9. USA: Who do Consumers Trust?
• Friends: People who like you
– Offline
– Online
• Peers: People like you
– Similar background
– Similar situation
• Experts
10. average
(1-10 scale) | China: Credibility
8.5 | Friends and family
8.0 | Internet word of mouth
7.0 | News and authorities
5.3 | Sales person
5.0 | Ads
Source: CIC 2010 Efluencer Survey
11. Two meanings of “social”
1. Social graph
Who is connected with whom?
2. Social data
12. Case study: What data for
targeting a new phone product?
Traditional segmentation Connection data
• Demographics • Who called who?
• Loyalty
13. 1.35%
Adoption
rate
4.8x
0.28%
Traditional Connection
segmentation data
15. Result: Amazing conversion rates
since customer chooses
Content (the item)
Context she ( just bought that item)
Connection (she asked Amazon to email her friend)
Conversation (information as excuse for communication)
16. Two meanings of “social”
1. Social graph
2. Social data
Consumer create and share data
Knowingly and willingly
21. Local
Absolute: Place, time
• Individual: Identity, History
• Aggregate: Insights
Relative: Distance
• To a business: Advertising
• Between people: Dating
• Between devices: Risk
29. In the last Minute…
10,000,000 Web searches
Ad requests
Text messages
1,000,000 Facebook posts
100,000 Product searches
Tweets
30. Fundamental Shift in Communication
One-way Two-way
Asynchronous Synchronous
Planning Interaction
List Flow
Private Public
31. A. Production: Everybody creates data.
B. Distribution: Everybody shares data.
C. Consumption: Everybody uses data.
•
The study of the consumer has changed
•
The consumer has changed
44. Product Culture
Help people make better decisions
Make it trivially easy for them to contribute
Give people an excuse to connect
Note: Products/services that use social data improve over time
Take the test yourself http://socialdatalab.com/intelligence
45. Data Culture
Do not have Somewhere already
Cannot get Can! User will give
Must not use Embrace it
Be secretive Be transparent
Information Information
asymmetry symmetry
46. Company Culture (“DNA”)
1. Facebook
Designed for contribution and distribution
2. Google
Take whatever you can get
3. Amazon
Customer-centric: Help them make decisions
52. e-business
me-business
we-business
aweigend@stanford.edu
+86 138 1818 3800
www.weigend.com
Dr. Andreas Weigend, Social Data Lab
Editor's Notes
What drives the revolutionThis is why people do thingsBut before, explain the title
What they buy (that LV bag)Who they do
Illusion of control
Reputation based on traditional institutions?what bestows authority?)Who do we listen to?Past actions? Need for persistent identity
EfluencerKey opinion leaders, main contributors onlineOn average, 55 hours / week online, half of them 8+ hours online / dayBoth social influence and self expression
based on experience, intuition, and data Picture of graph from FosterLeveraging the social graph
based on experience, intuition, and data Picture of graph from FosterLeveraging the social graph“Birds of a feather shop together”Hill, Provost, & Volinsky, Network-based Marketing. Statistical Science 21 256–276 (2006)
MerchandisingDefine viral marketing10 years agoAmazon vs FacebookAmazon is about products, interactions with store, not with friends. No NewsFeed.Facebook is about interactions between friends.
Information the purpose for communication
on averageChange behavior: of individualOf citiesWhy do people do this? They get attention? They get belongingTHIS IS VERY DIFFERENT FROM A SOCIAL MEDIA / TWITTER CAMPAIGN
Lightweight E.g., QR code -- classhttp://www.youtube.com/watch?v=EHlN21ebeakPhone = Proxy for the personCf partner?How do you feel when you leave home without mobile?Playground
Data source
Data exhaustOther deep questions:What (if anything) does it mean to own data? (Like who owns the air)But: very different properties from physical goods(1) Ideas here: co-creation. I give you one, you give me one, we both have 2.Different for $$.(2) While data is infinitely replicable, money isn’t.No “UNDO” button in fraud (what if someone has spent the money they stole?)
- (airplanes vs cars) emphasize the qualitative difference on social data - i am NOT talking about transaction data- i am talking about the next quantum leap . - It is like airplanes over roads. cars are still more important than ever of course, but it is a qualitatively different discussion. And even more important than the current numbers is the growth rateMost important number to measure growth is time to doublingAlso 10M (24 * 60 = 1000) ad requests per minute through the ad exchangeshttp://techcrunch.com/2010/11/16/the-future-will-be-personalized/90M tweets / day90000000 / 24 / 60
based on economics of communication
DC: Redo, as discussed in ER
companies thought they own their customer switching costs largely gonecompanies thought they own product -> who knows more about my phone: manufacturer? Carrier? … or the web?companies thought they own brand co-creationcustomers talk about whatever they want to talk about CONVERSATION Ultimately, all about data. Social data.
emphasize how different this is from the past
emphasize how different this is from the past
Confusion
This is why people do thingBut before, explain the title
Coming soonto a theatre near you:Identity Wars: The Battle to Control Personal DataPersonal data is the doppelganger of the consumer, her very identity as a commercial being. Open the floodgates, as most of the vast quantities of enterprise data generated each day is - one way or another - personal. Data that's transactional, social, local, mobile and on and on.As the leading players jocky for position, control is the name of the game, and the stakes couldn't be higher. We are early in the process of establishing a consumer identity ecosystem, standing on the cusp of major developments. New paradigms will be established and astounding enterprise power stands to be gained. Does anyone own consumer identity data? What precisely does "ownership" of personal data mean? In any case, the objective is not to own the transaction but to control the data it generates. Facebook and Google are central, but dozens of established enterprises and innovative startups are in the game.