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Increasing Social Media ROI Using Gladwell's Tipping Point Framework

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Inspired by some of the brightest thought-leaders in social media, this deck explores how to increase social media ROI using Gladwell's tipping point framework: the right people, a sticky idea, the right context. It is designed for on-line viewing without having to be presented in person. Enjoy!

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Increasing Social Media ROI Using Gladwell's Tipping Point Framework

  1. ediaRKroi si ng so cial mRAMEWO creaGLADWELL’S TIPPING POIN in G TF - Colleen Carrington USIN
  2. Why Gladwell’s Tipping Point Framework?
  3. “Gladwell’s theories could be used to run businesses more effectively, to turn products in to runaway bestsellers, and perhaps most important, to alter human behavior.” - New York Times
  4. Agreed.
  5. Everyone is getting connected
  6. 3 out of 4 adults use social networks Source: Pew Research
  7. Why?
  8. Maslow knew
  9. Oh, and there’s that other thing
  10. 76% of people think advertisers LIE Source: 2009 Yankelovich Study
  11. Most trusted advertising 1. Recommendations from friends 2. Other people’s opinions online 3. Company websites 4. Editorial content (news articles) 5. Brand sponsorships Source: Neilsen Online Global Consumer Study, April 2009
  12. Friends like to get recommendations from friends ...
  13. and to read other people’s opinions online
  14. With hundreds of millions of people on social networks
  15. spe nd r ket ing mTaE RISE dia ON H ial me soc IS 2014 $3.1 Billion 2010 $9.3 million Source: Forrester Research
  17. By 2010, half of companies with an online community will fail to manage it as an agent of change, ultimately eroding customer value Source: Gartner Group
  18. Why?
  19. Rushing in without clearly defined benefits for both the company and the customer will be the biggest cause of failure. Source: Gartner Group
  20. Those who fail to plan (mutual benefits), plan to fail.
  21. ‘Agent of Change’ Success Story Ford Fiesta Movement • founded on fair trade (free Fiesta & gas for 6 months in return for one video posted per month) • both the brand and the agent were giving and getting • gift economy approach • happier, more productive, more symmetrical relationship Source: Bud Caddell, Undercurrent
  22. Sensational Results • 100 Ford Fiesta Agents • 6.5 million YouTube views 3.4 million impressions on Twitter 670,000 photo views on Flickr • 50,000 requests for info from non- Ford owners • Sold 10,000 units in the first six days of sales • Fraction of the cost of typical national TV campaign Source: Scott Monty, Ford, and Bud Caddell, Undercurrent
  23. To reach a social media tipping point focus planning on three key areas
  24. Gladwell’s Framework 1. th e rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t
  25. Gladwell’s Framework 1. th e rig 2. a ht p stick eop 3. th y ide le e rig a ht co ntex t
  27. Where are they spending their time? Top Social Sites: Estimated Monthly Traffic 150 112.5 75 Millions 37.5 0 Wordpress Facebook YouTube MySpace Blogger LinkedIn Twitter Blogs Blogs Source: Carrington (chart), Quantcast (data), May 2010
  28. Are they ... ? connectors know lots of people mavens know about things convince us to salespeople use information in a certain way Source: Malcolm Gladwell, The Tipping Point
  29. Online Behavior Social Technographic Profiles n fol ks ca rs Th ese e othe c Creators 24% in fluen answer questions, create new content Critics/Editors 37% provide feedback, ideas, insight Joiners/Connectors 51% amplify conversations and WOM Collectors 21% organize, tag, rate, rank and moderate Spectators 73% listen/watch Inactives 18% do nothing 0% 20 % 40 % 60 % 80 % Source: Groundswell 2009 general population data merged with Ant’s Eye View’s classification system
  30. Who are your Influencers? Source: Jake McKee
  31. Find, thank and energize your Influencers They are your ‘Agents of Change’
  32. Influencers Find. Thank. Energize. Source: Ant’s Eye View
  33. Example: The Power of Many Microsoft MVP Program Numbers: 2008 Independent Experts Real World Answers The Microsoft MVP award recognizes exceptional technology community leaders who foster the free and objective exchange of knowledge by actively sharing their real world expertise with users and Microsoft. Selection Benefits The Numbers • Recognized • Relationship • 4000+ MVPs • Credible • Early access • 90+ Countries • Annual in scope • Private & peer • 90+ Products • Global connections • 7000+ bugs (Vista/012) • Community & Microsoft • Global summit, industry • 500+ product reviews nominated & local events • 70% author, speak, blog • Reputation & brand • 1M+ answers (NG/Forum) Source: Ant’s Eye View
  34. Example: The Power of One Influencer: Rich Marcotte, ‘The Mayor of Southwest’ • Flew 200 times a year for 9 years • Was recognized and thanked • Brand enthusiast • Rich evangelized ... ~ 9000 customers Source: Ben McConnell / Jackie Huba
