The Evolution of Online Communities:From Knowledge Sharing to Personal Brand Building

George Krautzel, Co-Founder and President, Toolbox.com

OfficeArrow, LLC. 2009.

Table of Contents:

Section 1: Introduction Section 2: Evolution of Online Communities Section 3: How Professionals Are Using B2B Online CommunitiesSection 4: Personal Branding in B2B Online CommunitiesSection 5: Why Vendors Should Start Engaging Now in Online CommunitiesSection 6: Q&A

Section 1:Introduction

Who is Toolbox.com?• Mission

— Provide an online platform that enables professionals to easily share knowledge with their peers

• Existing Communities— IT (11 years), HR (<1 yr), and

Finance (<1 yr)— More than 3.0 million unique

monthly visitors and 1.6 million registered members

— Over 2.6 million pages of user-generated content

• Advertising Services— More than 800 advertising

partners, including: IBM, HP, Oracle, Microsoft, Dell

Toolbox.com Growth – Registered Members

Q3 20091,659

Toolbox.com in the Media Space

Consumer Business

Edito

rial

Use

r-G

ener

ated

• Content is communication, specific appeal• 2-way conversations between friends• Personal experiences, socially driven

• Content is communication, specific appeal• 2-way conversations between peers• Personal experiences, best practices

• Content is carefully vetted, broad appeal• 1-way conversation from experts to readers• News, consumer interests, and trends

• Content is carefully vetted, broad appeal• 1-way conversation from experts to readers• News, case studies, best practices

Section 2:Evolution of Online Communities

Community is Not a New Concept

Usenet Strengths• One of the first computer network

communications systems (1980)

• Precursor of discussion boards, peer-to-peer networking

• Organized and categorized for easy knowledge sharing

• Significant influence on online culture (coined “spam”, “FAQ”, etc.)

Gaps • Not moderated

• Short binary retention time (although now archived as Google Groups)

• No registration, anonymous participation = no brand building

AOL Strengths• Made online service available to

the masses (30 million users at peak)

• Offered a graphical user interface (GUI) instead of command lines

• Pioneered the chat room concept

• Emphasis on communication with other members as value proposition

Gaps • Proprietary software/service

needed to gain access (“walled garden”)

• Repositioned as content provider instead of a community (lost focus)

FacebookStrengths• Dominant reach- 250 million

active members

• Well designed to create member engagement

– Wall/newsfeed functionality highlights activity of connections

– Various applications for sharing/collaboration

• Ability to leverage for B2B and B2C with Facebook Fan Pages

TwitterStrengths• Simple communication vehicle –

“What are you doing” in 140 characters

• Easy way to stay current on news and trends in your areas of interest

• Potential to connect with and influence the influencers

• Fluid process for “following” and “unfollowing” connections

Section 3:How Professionals Are Using B2B Online Communities

Tracking Social Media Consumption Among Professionals• Trend: consistent increase in social media consumption, up to 4.72

hours per week in June 2009

• Results from the Toolbox.com/PJA Social Media Index Survey of 3,000+ IT pros in each of the four waves

3.48

2.882.71

3.263.06

2.88

3.74

3.35

2.85

4.72

3.54

2.79

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Social media/user-generatedcontent (Toolbox.com,

Wikipedia, LinkedIn, etc.)

Online Editorial media(InformationWeek, CNN,

WSJ.com, etc.)

Online Vendor content(vendor-produced whitepapers, webcasts, etc.)

Ho

urs

pe

r w

ee

k

Source: Toolbox.com/PJA IT Social Media Index, Wave 4, June 2009

How and Why Professionals Use Online Communities• Increase productivity and efficiency through knowledge sharing

— Manage careers

— Stay current

— Solve problems faster

— Research vendors

— Make better decisions

• Tap into tools for peer collaboration– Personal networks

– Blogs

– Discussion groups

– WikisMember question Community feedback Cost-effective,

timely, and better solutions

Solving Problems – Discussion Group Example

Section 4:Personal Branding in B2B Online Communities

Managing Your Personal Brand

• Personal branding is “your promise to the marketplace and the world”

– Tom Peters, best selling author on business management

• According to a recent survey by ExecuNet, the average tenure of an executive with the same company has slipped to 2.8 years

• Loyalty to “You” does not have to be in conflict with loyalty to your company

• In today’s business environment, proactive career management through active shaping of your personal brand is essential

The Permanence of Participation in Communities

• “What happens in Vegas, stays on Google”

– Scott Monty, head of social media at Ford Motors

• While this quote has a negative connotation, the same understanding also creates opportunity

• Professionals can leverage this permanence to support their personal brand management through active networking and participation

Reputation Management - Creating Value for Individuals and the Community

• A clear, logical reputation management system can be a tide that lifts all ships in a professional community

– For individuals

o Answers “what’s in it for me” and provides a foundation for personal brand management

o Increases likelihood of responses to inquiries

o Produces the opportunity to leverage the community to vet answers

– For the community

o Provides incentive for transparency

o Increases the quality of contribution

Reputation Management Key Ingredients – RatingsExample: Digg Ratings Systems

• Easy to use voting system

• Community assesses value

• Highest rated posts receive the most visibility

Ratings Systems in a B2B Community• Helps determine the “best”

solution to an issue

• Provides a quick input to judge the competency of the poster

Reputation Management Key Ingredients – AchievementsExample: eBay Achievements Systems

• Powerful means of rewarding participation

• Can be based on quality, quantity, response time, etc.

