the business value of social networking
DESCRIPTION
This is a presentation that a few of my colleagues and I put together for the CIO's association of Canada - BC Chapter. Let me know if you have any questions.TRANSCRIPT
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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).
(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).
•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).
(Source: wikipedia.org)
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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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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))
Visited a blog
58%
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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))
Visited/browsed online social networks
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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...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
LinkedIn90%
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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
LinkedIn90%
Facebook97%
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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
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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Top misconceptions• Social media is only right for
certain brands
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
• “I don’t need a professional to do social media for me”
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
• “I don’t need a professional to do social media for me”
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
• “I don’t need a professional to do social media for me”
• Social media is just a fad
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Top misconceptions• Social media is only right for
certain brands
• Social media is all about getting traffic — and quickly
• “By using social media we will lose control of our brand’s image”
• “I don’t need a professional to do social media for me”
• 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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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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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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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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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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Honda: Crosstour CUV
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Honda: Crosstour CUV
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Electronic Arts: Sin-to-Win Contest
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Electronic Arts: Sin-to-Win Contest
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Electronic Arts: Sin-to-Win Contest
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Electronic Arts: Sin-to-Win Contest
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The Risks of Social Media
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The Risks of Social Media
“There is no such thing as bad publicity...”
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The Risks of Social Media
“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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