This document provides guidance on creating a coherent social media strategy. It discusses assessing organizational readiness, setting objectives, learning about customers through social media, engaging in dialog, using social platforms to provide support and drive innovation. Key recommendations include understanding customer social behaviors, integrating social data into workflows, encouraging two-way conversations, scaling social support, and developing open leadership to give up some control while inspiring commitment. The document advocates a holistic strategic approach to social media focused on building relationships.

1. Creating A Coherent Social Media Strategy 1 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com

2. 2

3. It’s time to move past experiments 3

4. It’s about RELATIONSHIPS © 2011 Altimeter Group

5. 5 Agenda Strategy Lead Prepare

6. 6 Agenda Strategy Lead Prepare

7. Strategy Process Stages 7

9. Level of strategy (corporate, biz unit, brand)

10. Identify key metrics

12. Objectives differ by level 10

13. Ask the Right Questions about Value 11 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

14. Use appropriate metrics at each level 12 Business metrics: revenue, CSAT, reputation. Social media analytics: Insights, share of voice, resonance, WOM. Engagement metrics: fans, followers, clicks.

16. Mindset

17. Roles

18. Stakeholders

19. Monitoring

20. Reporting

21. Customer Profile

22. Market Analysis

23. Processes

24. Organizational Model

26. Benchmarking Social Readiness (After) 15 April 2010

29. Define Your Strategy With Objectives 18

31. Expertise

33. 62% visit company profiles on social media sites

34. 55% visit company blogs

35. 51% participate in online business communities or forums

36. 49% ask questions on Q&A sites

37. 29% use Twitter to find or request business-related information Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393) 20

38. People in B2B use social media for work 21 Source: 2009 Business.com Business Social Media Benchmarking Study(n=2,393)

39. 22 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

40. Track brand mentions with basic tools 23 What would happen if every employee could learn from customers?

41. Integrate monitoring with workflow 24 Other providers Alterian BrandsEye Buzzmetrics Cymfony Sysmos Visible Tech. From Radian 6, to be acquired by Salesforce.com

42. Be sure to track the actual conversations, not just the tweets 25 @JaimieH is a top diabetics advisor who was talking with an insulin pump maker

43. How KLM listened and surprised flyers 26

44. Go beyond basic monitoring to analytics 27 Make course corrections nearly real-time. Use predictive analytics to anticipate demand.

45. Shoppers want to be “known” 28 I walk into the store Store knows it’s me Give me offers And plans my visit

47. 31 Learn also from your employees

48. Go beyond traditional data to understand your customers 32 Demographic Geographic Psychographic Behavioral Socialgraphic

49. Where are your customers online? What social information or people do your customers rely on? What is your customers’ social influence? Who trusts them? What are your customers’ social behaviors online? How do your customers use social technologies in the context of your products. Socialgraphics asks key questions 33

50. Engagement Pyramid 34

51. Engagement Pyramid - Watching 35 Watch videos Read blog posts Listen to podcasts Read tweets Read discussion forum posts

52. Engagement Pyramid - Sharing 36 Share a link Share photos Share videos Write a status update Retweet

53. Engagement Pyramid - Commenting 37 Comment on a blog Write a review Rate a product Participate in a discussion forum @Reply on Twitter

54. Engagement Pyramid - Producing 38 Write a blog Create videos or podcasts Tweet for an audience

55. Engagement Pyramid - Curating 39 Moderate a wiki or discussion forum Curate a Facebook fan page

56. Engagement Pyramid Data 40 Source: Global Wave Index Wave 2, Trendstream.net, January 2010

57. Conduct research to identify the social behaviors of your target customer Also identify: Where are they online: Surveys or brand monitoring Who do they trust: Surveys Who do they influence: Survey or brand monitoring How they use these tools in context of your products: Most often surveys. When you first understand your customers, your marketing efforts will naturally unfold. Putting socialgraphics to work 41

58. Listen and learn from your customers. Start with basic monitoring tools, but quickly evolve them. Invest in analytics that matter. Use metrics that are relevant to your business. Understand the socialgraphics of your customers. Summary - Learn 42

59. 43 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

60. Conversations, not messages Human, not corporate Continuous, not episodic The New Normal 44

61. Blogs establish thought leadership 45 CEO Richard Edelman has been blogging consistently since Setpember 2004.

62. SonyEurope rewards Twitter followers with discount that drives significant sales 46 SonyEuropes 10% off VAIO laptops deal to celebrate their 1,000 Twitter follower lead to over €1m worth of product ordered.

