1. The Future Of Social Networks Charlene Li Altimeter Group January 12, 2010 1 San Francisco AMA

2. © 2010 Altimeter Group 2 Agenda  How to think about the future  What you should do about it

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4. 4 Social networks will be like air.

5. © 2010 Altimeter Group Universal sign-in 5

6. © 2010 Altimeter Group Facebook Connect extends 6 See what friends read/comment on

7. © 2010 Altimeter Group Import friends into the experience 7

8. © 2010 Altimeter Group Social moves into enterprise apps Salesforce Chatter LinkedIn in Lotus Notes 8

9. © 2010 Altimeter Group Share updates back and forth 9

10. © 2010 Altimeter Group Social on TV and television sets 10 Conversation around news events Verizon FiOS integrates Facebook & Twitter

11. © 2010 Altimeter Group Mobile making in-roads 11 Foursquare “gestures” to friends And sends an ad Gowalla gestures to everyone

12. © 2010 Altimeter Group Using social context to create relevance 12 Time Facebook OpenSocial Asynchronous Real-time Intention Place Data Ideas Items People Location & Objects

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14. © 2010 Altimeter Group Socialgraphics 14 Demographic Geographic Psychographic Behavioral Socialgraphics

15. © 2010 Altimeter Group Engagement Pyramid 15 Curating Producing Commenting Sharing Watching

16. © 2010 Altimeter Group 16 There’s now a culture of sharing

17. © 2010 Altimeter Group Define Goals by Objective 17 LearnDialogSupportInnovate

18. © 2010 Altimeter Group How To Prepare

19. © 2010 Altimeter Group 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 #1 Focus on relationships, not technologies

20. © 2010 Altimeter Group Obama redefined political campaigns 20

21. © 2010 Altimeter Group #2 Measure the right things Your goals determine your metrics Use the same metrics as your strategic goals

22. © 2010 Altimeter Group Example “micro” metrics GoalMetricValue Learn# of customer feedback Impact of faster, better insights Dialog# of comments # of referrals Greater loyalty Faster, more closes Help# of issues addressedIncreased satisfaction Innovate# of implemented ideas Faster development

23. © 2010 Altimeter Group Measuring lifetime value in a new way 23 + Value of purchases - Cost of acquisition + Value of new customers from referrals + Value of insights + Value of support + Value of ideas = Customer lifetime value Percent that refer Size of their networks Percent of referred people who purchase Value of purchases Percent that provide support Frequency and value of the support

24. © 2010 Altimeter Group #3 Create new workflows Social technologies will disrupt traditional organization structures

25. © 2010 Altimeter Group Social pressures traditional orgs TaskStrategyChanges Market researchLearn Monitor conversations All employees listen & learn Marketing/SalesDialog Any employee can converse Bridge the consideration gap Customer supportHelp Proactively seek out problems Enable customers to help Product development Innovate Seek ideas from customers Broaden employees involved

26. © 2010 Altimeter Group 26 Ties these comments back to customers

27. © 2010 Altimeter Group 27 #4 Be Ready To Give Up Control

28. © 2010 Altimeter Group The Sandbox Covenant Openness requires accountability 28

29. © 2010 Altimeter Group The Red Cross handbook/policies help keep order http://sites.google.com/site/wharman/social-media-strategy-handbook 29

30. © 2010 Altimeter Group #5 Fail fast, fail smart 30 Identify the top 5-10 worst case scenarios. Develop mitigation and contingency plans. Encourage risk taking and forgive failures.

31. © 2010 Altimeter Group Wal-mart failed many, many times 31

32. © 2010 Altimeter Group Buyer blog hit the right note

33. © 2010 Altimeter Group 33 Summary  Social networks will be like air.  Use social context to create relevancy.  Be ready to give up control – you have no choice.

34. 34 Thank you 34 Charlene Li charlene@altimetergroup.com blog.altimetergroup.com Twitter: charleneli