2008 TRIBALIZATION OF BUSINESS STUDY

HOW TO ACHIEVE TRANSFORMATIONAL CHANGE THROUGH COMMUNITIES AND

SOCIAL NETWORKS

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A STUDY PRODUCED BY:

Deloitte (www.deloitte.com) Beeline Labs (www.beelinelabs.com)Society for New Communications Research (www.sncr.org)

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OVERVIEW:

FIRST ACT: UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES

SECOND ACT:

A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY

THIRD ACT:THE MAJOR TAKEAWAYS FROM THE STUDY

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FIRST ACT: UNDERSTANDING THE DYNAMICS AT WORK WITHIN COMMUNITIES

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TRIBALISM IS THE VERY FIRST SOCIAL SYSTEM THAT HUMAN BEINGS EVER LIVED IN, AND IT HAS LASTED MUCH LONGER

THAN ANY OTHER KIND OF SOCIETY TO DATE. (WIKIPEDIA)

WHAT’S THIS TRIBAL THING ALL ABOUT?

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THE MOTIVATIONS ALLOWING THIS TO WORK…

PEOPLE WANT TO CONNECT WITH PEOPLE

PEOPLE WANT TO HELP AND BE HELPED

PEOPLE OPERATE EITHER IN A SOCIAL FRAMEWORK OR A MARKET FRAMEWORK

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THE MORE CONTENT YOU HAVE THE MORE MEMBERS YOU WILL GET.

THE MORE MEMBERS YOU HAVE THE MORE CONTENT YOU WILL GET.

THE BETTER YOU MATCH CONTENT AND MEMBERS TO MEMBER PROFILES THE MORE MEMBERS AND CONTENT YOU WILL GET.

THE EASIER IT IS TO DO TRANSACTIONS THE MORE MEMBERS YOU WILL ATTRACT.

UNDERSTANDING THE DRIVING FORCES OF COMMUNITIES

THOSE PILLARS CREATE THE DYNAMICS OF INCREASING RETURNS WHICH HELP COMMUNITIES DELIVER GAME

CHANGING RESULTS7

SECOND ACT:

A QUICK OVERVIEW OF THE FINDINGS OF THE STUDY

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TOP USAGE SCENARIOS:

New Product Development

Customer serviceIdea generation

Market research Developer relations

Amplifying Word of Mouth

Employee communications

General Marketing

Reputation management Product testing

Public relationsLONG TAIL SALES

CANARY IN THE COALMINE

Co-innovation

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TOP BUSINESS OBJECTIVES:

Generate word of mouth

Bring outside ideas into the organization faster

Increase customer loyalty

Increase brand awareness

Improve PR effectiveness

Reduce market research costs

Decrease customer acquisition costReduce customer support cost

Increase new product success ratios

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WHO’S IN CHARGE?

MARKETING

Sales

Customer serviceFinance

Public Relations

Employee communications

IT

Product development

R&D

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DISCONNECT:Not in support of any goal…

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MEASURING PROGRESS AND SUCCESS – QUALITATIVE

Activity levels

Tonality

Impact on salesImpact on cost

Participation rate

Sustainability

Software downloads

engagement

Amount of learningAnecdotal stories

Growth

Sentiment

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Could lead to prematureshutdown of community 16

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THIRD ACT:THE MAJOR TAKEAWAYS FROM THE STUDY

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TAKEAWAY #1: COMMUNITIES ARE ABOUT DELIVERING GAME-CHANGING RESULTS

COMMUNITIES CAN INCREASE REVENUE PER CUSTOMER DRAMATICALLY – I.E., 50%

COMMUNITIES WILL INCREASE PRODUCT INTRODUCTION SUCCESS RATIOS

COMMUNITIES AMPLIFY EVERYTHING YOU DO – INCREASING EFFECTIVENESS AND DECREASING COSTS

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TAKEAWAY #2: THE RISE OF THE CMO 2.0?

COMMUNITIES SHOULD BE AN IMPORTANT PART OF THE CMO’S TOOLSET(BUT FOR MANY LARGE COMPANIES – THERE IS AN UNDER-INVESTMENT AND SCALE

PROBLEM)

COMMUNITIES SHOULD EVOLVE THE ROLE OF THE CMO INTO CHIEF COMMUNITY OFFICER

(BUT THAT WILL REQUIRE DRASTIC CHANGES IN ATTITUDE AND APPROACH TO MARKETING)

IF DONE PROPERLY, COMMUNITIES WILL TRANSFORM THE WAY MARKETING WORKS

(REDUCED COSTS, IMPROVED EFFECTIVENESS, NEW OPPORTUNITIES)

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TAKEAWAY #3: THE NEED FOR NEW MANAGEMENT THINKING

MISMATCH BETWEEN COMMUNITY GOALS AND ASSOCIATED

INVESTMENTS

MAJOR GAPS BETWEEN COMMUNITY GOALS AND WHAT IS BEING

MEASURED

COMMUNITIES HAVE TO COMBINE WITH MAJOR TALENT INITIATIVES

COMMUNITIES WILL TRANSFORM MOST BUSINESS PROCESSES

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TAKEAWAY #3.5: THE WORST PRACTICES ENJOY WIDE ADOPTION

THE BUILD IT AND THEY WILL COME (AGAIN) FALLACY

THE LET’S KEEP IT SMALL SO IT DOESN’T MOVE THE NEEDLE PHENOMENON

THE NOT INVENTED HERE SYNDROME

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QUESTIONS?

Contacts:

Francois Gossieaux, Beeline Labs: francois@beelinelabs.com

Jen McClure, Society for New Communications Research:jmcclure@sncr.org

Ed Moran, Deloitte:emoran@deloitte.com

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