63. VW inserted a tweet analyzing tool into their banner ad to suggest a specific model 47

64. Spain Tourism used multiple channels to encourage dialog/sharing 48

65. Kohl’s engages directly with customers 49

67. Insert your content into newsfeed of fans

69. Premier Farnell supports engineers with community, and employees with “OurTube” 52

70. Give out Flip cameras/smartphones Set up an internal “OurTube” Transcribe conversations into emails and posts Ask people for best practices, reactions, advice, opinion in areas of passion. Recognize key contributors. Getting people to share within your company 53

71. Tivo joined an existing community 54

72. 55 Advocacy – A five-phase approach

73. Tesco engages influencer blogs 56 Blog post series highlights & drives traffic to blogs by Influencers. Twitter feed encouages engagement too.

74. Have an authentic conversation with your customers that they want to have. Engage across and through social communities Engage off of your Web site. Recruit an army of customer advocates. Respond to your prospects and customers in real time. Summary - Dialog 57

75. It’s about RELATIONSHIPS © 2011 Altimeter Group

76. Support and Innovate With Your Customers 59 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com

77. It’s about RELATIONSHIPS © 2011 Altimeter Group

78. 61 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

79. Vodafone UK uses Twitter to proactively communicate with customers 62 Vodafone UK humanizes their Twitter account by including pictures of their support team and identifying different respondents by an “^” and the team member’s initials.

80. Ritz-Carlton managers monitor Twitter for real-time service 63 Property manager helped unhappy honeymooners

81. Support during a crisis 64 Used #euva and #ashtag to track conversations Source: simplifying.com

82. DellOutlet supports sales with Twitter 65

83. Question & Answer sites provide opportunity for support

84. Q&A encourages dialog too 67

85. iRobot ties discussion boards into customers support 68 iRobot escalates unanswered questions into support centers

86. Salesforce.com Service Cloud ties social channels back to customer data 69

87. Solarwinds’ community is strategic 70

88. Retailer Best Buy has 2,500 employees providing support via Twitter 71

89. Real-time isn’t fast enough. Integrate “social” support into your support infrastructure. Scaling support to meet the groundswell will require that you create your own groundswell. Summary - Support 72

90. 73 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

91. P&G uses reviews to improve products 74

92. Danish bank ask for help to improve mobile banking on Facebook 75

93. Finnish post created an idea exchange 76

94. Fiat invites ideas for a new car 77

95. Archer collects product development ideas in a private community 78

96. Starbucks involves 50 people around the organization in innovation Over 100 ideas have been implemented

97. Dell taps employee ideas too

98. P&G goes outside for innovation 81 P&G made outside-in innovation a priority

99. P&G developed technology from diaper research Reached out to competitor Clorox to form a new joint venture Helped Glad become Clorox’s second largest brand Success story: Glad Press’n Seal 82

100. ModCloth has customers merchandise new products 83

101. Innovating can come from any customer or employee interaction. Dedicated innovation communities require significant commitment and nurturing. Extend your firewall to bring customers into your organization. Summary - Innovating 84

104. Company and leadership implications

105. Risk identification

107. 87

112. Likenomics evaluation 90 User experience impact - moderate People with high social currency will enjoy benefits, richer experiences, receive psychic income. People with low social currency will find ways to get it. Business model impact – moderate New economics create opportunity for people who understand Likenomics to leverage gas. The cost of accessing social currency will increase, and raise barriers to entry. Ecosystem value impact – none

113. 91 2) Social Search – Beyond Friends to Interests Social sharing rises as a search ranking signal, esp in the enterprise Create a social content hub to gain traction Use microformats to highlight granularity (e.g. hProduct & hReview)

114. Social Search evaluation 92 User experience impact - Moderate Search becomes more useful, relevant to people. Business model impact – Moderate SEO takes on a different dimension, rewards companies with social currency, personalized experiences. Ecosystem value impact – Moderate New power brokers are social data/profile players who capture activity data and profiles. Google has little of either.

115. Social monitoring merges with Web analytics HOT: Omniture, Coremetrics/IBM, Webtrends Technology like Hadoop makes it easy for companies to tap “Big Data” E.g. New York Times making its archives public Twitter archived by Library of Congress Facebook Cassandra, Amazon Dynamo, Google BigTable Data visualization tools make it easy to digest Balancing privacy and personalization 3) Big Data 93

116. Big Data evaluation 94 User experience impact - Low Most users won’t directly experience Big Data. Business model impact – High New businesses and initiatives can be started at very low cost. Ecosystem value impact – Moderate Owners of Big Data repositories can assert control, demand payments for access.

