The Business Value of Social Media

The Business Value of Social Networking

October 27, 2009

Presented by: Chris Coldewey, Ian Cruickshank, Marie Foxall,

Nikhil Jagtiani, Sharlene Myers, and Jason Robertson

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what the bleep?

(Source: wikipedia.org)

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what the bleep?

• Social media are media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media supports the human need for social interaction, using Internet- and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Businesses also refer to social media as user-generated content (UGC) orconsumer-generated media (CGM).


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http://en.wikipedia.org/wiki/User-generated_content

http://en.wikipedia.org/wiki/User-generated_content

http://en.wikipedia.org/wiki/Consumer_generated_media


what the bleep?

• Social media are media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media supports the human need for social interaction, using Internet- and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Businesses also refer to social media as user-generated content (UGC) orconsumer-generated media (CGM).

•Social media supports the human need for social interaction, using Internet- and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many).


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Agenda

• What’s changed

• Tools

• Current uses

• What’s the ROI

• Who’s responsible

• What are the risks

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Agenda

• What’s changed

• Tools

• Current uses

• What’s the ROI

• Who’s responsible

• What are the risks

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The shiftFrom Portals to Communities

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The shiftFrom Portals to Communities

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So what are people doing online?

Sent or received email

Used a search engine

Visited news or information websites

Comparison shopped

Visited a newspaper website

Conducted online banking

Visited a magazine website

Used Ig to chat with friends or family

Listened Internet to radio stations

Visited a blog

Visited/browsed online social networks

Played games online against strangers

Played games online against friends 34%

38%

44%

58%

59%

65%

67%

77%

82%

84%

88%

96%

99%

(Source: Q4-2008 The Ipsos Canadian Inter@ctive Reid Report, Canadians Internet users (n=2,520))

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Comparison shopped






Visited a blog




38%

44%

58%

59%

65%

67%

77%

82%

84%

88%

96%

99%


Visited a blog

58%

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Comparison shopped






Visited a blog




38%

44%

58%

59%

65%

67%

77%

82%

84%

88%

96%

99%



44%

Visited a blog

58%

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What are they doing in social media?

19%

12%

17%

31%

32%

32%

44%

46%

51%Use the Internet to contact someone you have lost touch with

Participate in live, online chat over the Internet

Visit/browse an online social network or online community

Take part in computer games with other people online

Download/browse videos from a video sharing network or online community

Participate in an online forum or bulletin board discussion

Use an online personals/dating/ introduction service

Upload videos to a video sharing network or online community

None of the above

(Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824))

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What are they doing in social media?

19%

12%

17%

31%

32%

32%

44%

46%

51%Use the Internet to contact someone you have lost touch with

Participate in live, online chat over the Internet

Visit/browse an online social network or online community

Take part in computer games with other people online

Download/browse videos from a video sharing network or online community

Participate in an online forum or bulletin board discussion

Use an online personals/dating/ introduction service

Upload videos to a video sharing network or online community

None of the above

(Source: Q1-2009 The Ipsos Canadian Inter@ctive Reid Report, Canadian Internet users (n=824))

In Q4’08 - 5.4 hours/week spent on social networking

sites – about 1/3 of all online time –

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...and what sites are people using?

(Source: May 2009, eMarketer)

(000)

0 20000 40000 60000 80000

FacebookMyspace

TwitterClassmates

MyLifeWindows Live Profile

BuzznetBeboDigg

Yahoo! BuzzLinkedin

DeviantARTTagged

hi5Gaia Online

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(000)

0 20000 40000 60000 80000

FacebookMyspace

TwitterClassmates


BuzznetBeboDigg

Yahoo! BuzzLinkedin

DeviantARTTagged

hi5Gaia Online

LinkedIn90%

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(000)

0 20000 40000 60000 80000

FacebookMyspace

TwitterClassmates


BuzznetBeboDigg

Yahoo! BuzzLinkedin

DeviantARTTagged

hi5Gaia Online

LinkedIn90%

Facebook97%

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(000)

0 20000 40000 60000 80000

FacebookMyspace

TwitterClassmates


BuzznetBeboDigg

Yahoo! BuzzLinkedin

DeviantARTTagged

hi5Gaia Online

Twitter2,681%

LinkedIn90%

Facebook97%

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Top misconceptions

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Top misconceptions• Social media is only right for

certain brands

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certain brands

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certain brands

• Social media is all about getting traffic — and quickly

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certain brands


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certain brands


• “By using social media we will lose control of our brand’s image”

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certain brands



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certain brands



• “I don’t need a professional to do social media for me”

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certain brands




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certain brands




• Social media is just a fad

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certain brands




• Social media is just a fad

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Social Media Tools

• Engaging with your customers

• ...where they are

• ...where you are

• Internal use

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Engaging with your customers...where they are

Broad social network platforms

Niche social network platforms

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Engaging with your customers...where they are

Realtime, direct communication

Engaging with each other ...about you

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Engaging with your customers...where you are

Blogs, videos, sites, products

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Internal

Project Management

Communication

Recruitment

Knowledge Management

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How is Social Media being used?

