KickApps SF Summit - "Creating a Coherent social strategy with open leadership", by Charlene Li

Open LeadershipHow Social Technology Can Transform The Way You Lead

Charlene LiAltimeter GroupMay 27, 2010

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Follow me on Twitter@charleneli

© 2010 Altimeter Group


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Open Leadership4

Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals


A culture of sharing


Four goals define your open strategy6


Identify opportunities in real time7


Learn with basic monitoring tools8


Understand who that person is – in real time

LinkedIn in Lotus Notes

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Service Cloud w/social


Understand the socialgraphics of your audiences

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DemographicDemographic

GeographicGeographic

PsychographicPsychographic

BehavioralBehavioral

SocialgraphicsSocialgraphics


Engagement Pyramid11

Curating

Producing

Commenting

Sharing

Watching


United States

South Korea

BrazilUnited

Kingdom

Curating <1% <1% <1% <1%

Producing 26.1% 53.1% 52.7% 21.1%

Commenting

34.4% 76.2% 54.0% 31.9%

Sharing 63.0% 64.6% 79.3% 61.8%

Watching 78.1% 89.3% 89.3% 78.9%

Engagement Pyramid Data12

Source: Global Wave Index Wave 12 Trendstream.net, January 2010


Dialog with your community13


Blogs establish thought leadership14

Richard Edelman has

been blogging since 2004.

Richard Edelman has

been blogging since 2004.


Kohl’s has conversations on Facebook15


DellOutlet drives sales with Twitter16


Help your members support each other17


Solarwinds uses community for call deflection and product development


Wells Fargo supports customers19

People behind the account use CoTweet

and keep banker hours


Cisco supported employees with open collaboration and social platforms

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Innovate with customer feedback21


Starbucks involves 50 people around the organization


Best Buy’s First Social Media Experts23

Steve Bendt & Gary Koelling


Barry Judge CMO of Best Buy


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“I was so relieved when it was over—it was just two sentences to get started.”


The Premier Black Fiasco26

6.8 million emails sent instead of 1,000 test


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#1 Align openness with strategic goals28

Examine your 2010 goals

Pick one where open and social can have an impact


+ Value of purchases-Cost of acquisition

____________________

= Customer lifetime value

#2 The new lifetime value calculation

• Percent that refer• Size of their networks• Percent of referred people who purchase• Value of purchases

• Percent that provide support• Frequency and value of the support

+ Value of new customers from referrals

+ Value of support+ Value of ideas

+ Value of insights

Spreadsheets for call calculations available at open-leadership.com


Description Year 1 Year 2 Year 3

Number of original customers

10,000 5,000 3,500

Gross profit of purchases

$400,000 $200,000 $140,000

Cost of acquisition/retention

$150,000 $25,000 $17,500

Net profit $250,000 $175,000 $122,500

Lifetime value per customer

$74.89

Value of referrals $30,000 $45,906 $45,287

Value of insights $10,000 $5,438 $4,080

Value of support $5,438 $8,156 $6,120

Value of ideas $2,000 $1,000 $1,000

Net profit $297,438 $235,500 $178,986

Lifetime value per customer

$101.48

Calculating customer lifetime value30


Find more fans with

large networks

Find more fans with

large networks

Encourage fans to make

more referrals

Encourage fans to make

more referrals

Use metrics to help make decisions31


#3 Find and develop your open leaders32

Pessimist Optimist

Collaborative

Independent


#4 Prepare your organization33

Ideally, you should be at

“4.0” for launch.

Area of opportunity.


Organize for different types of openness34


Social media triage35

Can you add value?

Can you add value?

Evaluate the

purpose

Evaluate the

purpose

Respond in kind & share

Respond in kind & share

Thank the person

Thank the person

Unhappy Customer?Unhappy

Customer?

DedicatedComplainer?Dedicated

Complainer?

Comedian Want-to-

Be?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

Do you want to

respond?

No Response

No Response

No

Yes

Take reasonable action to fix issue and let customer

know action taken

Take reasonable action to fix issue and let customer

know action taken

Are the facts

correct?

Are the facts

correct?

Gently correct the facts

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Are the facts

correct?

Does customer need/deserve

more info?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Is the problem

being fixed?

Yes

Let post stand and monitor.

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message

Assess the message


#5 Embrace failure36


Buyer blog hit the right note37


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Create Sandbox Covenants


Focus on relationships, not the technologies.

Align your open and social strategies with strategic goals.

Embrace failure and mistakes – you’ll be making many of them.

Summary


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Thank you

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Charlene [email protected]

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

[email protected]

For more information & to buy the

book

visit open-leadership.com


About Us

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Altimeter Group is a strategy consulting firm that provides

companies with a pragmatic approach to disruptive

technologies. We have four areas of focus: Leadership and

Management, Customer Strategy, Enterprise Strategy, and

Innovation and Design.

Visit us at http://www.altimetergroup.com or contact

[email protected].

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KickApps SF Summit - "Creating a Coherent social strategy with open leadership", by Charlene Li