Presentation by Charlene Li on 31 May 2011 for HSM Italia in Milan, Italy

1. Creating A Coherent Social Media Strategy 1 Charlene Li Altimeter Group 2011 May 30 Twitter: @charleneli Email: charlene@altimetergroup.com

2. 2

3. It’s time to move past experiments 3

4. It’s about RELATIONSHIPS © 2011 Altimeter Group

5. 5 Agenda Strategy Lead Prepare

6. 6 Agenda Strategy Lead Prepare

7. Strategy Process Stages 7

9. Level of strategy (corporate, biz unit, brand)

10. Identify key metrics

12. Objectives differ by level 10

13. Ask the Right Questions about Value 11 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

14. Use appropriate metrics at each level 12 Business metrics: revenue, CSAT, reputation. Social media analytics: Insights, share of voice, resonance, WOM. Engagement metrics: fans, followers, clicks.

16. Mindset

17. Roles

18. Stakeholders

19. Monitoring

20. Reporting

21. Customer Profile

22. Market Analysis

23. Processes

24. Organizational Model

26. Benchmarking Social Readiness (After) 15 April 2010

29. Define Your Strategy With Objectives 18

31. Expertise

33. 21 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

34. Track brand mentions with basic tools 22 What would happen if every employee could learn from customers?

35. Integrate monitoring with workflow 23 Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech. From Radian 6, to be acquired by Salesforce.com

36. Be sure to track the actual conversations, not just the tweets 24 @JaimieH is a top diabetics advisor who was talking with an insulin pump maker

37. How KLM listened and surprised flyers 25

38. Go beyond basic monitoring to analytics 26 Make course corrections nearly real-time. Use predictive analytics to anticipate demand.

39. Shoppers want to be “known” 27 I walk into the store Store knows it’s me Give me offers And plans my visit

41. 30 Learn also from your employees

42. Go beyond traditional data to understand your customers 31 Demographic Geographic Psychographic Behavioral Socialgraphic

43. Where are your customers online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? What are your customers’ social behaviors online? How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 32

44. Engagement Pyramid 33

45. Engagement Pyramid - Watching 34 Watch videos Read blog posts Listen to podcasts Read tweets Read discussion forum posts

46. Engagement Pyramid - Sharing 35 Share a link Share photos Share videos Write a status update Retweet

47. Engagement Pyramid - Commenting 36 Comment on a blog Write a review Rate a product Participate in a discussion forum @Reply on Twitter

48. Engagement Pyramid - Producing 37 Write a blog Create videos or podcasts Tweet for an audience

49. Engagement Pyramid - Curating 38 Moderate a wiki or discussion forum Curate a Facebook fan page

50. Engagement Pyramid Data 39 Source: Global Wave Index Wave 2, Trendstream.net, January 2010

51. Conduct research to identify the social behaviors of your target customer Also identify: Where are they online: Surveys or brand monitoring Who do they trust: Surveys Who do they influence: Survey or brand monitoring How they use these tools in context of your products: Most often surveys. When you first understand your customers, your marketing efforts will naturally unfold. Putting socialgraphics to work 40

52. Listen and learn from your customers. Start with basic monitoring tools, but quickly evolve them. Invest in analytics that matter. Use metrics that are relevant to your business. Understand the socialgraphics of your customers. Summary - Learn 41

53. 42 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

54. Conversations, not messages Human, not corporate Continuous, not episodic The New Normal 43

55. Blogs establish thought leadership 44 CEO Richard Edelman has been blogging consistently since September 2004.

56. SonyEurope rewards Twitter followers with discount that drives significant sales 45 SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000 Twitter follower lead to over €1m worth of product ordered.

57. VW inserted a tweet analyzing tool into their banner ad to suggest a specific model 46

58. Spain Tourism used multiple channels to encourage dialog/sharing 47

59. Kohl’s engages directly with customers 48

61. Insert your content into newsfeed of fans

63. Premier Farnell supports engineers with community, and employees with “OurTube” 51

64. Give out Flip cameras/smartphones Set up an internal “OurTube” Transcribe conversations into emails and posts Ask people for best practices, reactions, advice, opinion in areas of passion. Recognize key contributors. Getting people to share within your company 52

65. Tivo joined an existing community 53

66. 54 Advocacy – A five-phase approach

67. Tesco engages influencer blogs 55 Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.

68. Have an authentic conversation with your customers that they want to have. Engage across and through social communities Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers in real time. Summary - Dialog 56

69. It’s about RELATIONSHIPS © 2011 Altimeter Group

70. Support and Innovate With Your Customers 58 Charlene Li Altimeter Group 2011 May 30 Twitter: @charleneli Email: charlene@altimetergroup.com

71. It’s about RELATIONSHIPS © 2011 Altimeter Group

72. 60 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

73. Vodafone UK uses Twitter to proactively communicate with customers 61 Vodafone UK humanizes their Twitter account by including pictures of their support team and identifying different respondents by an “^” and the team member’s initials.

