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© AberdeenGroup 2008
Leveraging Social Interaction in Online Communities to Drive Business Value
Jeff ZabinVP / Research FellowAberdeen Group
Dan LatendreCEOIGLOO Software
September 15, 2009
Connie AllenCommunity FacilitatorMotorola
2 • © AberdeenGroup 2008
Introductions About Jeff...
About Connie…
About Dan…
3 • © AberdeenGroup 2008
When it comes to brand recommendations, who do you trust?
Recommendations from a friend are far more credible and effective than any traditional marketing message.
People love to refer things, whether it’s a
book you read, a movie you saw or a product you loved. That’s what we do
as social creatures.
Diana LeClair, Marketing Manager
Marty Collins, Senior Product
Marketing Manager
4 • © AberdeenGroup 2008
A few key concepts Social media marketing Social media monitoring Social media integration Customer advocacy Peer-to-peer customer support Customer-driven innovation Online communities
A lot of social media tools do a great job of telling you
what’s being said and who’s saying it. What we really want to know is who’s listening to the conversation and how
does it permeate outwards.
Adam Brown Director, Digital Communications
Cathy Halligan, Chief Marketing Officer
We’re seeking to connect our community of 130 million customers in an easy way, and one that’s not solely
geographical. We’re continuing to evolve our community elements of the
site as well as in the stores and connect the two together so there’s
online/offline activity.
Inherent in the power of Web 2.0, the emergence of online communities, and the
transfer of power from big, centralized command-and-control structures like
corporations to large groups of disseminated individuals like customers is the need to move
from push information to pull information.
Matt Smith, Vice President, Marketing
Social media provides a platform for peer-to-
peer sharing of information that allows
your brand to reach new audiences.
5 • © AberdeenGroup 2008
The evolution of online communities…Our beta testers are using our online
community platform to provide feedback on upcoming releases. The platform has been a huge
success in terms of cost reduction. The resources that it takes to
manage the entire process are significantly less. Also, the time that it takes to get the information back to the team is a huge advantage
because it allows us to respond to issues very quickly.
Kim Josephs, Director, Online Communities
The online community platform enables customer-to-customer
thought sharing as well as Motorola-to-customer and customer-to-
Motorola thought sharing. Time and cost savings are huge benefits."
Connie Allen, Consultant Events Manager
6 • © AberdeenGroup 2008
Best-in-Class vs. Laggard companies
Customer advocacy Consumer insights Market research costs
Top pressures:
Performance criteria:
17%
19%
26%
27%
45%
47%
48%
0% 10% 20% 30% 40% 50% 60%
Improve customer research capabilities
Improve customer support capabilities
Increase customer acquisition
Increase customer retention
Increase customer advocacy / word of mouth
Increase product/brand awareness
Increase customer loyalty
Percentage of Respondents, n = 301
17%
19%
26%
27%
45%
47%
48%
0% 10% 20% 30% 40% 50% 60%
Improve customer research capabilities
Improve customer support capabilities
Increase customer acquisition
Increase customer retention
Increase customer advocacy / word of mouth
Increase product/brand awareness
Increase customer loyalty
Percentage of Respondents, n = 301
The Adidas online community consists of customers from multiple sports
interest groups, including soccer, U.S. football, running and basketball. We
recruited people from multiple different databases to build one large
community.
Chris Murphy, Director, Digital Marketing
7 • © AberdeenGroup 2008
Measuring for Success
8 • © AberdeenGroup 2008
Some recommended actions
Define best practices for utilizing and deriving actionable insights from online communities.
Train selected employees to engage in online conversations with consumers.
Use social media monitoring capabilities to identify and measure the value of key influencers.
Identify and segment consumers engaged in online conversations about the brand.
Integrate social media marketing in online communities with other marketing tactics / media buys.
Correlate customer advocacy to financial outcomes.
9 • © AberdeenGroup 2008
10 • © AberdeenGroup 2008
Motorola User Groups
Online Community launched December 2008 Built on the IGLOO online community platform Private or “gated” community 1,100 active members Focus is user groups: Trunked User Group, Mutual User
Group, Mobile Data User Group Wanted to facilitate conversation and support the needs
of its Enterprise Mobility customers Host events in an online forum to maintain dialogue,
continuity and interest
11 • © AberdeenGroup 2008
Main intent to connect to customers outside of face-to-face meetings Manage and coordinate over 100 distinct user groups and their activities Gather feedback on product features and set up test groups on new
products Connect users via product usage & product forums Create and disseminate customer testimonials & stories, product
specifications Their ultimate goal was to create product evangelists.
