Understanding the Social Customer

Understanding the Social Customer

Ryan Turner, Director of Social Media, West

ryan.turner@razorfish.com

@wryanturner

Questions?

Razorfish creates experiences that build business.

Banana phone slide

But is this really any different than previous technology “revolutions?”

Everything’s amazing, but nobody’s happy.

Yes, it’s a revolution. And the revolution in this case is not technological but social.

What happened?

Broadband.

WSIWYG.

YouTube.

Some Context: Ryan’s Ten-Cent History of the WebCommunity-Focused

Broadcast ParticipatoryUser-Generated

Bottom-Up

HTML

High Threshold of Entry

Low Bandwidth

Text-Based

Collaboration

Corporation-Driven

Top-Down

Data-Driven

No entry

Flash intros!

Text and Images

Transaction

User-Generated

Bottom-Up

Standards-Driven

Lower Threshold of Entry

High Bandwidth

Multimedia

Interaction1980’s-1994 1994-2005 2005-Now

Web 2.0 and social media are social phenomena above all.

Blogs Discussion Boards

Forums Chat IM Vlogs

Moblogs SMS Podcasts

Microblogs Photo BlogsPrediction Markets RSS

Collaboration CollectiveIntelligence Communities

Wikis Recommender SystemsMashups User-GeneratedContent

Social media is made up of people, relationships among people, and things people

create and share

VS

Agenda

• The Digital Customer

• Influence

• Brand Personality

• Extend the Business

• Device Proliferation

5 Ideas to consider

1. Letting customers do the work

2. Harness influencer dynamics

3. Make your brands more human

4. Create new businesses

5. Take digital on the road

These are difficult times

But every year we spend more time online

1999 : 7 hours2000 : 7 hours2001 : 7 hours2002 : 7 hours2003 : 9 hours2004 : 8 hours2005 : 9 hours2006 : 9 hours2007 : 11 hours2008 : 14 hours2009 : 13 hours

And social media is exploding

“If we add up all the time people have spent playing World of Warcraft, it would total approximately 5.93 million years. That’s the same amount of time that homo sapiens has existed.”

-- Jane McGonigal, TED 2010

Most products were originally sold based on a personal relationship in a high-touch environment

But busy lifestyles required efficiency and organizations needed the scale

The internet brought customership into our homes and offices

Mobile took these interactions out of home and gave us even more control over where and when we transacted

Because we took a wrong turn somewhere

The more we invested in technology, the more distant we got from our customers

We spent the last 30 years using technology to separate ourselves from our customers . . .

The Idea!

Let’s spend the next 30 using technology to get closer to our customers.

Ironically, digital is going to play a big part in making that happen.

There are challenges.

Page 25 © 2009 Razorfish. All rights reserved.

76% of people think companies lie in ads

77% trust companies less than they did

last year

38% of people believe companies will do

what is right

15% of people enjoy the ads as much as

the programs

2008 Vizu Answers, 2009 Yankelovich, 2009 Edelman Trust Barometer, 2009 Edelman Trust Barometer, TGI, HT Spike Jones, Brains On Fire.

65.3% Yes

34.7% No

1. Has an experience you have had online ever

changed your opinion (either positively or negatively) about a brand or the products and

services it offers?

97.1% Yes

2.9% No

2. Has that experience influenced whether or not you purchased a product or service from the

brand?

64.1% Yes

35.9% No

3. Have you ever made your first purchase from a brand because of a digital experience (e.g., a web site, microsite, mobile coupon, email)?

Increasingly, digital is the first—and frequently only—customer touchpoint.

Success requires personal, high-touch interactions.

And we already have examples of companies creating transformative digital experiences…

Here are just a few of them

Bottom Line: Digital Is Not Just an Ad Channel

Digital is not simply an “awareness” or CRM play, it’s a customer-creation play.

The overwhelming majority of consumers who engage with a brand online move from passive “receivers” to advocates almost instantly.

Digital is quickly becoming the first and most important customer touchpoint. It’s transforming your customer relationships, whether you like it or not.

It’s not about understanding what you can do, it’s about knowing what you should do.

5 concepts to consider

Let customers do the work for you

1IDEA DiSo enables WoM

The purpose of a business is to create a customer

– Peter Drucker

“”

1IDEA

The purpose of a business is to create a customer who creates customers

“”

1IDEA

Leaving your only job to be taking care of your existing customers

Trust me, that’ll be harder not easier…

1IDEA

1IDEA

1 billion total media impressions to date; 44M blogs, 70M tweets, 300K new Facebook fans

1IDEA

Harness influencer dynamics.

