FROM SOCIAL BRAND TO SOCIAL BUSINESSMichael BritoSenior Vice President, Social BusinessEdelman DigitalMobile: (415) 871 – 5165Email: Michael.Brito@Edelman.comTwitter: @Britopian

#socialcrush

THE EVOLUTION OF SOCIAL BUSINESS

SOCIAL CUSTOMER

• Technology Innovation gives customers a voice

• They are Influential• Amplified voice across the

social web • Google indexing critical

conversations about companies• Social Customers are trusted

amongst their peers as influence grows

SOCIAL BRAND

SOCIAL BUSINESS

• Companies and brands join Twitter, Facebook and create corporate blogs

• Engage with the social customer in various channels

• Social Media teams are forming slowly

• Small budgets are allocated on a project basis to social media engagement and community building

• Organizations begin humanizing business operations

• Organizational models are formed to include social media

• Organizational silos are torn down between internal teams

• Governance models and social media policies are created

• Social becomes an essential attribute of organizational culture

1995 to present

2003 to present

2008 to presentTHE EVOLUTION OF SOCIAL BUSINESS

The social customer is gaining influence everyday and their voice is amplified via the social web .. says @britopian #socialcrush

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HOW DOES THE SOCIAL CUSTOMER BEHAVE?

Product Discovery• Active on Google, research products before

purchase

Social Participation • Fans, followers, likes and RSS subscribers

Sharing Content• Engaging with a brand in a two way

dialogue, not just consuming content but creating content

Brand Advocacy• Discuss the brand within their own micro

communities, without hesitation or the need for incentives

The social customer participates a variety of different ways; brands need to be omnipresent and engage says @britopian #socialcrush

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2011 GLOBAL SNAPHOT OF THE SOCIAL CUSTOMER

EUROPE (EMEA)31% comment on blogs27% comment in forums20% uploaded a video online39% uploaded a photo online63% watch a video online13% actively blog

LATIN AMERICA49% comment on blogs35% comment in forums41% uploaded a video online56% uploaded a photo online74% watch a video online27% actively blog

ASIA PACIFIC42% comment on blogs43% comment in forums29% uploaded a video online50% uploaded a photo online65% watch a video online37% actively blog

Marketers should consider more than just Facebook and Twitter; there are other networks too says @britopian #socialcrush

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THE NEW PURCHASE FUNNEL

• A brand should build relationships with the social customer on order to drive advocacy

• Advocates talk about the brand, even when the brand isn’t listening

• Advocates are trusted among their peers and within their micro communities

• Advocates are aiding and influencing others down the purchase funnel

• The reach of one advocate is minimal; as an aggregate, the total reach can make a strong business impact

Advocates aid & influencers their communities through the purchase funnel; don’t need incentives says @britopian #socialcrush

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DEFINING A SOCIAL BRAND

“When a product, brand, organization uses Twitter, Facebook, blogs, Google+ or any other social technology to connect with the social customer and/or its constituencies.

A social brand is any organization that uses social technologies to engage with the social customer says @britopian #socialcrush

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ORGANIZATIONS FOCUSING ON INTERNAL DYNAMICS

• The social brand has caused chaos and organizational anarchy in many companies today

• Employees are running wild on the intrawebs with little to no guidance, direction or governance

• Different geographies and business units are creating social communities externally and not sharing or communicating internally

The social brand has caused chaos for many companies today; now they are focusing on changing internally @britopian #socialcrush

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USHERING IN SOCIAL BUSINESS

• A social business is built upon three pillars – people, process and technology

• Change management and culture change is essential in order for genuine social business transformation to occur

• Organizations cannot have effective external conversations with customers unless they can have effective, internal conversations with each other first

A social business is built upon 3 pillars – people, process and technology says @britopian #socialcrush #socialbiz

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UNDERSTANDING THE DIFFERENCE

SOCIAL BRAND SOCIAL BUSINESS

External Communications Operations & Change Management (internal)

Usually owned and driven by marketing or corporate communications

Business leaders, employees in every job function across the organization and in every geography

Engagement with the social customer and within the external community like blogs, Twitter and Facebook

Engagement with internal teams and channel partners at every level within the organization

Measurement: clicks, impressions, engagement, likes, comments, web traffic, etc.

Measurement: employee participation, # of employees trained, process efficiencies, etc.

Budget allocated to support external facing objectives like agency support, Facebook applications, social ads

Budget allocated towards “consultative” agencies, internal social technologies, training and change management initiatives

Little to no internal collaboration to be somewhat effective Collaboration is imperative to the success of social business transformation

Difficulty level is easy Difficulty level is hard, very hard

A social brand focus external comms w/the social customer. Social business focuses on the internal says @britopian #socialcrush

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CREATING A LISTENING ORGANIZATION

41% OF consumers believe that companies should use social media tools to solicit feedback on products and services #socialcrush

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2009 Study 2010 Study

59% use Social Media to interact with brands 78% of use Social Media to interact with brands

93% believe a company should have a presence in social media

37% of users engaging companies or brands via new media at least once per week

43% of consumers say that companies should use social networks to solve the consumers' problems

New media users overwhelmingly believe companies or brands should not only have a presence in new media (95%) but also interact with their consumers (89%).

41% believe that companies should use social media tools to solicit feedback on products and services

TOOLS & TECHNOLOGY – NOT IMPORTANT

Tools & technology change everyday. Consumer expectations don’t and they just increase #socialcrush

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Consumers’ expectations aren’t changing. In fact, they want more out of brands. That is a good thing.

SO, THE QUESTION IS …

How do we live up to customer expectations?

KICK ASS PRODUCTS

SUPERIOR CUSTOMER SERVICE

PROACTIVE COMMUNITY ENGAGEMENT

FROM TRANSPARANCY TO BELIEVABILITY

PEOPLE BUY FROM COMPANIES THAT LISTEN

STARBUCKS LISTENS AND ACTS TOO!

DELL LISTENS AND ACTS TOO!

THANK YOU FOR YOUR TIME TODAY!

H T T P : / / T H E S O C I A L B U S I N E S S B O O K . C O M