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SXSW Interactive 2012 Why Small Is the New Big and Big Is the New Small Saturday, March 10 12:30PM - 1:30PM Hilton Garden Inn, Rio Grande Audio Podcast and full description available here on conference Web site http://schedule.sxsw.com/2012/events/event_IAP10015
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Why small is the new BIG and
BIG is the new small
@jasonstoddard & @katmandelstein
Hashtag for session: #eggcellent
Mainframe
PCs
Internet Social
Departmental
Technology enabled business transformation over the years
The Fifth Era of IT
Internet
Social
Market Forces: The 3 P’s
People Process Proximity
A Maxim "The Life of a human being does not exist merely in the sphere of goal-directed verbs. It does not consist merely of activities that have something for their object. I perceive something. I feel something. I imagine something. I want something. I sense something. I think something. The life of a human being does not consist of all of this and its like. All this and its like is the basis of the realm of It. But the realm of You has another basis.” – Martin Buber, Philosopher via I and Thou
� I
� You
� It
� Me & You
� I & It
� You & It
� It & It
Scarcity is a Myth
Leverage your sausage
Competition is NOT Obvious
Don’t assume you know yours
Going Global vs Acting Local
è
Social Business Characteristics
Image: getrealtypepad.com
Small Business Advantages � Agility
� Personalization (Inherently social: “Sometimes you wanna go, where everybody knows your name.”)
� Specialization
� Proximal
� Extra-legal ;-)
Small Business Challenges � The Handshake Problem
� Retention (Customer and Employee)
� Cash strapped; capital constraints
� Continuity (brand (association transference), knowledge, service, product, deliverability)
� Scale (The Accordion Effect)
� Accountability
Meet the Small Business Say hello to the Liedeker family. Drew and Eileen own a residential maid service franchise. In 2010, their small business served over 700 homes in Greater Austin, Texas. In 2010, Drew’s business: • Grossed ~$2.3M in revenue. • Invested ~$14k, monthly in marketing
spend. • Invested $125 - $435 to acquire a new
customer. • Retained ~ 97.3% of his customers, week
over week. • Drew has a MBA in finance. Drew has no
coding or design ability. Most of his marketing support is from corporate or vendors/consultants.
Drew’s Perspective:
“Dating back to 2003, I’ve seen and heard it all. I’ve made many mistakes, especially in marketing. I used to read everything I could get my hands on, be up on the latest trends, follow every guru. Now, I have a family. Every day I wear 20 hats and marketing is a weakness. Honestly, I avoid it… I don’t have time to learn a new skill much less a new platform, but I know I need to target the right customer to scale my business on my terms. I need something simple, that holds me accountable, gives me actionable information and still let’s me get away to pick up our kids from school, enjoy my wife, enjoy my life.”
Most Trusted ITCs
The Birthday Campaign
Collect Messages Self-serve Assisted-serve Types: - Sale/clearance merchandise, “deals” - Just-in time offers, coupons - Announcements, events, milestones - Third-party advertiser coupons
Formulate deals Coupons - Quantity based - Time specific - Expiration - Purchasable coupons Deal of the Day -Minimum to purchase -Maximum to purchase Gift cards
Communicate deals Web site & widgets Mobile App (geo) SMS/e-mail alerts Social - Facebook Pages, Places - Facebook Ads - Twitter Print Advertising - Reverse publishing Billboards/signage
Conduct Transactions Basic storefront Collect payment Transfer payments to business, partner, resellers if appropriate Manage fulfillment Basic Accounting Infrastructure
Process
Establish campaign goals.
Implement performance metrics.
Analyze data.
Cra: op;mal rewards.
Op;mize campaign in real ;me.
Report results.
Image from San Francisco Sentinel
BIG is the new small
Big Business Advantages � Global Reach with ability to staff resources on
the ground in local markets
� Diversification of Workforce
� Business Process Optimization
� Deep Pockets � Reserve Capital � Can afford 360 Marketing Programs � Diversification of Offerings
� Innovation: R & D
Big Business Challenges � Geographically Dispersed Workforce
� Challenging to react quickly
� High visibility of mistakes
� Commoditization of offerings
� Expense pressure to reduce E:R ratio
� Public company return to shareholders
Meet the Big Business Say hello to the IBM family. A 100 year old company built to enable businesses with technology and services. Over 430,000 IBMers globally. Owned by thousands of shareholders including Warren Buffet. Founded by TJ Watson. Led by Ginni Rommety today.
• Revenue: $106,91B in 2011
• Net Income: $15,855B in 2011
• Most Patents for 19 Consecutive Year
• IBM Stock over $200 per share
Ginni’s Perspective:
“When I say "make a new market" I really believe one of the things that will distinguish businesses into this next decade is this area of how they use information. I don't mean that as a technical point. I mean this really, truly as predictive, analytics, I think it'll change culture, it'll change everything that you do. And I believe it'll differentiate the winners and the losers no matter what business you are in and how you do it.”
Marketing Automation Interest
Awareness
Desire
Action
Prospect Emailed Invitation to BI Event
Registers & Downloads BI ROI Paper
LDR Calls to
Qualify
Re-‐enforcing Email Topics
10 points
Registers/ Attends BI Event
50 points
Downloads BI Case Study
15 points
25 points
0-10 POINTS 50-100 POINTS 100+ POINTS
Qualified Lead Passed to Sales
Follows link or Searches for ROI Tool
5 points
5 points
Receives Email for BI ROI Tool
5 points
Receives Email Invite to BI Event
Key Measures for Both � Revenue to Expense
� Customer Acquisition
� CPM/CPC
� Lifetime Value
Time for #eggcellent Simulation