The Facebook Era - WRFY at USB-ED

TITLE: eg. Marketing

Subtitle/Description: Eg. Online Marketing

Faculty Name: eg. Godfrey Parkin

Date: 18/03/2011

The Facebook EraBy Clara Shih

We Read for YouPresented by Louis C H Fourie

Cape Town: 11/03/2011JHB: 18/03/2011

Second Edition, August 2010

About the author• Combines keen knowledge

and entrepreneurship savvy to help influence, improve and innovate business technology applications nationwide.

• Shih was named one of the Most Influential Women in Technology 2010 (The Entrepreneurs group) by Fast Company magazine

About the author• Head of social networking

alliances and product at SFDC• Author/Blogger - The Facebook

Era - now used as textbook at Harvard Business School.

• Developer of Faceconnector, the 1st business app on Facebook

Clara Shih, author of The Facebook Era

• Was product line director for AppExchange, described by Forbes magazine as the “iTunes of business software” and one of the top innovations of 2007.

About the author• Founder of Hearsay Labs, a social media marketing

software company based in San Francisco• Lectures nationwide & abroad.• Earned B.S. degree in Comp Science & Economics &

an M.S. degree in Comp Science from Stanford University.

• She also earned an M.S. degree in Internet Studies from Oxford University.

What is different in the 2nd Edition?• Updated situation and statistics• Each chapter ends with takeaways and actionable to-do list• New Facebook discussion threads for each chapter• New and revamped case studies• Extensive coverage of Twitter and LinkedIn• Five new chapters: customer service (5), innovation &

collaboration (7), planning/ metrics (9), advice for small business (13), advice for non-profits, etc. (14)

• New guest contributions from world-class experts, such as Charlene Li

Overview• Well organised and very readable. • Style is conversational and informative.• Relies heavily on personal experiences• The business case studies are valuable.• Ability to present complex concepts in ways

that an ordinary person can understand.

Overview• The bottom line theme for The Facebook Era,

is that social media is not going away and is not a trend.

• There is a real power in collaboration and relationships which can elevate you above your competition.

Part 1: Why social networking matters for business

Chapters 1-3

Welcome to the Facebook Era

• The Internet Era was about the World Wide Web of information.

• The Facebook Era is about the World Wide Web of people. Knowing who is connected to whom and how.

• Marked by a change in individuals’ behaviour, interactions, and relationships with one another and with vendors.

• Implications not just in our personal lives but also our professional lives, across the enterprise: sales, marketing, recruiting, innovation, product development, etc.

Facebook is global and mainstream

Source: http://www.kenburbary.com/2011/03/facebook-demographics-revisited-2011-statistics-2/

On Facebook alone…• 630M+ active users

who spend 20 billion minutes per day

• Used by 1 out of every 12 people

• 200M access via cell phone

http://www.digitalbuzzblog.com/facebook-statistics-stats-facts-2011/

If Facebook were a country, it would be the 3rd largest in the world (between India and the

USA)

• The average Facebook user spends 55 minutes on the site.

• That’s 6.5 hours per week.• Nearly 1 whole work day.• 50% of internet traffic in the UK is from

Facebook. In the US it is about 1/3.

With over 200 million registered users, Twitter has become a global

communication force.

• A new member every second• 100+ million users

The statistics

37 years old

The average social network user is

38 years old

The average Facebookuser is

44years old

The average LinkedInuser is

39years old

The average Twitteruser is

50+

The fastest growing demographic in social media in the US is

Infosys Technologies, 2011

More Facts!

1 in 8 Couples married last year met via social

networks

Fastest Growing Segment of Facebook: Women

55-65

4,643,385 Followers

4,917,343 Followers4,425,675 Population

What happens in Vegas

Stays on…

Warley & Martin, 2010

Facebook has become the template for our online identity

Chapter 2: The new social norms

Facebook Open Graph extends identity across the Web

Chapter 2: The new social norms

Facebook introduced newcommunication modes that are both

more casual and more emotional

• Facebook and Twitter are radically new modes of communication

• Similar to when we went from in-person to phone, and phone to email

• But unlike email revolution, also more emotional (because of photos and profile)

Chapter 3: Social Capital

The new Facebook communicationmodes foster weak ties

• Cost of staying in touch goes down - foster more weaker ties

• Research shows most social capital maximized with weak ties.

• Usually we are not doing deals with our parents and close friends but rather friend-of-friend networks

• Capture long tail of relationships - People we meet can become “relationship options”

• We have the option but not the obligation to exercise down the road.

• Can accumulate social capital over time.

Chapter 3: How relationships and social capital are changing

User expectations have changed

People trust friends the most

Social Commerce is quickly becoming the way your customers are sharing their ideas

• Spam filers block email advertising • NO CALL lists prohibit telephone solicitation • If they get through . . . Caller ID allows us not to answer

a telephone solicitor• DVR allow us to skip television advertising• 96% of consumers trust personal recommendations• 14% of consumers trust traditional advertising

The customer wants to be in control!

Social Customer Lifetime Value

CLV = CLVold

+ Word of mouth referrals‐ ‐+ Customer support cost savings+ Sales resulting from idea contributions

Chapter 9: How to develop your Facebook era plan and metrics

People have the whole world-wide web

in their hands and they are using it! Anyone with a keyboard is an author.

Part 2: Social networking across your organisation

Chapters 4-8

Social sales

Chapter 4: Sales in the Facebook era

“Social technologies are the most important CRM trend in 2009”

Trends 2009 ReportJanuary 2009

Social sales• Lead generation• Navigating complex

organisations (connecting to individuals at the buyer who has influence)

• Establishing initial and on-going rapport

• Social-graph customer references

• Facebook is CRM

B2B versus B2C sales in the Facebook Era

• In general, relationships and trust play a bigger role in purchase decisions of higher priced items that are more difficult to value price and require greater expertise to understand.

