Visit Lanarkshire Nov 2011

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Social Media for Sustained Business Growth

Dr Jim Hamill – jim.hamill@energise2-0.com Alan Stevenson – alan.stevenson@energise2-0.com Vincent Hamill – vincent.hamill@energise2-0.com

www.energise2-0.com

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A conversationnot a broadcast presentation

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Agenda

Questions?State-of-Play

VideosKey things to

remember about SM‘Getting There’….

Even more questions….

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Let’s start with a few questions?

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Questions About Social Media?

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Social Media: The State of Play

Where are you with social media?

What progress has been made?

Where are you going?

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Our View on Progress Made

Interest and enthusiasm has grown rapidly

Everyone is now a social media expert

Channels are being set up

But lack of strategic planning leads to problems down the line - resourcing, content,customers, performance measurement etc

A broadcast mentality prevails…….

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Is there something fundamentally wrong with our approach to Social

Media?

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Something Wrong…..

In too many companies, social media is seen as just another PR/marketing channel for broadcasting messages AT customers telling them how good we are

Are our customers listening anymore?

The rules of the game have changed!

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Our Role Today

Encourage you to adopt a new approach to social media – an ‘outside-in’, customer led approach

Use social media as an engagement platform for talking WITH rather than AT customers

Also – adopt a strategic approach‘Social Media Planning Pays’

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Be Social

New ‘mindsets’ are required to be successful in social media

‘BE SOCIAL BEFORE DOING SOCIAL’

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Two Videos

• The Social Media Revolution

• The Advertiser/Customer Break-Up

Ask yourself – So What?Implications for my business?

Implications for Lanarkshire/Scottish tourism?

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Social Media Revolution

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Advertising – Customer Breakup

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The rules of the game have changed

The 5 key things to rememberabout Social Media

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1. It’s a Revolution

A fundamental and revolutionary changein online behaviour, expectations and the online customer experience. The end of the ‘read only’ internet

Content generated by the network for the network

We are no longer passive consumers of content/brand messages

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2. It’s Social

A conversation not a broadcast platform

Conversations are taking place relevant to your brand – are you listening?

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The Connected Consumer

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3. Power Shift

Social media empowers customers, empowers the network

We no longer control the brand The brand becomes the customer

experience of the brand – experiences that are widely

shared online

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4. Declining Effectiveness

Declining effectiveness of traditional approaches to sales and marketing Does anyone listen any more?

We are no longer passive sheep waiting to be ‘driven’ to your web site

If you treat us like sheep, we will tell youto ‘flock off’.

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Do You Listen?

Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (www.slideshare.com)

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Do You Listen?

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5. The End of Business as Usual

New ‘mindsets’, new business approaches and new performance measures are required

NOT a broadcast medium. Its about listening to and engaging with customers, partners, your community, your tribe

This is something we are not very good at doing. We prefer telling people how good we are

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The End of Business as Usual

‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for

engaging with and energising customer and network relationships

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New Performance Measures

• Business success depends on the quality of your customer base; the strength of the relationship you have with quality customers; and your ability to leverage that relationship

• In a social media era, business success depends on the – Quality of your network– Relationship strength– Ability to leverage

The 6Is Approach

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Performance Measurement

Involvement – network/community numbers/quality, time spent, frequency, geography

Interaction – actions they take – read, post, comment, reviews, recommendations

Intimacy – affection or aversion to the brand ; community sentiments, opinions expressed etc

Influence – advocacy, viral forwards, referrals and recommendations, social bookmarking

Insight – customer insight Impact – business impact

Social Media Monitoring Tools –Audit, Assess, Impact

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The ‘6Is’ Approach

Insight and Impact

Involvement

InteractionIntimacy

Influence

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Bob Dylan

Come gather 'round peopleWherever you roam

And don’t criticiseWhat you can't understand

Your sons and your daughtersAre beyond your command

Your old road isRapidly agin‘

Then you better start swimmin’Or you'll sink like a stone

For the times they are a-changin’

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A note on Inbound Marketing

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Inbound Marketing

Spread your content as widely as possible to get found

Pull people to your web site, blog etc

Flood your ‘funnel’ with suspects

Analyse and Convert

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Inbound Marketing

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Inbound Marketing

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What’s wrong with this approach?

