Delivered at the TDWI Executive Summit, Las Vegas, Feb 2010. Discusses socila medial and its relationship to business intelligence. Copyright William Baker.
1. Social Intelligence: Analyzing Customer Behavior Using Social Media TDWI Executive Summit Tuesday, February 23, 2010 Bill Baker (billbak@billbak.com) CTO, G4 Analytics Advisor/Investor/Board Member, Foothold Technologies, Inovus Solar, Optify, Whitecloud Analytics
2. Sports Night 1998 – 1999 Are you sure Helsinki is in Finland? They didn’t have Wikipedia on their iPhones… 2
3. Social Media is Changing Everything 25% of search results for the world’s Top 20 brands link to user generated content1 78% of consumers trust peer recommendations2, only 14% trust advertising3 Plus all those Twitter and Facebook growth stats we’re always seeing in the press… 3 1 Turning Blogs and user-Generated Content Into Search Engine Results, Chris Aarons, Andru Edwards and Xavier Lanier 2July 2009 Nielsen Global Online Consumer Survey 3“Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007
4. Audience Poll How many here are on Facebook? LinkedIn? MySpace? Twitter? How many here blog? Comment on others’ blogs How many here read reviews on Amazon? Hotels.com? How many post reviews? How many read FlyerTalk? How many participate in MyStarbucksIdea? 4
5. So many BI applications depend on… Corporate Performance Management Churn analysis Product lifecycle Risk analysis Sales analysis Trade promotion optimization Workforce Planning Budgeting & Planning Customer retention Sales Forecasting Credit scoring Supply chain analytics … information about customer attitudes and intents. 5
10. Social Media Is… Consumer generated content A direct look at what consumers think and say A two-way communication medium A real-time laboratory for trying new ideas 10 Data mined from social media sources is THE data about customer attitudes and intents that we always wanted in Business Intelligence
12. Social Media Types(The Logo Parade) Social networks Blogs Micro-blogs Forums including idea sites Reviews Mainstream media “First party” vs. “Third party” 12 Social Media is Consumer Generated Media
13. Characteristics of Social Media Social media Transparent Inclusive Authentic Vibrant Consumer-generated Open Traditional marketing Controlled Organized Exclusive Product-driven On message Controlled Collaboration Communication 13
14. Applications of Social Media Generate awareness, drive viral and other marketing programs Engage with customers and analysts Provide customer support Identify product issues including service interruptions and out-of-stock situations Collaborate with customers and partners in idea generation and product improvement Monitor and enhance brand reputation 14
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16. What are the perceived characteristics of my competitors’ brands?
18. What are the opportunities to improve brand perception?15
19. Engage Track and analyze threaded discussions Coordinate responses across teams and geographies Distribute pre-approved message points Assign security levels for each team member Choose between central or distributed ownership Listen & Analyze Engage Integrate 16
20. Integrate Adopt social media and social media metrics into your mainstream business activities Sales Marketing Call center Product design and life cycle Listen & Analyze Engage Integrate 17
22. What Happens if People Say Bad Things? It’s going to happen regardless of your participation in social media Random ‘haters’ don’t aggregate into anything – the community values genuineness and accountability Engage honestly and thoughtfully to convert influential brand skeptics into brand advocates 19 Your engagement with the community plays out in public and influences the whole community, not just the person you engage with
23. Social Media KPIsWho is Influential? Activity Authors ranked on total number of posts and comments Pull Authors ranked on total number of other authors that comment on their posts Reach Authors ranked on total number of other authors to whom the rated author has posted comments Page rank / Alexa rank Measure of general viewership and ‘link juice’ Influence Weighted combination of normalized reach, pull and rank 20
24. Working at Scale You need software Thousands of conversations per day about popular brands Millions of posts/tweets/etc to review every day Some of the interesting KPIs require a view of the whole network Software options Home grown Commercial Freemium / Open source 21
25. Why Can’t I Just Use Google? Hundreds, if not more, searches Synonyms, antonyms Languages, countries Social media content is often multi-topic “My laptop rocks, but I really don’t like my_product” Duplicates, SPAM 22
27. Listening Platform Vendors Nielsen BuzzMetrics TNS Cymfony Visible Technologies Dow Jones Insight JD Power & Associates Biz360 Radian 6 Alterian (Techrigy SM2) Scout Labs Spinn3r Notes Listening platforms are in the early days Vendors coming, going, consolidating Several “Freemium” offerings Good chance the whole segment merges into one or more other segments (CRM, Marketing apps, etc.) * * The Forrester Wave, Listening Platforms 2009 Q1 24
28. Recommendations Don’t have a social media strategy, have a customer strategy w/ social media aspects Start with clear goals, match goals to social media types and tools Start slow, find out where the relevant conversations are occurring Use software to scale your efforts Consider first-party social media 25