e-business me-business we-business: How the Social Data Revolution Changes the Way Consumers Make Decisions Digital Day China Shanghai, 22 Nov 2011

A pproval B elonging C ommunication Why this revolution? It addresses the 3 deep needs:

Irreversible shift in mindset of customers about who they are, how they relate, how they make decisions What is the revolution?

e-business (company focus, Web 1.0) Website provides controlled information Website possibly allows for transactions

me-business (user focus, Web 2.0) Consumer in the center Self-expression, 晒 (shai, show off)

we-business (community focus, Web 3.0) Collective intelligence The social consumer

Social Local Mobile

Friends: People who like you –Offline –Online Peers: People like you –Similar background –Similar situation Experts USA: Who do Consumers Trust?

average (1-10 scale) | China: Credibility 8.5| Friends and family 8.0| Internet word of mouth 7.0| News and authorities 5.3| Sales person 5.0| Ads Source: CIC 2010 Efluencer Survey

Two meanings of “social” 1.Social graph Who is connected with whom? 2. Social data

Case study: What data for targeting a new phone product? Connection data Who called who? Traditional segmentation Demographics Loyalty

Connection data Traditional segmentation 0.28% Adoption rate 1.35% 4.8x

Amazon.com Share the Love

Result: Amazing conversion rates since customer chooses Content (the item ) Context ( she just bought that item) Connection (she asked Amazon to her friend ) Conversation (information as excuse for communication)

1.Social graph 2.Social data Consumer create and share data Knowingly and willingly Two meanings of “social”

Or is information just an excuse for communication? Purpose of communication: to transmit information?

Customers - engage - connect - 3 times per week on average Nike+

Rooms to Avoid: 01, 21 08, 17 Rooms Ending in: Possible Ice Machine / Elevator Noise Limited View Rooms Corner / Oversized Rooms: Oversized, Corner Room, Quiet Room Oversized, Corner Room with North Times Square Views (Higher Floors are Preferred Rooms Ending in:

Social Local Mobile

Local Absolute: Place, time Individual: Identity, History Aggregate: Insights Relative: Distance To a business: Advertising Between people: Dating Between devices: Risk

Location History Google Latitude

Social Local Mobile “SoLoMo”

Mobile Context, situation Sound Light Customers interact Tag Scan

Situation Geo-location Device Attention Clicks, Transactions Intention Search Connection Social graph User generated Reviews

Question: What is the biggest change in the last 5, 10 years you have seen?

The amount of data a person creates doubles every 1.5 years after five years  x 10 after ten years  x 100 Social Data Growth is EXPONENTIAL

Data = Digital Air

10,000,000Web searches Ad requests Text messages 1,000,000Facebook posts 100,000Product searches Tweets In the last Minute…

Fundamental Shift in Communication One-way  Two-way Asynchronous  Synchronous Planning  Interaction List  Flow Private  Public

A. Production: Everybody creates data. B. Distribution: Everybody shares data. C. Consumption: Everybody uses data.  The study of the consumer has changed  The consumer has changed

Consumer Decision Making

Marketer-generated aware consider buy use opinion share Consumer-generated Funnel Megaphone

“Tina Jiang is my go to LV person”

Top 8 Brands (by number of posts) Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Category (by number of posts) Source: The Voice of the Luxury (4.5M posts in CIC luxury panel 2011.Q1)

Topic (number of posts)

Content (by number of posts)

Who Can You Get To Work For You? 100M Customers 100k Employees 100 Specialists

Company Customers

Product Customer Brand

Help people make better decisions Make it trivially easy for them to contribute Give people an excuse to connect Note: Products/services that use social data improve over time Take the test yourself

Do not have  Somewhere already Cannot get  Can! User will give Must not use  Embrace it Be secretive  Be transparent Information asymmetry  Information symmetry

1. Facebook Designed for contribution and distribution 2. Google Take whatever you can get 3. Amazon Customer-centric: Help them make decisions

A dvertising B randing C orporate Communication Ingredients for engagement:

A pproval B elonging C ommunication Ingredients for engagement:

Two Monologues are not a Dialogue! Twitter: The Illusion of an Audience?

1993 “On the Internet, nobody knows you’re a dog”

2011 “ On the Internet, everybody knows you’re a dog”

e-business me-business we-business Dr. Andreas Weigend, Social Data Lab