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Success with your
Social Media Engagement

Lisbon, 12th October 2011

Ivano Salogni
Sales Manager Southern & Central Europe
ivano@lithium.com
+41 79 709 8046
Imagine social customers creating
awareness, generating leads, and helping
  their peers to buy the right products.


             Cool……. 

                                           3
Social CRM

  With Paul Greenberg, we define social
  CRM as a business strategy and set of
 technologies that maximize the value of
  the customers' conversations, both for
     customers and for the business.


                                           4
Agenda
   Where to start?
   What works, what goes
    wrong?
   Key elements to ensure
    success for your Engagement
    in Social Media
   What did our customers
    achieve?



                                  5
What is happening right now out there?



   Your customers are acting
  whether you participate or not


                                         6
Business hasn’t changed - Your customer has!
You have a reputation online,
whether you like it or not …

Consumers actively talking about
you, whether you participate or
not, forcing transparency

Consumers will trust that
reputation more than anything
else

You have choices:
    • Ignore
    • Broadcast
    • Engage
                                                7
Business hasn’t changed - Your customer has!

Social Customers are …




  Connected                        Empowered                           Impatient                     Untrusting
    22 hours/week online        Avg. Facebook user: 130 friends      74% expect a response from        17% of consumers trust
5+ hours/week in social media    Avg. Twitter user: 300 followers   a company online. In one hour. corporate or product advertising.



                                                                                                                                       8
Social Customers




       98%   Internet users go to the internet to get
             information about the product they buy




                                                        Source: Fleishmann-Hillard/Harris Interactive
                                                                                                        9
Let’s talk about business needs
…We want to have a social media
presence, because all other companies
have one …

…let’s do some Facebook and Twitter…

…we already have 100’000 fans…
                                        10
Let’s talk about business needs
  Social Media Engagement is not a
          “me too” exercise!

       It is all about business:
           1. Grow Revenue
            2. Reduce Costs
           3. Fuel Innovation
                                     11
Before starting your engagement…

     What do you want to achieve?

     Why do you want to achieve it?

     How do you want to achieve it?

                                      12
The Commonest Question


     “Where should we start
        our social media
         engagement?”


                              13
Brand Communities are at the Heart of
your social Strategy
   78% of consumers have joined a company’s
community to get more information on the company

66% of community members say that the community
     has made them more loyal to the brand

71% of community members say that they are more
         likely to purchase from a brand

                                         source: universal mccann
                                                                    14
Forums



            Forums
                                           and more
Ratings &            Blogs
Reviews
            Web
            Site     Ideation
 Q&A                                        and more

        Knowledge
          Base                                   The
                                   Blogs   Enterprise
                                               Social
                                           Ecosystem 15
Ensure Success
 Be careful: social is
   not just another
       channel!

 The social customer is changing the
    consumers’ relationships with
              companies
                                       16
the social media journey
                                                                                                                    stage 5
                                                                                                                fully engaged
                                                                                         stage 4             Social engagement between
                                                                                                             customers and employees
                                                                                       real results          are part of the company’s
                                                                                                             DNA
                                                                                  Social engagement drives
                                                            stage 3               real business results
                                stage 2                   operational
      stage 1
                             experimental             Social engagement becomes
    traditional
                                                      more embedded in business
                           Dabbling in social but
Traditional, command and                              operations
                           disconnected to business
control business           operations
operations using one-way
communication




                                                                                                   @katykeim #L2LTourview
                                                                                                            source: ant’s eye
Where are you?
                                                                                                             stage 5
                                                                                                         fully engaged
                                                                                stage 4
                                                                              real results

                                                   stage 3
                            stage 2              operational
       stage 1
                         experimental
     traditional
       listening          facebook page           brand community          customer lifecycle         enterprise integration
                       twitter response center        social hub              integration              app for all employees
                          corporate blogs        gamification systems       business system              exec dashboards
                                                                              integration
                                                                        central data and analytics
measurement
    share of voice           followers           customer engagement          revenue uplift         competitive differentiation
  customer sentiment            fans                 organic traffic          call deflection               share price
   press mentions              likes                word of mouth                         @katykeim #L2LTour
                                                                             customer loyalty
                                                                            net promoter score
                                                                                                                                   18
Consider some key rules/experiences

   Social Web is driven by Influencers
Influencers require an engagement model
     to be harnessed – so nurture them
Engagement comes from Know-How, not
             Technology
                                          19
Where should we start?



