SXSW Interactive 2012 Why Small Is the New Big and Big Is the New Small Saturday, March 10 12:30PM - 1:30PM Hilton Garden Inn, Rio Grande Audio Podcast and full description available here on conference Web site http://schedule.sxsw.com/2012/events/event_IAP10015

1. Why small is the
new BIG and
BIG is the new small
@jasonstoddard & @katmandelstein
Hashtag for session: #eggcellent

2. The Fifth Era of IT
Technology enabled
business transformation
over the years
Social
Social
Internet
Internet
PCs
Departmental
Mainframe

3. Market Forces: The 3 P s
People Process Proximity

4. A Maxim
"The Life of a human being does not exist merely in
the sphere of goal-directed verbs. It does not consist
merely of activities that have something for their
object. I perceive something. I feel something. I
imagine something. I want something. I sense
something. I think something. The life of a human
being does not consist of all of this and its like.
All this and its like is the basis of the realm of It.
But the realm of You has another basis.” – Martin
Buber, Philosopher via I and Thou

5. — I
— You
— It
— Me & You
— I & It
— You & It
— It & It

6. Scarcity is a Myth
Leverage your sausage

7. Competition is NOT Obvious
Don t assume you know yours

8. Going Global vs Acting Local
è

9. Social Business Characteristics

10. Image: getrealtypepad.com

11. Small Business Advantages
— Agility
— Personalization (Inherently social: “Sometimes you
wanna go, where everybody knows your name.”)
— Specialization
— Proximal
— Extra-legal ;-)

12. Small Business Challenges
— The Handshake Problem
— Retention (Customer and Employee)
— Cash strapped; capital constraints
— Continuity (brand (association transference),
knowledge, service, product, deliverability)
— Scale (The Accordion Effect)
— Accountability

13. Meet the Small Business
Say hello to the Liedeker family. Drew and Eileen own
a residential maid service franchise. In 2010, their
small business served over 700 homes in Greater
Austin, Texas. In 2010, Drew’s business:
• Grossed ~$2.3M in revenue.
• Invested ~$14k, monthly in marketing
spend.
• Invested $125 - $435 to acquire a new
customer.
• Retained ~ 97.3% of his customers, week
over week.
• Drew has a MBA in finance. Drew has no
coding or design ability. Most of his
marketing support is from corporate or
vendors/consultants.

14. Drew’s Perspective:
“Dating back to 2003, I’ve seen and heard it all. I’ve
made many mistakes, especially in marketing. I used
to read everything I could get my hands on, be up on the
latest trends, follow every guru. Now, I have a family.
Every day I wear 20 hats and marketing is a weakness.
Honestly, I avoid it… I don’t have time to learn a new skill
much less a new platform, but I know I need to target
the right customer to scale my business on my terms.
I need something simple, that holds me accountable,
gives me actionable information and still let’s me get
away to pick up our kids from school, enjoy my wife,
enjoy my life.”

15. Most Trusted ITCs

16. The Birthday Campaign

17. Collect Messages Formulate deals Communicate deals Conduct Transactions
Self-serve Coupons Web site & widgets Basic storefront
Assisted-serve - Quantity based Mobile App (geo) Collect payment
Types: - Time specific
SMS/e-mail alerts Transfer payments to
- Sale/clearance - Expiration
merchandise, “deals” - Purchasable coupons Social business, partner, resellers if
- Just-in time offers, Deal of the Day - Facebook Pages, Places appropriate
- Facebook Ads
coupons -Minimum to purchase
- Twitter
Manage fulfillment
- Announcements, -Maximum to purchase Basic Accounting
events, milestones Gift cards Print Advertising
- Third-party advertiser - Reverse publishing Infrastructure
coupons Billboards/signage

18. Process
Establish
Implement
Cra:
Op;mize
Analyze
Report
campaign
performance
op;mal
campaign
in
data.
results.
goals.
metrics.
rewards.
real
;me.

19. BIG is the
new small
Image from San Francisco Sentinel

20. Big Business Advantages
— Global Reach with ability to staff resources on
the ground in local markets
— Diversification of Workforce
— Business Process Optimization
— Deep Pockets
— Reserve Capital
— Can afford 360 Marketing Programs
— Diversification of Offerings
— Innovation: R & D

21. Big Business Challenges
— Geographically Dispersed Workforce
— Challenging to react quickly
— High visibility of mistakes
— Commoditization of offerings
— Expense pressure to reduce E:R ratio
— Public company return to shareholders

22. Meet the Big Business
Say hello to the IBM family. A 100 year old company
built to enable businesses with technology and
services. Over 430,000 IBMers globally. Owned by
thousands of shareholders including Warren Buffet.
Founded by TJ Watson. Led by Ginni Rommety today.
• Revenue: $106,91B
in 2011
• Net Income:
$15,855B in 2011
• Most Patents for 19
Consecutive Year
• IBM Stock over
$200 per share

23. Ginni’s Perspective:
“When I say "make a new market" I
really believe one of the things that
will distinguish businesses into this
next decade is this area of how they
use information. I don't mean that as
a technical point. I mean this really,
truly as predictive, analytics, I think
it'll change culture, it'll change
everything that you do. And I believe
it'll differentiate the winners and the
losers no matter what business you
are in and how you do it.”

24. Marketing Automation
Awareness Interest Desire Action
15 points 50 points
5 points 10 points
Follows
link
or
Registers
&
Searches
for
Downloads
BI
Downloads
Registers/
ROI
Tool
ROI
Paper
BI
Case
Study
Attends
BI
Event
5 points
5 points
Receives
Email
for
BI
Receives
ROI
Tool
Prospect
Email
Invite
Re-­‐enforcing
Emailed
Email
Topics
to
BI
Event
Invitation
to
BI
Event
25 points
LDR
Calls
to
Qualify
Qualified Lead
Passed to
Sales
0-10 POINTS 50-100 POINTS 100+ POINTS

25. Key Measures for Both
— Revenue to Expense
— Customer Acquisition
— CPM/CPC
— Lifetime Value

26. Time for #eggcellent Simulation