what's the social graph worth?

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What’s the Social Graph Worth to You? Paloma M. Vazquez @pmvazquez

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A proposed brand framework to more rigorously evaluate and respond to the present and future opportunities for the promised social graph.

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Page 1: What's the Social Graph Worth?

What’s the Social GraphWorth to You?

Paloma M. Vazquez@pmvazquez

Page 2: What's the Social Graph Worth?

The ‘social graph’ entered the lexicon of digital strategy in 2007*. But the debate as to its present and future form continues today.

It is also alluded to as the pot of gold data at the end of the social network rainbow. Because that relationship data identifies how people are connected, it’s valuable to many - including to brands.

But data is only as good as the action it allows you to take. With that in mind, this is a proposed brand framework to more rigorously evaluate and respond to the present and future opportunities for the promised social graph.

* The social graph is a term coined by Mark Zuckerberg of Facebook, which originally referred to the social network of relationships between users of the service provided by Facebook.

It has been described as "the global mapping of everybody and how they're related".

Page 3: What's the Social Graph Worth?

In a recent post, Pinboard’s Maciej Cegłowski argues that ‘The Social Graph is Neither’, as it fails to fully mirror the dynamic nature of relationships.

We begin with a loaded term

We’re working within an imperfect, inconclusively

defined system.

It’s not a graph: A true graph would employ a universal language and definition of the nodes (or users) and the edges (or type and strength of connection) that bind them.

It’s not social: The static and incomplete description of each relationship doesn’t mirror the true, evolving nature of social relationships.

}

Page 4: What's the Social Graph Worth?

The current structure of the ‘social graph‘ is limited in classifying the strength and nature of social relationships. To illustrate, Facebook currently captures select dimensions of connections:

Today’s graphs consist of vague connections

Connection Strength

Loose, established via user’s ‘Like’

Strong, established between two users

Unknown in duration or depth, established by someone accepting request

✤ Connection to the brand (Liked)

✤ To friends

✤ Family (if identified)

✤ Romantic partner (if identified)

✤ Organizations or interests (Likes)

✤ Co-workers (if identified)

User Brand/s

Friend

FamilyPartner

Member Organization

Colleague Affiliations (Likes)

}

A ‘Like’ is a loose relationship because it does not always translate into active participation, nor permanence - and

can be just as easily lost as it can be bought.

Page 5: What's the Social Graph Worth?

An evolved social graph would mirror the nuanced, dynamic nature of relationships and the strength of each bond.

Describing the ideal social graph

Recognize that not every relationship is positive. In fact, some ‘Likes’ are downright contentious.

A ‘Like’ would differentiate between active participants, those that simply listen, those that purchase the brand but don’t necessarily participate in the community, and even those whose participation is simply to provoke.

}

Page 6: What's the Social Graph Worth?

In spite of light of the current state of the social graph, brands are employing connection (or relationship) data across social platforms.

These brands have taken an iterative start towards creating valuable experiences

with relationship data.

Page 7: What's the Social Graph Worth?

Connections provide reassurance, benefitting the brand as broker of relationships.

AIRBNB INTEGRATES FACEBOOK CUSTOMER CONNECTIONS TO PROVIDEA PERSONAL REFERENCE FOR THE PROPERTY HOST, IDENTIFYING COMMON FRIENDS.

Page 8: What's the Social Graph Worth?

Social behaviors inform relevant offers, benefitting the brand as agent for desirable experiences.

AMERICAN EXPRESS’ “LINK, LIKE, LOVE” PRESENTS TARGETED OFFERS BASED ON THE SOCIAL ACTIONS TAKEN BY USERS AND THEIR COMMON CONNECTIONS ON FACEBOOK.

Page 9: What's the Social Graph Worth?

Connections verify the merchant, positioning the platform as broker of social validation.

FOURSQUARE OFFERS TARGETED RECOMMENDATIONS BASED ON CONTEXT-APPROPRIATE SHARED BEHAVIOR WITH AN INDIVIDUAL’S SOCIAL CONNECTIONS.

Page 10: What's the Social Graph Worth?

In the interest of time and space, we tipped our hat to three. But for further reference, see:

And of course, there’s more...

Levi’s Friends Store

TripAdvisor’s ‘Cities I’ve Visited’

Lacoste Live

etc.}

Page 11: What's the Social Graph Worth?

A brand can assess the value of relationship data to their business - both now and in a potentially more defined future - by first identifying that data’s potential application.

A brand can then assure it has the capabilities to respond to that data.

Page 12: What's the Social Graph Worth?

A brand’s capabilities must reflect its objectives

To capitalize on an informed social graph, a brand should first identify the valuable outcomes desired from additional relationship and behavioral data.

1) This preliminary framework with broad (read: illustrative) examples can be updated to reflect a brand’s unique ecosystem and objectives.

2) A brand can then determine if the capabilities and infrastructure required to deliver on those applications are in place...

}...and establish priorities to employ or create them.

Page 13: What's the Social Graph Worth?

The brand frameworkA PROPOSED APPROACH TO ALIGN DATA CAPTURED TO ACTIONABLE APPLICATIONS

Advertising X% lift in engaged customers

Audience segments with shared attitudes and behaviors (number of liked sports properties)

Display personalized ad to relevant audiences

Targeted Content X% lift in shared brand content and Y% lift in audience base

Customer segments informed by social behaviors (checked into a farmer’s market)

Exclusive partnerships aligned to precise interests

Targeted Offers, Promotions

X% lift in customer spend, Y% lift in redemptions

Customer visitation behavior per segment; type of visitation (family vs. business)

Rewards targeted to clusters that visit together

Customer Service X% lift in customer defection or Y% lift in avg spend

A dossier of frequent behaviors and key relationships of highest-value customers

Personalized experience for highest-value customers

Product and Service Customization

X% lift in total revenues or Y% lift in key brand equity measures

Dossier for customers depicting most social offline behaviors (with diverse, connected and active connections).

Custom and connected products tailored to customers with most valuable and social behavior

Channel(The Brand Ecosystem)

Valuable Outcome(A Measurable

Objective)

Social Data Needed(Detailed Data Requirements)

Potential Application

(Verify Actionability Within Existing Infrastructure)

Page 14: What's the Social Graph Worth?

Also fairly simple, requiring limited

time and resources to execute.

Requires evaluation of current customer service ecosystem,

database capabilities.

The epitome of customization possible, factoring in detailed behavior and

preference data; ideally targeted to highest value customers.

Lowest hanging fruit;

broadest applicability

across customer

base.

May require additional resources to secure

appropriate partnerships and platform

relationships.

1:1 Product,Service

Customization

Customer Service

Targeted Offers, Promotions

Targeted Content

Advertising

This hierarchy can guide

prioritization based on

immediate actionability

across broadest audience base.

Page 15: What's the Social Graph Worth?

In short, the ‘social graph’ is a loaded term (and idea). It’s currently imperfect, comprised of relationships of unclear nature and strength. But its limitations have not stopped brands from creating valuable customer experiences with existing data.

We recognize that relationship data captured by the social graph is valuable - now and in the future. For brands to assess that value more rigorously, this is a proposed framework to ensure that every action and investment has actionable purpose for the business.

It’s an iterative work in progress.

Page 16: What's the Social Graph Worth?

Thoughts, questions and conversation welcome.

Paloma M. Vazquez @pmvazquez