Andreas Weigend@aweigend

www.weigend.com

Customer Centricity:The Art of Social Datacleverbridge Networking Event, Boston12 October 2011

BuildingComputers

1970’s

ConnectingComputers

1980’s

ConnectingPages

1990’s

ConnectingPeople

2000’s

ConnectingSensors

2010’s

Social vs Transactional

Data vs Social Media

Revolution vs Evolution

“Social Data is the New Oil”

UN General Assembly, 8 November 2011

Irreversible Shift in Customer Mindset

Customers- engage

- connect- share 3 times per week on average

Nike+

Smartphones and Sensors

Context, situation• Sound

• Light

Customers interact• Tag

• Scan

Location: Google Latitude

Location Absolute: Place, time

• Individual: Identity, History

• Aggregate: Insights

Relative: Distance• To places: Advertising

• Between people: Dating

• Between devices: Risk

Create DistributeConsume

Everybody

The amount of data a person creates

doubles every 1.5 years

• after five years x 10

• after ten years x 100

Social Data Growth is EXPONENTIAL

This year people will

generate

more data than mankind has from its beginning through last

year

Social Data Growth is EXPONENTIAL

* With social data being abundant,

attention has become the

scarcest resource.

* To get attention, people will do

anything, including socialize their

data

Economics of Social Data

The ABC

Attention Advertising

Belonging Branding

Collaboration Confusion

Two Monologues don’t make aDialogue

GDI, Zurich, January 2010

Twitter -- The Illusion of an Audience

World Innovation Forum, NYC, June 2010

Fundamental Shift in Communication

One-way Two-way

Asynchronous Synchronous

Planning Interaction

List Flow

Private Public

Situation• Geo-

location

• Device

Attention• Clicks,

Transactions

Intention• Search Connectio

n• Social

graph

User generated• Reviews

Data Strategy

Case study: What data for targeting of a new phone product?

Connection data

• Who called who?

Traditional segmentation

• Demographics

• Loyalty

Connection data

Traditionalsegmentation

0.28%

Adoptionrate

1.35%

4.8x

Company

Customers

Amazon.com Share the Love

Result: Amazing conversion rates

since customer chooses

Content (the item)

Context (she just bought that item)

Connection (she asked Amazon to email her

friend)

Conversation (information as excuse for

communication)

Or is information justan excuse for

communication?

Purpose of communication:to transmit information?

1993

“On the Internet, nobody knows you’re a dog”

2011

“On the Internet, everybody knows you’re a dog”

Fraud reduction: Provide risk scores

Social network intelligence

Social graph targeting: Provide prospects

Audience

C2B: Customer to Business

C2C: Customer to Customers

C2W: Customer to World

Amazon.com: Public sharing of

interests

Who Can You Get To Work For You?

100M Customers

100k Employees

100 Specialis

ts

Marketer-generated

aware

consider

buy use

opinionshare

Consumer-generated

Funnel Megaphone

• Reduce barriers for contribution

• Design incentives that work

Get Your Customers To Work For You!

Rooms to Avoid:

01, 21

08, 17

Rooms Ending in:

Possible Ice Machine / Elevator Noise

Limited View Rooms

Corner / Oversized Rooms:

04

24

Oversized, Corner Room, Quiet Room

Oversized, Corner Room with North Times Square Views (Higher Floors are Preferred

Rooms Ending in:

Product

Customer

Brand

From controlled production for the masses…

… to uncontrolled production by the masses

Who talks to whom? Consumers to consumers

Who trusts whom?Shift from institutions to individuals

Who is in control? From e-commerce (company focus, Web 1.0)

to me-commerce (customer focus, Web 2.0)

to we-commerce (relationship focus, Web 3.0)

E Me We-commerce

• InnovationInternal External

“Most smart people don’t work here.” Bill Joy

• DataCollect and analyze Create and share

• ExperimentsPush and pray Launch and learn

Innovation

Do not have Somewhere already

Cannot get Can! User will give

Must not use Embrace it

Be secretive Be transparent

Information asymmetry

Information symmetry

Data Culture

Help people make better decisions

Make it trivially easy for people to contribute

Give people an excuse to connect Note: Products and services that use social data improve over time

Product Culture

Write the equations of your business in terms of customer centric metrics e.g., View-weighted availability

Capture the space created by the disappearing constraints of the past e.g., Communication costs

Company Culture

Andreas Weigend@aweigend

www.weigend.com

Thank you!Customer Centricity: The Art of Social Datacleverbridge Networking Event, Boston12 October 2011