This talk is on the ROI of social innovation. How can you calculate the ROI of using social innovation? This speech explores how the ROI of acknowledging your customers, employees - your whole supply chain - can help you to make better products and services and drive down costs and increase revenues.

1. The
ROI
of
Acknowledgement
and
Social
Innova8on
www.DrNatalieNews.com
@drnatalie
Social
Innova8on
Conference

2. My
First
Job:
GE
Carbology
Division
Tungsten
Carbide
Tool
Bits

3. To
increase
the
hardness
&
wear
resistance:
Chemical
Vapor
Deposi?on
of
Thin
Films

4. Aluminum-­‐Oxide
TiN
The
thin
films
were….

5. Periodic
Chart
of
Essen?al
Elements
The
elements
we
used
to
make
beLer
products
Aluminum-­‐Oxide
TiN

6. In
my
first
mee?ng
with
Sales…

7. &
Engineering

8. The
Decision?
More
gold
or
more
gray
coated
tool
bits?

9. Sales
said
–
“Look
at
the
figures
we
are
selling
more
gold
ones!
We
want
more
gold
ones
to
be
produced!”

10. Engineering
said
–
“But
the
gray
ones
last
much
longer!
We
want
more
gray
ones!”

11. I
raised
my
hand
and
asked…
“Have
we
asked
our
customers
what
they
want?”

12. They
burst
into
laughter
“Why
would
we
do
that?”

13. I
wanted
to
crawl
under
a
rock
and
die

14. And
then
I
heard
my
grandpa’s
voice,
“You
are
a
smart
girl!
Trust
yourself.”

15. I
asked
my
boss
if
I
could
take
some
tool
bits
And
ask
some
machinists
their
opinion

16. I
asked
my
boss
if
I
could
take
some
tool
bits
And
ask
some
machinists
their
opinion
He
said,
“Yes,
but
check-­‐out.
I’m
not
paying
you
for
this
8me.”

17. This
was
my
first
mini
focus
group
vs

18. The
results
were…
The
customers
liked
the
gold
ones

19. Because
they
made
the
machinists
feel…

20. Because
they
made
the
machinists
feel…
Happier.
Yep,
Happier.

21. THAT
EXPERIENCE
LEFT
AN
INDELIBLE
MARK
ON
A
YOUNG
ENGINEER
THE
B.I.G.
IDEA?
ACKNOWLEDGEMENT
OF
THE
CROWD’S
/
CUSTOMER’S
CONTRIBUTION

22.
ESSENTIAL
ELEMENTS
OF
A
GREAT
BUSINESS?
1.
LISTEN
TO
YOUR
EMPLOYEES
&
CUSTOMERS…
2.
CONNECT
PEOPLE
WHO
MAKE
DECISIONS
WITH
PEOPLE
WHO
KNOW
THE
ANSWERS

23.
EMPOWER
THE
CROWD

24. Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved
FLASH
FORWARD….

25. Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved
I
GET
TO
BE
PART
OF
A
COMMUNITY
THAT
IS
DEDICATED
TO
ACKNOWLEDGING
THAT
THERE
IS
A
BETTER
WAY…
TO
DO
BUSINESS…
THAT’S
ALL
OF
YOU…

26. GO BACK IN TIME…
PEOPLE WERE PREDICTING THIS…
There would be…
A place in time
Where the customer‘s voice
The employee’s voice
Would start to mean something…
And there would be an enabling technology
We are here now…
This is your opportunity as businesses…
Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved

27. MANY SCHOLARS
HAD ADVOCATED TO
LISTEN TO
CUSTOMERS,
EMPLOYEES,
PARTNERS…
As an engineer I…
Copyright © 2012 @DrNatalie Petouhoff The Social Business Course™ ® © All Rights Reserved
GO BACK FURTHER…

28. MARY
ELLEN
HEARD
THE
CALLING…
iRobot

29. MARY
ELLEN
BEGAN
ACKNOWLEDGING...
•
What
her
customers
were
saying
in
social
media
•
What
employees
were
saying
in
social
media
•
It
was
not
posi?ve
•
She
gathered
screenshots
•
Put
them
in
a
powerpoint
•
Gave
them
to
her
CEO

30. WE
CALL
THAT…

31. WE
CALL
THAT…
The
Witness
Factor™

32. MARY
ELLEN
TOOK
CHARGE
OF
THE
CUSTOMER
/
EMPLOYEE
FEEDBACK…
SHE
HAD
THE
ESSENTIAL
ELEMENTS
TO…
The
CEO
appointed
her
the
lead

33. …to
completely transform business…
With less
– Politics and resistance
– “Not invented here” or “not my problem”
An empowered
crowd of employees
& customers-
dedicated
to make a difference

34. Crowd sourced information
lead to transformation of:
– Engineering
– Product Development
– QA
– Fulfillment
– Order Management
– Marketing
– PR
– Advertising
– Sales
– Customer Service

35. How would you calculate ROI?
of customer feedback…
of employee feedback…
Chalk it up to the “Witness” factor
ROI
=
Benefits
-­‐
Costs
x
100
Costs

36. What are the benefits of
Creating products & services
with input from the “crowd”
Creating products customers asked for means…
• Reducing the cost of PR & Marketing
• Increasing the lead conversion rates
• Reducing the cost of sales
• Reducing returns and/or churn
• Increasing customer lifetime value
• Reduced employee attrition
• Increased employee productivity
The So What is…

37. AND
Because the customer:
- Feels heard
- And they are getting what they need and want…
- They have ownership towards a company’s
product / services because they had input into
- Having their voice heard / being acknowledged
drives engagement…
– Increased positive online ratings
– Increased customer loyalty
– Increased customer advocacy
– Increased customer referrals via WOM
– Increased sales
Chalk it up to the “Witness” factor

38. How would you calculate ROI?
Chalk it up to the “Witness” factor
ROI
=
Benefits
-­‐
Costs
x
100
Costs
Benefits:
$2.5M
Costs:
People,
process
&
technology
$300K

39. ROI?
Chalk it up to the “Witness” factor
ROI
=
$2.5M
–
$300K
x
100
$300K
ROI
=
733%

40. NOW
LET’S
GET
BACK
TO
THE
ROI
OF
ACKNOWLEDGEMENT…
THE
END
OF
MY
STORY?

41. PWC
Management
Consultant
A Top Forrester Analyst
Chief Strategist for Social Media & Digital
Communications PR & Marketing Agency
Analyst Rankings:
A Ph. D.
Engineering
From UCLA
Instructor at Center for Entertainment, Media
and Sports Summer Institutes at UCLAAnderson
I pursued a path to continue providing customers the
essential elements of business…
by believing what my grandpa said…

42.
And
my
dedica?on
to
the
essen?al
elements
of
learning,
listening
and
collabora?ng….

43. Allows
me
now
to
help
companies
calculate
the
ROI
of
things
they
thought
were
too
squishy
or
couldn’t
be
calculated…
ROI
of
Human
Capital
Innova8on
Social
Media…
With
Dynamic
ROI
Visualizer
Calculators
&
Dashboards…

44. Dr.
Natalie
L.
Petouhoff
@drnatalie
For
more
informa?on
on
ROI
–
videos,
ebooks,
whitepapers..
www.DrNatalieNews.com/Blog
THANKS
TO
MY
GRANDPA
WHO
LISTENED
&
ACKNOWLEDGED
MY
SMARTS
MY
ROI?
PRICELESS