Creating A Coherent Social
Business Strategy
Charlene Li, Founder & Analyst, Altimeter Group
@charleneli | charlene@altimetergroup.com
February 7, 2013 | Expion Summit

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Social Will
Be Like Air

FUTURE
STRATEGY
PREPARE
© 2011 Altimeter Group

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What do you really know about your
customers?
25-55 years old, married, kids, working,
graduate degree, reads Real Simple & Wired

5 FACTORS
3 FACTORS
5 FACTORS
5X3X5=75
awareness consideration intent purchase support loyalty advocacy
75Xfactors
3
5 7=525

What Kind of Relationship Do You
Want?
Short -term Long-
term
Transactional Two-way
Occasional Constant
Impersonal Authentic

Social Business Exists Across the Enterprise
Sales Recruitment Performance Reviews
Innovation Supply Chain

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Social as Connective Tissue Provides Context
Rigid Organizations Adaptive Organizations

FUTURE
STRATEGY
PREPARE
© 2011 Altimeter Group

Why Most Social Strategies Fail
No Clear
Business
Impact

Strategy Requires Planning

6 Stages of Social Business Maturity
1. Planning
2. Presence Goals
3. Engagement Metrics
Initiatives
4. Formalized Org & Resources
5. Strategic
6. Converged

1 Planning
“Listen to Learn”
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Planning: “Listen to Learn”
Learn how customers use social channels.
Typical Goals Prioritize strategic goals where social can have
the most impact.
Metrics Initiatives Organization and
Resources
Mentions Listening / Monitoring
Sentiment Internal Audits Monitoring Platform
Pilots Part-time Headcount
Long-term Vision Agency Support

Red Cross monitors social channels during
disasters to direct relief efforts
During disasters, the Red Cross is able to find out about specific
incidents, spot trends, and anticipate public needs. Red Cross
representatives can use the command center to quickly match disaster
victims with aid relief.
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Conduct Internal and Competitive Audits
Source: Altimeter Group

2 Presence
“Stake Our Claim.”
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Presence: “Stake Our Claim”
Amplify existing marketing efforts.
Typical Goals Encourage sharing.
Metrics Initiatives Organization and
Resources
Share of Voice Social Content
Fans, Followers, Shares Risk Management Dedicated Manager, PT
Brand Metrics Training Content Management
Traffic
4 Levels of Community Management

Shell Tracks Reputation Impact…Daily

Have The Courage
to Take the Leap
© 2011 Altimeter Group

3 Engagement
“Dialog Deepens
Relationships”
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Engagement: “Dialog Deepens
Relationships”
Drive consideration to purchase.
Typical Goals Provide direct support.
Internal employee engagement.
Metrics Initiatives Organization and
Resources
Path to Purchase. Campaigns  Long Term
Programs
Lower Support Costs Social Strategist
Social Support
Customer Satisfaction. Small, dedicated team.
Communities.
SMMS
4 Levels of Community Management

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Develop rules for engagement
Source: “Social Media Strategy Secret Sauce: How Intel Makes Data-driven Decisions,”
Allen Stephens, Keith Molesworth, and Tiffany Peery, March 21, 2011

Enthusiasm
Leads to
Uncoordinated
Efforts

4 Formalized
“Organize For Scale”
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Formalized: “Organize For Scale”
Set governance for social.
Typical Goals Create discipline & process.
Strategic business goals
Metrics Initiatives Organization and
Resources
Efficient Process Create Center of Excellence.
Link to Department Enterprise Social Network Staffing up CoE
Business Goals & ROI Tech Investment
4 Levels of Community Management

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Ebay’s Global CoE coordinates across
functions, properties, and geographies
• Responsible for social strategy
• Alignment of roadmaps and plans
• Analytics and reporting infrastructure
• Monthly Social Media Council
meetings, with knowledge sharing
initiatives
Source: http://www.slideshare.net/influencepeoples/ali-croft-monitoring-social-media-ebay

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Kelly Services uses ESN to cultivate internal
culture among its distributed workforce
"We are trying to build an inside culture
that encourages risk-taking and more
innovation at the front lines. It's critical to
enable people, at all levels, who have an
interest on a topic to be able to
communicate without going through a
chain of command.
Carl Camden
CEO of Kelly Services

5 Strategic
“Become a Social Business”
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Strategic: “Become A Social Business”
Scale across business units.
Typical Goals Moves into HR, Sales, Finance, Supply Chain.
C-Level coordination required.
Metrics Initiatives Organization and
Resources
Dept. Metrics SMMS to Scale
Enterprise Metrics like Net CoE Coordinates Hubs
Social is part of planning
Promoter Score, LTV process. Dedicated Spoke
Headcount
4 Levels of Community Management

Sephora
integrates social
+ digital in
communities as
well as in stores.
customer spending
Goal: average customer
Understand their
“superfans” who 2.5x community user
spend 10X. 10x
superfan
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6 Converged
“Business is social.”
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Transformation: “Business Is Social”
Social drives transformation.
Typical Goals Integrate deeply into all aspects the enterprise.
Metrics Initiatives Organization and
Resources
Deep Analytics Redefine Processes
Predictive Training Social is everyone’s
responsibility
One Strategy
4 Levels of Community Management

FUTURE
STRATEGY
PREPARE
© 2011 Altimeter Group

#1 Align Executives With Clear
Business Goals

#2 Ask the Right Questions 37
About Value
“We tend to overvalue the things
we can measure, and undervalue
the things we cannot.”
- John Hayes, CMO of American Express
© 2011 Altimeter Group

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# 3 Create a Culture of Sharing

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#4 Develop Discipline and Process
Source: “H&R Block’s Response Process” David Armano, Edelman 2010

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#5 Master the Art of Failure
No relationships are perfect
Google’s mantra:
“Fail fast, fail smart”
© 2011 Altimeter Group

Social Will
Be Like Air

© 2013 Altimeter Group