74. Ritz-Carlton managers monitor Twitter for real-time service 62 Property manager helped unhappy honeymooners

75. Support during a crisis 63 Used #euva and #ashtag to track conversations Source: simplifying.com

76. DellOutlet supports sales with Twitter 64

77. Question & Answer sites provide opportunity for support

78. Q&A encourages dialog too 66

79. iRobot ties discussion boards into customers support 67 iRobot escalates unanswered questions into support centers

80. Salesforce.com Service Cloud ties social channels back to customer data 68

81. Solarwinds’ community is strategic 69

82. Retailer Best Buy has 2,500 employees providing support via Twitter 70

83. Real-time isn’t fast enough. Integrate “social” support into your support infrastructure. Scaling support to meet the groundswell will require that you create your own groundswell. Summary - Support 71

84. 72 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

85. P&G uses reviews to improve products 73

86. Danish bank ask for help to improve mobile banking on Facebook 74

87. Finnish post created an idea exchange 75

88. Fiat invites ideas for a new car 76

89. Archer collects product development ideas in a private community 77

90. Starbucks involves 50 people around the organization in innovation 78 Over 100 ideas have been implemented

91. Dell taps employee ideas too 79

92. P&G goes outside for innovation 80 P&G made outside-in innovation a priority

93. P&G developed technology from diaper research Reached out to competitor Clorox to form a new joint venture Helped Glad become Clorox’s second largest brand Success story: Glad Press’n Seal 81

94. ModCloth has customers merchandise new products 82

95. Innovating can come from any customer or employee interaction. Dedicated innovation communities require significant commitment and nurturing. Extend your firewall to bring customers into your organization. Summary - Innovating 83

98. Company and leadership implications

99. Risk identification

101. 86

106. Likenomics evaluation 89 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

107. 90 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

108. Social Search evaluation 91 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

109. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 92

110. Big Data evaluation 93 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

111. 94 4) Game-ification

112. TurboTax used “games” to encourage sharing and support 95 Social design can enter training, collaboration, support, hiring

113. Gamification evaluation 96 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

114. 97 5) Curation

115. Curation evaluation 98 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

116. Summary of disruptions 99

117. It’s about RELATIONSHIPS © 2011 Altimeter Group

118. Managing Disruption 101 Charlene Li Altimeter Group 2011 May 30 Twitter: @charleneli Email: charlene@altimetergroup.com

121. Company and leadership implications

122. Risk identification

124. Programs are nascent, lacking long-term direction

125. Stem from Marketing or Corporate Communications

126. Limited budgets

127. Understaffed to serve enterprise

128. Five Ways Companies Organize 108

129. What they intend to focus on in 2011 109

130. 2. Proving real ROI difficult beyond engagement metrics

131. What’s the Next Big Thing? 111

132. 112

137. Likenomics evaluation 115 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

138. 116 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

139. Social Search evaluation 117 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

140. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 118

141. Big Data evaluation 119 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

142. 120 4) Game-ification

143. TurboTax used “games” to encourage sharing and support 121 Social design can enter training, collaboration, support, hiring

144. Gamification evaluation 122 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

145. 123 5) Curation

146. Curation evaluation 124 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

147. Summary of disruptions 125

148. It’s about RELATIONSHIPS © 2011 Altimeter Group

149. Leading The Open Organization 127 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com

150. It’s about RELATIONSHIPS © 2011 Altimeter Group

151. 129 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

152. OUT ofCONTROL? © 2011 Altimeter Group

153. 131 © 2011 Altimeter Group

154. 132 © 2011 Altimeter Group

155. 133 How to give up control but still be in command © 2011 Altimeter Group

156. Open Leadership 134 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals

157. 10 elements of openness 135

158. Explaining strategic decisions 136 Open book management Managing leaks

159. 137 Updating with every day stuff

160. Kohl’s has conversations on Facebook 138

161. Open Mic: When people contribute 139

162. Crowdsourcing new Walkers flavour 140

163. Open platforms make it easy to partner and share 141 Open data access Open architecture

164. 142 Centralized Democratic Distributed Consensus Decision making models

166. 16 Councils, 50 Boards make strategic decisions

168. Complete the Openness Audit 145

169. Traits of Open Leaders 146 Authenticity Transparency

170. Transparency as an imperative 147

171. How Best Buy became open and social 148

172. Best Buy’s First Social Media Experts 149 Steve Bendt & Gary Koelling

173. The Executive Advocate 150 Barry Judge CMO of Best Buy

174. Barry’s first post 151

175. The Premier Black Fiasco 152 6.8 million emails sent instead of 1,000 test

176. Developing Open Leaders © 2010 Altimeter Group

177. “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 © 2010 Altimeter Group

178. 155 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

179. #1 Create a Culture of Sharing 156

180. #2 Discipline is Needed to Succeed 157 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? No Yes Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts No Yes Yes No No Can you add value? DedicatedComplainer? Are the facts correct? No Yes Explain what is being done to correct the issue. Is the problem being fixed? © 2011 Altimeter Group Respond in kind & share Thank the person Comedian Want-to-Be? Yes No Yes Adapted from US Air Force Comment Policy Let post stand and monitor.

181. Five ways companies organize around social media 158

182. #3 Ask the Right Questions about Value 159 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

184. Size of their networks

185. Percent of referred people who purchase

187. Frequency and value of the support+ Value of support + Value of ideas Spreadsheets for all calculations available at open-leadership.com

188. 35% increase in LTV captured 161

189. Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 162

190. No relationships are perfect Google’s mantra:“Fail fast, fail smart” #4 Prepare for Failure 163 © 2011 Altimeter Group

191. 164 Create Sandbox Covenants © 2011 Altimeter Group

192. Structure your risk-taking and failure systems to create resilience 165 Conduct pre- and post-mortems. E.g. Johnson & Johnson after Motrin Moms. Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. E.g. Ford’s “lost” Fiesta. Build in responsiveness. E.g. Best Buy’s Black reward card. Prepare yourself for the personal cost of failure.

193. Audit the last few failures you and your organization experienced. 25% - what happened. 25% - what you learned. 50% - what you will do next. Keep a failure file. Identify risk-taking training needs. Build failure into your planning and operating processes. Create support networks for the inevitable failures. Action plan to prepare for failure 166

194. It’s about RELATIONSHIPS © 2011 Altimeter Group

195. 168 Give Up Control AND STILL BE IN COMMAND © 2011 Altimeter Group

196. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group