Motorola required a more sophisticated, flexible and secure way to interact and connect with hundreds of users online. They needed to:
12 • © AberdeenGroup 2008
Solution Branded 100% Motorola in adherence to standard corporate guidelines Members are organized into groups based on specific product categories
(roles & perms) Members populate and use personal profiles; connect with other members
related to specific product interests; control privacy of their personal information.
Use the event calendar to set up and promote local user group meetings in their territories online.
Facilitation of product “test groups” and offer a variety of feedback mechanisms such as rating, commenting, discussion groups, expert bloggers and messaging.
Use wiki pages for disseminating best practices, SOP’s, rules etc. A knowledge library for storing, managing and disseminating customer
testimonials and stories, product specifications and documentation.
13 • © AberdeenGroup 2008
Suggestion Box
Blogs, Wiki, The survey..? Connie, this is where we’ll need some of your input/screenshots
14 • © AberdeenGroup 2008
Insights
The community has exceeded expectations in terms of benefits. It enables customer-to-
customer thought sharing as well as Motorola-to-customer and customer-to- Motorola knowledge exchange. Time and costs savings are a huge
benefit, as is employee productivity
15 • © AberdeenGroup 2008
Customers and employees alike become spokespeople for the brand Helping customers to succeed by sharing best practices and lessons
learned Immediate feedback drives new product development, reduces beta
testing and increases customer adoption The platform facilitates cross-sell activity, simply by having user groups
in such close proximity – for example users of 2 way voice radio are being exposed to products related to broadband wireless networks; the community presents unique selling opportunities
Motorola has gone beyond building brand advocates and product evangelists
16 • © AberdeenGroup 2008
What Do We Do?
We help organizations build, deploy and manage successful online
communities and social networks.
17 • © AberdeenGroup 2008
3. Connect employees and key stakeholders who are on the road, in different offices or
who work in other time zones.
2. Stop vital corporate knowledge being trapped in information silos like email, laptops and
enterprise applications.
1. Expand your understanding access and utilization of your
organizational expertise.
Web 2.0 Value Proposition
“ Social interactions drive business transactions – personal and team
perspective”
18 • © AberdeenGroup 2008
Business is both a personal and social
activity... Companies don’t build products, do deals or make
service calls...
...People do!
19 • © AberdeenGroup 2008
Managing people is hard.
• Know-how• Skills• Ideas• Conversations• Experience• Expertise• Relationships
20 • © AberdeenGroup 2008
Managing teams is even harder.
• Focus• Control• Buy-in• Ownership• Goals &
Objectives
• Collaborate• Share• Problem Solve• Measure• Learn
21 • © AberdeenGroup 2008
Managing your entire company without the right tools is darn near
impossible.
22 • © AberdeenGroup 2008
23 • © AberdeenGroup 2008
24 • © AberdeenGroup 2008
25 • © AberdeenGroup 2008
Solutions NOT Software
COMMUNITY SOLUTIONS
COST EFFECTIVEVIBRANTVIRALSTICKYSUSTAINABLEMEASUREABLE
• SAS 70 • PCI DSS• CIC 5970 II
• Secure• Integrated• Extensible
• Support• Professional Services• Training• Community Facilitation• E-engagement• SEO, SEM, SMM
• Configurable• Customizable• Design
• Planning• Design• Deployment• Growth
26 • © AberdeenGroup 2008
Community Playbook
© AberdeenGroup 2008
Questions & AnswersWe now have time to answer a
questions. We will take questions via WebEx at this time. Please introduce
yourself and your organization.
© AberdeenGroup 2008
Thank-You!The proof is in the pudding…
Sign up for a Trial Community today and we’ll give you 2 hours of consulting services
to show you how you can benefit from online community solutions.
29 • © AberdeenGroup 2008
Contact
Check out www.igloosoftware.com/frostbites IGLOO’s digital media center –
learn more about online communities and IGLOO
solutions.