TITLE: eg. Marketing
Subtitle/Description: Eg. Online Marketing
Faculty Name: eg. Godfrey Parkin
Date: 18/03/2011
The Facebook EraBy Clara Shih
We Read for YouPresented by Louis C H Fourie
Cape Town: 11/03/2011JHB: 18/03/2011
Second Edition, August 2010
About the author• Combines keen knowledge
and entrepreneurship savvy to help influence, improve and innovate business technology applications nationwide.
• Shih was named one of the Most Influential Women in Technology 2010 (The Entrepreneurs group) by Fast Company magazine
About the author• Head of social networking
alliances and product at SFDC• Author/Blogger - The Facebook
Era - now used as textbook at Harvard Business School.
• Developer of Faceconnector, the 1st business app on Facebook
Clara Shih, author of The Facebook Era
• Was product line director for AppExchange, described by Forbes magazine as the “iTunes of business software” and one of the top innovations of 2007.
About the author• Founder of Hearsay Labs, a social media marketing
software company based in San Francisco• Lectures nationwide & abroad.• Earned B.S. degree in Comp Science & Economics &
an M.S. degree in Comp Science from Stanford University.
• She also earned an M.S. degree in Internet Studies from Oxford University.
What is different in the 2nd Edition?• Updated situation and statistics• Each chapter ends with takeaways and actionable to-do list• New Facebook discussion threads for each chapter• New and revamped case studies• Extensive coverage of Twitter and LinkedIn• Five new chapters: customer service (5), innovation &
collaboration (7), planning/ metrics (9), advice for small business (13), advice for non-profits, etc. (14)
• New guest contributions from world-class experts, such as Charlene Li
Overview• Well organised and very readable. • Style is conversational and informative.• Relies heavily on personal experiences• The business case studies are valuable.• Ability to present complex concepts in ways
that an ordinary person can understand.
Overview• The bottom line theme for The Facebook Era,
is that social media is not going away and is not a trend.
• There is a real power in collaboration and relationships which can elevate you above your competition.
Part 1: Why social networking matters for business
Chapters 1-3
Welcome to the Facebook Era
• The Internet Era was about the World Wide Web of information.
• The Facebook Era is about the World Wide Web of people. Knowing who is connected to whom and how.
• Marked by a change in individuals’ behaviour, interactions, and relationships with one another and with vendors.
• Implications not just in our personal lives but also our professional lives, across the enterprise: sales, marketing, recruiting, innovation, product development, etc.
Facebook is global and mainstream
Source: http://www.kenburbary.com/2011/03/facebook-demographics-revisited-2011-statistics-2/
On Facebook alone…• 630M+ active users
who spend 20 billion minutes per day
• Used by 1 out of every 12 people
• 200M access via cell phone
http://www.digitalbuzzblog.com/facebook-statistics-stats-facts-2011/
If Facebook were a country, it would be the 3rd largest in the world (between India and the
USA)
• The average Facebook user spends 55 minutes on the site.
• That’s 6.5 hours per week.• Nearly 1 whole work day.• 50% of internet traffic in the UK is from
Facebook. In the US it is about 1/3.
With over 200 million registered users, Twitter has become a global
communication force.
• A new member every second• 100+ million users
The statistics
37 years old
The average social network user is
38 years old
The average Facebookuser is
44years old
The average LinkedInuser is
39years old
The average Twitteruser is
50+
The fastest growing demographic in social media in the US is
Infosys Technologies, 2011
More Facts!
1 in 8 Couples married last year met via social
networks
Fastest Growing Segment of Facebook: Women
55-65
4,643,385 Followers
4,917,343 Followers4,425,675 Population
What happens in Vegas
Stays on…
Warley & Martin, 2010
Facebook has become the template for our online identity
Chapter 2: The new social norms
Facebook Open Graph extends identity across the Web
Chapter 2: The new social norms
Facebook introduced newcommunication modes that are both
more casual and more emotional
• Facebook and Twitter are radically new modes of communication
• Similar to when we went from in-person to phone, and phone to email
• But unlike email revolution, also more emotional (because of photos and profile)
Chapter 3: Social Capital
The new Facebook communicationmodes foster weak ties
• Cost of staying in touch goes down - foster more weaker ties
• Research shows most social capital maximized with weak ties.
• Usually we are not doing deals with our parents and close friends but rather friend-of-friend networks
• Capture long tail of relationships - People we meet can become “relationship options”
• We have the option but not the obligation to exercise down the road.
• Can accumulate social capital over time.
Chapter 3: How relationships and social capital are changing
User expectations have changed
People trust friends the most
Social Commerce is quickly becoming the way your customers are sharing their ideas
• Spam filers block email advertising • NO CALL lists prohibit telephone solicitation • If they get through . . . Caller ID allows us not to answer
a telephone solicitor• DVR allow us to skip television advertising• 96% of consumers trust personal recommendations• 14% of consumers trust traditional advertising
The customer wants to be in control!
Social Customer Lifetime Value
CLV = CLVold
+ Word of mouth referrals‐ ‐+ Customer support cost savings+ Sales resulting from idea contributions
Chapter 9: How to develop your Facebook era plan and metrics
People have the whole world-wide web
in their hands and they are using it! Anyone with a keyboard is an author.
Part 2: Social networking across your organisation
Chapters 4-8
Social sales
Chapter 4: Sales in the Facebook era
“Social technologies are the most important CRM trend in 2009”
Trends 2009 ReportJanuary 2009
Social sales• Lead generation• Navigating complex
organisations (connecting to individuals at the buyer who has influence)
• Establishing initial and on-going rapport
• Social-graph customer references
• Facebook is CRM
B2B versus B2C sales in the Facebook Era
• In general, relationships and trust play a bigger role in purchase decisions of higher priced items that are more difficult to value price and require greater expertise to understand.