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Drowning in an Sea of Noise

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Our Response

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The Customer Manifesto

We are not sales suspects, prospects or leads. We do not want to be converted

We are no longer an ‘audience’We are people. In fact, ‘We Are The People’

We are your customers and we are King! Social media empowers us. We control the Information Age.Welcome to our world, not yours!

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The Customer Manifesto

Don’t treat us like passive sheep waiting to be driven to your web site or blog

Use social media to deliver exceptional Customer Experiences

That way, we will become brand advocates and ‘spread the word’ for you

Our network will listen more to us than you

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We are the Children of the Revolution

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‘Getting There’

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Practical Adviceand Next Steps to Avoid the Road to Nowhere

‘Social Media Planning Pays’

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‘Getting There’

• Get more involved• Learn more• Develop a strategy• Implement• Monitor performance and business impact

‘Be Customer Led’

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Get more involved and learn more

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A Workshop Near You…..

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Another Workshop Near You..…

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Develop a Strategy

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Social Media Strategy and Action Plans

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Social Media Strategy and Action Plans

• Use a simplified Balanced Scorecard approach to social media strategy development and implementation

• Will ensure that your future social media actions and initiatives are fully aligned with and supportive of agreed business goals; that KPIs are agreed for evaluating on-going social media performance, business impact and ROI; and that all key success factors are considered, including organization, people and resource aspects

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Develop a Strategy

• What is the overall social media vision for your organization?

• What are the key objectives and targets to be achieved?

• Who are your customers?

• What are the key actions and initiatives you need to take?

• Organisation, resource and people issues

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Social Media Strategy Map

Brief statement of your overall 2.0/Social Media Vision and Mission Strategic Objectives Customer Perspective Internal Management Perspective Organisation Perspective

Strategic Objectives KPIs / Targets

KPIs / Targets KPIs / Targets

KPIs / Targets

Customer Group 1

Customer Group 2

Customer Group 3

Customer Group 4

2.0/Social Media Initiative 1 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 2 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 3 - Objectives - KPIs - Targets - Actions

2.0/Social Media Initiative 4 - Objectives - KPIs - Targets - Actions

Organisation People Resource

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Key Questions to Address

• What is the overall social media vision for your organisation?• What are the key objectives and targets to be achieved from

social media? Are these fully aligned with and supportive of your overall business goals and objectives?

• Who are your customers? Where do you find them ‘hanging out’ on social media? How can you best engage with them?

• What are the main Social Media Actions and Initiatives you need to take – short, medium and longer term?

• What generic social media strategy should you follow (number of channels used/ depth of engagement in each channel)?

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Key Questions to Address

• For each priority Social Media Channel, what are your core objectives for that channel; what KPIs will be used for measuring on-going channel performance; what are your targets for each KPI; what key tasks are needed to achieve these targets?

• Do we have the right organisational ‘culture’ and ‘mindset’ for Social Media? ‘Be social before doing social! Is the right organisational and decision-making structure in place?

• Has agreement been reached on resource allocation?• Who will be responsible for your social media activities? What

balance has been agreed between internal and external roles and responsibilities?

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Key Questions to Address

• Who is the Social Media Champion?• Do you have agreed Social Media Policies and Guidelines in

place covering ‘Proper Use’, ‘Content Management’, ‘Customer Response Times/Quality’ and ‘Legal’ aspects?

• Performance evaluation and business impact

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Potential Business Benefits of Social Media

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Business Benefits

• Market Knowledge

• Customer Insight and Understanding

• Customer Interaction

• Enhanced Customer Experience

• Business Intelligence

• Reputation Management

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Business Benefits

• Improved Sales and Marketing

• Identify and network with high value, high growth prospects

• Product Development and R&D e.g. engage and co-create

• Internal cost savings

• Improved Operations and Internal Processes

• Increased ROI

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Potential Business Benefits

5 main areas:

• Market/Customer Knowledge & Insight• Engagement & Reputation Management• Enhanced Customer Experience and Loyalty• Sales/Marketing Effectiveness, Efficiency and ROI• Operations/ Internal Processes (open source and hosted apps)

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‘Be Customer Led’

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Be Customer Led

• Who are our customers, community, tribe?

• Where do they hang out in social media?

• How can we best use Social Media to deliver an exceptional customer experience at all stages of the customer life cycle?

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www.mashable.com

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Who Are Your Customers?