  So if you start with monitoring:


       Everything fine now?
              Not really...
                                     20
… or is it better to start with           and        ?


                    “We are going to fish
                    where the fish are”
                    ▪   Who follows you and why?
                    ▪   What benefits do your followers
                        and friends create?



                                                          21
Like us, follow us ……. Why should I?
Brian Solis, 12th August 2011:

▪   …In fact, I believe that “why?” is the
    least asked question by businesses in
    social media today.

▪   The questions businesses should be
    asking, even before they create a social
    presence whatsoever include:
     • Why should we have a presence in
         Facebook, Twitter, et al.?
     •   Why would consumers connect with us
         now and stay connected over time?

▪   Consumers will expect businesses to
    think through these questions carefully …

Do you know what your customers expect,
did you ask them?


                                                22
Companies waste their money with Facebook




 Abraham Seidman:

 ▪   …there is no return on the 2 billion USD
     invested by companies into Facebook
     activities just for broadcasting their
     company news….

 ▪   …. Companies should enable the
     dialogue with the customer … bringing
     together customers in a kind of a
     moderated fan club ….

                         http://www.tagesanzeiger.ch/digital/wild-wide-web/Firmen-verschwenden-ihr-Geld-auf-Facebook/story/12512872
                                                                                                                                      23
Agenda
   Where to start?
   What works, what goes
    wrong?
   Key elements to ensure
    success for your Engagement
    in Social Media
   What did our customers
    achieve?



                                  24
Common Mistakes and Sacred Cows
▪   Sacred Cow #1: You don’t own the community,
    the community owns the community
    Do not over-control the community, let the
    dynamics play. But as owner you have
    responsibility to be a good host.

▪   Sacred Cow #2: Start by listening
    A listening strategy is key to managing a
    successful online presence, but brands and
    organizations also need to interact.

▪   Sacred Cow #3: Go where your community is
    Many organizations are doing a poor job of
    evaluating the opportunity for community on their
    own domain, and are setting up outposts on large
    social sites like Facebook because it is
    relatively easy and initially inexpensive.

                         http://www.onlinecommunityreport.com/2010/03/3-sacred-cows-about-online-communities-that-need-to-be-challenged
                                                                                                                                          25
Social Customer Behave on Facebook
▪   Key Figures
     • 38% do not want to see the
         news in their feed
     •   51% rarely or never visit a
         brand again once they have
         liked it
     •   71% have become more
         selective about what brands
         they like




                                       http://www.marketingcharts.com/direct/overposting-drives-away-facebook-fans-16055/   26
So where should you start?
Prepare a platform where your influencers
                can engage

     Find and attract the influencers

Engage in social media with a centralized
  and integrated approach – avoid silos
                                            28
On your way to a healthy community:
Three Rules
                   At any given time, 90% of users

     90-9-1        browse, 9% contribute casually, and
                   1% contribute frequently.

                    Within a 30-day period, 10% of the
                    people who see an invitation to
 30-10-10           community will come, and 10% of
                    those will post.
                    An average of 5-10 posts per day

        5-10        per forum or more is the point at
                    which communities begin to grow
                    consistently.

                                                         29
Agenda
   Where to start?
   What works, what goes
    wrong?
   Key elements to ensure
    success for your Engagement
    in Social Media
   What did our customers
    achieve?



                                  30
Influencers at Epicenter


                                         Authentic
                                          content
                                        comes from
                Millions of followers
                                         influential
Hundreds of relevant                    consumers
  and widely read
      reviews
                                                       31
Engagement Models are Needed

                         Influencers can
                           be nurtured
                              through
                             rewards,
                            reputation,
                            and game
                             dynamics
                                           32
Success Factor #1: Find Influencers



Imperative to find the influencers
  and listen to what they say...


                                      33
Success Factor #2: Engage Influencers
 ... engage them as they engage your brand! Through
 your forum, websites, social networks …...