2IDEA Syndication magnifies influence

Why does influence matter online?

72% of internet users say they are exposed to too much advertising

2IDEA

2IDEA

What are the implications of this?

• You’ve got new marketing tactics to leverage

• You can optimize your media spend even further

• Your social influencers can bring in more consumers

• You need new metrics for evaluating customer value

2IDEA

Make your brands even more human

3IDEA

Brand Voices

• Singular company voice

• Reflects the brand personality

• Everybody follows the brand voice

• Appears in all brand touch points

• Usually unique to the company

• Sometimes manifested in a person

• Used everywhere –signage to ads

SIM Voices

• Multiple, authentic individual voices

• Transparent and discoverable

• Engaging and conversational

• Appears where conversations are

• Unique to the person not the company

• Manifested in a real person

• Used only by real people

3IDEA

Brand Voice Social Voice Social Brand

3IDEA

3IDEA

Strategy & Planning

Research & Development

OperationsMarketing &

Sales

Corporate Communicatio

ns

Human Resources

Customers

1.0

Strategy & Planning

Research & Development

OperationsMarketing &

Sales

Corporate Communicatio

ns

Human Resources

Customers

2.0

3IDEA

Workflow, Routing, and Escalation

Social Media Governance Charter

Community Guidelines

Internal Participation Policy

Responsibility Matrix

One-Page Social Media Orientation

Performance Metrics

Online Brand Personality Brief

Brand Guidelines

Governance Documents

2.3.10

More: www.socialmediagovernance.com

Business, Marketing. Compliance leadership

“I’ve got something to share”

Venue host

Expert Advisor

Friendly promoter

Internal and external contributors

Active & prominent Social Media participants

Compliance and Brand Authority

Social Media Governance Board:

Participant/Content Creator:

Moderator:

Curator:

Evangelist:

Key Contributors:

Social Media Leadership Team:

Approver:

There will be overlap (people will wear more than one hat). A member of the governance board could be a key contributor as a curator for a niche market. A moderator not only can, but should, be a key contributor.

ROLES AND RESPONSIBILITIES2.3.10

Role Responsibility

Social Media Governance Board

• Provide access to and direction on business goals & objectives within your area of responsibility

• Attend monthly meetings

Participant/Content Creator • Understand and follow Social Media policy• Provide regular, direct feedback to Social Media Leadership team on

social media activities and experiences

Moderator • Engage and manage community dialog• Report issues & initiate escalation process as needed

Curator • Track and assess community content needs• Provide expert content assessment & analysis to help community filter

and prioritize available information

Evangelist • Understand and support key messages• Develop and nurture relationships with Key Contributors of the

community

Key Contributors • Understand and acknowledge your leadership role in the community• Be fluent in social media policy, strategy, and tactics

Social Media Leadership Team

• Provide “go-to” access and support for social media participants• Understand and liaison with Social Media Governance Board as needed

Governance documents: responsibility matrix

2.3.10

What are the implications of this?

• People connect with people more than brands

• You need to practice permission marketing

• Create personal, not personalized, experiences

• Cede partial brand ownership to your customers

3IDEA

Create new businesses out of hidden assets

4IDEA

Over the next decade, two out of every three companies will face the challenge of their corporate lives: redefining their core business.

Buffeted by global competition and facing an uncertain future, more and more executives will realize that they must make fundamental changes in their core even as they continue delivering the goods and services that keep them in business today

4IDEA

4IDEA

What are the implications of this?

• Your business is going to radically change

• You’ve got hidden assets to be leveraged

• Your front-line customer interactions will matter even more

• Your customers can help you navigate this world

4IDEA

Take your digital experiences on the road

5IDEA

5IDEA

Mobility

Fun

ctio

nalit

y

5IDEA

Mobility

Fun

ctio

nalit

y

5IDEA

What are the implications of this?

• Context joins content at the core of digital experiences

• Social media goes mobile in a fundamental way

• Real time activity will drive brand perception

5IDEA

5 Ideas to consider

1. Letting customers do the work

2. Harness influencer dynamics

3. Make your brands more human

4. Create new businesses

5. Take digital on the road

Know me. Create value. Be relevant.

QUESTIONS…