Change comes from within Why social media outside the company isnt enough Leon Benjamin

Change comes from withinWhy social media outside the company isn’t enough

Leon Benjamin

Accelerating Product Acquisition & DistributionLeon Benjamin, Oct 2009

What’s the story?

> Social media actually works• Case studies and operational insights

> British Airways> Mornflake (who?)

• Challenges, limits

> Why change comes from within• Command & control no longer suitable for the ‘connected

world’• Social media is at its most transformative ‘inside’ the

company > The implications of an irreversible shift to network based

models of organisation• The profound changes in the nature of work• How to adapt


200,000,000 blogs

1.5 million residents

“The workers should

appropriate the means of production”

>100,000,000 videos(65,000/day)

www.ebay.com 21 Nov 200614,463,346 auctions

Almost 4,000,000 articles(10 languages)

400,000,000 profiles

Social Media Works

2009: "Twitter" is the world’s most popular English word


Social Media Works


British Airways – Business Case

Classes of Business Benefit

Intangible Tangible

Source of contribution

Customer Loyalty & Brand Awareness

Direct Revenue

Lower Operational

Expense

Comment

Customer/Member profile √ √

Customer intelligence & extending market reach at low cost

Advocacy/pass through revenue √ √ √

Sales channel for complimentary products/services

Group Discounts √ √ Special offers to subscribers

Affiliation √ √ Viral sales

Member-Member commerce √ √

Packaging brand products to serve customer's own network

Web Services, community, UGC √

Forms deeper customer relationships

Competitive research √ √Access to opinions using polls/surveys

Product development & feedback √ √ √Lower service development costs

Peer-to-peer self-help √ √Reduces contact centre traffic

Membership √ √ √

Friends invitations. Member get member


British Airways - Metrotwin

> Social recommendation engine

• Places & things in London & New York

• If you like this in London, you’ll like this in New York

> Innovative use of lists

• IBM’s experience of lists

• Twitter launches lists


British Airways - Metrotwin

> Innovative use of Google Maps

• Improve navigation

• Easy filtering• What’s around my

hotel?

> Twinning• Places• Areas

> Indexing• The Metrotwin

Index• Complex

algorithm> Genuine

popularity> Prevent

‘gaming’


British Airways – Challenges

> Quality of content• How do you guarantee quality?

> Recruited/vetted specialists in each city• ‘A’ List bloggers• Content partners (Radio & web)• The Metrotwin Network

> Incentives• (a lot) of BA Miles (per list, per entry)• Bragging rights• Page rank/links

> Anyone can sign up but only MT Network can create new entries> Other users can rate, suggest twins, comment

• Images> Flickr, image rights and the use of Creative Commons Licensing

> Getting people to join (seeding/community outreach)• Cannot be underestimated whatever the brand• Email campaign

> BA’s Club Card, agencies, partners• PR Campaign

> Conventional print (consumer/trade)> Mayor from each city submitting a list


British Airways – Challenges> Legal & Moderation

• Hosting User Generated Content (UGC) makes directors responsible

> Jail time – EU eCommerce Directive• Strict terms & conditions of use covers much of the risk

> Contracts with content partners• Moderation

> Pre-moderation? Post-moderation? Reactive?> 24hr coverage> Outsourced

• Transfers a lot of risk – insurance is expensive• Names, logos, searches – time consuming!

> Organisational• Multi-agency effort

> Competing agencies (MadeByMany, BBH, Agency.com, Headshift, Tempero...and others!)

> Increased complexity & politics• Greater effort/cost to deliver


British Airways - Outcomes

> Business Case• Achievements

> Useful tool used/promoted by many customers• Brand awareness• Deeper relationships• 5k-10k ACTIVE users

> Low maintenance moderation/operational effort• Low numbers of deviants

> Incorporated into BA’s overall marketing mix• London-Mumbai coming soon!

> Good return on investment• Recognition of the value of intangibles/relationships

• Failures> Advertising/pass through revenue not nearly enough to cover

the operational costs• Facebook type volumes required


Mornflake – Case Study

Classes of Business Benefit

Intangible Tangible

Source of contribution

Customer Loyalty & Brand Awareness

Direct Revenue

Lower Operational

Expense

Comment

Customer/Member profile √ √

Customer intelligence & extending market reach at low cost

Advocacy/pass through revenue √ √ √

Sales channel for complimentary products/services

Group Discounts √ √ Special offers to subscribers

Affiliation √ √ Viral sales

Member-Member commerce √ √

Packaging brand products to serve customer's own network

Web Services, community, UGC √

Forms deeper customer relationships

Competitive research √ √Access to opinions using polls/surveys

Product development & feedback √ √ √

Lower service development costs

Peer-to-peer self-help √ √Reduces contact centre traffic

Membership √ √ √

Friends invitations. Member get member


Mornflake Video Competition> Make a video about your

values• £15k first prize• 10 week campaign

> Uvizz• Innovative use of video

technology> Groups, reward

structure• 52 uVizz video

submissions• 11,000 unique views• 20,000 total views• 30-90sec clips• 5 TV quality commercials

> Value = £250k

> Legal• Reasonably straight

forward


Social Media Assets – Flickr

> Innovative seeding strategy

• Engaged a network of ‘free thinkers’

• Open source, authentic approach

> Created presence in wide variety of ‘destinations’

• Flickr, Youtube, Twitter, Facebook, blogs

> Twitter• Permission marketing

tool


Competitive Comparison

Web presence indicator Jordans Dorset Mornflake Comment

Main site Page Rank 4 5 4 Mornflake catches up

Google Search Results 47,800 37,000 21,000 At peak. Currently 14,000.