• Your Social Media Strategy should be aimed at building a ‘quality’ customer base i.e. a strong online network of high value, high growth potential customers providing your company with a strong foundation for achieving sustained growth and profitability

• First step:– Undertake a detailed Customer Mapping and

Segmentation Analysis to identify your ‘Most Valuable’ and ‘Most Growable’ customers (actual and potential)

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Strategically position your customers on a Customer Value Matrix based on

Customer AttractivenessProbability of Success

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Customer Value Matrix

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Strategic Implications

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Quality Customer Growth Programme

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Business Benefits of this Approach

• Concentration of effort and resource on `quality’ customers – your ‘Most Valuable’ and ‘Most Growable’ customers

• Improved value delivery to existing high value customers. Build learning relationships with them allowing you to better service their emerging needs and wants through highly customised and personalised products and services

• Maximise customer retention, loyalty and advocacy; ‘Up’ and ‘Cross’ selling opportunities

• Maximise customer profitability and lifetime value

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Business Benefits of this Approach

• Acquiring new `quality’ customers becomes easier because you have got it right for existing customers

• Cost savings and improved marketing/sales efficiency through targeting limited resources on `quality’ customers (actual and potential)

• Building sustained customer and competitive advantage through customer differentiation and brand advocacy

• Erection of loyalty barriers preventing your competitors from stealing your `best’ customers

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Social Media Monitoring

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Monitoring the Conversations

• Use Social Media Monitoring Tools to identify where your customers ‘hang-out’ online and to monitor the conversations relevant to your brand – also for measuring the ‘buzz’ about your brand

• No or low cost tools such as Google Alerts, Yahoo Pipes, Social Mention, Topsy, IceRocket, Blogscope, Blogpulse and ViralHeat

• More expensive and sophisticated tools such as Radian6, Alterian SM2, Sysomos Heartbeat and Infegy SocialRadar

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Social Media Monitoring

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Social Mention - Lanarkshire

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Social Mention - Lanarkshire

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Social Mention - Lanarkshire

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Social Mention - Lanarkshire

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Social Mention - Lanarkshire

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Topsy – Lanarkshire Tourism

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Topsy – Walking Holidays

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Topsy – Walking Holidays

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The Customer Experience

Use Social Media to enhance the customer experience at all stages of the

Customer Life Cycle

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Customer Lifecycle

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Action Plans

Key issues in implementing your social media strategy

– Channel Action Plans– Performance Measurement

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Channel Action Plans

• Once your Social Media Strategy has been agreed, brief Action Plans should be developed for each priority SM channel

• Cascade the Balanced Scorecard approach to each priority channel e.g. Twitter, Facebook, Linkedin etc

• But not ‘Paralysis by Analysis’

• The Action Plan for each channel should include a clear statement of…..

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Channel Action Plans

• Vision• Channel Objectives• KPIs and Targets• Customers• Key Channel Actions and Initiatives for ‘getting there• Organisation, resource and people issues• Tools and applications• Performance measurement• Do’s and Don’t’s

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Performance Measurement

To ensure that your Social Media activities deliver high ROI, it is important to monitor, measure and evaluate your social media performance on an on-going basis. Key questions to address:

• What social media performance measures and KPIs should be used – both in terms of the overall ‘buzz’ created and measures for individual channels?

• What tools/software will be used to assist performance measurement?

• What reports will be produced, for who and how frequently?

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Performance Measurement

Should be undertaken at three main levels:

• Individual social media channels

• Overall ‘buzz’

• Business Impact

Using the 6Is approach

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Organization, Resource and People Issues

• Organization, resource and people issues sit at the bottom of your SM Balanced Scorecard NOT because they are the least important issues to address. In fact, the exact opposite is true. The success of your social media strategy is very much dependent upon appropriate decisions being made in the areas listed below:

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Organization, Resource and People Issues

• Do we have the right organisational ‘culture’ and ‘mindset’ for Social Media? ‘Be social before doing social!’ Is the right organisational and decision-making structure in place?

• Has agreement been reached on resource allocation?• Who will be responsible for your social media activities?• Do you have agreed Social Media Policies and Guidelines in

place covering ‘Proper Use’, ‘Content Management’, ‘Customer Response Times/Quality’ and ‘Legal’ aspects?

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In Summary……..‘Social Media Planning Pays’

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Thank YouQuestions

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