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Presentation to Pitch & Mix at Idea Space on 23 September, 2010
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SOCIAL MEDIA & STARTUPS
Presented at Pitch & Mix at IdeaSpaceCambridge, 23 September 2010
Eric SwainManaging Director
Businesses need an Internet presence
if
The Internet is increasingly social
and
Businesses must have a social element
then
David Gillespie
WHAT
social networkssocial mediasocial business
DON’T FOCUS ON THE TOOLS!
It’s about people having conversations, connecting
and engaging online.
unsocialadvertiseattention
targettelevised
one to manyimpressions
campaignscontrol
socialentertainparticipationcontentfriendedone to one, many to manyexpressionsmovementsleverage
Unsocial / Social
CONNECTED 2.0 PRINCIPLE
CONNECTED 2.0 PRINCIPLE
90-9-1 PRINCIPLE
10
“In social groups, some people actively participate more than others… Social participation tends to follow a 90-9-1 rule:”
SOCIAL MEDIA AND STARTUPS
challenges
resourcesunknown
noisenot your customers
no brandresources
need speed
opportunities
access to passionideareachnetworksfresh brandfreedombuild real relationships
WHY
social networkssocial mediasocial business
The new marketing is about being found by customers when they are looking to buy what you are selling.Be found
when and where your customers are looking
This means on the
Internet and the lips of
friends
A recommendation from a friend would make 71% of people more comfortable with a product or service – more so than advertising (15%) or even personal experience (63%)
MediaLab Startup Ideas
VERTICAL ENGAGEMENT
Between the org and peopleCampaign-based, valuable but limitedThis is your engagement activity
LATERAL ENGAGEMENT
Between peopleFor startups, this starts with the Idea“We have to share this”
http://blog.nielsen.com/nielsenwire/nielsen-news/social-networking-new-global-footprint
2/3OF THE GLOBAL INTERNET POPULATION VISIT SOCIAL NETWORKS
The power of social media lies in people using these tools – the creation of self-organised communities of like-minded people – making it a good way for businesses to understand, inform and connect with the people who buy their products and services.
RE-THINKING MARKETING
old marketing
telemarketingprint ads
direct mailtrade showstv/radio ads
spam
interruption!
new marketing
seo/search marketingbloggingsocial mediarssviral videosword of mouth
permission
Startup Ideas
“My customers don’t use social networks”
WHY
Relationship
Authority
Discovery
RELATIONSHIPS
AUTHORITY
DISCOVERY - 75/25 GOOGLE PRINCIPLE
75% 25%
Google weighs external links over on-site keywords 75/25
Search click rates SEO
DISCOVERY – SOCIAL SEARCH
WHY? - ROI
Cost Reduction
• Ops efficiency
• Reduced marketing spend
• Shorten sales cycles
• Cheaper customer service
• Market research
• Business intelligence
Revenue Increase
• More transactions
• Higher yield
• Net new customers
• Customer loyalty
ROI – F.R.Y.
FrequencyIncrease how often customers buy from us
ReachIncrease net number of transacting customersIncrease net number of transactions per customer
YieldIncrease average spend per transaction
FRY from Olivier Blanchard My illustration
Gary Vaynerchuk grew his family wine shop from $4 million to $50 million using social media.
$0 Twitter = 1,800 new customers
$7.5k Billboards = 300 new customers
$15k Direct Mail = 200 new customers
$0 Twitter = 1,800 new customers
B2B
Content
Expert
Show (not) Tell
Relationships
Trust
Soften & Support
Network
Connections
Knowledge base
StoryTools
Framework
WHAT
social networkssocial mediasocial business
Marketing SalesService & Support
Innovation
PRCustomerExperienc
e
Marketing Insights
Rapid Social Marketing Response
Social Campaign
Social Business/Social CRM
Social Event Managemen
t
Social Sales Insights
Rapid Social Sales
Response
Proactive Lead
Generation
Support Insights
Rapid Social Response
Peer-to-Peer Unpaid Armies
Innovations Insights
Crowdsourced R&D
Reputation Managemen
t
Enterprise Collaboratio
n
SeamlessCustomer
Experience
VIP Experience
Brand Managment
Use Cases of Social
Altimeter Group
MARKETING CASE STUDY – GRASSHOPPER.COM
http://bit.ly/unr2v
Video and boxes of chocolate covered grasshoppersConnection via social networks – not promotion, just conversation, photos, user videos, etc
1st month: •93% increase in website clicks•187,000 video views•1,461 Tweets to 1M+ followers•More buzz than previous 6 yrs
SALES CASE STUDY – HP 31 DAYS OF THE DRAGON
Blogger outreach ONLY
Promotion of new laptop system – HDX Dragon
31 systems to giveaway – bloggers created contests for their readers
•25,000 entries, website traffic up 14%•50M impression, 10,000 videos created, 380,000 discussions•Dragon sales up 84%, PC sales up 10% (sustained)•blog traffic up 150% - Win/Win
SALES CASE STUDY – HP 31 DAYS OF THE DRAGON
Even after the end sales remainwell above normal – long term effects
Giveaways begin
Giveaways end
HP HDX Dragon Sales Results
CUSTOMER EXPERIENCE CASE STUDY - FRESHBOOKS
Userbase up 300% in 2 years
Customer-centric approach
Twitter engagement key
CONSUMER INSIGHTS CASE STUDY - KODAK
Dismay in the social networks at the name of the new Zi8
Kodak launched a contest to let users choose the next name.
1000s of suggestions via Twitter and blog
Press coverage everywhere
PR CASE STUDY – NESTLÉ
Greenpeace “ad” on YouTube
Facebook censorship
Tidal wave of attacks
Have a plan
Domino’s were slow to react initially, but came good.
HOW
social networkssocial mediasocial business
HOW
1. Listen
2. Strategise
3. Implement4. Manage
5. Measure
LISTEN & LEARN
Social technology adoption by consumers is no longer nascent – it’s nearly a mainstream activity.
To be accurate in your social strategy, you must know the specific behaviors of your customer base.
43
SOCIALGRAPHICS ASKS KEY QUESTIONS
1. Where are your customers online?
2. What are your customers’ social behaviors online?
3. What social information or people do your customers rely on?
4. What is your customers’ social influence? Who trusts them?
5. How do your customers use social technologies in the context of your products.
44
MONITORING AND GRAPHING
THE SOCIAL CUSTOMER
“The Social Web is distributing influence beyond the customer landscape, allocating authority amongst stakeholders, prospects, and peers.” – Brian Solis
CLVSocial
Landscape
CRVCustomer Social Customer
STRATEGY
Align social with strategic business goals
Set measureable objectives (measure the right things)
Create strategic plan and financial model
Develop tactics to achieve strategy
Refer to what you learned monitoring
Who? What? When? Where?
Implement / Integrate
Staffing
Cross-departmental
Tools, configurations, workflows
Training
Company guidelines, policies, procedures
MANAGE
Day to day execution
Content production/publishing
Distribution
Community engagement
Business intelligence
Customer support
Market research
Monitoring
MEASURE
Are the objectives being met?
Do we need to reassess or refine the strategy/tactics?
Are we successful?
HOW
1. Listen
2. Strategise
3. Implement4. Manage
5. Measure
TAKE AWAY
52
Examine your 2010 goals
Pick one where social can have an impact
Where to start? Align social with strategic goals
Start small, start now
Pick a goal
Startup Ideas