• Feeds the human need of “Everyone wants a gold star”

Achievements Systems in a B2B Community• Creates a carrot for greater

engagement and higher quality

• Provides a system to identify high value contributors

Reputation Management Key Ingredients - ProfilesExample: Toolbox.com

Achievements: Provides a systematic way to recognize high valued contributors, whether it is based on volume, quality, or response time.

Capability: Online résumé to detail relevant experience, accomplishments, interests, and values.

Connections:Lists the community members who are part of a user’s network.

Participation:Shows contribution from a user that has taken place within the Toolbox.com community.

“By participating in an active community, I can benchmark my skills and understand my knowledge gaps. By doing so, I can plan my career path, better position myself for new appointments, and/or understand the greatest value-add ability to a current employer. At the very least, it allows anyone, no matter where they are in their career, to know what they don’t know.”

Benefits of Active Participation – Example: Nic Harvard

• Founder of Profiling Solutions, an Atlanta-based company

• Transitioned from a consumer of Toolbox.com to a contributor to enhance brand

• Benefits of participation:

– Builds brand awareness

– Positions company as having a deep pool of knowledge

– Contributes to top line growth – 20-25% of annual new customer acquisitions come from the community

Progressing Reputation to Commerce – Example: Ron Fisher

Section 5:Why Vendors Should Start Engaging Now in Online Communities

Universal Truth in Marketing

• “Advertising dollars always follow the audience”

– Scott Karp, CEO of Publish2, Inc., and various sage marketers

Attitudes About Vendor Participation in Online Communities

Source: Toolbox.com/PJA IT Social Media Index, Wave 4, June 2009

Which of the following statements best reflects your attitude about vendor participation in online communities?

• More than 76% of community members believe it is important that vendors listen to their audience and participate in conversations

• Results from the Toolbox.com/PJA Social Media Index Survey of 3,000+ IT pros in each of the four waves

The Evolution of Online Marketing

Direct Results

2004-2009 2010-2015

Experimentation

Value: Web as a promotional vehicle

Primary Goals: Trial a new media concept, gain eyeballs, build brand and drive awareness

Measurements: Cost per impression

Marketing Tactics:– Branding – buttons, banners– E-mail – newsletters, list rentals

1996-2003

Value: Web as a direct results platform

Primary Goals: Drive traffic and lead generation

Secondary Goals: Thought leadership and branding

Measurements: CPL, CPC, brand measurements confirmed through surveys

Marketing Tactics:– Search ads– Lead generation – white papers,

webcasts – Branding - IMUs, larger units,

microsites– E-mail – list rentals

Value: Web as a relationship management platform

Primary Goals: Engaging prospects and customers outside of their Web site

Secondary Goals: Lead generation, drive traffic, thought leadership and branding

Measurements: Cost of sales, customer retention, brand penetration and measurements from direct results stage

Marketing Tactics:– Vendor communities– Two-way ads– Messaging connections using

trigger marketing– Successful tactics from direct

results stage

Relationship

Impact = Site visits/leadsEffort = Funding

Traditional Campaigns

TIME

VALUE

With traditional campaigns there is a direct relationship between funding and results – once a campaign is over, that activity usually ceases (landing page visits, etc.).

Source: Pauline Ores, IBM

Marketing ROI – Traditional Campaigns

Marketing ROI – Online Community Campaigns

Impact = Relevance and engagementEffort = Funding

Social Media Impact

TIME

VALUE

Marketing through an online community allows advertisers to

quickly engage and make an impact with their target

audiences.

Social media marketing requires continuous, steady investment to build and manage the network, with eventual value created as the network grows and becomes self-sustaining.

Source: Pauline Ores, IBM

Creating a Beachhead Within Active Communities

About Section: Provides an overview of the vendor, as well as links to allow community members to quickly connect with or contact the vendor.

Vendor Assets: Prominently displays the vendor’s information assets, including white papers, webcasts, product demos, news, PR, and more.

Connections:Lists the community members who have expressed their interest in engaging and staying current by creating a connection with the vendor.

Participation:Shows related postings by the vendor within the Toolbox.com community.

To Start, Devise a SMART Strategy

Specific Measurable Achievable Relevant Time-based

• Do not start without a basic strategy, execution should come second

• Test, listen, engage, and learn

• Like personal brands, in communities your company’s brand is being formed with or without your participation — actively shape it

Section 6:Q&A

Contact Information

George Krautzel

Toolbox.com Co-Founder and President

• My profile on Toolbox.com: http://it.toolbox.com/people/george_krautzel

• My profile on Twitter: http://twitter.com/georgekrautzel