SamePoint Search Results 2,700 5,500 1,600

Reflects the shorter time/less content

No. Twitter Followers 330 188 4,000 Surpassed competition.


Quantitative OutcomesTarget/objective Achieved? Delivered Comment100,000 registrations X 3138 683 video, 2455 Bag of Oats20m interactions with the brand X 2m interactions Based on link planting

Rich video advertising content √51, 30sec-90sec videos £250k market value

Customer intelligence √

Qualitative feedback after trying product

Cost avoidance of focus groups? Incremental demand for product

Cost avoidance (Facebook advertising) √ £50k

Based on five month ad campaign to raise awareness (home page ads)

Presence all major social media platforms √

Flickr, Youtube, Facebook, Typepad (blog), Twitter 4,000 Twitter followers

Improve the selling process to big supermarkets √

Young buyers at supermarkets more aware of product

Penetrate new demographics √ See aboveEngaged new demographic age group 25-45


Why isn’t this enough?

> Mornflake• Culture shock• Unwilling to ‘take over’

> Receive training> Marketers not given permission to incorporate ‘conversation’ into

daily schedule• E.g. Maintain blog, Twitter

> But wants to capture a new demographic?• Agency execution

> Outsourced their personality> Danger that new advocates will feel used

> British Airways• Ditto

> To interact with networks, brands must themselves become networks

• Adopting social media ‘inside’> Changes behaviour

• Digital (banner) advertising is losing its effectiveness


The Big Shift


What’s that coming over the hill?


The Biggest Story of the 21st Century?

> The demise of command and control• Massive advances in technology• Prosperity to millions

> But at what cost to humanity, equality, society and the environment?

> Network organisation as the model of choice• There is a spectre haunting the world. The spectre of peer-

to-peer> Open source production> Collaborative capitalism *not* managerial capitalism

> The future is about less• Doing better with less


We sell openness


What do these need to survive?

> Orders> Order > Stability> Continuity> Rules> Fear> Withholding

Information> Measurement> Incentives> Competition


The Cost of Command & Control

> Modern Ways Open India’s Doors to Diabetes• Got the cash but it comes with ‘issues’

> Western diet/lifestyle• 35m type 2 diabetics. 75m by 2030

> Work Rage• France Telecom’s suicide rate

> 21 since Feb 2008• One more last week despite ‘interventions’

• 2.6m people in Britain on incapacity benefits > Over 60% there courtesy of workplace stress

> Inequality• USA 1950, CEO earns on average 40 X lowest paid worker• In 2009, CEO earns on average 4,000 X lowest paid worker

> Frequently as high as 200,000 X • 47m Americans without health insurance• In the UK poverty is almost at pre-war levels

> Environment• The economy is a wholly owned subsidiary of the environment

> The Story of Stuff, An Inconvenient Truth, etc, etc

> The West: Signs of cracking?• US infant mortality, UK & US drop to 17th & 19th (out of 19) on preventable deaths• 30m Americans on ‘low food security’• Education disparity


What do these need to survive?

• Everyone is a leader

• Everyone sensing, responding,

• Transparency• Trust• Peers• Agile• Adaptable• Self-organising


The Value of Peer-to-Peer Production> Open Source Software

• Google, Facebook, Yahoo, Amazon, eBay could not exist without Open Source technology

• Linux & Coase’s Penguin

> P2P lending• Grameen bank, Kiva, Zopa...many others

> Prosperity without growth• Steady state economies• Fractional work

> Creative commons• Crowdsourcing is solving some of the world's intractable

problems• NASA Clickworkers

> Crowdsourcing• “The future of a country depends less on the nature of its issues,

and more on its capacity to invent social structures able to solve them”. Noubel


A beautiful mind


We need antibodies

> That’s what we should be looking for, antibodies; some peaceful idea that binds us.......because we can all agree that this King of the Mountain shit has got to go; a lucky few get to spend a bit of time on top, but everybody spends most of their existence getting pissed on from a great height. So why do we continue doing it?


The network is female


IBM’s Ideal Lists


Where to start?> Create antibodies & Super Connectors

• ‘Chief listening Officer’• Sole purpose is to achieve the same levels of productivity

being achieved by ‘open source’, peer-to-peer production models

• No other way to have a continuous dialogue with the market

> Adopt different tools & methodologies• Projects/programmes

> Bioteams> Rowe (Best Buy)> Agile development

• The intranet as a conversation platform> Email is important?

• More private messages sent on social networks than email (as of 2008)

> Read The Cluetrain Manifesto• Published in 2000


Change comes from within

In both internetworked markets and among intranetworked employees, people are speaking to each other in a powerful new way

Companies that assume online markets are the same markets that used to watch their ads on television are kidding themselves

To speak with a human voice, companies must share the concerns of their communities.But first, they must belong to a community.

Intranets naturally tend to route around boredom. The best are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation.

We want you to take 50 million of us as seriously as you take one reporter from The Wall Street Journal

There are no secrets. The networked market knows more than companies do about their own products. And whether the news is good or bad, they tell everyone.


Room for discussion?

> Objects in the mirror are closer than they appear......

Documents

Change comes from within Why social media outside the company isnt enough Leon Benjamin