  35. Influencers can help calm th e waters when there is a s torm
  36. I'm Too Fat to Fly So uthwest?! Kevin Smith
  37. How do you find your influencers? Top commercial listening platforms
  38. How do you find your influencers? Free Social Mention listening Alterian SM2 platforms Alltop Technorati Google Reader Google Blogsearch Google Alerts Twitter Search Twitter Analyzer BackType
  39. Other types of influencers? • journalists • analysts • bloggers • employees
  40. Personas Proven to increase effectiveness of user-centered design & communications • Develop a persona for each segment of target market, prioritize • Analyze online behavior within each persona Source: Long 2009
  41. Primary Persona Example For Ford Fiesta Meet Eric: • Generation Y • young US adult Eric wants: • tech savvy • a small, fuel efficient car with all the • has aversion to status quo cool technology of full-sized more • immune to tried-and-true expensive cars brands • a car that helps him broadcast a • socially vibrant (creator) youthful, hip, slightly adventurous image and a fun attitude … even if he is none of those things in real life • custom graphics and color options that let him express his individuality • a safe vehicle that handles well • a price less than $20k Eric is delighted to find the Ford Fiesta meets all of his price/performance criteria and exceeds other cars in the category for cool technology (voice activated music search, hands free calls, audible text, turn-by-turn nav, keyless entry, remote start) (Created by C. Carrington)
  42. How well do you understand your target market? Who are your organization’s influencers?
  43. Gladwell’s Framework 1. th e rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t
  44. Quintupled ‘Blendtec’ sales with YouTube videos t ble nd? Will i Source: Groundswell
  45. the brothers heath have it right
  46. a “sticky” idea is simple unexpected concrete credentialed emotional story Source: Chip & Dan Heath, Made to Stick
  47. Southwest Airlines: a cause, not just an airline Source: Flying Photog
  48. Southwest Airlines: a cause, not just an airline Simple only one type of plane Unexpected humor Concrete consistently low fares, outstanding service Credentialed results Emotional close-knit, gregarious, huggy staff Story give passengers a story to tell
  49. “The captain will be turning down the lights as we prepared for takeoff. This isn’t necessary for any technical purpose. It’s just been a long day and our flight attendants don’t look as lovely as they did this morning. “ Source: Flying Photog
  50. Don’t worry about the profit. Think about customer service. Profit is a by-product of customer service. It’s not an end of itself. - Herb Keller, Co-founder Southwest Airlines Source: Ben McConnell / Jackie Huba
  51. Southwest uses social media to enhance and improve customer experience
  52. Southwest Airlines: engaged in social mutual positive benefit sentiment listening & interacting responding
  53. content is king, long live the king
  54. the secret to good social content • friendly & human voice • consistent & clear language • helpful & timely • meaningful & relevant • entertaining
  55. successful social is all about being helpful
  56. relevant
  57. entertaining
  58. Gary V grew his family business from $4M to $50M
  59. What is your sticky idea?
  60. Gladwell’s Framework 1. th e rig 2. a ht pe stick ople 3. th y ide e rig a ht co ntex t
  61. Broken windows theory and the power of context are one and the same. They are both based on the premise that an epidemic can be reversed, can by tipped, by tinkering with the smallest details of the immediate environment. - Malcolm Gladwell Source: The Tipping Point
  62. Epidemic: Customers feel like they are in ‘dell hell’ ‘ I can’t find anyone to help me.’ ‘dell lies. dell sucks.’ Source: Jeff Jarvis &
  63. Reversed/tipped by: IdeaStorm - a place to vent, share ideas, vote 14k ideas 720k votes 89k comments
  64. Epidemic: Starbucks losing share & profit Jan 2007 • stiff competition $35.14 • sharp decline in traffic stock price pr and spending ofi ts dr ee y th op ea • poor economy made r 97 r lo % (Q 4, w 20 the problem worse 8)0 Dec 2008 $7.95 Source: Wikivest & Seattle Times
  65. Reversed/tipped by: ‘My Starbucks Idea’ 75,000 IDEAS < 6 MONTHS May 2010 $27.18 stock price ed en list ks uc rb Sta Dec 2008 $7.95 Source: Forrester Research Source: Wikivest & Seattle Times
  66. Customers need a place to have their opinions heard
  67. ebags Ratings and Reviews Source: Josh Bernhoff & Charlene Li, • Y1 cost = $200k • Y1 net additional sales because of R&R = $1.6MM • Net add’l profit margin at 25% = $400k
  68. People like the psychic income they get from being part of community and helping each other
  69. Constant Contact Customer Community • 2005/2006 • 10% participation • 30% generated referrals • acquisition cost = $60 credit • new customer lifetime value = $1500 • revenues grew 88% Source: Groundswell
  70. It’s about building brand community Branded mentions up 600+%, 5,000+ members, de-commoditized Fiskars Source: Brains on Fire