                                                      34
Success Factor #3: Apply Community Know-how




 Technology                                   Technology + Expertise
              “Success is only 20% technology…… 80% is a
              combination of internal changes, services, and support.”
              Forrester Wave Community Platforms, January 2009
                                                                         35
What does it take to succeed?
Lithium provides you the three key elements to ensure success
1.   A complete solution that meets the needs of your users, your staff, and your
     organization:
     •   Modular Offering with specific Business Solutions
     •   Interconnected: Interfaces, Connectors
     •   Accessible from PC and Smartphones
     •   Optimized for search engines and with proven scalability

2.   Proven methods for putting that solution to work
     •   Lithium Best Practices


3.   Metrics and analytics to drive brand advocate cultivation, insight and action
     •   Lithium Insights and Benchmarking




                                                                                     36
Agenda
   Where to start?
   What works, what goes
    wrong?
   Key elements to ensure
    success for your Engagement
    in Social Media
   What did our customers
    achieve?



                                  37
how lithium can help
                                                                                    stage 5
                                                                                fully engaged
                                                               stage 4
                                                             real results

                                          stage 3
                                                                                 social suite
                       stage 2          operational                              crm integration
  stage 1
                    experimental
traditional                                                  business apps       dashboards

                                                             social support      rest apis
                                       community             social commerce
                                       social web            social marketing
                                       mobile

                     level up

social media monitoring            customer intelligence center
When it all comes together
                               Customer influencers or
                              super-users drive success:
                                    “90-9-1” Rule

                             Average value of an influencer
                                   from € 50’000 to
                                    € 250’000/year

                             Reputation Engine identifies,
                                      cultivates,
                                and grows the base
                                     influencers



                                                              39
It works for all industries…




                               40
When things go right …
Best Buy in the Top 25 Social
Brands 2009

Sold 40% more Laptops

Reduced Customer Complaints by
20% in the first year

Lithium provides 5 m USD/year of
value to Best Buy

Best Campaign in 2010: Cannes Lions




                                      http://forums.bestbuy.com/bb/   41
It Works For Passion-Driven Brands
Very active Social Presence prior to start of
own branded community:

•   > 865,000 Facebook fans
•   > 95,000 Twitter followers

Goal: Capture the Conversation
• Sephora = Beauty
• Beauty Mavens = Word of Mouth
Results:
• Active members buy 2.5 times more
• Superusers buy 10 times more
• Over 1.6 m active Facebook fans
• Superusers are 36.5h/week online in
   the community

                                                http://www.sephora.com/beautyadvice/
                                                                                       42
It Works For New Companies
Community runs all customer support
(no call centre)

•   Average response time for questions
    is within just three minutes (24/7)

•   95% of questions answered in
    under 60 minutes

•   90 ideas implemented, 80 in
    development

Winner of Forrester’s 2010 Groundswell
Award
(Category: Embracing B2C International)



                                          http://community.giffgaff.com/
                                                                           43
It Works For New Communities
Online Support Community launched in
March 2011

Within days the community was vibrant:
• 150 new registrations and 25,000 page
 views per day
• 20,000 cases handled and $150,000
 return within two weeks


  We thought it would take months before we
  had a vibrant community with active brand
  advocates answering all the questions - but
  it all came together on Day two!
  Kenneth Refsgaard, Project Manager Customer Care, TomTom




                                                             http://discussions.tomtom.com/   44
When it Works...Unbeatable!
Their voice becomes the Ad ….




   The Ad becomes the Content ...
                                    ... and your Customer
                                     does the distribution




                                                             45
Thank you!

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Success with Your Social Media Engagement

