1. Eclipse your competition by leveraging social media Prepared for the International Enterprise 2.0 Forum – Milan, June 10th, 2010 @fgossieaux

2. Overview What is actually happening out there?Understanding the true drivers of Social MediaHow do Hyper-Social Organizations think about their business?What do Hyper-Social Organizations do Differently, and WHY?Marketing 2.0 in a Hyper-Social world

3. Let’s start off with a little example Human 1.0 vs. Web 2.0 The SAP Developer Community

4. The SAP Developer Network 4 Stats: 1.4 M users 400K+ business experts Content-rich Original Incentive System: Point system leading to personal rewards The Results: Bullying behavior in the community New Incentive System: Point system leading to donation to good cause The Results: No more bullying in the community Web 2.0 or Human 1.0?

5. A look at some NIH + Duke Research Experiment #1: People play Atari-style video game which allows them to earn or lose money for themselves MRI scans shows that the pleasure side of the brain lights up – that same part that gets addicted to drugs Experiment #2: People play Atari-style video game which allows them to earn or lose money for a charity MRI scans shows that the altruism side of the brain lights up – that same part that is responsible for social interactions

6. So to understand how to do business in a 2.0 world… You are better off understanding Human 1.0 – not as individuals, but as hyper-social creatures You do not need to understand the Web 2.0 technologies

7. Let’s get a level deeper on the Human 1.0…

8. Why are social beings helping one another? Reciprocity = a Reflex

9. Why are people going out of their way to punish others? Humans have an innate sense of fairness = keeps reciprocal society working

10. Why do people like to look like others? Because humans have mirror neurons

11. Why do we lie to market researchers? Because we lie to ourselves and others, and we tell people what we think they want to hear

12. Why there is no real (big) business in the long tail Because we are a herding species, and a self-herding one to boot

13. Why is status so important (and why do we hoard it)? Because it used to get us a better mate – proceed with caution: status works both ways!

14. What are the important Human 1.0 Hyper-Social Traits Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters Social framework of evaluating things vs. market framework The role of fairness in assessing situations The importance of looking cool and mimicking others Herding and self-herding (early research shows that social behavior does not change when it scales) So to the extent that we can basically be human with what we know, and share it as freely as we possibly can, I think we’ll go a long way towards gaining a higher or stronger level of trust with the consumers. Barry Judge, CMO Best Buy http://www.cmotwo.com

15. They think differently about their business Successful Hyper-Social Organizations Informed by Tribalization of Business Study: 2009 – 430 Companies took the survey (52% external communities, 32 hybrid, and 12 internal)

16. In the old days Customer Support PR Marketing Hierarchies within organizations Old: legal employee contracts Mostly 1-1 customer relationships Old: legal customer contracts

17. The new world order Green Enthusiasts CIO’s Business model tweak PR Customer support Product Idea Hierarchies within organizations Old: legal employee contracts New: cross-functional social contracts Mostly 1-1 customer relationships Old: legal customer contracts New: social contracts

18. Hyper-Social companies think differently: a recap Think tribe – not market segment We need to find groups of people who have something in common based on their behavior, not their market characteristics Think knowledge network – not information channel The most important conversations in communities happen in networks of people, not between the company and the community. Think human-centricity – not company-centricity The human has to be at the center of everything you do, not the company Think emergent messiness – not hierarchical fixed processes People will want to see responses to their suggestions, even if it does not fit your community goals – FAST “…affinity groups will quickly become the dominant social force in the emerging world economy, changing how we think about markets, fads, social movements, and, ultimately, power” - Tom Hayes, Jump Point: How Network Culture is Revolutionizing Business – 2008

19. What is it that they do different? Hyper-Social Organizations

20. Hyper-Social Orgs – Leveraging Social Business Processes Successful Hyper-Social organizations turn their business processes into “social” processes Why? Scale Increased quality Increased passion Increased WOM

21. Turning a business process into a social process IS NOT: Running traditional programs using social media platforms – PR by blogging press releases, lead gen by spamming community members, recruiting through spray and pray over Twitter, etc. BUT IS: Running programs based on human reciprocity and social contracts to get others, whose job it isn’t to do so, to help you do your job – customer support with the help of all employees and customers, product innovation with customers and detractors, etc. TAPPING INTO PASSION, AND HUMAN 1.0 TRAITS

22. 22

23. Marketing 2.0 in a Hyper-Social world Realize that your customers are Hyper-Social Find the knowledge networks that matter – listen to what is being said about the things you care Develop content that will travel in those networks – would you send it to your best friends? Find ways to help the tribes AND their leaders Leveraging Hyper-Social employees Find the pockets of passion and turn all your employees into sales, marketing, and customer support employees Examples: Best Buy, Xerox, Humana, Dell

24. Any questions? Francois Gossieaux Partner, Beeline Labs e. francois@beelinelabs.com w. http://www.beelinelabs.com b. http://www.emergencemarketing.com c. http://www.marketingtwo.net p. http://www.cmotwo.com t. http://twitter.com/fgossieaux Our new book: The Hyper-Social Organization http://www.hypersocialorg.com 24