117. 95 4) Game-ification

118. TurboTax used “games” to encourage sharing and support 96 Social design can enter training, collaboration, support, hiring

119. Gamification evaluation 97 User experience impact – High Experiences get richer, more engaging Business model impact – Moderate Work gets done faster, cheaper. New organizational structures and cultures emerge. Ecosystem value impact – Low Service providers will remain focused, boutique firms.

120. 98 5) Curation

121. Curation evaluation 99 User experience impact – Moderate User authority established from better curation, better content is organized well. Business model impact – Moderate Easier for businesses to create their content. Ecosystem value impact – Moderate Individuals challenge media and brands as authorities – and publishers that siphon off ad dollars.

122. Summary of disruptions 100

123. It’s about RELATIONSHIPS © 2011 Altimeter Group

124. Leading The Open Organization 102 Charlene Li Altimeter Group 2011 April 12 Twitter: @charleneli Email: charlene@altimetergroup.com

125. It’s about RELATIONSHIPS © 2011 Altimeter Group

126. 104 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

127. OUT ofCONTROL? © 2011 Altimeter Group

128. 106 © 2011 Altimeter Group

129. 107 © 2011 Altimeter Group

130. 108 How to give up control but still be in command © 2011 Altimeter Group

131. Open Leadership 109 Having the confidence and humility to give up the need to be in control, while inspiring commitment from people to accomplish goals

132. 10 elements of openness 110

133. Explaining strategic decisions 111 Open book management Managing leaks

134. 112 Updating with every day stuff

135. Kohl’s has conversations on Facebook 113

136. Open Mic: When people contribute 114

137. Crowdsourcing new Walkers flavour 115

138. Open platforms make it easy to partner and share 116 Open architecture Open data access

139. 117 Centralized Democratic Distributed Consensus Decision making models

141. 16 Councils, 50 Boards make strategic decisions

143. Complete the Openness Audit 120

144. Traits of Open Leaders 121 Authenticity Transparency

145. Transparency as an imperative 122

146. How Best Buy became open and social 123

147. Best Buy’s First Social Media Experts 124 Steve Bendt & Gary Koelling

148. The Executive Advocate 125 Barry Judge CMO of Best Buy

149. Barry’s first post 126

150. The Premier Black Fiasco 127 6.8 million emails sent instead of 1,000 test

151. Developing Open Leaders © 2010 Altimeter Group

152. “You can imagine the Chatterati creating as much value as an SVP in the organization by sharing their institutional knowledge and expertise - and we should look at compensation structures with that in mind.” - Marc Benioff, CEO of Salesforce.com © 2010 Altimeter Group

153. 130 Agenda Strategy Learn Dialog Support Innovate Lead Prepare

154. #1 Create a Culture of Sharing 131

155. #2 Discipline is Needed to Succeed 132 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 Adapted from US Air Force Comment Policy Let post stand and monitor. © 2011 Altimeter Group

156. Five ways companies organize around social media 133

157. #3 Ask the Right Questions about Value 134 “We tend to overvalue the things we can measure, and undervalue the things we cannot.” - John Hayes, CMO of American Express © 2011 Altimeter Group

159. Size of their networks

160. Percent of referred people who purchase

162. Frequency and value of the support+ Value of support + Value of ideas Spreadsheets for all calculations available at open-leadership.com

163. 35% increase in LTV captured 136

164. Find more fans with large networks Encourage fans to make more referrals Make decisions with metrics 137

165. No relationships are perfect Google’s mantra:“Fail fast, fail smart” #4 Prepare for Failure 138 © 2011 Altimeter Group

166. 139 Create Sandbox Covenants © 2011 Altimeter Group

167. Structure your risk-taking and failure systems to create resilience 140 Conduct pre- and post-mortems. E.g. Johnson & Johnson after Motrin Moms. Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. E.g. Ford’s “lost” Fiesta. Build in responsiveness. E.g. Best Buy’s Black reward card. Prepare yourself for the personal cost of failure.

168. Audit the last few failures you and your organization experienced. 25% - what happened. 25% - what you learned. 50% - what you will do next. Keep a failure file. Identify risk-taking training needs. Build failure into your planning and operating processes. Create support networks for the inevitable failures. Action plan to prepare for failure 141

169. It’s about RELATIONSHIPS © 2011 Altimeter Group

170. 143 Give Up Control AND STILL BE IN COMMAND © 2011 Altimeter Group

171. Charlene Li charlene@altimetergroup.com charleneli.com/blog Twitter: charleneli For slides, send an email to slides@altimetergroup.com For more information & to buy the book visit open-leadership.com © 2011 Altimeter Group