  • 1. Success with your Social Media Engagement Lisbon, 12th October 2011 Ivano Salogni Sales Manager Southern & Central Europe ivano@lithium.com +41 79 709 8046
  • 2. Imagine social customers creating awareness, generating leads, and helping their peers to buy the right products. Cool…….  3
  • 3. Social CRM With Paul Greenberg, we define social CRM as a business strategy and set of technologies that maximize the value of the customers' conversations, both for customers and for the business. 4
  • 4. Agenda  Where to start?  What works, what goes wrong?  Key elements to ensure success for your Engagement in Social Media  What did our customers achieve? 5
  • 5. What is happening right now out there? Your customers are acting whether you participate or not 6
  • 6. Business hasn’t changed - Your customer has! You have a reputation online, whether you like it or not … Consumers actively talking about you, whether you participate or not, forcing transparency Consumers will trust that reputation more than anything else You have choices: • Ignore • Broadcast • Engage 7
  • 7. Business hasn’t changed - Your customer has! Social Customers are … Connected Empowered Impatient Untrusting 22 hours/week online Avg. Facebook user: 130 friends 74% expect a response from 17% of consumers trust 5+ hours/week in social media Avg. Twitter user: 300 followers a company online. In one hour. corporate or product advertising. 8
  • 8. Social Customers 98% Internet users go to the internet to get information about the product they buy Source: Fleishmann-Hillard/Harris Interactive 9
  • 9. Let’s talk about business needs …We want to have a social media presence, because all other companies have one … …let’s do some Facebook and Twitter… …we already have 100’000 fans… 10
  • 10. Let’s talk about business needs Social Media Engagement is not a “me too” exercise! It is all about business: 1. Grow Revenue 2. Reduce Costs 3. Fuel Innovation 11
  • 11. Before starting your engagement… What do you want to achieve? Why do you want to achieve it? How do you want to achieve it? 12
  • 12. The Commonest Question “Where should we start our social media engagement?” 13
  • 13. Brand Communities are at the Heart of your social Strategy 78% of consumers have joined a company’s community to get more information on the company 66% of community members say that the community has made them more loyal to the brand 71% of community members say that they are more likely to purchase from a brand source: universal mccann 14
  • 14. Forums Forums and more Ratings & Blogs Reviews Web Site Ideation Q&A and more Knowledge Base The Blogs Enterprise Social Ecosystem 15
  • 15. Ensure Success Be careful: social is not just another channel! The social customer is changing the consumers’ relationships with companies 16
  • 16. the social media journey stage 5 fully engaged stage 4 Social engagement between customers and employees real results are part of the company’s DNA Social engagement drives stage 3 real business results stage 2 operational stage 1 experimental Social engagement becomes traditional more embedded in business Dabbling in social but Traditional, command and operations disconnected to business control business operations operations using one-way communication @katykeim #L2LTourview source: ant’s eye
  • 17. Where are you? stage 5 fully engaged stage 4 real results stage 3 stage 2 operational stage 1 experimental traditional listening facebook page brand community customer lifecycle enterprise integration twitter response center social hub integration app for all employees corporate blogs gamification systems business system exec dashboards integration central data and analytics measurement share of voice followers customer engagement revenue uplift competitive differentiation customer sentiment fans organic traffic call deflection share price press mentions likes word of mouth @katykeim #L2LTour customer loyalty net promoter score 18
  • 18. Consider some key rules/experiences Social Web is driven by Influencers Influencers require an engagement model to be harnessed – so nurture them Engagement comes from Know-How, not Technology 19
  • 19. Where should we start? So if you start with monitoring: Everything fine now? Not really... 20
  • 20. … or is it better to start with and ? “We are going to fish where the fish are” ▪ Who follows you and why? ▪ What benefits do your followers and friends create? 21
  • 21. Like us, follow us ……. Why should I? Brian Solis, 12th August 2011: ▪ …In fact, I believe that “why?” is the least asked question by businesses in social media today. ▪ The questions businesses should be asking, even before they create a social presence whatsoever include: • Why should we have a presence in Facebook, Twitter, et al.? • Why would consumers connect with us now and stay connected over time? ▪ Consumers will expect businesses to think through these questions carefully … Do you know what your customers expect, did you ask them? 22
  • 22. Companies waste their money with Facebook Abraham Seidman: ▪ …there is no return on the 2 billion USD invested by companies into Facebook activities just for broadcasting their company news…. ▪ …. Companies should enable the dialogue with the customer … bringing together customers in a kind of a moderated fan club …. http://www.tagesanzeiger.ch/digital/wild-wide-web/Firmen-verschwenden-ihr-Geld-auf-Facebook/story/12512872 23
  • 23. Agenda  Where to start?  What works, what goes wrong?  Key elements to ensure success for your Engagement in Social Media  What did our customers achieve? 24