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Marketing & MetricsUsing trackable links allows the company to measure the effectiveness of the message.

Establishing metrics related to sales leads to a better analysis of social media’s potential ROI.

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Marketing & Metrics

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Marketing & Metrics

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Research & Analysis

Reporters assess consumer interest in news topics based on social media response.

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Troubleshooting

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Measuring Success

• “Social software in business” survey- 86% of professionals using social media for

business

• 57% for marketing

• 39% for internal collaboration and learning

• 29% for customer support

- 84% not measuring the ROI

(Source: eMarketer.com)

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Measuring Success: Dell

• @DellOutlet has been using Twitter to post offers and answer questions since 2007

• Now has 1.3 million Twitter followers (Oct 2009)

• Total: $3 million in revenue directly attributed to Twitter activity (June 2009)

- $2 million direct Dell Outlet sales

- $1 million other Dell sales

(Source: Direct2Dell)

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Measuring Success: Salesforce.com

• Launched Idea Exchange in 2006 to collect and prioritize product development ideas from customers

- Allows customers to post ideas they’d like implemented in the next software update

- Community votes on the ideas, helping set priorities

• 5,000 ideas received in first year, customer votes helped establish which would be most valued

• Salesforce put out four new releases in 2007 (vs. two in 2006), with twice as many new features per release

• Half of new features come from Idea Exchange

(Source: Li, Charlene and Bernoff, Josh. Groundswell: Winning in a World Transformed by Social Technologies)

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Measuring Success

• The key to measuring success is knowing what success looks like for you- Who do you want to reach?

- What do you want them to do?

- What’s the best way to get them to take action?

• How can you measure it?

• Think about measurement from the beginning and build it in

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So, whose responsibility is Social Media?

• Here’s some common responses• The Public Relations Departments’!

• Social Media is the responsibility of those who champion it.

• Social Media naturally belongs to HR and Training

• This Social Media thing is quite complex so specialists will emerge with their own box on the Organization chart

• Social Media cannot be controlled, so nobody will own it, there will be no specialists, everybody will just use it!

(Source:http://www.smallbusinessnewz.com/blogtalk/2008/08/05/where-does-social-media-responsibility-fall)

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http://www.smallbusinessnewz.com/blogtalk/2008/08/05/where-does-social-media-responsibility-fall

http://www.smallbusinessnewz.com/blogtalk/2008/08/05/where-does-social-media-responsibility-fall

278 public relations, marketing and human resource professionals in US–based organizations of varying types and sizes were surveyed to identify trends regarding their approach to social media

Findings from the Digital Readiness Report 2009

Eric Schwartzman Tom Smith Don Spetner Barbara McDonald

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So far, Public Relations is leading the Social Media Revolution inside organizations of all types and sizes.

(Source: http://www.ipressroom.com/pr/corporate/social-media-communications-skills-survey.aspx)

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http://www.ipressroom.com/pr/corporate/social-media-communications-skills-survey.aspx

http://www.ipressroom.com/pr/corporate/social-media-communications-skills-survey.aspx

Meet some interesting ‘Others’

• Director of Internal Audit

• General Manager for Online Communities

• A former Barista

• Community Animator

(Source : http://mashable.com/2009/01/21/best-twitter-brands/)

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http://mashable.com/2009/01/21/best-twitter-brands/


Meet some interesting ‘Others’

• Director of Internal Audit

• General Manager for Online Communities

• A former Barista

• Community Animator

(Source : http://mashable.com/2009/01/21/best-twitter-brands/)

The Starbucks account is followed by 421,799 people!

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Are we ready for Social Media: Act II?

• The need for business specific metrics

• How far can Marketing take this?

• A culture of Human Business - Through the doors of Corporate HR and the CEO’s office

(Source : http://brandsavant.com/208/whats-wrong-with-social-media-marketing-strategy/)

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http://brandsavant.com/208/whats-wrong-with-social-media-marketing-strategy/

http://brandsavant.com/208/whats-wrong-with-social-media-marketing-strategy/

The Risks of Social Media

• Branding issues

• House of Brands vs. Branded House

• One-way to two-way communication

• Speed of communication

(Source : eMarketer.com)

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Pepsi: “AMP Up Before you Score” iPhone App

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Pepsi: “AMP Up Before you Score” iPhone App

“Our app tried 2 show the humorous lengths guys go 2 pick up women. We apologize if it's in bad taste & appreciate your feedback.”

(Source : http://www.msnbc.msn.com/id/33310411/ns/technology_and_science-tech_and_gadgets/)

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http://www.msnbc.msn.com/id/33310411/ns/technology_and_science-tech_and_gadgets/

http://www.msnbc.msn.com/id/33310411/ns/technology_and_science-tech_and_gadgets/

Honda: Crosstour CUV

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Honda: Crosstour CUV

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Electronic Arts: Sin-to-Win Contest

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“There is no such thing as bad publicity...”

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“There is no such thing as bad publicity...”

“...except your own obituary.”

- Brendan Behan (1923-1964)

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Conclusion

• The conversation is happening

• Start listening now

• Begin the conversation at your organization about how to engage in a way that is right for you

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Questions?

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