• Relationship building and hypertargeting individuals on social networking sites is even more important in B2B because corporations don’t make decisions. People do.

Chapter 4: Sales in the Facebook era

As a result of social networks, user expectations have changed

• Wealth of data available from social network profiles

• Expected due diligence by sales and marketing

• Personalised interactions

Social network maps allow mutualfriend discovery and facilitate

transitive trust• Sales reps and others can

tap into “transitive trust” – if Customer B knows and trusts Sales Rep C, and Prospect A knows and trusts Customer B, then A is more likely to be open to a conversation with C.

• Trust is transitive, to a degree.

• Prior to the Facebook Era, A and C wouldn’t have known that B was a mutual contact.

Sales Rep C can use social network maps to connect the dots and tap into transitive trust to get her foot in the door with A

The loyalty magnification effect

“Passive” word of mouth - instead of having to actively tell friends about your product, Facebook News Feed broadcasts on their behalf status messages and someone becoming a fan of your product. WOM is automated.

Social Networks Extend Your Reach

Online social networking has transformed sales prospecting

Casual communications change our social graphs

Chapter 4: Sales in the Facebook era, p. 81

Facebook pokes and messages help reps save time staying in touch with their customers.

Facebook is the new CRM• “Facebook is CRM for

individuals”• Faceconnector, was

the first business application on Facebook

• Integrates Facebook profile and friend information with Salesforce Customer Relationship Management (CRM)

Watch the 2-minute demo>> http://thefaceforce.com

Customer Service 2.0

Chapter 5: Customer service in the Facebook era

Customers become partners

Five steps to successful social customer service• Listen• Embrace transparency• Respond (and own up to mistakes)• Crowdsource• Care about your customers

Social marketing

Chapter 6: Marketing in the Facebook era

• Tap into customer conversations• Persona marketing – creating an emotional

connection via brand personas• Hypertargeting• Passive WOM and social filtering

Sales and marketing in the Facebook era: Preparing for a new kind of customer

relationship

“The Facebook Era recognizes that we’ve come to a place where people can represent their real identity — and use the social filters on the Web to connect

with the world around them.”

—Sheryl SandbergChief Operating Officer, Facebook

Chapter 6: Marketing in the Facebook era

Using Facebook across the marketing funnel

Chapter 6: Marketing in the Facebook era

Precision marketing with hypertargeted ads

Traditional method: “Fifty percent of my advertising is wasted, I just don’t know which fifty percent”

Facebook Era method: Hypertarget ads based on profile information

• Only target the specific audience segments who are most likely to buy – e.g., golf apparel company targets individuals with “golf” in their list of hobbies on their Facebook profile

• Test new segments and messaging

Hypertargeting helps cost-effectively capture “latent demand”

• Minimize wasted ads on people who would never buy

• Cost-effectively capture latent interest (search marketing leaves latent demand on the table)

Social Network Marketing Spending, Forecast Through 2015

Source: Borrell Associates Q1, 2010 Data

All Estimates, Projections, and Forecasts in $ Billions

Part 3: Step-by-step guide to social networking for business

Chapters 9-12

Three easy ways to build a Facebook presence

Identity: Personal or professional?

Chap 10: 197

Protecting your privacy

Chapter 10: How to build and manage relationships on the social Web, p. 200

Examples of Ads and Promos

Advertising PromotionsHome Page Ad:

Profile Page Ad:

Facebook:

Twitter:

Warley & Martin, 2010 Chapter 12: How to: Advertise and promote the social Web

Use Social Networks to Promote Contests and Content

It’s not just about poking…

Social networking can help advisers

Generate leads

Improve client service

Deepen client relationships

Demonstrate value

Provide a platform for referrals

Infosys Technologies, 2011

Part 4: Social networking strategy

Chapters 13-16

Advice for small business• Start small• Use personal profile instead of Facebook page• Use Location targeting ads (brick & mortar)

and geolocation features on Twitter, Gowalla, Foursquare (mobile business)

• Build community• Build your sphere of influence• Ditch your website• Create and convey a personality• Network Chapter 13

Advice for non-profits, healthcare, education, and political campaigns

• Non-profits: Accessible, tell stories, focus on impact, ensure broad participation, empower core supporters

• Healthcare: e.g. AIDS awareness• Education: Student groups, alumni• Politics: campaigns

Chapter 14

Corporate Governance and Risk• Misrepresentation of brands – either accidental or

malicious, such as disgruntled former employee• Information boundaries – trade secrets, PR leaks,

customer privacy• “Temporary” corporate identity – what happens

when someone who has been Twittering on behalf of a brand leaves the company?

• Optimal level of risk is not zero• Companies should add to employee training and

corporate policy (similar to email). Zappos Inc. includes “Twitter 101” as part of new hire orientation. Chapter 15: Corporate Governance

Individual Threats and RiskIdentity theft and phishing• Users are tricked into disclosing passwords and their accounts

get compromised• Identity thieves use compromised accounts to lure friends of

the user into wiring money or giving up more informationPrivacy• Use combination of Facebook friend lists and privacy control

settings to make sure you are sharing the right content with the right people.

• People are accountable for managing their online identities just like they manage their offline ones.

• “Facebook is forever.” Users need to think twice before posting a compromising photo or comment.

• Facebook etiquette should be added to trainingChapter 15: Corporate Governance

Conclusion

• Social media is a massive ecosystem of innovations that allows people to tap the deeply human desires to connect, communicate, create and exchange

• To succeed in social media, however, you’ve got to join the conversation

Learn more and join the discussion

twitter clarashihblog/web thefacebookera.com

Let’s Talk!

• Questions/Clarifications

Lfourie@uwc.ac.za