  • 24. Common Mistakes and Sacred Cows ▪ Sacred Cow #1: You don’t own the community, the community owns the community Do not over-control the community, let the dynamics play. But as owner you have responsibility to be a good host. ▪ Sacred Cow #2: Start by listening A listening strategy is key to managing a successful online presence, but brands and organizations also need to interact. ▪ Sacred Cow #3: Go where your community is Many organizations are doing a poor job of evaluating the opportunity for community on their own domain, and are setting up outposts on large social sites like Facebook because it is relatively easy and initially inexpensive. http://www.onlinecommunityreport.com/2010/03/3-sacred-cows-about-online-communities-that-need-to-be-challenged 25
  • 25. Social Customer Behave on Facebook ▪ Key Figures • 38% do not want to see the news in their feed • 51% rarely or never visit a brand again once they have liked it • 71% have become more selective about what brands they like http://www.marketingcharts.com/direct/overposting-drives-away-facebook-fans-16055/ 26
  • 26. So where should you start? Prepare a platform where your influencers can engage Find and attract the influencers Engage in social media with a centralized and integrated approach – avoid silos 28
  • 27. On your way to a healthy community: Three Rules At any given time, 90% of users 90-9-1 browse, 9% contribute casually, and 1% contribute frequently. Within a 30-day period, 10% of the people who see an invitation to 30-10-10 community will come, and 10% of those will post. An average of 5-10 posts per day 5-10 per forum or more is the point at which communities begin to grow consistently. 29
  • 28. Agenda  Where to start?  What works, what goes wrong?  Key elements to ensure success for your Engagement in Social Media  What did our customers achieve? 30
  • 29. Influencers at Epicenter Authentic content comes from Millions of followers influential Hundreds of relevant consumers and widely read reviews 31
  • 30. Engagement Models are Needed Influencers can be nurtured through rewards, reputation, and game dynamics 32
  • 31. Success Factor #1: Find Influencers Imperative to find the influencers and listen to what they say... 33
  • 32. Success Factor #2: Engage Influencers ... engage them as they engage your brand! Through your forum, websites, social networks …... 34
  • 33. Success Factor #3: Apply Community Know-how Technology Technology + Expertise “Success is only 20% technology…… 80% is a combination of internal changes, services, and support.” Forrester Wave Community Platforms, January 2009 35
  • 34. What does it take to succeed? Lithium provides you the three key elements to ensure success 1. A complete solution that meets the needs of your users, your staff, and your organization: • Modular Offering with specific Business Solutions • Interconnected: Interfaces, Connectors • Accessible from PC and Smartphones • Optimized for search engines and with proven scalability 2. Proven methods for putting that solution to work • Lithium Best Practices 3. Metrics and analytics to drive brand advocate cultivation, insight and action • Lithium Insights and Benchmarking 36
  • 35. Agenda  Where to start?  What works, what goes wrong?  Key elements to ensure success for your Engagement in Social Media  What did our customers achieve? 37
  • 36. how lithium can help stage 5 fully engaged stage 4 real results stage 3 social suite stage 2 operational crm integration stage 1 experimental traditional business apps dashboards social support rest apis community social commerce social web social marketing mobile level up social media monitoring customer intelligence center
  • 37. When it all comes together Customer influencers or super-users drive success: “90-9-1” Rule Average value of an influencer from € 50’000 to € 250’000/year Reputation Engine identifies, cultivates, and grows the base influencers 39
  • 38. It works for all industries… 40
  • 39. When things go right … Best Buy in the Top 25 Social Brands 2009 Sold 40% more Laptops Reduced Customer Complaints by 20% in the first year Lithium provides 5 m USD/year of value to Best Buy Best Campaign in 2010: Cannes Lions http://forums.bestbuy.com/bb/ 41
  • 40. It Works For Passion-Driven Brands Very active Social Presence prior to start of own branded community: • > 865,000 Facebook fans • > 95,000 Twitter followers Goal: Capture the Conversation • Sephora = Beauty • Beauty Mavens = Word of Mouth Results: • Active members buy 2.5 times more • Superusers buy 10 times more • Over 1.6 m active Facebook fans • Superusers are 36.5h/week online in the community http://www.sephora.com/beautyadvice/ 42
  • 41. It Works For New Companies Community runs all customer support (no call centre) • Average response time for questions is within just three minutes (24/7) • 95% of questions answered in under 60 minutes • 90 ideas implemented, 80 in development Winner of Forrester’s 2010 Groundswell Award (Category: Embracing B2C International) http://community.giffgaff.com/ 43
  • 42. It Works For New Communities Online Support Community launched in March 2011 Within days the community was vibrant: • 150 new registrations and 25,000 page views per day • 20,000 cases handled and $150,000 return within two weeks We thought it would take months before we had a vibrant community with active brand advocates answering all the questions - but it all came together on Day two! Kenneth Refsgaard, Project Manager Customer Care, TomTom http://discussions.tomtom.com/ 44
  • 43. When it Works...Unbeatable! Their voice becomes the Ad …. The Ad becomes the Content ... ... and your Customer does the distribution 45