Social Utilities

The Power of Social

• Is Social Media a Fad?– Or is it the biggest shift since the industrial

revolution?

• Welcome to the Revolution

• By 2010 gen Y will outnumber baby boomers

• 96% of them have joined a social network

The Power of Social

• Years to reach 50 million users– Radio: 38 years– TV: 13 years– Internet: 4 years– iPod: 3 years– Facebook added 100 million users in less

than 9 months

• If Facebook were a country– it would be the world’s 4th largest

The Power of Social

• The fastest growing segment on Facebook is 55-63 year-old females

• 57% of people belonging to popular social networks are older than 35

• 80% of Twitter usage is on mobile devices– people update anywhere, anytime

• Imagine what that means for bad customer experience?

The Power of Social

• There are over 200,000,000 Blogs• 54% of bloggers post content or tweet

daily• Word of mouth• World of mouth• World of mouth• Jesse Lee is the Director of Online

Programs (New Media) for the White House

The Power of Social

• 25% of search results for the world’s top 20 largest brands are links to user-generated content

• 34% of bloggers post opinions about products & brands

• Do you like what they are saying– about your brand?

• you better…

• People care more about how their social graph (Facebook) ranks products and services than how Google ranks them

The Power of Social

• 78% of consumers trust peer recommendations

• Only 14% trust advertisements

• Only 18% of traditional TV campaigns generate a positive ROI

• 90% of people that can TiVo ads do

The Power of Social

• We no longer search for the news, the news finds us…

• In the near future we will no longer search for products and services– they will find us via social media

• Social media isn’t a fad, it’s a fundamental shift in the way we communicate.

The Power of Social

• More than 1.5 million pieces of content (web links, news stories, blog posts, notes, photos, etc.) are shared on Facebook– Daily

• Successful companies in social media act more like Dale Carnegie and less like David Ogilby– Listening first, selling second

The Power of Social

• Successful companies in social media act more like party planners, aggregators, and content providers than traditional advertisers.

• We hope you would like to be apart of this revolution. The Internet is a powerful tool that is helping connect us - Video

Coming Together

http://www.youtube.com/watch?v=heSudg-tfIk

Microsoft Office 2010

• Social Connector will be even more prevelant• Email meets Social Networking

– http://www.microsoft.com/office/2010/en/socialconnector/default.aspx

Social Media Parable

• Change happens. To survive it, you must anticipate it; and to be successful, you must embrace it.

• Your Brand Needs to be on Facebook– http://mashable.com/2010/03/24/brand-facebook-now/

• Facebook’s dominance has forced another “change or become extinct” moment

Conundrum

• We have process to manage product development

• We have no process to manage customer development

• Until now– Using Social Media

Social Media Helps

• Build brand equity (Branding 101)

• Increase customer engagement (Prism)

• Increase customer investment (Brand)

• Gives customers a voice (Service)

• Increase sales (Conversion)

• Promotes honesty and transparency (Share)

Branding 101• Your brand is the lasting definition and impression your customers retain of

your company. This thought is based on their cumulative experience of your impersonal (media, web, public, relations) and personal (all customer touch points via direct, web, mail, telephone or other) marketing efforts. You will succeed by appealing to your customers emotional side. Building a positive image and generating a likable affiliation with your brand will help to improve your customers satisfaction: namely their perception, preference, usage, and loyalty. This in turn will help drive your market share, sales, and profits. By using social utilities you are better positioned to: obtain and act on customer feedback and suggestions, create awareness via subtle messaging, and continually keep your customers engaged and informed by having an online and offline community for their voice to be heard. This in turn will improve your brand equity. Brand equity is, as defined by any marketing textbook, the additional cost that consumers are willing to pay just to acquire your brand, because your brand and the total experience it delivers is far superior to your competitors; the greater your brand equity, the greater your value. Social utilities really are excellent tools if used properly.

Creating Customer Engagement

Customer

Investment

Customer Voice

Increase Sales

Shared Passions

• “…Create a sense of shared ownership and participation amongst customers themselves. The more people you invite to share your companies personality, the more you enable them to share their ideas with one another, the greater their stake in what your company does and the more invested they become in its success (unleash a whole lot of participation).”

– Mavericks At Work

Shared Passions

• “Customers aren’t just asked to use the good or service, they’re encouraged to use it, they’re invited individually and collectively, to define the product or service, to shape it’s identity, to exercise their voice in the brands personality and message. Companies shouldn’t preach to customers about the virtues of the brand, they should unleash the energy and creativity of its customers to give the brand its virtues.” – Mavericks At Work

Benefits

• Customer centricity – (feedback, responsiveness, inquiries, loyalty,

referrals, unbiased reviews)

• Less buyer insecurity• Idea formulation• Customer empowerment• Enhanced knowledge• Word of mouth, viral, buzz (most effective)• Opportunity to Improve Service

Benefits - Detailed• Create an emotional attachment with customers (Customer

Centricity, Tightened Bond, Enduring Connections, Compelling Reasons to Participate)– Sensory cues engage the customer’s imagination (video, photos,

blog, podcasts, music, etc.)• Leaves a profound sense of attachment. More than satisfied

customers, we want passionate customers eager to share their enthusiasm with anyone who will pay attention.

• Value interacting with customers and learning from them. Deepen our social system, become a more powerful experience

• Shared experience strikes an emotional connection. Customers love companies that keep them entertained and help them learn.

• The more people we invite to share our personality, the more we enable them to share their ideas with one another, the greater their stake in what we do and the more invested they become.

• Peer to peer phenomenon is truly a unique medium for marketing

Yelp Case Study

• Yelp has been Yelped. But they stand behind Yelpers' right to say what they want, as long as it's true. (Authors are solely responsible for their reviews. That should help the company avoid run-ins with angry restaurateurs, but one messy lawsuit would surely curb Yelpers' enthusiasm.) Most reviews are positive - 85% are three stars or more. Stoppelman thinks that's because people would rather write about great experiences. As for the harsh critiques, Stoppelman considers them an opportunity for a business owner to start a conversation. "Your customers are out there saying things about you, whether it's on Yelp or on some blog," he says. "The faster you can fix problems, the better you're going to do. Customer service is the new marketing."

Conclusion

• The current model for R&D is broken, R&D budgets increase faster than the rate of sales growth. That’s not sustainable, new psychology connect and develop customers not RD … CD

• Research & Development becomes

Customer Development

What Duende Can Help With

Big 5 Touchpoints

• Website

• Blog

• Twitter

• Facebook

• Youtube

– Other

Action

• Consider percentage of budget to allocate

• Set Clear Benchmarks

• Understand Content & Messaging

• Survey Employees, Teach, Work Together

• Collaborate on strategy

• Share contacts

• Visibility and Outreach (Traditional Media)

Questions ?

References

• All Linked Here