SMASH Summit keynote by Jeremiah Owyang, Altimeter Group (May 2010)

1. Four Laws of Social Business Jeremiah Owyang Altimeter Group May 2010 1 SMASH SUMMITT

2. There are more than four. Laws can be broken, but not without consequences. Whether a buyer or seller, abide by these to prosper. The thing about the laws… 2

3. Four Laws of Social Business 3

4. Image taken by 0108dk used with Attribution as directed by Creative http://www.flickr.com/photos/0108dk/4181928709/ 1) Don’t Fondle the Hammer © 2010 Altimeter Group

5. Run when you hear “Twitter Strategy” or “Facebook Strategy” – it’s putting the cart before the horse. Instead, focus on how you’ll understand customers. Then choose a business objective. First, focus on customers 5

6. Socialgraphics 6 Demographic Geographic Psychographic Behavioral Socialgraphic

7. Where are your customers online? What are your customers’ social behaviors online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 7

8. Social Strategy Objectives 8

9. Focus on building the house – not the hammer

10. 2) Live the 80% rule © 2010 Altimeter Group

11. Treat social success like launching a new product. 80% of success is getting your company ready – only 20% is about the technologies. You can’t love your customers ‘till you love yourself first. Get your company ready 11

12. Crisis response plan 12

13. Social media triage 13 Take reasonable action to fix issue and let customer know action taken Negative Positive Yes Yes No Assess the message Evaluate the purpose Do you want to respond? Does customer need/deserve more info? Unhappy Customer? No Response Yes Are the facts correct? Gently correct the facts Yes No No No Can you add value? DedicatedComplainer? Are the facts correct? Yes Yes No No Yes Respond in kind & share Thank the person Comedian Want-to-Be? Explain what is being done to correct the issue. Is the problem being fixed? Yes No Yes Let post stand and monitor.

14. One department controls all efforts Consistent May not be as authentic e.g. Ford Centralized 14

15. Organic growth Authentic Experimental Not coordinated e.g. Sun Organic 15

16. One hub sets rules, best practices, procedures Business units undertake own efforts Spreads widely around the org Takes time e.g. Red Cross Coordinated 16

17. Similar to Coordinated but across multiple brands and units e.g. HP Multiple hub and spoke or “Dandelion” 17

18. Each employee is empowered Unlike Organic, employees are organized. e.g. Dell, Zappos Holistic or “Honeycomb” 18

19. Social strategist: Responsible for the overall program, including ROI Community manager: Customer facing role trusted by customers Roles 19

20. 3) Customers don’t care what department you’re in © 2010 Altimeter Group Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/

22. 22 Customer don’t care what department you’re in

23. Now, with social tools, every employee can talk to customers and prospects. Yet, this could create confusion with clients. New systems will be needed to centralize data so customers have a holistic experience. Customers deserve a holistic approach 23

24. Connects the Social Web with existing CRM Systems Enables Brands to better manage relationships Catch leads in real time Allow for better account management Anticipate customer needs Social CRM helps companies catch up 24

25. The 18 Use Cases of Social CRM 1. Social Customer Insights: The 5M’s Marketing Sales Service & Support Innovation Collaboration CustomerExperience 2. Social Marketing Insights 6. Social Sales Insights 9. Social Support Insights 12. Innovations Insights 14. Collaboration Insights 17. Seamless Customer Experience 3. Rapid Social Marketing Response 7. Rapid Social Sales Response 10. Rapid Social Response 13.Crowdsourced R&D 15. Enterprise Collaboration 18. VIP Experience 4. Social Campaign Tracking 8.Proactive Social Lead Generation 11. Peer-to-Peer Unpaid Armies 16. ExtendedCollaboration 5. Social Event Management © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

26. Not All 18 Social CRM Use Cases are Market Ready © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States

27. Used with creative commons http://www.flickr.com/photos/faikevin/3176938440/ 4) Real time is *not* fast enough © 2010 Altimeter Group

28. Evolution of the web 28

29. 29 Real time is not fast enough

30. Microsoft’s MVPs empowers community

31. Walmart’s 11 Moms gives consumers a voice

32. The Four Laws Of Social Business 32

33. How To Prosper 33

34. 34 THANK YOU Jeremiah Owyang jeremiah@altimetergroup.com web-strategist.com/blog Twitter: jowyang

35. 35 About Us Altimeter Group is a Silicon Valley-based strategy research and consulting firm that provides companies with a pragmatic approach to disruptive technologies. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.