Groundswell: The Future Of Social Networks Charlene Li Altimeter Group June 16, 2009 If you would like a copy of the slides, please leave a business card with me.

2 Welcome to the Groundswell 2 Where social technologies enable people to get what they need from each other

3 What company engagement looks like 3

4 What kind of relationship do you want? Transactional Occasional Impersonal Short-term Transactional Occasional Impersonal Short-term Passionate Constant Intimate Loyal Passionate Constant Intimate Loyal Focus on relationships, not technologies

5 Four strategies, start with Learn LearnDialogHelpInnovate

6 Learn with monitoring tools

7 At Southwest, a planner talks Post has received 98 comments over 10 days In the future, everyone is a marketer

8 Cable problems? Who do you call?

9 BlueShirtNation.com supports Best Buy’s front line employees

Starbucks innovates across the organization

11 Social networks will be like air

12 Reviews from people I know Source: Razorfish Note: This is a mock-up, not an actual product

Three things are needed to make social networks like air 1.Identity – who you are 2.Contacts - who you know 3.Activities – what you do And it’s still very early, so patience is needed

14 My identity, in context Author, researcher, strategist Chauffeur, cook, play date organizer

15 Social aggregators can map your relationships Source: 33Across Map explicit relationships Identify “Influencers” who are connected AND share Vendors: - 33Across - Lotame - Rapleaf

16 Twitter Address book Facebook SMS Call Calen -dar Implicit social data fills in the relationship gaps Closeness

17 Aggregators can build rich profiles 17 Who I the most Who I meet with Who I call What I read and share What sites I visit What I buy Who I know, what I did

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19 Sharing activities to networks Publish reviews from CitySearch to Facebook Both CitySearch and Facebook get behavior and sharing data Bring friends to CitySearch

20 “Birds of a feather shop together” “Lisa” buys on NineWest.com Media6 maps “network neighbors” based on visits to profile sites via browser cookies (no PII involved) 21 3 NineWest ads are shown to Lisa’s closest friends, without identifying or involving Lisa

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22 #1 Get the right people on the bus 22

23 Find your revolutionaries Lionel Menchaca Dell Ed Terpening Wells Fargo Paula Drum H&R Block

24 Tactics Audience #2 Start small, but start now Goal Revolutionary

#3 Evaluate where and how social you will be Identify where social network data and content can/should be integrated into your business Leverage existing identity and social graphs where your audience already is, e.g. Facebook Connect, Google Connect, LinkedIn Personally, organize your friends and figure out your personal social strategy Find your trust agents and partners ◦ “In Google I trust”, or someone else? 25

26 #4 Prepare for a new organization 26 New forms of leadership will be needed

27 #5 Measure the right things Your goals determine your metrics Use the same metrics as your marketing goals

28 Example “micro” metrics GoalMetricValue Learn# of customer feedback Impact of faster, better insights Dialog# of people reached # of interactions Awareness Faster, more sales Help# of issues addressedCustomer satisfaction Innovate# of implemented ideas Faster, better development

29 Higher order metrics to consider How likely are you to recommend this to someone you know? Net Promoter Score Lifetime revenue Cost of acquisition Cost of retention Customer referral value (CRV) Lifetime Value

30 #6) Embrace the loss of control 30 Photo: Kantor,

31 An essential tool to have

Thank You Charlene Li Altimeter Group blog.altimetergroup.com If you would like a copy of the slides, please leave a business card with me. Copyright © 2009 Altimeter Group 32