• Relationship building and hypertargeting individuals on social networking sites is even more important in B2B because corporations don’t make decisions. People do.
Chapter 4: Sales in the Facebook era
As a result of social networks, user expectations have changed
• Wealth of data available from social network profiles
• Expected due diligence by sales and marketing
• Personalised interactions
Social network maps allow mutualfriend discovery and facilitate
transitive trust• Sales reps and others can
tap into “transitive trust” – if Customer B knows and trusts Sales Rep C, and Prospect A knows and trusts Customer B, then A is more likely to be open to a conversation with C.
• Trust is transitive, to a degree.
• Prior to the Facebook Era, A and C wouldn’t have known that B was a mutual contact.
Sales Rep C can use social network maps to connect the dots and tap into transitive trust to get her foot in the door with A
The loyalty magnification effect
“Passive” word of mouth - instead of having to actively tell friends about your product, Facebook News Feed broadcasts on their behalf status messages and someone becoming a fan of your product. WOM is automated.
Social Networks Extend Your Reach
Online social networking has transformed sales prospecting
Casual communications change our social graphs
Chapter 4: Sales in the Facebook era, p. 81
Facebook pokes and messages help reps save time staying in touch with their customers.
Facebook is the new CRM• “Facebook is CRM for
individuals”• Faceconnector, was
the first business application on Facebook
• Integrates Facebook profile and friend information with Salesforce Customer Relationship Management (CRM)
Watch the 2-minute demo>> http://thefaceforce.com
Customer Service 2.0
Chapter 5: Customer service in the Facebook era
Customers become partners
Five steps to successful social customer service• Listen• Embrace transparency• Respond (and own up to mistakes)• Crowdsource• Care about your customers
Social marketing
Chapter 6: Marketing in the Facebook era
• Tap into customer conversations• Persona marketing – creating an emotional
connection via brand personas• Hypertargeting• Passive WOM and social filtering
Sales and marketing in the Facebook era: Preparing for a new kind of customer
relationship
“The Facebook Era recognizes that we’ve come to a place where people can represent their real identity — and use the social filters on the Web to connect
with the world around them.”
—Sheryl SandbergChief Operating Officer, Facebook
Chapter 6: Marketing in the Facebook era
Using Facebook across the marketing funnel
Chapter 6: Marketing in the Facebook era
Precision marketing with hypertargeted ads
Traditional method: “Fifty percent of my advertising is wasted, I just don’t know which fifty percent”
Facebook Era method: Hypertarget ads based on profile information
• Only target the specific audience segments who are most likely to buy – e.g., golf apparel company targets individuals with “golf” in their list of hobbies on their Facebook profile
• Test new segments and messaging
Hypertargeting helps cost-effectively capture “latent demand”
• Minimize wasted ads on people who would never buy
• Cost-effectively capture latent interest (search marketing leaves latent demand on the table)
Social Network Marketing Spending, Forecast Through 2015
Source: Borrell Associates Q1, 2010 Data
All Estimates, Projections, and Forecasts in $ Billions
Part 3: Step-by-step guide to social networking for business
Chapters 9-12
Three easy ways to build a Facebook presence
Identity: Personal or professional?
Chap 10: 197
Protecting your privacy
Chapter 10: How to build and manage relationships on the social Web, p. 200
Examples of Ads and Promos
Advertising PromotionsHome Page Ad:
Profile Page Ad:
Facebook:
Twitter:
Warley & Martin, 2010 Chapter 12: How to: Advertise and promote the social Web
Use Social Networks to Promote Contests and Content
It’s not just about poking…
Social networking can help advisers
Generate leads
Improve client service
Deepen client relationships
Demonstrate value
Provide a platform for referrals
Infosys Technologies, 2011
Part 4: Social networking strategy
Chapters 13-16
Advice for small business• Start small• Use personal profile instead of Facebook page• Use Location targeting ads (brick & mortar)
and geolocation features on Twitter, Gowalla, Foursquare (mobile business)
• Build community• Build your sphere of influence• Ditch your website• Create and convey a personality• Network Chapter 13
Advice for non-profits, healthcare, education, and political campaigns
• Non-profits: Accessible, tell stories, focus on impact, ensure broad participation, empower core supporters
• Healthcare: e.g. AIDS awareness• Education: Student groups, alumni• Politics: campaigns
Chapter 14
Corporate Governance and Risk• Misrepresentation of brands – either accidental or
malicious, such as disgruntled former employee• Information boundaries – trade secrets, PR leaks,
customer privacy• “Temporary” corporate identity – what happens
when someone who has been Twittering on behalf of a brand leaves the company?
• Optimal level of risk is not zero• Companies should add to employee training and
corporate policy (similar to email). Zappos Inc. includes “Twitter 101” as part of new hire orientation. Chapter 15: Corporate Governance
Individual Threats and RiskIdentity theft and phishing• Users are tricked into disclosing passwords and their accounts
get compromised• Identity thieves use compromised accounts to lure friends of
the user into wiring money or giving up more informationPrivacy• Use combination of Facebook friend lists and privacy control
settings to make sure you are sharing the right content with the right people.
• People are accountable for managing their online identities just like they manage their offline ones.
• “Facebook is forever.” Users need to think twice before posting a compromising photo or comment.
• Facebook etiquette should be added to trainingChapter 15: Corporate Governance
Conclusion
• Social media is a massive ecosystem of innovations that allows people to tap the deeply human desires to connect, communicate, create and exchange
• To succeed in social media, however, you’ve got to join the conversation
Learn more and join the discussion
twitter clarashihblog/web thefacebookera.com