  71. What’s the context for your organization’s social media program?
  72. Gladwell Knows To reach a 1. th e rig 2. a ht pe tipping point stick ople 3. th y ide you need e rig a ... an ht co das ntex olid t plan
  73. Next Steps 1. yo ur ta To reach your 2. a rget com audi own tipping 3. th pelli ence e be ng & point, orga st SM stick nizat ion/p tools y idea identify: rodu give n yo ct’s c ur onte xt Develop a solid plan
  74. Colleen Carrington Keeping Brand Love Alive @colleencar
  75. Ben McConnell, Creating Customer Evangelists Brian Solis, Engage Charlene Li, Groundswell Chip & Dan Heath, Made to Stick Chris Brogan, Trust Agents Dan Roam, The Back of a Napkin David Armano, Edelman Digital David Meerman Scott, The New Rules of Marketing and PR Eric Weaver, Tribal DDB Garr Reynolds, Presentation Zen Geno Church, Brains of Fire Inspired by Jackie Huba, Creating Customer Evangelists Jake McKee, Ant’s Eye View Jeremiah Owyang, Altimeter Group Josh Bernoff, Groundswell Karen McGrane, Bond Art + Science Kristina Halvorson, Content Strategy for the Web Malcom Gladwell, The Tipping Point Peter Kim, Dachis Group Rick Levine, Cluetrain Manefesto Sean O’Driscoll, Ant’s Eye View Seth Godin, Purple Cow Spike Jones, Brains on Fire Tac Anderson, Waggenner Edstrom, Studio D William J. McEwen, Married to the Brand
  76. Sources All images from unless other wise indicated Slide 3 Malcolm Gladwell, Blink, outside back cover Slide 6 Adults/Summary-of-Findings.aspx?r=1 Slide 8 need-hierarchy.gif Slide 10 forum-geno-church Slide 11 consumers-trust-real-friends-and-virtual-strangers-the-most/ Slide 15 Slide 17 at-new-comm-forum Slide 19 at-new-comm-forum media/ Slide 21 ca2010018_445530.htm Slide 22 ca2010018_445530.htm Slide 24 Malcolm Gladwell, The Tipping Point Slide 28 Malcolm Gladwell, The Tipping Point, p.30 Contd/...
  77. Sources All images from unless other wise indicated Slide 29 Slide 32 Slide 33 Slide 34 09.asp Slide 36,,20344142,00.html Slide 40 Slide 44 Source: Erik Qualman,Socialnomics, and YouTube Slide 49 Ben McConell and Jackie Huba, Creating Customer Evangelists, p 175 - 179 Slide 50 Photo: Flying Photog Slide 55 Slide 56 Slide 57 Erik Qualman, Social Media ROI, v=ypmfs3z8esI&feature=related Slide 58 tasting-with-wine-pairings-episode-864/ Contd/...
  78. Sources All images from unless other wise indicated Slide 61 Malcolm Gladwell, The Tipping Point, p.146 Slide 62 from-dell-hell/ Slide 63 22May21010 stock: Slide 64 2004079246_bizbriefs18.html profits 2008375931_starbucks11.html mystarbucksidea.html Slide 65 stock: 2004079246_bizbriefs18.html profits 2008375931_starbucks11.html Groundswell p. 129 Slide 67 wheeled-duffel/125548 Slide 69 Groundswell, p.129 Contd/...
  79. Sources All images from unless other wise indicated photo: slideshow_assets/slide9.jpg Slide 70 blog: fiskateers_how_a_social_community_became_a_veritable_sales_for ce.asp