Social Listening – Gateway to Innovation

| Confidential | © 2012 NetBase Solutions. All Rights Reserved Worldwide. 1

Social Listening - Gateway to Innovation

Malcolm De Leo Chief Evangelist @innovationmuse Innovationmuse.blogspot.com

#SocialListening #SocialData


How to be a Real Time Marketer

Malcolm De Leo

Chief Evangelist @innovationmuse

Innovationmuse.blogspot.com



POLL #1

How much do you trust social media to help you run your business?

a) A lot

b) Thinking about it

c) Not sure

d) Not so much

e) No freaking way


POLL #2

As a consumer, how often do you turn to social media to help you make decisions like what movie to go see, which appliance to buy, where to go on vacation etc?

a) Multiple times a day

b) Once per day

c) Once a week

d) Once a month

e) Never


Social Media Listening’s Business Reality Continues The cultural conundrum

• Consumers trust social data for decisions

• Businesses are lagging in their trust

business

public

Social Media maturity

ado

pti

on



What is the marketplace’s current balance? The market continues to focus on creating content more than understanding it…

Social Marketplace

Corporate Landscape

Push Content

Pull Data

Insights ROI

Correlation

Engagement Message

Interaction

~30% of Market

70% of Market

Our need to understand only grows as the total volume continues to accelerate…


Why is pull important?

Social Marketplace

Search for lead user insights

Understand day by day emotion

Evaluate my campaign during and after

Create a 360 view of the problem

Trending Product Innovation

Brand Health Competitive Intel

Product Launch Campaign Tracking

Crisis Management

Risk Management

Use Case Type


Why is pull important?

Social Marketplace

Search for lead user insights

Have an informed product strategy

Understand day by day emotion

Be proactive and targeted in messaging

Evaluate my campaign during and after

Improve your engagement effectiveness

Create a 360 view of the problem

Use knowledge to respond appropriately

More Targeted

Push

Trending Product Innovation

Brand Health Competitive Intel

Product Launch Campaign Tracking

Crisis Management

Risk Management

Use Case Type


The How Much vs. The Why?

• How much is about data…why is about insight

• How much tells you its changing…why helps you understand

• How much is what you see…why is about what you believe



How are social analytics evolving? The days of watching the motion in the ocean are over

Tool Focused use cases measure

changes

• Social Customer Care

• Crisis Mgmt/Issue Tracking • Real Time Analytics • Advertising Effectiveness • M&A Due Diligence • Social Selling/Intent to Buy

• Number of Mentions • Influencer Identification • Number of Conversations • Engagement Rate • Brand Sentiment

Process Focused use cases create business impact


Integrating Social Listening into your organization We spend too much time picking a tool and forget it is only the first step

Tools Process Culture

How can I get my arms

around it?

How do I get them to believe

in it?

How can I get

everyone to do it?


Why Incorporate Social Listening into NPD

• Delivers more accurate and meaningful emotional data

• Fills in information gaps

• Enables you to test what you think you know

• Provides the online equivalent of “living with the tribe”


Get Forward-Facing Data

• Traditional approach: use post-mortem data on sales numbers, market size, historical financials

• Social listening monitors and measures responses to your messaging

• Use netnography to listen to individuals who are passionate about the subjects you’re researching



Make Real-Time Course Corrections

• Collapsing product cycles require rapid course corrections based on real-time data

• Social listening supplies real-time data

• Example: We learned our target customers behave like fashion buyers, wanting new products and product extensions

• Course-corrections during launch can optimize success of the launch and ultimately the product



Best Practices for Incorporating Social Listening

• Stop thinking you’re in the “transaction” business

• Look for emotional insights and ways to deliver value across the customer journey

• Identify and deliver more of what people love

• Search for keywords—Use Google AdWords keyword generator



How Not To Use Social Listening in NPD

• Don’t use it for risk management

• If you do, you won’t find insights that drive better design inputs

• Be brave—Look for opportunities

• Used properly, it helps deliver great products—the best possible form of risk management

• Don’t drop it into stage gate as it’s not always linear

• It’s not a POM activity


POLL #3

How are you using Social Analytics today?

a) For product launches and new ideas

b) For campaign management

c) To hear what is being said about competitors

d) Other


Case Study

Nicholas J. Webb Inventor, Author



Love

• Super fun

• I’m addicted to them

• Love the designs

• Great packaging

• Perfect gift for birthday parties

• Fun colors

• Easy

• Fan



Hate

• Cost

• One time use just a three-dimensional puzzle

• Square You can’t make arches

You can’t make organic or radial structures

Limited

• Hard to take apart

• Limited connection points (Two channels)

• They don’t teach anything except how to read a step-by-step instruction manual. We don’t need a generation of replicators we need innovators



They don’t teach anything except how to read a step-by-step instruction manual. We don’t need a

generation of replicators we need innovators –

Develop an educational community and product specific educational material to teach iterative

ideation, social collaboration and other key educational targets



One time use just a three-dimensional puzzle

Develop a open ended system that makes

the play experience dynamic



Square • You can’t make arches – design something that

creates arches • You can’t make organic or radial structures

include radial structures • Limited – increase connection points from two

points of connection to 10 points of connection



Hard to take apart – make them so they’re easy to take apart



Limited connection points (Two channels) – go from two channels to ten channels

of connection



Cost

Can’t compete with Legos vertical integration and manufacturing so invent

a product that is non-terminal


| Confidential | © 2012 NetBase Solutions. All Rights Reserved Worldwide. 27 #SocialListening #SocialData



| Confidential | © 2012 NetBase Solutions. All Rights Reserved Worldwide. 30 #SocialListening #SocialData


Using Social Listening to Develop Hänz

• Our theory: We can use social listening to replace VOC, CRM and conventional market data to drive design inputs

• Our belief: This approach can result in tens of millions of dollars of added value for enterprises

• We used social listening to drill deep rather than wide

• Researched LEGO to find what consumers like and dislike, trajectory of usage, other factors



Lower Cost for Finding Insights

• Even “new” yearly studies are rear-facing

• Studies can cost $10,000 to $15,000

• Represented half our costs on previous projects

• Principal cost-saving measure: Not buying stale studies

• Result: Reduced cost for finding insights by 43 percent



Hitting a Home Run with Hänz

• Educational toy line—developed based on social listening insights

• Launched in 2013—One of the most award-winning toys in the industry

• Projections for $8 million in revenue in 2015



Developing Blended Value

• Taking a risk-centric approach only gives you historical data, leading to me-too products

• Use social listening to start with a clean slate for your design process

• Ask “What’s going to supplant the widget?”

• Deliver blended value—we provide STL files so customers can print their own devices on 3D printers



A New Mandatory Core Competency – Why?

• Social listening—a more direct path to your objectives

• Verify assumptions, listen to the online dialogue within your space

• Find opportunities before the competition

• Mitigate risk by creating successful products

• Developing a skill set around social listening and better insights—now a mandatory core competency



Shorten Time-to-Design

• Before: Spent three months using traditional techniques to formulate design inputs

• Before: Used VOC, retail surveys, etc. to find all the data points we could

• Before: Bought 60 percent more of our data—canned, stale market surveys

• Now: Use social listening to bring time-to-design down to six weeks for Hänz

Result: 63 percent reduction in time to give design inputs to engineering


The Future of New Product Development

• Customer journey focus developing layered and dynamic value across each and every customer touch point

• Continuous quality improvement through continuous social analytics

• Chief Listening Officer (CLO)

• Actionable versus conceptual insights

• The ultimate tool to drive breakthrough and disruptive innovation

• The new core competency for NPD executives


Questions?



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Social Listening – Gateway to Innovation