies

9. The SAP Developer Network 9 Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to personal rewards The Results: Bullying behavior in the community New Incentive System: Point system leading to donation to good cause The Results: No more bullying in the community Web 2.0 or Human 1.0?

10. A look at some NIH + Duke Research Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

11. Let’s get a level deeper on the Human 1.0…

12. Why are social beings helping one another? Reciprocity = a Reflex

13. Why are people going out of their way to punish others? Humans have an innate sense of fairness = keeps reciprocal society working

14. How do we make decisions? Market Framework Social Framework

15. Why do people like to look like others? Because humans have mirror neurons

16. Why do we lie to market researchers? Because we lie to ourselves and others, and we tell people what we think they want to hear

17. Why is status so important (and why do we hoard it)? Because it used to get us a better mate – proceed with caution: status works both ways!

18. We are a herding species – self herding even

19. What are the important Human 1.0 Hyper-Social Traits Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters The role of fairness in assessing situations Social framework of evaluating things vs. market framework The importance of looking cool and mimicking others Herding and self-herding (early research shows that social behavior does not change when it scales) So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers. Barry Judge, CMO Best Buy http://www.cmotwo.com

20. How they think differently about their business Successful Hyper-Social Organizations Informed by Tribalization of Business Study: 2008-2010 – 1,000+ companies took the survey

21. Hyper-Social companies think differently Think tribe – not market segment We need to find groups of people who have something in common based on their behavior, not their market characteristics Think knowledge network – not information channel The most important conversations in communities happen in networks of people, not between your organization and the community. Think human-centricity – not company-centricity The human has to be at the center of everything you do, not the organization Think emergent messiness – not hierarchical fixed processes People will want to see responses to their suggestions, even if it does not fit your community goals – FAST “…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” - Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008

22. 22

23. 23 Today’s buying cycle: a social-powered continuous loop process Many more sources of information Can still become part of consideration set Tribes & Networks Based on source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

24. Mapping and Measuring the Value Generated Social Media RevenueGrowth Increasecurrentcustomervolume Increase volume withnewcustomers Increase Tenure of Customer Relationships OfferInnovativeProducts & Services Increase Breadth of Customer Relationships AcquireNewCustomers Product & Serviceoffering Barriers to switching Cross-Sell / Up-Sell Brandawareness Churnreduction Customerreach Measure Social is the ways you manage and measure other Business KPIs. 24

25. Any Questions? Robert Collins Partner, Human 1.0 e. Bob@CollinsDNA.com T. @RobertColllins Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 25

28. …In a Hyper-Social World 9 ways to think differently about your business

29. 1) Bring down that wall

30. Do like IBM – get rid of the firewall while protecting IP Green Enthusiasts CIO’s Business model tweak PR Customer support IP IP IP Product Idea …increase knowledge flows…and competitiveness

31. 2) Don’t build new walls

32. Don’t put a wall between company and people

33. Don’t put a wall between company and people

34. A New Artisan Workforce - Embrace what people want - …and give them access…it will increase passion & productivity!

35. …and get people commitment 3) Tear down silos

36. Business objectives of communities

37. Department managing community

38. # of people managing community

39. Establish Center for Excellence Budgets KPI’s

40. …between all the organization’s touch points 4) Fix the great divide

41. Your brand is only as good as the last transaction Fix the whole organization’s user interface with the donor/recipient: Fund raising Sales Customer Services Loyalty Programs Lead Generation Marketing Service Delivery etc… Tap into the passion of employees and volunteers to help one another across boundaries

42. …or don’t let history repeat itself 5) Don’t build what you built before

43. Move with caution – it’s not easy! We need Social graphs We need Social CRM

44. 44 The funnel is dead Source: McKinsey Quarterly http://www.mckinseyquarterly.com/The_consumer_decision_journey_2373

45. 6) Make Sure all CxO’s are Best Friends

46. Don’t just think technology 7) Think Culture

47. “We find ourselves in the oddest position – which is to tell the business units that this is not a technology issue but a people and process issue.” – CIO at a major pharmaceutical company Be Human

48. Culture – perhaps the most important Human 1.0 Characteristic Humans developed culture to deal with change We now use culture to adapt to changes that we create ourselves Harness culture to create lasting competitive advantages Where we used to deploy Technologies to impact social behavior, now we need to deploy Technologies to support social behaviors Senior IT Strategy Executive with a major system integrator

49. …not your Company’s Advocate 8) Be the Advocate for your Customers & Their Needs

50. How can you expect anyone to trust you if you cannot trust your employees & volunteers? 9) Establish trust as the New Currency